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Russell: “Big debt is deflationary because it takes a lot of needed cash to carry big debt.  The US has doubled its total debt over the last seven years, and this in the face of almost zero interest rates.  The US is now borrowing just to pay the interest on its debt.  We're compounding ourselves into national bankruptcy.

Make no mistake about it -- what we're now experiencing is not a gathering stock market correction.  This is the resumption and continuation of the primary bear market that the Fed interrupted at the 2009 low.  Once a primary trend gets underway, it will always carry to conclusion.  Primary bear markets don't end with Fed interruptions -- they end in exhaustion -- when the last investor can't take it any longer and when the last investor throws in his stocks for whatever the market offers.

With the dollar now collapsing, it will require an increasing number of dollars (i.e. Federal Reserve notes) to buy an ounce of silver or gold.  When junk fiat currencies around the world start to crash, people will rush to own tangible Constitutional money -- silver and gold.

The primary bear market in stocks has been held back for years.  Meanwhile the primary bear trend of the economy has been hidden or disguised by the “manufactured” upward rebound in the stock market.  The stock market has been held back and stretched as if it were a spring that has been pulled away from its base.  Now the spring is pulling back towards its original shape.

What should you and I do?  Do just what I've been saying for many weeks.  Sit on the sidelines with physical silver and gold -- and watch history unfold.

Regarding reading the charts -- the charts never lie.  Weekly charts with their 200-day moving averages are very useful and revealing.

Below, the S&P starting to break down but still technically bullish.

The KEY ingredient of the whole picture, the US dollar, breaking down badly and now below its 200-day MA..

Special:  Silver is now dirt cheap and is beginning to trend up.  Personally I have been buying US silver Eagles for myself.  If it can reach 21, silver will have hurdled both of its moving averages.

Below, the gold to silver ratio, silver is now dirt cheap compared with gold.  One ounce of gold now buys 66 ounces of silver.  When the market finally loves silver, the ratio can drop to around 16 -- when one ounce of gold buys only 16 ounces of silver.

My advice, as it has been, is to move to the sidelines while holding large positions in physical silver and gold.  Regardless of what the markets do, silver and gold represent eternal wealth, and the bid to sleep undisturbed at night.  No amount of money is worth the loss of peace of mind.  The power of gold opened the American West and populated Alaska. Men have spent their lives searching for gold.  You can own gold by the simple action of swapping Federal Reserve notes for the yellow metal.  I advise you to do it.”

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© 2014 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

IMPORTANT - KWN has many more interviews being released today.

The audio interviews with Dr. Paul Craig Roberts, Bill Fleckenstein, Gerald Celente, Dr. Marc Faber, Egon von Greyerz, Rick Rule, Ben Davies, Rob Arnott,  Andrew Maguire, Art Cashin, Eric Sprott and John Mauldin are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf -- to listen CLICK HERE.

Eric King

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