from FinancialSurvivalNet
Another Monday, another session with “Ranting” Andy Hoffman. The so-called Spanish Bank Bailout is purely illusionary and isn’t really happening. Rather, it is an effort to convince the people of the world that something is being done and that the situation is under control. In reality, the world economy is being ravaged like a California forest by a wild fire. They’re pouring all the water they can to put the fire out, but there’s not enough water in the world to bring it under control. The fire must run its course, and the best we can hope for is that once the forest has been burned to the ground, we can try to stop it from reigniting.
On the subject of ETF’s and whether they’re really holding all the gold they claim to, the Funds have been caught flat-footed with the disclosure that the gold bar held up by CNBC reporter Bob Pisani, during his visit to the GLD vault at an undisclosed location, was actually owned by another ETF, unrelated to GLD. That’s why there’s no substitute for physical gold and silver. Watch the weight, not the price.
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Bix Weir says things are heating up in Europe and once there’s no Euro, there won’t be a dollar for too long after that. Once Europe implodes, it’s goodbye time for the derivative markets. We’re already seeing the start, in Italy a bank holiday was declared by BNI bank, depositors presently cannot access their funds or pay bills. However, fear not, the bank will still accept payment for debts owed to them. But pretty soon, those debts, along with the bank’s deposits may very well cease to exist. Which is why gold, silver and a quantity of paper notes is still your best financial survival program. Bix will be checking in more as the situation heats up; and, the way things are going, it could boil over at any moment. Thank goodness we have the FDIC in the US. They’ll never let our giga banks go under. You can always trust the government to do the right thing for sure. Ha!
Alan Ellman of 
Ty Andros is back examining the international monetary system with great disdain, as usual. Ty is one of those people who has voted with his wallet. He’s left the creeping totalitarianism of Chicago, and it’s greatly expanding Thugocracy, for the greener pastures of income tax-free Florida. There’s so much going on in the world and gold and silver will be the eventual beneficiaries of the current upheaval. The sentiment indicators and prices charts point to gold and silver’s bottom. Helicopter Ben has been unequivocal about his intention to inflate the currency into oblivion, but he’s still trying the shell game in an effort to fool investors into keeping faith in fiat currency and undermine their faith in the metals. How long this effort can continue is anybody’s guess.
To all of you out there listening, as always, a heart felt thanks. We’ve been at BlogWorld New York for the past few days, figuring out how to better do the show and better serve your needs. But I wanted to take a break and acknowledge the passing of our close friend, Bob Chapman, The International Forecaster. While we sent out an email to everyone on our list, we wanted to make sure that each of you understood the importance and reverance with which we held Bob. He was a clear voice of reason in a very confused and confusing time. Bob was a true friend to me, to the show, and to you. He helped so many people through difficult times in their lives, often anonymously; and, he helped prepare thousands, perhaps hundreds of thousands around the globe, for the coming economic disruptions.
John Rubino of 
Former Congressman John LeBoutillier joined the Financial Survival Network today to discuss the election and economic trends happening in the US and across the globe. We were interested about his take on the global financial elite, Too Big to Fail Banks, and where he sees our nation heading during this election season, which is currently ramping up. He’s currently a contributor to Newsmax.com and he’s had a box seat, while watching the decline of America.
Martin Armstrong, noted market analyst extraordinaire, joined FSN for a far reaching interview about the current direction of the economic system and the future of the Euro, Gold and the Dollar. His new book is due out just before the election and it promises to be a real bombshell. Martin’s done what few people have had the desire or commitment to: he went back to the Great Depression and analyzed the sovereign debt defaults and the true underlying causes.While this time is definitely different, there are many striking parallels. Sovereign debt defaults are the rule, not the exception, this time as well as last. The politician’s inability, lack of desire and incomprehension are the same this time as well. The attempt to print the world’s way out of the jam is another recurring theme. Which just proves that the more things change, the more they stay the same. Try telling that to Congress!
Richard Bernstein has been involved in the insurance industry for decades; he was once an insurance advisor to Donald Trump. He’s done a full scale analysis of the upcoming bill and knows that it will be a disaster. He thinks there’s three good parts and the rest is evil and will lead to more government control over you medical treatment and health. While the insurance industry takes a big hit from the public, reduction of fraud and frivolous law suits would go a long way towards reducing the price of health care in America. But rather than addressing those issues, the government believes they need to step in and reduce our access to vital treatments. Hospitals are trying to control the doctors to mitigate their legal exposure, with potentially catastrophic results. In the end, we all hope that the US Supreme Court sees through it all and rules it unconstitutional.
Andy Hoffman was ecstatic, almost euphoric today. Gold went up over $66 per ounce last Friday, and the NY Mets won their first no-hitter in the team’s history. Meanwhile, back at the ranch, gold and silver are under attack today, but they’re holding up extremely well. But this week promises to be an extremely volatile one. The Bernanke is appearing before Congress, the EU has a major meeting coming up, and there’s, as always, lots of opportunity for mayhem. So breaking out the Champagne might be a little premature, but don’t start hitting the hard stuff yet to flush away your sorrow. We may not have turned the corner quite yet, but it’s starting to look like the bottom is behind us.
Mickey Fulp and I reviewed the May monthly market stats, and boy were they ugly. Virtually everything was down, except for natural gas, which couldn’t go much lower anyway. Gold, silver, copper, oil, you name it, all down. But fear not–June is a time to enjoy the beginnings of summer. While often times, “Sell in May and Go Away” applies, this time could very well be different. June 1 was probably the start of something big, but it is extremely important to review market trends each month so you can get an insight into where things are heading. Don’t miss the upcoming Fracking Roundtable next Friday, June 8. Mickey. This technology is literally the key to America’s and the World’s future.
Friday, June 1, 2012, was National Donut Day, and why shouldn’t we all celebrate a food/grease type that’s put more inches on the nation’s collective waist than just about any other food out there. While Nanny Michael Bloomberg, New York’s anti-fun mayor, attempts to ban double gulp, super-sized, sugary, soft drinks, the real obesity war is being lost at Krispy Kremes and Dunkin Donuts stores in New York City and around the nation. But as Val Hughes and Mo Mentum explained, investing in obesity producers is a must win strategy. Will Rogers once said, “Invest in inflation, it’s the only thing going up.” Well things have changed greatly in the past 100 years. If Will were alive today, he’d be saying, “Invest in America’s waist size, it is only going up.”
David Morgan and I have been having too many precious metals panic reports, so we figured it was a good time to give a rally report. Today gold is up over $66 per ounce and silver’s rallied over $0.80 per ounce. These are dramatic, sudden, and possibly significant moves. Gold’s up over 4 percent in one day, an extremely rare occurrence, with silver following suit; silver’s up at just around a three percent increase. There have been signs of a precious metals rally on the horizon. The volume at the downside was slowing dramatically. The volume today was incredibly robust. All things considered, this might just be the breakout we were waiting for, and the persistent and continual bad news about the Euro and the daily disastrous job numbers could be the catalyst for an upward resumption. A couple of days ago, Sell in May and Go Away, looked like very sound advice. But today, June 1, 2012, on National Donut Day, the skids could be greased for overweighted returns in the precious metals markets.
We spoke with Chris Duane aka The Silvershield late yesterday afternoon, before the awful job numbers came out. He’s buying silver on a regular ongoing basis, completely undeterred by the hype and drone of the mainstream media and the mainstream investment/gambling consultants who concentrate on the stock market and other gaming venues. It’s refreshing to find someone who’s so confident in his beliefs and observations about the crumbling financial paradigm. Many others have jumped ship and probably jumped the shark as well. Chris has been a consistent voice and critic of the existing financial system for years. He’s dedicated his life to helping you understand and come to terms with the bleak financial future that lies ahead. Today, gold is up around 50 bucks and silver’s up 70 cents!
Robert Ian, of 
Our favorite whipping boy Little Brother aka Nanny Bloomberg, formally known as Michael Bloomberg, is at it once again. Nanny Bloomberg wants to ban sugary drinks that are sold in containers larger than 16 ounces. As usual he knows better than you, and he wants you to retain your boyish or girlish figure. But don’t be too upset, you can still get that 1,000 calorie milk shake from Mickey D’s and as of yet refills don’t seem to be on his radar. These out of control, wannabe dictators must stay up nights thinking up these looney ideas.
Francis Cianfrocca is a CEO of an internet security corporation, an industry that’s becoming more and more center stage. But when it comes to financial security and survival, he believes the US is using the declining living standards of the middle class to bolster the retirement/baby boomer generation. By sucking up all the excess capital in the markets, the US government is making it more and more difficult for people to invest in businesses and get real returns on their capital. Propping up the big zombie banks is not doing anything to improve the economy or to fuel economic growth. Francis and I both agreed that in the final analysis, these banks are not too-big-to-fail, and the government will have no choice but to let them fail in as orderly a manner as possible. The costs of keeping them on life support are increasing by the day, with absolutely no return. The financial wake-up call is coming, it’s just a matter of when.
Wayne A. Root is a long-term, dyed in the wool libertarian who understands what it takes (or took) to succeed in America: hard work, the courage to take a risk, and the desire to make it. Unfortunately, confiscatory taxes, burdensome regulation and a built-in hostility towards entrepreneurs is making it much more difficult today. Wayne’s got some answers in the book he wrote, The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts. Wayne refers to himself as a Capitalist Evangelist, which isn’t such a bad thing. After all, he could be a wealth redistributionist, also known as a progressive.
Shawn Perger is from Vancouver Canada, and he has been involved with the mining industry his entire life. Canadians are much more in tune with the need for resources and the positive effect that such development has on economic activity. While he is certain that eventually gold and silver will reclaim their rightful place as real money, he also believes the efforts to save the existing fiat currency paradigm will stop at nothing to keep the system from imploding. Unfortunately, we are in a very perilous time for investors, and their unwillingness to accept the underlying reasons for monetary instability could be their undoing. As we’ve said numerous times before, no one can predict the exact moment of the global economic reboot, but it is certainly headed our way.
Debt elimination and repudiation is the only way the existing world’s economic disaster can end. The world’s central banks will not be able to print enough currency units to keep all of the losing enterprises afloat. Unfortunately, sacrifices will have to be made by all of the parties concerned, not just those least able to afford it. The too-small-to-save individuals and businesses have been left out of the bailout party, and they have suffered greatly during the current credit bust. Now, Spain, Italy and the rest of the economic basket-cases are approaching the moment when bailing them out will not be possible. Danielle Park believes cooler heads will prevail and accommodations will be made accordingly. FSN would like to believe that sanity will rule, but after four years of complete economic insanity, it’s hard to accept. What’s your opinion? Please let us know.
Chris Duane, the Silver Shield, joins us to discuss the unsustainable global economic system and the advent of the big break. Chris is very much in the silver market, and he, along with many others, feels the anxiety and tension building. Rumors of big silver orders being placed are running rampant, and according to Chris, the end of this summer seems like the most probable time for the big market break to happen. Chris knows this is the time to buy, and he has been frequently buying over the last week in a half, picking up all the bottoms as they’ve come along.
Ty Andros and I are doing the wrap a little earlier this week. Greece is playing chicken with a loaded gun to their heads. Spain’s regulatory bankruptcy becomes more and more apparent. Their losses have doubled in the past two weeks, and they continue to escalate. Their banks have undergone multiple bank runs, which have of course been papererd over. Hollande, France’s new socialist leader is attempting to get Euro Bonds to forestall the eventual day of reckoning and to continue to shift the obligations of today onto the generations of tomorrow, who will not pay the debts incurred anyway. The powers that be and the radical socialists that are running most of the governments around the world are in complete denial and will further diminsh the private sector and lead the world to bankrupty. Political solutions that don’t address the underlying issue of a population that expects something for nothing, will accomplish nothing.
Dana Meador is back with FSN today to discuss why your bank is insolvent and what the issue of collateral means in this day-and-age. With JP Morgan front and center of the economic meltdown, you should be aware that the little JP blowup is indicative of a much bigger problem that a lot of people are not aware of. If you are not aware, cash is the new bubble; it is where everybody has parked their money. What are the banks doing with the cash sitting in accounts everywhere?