Precious Metals Market Report

I am back in Tennessee and heading over to middle Tennessee to join Franklin Sanders for our Precious Metals Market Report this Thursday evening.

The silver and gold markets continue to be strong  – with no sign of a correction yet. I want to dig into what is happening right now in the precious metals markets and how it relates to geopolitics, the oil market and the future of the US dollar. What will the end of QE2 bring?

The squeeze of rising expenses and falling income continues – just as we warned it would in our 2010 Year End Wrap-Up: The Road Turns East. The Wall Street Journal and other publications ran trial balloons last week about the dollar losing reserve status, causing a sharp increase in expenses across the board to US consumers. Are we being “pumped and dumped” yet again, or could it happen this year?

I am concerned about the push for silver and gold legislation at state levels. What will happen if the government simultaneously takes the position that we can not grow our own food or sell it to our neighbors, but that we must make payments to the government in gold and silver despite the fact that a significant majority of savings is in bank deposits that are dollar based? It sounds like the ultimate short squeeze to me – one that would be quite good for the private interests who have been accumulating silver and gold while the price was suppressed. This is why food and firearms freedom should be first priorities, and without them “sound currency” solutions could backfire badly.

This short squeeze includes increased consumer expenses as a result of another wave of “piratizations” justified by the fiscal challenges of state and local government. Note the recent move by a Wisconsin Budget Bill to Enable No-bid Sales of State Power Plants. Thanks to Michael Moore who showed up in Wisconsin to point out that America is NOT Broke.( Which is amazing considering the amount of money that has disappeared from the US government and in bailouts and what would happen if we decided to find out where it went.)

Of course, if we start transferring valuable public and municipal assets such as the power plants to campaign contributors at below market prices and keep selling fraudulent paper to the pension funds, we could go eventually go broke. This is what the protesters in Wisconsin understand. Thank heavens someone does.

“Who’s zooming who?” is a question I want to discuss with Franklin on Thursday, not just with respect to the silver and gold legislation and market manipulations. I was struck this week by an article complaining that Whole Foods had sold out the organics food movement. Whole Food did sell the organics community and its customers down the river. However, they have a lot of company. In my experience the organics food movement has embraced working with the US government. Where can you go if you give credibility and seek financing from the interests trying to destroy you?

I also continue to beat back proposals for constitutional conventions from all sides of the political spectrum. Do you have any idea what could happen if we allow the Constitution to be fiddled with? So why are environmentalists and successionists promoting this trap? Is everything just an op?

Let’s view the flow of power and money as a dynamic human and financial ecosystem and not get trapped by ideology or sweet sounding solutions proposed without a broader understanding or context. Let’s follow the path that builds personal and family wealth in the real world on a day to day basis. That is the wealth that currently stands behind community health and freedom.

On Thursday evening, I also want to touch on the continued push towards capital controls, including recent amendments to the FBAR rules FinCEN Amends BSA Regs on FBAR Filings and what that means to US citizens who have precious metals in depositories around the world.

Speaking of moving American resources abroad, in Let’s Go to the Movies, I will be commenting on the deeper meaning of “National Treasure“