Precious Metals Market Report – Mr. Global’s Squeeze Play

By Catherine Austin Fitts

Well, you have to give Mr. Global credit.

First he engineers another pass on taxing corporations and the wealthy in the latest round of US budget talks, making it look like it reflected the wishes of the “grassroots” and “right wing.” Then S&P just happens to drop the credit rating on the US.

This means Mr. Global gets to increase his profits on loans to the government and US consumer and municipal credit and to dictate more terms and conditions — like re-engineering folks out of retirement and pension benefits.

The beauty is that Mr. Global is only lending back the money he got from the body politic in the form of $12-27 trillion of bailouts, the legal right to create currency and $4 trillion of missing money, not to mention the laundered profits of fraud and organized crime.

And, of course, there is the $3 trillion dump and subsequent pump of global equities. Can’t you just hear the “cha-ching” of Mr. Global’s register?

Just when you think there is nothing left to squeeze out of the economy, Mr. Global comes up with another squeeze play. This one is particularly elegant and invisible to most observers. Estimate the cash flows and you will see the enormous profitability available.

Most important, if  Mr. Global wants to continue to privatize government assets while insisting that government assume greater liabilities, the squeeze play puts him in a stronger position to do just that – dictate the re-engineering of governance through the debt system.

With all the criminal investigations flying at those who would run the IMF, perhaps using the rating agencies to engineer the debt beat down is a more stealth approach then using the IMF.

With financial sovereignty slowly slipping away, change will continue to accelerate, moving at greater and greater speed, particularly after the 2012 elections.

This week on the Solari Report, it’s the Precious Metals Market Report: Mr. Global’s Squeeze Play. Franklin Sanders and I clearly have lots to talk about. First and foremost, the meaning of the S&P downgrade and the impact on markets, particularly precious metals. We will revisit our annual forecasts, both for prices as well as probabilities for core scenarios, particularly Slow Burn vs. 2008 Redux. We will also connect some dots, touching on two recent blog posts: My response to Federal Budget 101 and Unanswered Questions About Rawsome Foods.

In the context of where the precious metals markets could go this year, we will also be talking about some of the institutional issues that have slowed down a repositioning of major assets, particularly the Prudent Man Rule – and what S&P’s decision could do to bring about a rethinking of the Prudent Man Rule and what that could mean to the markets and you, including your pension funds.

The iPhone app for the Silver and Gold Payment Calculator will launch shortly. Franklin and I will brief you on how to use the calculator — whether on desktop or handheld device. Given where gold is headed, the notion of using gold and silver as currency is not as far fetched as it seemed when we first launched the calculator. To do so, you will need easy access to what the app will provide for merchants and busy people –  a calculator and a list of silver and gold coins priced at melt value.

At last! The final transcript of our “Special Solari Report: Precious Metals: Top Ten Dates in American History” will be at your subscriber control panel this week.  It describes several centuries of “squeeze plays,” bringing an historical context to the dynamics we are watching today.

No movie this week. We will cover Money & Markets and address a wide number of the questions you have posted related to recent events and precious metals.

I will be with Franklin here in Tennessee on Thursday night. Several subscribers will be joining us for dinner before hand and are bringing banjos! So we expect to be in fine fiddle.

We continue to get questions from subscribers on storage options for precious metals. If you are considering storage options, make sure you check out the Special Solari Report we did last year: “Storing Options for Storing Precious Metals” It is a great summary of some of the options and issues. In response to your questions, we have also prepared a Special Solari Report on the Zurich Cantonal Bank gold and silver ETFs. This came as a follow up to our comments on two largest US gold and silver ETFS – “GLD and SLV: Disclosure in the Precious Metals Puzzle Palace.”

Listen live on Thursday evening by phone, Skype or online, or listen at your convenience by downloading the MP3 after it posted on Friday. If you are calling in by phone, make sure to check out the local access numbers available.

If you would like to learn more about The Solari Report and subscribe, click here.