As the editor of the Silver Bear Cafe, I spend most of my time researching current events. I explore the markets, the economic war that is being waged on the middle class, precious metals, the Federal Reserve, energy, and how to go about surviving financially. In this weekly column I will attempt to condense the week's events and examine how the news might affect your pocketbook. JSB

Financial Markets

The GlobalEurope Anticipation Bulletin (GEAB) is a regular decision and analysis support instrument intended for all those who require some understanding of ongoing and future global trends as seen from a European point of view. Not unlike George Friedman's Stratfor, which is a geopolitical intelligence firm providing strategic analysis and forecasting, or The Trends Journal by Gerald Celente, which concentrates on sociological and economic trends, GEAB consistently provides projections that have been shown to be accurate time and time again.

There is such a wealth of high quality discussion going on, all over the globe, that is easily accessible via the internet, that, for those of us who have both the capacity for critical thought, and the inclination to find out what's going on, it would be inexcusable to retain the blinders that we have been issued by the state.

This week's featured missive, from the Financial Markets Forum, is a brief taste of GEAB's projections for the next five years, provided by James Sinclair. This is not what I would consider breaking news as we have be reporting on the development of these conditions for years. For most of us , this is like telling Noah about the flood. But for the "just now waking up group", The GEAB's latest appraisal of our situation is disconcerting, to say the least. Failing to take heed and prepare, however, could only be the result of an individual's voluntary and yet devolutionary loss of natural defense mechanisms. Everything old is new again...

From Jim Sinclair:

GEAB shockingly says, "Historians will certainly consider the 2008 crisis as a warning shot before that of 2013. All of the world's regions won't be a can be summarized as the following affected the same way but all will suffer. According to LEAP/ E2020 the stages of this second crisis as follows:

-end 2013, financial impact: collapse of financial markets especially in the US and Japan. Banks can no longer be saved by the states and BAIL-Ins are put in place;

-end 2013 / 2014 spreading to the real economy: The financial impasse causes / reveals a major world recession and the reduction of international trade;

-2014, social impact: The economic deterioration causes unemployment to explode, in the United States the dollar's decline lowers the standard of living, riots mushroom everywhere;

-2014 political crisis: the governments of the most affected countries are under fire for their handling of the crisis, forced resignations and early elections are expected, if not coups;

-2014-2015, international management of the crisis: together Euroland and the BRICS impose a new international monetary system and lay down the basis of new global governance;

-2015: The least affected regions have exited the crisis definitively;

-2018: It will take the United States, the United Kingdom and Japan five years to purge themselves of the crisis with, ultimately, a greatly reduced standard of living and a considerable loss of global influence (resulting from their refusal to participate in the re-casting of global governance on new bases)."

On the Economic War Front

In last week's Bear Tracks we explored the regulatory exploits and experiences of William K. Black. As a lawyer, professor and criminologist, Mr. Black is well suited to explain not only our current regulatory plight, but also the massive breakdown in confidence that has resulted from extreme criminal complicity and governmental failure.

The apparent lack of will, or ability, to contain and control the rampant spread of corruption, has resulted in the gutting the foundations of our Republic. The inability to curb the felonious appetites of, not only the banksters but also, those members of the House and Senate, the Judicial and Administration branches, including all law enactment, and enforcement, has left the nation breathlessly gasping, on the brink of its demise. Most blatantly, the cowardly and appalling lack of remedy exhibited by all of the above, provides evidence that these afore mentioned miscreants, are not only treasonous but, are also terrorists of a most vile nature.

This week, Adam Taggart revisits the fact that "The Banks have Blood on their hands." In a compelling interview with Chris Martenson Mr. Black lays out out the remedies that have, here-to-fore been so lacking. The world, led by Central Bankers and rogue governments is currently mired in various stages of disintegration. This trend will only be reversed by the routing out and elimination of the evil influences that currently hold us in an incidious death grip. Not until the decent members of world society rise up and forcefully exterminate the parasites that have been, and continue to, suck our life's blood, will we rectify our current dilemma. "Love your rage, not your cage."

From Adam Taggart:

If you can steal with impunity, as soon as you devastate regulation, you devastate the ability to prosecute. And as soon as that happens, in our jargon, in criminology, you make it a criminogenic environment. It just means an environment where the incentives are so perverse that they are going to produce widespread crime. In this context, it is going to be widespread accounting control fraud. And we see how few ethical restraints remain in the most elite banks.

You are looking at an underlying economic dynamic where fraud is a sure thing that will make people fabulously wealthy and where you select by your hiring, by your promotion, and by your firing for the ethically worst people at these firms that are committing the frauds. And so you have one of the largest banks in the world, HSBC, being the key ally to the most violent Mexican drug cartel, where they actually did so much business together that the drug cartel designed special boxes to put the cash in that they were laundering that fit exactly into the teller windows so that there would be no delay. This is the efficiency principle of drug laundering.

So these banks figuratively have the blood of over a thousand people on their hands. They are willing to fund people that murder and torture and behead folks. And they are willing to do that year after year, despite warnings from the regulators that they are doing this. And the regulators are not willing to actually take serious action until there has been "true devastation."

Precious Metals

(The following preface to Mr. Schiff's contribution this week is an excerpt from my 2004 missive: "The Nature of Money")

One of the most important aspects of your financial survival concerns your understanding of the nature of money. If you believe that precious metals do not constitute "money", you may have been misled. If you have been misled, who misled you? Why? And "What's wrong with this picture"?

What is money? The whole point of money is suppose to be the provision of a convenient and liquid medium that can be exchanged for less liquid value. It is a go between. One strives to accumulate money so it can be exchanged for something else.

In our illustrious history, we humans have tried everything from salt to sardines as a medium of exchange, but nothing has seemed to work as well as gold and silver. A person bringing a relatively illiquid item to market could swap it for gold or silver, secure in the knowledge that the metal would retain its value for as long as he chose to hold it and would be accepted as payment for anything he wanted when he chose to spend it.

The condition that your gold and silver will retain its value for as long as you chose to hold it is the most valuable characteristic of the "barbarous relics", and provides the fodder for me to champion the cause of precious metals ownership, and for my ensuing attack on the debasement of the American dollar.

Man has an innate desire to obtain and own gold and silver. That we seek to possess precious metals seems as naturally entrenched in our collective psychic as any other instinct. The possession of wealth, in the form of gold and silver, has always represented power and control. There is nothing wrong or unnatural to desire power and control. The power to control one's destiny through the accumulation of wealth is not only natural, it is healthy. This natural desire is the basis of our capitalistic system. The gold standard, as prescribed by our Constitution, is "the Law" that insures that the "power and control" that is provided by wealth, cannot be abused. Those who would seek to abuse the power of wealth would consequently have to break "the Law." "The Law" has been broken.

In 1792 the U. S. Coinage Act was passed by Congress. It invoked the death penalty for anyone debasing money and provided for a U.S. Mint where silver dollars were coined along with gold coins beginning in 1794. The text of Coinage Act of 1792 states: "The Dollar or Unit shall be of the value of a Spanish milled dollar as the same is now current," that is, running in the market, "to wit, three hundred and seventy-one and one-quarter grains of silver."

To repeat, A"dollar" is a silver coin containing three hundred and seventy-one and one-quarter grains of silver — and it cannot be changed by constitutional amendment, definitionally, any more than the term "year" can.

Even at the current suppressed value of silver, ($19.52/troy ounce), a "dollar is worth $17.57. The fact that a currently circulated Federal Reserve Note of a "One Dollar" denomination is not worth $17.57 is evidence that a radical debasing of money has occurred sometime in the past and begs the questions: Who was responsible for the debasement, why did "we the people" allow the debasement to occur, and why weren't those responsible prosecuted?

Fiat money, (money not backed by anything), was something so abhorrent to our Founding Fathers that they didn't even discuss it as an option. The Constitutional gold standard provided that the Country's citizens could not be robbed by means of inflation. An interesting original draft by the Founders would have allowed for "bills of credit", or paper money but that was struck out. It seems that during the Revolutionary War, when paper money had been issued, a promise to back the notes for gold or silver was a "no confidence" disaster, causing counterfeiting by the British and other forms of fraud.

The end result were notes of no value, plummeting to less than a penny per dollar. Sound familiar? This is why the Founding Fathers decided to mint only gold and silver coins as "money." They provided for a U.S. Mint where silver dollars were coined along with gold coins beginning in 1794.

In this week's post, Mr. Schiff wisely reiterates the ever-pressing need to re-embrace the bimetallic system of trade and finance.

From Peter Schiff:

After a couple generations of purely fiat currency in the United States, a lot of people have forgotten that money used to be backed by something of value - gold and silver. It wasn't until 1965 that the US stopped making its dimes and quarters out of 90% silver, and the dollar was backed by gold internationally until 1971.

In spite of fiat money's ubiquity, more and more people around the world are waking up to the dangers of paper currency and turning to gold and silver to protect their savings. Silver is particularly useful to everyday citizens around the world because of its smaller value-to-weight. A half-ounce of silver can buy you dinner. A half-ounce of gold can buy dinner for you and 60 of your closest friends. That's why for centuries, gold has been considered the money of kings, while silver is known as the people's money.

It's not hard to see the growing importance of a stable medium of exchange worldwide - look to the Cypriot banking crisis or the barter markets evolving spontaneously in economically devastated countries like Argentina or Greece. Here are places where having an stash of silver versus a roll of bank notes can mean the difference between keeping your family well-fed and having to beg for assistance.

Developed nations are also waking up to this reality, translating into record silver sales at the US Mint and other major bullion producers despite the recent correction in global spot prices. This investment demand is providing a baseline of support to silver's price and helping to re-establish silver as a universally recognized form of money.

Energy

There is a multiplicity of would be/could be disastrous scenarios currently unfolding globally that will eventually culminate and wreak havoc on our planet and the manner in which we inhabit it. As previously covered in this week's Bear Tracks, the lack of governmental regulation is one of the prime causes of many problems being experienced globally. Most of our environmental catastrophic occurrences are also caused by a woeful lack of regulation and remedy.

BP's Cataclysmic Deepwater Horizon oil spill is still leaking, The U.S. Coast Guard is still spraying chemicals on the gulf to insure that the oil sinks below the surface so we can't see it. News has just surfaced that a flesh eating virus is breeding in corexit laced tar balls that, of course, would continue to wash ashore on the beaches of the gulf states. Seafood, harvested from the gulf, has been shown, repeatedly, to be contaminated with both benzine and corexit (the cocktail of toxins being applied). There are reports that the dolphin population in the entire gulf has been decimated.

Fukushima is still the source of leaking radioactive materials which continue to contaminate the oceans of the world. Both the management of Tepco, the electric company who owns of the facility as well as General Electric, the manufacturer of the reactors that malfunctioned are, understandably, hesitant to let be known anymore than can be contained. Meanwhile, the contaminated ground water continues to poison people, crops, livestock, fish and marine mammals at an ever-increasing rate and geographic area. The levels of radiation of the groundwater in the vacinity are ninety times the levels measured before the meltdown and are substantially higher in areas as far away as Toyko.

These original disasters were extremely unfortunate, but what kind of twisted deviates would preside over the coverups and allow the disasters to continue, unabated?

From Tyler Durden:

As Japan's infatuation with the great nominal stock market experiment continues, the government wishes nothing more than to put the Fukushima nuclear disaster in the past, so it can restart its nuclear power plants: the critical, decisive factor if Abenomics has any chance of succeeding, as the country's economy will never recover if it has to rely on foreign sources of energy

Alas, for the time being this looks improbable and following the latest news out of Fukushima, it may be downright impossible.

According to the BBC, the Fukushima nuclear power plant has been emitting steam from its destroyed reactor, confirming that while one can bury radioactive garbage under the rug, it continues to emit gamma rays and is likely to get much worse before it gets better.

The Fed

The other day, Federal Reserve Chairman Ben Bernanke, in the question and answer exchange after his prepared testimony, told the House Financial Services Committee that:

"If we were to tighten (monetary) policy, the economy would tank."

The economy is about to implode, as a result of the moronic and twisted machinations of Alan Greenspan, Ben Bernanke and all the other criminal members and participants who aided and abetted the abomination we know as the Federal Reserve.

Bernanke has created a situation where, if he ceases supporting the markets with counterfeit money, the markets will collapse. It's all smoke and mirrors. Anyone, still participating in this market is either a criminal or an idiot. The world has become increasingly fed up with the short end of the stick. Without the world's continued cooperation the charade cannot continue. "And when the bough breaks..."

Here again, I must take the opportunity to "sing to the choir". The Federal Reserve is the greatest enemy of humanity the world has ever known, and remains the greatest threat to the survival of America way of life that exists today. The Federal Reserve has always been a threat to the future of America since its inception in 1913. It was then a greater threat than all of this country's foes in both the first and second World Wars. It provided a greater threat to our liberties and freedoms than communism. It remains a greater threat to our future well being than the imagined foreign terrorist threat, the real terrorist threat posed by those in Washington, DC, Agenda 21(although that's right up there) the bird flu, global warming, global cooling, gay marriage, alien invasion (which could be a current dilemma), as well as any comets that are on course to collide with the Earth within the next 100 years.

The Federal reserve was conceived to help the Darkside conquer the world. It serves a satanic cult of Zionist Illumanists (is that redundant?). If we do not get off our asses and deal with these bozos real soon, they will bring about the end of the world as we know it. Now let me tell you what I really think...

From Alasdair Macleod:

Over the last few days, the level of confusion regarding monetary policy by the Federal Reserve has increased substantially. The result has been that buyers have re-emerged in the gold market.

First there was the release of the minutes from the last meeting of the Federal Reserve on June 18-19. The information was confusing because the language used by the Federal Reserve caused some people to question the timing of their reduction of monthly asset purchases.

While the Federal Reserve minutes stated that "many" members of the Federal Reserve required an improvement in the jobs market before any reduction in stimulus would begin, they also reported that half of the Federal Reserve members thought that they would begin reducing the asset purchase program by the end of the year.

Financial Survival

After that last rant, I don't have much left to say. Your future is rife with danger. There are those that are currently plotting you extract from you, everything you have. Most of the folks that you know are about to be screwed. What is about to happen will take ninety percent of the population by surprise.

You must, for your sake and for the sake of those you love, open your eyes to the reality of the situation. Entire cites are going belly up. Entire states are about to default. There is a conspiracy afoot to depopulate the gulf states. There is another group that intends to depopulate the earth. There exists, on many levels, what I would consider insane agendas, but that many consider the only answer. The pandemic apathy that exists throughout this country is, perhaps, the main cause of our current conundrum. To refresh your memories, I will re-post a noteworthy quote from Albert Einstein:

"The world is a dangerous place to live; not because of the people who are evil, but because of the people who don't do anything about it."

This week's Financial Survival Forum's article choice for highlighting is provided by Graham Summers, and, as you might expect, deals with our greatest threat, the Federal Reserve.

From Graham Summers:

Bernanke has told us point blank what will happen if rates rise (economic collapse). But he's not telling us the whole truth. The fact of the matter is that if rates rise now while the Fed is running QE 3 and QE 4 then it's game over. The Fed will have officially lost control of the system and a wave of defaults will implode the markets.

This process has already begun. As I noted before we're seeing rates spiking around the world.

Stocks may hit new highs, but this rally has all the hallmarks of a blow off top, coming at the final stage of a bubble. Indeed, stocks have not been this overextended in over 20 years… that includes the 2007 peak. Soon after we reached that point… we then plunged into one of the worst market Crashes of all time.

By today's metrics, this would mean the S&P 500 falling to 1,300 then eventually plummeting to new lows.

This is not doom and gloom. This is a fact. The Fed has created an even bigger bubble than the 2007 one.

The time to prepare for this is not once the collapse begins, but NOW, while stocks are still rallying. Stocks take their time moving up, but when they crash it happens VERY quickly.

You must first realize that there are, present in our lives, enemies. You must then know who those enemies are and act accordingly.

Eliminate as much debt as possible, especially “variable rate” debt, such as credit cards and lines of credit. Interest rates will be rising, so the elimination of debt offers a “real return” of escaping rising rates by creditors.

Get some control over some fresh water.

If you are depending on Social Security, stop.

Follow the course opposite to custom and you will almost always do well...

Its not what you don't know that will screw you up, it's what you know that is wrong. The spin you hear from the mainstream media is intended to mislead you. Open your eyes and face the future. If you leave your head in the sand and ignore it, you are only leaving your butt exposed for the world to kick. This all may sound like gloom and doom, but when you get a handle on what is going to happen, you will have a future filled with opportunity. Fortune favors the Informed.

More next week...

May the Great Spirit be with you always,

Johnny Silver Bear
Chief cook and bottle washer, The Silver Bear Cafe

Disclaimer

All statements and expressions are the sole opinions of the editor and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The staff of Silver Bear Cafe are not registered investment advisors and do not purport to offer personalized investment related advice. The publisher, editor, staff, or anyone associated with, or associated to the Silver Bear Cafe may own securities mentioned in this newsletter and may buy or sell securities without notice.