Terry Sacka: Fed rate hike could be pulling the pin on the economy

“What they did was merely saving face and giving them the ability to lower that rate real soon with what is coming.”


Terry Sacka of Cornerstone Asset Metals called it as he sees it in a TruNews interview on Wednesday, December 16th.

“The last time the Fed raised rates, the debt to GDP was 61%; now it’s 104%.  Housing starts were 2.5 million and booming; now they’re barely 1 million.  We’re not doing even remotely okay to have rates go up but they MUST raise rates for credibility and to get ready for what is coming.”

Host, Rick Wiles, asked the unthinkable,”Throughout the last six months of 2015 all of the global news about the economy has been a warning that the world is locking up, the world economic system is locking up, it’s slowing down.  Global manufacturing is down, commodity prices have plunged, oil is in the basement, shipping is in a depression…So, I have to wonder, are they deliberately pulling the pin to detonate the economy?  Are they trying to bring down the house in 2016?”

Sacka’s answer shocked the news crew in the studio, “If they’re not trying, then why would they be doing it?  Because if you look at the other indicator it’s the one antithesis for the FED, it’s the Achilles heel: the physical gold and silver Comex inventories that actually back up the paper physical gold and silver that controls the prices of the market.  Which is typically our indicator of inflation and economic growth, gold and silver prices.  Those inventories are literally at historic lows, meaning they have sold 330 ounces of gold on paper for every one real ounce in the vault for delivery.  We are astounded because the physical gold and silver is flying out the door, the inventories in the Comex are empty, and it’s because most of the activity is purely driven by what is coming.  The underground, or those that know, KNOW that you may be right, Rick, that this bomb is ready to blow.  If they’re pulling the pin on purpose I wouldn’t be surprised because it’s a way to flush out and distract for some of the underlying derivative problems we have.”

The news team was caught like, “deer in headlights,” as Rick put it and asked him to explain further.

“I’m astounded.  We are manufacturers of silver for IRA accounts and such.  And 2015 was the largest demand for physical silver in a decade plus.  The inventories that actually control the futures market which is technically they say the physical market, which is ridiculous, it’s now the derivative market.  But they control the price of gold and silver.  The have actually sold, in the markets for gold, 330 ounces on paper for every one real physical ounce in the vault for delivery.  So, just think, there’s 330 guys on one side of the street and one ounce of gold on the other side  Who’s gonna get it?  That has been going on increasingly over the last year and a half and yet the prices are so low it’s purely a manipulation; a gift and a blessing to those who get it.  But the fact that the vault inventories are near empty should (cause) those in the West to shudder.”

Describing the empty Comex vaults, Terry said, “That Comex will default.   If it defaults, credibility’s gone.  But the thing is, if we have an implosion, what all the data says IS coming, at the end of the day it’s like musical chairs.  If you’re holding paper, you get smoked.  if you’re holding the real physical, you see a tremendous wealth transfer because you can almost name a price as they’re escalating.”

Sacka said that the Fed rate hike was merely saving face and giving the Fed the ability to then lower rates again when the financial crisis hits.

“I mean, think: the world is in negative interest rates; Japan, Europe, Canada.  So there’s nothing positive economically.  So, if they’re preparing for a fall out and you’re at zero there’s nowhere else to go.  So to go up to come down only makes sense.”

One of the co-hosts of the show commented, “Even Ben Bernanke said yesterday that they only way he sees out of it is through negative interest rates.”

The team commented, “Which means, ‘taking your money'”.

Rick asked the obvious question, “Shouldn’t they (the brokerage houses) be in prison for fraud?”

“Absolutely,” Sacka replied.  “But they’ve gotten a clearance called a ‘Naked Short’.  They’re allowed to sell something they don’t own.  I can’t do that, mind you.  They’re selling Naked Shorts and it’s purely to support those that are fiat based.  They’re there to protect the dollar’s image.  This is purely psychological.”

Another bombshell came regarding 401ks and IRAs when the question was asked about those backed by paper or physical metals.

Sacka explained that with a Precious Metals IRA there is actual gold backing it up, but that most people have money in the stock markets with paper gold and paper silver.

How would you know if your 401K is gold-backed or just paper backed?

Terry explained that there is a difference, “A 401K is probably paper” but IRAs are often backed with physical metals.

“But if their IRA is managed by a broker or someone in the fiat system, they’re probably being talked into paper-backed, not the real physical, and most folks don’t even realize that’s the case.”

If this is new information to you I suggest checking your portfolio immediately.

The list of honest financial advisers shouting from the hills a warning about a financial collapse is growing by the day. Many of them strongly recommend precious metals.

Based on my research over the past couple of years my understanding is that for decades all high-end portfolios were advised to contain a portion of precious metals; the recommended number used to be around 10%.  Now the recommended number has risen to 20% and even higher, depending on who you’re talking to, with some advisers now recommending 50%.

But, remember, precious metals is not a get-rich-quick scheme; it is the only real protection you have against losing everything when everything crumbles.

I am not a financial adviser but I think there is wisdom is that kind of protection and I have suggested to friends that even if you only have $200, get some gold and silver.

According to Terry Sacka, when gold hits a high it can deliver returns at 60%, but when silver hits the high along with gold (because they travel together) the return could be 200%.

Right now prices are still low and it’s a great time to buy.  Pray about all things, but this is one of those areas that I believe G-d can create a wealth transfer for believers who pay attention to the season.

Pray about it and see what you are led to do.  But, it seems clear that the financial system is headed toward a meltdown like we’ve never seen, whether by orchestrated planning or colossal, repeated stupidity.

Here’s a recent quote from another expert:

“We are now at the dangerous end-game period of a very bold but very reckless & disappointing experiment with the world’s fiat (unbacked) currencies. If this experiment fails – and we observe it’s in the process of failing – gold will provide one of the best forms of wealth insurance. But like all insurance products, it only works if you buy it before you need to rely on it.”
-Chris Martenson









Blanchard logoWayne Schmidt
Blanchard and Company, Inc.
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Choose gold and silver for time-tested protection against black swans, debt sinkholes, and a dying dollar