on Precious Metals (2012)
Another Decade Of 500% Returns Is Possible. Posted 12/30/2012.
For the period 1990 to 2011: Coins & Medals (including ETF funding)
increase 248%, Jewelry & Silverware increased 9%, Photography
decreased 70%, and Industrial Demand increased 78% (from 257 million
oz to 487 million oz). Total silver usage in 1990 was slightly over
700 million ounces and in 2011 almost 900 million ounces. The belief
is that investment and industrial demand will be the two biggest drivers
for silver. Silver demand for 2015 is expected to rise to about 1,180
million oz (according to Hecla Mining). The biggest increase in consumption
of silver will come from Asia, Africe and emerging Europe.
Three Legs of the Precious Metals Bull: Part I. Posted 12/27/2012.
II. Three reasons why we know that gold and silver must outperform
most/all other asset classes in our current circumstances: (1) Excessive
money-printing, (2) Price suppression (through shorting
paper), and (3) Demographics. On the first point, current Western
money-printing grossly exceeds any other time in any modern, major
Western economy, with the exception of Weimar Germany. Worse still,
it continues to ramp-up at an exponential rate. And even worse, we
have these rapacious banksters now openly using words like unlimited
(Europe) and open-ended (the U.S.) to describe their suicidal
money-printing. On demographics, China, India, and now Indonesia are
buying gold and silver at ever increasing rates, especially as their
per capita income continues to improve. For example, China's per capita
income more than tripled from 2003 to 2011, while global mine-supply
of both gold and silver only increased by approximately 20% in that
time period. Meanwhile, global silver inventories have plummeted by
as least 90% over the past 25 years while global stockpiles have declined
by over 80% in the past 50 years. Most of silver used for industry
is not recyclable since it is used in such tiny quantities, but ends
up in landfills, gone forever. Another factor is that western investors
are under invested in physical gold and silver.
striking parallels between the US and the Roman Empire. Posted
12/28/2012. America has seen:
Deposits Soar By Most Since Lehman And First Debt Ceiling Crisis.
Posted 12/27/2012. By depositing money into banks, ordinary Americans
(and companies) are providing even more dry powder for the banks to
trade on a prop, discretionary basis, either as directly investable
capital or as asset collateral. Should said deposits be pulled out
of banks (and according to the WSJ there is about $1.5 trillion in
deposits that may be impacted), the net result of such capital reallocation
would be far more disastrous to stock markets than anything the fiscal
cliff and/or debt ceiling theater could possibly do as it would mean
unwinding an ungodly amount of trades that have had$1.5 trillion as
real assets, with subsequent repo and re-repo leverage applied to
Organ: China is the Short Behind Gold & Silver Manipulation.
Coming Isolation of USDollar. Posted 12/27/2012. When the USDollar
is no longer the global reserve currency, the Gold Standard will be
right around the corner, if not already in the implementation stage.
Ferguson: The Landscape of the Law. Presented 7/3/2012.
Not a Fiscal Cliff
Its the Descent Into Lawlessness.
Posted 12/25/2012. Economist Marc Faber calls the U.S. a failed
state. Indeed, we no longer have a free market economy
we have fascism, communist style socialism, kleptocracy, oligarchy
or banana republic style corruption.
Sprott: Why Are Investors Buying 50 Times More Physical Silver Than
Gold? Posted 12/24/2012. The current availability ratio of physical
silver to gold for investment purposes (i.e. minus industrial gold
and silver demand) is approximately 3:1. So, why is it that investors
are allocating their dollars to silver at a much higher ratio?
Last Christmas in American? Posted 12/20/2012. The end of work
and the end of mass affluence.
Calm Before the Storm. Posted 12/24/2012. Old lessons being relearned:
- Staggering Increase in the Cost of Elections, with Dubious
Campaign Funding Sources.
- Politics as the Road to Personal Wealth: During the late
Roman Republic period, one of the main roads to wealth was holding
public office, and exploiting such positions to accumulate personal
- Continuous War: A national state of security arises, distracting
attention from domestic challenges with foreign wars.
- Foreign Powers Lavish Money/Attention on the Republics
- Profits Made Overseas Shape the Republics Internal Policies
- Collapse of the Middle Class
- Gerrymandering: Romes late Republic used various
methods to reduce the power of common citizens.
- Loss of the Spirit of Compromise
Troops deployed after looting at ski resort. Posted 12/21/2012.
New Cold War Is Being Fought Over Gold & Silver. Posted 12/21/2012.
The following effects and events affect the prices at every quarter:
- Living within our means.
- Critical importance
of sound money.
- Maintenance of money
as a store of value.
- Moral decay that begins
when we veer from the above tenets.
- Unavoidable final collapse
of a boom brought about by credit expansion.
- Remember the central
lessons of history that the problem is within our society.
- Inevitable roadmap toward
financial repression and Statism.
- Physical Silver Market Has Now Diverged To Extremes. Posted
12/20/2012. Silver at on point at the highs in Shanghai was trading
at a $1.75 premium. That means a single contract was trading at an
$8,694 premium to a Comex contract. Thats ludicrous. There are
reasons why silver or gold may trade at a premium in Shanghai, but
not to those kind of degrees. Were now reaching extremes, the
kind of extremes you rarely see. And the kind of extremes we saw,
not even that high (in terms of premium), back in August when we bottomed.
for your consumption!. Posted 12/20/2012. Let me get this straight,
the Fed announced QE 4EVA and the bank of Japan gets a mandate to
print other countless trillions (because their people voted for it)
and Gold goes down? Paper
good and Gold
bad. Period, end
of story. The central banks absolutely must scare you out of Gold
to show you that when you are scared, Gold is NOT the
place to hide as a financial refugee. They must show you
that their product that costs virtually zero to produce
value. They must show you that their product is THE place
to hide. They must show you through proof
that black is white, up is down and that wrong is right.
Reported Inflation Seems Different Than Reality. Posted 12/19/2012.
Shortly after Clinton entered the White House the Bureau of Labor
Statistics (BLS) altered the calculation of inflation by changing
the weighting of goods in the CPI fixed basket. Then, over subsequent
years, the method of weighting the underlying components was changed
from a straight arithmetic weighting method to geometric. The primary
result of the switch to a geometric weighting was a lower weighting
to CPI components that were rising in price, and a higher weighting
to those items dropping in price which led to lower reported inflation.
causes hyperinflations and why we have not seen one yet: A forensic
examination of dead currencies. Posted 12/18/2012. What causes
hyperinflations? The answer is: Quasi-fiscal deficits! Why have we
not seen hyperinflation yet? Because we have not had quasi-fiscal
deficits! A quasi-fiscal deficit is the deficit of a central
bank. From Germany to Argentina to Zimbabwe, the hyper or high
inflationary processes have always been fueled by such deficits. Monetized
fiscal deficits produce inflation. Quasi-fiscal deficits (by definition,
they are monetized) produce hyperinflation. Interesting points:
- Lower Exploration
- Lower Discovery
- Lower Ore Grades
- Lower Prices
- Higher Energy Costs
- Higher Labor Costs
- Higher Taxes
- Higher Regulations
Stanley Redeems Paulson Investments: Explanation For Recent Gold Liquidation?
another California housing bubble possible? Median home price up 16
percent over year reflecting mix of sales while income growth is stagnant.
Your Money Disappear. Posted 12/19/2012. Excellent article giving
the rationale and history behind fiat currencies and their inevitable
Admits China Is Accumulating Gold To Back The Yuan. Posted 12/19/2012.
I was just speaking to a Chinese diplomat and I said to their diplomat,
Your two most important commodities are water and gold.
And this diplomat said to me, Yes, we need gold to back up the
yuan. Well this diplomat realized very quickly they had made
a terrible mistake in admitting that and began to back off and stated,
No, its not to back the yuan. Its because of jewelry.
Another comment: "Longer-term, no one is going to keep giving
you something that is critical and rare in exchange for something
you can just press a button and print. The Chinese obviously get this
and they are hoarding these critical resources."
- $3.5 Billion Of Paper Used To Smash Gold Price. Posted 12/19/2012.
Essentially what they (the Chinese) are trying to do is divest themselves
of their dollars, euros, yen and any other fiat currency as fast as
they can. They are not stupid, they are going to sit back and allow
the governments to defend these (paper) currencies. So their bids
are in the market and they are totally flexible at every discounted
fix price. There does, however, reach a point where these leveraged
paper sales simply run out. Physical allocations force the selling
bullion banks to actually buy back some of these physical allocations.
You just have to look at the current backwardation. It offers a good
window into what is actually occurring right now.
Learns the Hard Way: Guns, Global Warming & Printing Money.
Posted 12/19/2012. Good history on how Japan was conned by America
into its 1980s asset bubble (of real estate and stock prices). Basically,
Japan was buying Reagan's quadrupling of debt from $1 trillion to
$4 trillion from its US military buildup. Japan's 22-year deflationary
cycle is now near collapse. The author predicting not more than 2-3
years before it happens.
Countrys [Japan's] Endgame Starts Today. Posted 12/17/2012.
In yesterdays election, Shinzo Abe became Japans prime
minister. He said his number one job is to put an end to the countrys
eternal deflation problems. He wants to devalue the currency to create
inflation of 3% and promote growth through exports. In other
words, Mr. Abe wants the Bank of Japan (BOJ) to print money like never
that markets have been destroyed, Chris Martenson earns his tinfoil
hat. Posetd 12/15/2012.
The Road Less Traveled. Posted 12/17/2012. Several points:
(1) Gold and silver do not declare bankruptcy and have no counter-party
risk. (2) Investment return since 1/1/200 of about 15% per year compounded
for 13 years for both gold and silver (i.e. $285 to $1,750 for gold
and $5.40 to $33.50 for silver). (3) Safety--cannot be printed, increased
investment demand especially in the East, central banks net buyers,
mining supply flat. (4) Future expectations of increased currency
devaluation via money printing with fear of inflation and loss of
confidence in world currencies.
in Fragility: The Rise and Fall of Phantom Housing Collateral.
Posted 12/13/2012. If mortgage debt has fallen 10%, and household
income has also declined by about 10%, then what's changed? As a percentage
of disposable income and GDP, mortgage debt is still at historic highs.
and Archer: Why $16 Trillion Only Hints at the True U.S. Debt.
Posted 11/26/2012. The actual liabilities of the federal governmentincluding
Social Security, Medicare, and federal employees' future retirement
benefitsalready exceed $86.8 trillion, or 550% of GDP. For the
year ending Dec. 31, 2011, the annual accrued expense of Medicare
and Social Security was $7 trillion. Why haven't Americans heard about
the titanic $86.8 trillion liability from these programs? One reason:
The actual figures do not appear in black and white on any balance
sheet. But it is possible to discover them. When the accrued expenses
of the government's entitlement programs are counted, it becomes clear
that to collect enough tax revenue just to avoid going deeper into
debt would require over $8 trillion in tax collections annually. That
is the total of the average annual accrued liabilities of just the
two largest entitlement programs, plus the annual cash deficit. If
the government confiscated the entire adjusted gross income of these
American taxpayers (i.e. $5.1 trillion from those making over $66K),
plus all of the corporate taxable income in the year before the recession
(i.e. $1.6 trillion in 2006), it wouldn't be nearly enough (i.e. total
of taxpayers gross and corporate net would equal $6.7 trillion) to
fund the over $8 trillion per year in the growth of U.S. liabilities.
Cashin Previews Our $202 Trillion Destiny. Posted 12/11/2012.
In 1950 every retiree on social security was supported by 15 active
workers. By the end of 2010 there were only 3.3 workers for each retiree.
The government believes there will only be two per retiree by 2025.
A Wall Street Journal editorial a couple weeks ago highlighted the
fact the government is facing not a $16 trillion debt but an $87 trillion
debt if you take into account the unfunded liabilities of social security,
Medicare and Medicaid. If you fast forward 20 years until all the
boomers are retired that soars to $202 trillion according to Boston
silver within three years predicts Charteris fund manager. Posted
11/13/2012. Silver is about to enter a sustained bull market that
will take the price from the current level of $32 an ounce to $165
an ounce and we expect this price to be hit at the end of October
Gold Now at $1,300+. Posted 12/11/2012. If we take the total net
income of the top 5 gold miners Q3 2012, we get $1.9 billion or 39%
less than the same quarter in 2011. If we take that net income and
divide it by the total amount of gold produced by the group (i.e.
5.45 million ounces) we get $348.65 net income profit per ounce. If
we take the average price of gold currently (i.e. $1,700/oz), we can
see that break-even is somewhere at $1,350 when we add in everything.
Calls for the Establishment of World Government and a New World Order.
United States: 5% of the Worlds Population, 25% of its Prisoners.
Real Food Expensive in America? Posted 12/6/2012. A counterpoint
to real (healthy) food being too expensive. Of course, the article
does not mention inflation affecting even real food.
plans to double gold consumption in three years, how high will gold
prices go now? Posted 12/6/2012. Chinas Ministry of Industry
and Information Technology announced that it expected Gold consumption
in the country would be running at more than double national gold
production by the end of 2015, more than double Chinese gold consumption
forecast for 2012. The impact of Chinese demand for an additional
500 tons of gold per annum on the gold market will be enormous. This
is more than all the gold bought by the global central banks last
Prices Have No Meaning. Posted 12/5/2012. Pricing any tangible
asset in Monopoly Money is meaningless, since Monopoly Money can be
printed at essentially zero cost. In the same way, as the U.S. dollar
is being printed in near infinite amounts (well over a trillion dollars
a year) and at zero cost (i.e. just a keystroke away), it is (as a
matter of arithmetic) already worthless. The paradox here is that
as our financial system spirals relentlessly toward some form of hyperinflationary
point-of-no-return; as the prices of assets become steadily more nominal,
arbitrary, and unreal; manipulation of markets (and asset prices)
becomes steadily easier rather than more difficult.
Golden Laws. Posted 11/27/2012. Subtitles include:
- There is absolutely no historical evidence of a nation sustainably
living under inflation that would have reached full employment.
In fact, it is quite the opposite: Inflation breeds unemployment,
which breeds shortages and further inflation. [Bernanke's efforts
to reduce unemployment through money printing will in fact produce
the opposite effect.]
- The truth is that inflation and financial repression are
inseparable. They are different faces of the same coin, and
as inflation develops, financial repression morphs into plain
confiscation. As at December 2012, we have only had increasing
financial repression, mostly in the form of price manipulation.
Some of this manipulation is open, as with interest rates, and
some of it is covered, as with gold, the consumer price index
or the unemployment rate. But as the US fiscal deficits grows,
the manipulation will be increasingly open and the fear of confiscation
will be very tangible.
- "Fear of confiscation" leads to an en masse flight
from the system. People will not only take their savings out of
the system, but they will attempt to generate income outside of
it. In the early stages, everyone seeks to stop investing and
collect by any means whatever capital that can be recovered.
- The shrinkage of the system exacerbates the fall in tax revenue
and the intervention of central banks, leading to the self fulfilling
outcome of quasi-fiscal deficits. Production falls and the shortage
of goods, together with the increase in the circulation of money,
triggers high inflation.
- Hyperinflation is not just a run from a currency, but from the
economic system entirely. Two possible effects: (a) food shortages
as the increase in cost of production causes farmers to produce
less food, and (b) real estate prices drop as the rights of debtors
and tenants are favored over those of creditors and landlords.
- Gold Standard
Recall. (The law:) The Gold Standard will return from a sheer
standpoint of value, stability, and resistance to storms based
in failed bond auctions, debt writedowns, and insolvency consequences.
Only a hard asset backed new currency can replace a fiat paper
- Central Bank Extremes. (The
law:) The Gold Bull continues unbounded with the Zero Percent
Interest Policy (ZIRP) as its primary cylinder, while the artificial
0% distorts all financial markets, all assets, and all value.
The Gold Bull will continue until the USGovt debt default, and
until the USDollar retirement.
- The bond monetization known as Quantitative Easing (QE)
powers the upward move in the cost structure for the global
economy. The result is a shrinking profit margins imposed
on the entire economies, felt in job cuts and reduced budgets
for expansion, even maintenance.
- The combination of ZIRP & QE lead to capital destruction
and systemic breakdown. Observe the fast falling Money Velocity
while money supply grows at a staggering pace.
- Entrenched Disorder. (The
law:) The anti-Gold system continues to attempt to reinforce
itself until its final implosion. Criminal means and false accounting
backed by media propaganda are their tools that reinforce the
current power structure. It will yield to foreign designed trade
settlement systems, to the forced Gold Standard return, and to
- Metals Pulled Apart. (The
law:) Gold Bullion diverges into official voided supply,
matched by huge syndicate supply. The visible vault storage with
public accounting will eventually show nothing present, while
the private syndicate vault storage will be hidden from view.
- Gold Migration. (The
law:) With Gold goes the geopolitical power. As huge amounts
of Gold are shipped Eastward, with huge tonnage leaving London
for points East like China, so goes the important shift in geopolitical
power. A Paradigm Shift is in progress, at work.
Gold (Imminent) Breakout In All Currencies. The arrival
of the Gold Standard as the solution is being slowly manifested
in the form of a gold-core trade settlement system, which will drive
a global Gold Standard. The new system will dictate bank reserves
practices, and render the USTBond as a rejected toxic paper relic.
Debt: Why America May Need a Bailout by the IMF. Posted 12/5/2012.
US debt is increasing 21 times faster than increases in GDP. The Fed
will try to 'inflate their way out', raising prices over a period
of years rather than defaulting outright, so that most people won't
know what hits them. However, just because the feds want moderately
higher rates of consumer price inflation doesn't mean they'll get
them. But there's another problem. Federal benefits are indexed
for inflation. The feds don't get as much gain as you might think
- at least not from moderately higher rates of inflation. Hyperinflation,
on the other hand, pays off quickly. Benefits are adjusted, but not
fast enough to protect the old folks. Bondholders can be ripped off
easily too. A few percentage points of increase in the CPI and trillions
of dollars worth of US financial obligations disappear.
You Live In A Death Spiral State?. Posted 11/25/2012. California
is ranked #3 with 139 takers to 100 makers.
Supply Crunch Coming? Posted 12/3/2012. A number of issues will
make supply very tight in the future, especially among retailers,
not the least of which is China's hoarding it's own gold mining, buying
gold in the open market, and buying up gold mines around the world.
Analysis: Schiff vs. Bernanke. Posted 12/3/2012. According to
Schiff there can be no comparison between the bank panics and collapses
of 1873-1907 and the Great Depression of 1929 1939. If roughly
500 banks failed in 1893, then 744 banks failed during the first 10
months of 1930. But here is the difference: In 1893 the bank failures
ended because the government didnt intervene, while in 1929
the government intervened and the crisis continued until 9,000 banks
had failed. According to Schiff, everything Bernanke had to say was
pure fantasy. The people responsible for engineering the
countrys economic recovery dont know what theyre
doing. The economy is struggling under the weight of all this
government and central banking, said Schiff. The real
crisis, the real day of reckoning is not in our past. Its in
Deception & Taxes by Daniel Amerman, CFA. Posted 11/25/2012.
Seven layers: (1) The Placid & Deeply Misleading Surface (i.e.
either a short or deep recession), (2) The Trillion Dollar Swap (i.e.
private sector collapse, offset by public sector spending through
money printing), (3) A 28% Reduction (i.e. the real reduction in private
sector wealth creation, not the 8% advertised), (4) The Math Trap
That Consumes Taxpayers & The Markets (i.e. a 28% decline cannot
be offset by a 28% gain. It requires a 40% gain to get back to even),
(5) Raising The Taxes By 40% & The True Nature Of The Fiscal Cliff
(i.e. the government will be back to raise taxes again and again),
(6) The 2012 US Elections & Spending (i.e. People who have neither
the knowledge nor concern about economic factors will continue to
vote to defend what they see as their rights to their income and lifestyle),
and (7) Deceptions & Investments (i.e. if politicians have the
choice between facing unpopular and unpleasant truths, or creating
pleasant deceptions, they will consistently choose pleasant deceptions).
"To even partially meet those promises will require a major
redistribution of wealth. Which from a political perspective,
as the false narrative behind the Fiscal Cliff demonstrates, must
be done in a increasingly deceptive manner. Now let me suggest that
for those who do not invest in anticipation of that process, that
it will be their wealth that will be redistributed. And just as most
voters won't understand why the lifestyle they voted for themselves
never turns out to be as good as what they thought they voted for,
much of the redistribution of wealth from investors and their retirement
accounts will be done in a manner that is sufficiently complex to
assure that most people will not understand what is happening."
Reasons The U.S. Is No Longer The Land Of The Free. Posted 1/15/2012.
(1) Assassination of U.S. citizens, (2) Indefinite detention, (3)
Arbitrary justice, (4) Warrantless searches, (5) Secret evidence,
(6) War crimes, (7) Secret court, (8) Immunity from judicial review,
(9) Continual monitoring of citizens, and (10) Extraordinary renditions.
Bass On The End Of The Debt Super-Cycle. Posted 11/20/2012. He
expects Japan to reach critical mass (my words) in possibly 12 months.
Banks Gold Likely Gone-Eric Sprott. Posted 11/19/2012. Mexico
has 10% of its gold. Germany has one-third of its gold. India has
60% of its gold. Also, liquidations of major institutions are not
allowed, since it could bring the whole system down. Thus, everything
is being papered over. At some point this will fail.
Smoking Guns, Part II: Investment Paradox. Posted 11/18/2012.
Going back to the 1990s; silver has never been so under-priced
in all of history. Since silver was first discovered in the New World
600 years ago; it has never been so under-produced. Yet despite these
literally unparalleled parameters, silver has never been so under-owned
by investors in all of history.
few people understand this trend. Posted 11/16/2012. There are
only a few people who get it: the era of cheap food is over.
Nearly-Free University. Posted 11/15/2012. The entire education
industry on the U.S. is based on an inflexible, increasingly marginal-return
"factory model." The Nearly-Free University would be available
anywhere there is an Internet connection and other people willing
to self-organize and collaborate. In many cases, if space is required,
it could be shared. Vast campuses are no longer needed.
Anatomy Of A Breakdown. Posted 11/13/2012. Four phases: (1) The
Warning, (2) Shock and Awe (1-2 Days), (3) The Breakdown (3-7 Days),
and (4) Recovery (8-30+ Days). The basic 10 preparedness items: (1)
Food and alternative ways to cook food, (2) Water, (3) Fuel for generators,
cooking stoves and mantels, charcoal for outdoor grills, (4) Batteries,
(5) Generator, (6) Emergency lighting, (7) Ice, (8) Medical supply,
(9) Baby formula, and (10) Sanitation supplies. Also see: 52
Weeks to Preparedness: An Introduction to Emergency Preparedness and
Texas Nullify Both NDAA and TSA?. Posted 11/13/2012.
Grinding America Down (Full Movie). Roots to Communism in all
Is a college degree worth the cost? You decide. Posted 11/13/2012.
Graduates with degrees in mathematics, robotics, neuroscience, engineering,
accounting, business administration, economics, biology, communications,
graphic design, marketing, and linguistics. All working at a night
club to make ends meet.
Middle-Class Tax Breaks on the Chopping Block. Posted 11/12/2012.
(1) Capital Gains, (2) Payroll Tax Relief, (3) Child Tax Credits,
(4) Medicare Surcharge Tax, (5) Earned Income Tax Credit, (6) Alternative
Minimum Tax, (7) College Tuition Credits, and (8) Estate Tax.
Democracy Possible in a Corrupt Society? Posted 11/11/2012. If
the citizenry cannot dislodge a parasitic, predatory financial Aristocracy
via elections, then "democracy" is merely a public-relations
facade, a simulacra designed to create the illusion that the citizenry
"have a voice" when in fact they are debt-serfs in a neofeudal
to overtake India in overall gold demand: GFMS. Posted 11/9/2012.
China's gold demand is expected to grow 1 percent this year to a record
of around 860 tonnes, the global head of metals at consultancy Thomson
Reuters GFMS said on Thursday, with both jewellery and investment
Recommended Reading: A New Kind of Freedom. Posted 11/8/2012.
Protest in Huge Anti-Government March. Posted 11/8/2012. Argentina
is falling apart fast. Angered by rising inflation, violent crime
and high-profile corruption, and afraid President Cristina Fernandez
will try to hold onto power indefinitely by ending constitutional
term limits, the protesters marched on the iconic obelisk in Buenos
Aires chanting: "We're not afraid."
The Rightful Remedy. Posted 6/25/2012. States are rebelling from
federal government as seen on election day. It'll be interesting to
see how the federal government will handle this.
=> The Audacity Of States: Nine States Voting on Nullification
Measures!. Posted 11/4/2012.
Relentlessly Replacing Dollar As Reserve Currency. Posted 11/3/2012.
Readers need to fully grasp the three trends which are all rapidly/simultaneously
destroying the value of the U.S. dollar: (a) Exponentially increasing
U.S. deficits are requiring exponentially increasing money-printing
as all this new dollar-denominated debt is issued. This alone must
result in hyperinflation, the only question being when, (b) The switch
from the dollar to the renminbi must result (sooner or later) in a
panic-flight out of the dollar and also U.S. hyperinflation,
(c) Gratuitous money-printing from the Federal Reserve to the Wall
Street crime syndicate now exceeds $1 trillion per year in 0% loans
and simple hand-outs.
Lassonde at Denver Gold 21 Minute Video. Posted 9/16/2012.
Go directly to the video here.
He thinks the commodity super-cycle has at least 5-10 years left,
and would bet a lot of money that the Dow:Gold Ratio reaches
2:1 over the next 10 years, implying a 4 fold increase in the gold
price from todays levels in relation to the Dow Jones Industrial
will be Panic into Gold: Doug Casey. Posted 10/29/2012. Also discusses
Maloney's Dire 2005 Warnings Come True - Silver Summit Presentation.
Growth as Propaganda: The Greens and the Reds. Posted 5/31/2011.
the Devolution of Big Government. Posted 10/29/2012. Headings:
(a) Massive Borrowing, (b) Institutionalized Mal-Investment, (c) Erosion
of Trust in Government, (d) Diminishing Returns on Public Debt, (e)
The Hidden Tax of Inflation and the Institutionalization of Falsification,
(f) Self-Reinforcing Feedback Loops of Self-Interest. Further discussion
(on paid side): (1) The U.S. is less prepared for contraction than
the U.S.S.R. was, (2) The pressure to print money and the spectre
of runaway inflation, (3) What we must learn from the Japan example
(the U.S. is unlikely to tread a similar path), (3) Why you must expect
and prepare for the rules to change.
Great Gold Scam. Posted 10/29/2012. Currently, global mine supply
is roughly 2,800 tonnes of gold per year. However, of that annual
total 2,000 tonnes is already committed to the wholesalers who supply
the global jewelry industry. With demand for gold by investors surging;
more than 1,500 tonnes per year is siphoned out of the gold market
by investors. As of 2012, the worlds central banks are now massive,
net buyers of gold; on pace to add more gold to their reserves than
any other year in history. GFMS Ltd (formerly Gold Fields Mineral
Services), the quasi-official record-keeper for the gold industry
estimates that total purchases will approach 500 tons this year alone.
This begs an obvious question. Where is all this gold coming from?
Its not coming from the gold miners.
U.S. Become the New Saudi of Oil? Posted 10/29/2012. This year
production has grown to an average of 6.2 mbpd through June. The EIA
projects that production of U.S. crude oil (using the proper definition)
will rise to 6.7 mbpd by 2020 and begin a gradual decline thereafter.
But it is worth keeping in mind that U.S. consumption of finished
petroleum products this year has averaged 14.1 mbpd.
Begets More Weakness. Posted 10/29/2012. Weakness begets weakness,
until something dramatic reverses the trends course. The 99%
are firmly stuck in a declining trend, and we do not see it reversing
any time soon.
Sufficiency: A Local Solution To A Global Problem. Posted 10/29/2012.
The goal of the "New Theory" is to have people return to
the countryside from the cities and develop their communities in a
self-reliant manner. It is, in other words, Agenda 21 in reverse.
Under the "New Theory," demonstration stations all across
Thailand have been created promoting education in matters of agriculture
and self-sufficient living. Socialism, on the other hand, is not about
growing your own garden, using technology to enhance your independence
or solving your problems with your own resources. It is about taking
from the collective storehouses of the state, and when you are again
hungry, taking again.
calls for one world currency system. Posted 11/7/2011.
See the document: TOWARDS
REFORMING THE INTERNATIONAL FINANCIAL AND MONETARY SYSTEMS IN THE
CONTEXT OF GLOBAL PUBLIC AUTHORITY
TRILLION dollar suit against U.S. govt. officials and major banks!
Accuses of stealing from U.S. people and money laundering. Screenshots
of CNBC running it. Posted 10/26/2012.
knows that gold is rigged. Posted 10/24/2012. It should come as
little surprise then that recently China has been buying gold like
there is no tomorrow. Gold imports through Hong Kong in only the first
eight months of this year (at 512 tons year-to-date 2012) already
have surpassed the entire official European Central Bank gold reserves.
Charles Oliver Sees Momentum Building for Gold and Silver. Posted
10/24/2012. Also recommends several mining stocks.
Banks Game Plan: One World Currency. Posted 10/24/2012. The Single
Global Currency Association has several reports that examine this
issue in more depth. When the great world financial collapse intentionally
triggered happens, the central bankers will unveil their end game
currency swap. Understand they will never forgive existing obligations
or absolve the debt burden that they decadently extracted from humanity.
The enemy of mankind is not Adam Smith capitalism, but the Rothschild
Have Been Warned! Part 2. Posted 10/23/2012. Excellent
summary from various commentators including: Peter Schiff, Daniel
Amerman, Bill Gross, Steve Saville, Charles Hugh Smith, etc.
Corn Belt, Farmland Prices Keep Soaring. Posted 10/23/2012. A
former John Deere dealer bought the 80-acre farm plot at a stunning
price of $10,600 per acre. Mr. Huntrods had thought it would fetch
less than $9,500 per acre.
Rickards - Currency Wars Simulation. Posted 10/20/2012. Older
video on how the dollar collapse might happen.
Government Demands BOJ Do QE 9 One Month After Failed QE 8. Posted
10/22/2012. (1) Govt. is asking Bank of Japan to increase its asset-purchase
program by 20t yen, Sankei reports, citing an unnamed government official.
(2) Program would be increased to 100t yen from current 80t yen: Sankei.
(3) Increased fund likely to be used to purchase long-term JGBs, ETFs
and J-Reits: Sankei. (4) BOJ is expected to lower economic growth,
inflation forecasts in an economic report due Oct. 30: Sankei.
Money Is Now Pouring Into Hard Assets All Over The World. Posted
10/20/2012. Money supply growth should never eclipse labor force +
productivity growth. When inflation rises faster than GDP, malinvestments
are created and asset bubbles form. That is especially true today
as we see a tremendously-dangerous bubble being created in all the
bond markets of the developed world. But what is also true is that
government debt, that is being systematically monetized by central
banks, is slowly destroying any confidence left in fiat currencies.
As more and more credibility is lost in paper money, GDP growth will
continue to decrease in real terms. As long as governments continue
to produce massive annual deficits that are purchased by their central
banks, the global economy will continue to stagnate and inflation
will increase. What is also true, is that equity markets tend to rise
over time in nominal terms because excess money supply lowers the
value of currencies and raises stock prices. However, the increase
in equity values seldom keeps pace with the rate of inflation. To
accomplish the goal of achieving a real rate of return on investments,
after taxes and inflation are considered, history proves that can
only be supplied by owning hard assets.
Food Reserves Have Reached Their Lowest Level In Almost 40 Years.
Posted 10/16/2012. World grain reserves are so dangerously low that
severe weather in the United States or other food-exporting countries
could trigger a major hunger crisis next year, the United Nations
has warned. Also see: UN
warns of looming worldwide food crisis in 2013.
Cycle targets America next. Commentary: Warning: Money + politics
= ticking time bomb. Posted 10/16/2012. Warning bells, alarms
scream louder. But our banks and politicians cant hear, are
deaf, in denial. Wont take action ... not until it is too late.
Not a Socialist Standard-Bearer At All. Posted 6/8/2012. Lots
of deregulation going on these last several years, from electricity,
nuclear power, telecommunications, postal services, public transportation,
health care, and a voucher system for education.
Socialism is a failure. The great myth about government
is that it is efficient. Government may be efficient at running a
war (i.e. control the economy for a single overriding objective),
but inefficient at running a diverse economy--i.e. central economy
planning. The major growth of government has been in the redistributive
area--taking from some and giving to others. It is an egalitarian
view--i.e. that all people should be treated as equals and have the
same political, economic, social, and civil rights or as a social
philosophy advocating the removal of economic inequalities among people
or the decentralization of power. The greatest source of inequality
has been the special privileges granted by government.
Friedman - Persuasion vs Coercion. Posted 1/7/2011. Most people
would rather have their own mind made up for them.
warming stopped 16 years ago, reveals Met Office report quietly released...
and here is the chart to prove it. Posted 10/13/2012.
Anarchist, Economic Collapse & 7 billion Chimpanzees. Posted
10/13/2012. Excellent Doug Casey speech on his form of thinking and
way of handling money. He defines "stupid" as those who
have "an unwitting tendency to self-destruct." Most people
are ignorant and apathetic (the "I don't know and I don't care"
types). Two types of people who desire change in society: those who
use persuasion (i.e. religious types) and those who use coercion (i.e.
the governmental types).
Posted 10/11/2012. The bubble economy that we are living in right
now is unsustainable because of: (1) the trade deficit, (2) the national
debt, (3), entitlements, (4) total debt, and (5) money printing.
Fed's sole purpose: keeping the banks afloat" G. Edward
Griffin. Posted 10/10/2012.
Debt Over $200 Trillion, Gold Demand Surges. Posted 10/8/2012.
Right now the US deficit is running at roughly $1.5 trillion per year.
In a couple of years time, we will have $20 trillion, at least, of
US debt. US tax revenue is now around $2.3 trillion. If you examine
$20 trillion of debt, and factor in a dramatic increase in interest
rates in coming years, as money is printed and inflation enters the
picture, an interest rate of 12% is very likely. Take 12% of $20 trillion
and you get $2.4 trillion per year just in interest. That figure is
more than the current tax revenue of $2.3 trillion. So the US will
reach a point, in the not too distant future, where the total debt
servicing will be equal to the total tax revenue. That is of course
Inflation Rate Is A Lie Too. Posted 10/7/2012. The official inflation
rate is around 2 percent, when in reality the inflation rate is around
Positive Power of Crisis. Posted 10/4/2012. Only in crisis do
human beings actually change anything.
Is The Plan. Posted 9/25/2012. Dr. Robert P. Murphy explains that
price inflation is the *plan*, not a regrettable byproduct, of QE3.
He quotes from economists Scott Sumner and Paul Krugman. It's intended
purpose is to force people to spend more.
Islands That Launched a Thousand Ships. Posted 10/1/2012. The
disputed islands between Japan and China is because there is a tremendous
amount of Oil believed to be in the area.
the Fed Unofficially Announced QE4. Posted 10/1/2012. Chicago
Fed President Charles Evans is Bernankes right hand man, and
the Chief Architect of QE3. This was QE3s plan,
to buy $40 billion of mortgage-backed securities every month, until
the unemployment rate magically declines. He (Charles Evans) said
that the Fed should continue buying at least $45 billion more of long-term
Treasuries, even after Operation Twist ends in January. (Remember),
Charles Evans will be a voting member in the FOMC next year. Here
is the most salient point, he did not indicate that these new and
additional purchases, which will start in January, would be sterilized.
Now, QE3, the $40 billion (each month), is not sterilized, so the
additional $45 billion (each month) starting in January would be the
replacement of Operation Twist (sterilized); thus, this will be
an unsterilized, open-ended, double-down version of QE3, This
is huge news. It is not an official announcement. Bernanke has not
sanctioned this move, but your readers should understand that Charles
Evans isnt a nobody. He is the Federal Reserve President from
Chicago. He is the architect behind QE3. The Fed did exactly what
he spelled out QE3 would be. He has clearly laid out what he
wants QE4 to be already, and this is what I think is going to happen
in January, and it will have huge ramifications to (investors) portfolios.
Global Spring. Posted 9/28/2012. Global unrest springing up in
China, Europe, Arab nations, and the USA.
Posted 10/1/2012. Bill Gross paints a gloomy outlook going forward.
Banks Can Legally Steal Retirement Accounts. Posted 9/2/2012.
Ruling And What It Means For Your Street Name Shares. Posted 9/12/2012.
The Sentinel Ruling is now a legal precedent. In bankruptcy of your
bank, broker or fund, you can find your assets in the majority of
cases are backing the liabilities of the entity in front of yourselves.
the Numbers Stupid. Posted 7/20/2012. Includes excellent video
on the federal budget by an accountant.
2013. Posted 9/27/2012. The US fiscal cliff is the biggest near-term
term threat to the global economy, according to Fitch Ratings. The
measures are due to slash the federal budget by $607 billion or 4
percent of GDP between FY 2012 and FY 2013, according to the Congressional
Budget Office (CBO).
Hidden Meanings in the New $100 Bill!. Posted 9/26/2012. The author
believes the new $100 bill is being held back until after the crash
and a new gold standard is established for the U.S. dollar. Also read:
Lobbyist - We Need a False Flag to Start War with Iran!. Posted
9/25/2012. Patrick Clawson of the influential neo-con Washington Institute
for Near East Studies openly suggests that the US should provoke Iran
into taking the first shot.Israel Lobbyist suggests False Flag attack
to start war with Iran.
Macro Analytics - FEDERAL RESERVE - Flawed Premise - Mistaken Role
- Part-1. Posted on 9/22/2012. Great charts on the Fed and failure
of central planning.
Banks Can Legally Steal Retirement Accounts. Posted 9/2/2012.
This article reiterates that, thanks to the "Sentinel Ruling"
banks can use customer funds to pay off creditors during times of
duress and that customers might never get their money back because
that money became the property of the bank.
JP Morgan Shorting Paper Metals While Acquiring Massive Physical Stockpiles?
Posted 9/25/2012. This article is rebutted by the following: Are
JPM's COMEX Silver Positions Only A Hedge Against Physical in the
Warehouse? This is another (more thorough) rebuttal: The
Arguments Against a Silver Manipulation dated 10/1/2012.
On Gold: Buffett Is Making A Big Mistake. Posted 9/20/2012. CNBC
interview. Dalio runs the biggest hedge fund in the world. Discusses
future social unrest and belief in gold.
Pay Attention If You Are in the Real Estate Market. Posted
9/19/2012. So, it looks like the Fed decision last week to buy $40
billion a month in mortgage paper is the ultimate plan to clear the
market once and for all of fraudulent mortgages, mortgage backed securities
and related derivatives. This means Fannie and Freddie will be bailed
out and winding down through the back door. This means the big banks
may be paid in full for your mortgage. It also means your pension
fund assets will not be marked to market at the price of debasing
the purchasing power of your assets and benefits....A major turn is
now underway. Watch to see how much the banks pass through to homeowners
and property owners to see how fast and big the turn may be. Watch
to see the inflow of funds from offshore.
Deflation And The Fed's Money Illusion. Posted 9/18/2012. The
bottom line is that the Fed is printing money, debasing the currency
and devaluing debt. The policy is redistributive, regressive and reflationary.
Its a nasty business for sure, and the truth must be obfuscated
from the public. But if we want to avoid a second great depression,
it is the right thing to do. Good luck trading.
SHILLING: Here's Why There's No Housing Recovery And Prices Will Collapse
Another 20%. Posted 9/19/2012.
Federal Reserve Is Systematically Destroying Social Security And The
Retirement Plans Of Millions Of Americans. Posted 9/19/2012. Anyone
who is 55 or older should be worried about this. Based on current
law, all SS benefit payments must be cut by (approximately) 25% when
the TF is exhausted. This will affect 72 million people. The economic
consequences will be severe. Back in 1950, each retiree's Social Security
benefit was paid for by 16 U.S. workers. But now things are much different.
According to new data from the U.S. Bureau of Labor Statistics, there
are now only 1.75 full-time private sector workers for each person
that is receiving Social Security benefits in the United States.
Inevitable Decline of Retail. Posted 9/19/2012. Online shopping
is rippling through the economy, affecting not just retail but energy
consumption and the job market.
Spring and Oil Prices. Posted 9/18/2012. By 2015 the Saudi government
will only be able to balance its budget if oil prices are at $115
a barrel if current spending trends remain in place. So in effect,
with the Arab Spring forcing governments to spend more on their citizens,
it has put a floor under the price of oil.
After the Returns Stop Diminishing, Part II. Posted 9/18/2012.
What too much military spending will do. Illustrated by Germany in
the 1930s and 1940s.
Total Game Changer in the Gold Market with Samsungs Deal with
Cluff Gold. Posted 9/18/2012.
has big plans but Government running out of money. Posted 9/17/2012.
A new report by PricewaterhouseCoopers entitled "A Homecoming
for US Manufacturing" claims it is now cheaper for whole clusters
of US industry to produce at home, close to their markets. Firms are
"re-shoring" -- to use the vogue term -- to cut transport
and inventory costs and take advantage of cheap shale gas. The weaker
dollar has iced the cake.
Dumping Stocks, Economist Knows Why. Posted 9/16/2012. A handful
of billionaires are quietly dumping their American stocks . . . and
fast. (Warning: The balance of the article is an infomercial.)
or Structural? Posted 9/16/2012. The federal government borrowed
51.6% of the dollars it spent in August, 2012. Consequently, the growth
of the national debt continues to accelerate. Normally economic activity
revives after a recession, which in turn leads to increased revenue
for the federal government, like it did from 2004-2008 when the more
rapid growth in revenue almost eliminated the deficit. But not this
time. Revenue is increasing, but so are expenditures at almost the
same rate. Consequently, the deficit is not shrinking, which
confirms a point I have made repeatedly for two years. The US is
confronting a structural problem. It is not a cyclical one that
will go away with improved economic activity. Importantly, the failure
to address this problem will eventually lead to hyperinflation and
the destruction of the dollar.
Human Cost: Your Life And The Lives of Those You Love Are Just
Pawns On Their Chessboard. Posted 9/16/2012. Those who control
the United States understand that even if a few countries begin to
sell their oil in another currency it will set off a chain reaction
and the dollar will collapse. They understand that there is
absolutely nothing else holding up the value of dollar at this point,
and so does the rest of the world. But rather than accepting the fact
that the dollar is nearing the end of its lifespan, The Powers That
Be have made a calculated gambit. They have decided to use the brute
force of the U.S. military to crush each and every resistant state
in the middle east and Africa.
World On The Verge Of War? Posted 9/16/2012. A summary of where
the world stands.
QE3" Quick Analysis: Federal Reserve Attacks US Dollar, Risks
Currency Warfare. Posted 9/14/2012. Hidden Taxes & A Devastating
Blow To Retirement Investors. See also: Making
9 Million Jobless "Vanish": How The Government Manipulates
no longer primary oil currency as China begins to sell oil using Yuan.
Posted 9/12/2012. This announcement by China is one of the most significant
sea changes in the global economic and monetary systems. A major blow
was done on Sept. 6 to the American empire, and to the power of the
U.S. dollar as the world's reserve currency. And China, along with
Russia, are now aiming to become the controllers of energy, and thus,
controllers of a new petro-currency.
Summed Up in One Sentence. Posted 8/22/2012.
New Parallel Economy Will Shock The Global Monetary System. Posted
Bond King: Buy Gold, Not Bonds. Posted 9/10/2012.
Bloomberg video. Amazing to hear. "[There's] a diminished or
dying cult of both bonds and stocks from the standpoint of a belief
that they can return 10%....Gold can't be reproduced. It could certainly
be taken out of the ground in an increasing rate but there's a limiting
amount of gold....Gold is a fixed commodity that has a considerable
store of value that paper money has not....When a central bank starts
writing checks and printing money in the trillions of dollars, it's
best to have something tangible that can't be reproduced, such as
gold....Gold ... is a better investment than a bond or a stock, which
probably will only return a 3 to 4 percent return over the next 5
to 10 years."
in a Free Country. Posted 9/10/2012. In parts: (I) The Myth of
Job Security, (II) Job Volatility, (III) Comparing Merits of Economic
Systems, (IV) more About Login a Job, (V) Government and Jobs, (VI)
Jobs and Technology, (VII) Outsourcing: the Objections, (VIII) Global
Labor Competition, (IX) Better and Worse Jobs, and Letters, (X) Protectionism
Revisited, (XI) Low Wages for Jobs.
For The Coming Housing Collapse: Part II. Posted 9/6/2012.
capital flight turns to stampede. Posted 9/5/2012. The net outflow
of private sector capital is nothing short of awesome, equivalent
to about 50 per cent of Spanish gross domestic product at the end
of the second quarter. In historic context, during the 1997 Asian
crisis, Indonesian capital outflows reached 23 per cent of GDP. The
Spanish outflows are more than twice as large.
The Music Stops How Americas Cities May Explode In Violence.
Three Tons of Food Looted From Grocery Stores In Spain As Millions
Struggle. Posted 9/5/2012.
People in Robin Hood style Supermarket Raids. Posted 8/13/2012.
Supermarkets in Spain have been looted by labor union members, in
a series of Robinhood style attacks.
Interview With Billionaire Frank Giustra. Posted 9/3/2012. Excellent
interview. He's a heavy investor in gold and farmland, besides his
core assets in mining, entertainment, etc.
and Currency Twisters. Posted 8/29/2012. Writes about the Morgan
Stanley implosion rumor, among other things.
for Liberty. Video series, the first episode scheduled to be released
on Septeber 17, 2012.
is Destroying Everything. Where is Common Sense When We Need it the
Most? Posted 8/19/2012. Long article with good history of debt
in the U.S. and in the history of the world.
Investment Offers in Africa Since 2010. Featured in Silver Update
8/27/2012 Africa Rising here.
Bernankes Blindness on the Great Depression. Posted 8/24/2012.
Bernanke thinks that the central bank didnt create enough money
in the 1930s. The truth is almost the very opposite. Inflation of
money in the 1920s worked its way through the banking system and into
an unsustainable real estate boom and a stock market bubble. The problem
was not too little money. It was too much. The world experienced a
repetition of this high money growth between 2002 and 2008 (and before).
Another real estate bubble occurred. We are living in its aftermath.
you always want physical EVERYTHING
Posted 8/23/2012. Cash
is king. In Italy theres massive distrust of the local banking
system. Most of the banks are insolvent, and the government has already
started imposing capital controls by limiting withdrawals in some
cases to 1,000 euros. As a result, many bank customers are facing
substantial difficulty in accessing their funds; its easy to
understand why they want to deal in physical cash the counterparty
risk is much lower.
Is Not Inevitable (Default Is). Posted 8/20/2012. The article
argues the case for default over hyperinflation. The reason is that
the government unfunded liabilities, over $200 trillion, are too big
and too long-term.
Sustainable National Healthcare System: Prevention Only. Posted
8/19/2012. The current sickcare system will bankrupt the nation. One
model of a sustainable national system would focus solely on providing
preventative care. "I blame patients, I blame doctors, I blame
hospitals, I blame drug companies, I blame insurance companies. Our
health care system is messed up because the system is designed to
fail, and everybody is responsible for health care failing as it is
now." Dr. Otis Brawley
Do Fascists Fight Communists? Theyre Two Ugly Semi-Identical
Twin Brothers. Posted 8/16/2012. The United States has devolved
into a statist/collectivist type of goverment. It is akin to a fascist/communist
idealogy as detailed in the article.
Points That Prove That Barack Obama And Mitt Romney Are Essentially
The Same Candidate. Posted 8/15/2012.
Things Killer Employees Do Before Noon. Posted 8/8/2012.
Dollar already went off a fiscal cliff. Posted 8/8/2012. The dramatic
dollar decline in the last four decades was offset (papered over)
by an equally dramatic debt binge. In order to keep the same standard
of living Americans went into massive debt. The government, banks,
and entire system essentially leveraged the future for short-term
gains on unsustainable promises. At this point US household debt has
reach a peak debt situation and is unwinding in the form of (1) foreclosures,
(2) bankruptcies, (3) job losses, and (4) tighter credit markets.
Little Perspective on What Lies Ahead. Posted 8/6/2012. For a
little perspective on what lies ahead, let's consider the structural
problems that remain even if we were fortunate enough to throw off
the yoke of the Fed, the corporate cartels, and the entire system
of Elitist dominance.
- They make a work to-do
list the day before.
- They get a full night's
- They avoid hitting snooze.
- They exercise.
- They practice a morning
- They eat breakfast.
- They arrive at the office
- They check in with their
boss and/or employees.
- They tackle the big
- They avoid morning meetings.
- They allot time for
following up on messages. Set a schedule to check and respond to
email in increments. Consider doing so at the top of each hour.
- They take a mid-morning
Gross to Investors: Stay Away From Europe. Posted 8/7/2012. Dont
put your money into Europe because they are not going to get out of
their debt crisis any time soon. The ultimate aim of European leaders
is to get their hands on private-sector money because they know they
will need it to fund the European economy. The current public-spending
program is not sustainable and efforts to fix the debt crisis have
been, and will be, futile, he said.
a Matter of Trust - Part 1. Posted 8/5/2012. The article includes
a good history of economic bubbles going back several centuries. "The
largest bubble in world history continues to inflate at a rate of
$3.8 billion per day and has now expanded to epic bubble proportions
of $15.92 trillion, up from $9.65 trillion in September 2008 when
this current Wall Street manufactured crisis struck. A 65% increase
in the National Debt in less than four years can certainly be classified
as a bubble."
QE Is Coming: Let the Gold Mania Begin! Posted 7/20/2012. Nearly
50% of the total outstanding debt of the world's top 10 debtor nations
needs to be rolled over by the end of 2015....It is my belief that
global central banks will be the buyers of last resort and will be
monetizing the debt in massive quantities over the next two and half
years. This may perhaps be the catalyst leading to the mania phase
for gold as investors all over the world attempt to protect themselves
from global quantitative easing and global currency debasement.
Just Pulled Out His Bazooka
How Long Before the Crash? Posted
7/26/2012. The ECB is out of ammo. Draghi is pulling a classic Central
Banker stunt: verbal intervention. If Draghi could in fact solve this
mess, he would have already done so. All that Hank Paulson got from
this type of tactic in 2008 was two months of market gains. ECBs
Mario Draghi's comments have the same vagueness and the same illusory
sense of control. His comments assisted by short-selling bans in Europe,
have sent stocks through the roof. However, I have no doubt
that these effects will be even more short-lived than Paulsons
the Financial Industry. Posted 7/20/2012. Goes into great detail.
Also explains the distinction between the two types of socialism:
communism and fascism.
on Unleaded Gasoline - Ethanol. Posted 7/19/2012. About 40% of
all domestic corn demand is the result of a federally mandated ethanol
Backed by Federal Supreme Court Decision, States Reaffirm. Posted
7/12/2012. We must remember that at the nations founding, it
was the several States that created a central body, laying out explicitly
where the federal government is supreme to states. Contrary to what
you have been taught in school, state sovereignty was considered an
important check on federal overreach.
Danger Signposts. Posted 7/12/2012. The U.S. dollar is quickly
losing its reserve currency status. Consider the recent headlines:
- We would still have mountains of debt that will never be paid
and enormous losses to write off.
- We would still have a global economy facing the constraints of
higher-cost energy and commodities.
- As Status Quo policies fail, replacement policies will become
less predictable in their implementation and unintended consequences.
Gold Net Exports Increased Substantially During First Quarter 2012.
Posted 7/3/2012. The United States was a net exporter of 103 metric
tonnes of gold during the first quarter of 2012. The reason why this
is interesting is due to the fact the U.S. was a net importer of 38
metric tonnes of gold during the same time period last year. Switzerland,
United Kingdom, and Hong Kong acquired over 90% of the total amount
exported by the U.S.
Reasons Why The Obamacare Decision Is A Mind Blowing Disaster For
America. Posted 6/29/2012. Reason #15 The Congressional Budget
Office estimates that Obamacare will add more than a trillion dollars
to government spending over the next decade.
the Table Set for a Mania in Precious Metals? Posted 6/29/2012.
If corporations chose to invest 1% of their cash in silver ETFs, it
would surpass the total current value of all such ETFs.
phases of money flow in the Great Depression. Posted 6/25/2012.
(1) After the 1929 stock market crash, people moved money out of investments
and put it into banks. (2) As the economy weakened in the 1930s, people
started to convert their deposits into cash currency. This was the
second part of the crisis, when fear for the safety of one's money
became more important than liquidity. (3) In the third phase, people
moved out of cash, and into gold because they realized that there
was more paper outstanding than there was gold in the U.S. reserve.
IEA WEO 2011. Posted 4/14/2012. Important charts on Oil and Nuclear
Currency Session 2, 1/2. Posted 6/13/2012. Keith Weiner lecture
on irredeemable paper money vs. gold. Session 1 presents the problem.
Session 2 presents the solution. Here is Part
Report #50 Spain. Posted 6/13/2012. Good summary of where the
European financial crisis is at the moment.
Janszen on Hyperinflation vs. High Inflation. Posted 6/11/2012.
Eric Janszen continues to predict 2013-2015 for Ka-Poom.
Lira on a Eurozone Marriage turned Orgy and a Latin American Divorce!.
Things That We Can Learn About Shortages And Preparation From The
Economic Collapse In Greece. Posted 6/4/2012. (1) Food shortages,
(2) Scarce supply of medicines, (3) Downed power grid, (4) Lack of
clean water, (5) Credit/debit cards stop working, (6) Crime, rioting,
and looting become commonplace, (7) Average citizens start bartering,
(8) Suicides spike, (9) Currency rapidly loses value, and (10) The
government will not save you.
Call? JP Morgan Sells $25 Billion in Securities to Offset Derivatives
Losses. Posted 5/30/2012. It's likely JPMorgan is liquidating
capital to meet massive margin calls over its escalating Interest
Rate Swap losses.
Tower of Babel Teeters. Posted 5/23/2012. Explains how the bond
rallies of second and third quarters of 2010 and August/September
2011 were likely IRSwap (Interest Rate Swap) induced by Morgan Stanley
of $8 Trillion in 2010 and JPMorgan of an unknown quantity in 2011.
The writer believes the currently announced JPMorgan losses are related
to IRSwap derivatives going against them and that the losses are likely
to be in the tens of billions if not hundreds of billions of dollars
within a year and not the $3-5 billion they have reported. The writer
believes a chain reaction event has occurred in the Interest Rate
Swaps system that will go viral and overwhelm USTBonds within a year.
The toppling of USTBonds will result in the death of the USDollar
and announcement of the USGovt debt default. Gold prices will then
Solutions To High-Tech Tyranny. Posted 5/24/2012. GPS Jammer and
other ideas. Here's one Car
GPS Jammer for sale.
were nowhere near the mania phase in precious metals. Posted
5/24/2012. Unscientific survey of locals around Lake Tahoe with an
American Silver Eagle in hand. No one knew its value.
Cost of Oil. Posted 9/16/2011. See also: Marginal
oil production costs are heading towards $100/barrel (posted 5/2/2012).
States Budget Dilemma. Posted 3/14/2012. Over 600k views!
Which is Unsustainable Will Go Away: Medicare. Posted 5/16/2012.
The Medicare system would need about 10 workers for every beneficiary
to be sustainable. Right now the ratio is just above 2-to-1. That
simply is not sustainable.
in Gold And Silver. Posted 5/16/2012. Backwardation going forward
several months suggests markets for precious metals, silver more than
gold, have become quite tight. There is a lack of unencumbered (i.e.
- Expect Tremendous Chaos, Europe Deteriorating Rapidly. Posted
5/15/2012. Europeans are exiting the Euro, which is strengthening
the U.S. dollar. Europe is undergoing from all appearances a deflationary
collapse, yet inflation is rising because of the ECB printing.
Plunges Below Marginal Cost: Commentary from a Retired Geologist.
Posted 5/15/2012. Marginal cost for silver is currently $29, according
to the article. Essentially, silver has been produced below total
costs since the 1930's, which is why only 22% of silver mines subsist
on silver alone and the other 78% survive on their other metal production
with silver as a mere by-product. No straight silver mine makes money,
unless it is very, very high grade.
miners need $3,000 price in five years - gold council. Posted
5/14/2012. Miners currently need a gold price of $1,300 to survive,
but face steep rises in mining costs, along with the cost of dividends
and host nation taxes.
Facts That Prove That America Is A Nation Of Slobs. Posted 5/9/2012.
Mostly statistics on social condition, but a few on finances. The
U.S. has more credit card debt, mortgage debt, and student loan debt
than anyone in the world. On the social front, we are the most obese
(36%), the greatest percentage of divorces, the most prescription
and illegal drug usage, the most fast food and soda consumption, the
highest teen pregnancy rate, etc.
Alert: If Youre Not Worried Yet
You Should Be. Posted
5/8/2012. Originally posted on Zerohedge.
Suggests 2012 will be the year that QE3 is announced, resulting in
the $USD losing a lot of its value which will cause inflation in prices.
Oil and energy prices will skyrocket. With high inflation, doing traditional
business will become nearly impossible.
Fraud & Theft Will Continue Until Morale Improves. Posted
5/7/2012. Excellent article on inflation of various sectors these
last 40 years. For example,
- "World's Second (China) and Third Largest (Japan) Economies
to Bypass Dollar, Engage in Direct Currency Trade"
- "China and Russia Drop Dollar in Bilateral Trade"
- "China and Iran to Bypass Dollar, Plan Oil Barter System"
- "India and Japan sign new $15 billion currency Swap Agreement"
- "Iran & Russia Replace Dollar with Rial & Ruble
- "India Joins Asian Dollar Exclusion Zone, Will Transact
with Iran in Rupees."
- "China and Chile to Establish Strategic Partnership, Launch
Currency Swap and Settle in Renminbi"
Dollar VS Gold: Epic Money Battle. Posted 4/25/2012. Suggests
Eastern bloc billionaires are involved in the suppression of gold
prices in order to raid gold. "The Eastern Coalition, not to
be confused with the Eastern Alliance, continues to push down the
gold price in order to execute some important very high volume purchases.
The coalition is comprised of a handful of extraordinarily wealthy
Eastern families with heavy motive to disrupt the balance of banking
power dominated by the New York and London crowd to the point of chronic
hegemony and abuse. They had a $50 billion infusion last November
to move the bullion metal out of cartel banks methodically. The coalition
pushes down the gold price in order to conduct raids on the gold cartel
member banks, exploiting their vulnerability with respect to margin
calls on sovereign bond positions and currency positions." Also
suggests that Germany will ally with China and Russia, and together
they will eventually ally with the Persian Gulf nations.
Housing, Peak Fraud, Peak Suburbia and Peak Property Taxes. Posted
4/25/2012. Compelling article on why housing will remain depressed
for years to come.
Great Western Revenue Crisis, Part I. Posted 4/23/2012. In REAL
dollars: (1) Spending on government social programs has been falling
since the mid-1990s, (2) Wages for government workers have been falling
since the 1970s, and (3) With our economy already totally hollowed-out,
so-called "austerity" causes deficits to get larger, not
smallera situation not unlike what has occurred in Greece.
real unemployment rate is at 22.2% (SGS-alternate unemployment measure).
Posted 4/9/2012. The peak unemployment rate in the Great Depression
was 25% (1933), so we are currently near those levels. Another number
to consider is the non-farm unemployment rate in 1933 of 35%, since
roughly a quarter of the population (27%) worked on farms compared
to 2% today.
Broken Window Fallacy. Posted 4/2/2012. This short video explains
one of the most persistent economic fallacies of our day.
Coins (US Mint) In Q1 2012 Show "No Hysteria and No Bubble".
Posted 4/2/2012. Dr Gurdgiev concludes that in recent months
demand for gold has been oscillating around the historic trend (as
opposed to resting above that trend in August 2008-August 2011 period)
is the good news - the current levels of demand are historically sustainable,
trend reversion-consistent and show neither hype, nor panic buying.
Critical Number for Gold. Posted 4/2/2012. History shows that
as long as REAL interest rates are 2% or lower, gold will remain in
a bull market.
Syndrome 2: A Run on the US Treasury. Posted 3/20/2012. Explains
the scenario that will play out when foreign lenders, particularly
China, refuse to rollover their holdings of U.S. debt.
- The average new home
price in 1970 was $26,600. The average new home price today is
- The average cost
of a new car in 1970 was $3,900. The average price of a new car
today is $30,748.
- A gallon of gasoline cost 36 cents in 1970. A gallon of gas
today costs $3.85.
- The average price of a loaf of bread in 1970 was 25 cents.
- HOWEVER, total wages and salaries rose from $16,079 in 1970
to $22,060 today.
Bernanke Tries To Convince America That The Federal Reserve Is Good
And The Gold Standard Is Bad. Posted 3/20/2012.
& Capital Theory. Posted 3/11/2012. Good discussion of monetary
versus physical capital. What is capital? Think in terms of
capital creation, capital employment and capital consumption or destruction.
If you build a house, you have created capital. If you live in the
house, you are consuming the capital. If you use a special tool to
build the house, you are employing capital. Savings is the
result of production being greater than consumption. The act of saving
is deferring the fruits of capital creation/employment/consumption
until later, whether the capital is used by the saver or handed over
to the next person for consumption. When savings is done poorly, it
results in capital destruction. The article explains how governments
are always net consumers of capital and, therefore, are net destroyers
of capital. Governments confiscate capital in at least three ways:
(1) via taxation, (2) by selling government debt (i.e. you are loaning
your capital to a net consumer when buying government bonds, not creator
of capital), and (3) via the fractional reserve system and money printing
(i.e. the dilution of the currency in which the capital is valued).
African Gold Production Dives Again To 90 Year Lows. Posted 3/15/2012.
The article suggest peak gold is here, "some data suggests that
global gold production may have peaked in the early 2000s."
9 Million Jobless "Vanish": How The Government Manipulates
Unemployment Statistics. Posted 3/14/2012. By Daniel R. Amerman.
Dumps Treasurys For 14 Consecutive Months; China Slashes Holdings
To Lowest In Over A Year. Posted 2/15/2012.
Heres How to Protect Your Retirement Assets From Coming Govt
Confiscation. Posted 3/31/2011. It's dated, but still
seek currencies made of silver and gold. Posted 2/3/2012. Worried
that the Federal Reserve and the U.S. dollar are on the brink of collapse,
lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South
Carolina and Georgia, are seeking approval from their state governments
to either issue their own alternative currency or explore it as an
option. South Carolina Republican Representative Mike Pitts proposed
a currency system that would allow people to use any kind of silver
or gold coin. Of all the state proposals circulating right now, Republican-controlled
states including South Carolina, Georgia, Idaho and Indiana have the
best chance of passing their proposed bills this year, said American
Principles Project's Danker. If just one or two states implement an
alternative currency, it could have a Domino effect, he said.
in Fascist Business Model. Posted 2/1/2012. The United States
of America had been the beacon of capitalism and freedom. In the last
20 years, it has proven to be the epitome of anti-capitalism...The
historians all too well are aware that the final chapter of a capitalist
nation is embedded in fascism, as its institutions suffer from profound
corruption. Headings: Corrupt Big Banks, Corrupt Central Bank, Corrupt
Regulators, Corrupt Mortgage Business, Corrupt Wars, Corrupt Exchange
Traded Funds, Corrupt Comex, Corrupt Economic Data.
Debt Supercycle Part II: On Borrowed Time. Posted 1/31/2012. The
U.S. deficit is structural and growing exponentially.
- Gold Shines as West Continues to Destabilize the World. Posted
1/29/2012. We are going to engender a bubble that is ten times bigger
than the real estate bubble and Ill name that bubble, its
the bubble in US Treasuries and in sovereign debt. The eventual collapse
in that bubble is going to dwarf anything we have seen to date in
this ongoing financial crisis. You dont have to guess what happens
during a period of intractable inflation or hyperinflation. If you
look at the worst hyperinflation case the planet has ever witnessed,
it was the Hungarian collapse in 1946. The Hungarian pengo was not
even fit to line the bottom of a bird cage when the Hungarian government
was finished with it.
to Benefit from the Greatest Transfer of Wealth. Originally posted
2/16/2009. During the 7 years of famine in Egypt, in the time of Joseph,
one of the greatest transfers of wealth in the history of this world
took place. The Pharaoh of Egypt obtained great wealth in the amount
of land and people who became his servants. And Joseph bought
all the land of Egypt for Pharaoh: for the Egyptians sold every man
his field, because the famine prevailed over them: so the land became
Pharaohs Gen 47:20. Not only did he buy every mans
field but also every man as a servant. With what did he buy every
man and his field? With bread buy us and our land for
bread, and we and our land will be servants unto Pharaoh Gen
Are Deleveraging, But Not Because They Want To. Posted 1/23/2012.
It would require another 22% reduction in house prices from mid-2011
in order to get to a ratio of debt relative to income of 2000. This
may happen by mid-2013. By another more extreme measure, U.S. households
are a bit more than one-third of the way through deleveraging.
Hundred Million Dollar Penny. Posted 12/13/2011. If a penny was
worth $100,000,000, how much could you buy?
Debt Supercycle Reaches Its Final Chapter. Posted 1/18/2012. Welcome
to the final chapter of the Debt Supercyclea period of trillion
dollar deficits that are being monetized by trillion dollar expansions
of central bank balance sheets, otherwise known as money printing.
Once fiscal policy is pushed to the limits of sustainability, the
Debt Supercycle will come to a violent end. Three potential market
shocks: (1) A spike in commodity prices triggered by additional rounds
of quantitative easing, (2) political instability and loss of confidence
in government policy, (3) a default or restructuring of a sovereign
debt that caused a domino effect.
Middleton Illustrates Pitfalls of American Education Using His 5 yr
Old Daughter. Posted 1/16/2012. Why we have a failed educational
China's gold imports reaching panic proportions? Posted 1/12/2012.
Total gold imports expected to be around 490 tonnes for 2011 or double
the 245 tonnes of 2010. Together with domestic production estimate
of 375 tonnes, the total for 2011 would be 865 tonnes. At this rate,
in a few years China's gold reserves will surpass Germany's 3,400
Dow 36,000 and The Secret History Of A 70% Market Loss. Posted
1/12/2012. Documents how inflation hid a 70% market loss from 1968
to 1982, and how it will do it again in our current situation.
Move Against US Called First Shot Of World War III.
Posted 1/11/2012. Also details Saddam Hussein's and Muammar Gaddafi's
attempts to trade oil in non-US dollar based currencies.
to Maintain Cash Supply Growth at Inflationary Pace. Posted 1/3/2012.
Argentinas central bank plans to keep injecting cash into the
economy at the current pace, a move that may further stoke inflation
thats already among the fastest in the world....Consumer prices
in Argentina rose about 25 percent this year, according to private
economists. Thats more than any major global economy except
Venezuela as President Cristina Fernandez de Kirchner increases government
spending to spur consumer demand and boost local production.
All Been Done Before. Posted 1/10/2012. Everything that is currently
going on in the US... government "stimulus", massive deficits,
pending bankruptcy and the use of the crisis to institute more government
controls and blame the "free market" has already happened
twice in the last century in the US.
Paul's Fantastic Speech After Taking 2nd In New Hampshire. Posted
1/10/2012. Succinct presentation of his views.
Black: Another Consequence of Economic Decline. Posted 1/10/2012.
After limping along for most of the last decade with a socialist agenda,
the government of Argentina is at it again. The economy is rapidly
deteriorating, and street-inflation has surpassed 25%.
Arbitrageur: Silver In Backwardation. Posted 1/6/2012. In a normal
commodity, backwardation means shortage. But in gold and silver it
means something else entirely. People have the metal. They
are just unwilling to decarry (i.e. sell) it.
Scary Sectors for 2012. Posted 1/3/2012. CNBC interview with Reggie
Middleton. Explains the problems with F.I.R.E. (Financials, Insurance,
and Real Estate) going into 2012. Mentions Bank of America's insolvent
Dismal Economic Outlook For The New Year. Posted 1/6/2012. Scathing
commentary on the U.S. economy over the last 10 years.
Surprise: Is Obama preparing a trillion-dollar, mass refinancing of
mortgages? Posted 1/4/2012. Steps may be underway to give the
economy a boost via a mass refinancing program for agency-backed mortgages.
Price Volatility Hits the World. Posted 1/3/2012. Food-at-home
(grocery store) prices are expected to have increased 4.25 to 4.75
percent for 2011 (from data as of November, 2011) and for 2012 are
forecast to increase another 3 to 4 percent. The article presents
many other issues related to food production, including energy (petroleum)
costs, food stamps, arable land, and water. "The US no longer
controls oil prices through our own demand structure. We are no longer
the force in world oil price movements. It is the emerging demand
from the 7 billion people in the developing world that control oil
prices, and now that is going to be the case with milk, beef, and
grains, as well. This means that the value of a home garden, although
its "price" is not posted every day, is rising -- and will
Biggest Hedge Fund [Bridgewater Associates] Is Bearish For 2012 Through
2028, And Is Long Gold. Posted 1/3/2012.