Tuesday, July 17, 2012

NATURE'S REVENGE

Just as the 30's ushered in financial hardship and the worst heat and drought conditions for a hundred years, so goes this century's latest natural calamity. We survived a monumental oil spill since the financial collapse and we survived a tsunami and earthquake of epic proportions. We survived the nuclear meltdown following the tsunami.....at least for now.....maybe. Now a biblical catastrophe is developing in the heartland that has repercussions that even the puppetmasters cannot contain. As mentioned on this blog by some of its participants in the past.......only nature is more powerful than the cabal.....and nature has its own timetable. A severe food crisis would trigger unimaginable pain for the peeps and that includes us. I just returned from a survey in the cornbelt and its becoming epic. Wells are drying up and precious water for livestock is fast disappearing. Without well water many farmers will begin liquidating herds of cattle.....sending prices briefly lower but eventually triggering a chain of events far beyond just higher prices. Corn prices will become volatile triggering supply and JIT disruptions that could trigger stampedes of hording....not just corn but all food staples. CONfidence is a nasty actor......hard to establish but very easy to lose. I am not a meteorologist and all I can do is report what is happening on the ground in the center of the drought and it is becoming critical. People are expecting everything to be "taken care of", but right now nature is in control. If things become desperate just be careful and prepared. We need rain and we need a lot of it now. Its probably not coming. Back in town and happy to be here......We are nearing an enormous move in gold and silver.......hold on now and play investor......NO overtrading this next move.....just trade around your positions.

From Stephen Leeb today.... I have known this guy for years and he has been total establishment investor ....now listen to THIS



I spoke to you last time about how the establishment has banks taking in customer’s gold and turning right around and leasing it to the bullion banks in order to suppress the price of gold.  The banks continue to charge the customers for holding their gold as ‘allocated,’ even though the gold has gone out the door to aid in the gold price suppression scheme.

This is fraud plain and simple, but this fraud is being encouraged by the establishment.  I would say I’ve never really believed in conspiracies, but for the first time I am saying that if you want to have gold, you have to have the physical gold.  This can be accomplished by owning something like the Sprott Gold Trust.  But I’m getting nervous about the ETF GLD.  You cannot accept GLD as being safe anymore.  

So you really have the makings of a war between establishment and the non-establishment.  And what makes this so intriguing is that on the non-establishment side you have a very, very big partner in China.  In China, let’s say you have a $10 million account and you go into a bank and say you want $500,000 of gold, they’ll give it to you.  

Contrast that to the Western banks which are leasing out the gold that customers have entrusted to them.  The Chinese want their citizenry to own gold.  The total amount of gold in China has to be enormous and growing. 

All of the factors I’m discussing with you today are precisely the reasons why I no longer believe gold has major downside risk.  At one point I was telling KWN readers that if Europe cracked we could see some major selling of gold and a bout of weakness.  I no longer believe that to be the case. KWN today


MOSCOW, July 18 (Reuters) - A Russian government commission on food security met on Wednesday and discussed state intervention in the domestic grain market as the preferred method of cooling prices this year, an Agriculture Ministry spokesman said.
"There is no new information on interventions," Dmitry Bobkov said by telephone. "The issue is still under discussion and depends on market conditions."




48 comments:

  1. This link was on Phil Davis's site today about the drought.

    http://www.google.com/hostednews/ap/article/ALeqM5giM3abJ3BGpuCDLnNol6zoWZCC6A?docId=43e121c94e69426ea2bbf53fbe5cc38chttp://www.google.com/hostednews/ap/article/ALeqM5giM3abJ3BGpuCDLnNol6zoWZCC6A?docId=43e121c94e69426ea2bbf53fbe5cc38c

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  2. reply to chuck on VVUS diet drug.....you are correct....it is a wretched excuse for a drug and should never be approved.....that class of weight loss drugs is a curse on humanity....but then patients will race to get them for their stimulant effect.....not realizing or caring about the long term effects.....

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  3. Kli,

    Big money knows how to get their way :) I think many doctors will not take on the risk..The REM is pretty tough too..
    I bought a little more...
    ANX and GALE made up for it...

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    1. cannot predict......but typically and I will use fenfen as an example.....there only needs to be a small percentage of prescribing doctors......and patients will seek them out.....so yes vvus with its marketing will have prescribers....I would not rule out the possibility that it sells well.....sad

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    2. people are crazy...2 old drugs backed by big money and called something else..
      coffee is my choice :) and for closers : ) Have a good day, have to make some real money...

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  4. btw..

    GENE has picked up some buyers...they should have earnings based off settling and getting cut of revenue for some of their genetic patents...a lot of people just forgot about those settlements..

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  5. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/17_Saut__The_World_Is_In_Its_3rd_Super_Cycle_In_The_Past_200_Years.html

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  6. Strange how the economic and weather cycles are so parallel. I understand in the 30's agriarian economy this was a direct tie. The mistake I have made is to think we are above cycles or they have been smoothed as we are a modern-smart society. I dunno can Brazil step it up and grow corn?

    Also to note this is to be a El Nino year. In the 1930's the El Nino brought the only hurricane to make landfall in California in the 20th. century. Today the Cali coast is built down to the sand and Cali is due for a hundred year storm.


    Good post Kli.

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    1. Sheeps, its starting as you can see off Peru...I'm a weather nut...Damn Dr. George on channel 7 in LA in the 70's got me hooked..Surfers must know the weather :)

      http://www1.ncdc.noaa.gov/pub/data/oisst/navy-anom-bb.gif

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  7. Watching bens testimony....very chaotic....also noteworthy is a tone of an increasing loss of confidence developing

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  8. good day to be adding to your physical.........

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  9. brazil corn http://in.reuters.com/article/2012/07/09/usa-corn-imports-idINL2E8I97V620120709

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  10. Chuck, I can feel it already. The moonsoon has already come over the mountains and visited costal San Diego last week...A month early. Had that sharky earthquake feel to it. Made it finally to Bull Taco pretty good food.liked the curry shrimp tacos and Bluefin tacos...

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    1. sheeps that sounds absolutely fantfuckintastic.........i gotta get out there to see ya

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  11. accumulation pattern continues in gold and miners

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  12. this is what will ultimately happen and why trying to trade your positions is not wise

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/17_The_Naked_Shorts_Will_Be_Destroyed_In_The_Gold_Market.html

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  13. Thanks Kli, Brazilian corn is not that cheap and would likely get even more expensive. Ethanol "BURNS" 39% of the normal corn crop. we should stop this.

    Ron Paul was interesting on the hill.

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  14. I can hardly wait for the destruction of the naked shorts! Great discussion -- did the Paul "audit the Fed" bill pass?

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  15. Any time Kli, take you on the farm tour... I have been really busy with this. For example, for each 625 sq ft of growing ground I add 2 yards of organic composted manure at $25 per yard. About a ton. Each time I go get the soil and unload it by hand...roto till it into the native soil create rows, plant, irrigate, feed in an organic method..I have a good tan.

    Outside of avocados made our first sale of herbs at the local swap meet...LOL...Hispanics love little containers of herbs that only cost a dollar...So know going togrow some stuff to cater to them such as peppers...

    Have an agreement to sell watermelon, cantalope, kolrabi and celerey root and other stuff to a local CSA.

    So small farming can be done but you have to keep costs low, low, during this start up period.

    An El Nino would bring a bumper crop of avos...

    You guys are welcome anytime.

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  16. Sheeps, good luck with the farm! It sounds awesome. I know it takes a tremendous amount of work to turn a profit. I own a small garden center in NJ. I have 3 greenhouses on the property where this time of year I grow tomatos, cucs, peppers, ect. for friends and family. My income comes from selling bedding plants, shrubs, trees ect.

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  17. Nice Ryan! You are in good spot. I always enjoy going to the garden centers...People are usually happy doing something they enjoy. Like most everything there is no easy money out there.

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  18. Thanks Sheeps. True, most of my customers are very happy to see me each spring and yes it is a lot of work, but I enjoy it. I wish you nothing buy success!!!!

    Rudy,

    Im in Cedar Knolls, NJ which is in morris county. I'm about 35 to 40 miles west of NYC.

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  19. Hi kli, I follow the blog daily but rarely post. My family farms here in Iowa
    my wife's family farms in Nebraska. We have a huge problem with the crops up here.
    They are burning up, some of the corn is already made that was the early planted corn and it looks okay will do 115 to 150 bushels pre acre maybe more in some areas. Later planted corn is toast we have NO carry over from last year left. And I want to make this point very clear. The cattle growers east of the Mississippi are selling cattle because There is NO grain available right now to feed them. They are out. Remember they didn't get a great crop last year because of the flooding. I run a small feed store and I can't get feed for two weeks. The feed mill is out of grain to make the feed. I pick up about 3 ton a week is all! Pay no attention to the grain futures market the cash corn bid here at the local Ethanol plants is running 8.05 to 8.40 a bushel the plants have run out of corn to make E-fuel and many have sold forward their fuel and the farmers don't want to sell any corn they have left. It's getting crazy.. Very unreal! "IF" the corn belt doesn't get a lot of rainfall this fall and in the spring there are going to have to be sad decisions that the world governments will have to make that for many, many people will suffer unbelievable things. One thing is for sure food prices and other things are going to go sky high. God to think if Ben will print also with all this going on.. Thanks for the blog Kli
    Matt

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    1. please post more as this develops.....very valued from my perspective and from many on here......gl to you matt

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  20. rut row....

    http://www.zerohedge.com/news/netanyahu-accuses-iran-being-behind-bulgaria-explosion

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  21. This chart makes me sad - http://slopeofhope.typepad.com/.a/6a00e0098982228833016768978514970b-popup, blue line is GDX, black like is S&P

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  22. Hi, Matt appreciate the post from the heartland. GL to you and all who are trying to cope with this. I do hope you will continue to post.

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  23. Morgan county farmers I talk to say they are already chopping there corn stalks for feed as there are no ears and won't be along the Osage river in miller county some corn have ears while some are barren most say there beans are not working either even rain now will not help most hay fields are giving fifty to eighty percent from last year but came to wright county to take my bro to emergency room fell off ladder picking barren peaches the deer had fleeced the lower branches clean xrays and a late nite

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  24. thnx roddog.....please continue to keep updated on the ground

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  25. Recently two noted Spanish economists were interviewed. One was always an optimist and one was always a pessimist. The optimist droned on and on about how bad things were in Spain, the dire situation with the regional debt, the huge problems overtaking the Spanish banks and the imminent collapse of the Spanish economy. In the end he said that the situation was so bad that the Spanish people were going to have to eat manure. The pessimist was shocked by the comments of his colleague who had never heard him speak in such a manner. When it was the pessimist’s turn to speak he said that he agreed with the optimist with one exception; the manure would soon run out. from ZH today

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  26. Lots of charts on the Keystone Speculator site today. Keystone continues to believe that Natty gas will do well. Keystone believes our politicians are purposely holding Natty gas back. Once they stop doing that and promote it/rebuilding of America/etc., Natty gas will fly.

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  27. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/19_Richard_Russell_-_Get_Rid_Of_Debt_%26_Prepare_For_Tough_Times.html

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    1. With continued uncertainty in global markets, the Godfather of newsletter writers, Richard Russell, issued the following warning: “This is the time to cut back on needless expenses -- get rid of all the debt you can, and prepare for tough times. I don't like the utter calm and complacency that I see today. The last few generations can't conceive of drastic changes and hard times.”

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  28. From the WSJ:

    While lawmakers continue to fight over how to fix the ailing U.S. Postal Service, the agency's money problems are only growing worse.

    The Postal Service repeated on Wednesday that without congressional action, it will default—a first in its long history, a spokesman said—on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn't likely, as the House prepares to leave for its August recess.

    The agency said a default on the payment, for 2011, wouldn't directly affect service or its ability to pay employees and suppliers. But "these ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers," said spokesman David Partenheimer.

    The agency says it will default on its 2012 retiree health payment as well—also roughly $5.5 billion, due Sept. 30—if there is no legislative action by then.

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    1. E-mail and electronic bill payments did them in. Game over.

      The bloated bureaucracy at the top doesn't help matters either.

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    2. Bloated bureaucracy, hehehehehe! Now there's and understatement if I ever heard one! The Post Office is about as nimble as a sloth as it relates to the business environment it is in. Typical Guberment Agency!!!!

      Yup, we're gonna pay the freight as usual..........

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  29. take a look at the weekly SSRI chart i just added above......hmmmmmmm

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  30. http://www.armytimes.com/news/2012/07/ap-virginia-mortuary-unit-to-middle-east/

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  31. Must be heart breaking to be a mid west farmer..to see your hard work wither.

    Feels like they are having a hard time holding down the miners today.

    Not sure if you all have heard this one. The billion dollar steel contract to rebuild the Oakland Bridge in San Francisco went to a China based company. Workers on the bridge may $12.00 per hour.....

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    1. Yeah Sheeps things are a bit upside down now a days..........

      http://cnsnews.com/news/article/tsa-let-25-illegal-aliens-attend-flight-school-owned-illegal-alien

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  32. Tom, that is outrageous. The TSA can group 6 year olds..But a handful of flight school students are NOT screened.

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  33. The chit going on in our Country today reminds me of the Biblical tale of Sodom and Gomorrah and at this rate if common sense, logic and sound reason is not put forth into action, it's a certainty we are going to share a similar fate.........

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    1. there is no WE now......there is only they...and the plan IS to flush this mess......then pick up the pieces for nothing and begin again.....wash rinse repeat.......reset.

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  34. Since there is no "We" anymore and only "They" than I suppose the "We", we no longer are, should all befriend the Tidi-Bowl Man...........

    Kinda dating myself here! Hehehehehehe

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  35. joe's PPP pick looks like a rocket ship candle forming.......

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  36. a

    It is clear that problems are developing the gold market and the Fed is pushing gold and silver down. Every statement by Bernanke is followed by a crushing move down in silver and gold:

    "It is now beginning to be discussed, openly, that the unallocated gold is not at the banks. This is definitely the case with many of the allocated accounts as well. The reason I’m pointing this out is you have a more ‘open’ disclosure that’s taking place with regards to this.”

    The London Trader continues:



    “This tells me there is something major that is happening behind the scenes. It tells me that the LBMA’s price fixing scheme is coming to an end. You have these naked short positions, that are incomprehensible to most people, in both gold and silver....

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/20_London_Trader_-_The_LBMA_Gold_Price_Fixing_Scheme_Is_Over.html

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