Uh oh ...

January 10th 2016

The very tumultuous first week of 2016 was led off by one of the most startling mea culpas in modern financial history. On Monday, the ex-head of the Dallas Fed revealed on CNBC that the FED "frontloaded an enormous market rally in order to create a wealth effect" and that "The Fed is a giant weapon that has no ammunition left. The week then ended with another member of the robber-barron class, the current President of the San Francisco Fed, publicly stating that the Federal Reserve has 4 more rate hikes planned in 2016, assuming the economy continues growing at its torrid pace. The hubris of these Federal Reserve shills is hilarious; the retired one warns that giant bubbles bursting, while the one still on the payroll spews bald-faced lies about growth and employment data, seemingly oblivious to the all-time lowest 'print' ever of the Baltic Dry Index just a day earlier, which is now 'off' 95% from its peak! A real-time example of the egregious distortions caused my these central banksters can be seen in a company like Amazon, where their market cap of $286 billion is somehow four times larger than the value of all of the above-ground silver bullion on Earth -- 5 billion ounces @ $14 per ounce. Really? (Most students of the silver market actually believe there is less than 1 billion ounces remaining above-ground). The smart money is getting out folks, THERE ARE NO MORE CANS TO KICK, and never has there been a better time to tune-out the noise (don't panic, its a cycle) and tune-in to physical silver and gold, where the fundamentals have never been better. I am here to help when you're ready. Happy New Year!

Goldmoney Insights: Gold More Undervalued Today Than End of Bretton Woods
Alasdair The adjusted (gold) price, reflecting the expansion of both the FMQ (Fiat Money Quantity) and above-ground gold stocks, now stands at $402, a decline of 56% in real terms since Lehman. On value considerations, we can therefore conclude the following: * Gold is cheaper than it has ever been against the world's reserve currency, with the single exception of the time when it was so under-priced that the US Government was forced to scrap its peg at $35 and abandon the Bretton Woods Agreement. * Compared with the situation at the time of the Lehman crisis, gold is significantly cheaper today, which is wholly at odds with the continuing systemic risk to fiat currencies from undercapitalised banks.

Kyle Bass: The $3.5 Trillion "Neutron Bomb"
"The real issue is the size of their (China's) banking system. Do you remember the reason the European countries ended up falling like dominoes during the European crisis was their banking systems became many multiples of their GDP and therefore many, many multiples of their central government revenue. In China, in dollar terms their banking system is almost $35 trillion against a GDP of $10, and their banking system has grown 400% in 8 years. So what we are going to see next is a credit cycle, and in a credit cycle you see some losses, but if China's banking system loses 10%, you are going to see them lose $3.5 trillion."

Charles Hugh-Smith: The End-Game of Debt-Fueled "Growth"
We can summarize the official "solution" to the Global Financial Meltdown of 2008 in one line: borrow and blow trillions! The goal of borrowing and blowing trillions was to re-invigorate "growth"-- any kind of "growth," no matter how wasteful, unproductive or even counter-productive it might be: wars, nation-building, ghost cities, needless MRIs, useless college diplomas --anything the borrowed money was squandered on counts as "growth" in the Keynesian status quo. Unsurprisingly, this strategy yields diminishing returns as the negative returns on all this debt-fueled spending piles up.

Comex Registered Silver Inventories Plunge Nearly 10% In One Day
68 Dime In a stunning development, the Comex Registered Silver inventories experienced a large one day decline yesterday. Nearly 10% of total Comex Registered Silver inventories were removed from the exchange on the last day of the year and reported on Jan 4th. According to the CME Group's Metal Depository Statistics, 3.5 million ounces (Moz) of Registered Silver Inventories were withdrawn and transferred to the Eligible category. In just the past eight months, Registered Silver inventories at the Comex have fallen by nearly 50% over the past eight months.

33 Signs that Bitcoin Growth Isn't Slowing in 2016
The uptake and dollar value of Bitcoin has grown rapidly over the last three months, almost doubling it's value, and the indicators suggest that this is only going to continue in 2016. (Bitcoin transaction volume now exceeds Western Union and is gaining on PayPal).

Happy to Help ...
SJM Silver and Gold in physical form are unencumbered wealth, free of counter-party risk, and of all liability when your broken Government or Zombie bank blows up. I invite you to contact me for the very best pricing and discreet, informed service.

Jeff Neilson: When The U.S. Dollar No Longer Exists
The Federal Reserve is a criminal accomplice of Wall Street and the Big Bank crime syndicate . The central "business" of this crime syndicate is the eight-year bubble-and-crash cycles that it orchestrates in our markets (timed with the US election selection). The (adjacent) chart is the last legitimate representation of the U.S. monetary base. Soon after this, the Federal Reserve began stretching out the scale of its chart, even falsifying data, in order to distort the unequivocal mathematical/economic implications of this extreme hyperbolic curve.

Sovereign Exchange International Ltd.
Steven Merrill, President
www.sovereigncoin.net
phone: 778.835.7667

Engage a Rich New Audience; Reconcile to your Private Account; Settle for Metal at Any Time. The Sovereign Exchange was founded by Steven Merrill and a small network of individuals from across British Columbia with a vision to embrace Austrian economic principles and provide a sound payment facility than be trusted for commerce and used to store wealth.