Sunday, December 30, 2012

THE REAL CLIFF

.....and it ain't the one they're talkin' about. Its the loss of CONfidence. That is where the real battle is being fought over. REALLY? Do you think that the trips back and forth from the various home states back to D.C. involved substantive discussions regarding the "fiscal cliff"? Do you really think the talking heads on the various MSM outlets like CNBS just suddenly out of nowhere thought to start repeating the mantra "fiscal cliff" in UNISON. Coincidental? Then what IS the purpose of this choreographed fiasco of stalemate in government. As we have alluded to in the past it is to create an air of "democracy" in action.....or...."this is the way a democratic government works".  Its not pretty, but it does "get the job done". Its Kabuki theater for the peeps that aren't paying attention to the real game and are just living paycheck to paycheck as mindless debt slaves. Each day they cram into their compact commute car and fight an hour of mind-numbing traffic to get to their cubicle and face their tedious, repetitive keystroke tasks. They need to believe that someone is out there representing their interests. They need a side. A red one. A blue one. A right one. A left one. A conservative one. A liberal one. A progressive one. A Tea Party one. Its all designed for distraction while the real game goes on. That game is Command and Control. Its always about CONTROL. CONfidence is an integral part of CONtrol. Without CONfidence the system cannot exist. The system maintains CONtrol through maintaining CONfidence the paper fiat is actually backed the the "faith" in the government and its laws and institutions....wherein lies the current battle. The peeps MUST believe these institutions (such as Congress) are working to "Govern".  They not only can muster the courage to send drones to the far reaches of the world to protect us but they can also "balance a budget".

They are working for you and for me. THAT is the CONfidence we must have. We must have a very massive military presence worldwide to enforce this power and CONtrol of our dollar. You have to back your currency with something besides just air and in this case the last firewall between our dollar and vapor is the military. It really has been for several decades now. Gold pretended to back the dollar for awhile but that was an illusion that was destroyed eventually as we lost virtually all of our physical gold and we went all in on the derivatives ramp in the 80's to "grow" our way out of the 70's malaise by leveraging in a very clever way our banking system to levels of 40, 50 even 100 to 1. Effectively guaranteeing a massive collapse of our financial system. Essentially guaranteeing the collapse of virtually all insurance, and pension systems through debt default as the final outcome. Unless of course there is a hyperinflationary collapse which I am not anticipating but leave it as a possibility.

So here we are. Kabuki theater. Nothing more. Its all for your distraction to make you believe these "elected" representatives have your interest in mind and are working for change. Is it working? Maybe but meanwhile the hole just seems to be getting deeper. Look for another last minute stick save that would do NOTHING for the debt since there is nothing mathematically that can resolve this, but it will look DRAMATIC and its a distraction.  See ya on the other side and see ya next year. gl

Thursday, December 27, 2012

CLIFF DIVERS

Once again we are facing another crisis when we have been told for five years that we either have no crisis or we have "fixed" the most recent crisis that we didn't have anyway only to have another crisis within a month or two that was once again fixed so that we wouldn't have a crisis that we didn't have. Well I think you get it by now. Its all nonsensensical just as this sentence structure is nonsense.  In spite of being told constantly by our handlers that all is well and in full recovery we seem to be experiencing even more frequent crisis now. In fact, we seem to be receiving a new strategy that PROMOTES the latest crisis on the media just to "resolve" the crisis with some type of bandaid fix at the last moment. If you want to argue like many market participants have over this slow motion collapse that the PTB have the ability to "fix" their banking ponzi then I need only to remind you just how shrill the voices are now in the Fed/Politician cabal.  In case you believe this latest "Fiscal Cliff Crisis" is anything but another "game" for the peeps to be distracted with, then consider this.... Even IF both sides were to give in completely with their proposed spending cuts and their proposed tax increases their would be only a cosmetic effect on the deficits and debt. We would still be adding an enormous amount of debt yearly. That's correct ...Even with the MAXIMUM proposed cuts and revenue increases we would hardly scratch the surface of the problem over the next few years. But if you listen to the drumbeat of impending horror if our elected representatives don't act you would swear their is some type of possible solution for our crisis that we are told doesn't really exist.

It should be clear the level of cognitive dissonance has risen to a point unprecedented in the Modern Age. The reason is simple. The deleveraging of  massively over-leveraged developed nations must be done in such a way that the population is able to slowly absorb the austerity without a full social collapse and resulting chaos. One of the most obvious aspects of this strategy that is NOT being discussed that you need to be aware of is the toll being extracted by the parasitic nature of this money printing strategy on the developing nations as counterfeited paper is exchanged for their precious resources at an ever alarming rate. These developing nations with resources are being plundered at an alarming rate to sustain the developed nation's need for their blood meals. If you are paying close attention then you will notice that one of the ways that many of these resource rich developing nations are starting to protect themselves is by exiting the newly printed fiat  in exchange for gold and other "hard" assets as fast as the fiat comes in now. They don't want to be holding any funny money when the music stops. The game is getting closer to its climax and you have been warned. There will be a major reset. In fact there may be several "reset" events before the end of this currency debasement circus ends.  You may be lucky and trade your way through this but more than likely the investor that understands the precarious nature of our current state will be more successful by holding tight. GL and of course there is no crisis....

Tuesday, December 25, 2012

TOP PREDICTIONS FOR 2013

Time for all pundits to make their longshots but this is the big league so why not REALLY shake it up a little.

1. Bernanke announces his resignation amid a cacophony of anti-Fed protest.

2.Japan pops a cork and its JGB spread begins to explode as China slowly strangles its export recovery/Yen weakening with a continued anti Japan nationalism. Somethings are never forgiven nor forgotten and Nanking was just one of several.

3. A schism within the Military industrial complex widens between elements of the Pentagon and the CIA. As internal tensions build they begin to erupt publicly through their political appendages into a full blown crisis.

4. Scandle hits the Whitehouse early in the year as a retaliation from the Military divisions developing in the DOD. Of course denial is followed by purges within the Department of Defense.

5. Iraq begins to devolve into all out civil war and the spike in oil prices begins to destabilize the fragile recovery.

6. Russia and China finally tell the U.S. they will not allow a first strike at Iran even with conventional only bombing of "hard" targets.

7. Syria's conflict is resolved with the establishment of a large Russian troop presence along the Turkish border. Israel prostests the movement of Russian new Ground to air missile defense systems along Syria's southern border. Then  China sends a naval Cruiser into Syrian waters as the crisis escalates by the end of the year.

8. Saudi Arabia begins show serious signs of political deterioration by mid-year as the "Arab spring" spreads to the "real prize".  Many members of the House of Saud begin to quietly relocate to bug-out countries carrying their gold with them. Several members are detained and their gold is confiscated.

9. Germany begins to feel internal pressure politically to "bring their gold home" and Angela Merkel is forced to admit that it will take "years" to "recover" their gold. Calls for her resignation begin to escalate from the usually "stayed" German pols.

10. Finally.......gold and silver miners show an early surge in the first half of the year with impressive gains only to be met with another hard correction. This time the correction is only a .50 fib correction in a month but it manages to crush the weak hands so the "true power" can finish its accumulation for the final rise to glory.

There ya go peeps. enjoy the game. its gonna be a long boring week....but next week we're gonna have some real fun in the new year.

Sunday, December 23, 2012

GRAVITY...NATURE'S LAW

Gravity....aint it a bitch!
Assuming that gravity still is nature's law then one can also assume that defying gravity is a delusion of some very powerful Central Bankers. The collision of reality and the current fiscal pathway of monetization will ultimately create an economic and social explosion of epic proportions. Until then we will maintain an illusory flight path that never has to come down and land. Perpetual motion finally realized in an "economic sense" that is. Just as the counterintuitive trade in gold since Ben announced QE 3 and 4. Make NO mistake this death defying high wire act is just that.......an act. As discussed previously there is a problem that is brewing below all of the smoke and mirrors. Simply put, once you start to fall gravity takes over and the descent accelerates according to nature's law. Ben knows this very well. Never in the history of economics has the world faced a global collapse of this nature. Even the Great Depression did not have the structural, monetary/debt issues the world faces today. Of course many of you are looking at the current situation thinking that just maybe the Central Bankers could pull it off. In some ways, I do too, but its unfortunately not going to happen. CONfidence is ebbing everyday and many of the current machinations are intended to keep th CONfidence meter from pushing the game over the "cliff". After all in economics a fiat/paper system that is literally backed by nothing tangible has ONLY CONfidence holding it up against nature's gravity.

I believe that we are very near an inflection point and it will generate a surprise event that catches many investors by surprise. Levitating the equity market to help retain CONfidence has started to fail badly. Even the CNBS pundits seem perplexed as earnings continue to decline and the market seems to rally against all fundamentals. Gloom continues in the PM and PM equity market which gives me some hope the beatdown is nearing an end but it has little effect on my strategy of just holding here.

Of course we can descend further in the PM prices since paper is still controlled by the markets.....but they don't control the bullion and therein lies their achilles heal. Soon the holiday season will be over and money will be rolling out of last years winners and into the next big sector. Just remember....one day we will wake up on a Monday and everything will change in this trade.....gl all   http://goldswitzerland.com/a-failure-on-comex-silver-alasdair-macleod/

Thursday, December 20, 2012

CRITICAL TIMES

Certainly the beatdown in the PM headline price today was a setback for the retail investors in the paper game, but for those that understand just how broken the system is from a mathematical standpoint it was just another opportunity to buy physical. Just a few short weeks after QE to infinity and we have metal prices just strangled. As Central Bank after Central Bank announce purchases of Gold tonnage we have struggling gold prices. As universal debasement of developed debtor nation's currencies occur we have gold losing value. As we continue to struggle with world economies as the debt super cycle enters into its critical phase one has to ask themselves where IS safety for their wealth. Is it in a "rigged market" with the exodus of millions of investors?  Is it in sovereign bonds that are at historically low rates at the end of a very long bull cycle? Maybe its real estate? They aren't making anymore of it, but many types of real estate has heavy carrying costs. Of course fertile farmland will retain value but its already selling for over 10K/acre in the corn belt, and has to be managed for efficient usage. Virtually every asset class has a counter-party risk that make your decision difficult at best.

I listened to a Kyle Bass interview yesterday (sorry my device tonight won't permit me linking) and I was surprised to hear some of his circuitous logic. He began his interview with a slightly rambling few statements that involved slamming the mathematics of the debt bubble in most of the developed nations and stated that he felt a major was was inevitable. He then drifted into an explanation later that he owned gold but did not view it necessarily as one of his best ideas....and then wandered into a relatively weak defense of his housing and his MBS investments. I began to sense he was more or less talking his book and kept waiting for him to go back to his comments on a major war coming because of the devastating debt conditions, but he ended with a weak argument that things would muddle through after starting out with a declarative "hell is coming" introduction. I think a lot of us are like him...intellectually we feel that "hell is coming" but deep down we're praying we muddle through and trying to position ourselves if we make it through the gauntlet.  So take today AND the last few weeks and just recognize that down the road this is going to look like a blip when nature takes over.

I hope all of you and yours have a VERY HAPPY HOLIDAY....I am on the road and should be home in a few days and back on my main device....gl all

Monday, December 17, 2012

THE UNION

Oh my fine lads if you only knew.....
Throughout the ages the behavior of man remains unchanged. Hatred, bigotry, greed, fear......all emotions that can be elicited from a captive population with relative ease. Control of social moods is well documented throughout history. The Greeks, the Romans, the Nazis, the Communists and on and on. Divide and conquer the populations provide complete command and control for a small elite that guide the populations for their desired purposes. Can these same simple principles be implemented in today's modern digital culture medium? Not only can it be used but it is much more effective today than ever. There are so many more tools at the disposal of the puppetmasters today, not to mention that centuries of refining the techniques have provided a clear path to follow now as world wide control is exerted.

In the Market, every zig and every zag on the charts of the grand casino tell a story. Maybe they appear to be random to many but to the designers of our game they provide a road map of human behavior. Mass behavior is very predictable and the Grand Casino is using centuries of expertise to play the game. The tactics remain the same...to separate the customer from their money by employing emotions such as fear and greed into the game. Fear and greed. So maybe we need to use an emotion to counter those emotions. An emotion that the Casino knows you do not possess...........PATIENCE........unless you really do believe that the current strategy really is going to put us back on a strong, sustainable economic recovery. If you do believe this, then you should sell all PM investments now. gl


Saturday, December 15, 2012

SOMEWHERE OVER THE RAINBOW

Life will be........... oh well I guess the song has its own definition of life. This weekend is probably one of the lower points in the entire decadence of this game. Many pundits are pointing at all of the causes of this horrific shooting of these precious children and missing what I believe is the more obvious root cause. Sure we have guns that can slaughter mass humans with the squeeze of a trigger. We also have 800 military bases in 130 countries around the world. We have publicly stated that we will kill our own citizens without a trial in foreign countries and now here in our own country. We have publicly stated in violation of all laws that we will take our own citizens without a trial and torture them if "necessary" to "protect" ourselves. We have reached a point of violating not only international laws but nature's laws to the point that we are deteriorating into an immorality that is permeating the very fabric of our lives.

I was watching a Charlie Rose interview with the actress that was the agent in the Bin Laden movie opening and was startled to listen to them discuss calmly how a key part of the movie dealt with her watching a prisoner being tortured by her country. They didn't even pause in the interview to discuss the morality of this scene as though it is universally condoned. What happened to us? When did we sink into the abyss. When did we allow evil to walk into our live so blatantly. Are we bereft of feeling any compassion due to our fears of "terror".

I'm sure that we will see a further debate on "assault" weapons and handguns.....but we will not see a debate on why evil is now walking upright among us unimpeded by any moral response. When good men and women that know what is happening remain silent then nature's law will ultimately take over. You may believe that this was a nefarious plot to take away gun rights with another "lone gunman" false flag mass murder, but that is not the point. The point is this is what we have discussed as far back as three years ago on this blog...feel free to go back and read the various posts and comments. This IS the result of a broken society. A failed state sinking into a cesspool of moral conflicts.

This act was the act of evil and all of us are responsible in so many ways for its presence. A deteriorating economy with many young people feeling a true sense of hopelessness facing their future. It has a profound impact on a healthy mind much less a mind tortured by mental illness. We have families broken and dismembered by a lack of parenting, either by choice or financial necessity. Murderous video games occupying the developing minds of our kids hours a day. You won't hear that on the MSM...its big money. We have a broken health care system that has very little impact on the increasing millions of Americans sinking into mental illness. We have a press that refuses to examine ANY of the moral issues that now afflict this nation. We have lost our courage and we have allowed our constitution to be destroyed without a whimper.

If you want to know why those babies are dead you really don't need to go to roundtable investigation of the multitude of possible causes. Stick with what is hitting you in the face everyday and what has been commented on here multiple times.....because that is what nature's law WILL do when we allow evil to walk unchallenged. See you in the casino next week. gl

Wednesday, December 12, 2012

QE ANNOUNCEMENT SLAPS GOLD DOWN

This is what I think of gold
The announcement of massive further QE by Dr. Bernanke resulted in a severe pullback in the more thinly traded Asian Market tonight. Asian gold traders realizing that the printed money tsunami announced by the Fed today would put all gold at risk and dumped a massive number of contracts in a nanosecond in a thinly traded market. Apparently the Asian market is where one needs to get rid of a massive paper position when you want the best price for your gold. These traders apparently believe that dumping the contracts all at once  will  create  the "best" price for their gold contracts.

Spending anymore time than the above sarcasm on the overnight price action serves no useful purpose. If you still have some cash in your accounts then buying any red miners at the open you may have on your shopping list may be a good strategy. I will not be buying since I am fully invested in the miners and could care less at this particular juncture what they do in the short term. Headline price of gold being driven down after the QE announcement is not surprising and will be short-lived most likely. The price action in miners today and recently hints strongly that real buying has begun. I have tried to help you expect the volatility and counter-intuitive moves in PM equities and I will reiterate that more volatility is ahead.

These are desperate times for the game so be aware of the pitfalls of leveraged trading. If you cannot afford to trade in this market then get into physical now....otherwise strap in......this flight is going to get bumpy. Remember they don't want YOU in this trade and they will try over and over to shake you out. gl


Tuesday, December 11, 2012

BEATDOWN

Not surprising for metals traders to receive a hard shakeout, but it is surprising to those new to this volatile sector to have such counterintuitive trading. We still do not have a short term confirmed buy on the XAU, so if you are a short term trader then to the sidelines you should remain. I will reaffirm my strategy since it will not be altered and that is to hold tight and let this short term shakeout complete itself. Tomorrow's FOMC will not change the longer term metals trade one iota. Of course any announcement and I mean ANY announcement may be used as a shakeout again so please stop wringing your hands and relax. This is the game in this sector and whether you are a hedge or a retail trader the effect is the same. Emotion is your enemy and it is used to control the money flow by the market masters. They own you so you had better understand the long term trend and be able to take your pain. If you are able to see through your fear then your principle emotion should be gratefulness for the gift you have been given. As stated before but worth repeating you have been given the time to accumulate physical metal. If you didn't then I can only tell you that time is running out on you and you really need to ask yourself why you are even reading this sentence. Turn the computer off and get back to something that makes better utilization of your time.

I do know there are some veteran traders that read this blog, but there are many more not accustomed to being in this type of market. Many have not read the warnings of participants on this blog telling you the risk this market poses for you. This is going to be one of the most treacherous times to be a player in this game and more than likely many of us will be stripped bare in the paper market. You were just allowed to enjoy three years of a reprieve after a global financial collapse. A simple analogy is to look at waking up and finding yourself broke and in debt of over a million dollars with a 20K/year job. Rather than declare bankruptcy and take your medicine you are handed an additional debt of 200K and live like a king for three more years until now and declare that things "really aren't that bad". If you are in the camp of sheep that are questioning what your lying eyes are telling you then of course its a waste of time for you to read further and you probably have little really prepared for what lies ahead.  No one can really help you if you fall into that category. Unfortunately some of you do.

Stay positive with the people close to you and try to contribute positively to life. This is a short game here and as the next few years unfold the real strength of your character will unfold. Take each day as they come now and savor them as if they are your last. If you do this, then you will find many of your activities have little meaning and you will not overlook some of the more meaningful contributions you can make. These contributions involve others.....not ourselves.

Wasn't that AUMN a monster today? I wonder which miner they'll rotate into next? You know exactly what I am referring to my short friends. GL

Sunday, December 9, 2012

THEY SAY YOU'RE A MAN OF VISION!

No one knows how much time is left
One of the most poignant endings to a movie was the final segment of Lonesome Dove. Art imitates life so very often and viewing that clip gives one an insight into the current state of affairs of the participants in this game of life.So many universal truths were incorporated into that movie...."just a western". Individualism vs overwhelming odds and the constant battle with evil, ever a part of daily living in any century. Most people today have given up on the struggle and have taken what they believe to be the path of least resistance.....zombieland.

 A highly developed World Economic ponzi began to deteriorate in 2007-2009 as many of you can attest to as you watched your market savings and in many cases your homes and businesses go up in flames. In fact, this process began decades earlier as the global economy went through a series of changes in an effort to sustain the system that had brought it to the current level of development. The problem of course was that malinvestment began to insert itself into virtually every turn as the leveraging up (or doubling down) withing the ponzi began to achieve warp speed in the last decade. As Heaven became Hell we began to enter into a stage of evil that occurs in all similar schemes as Wars were invented by the PTB to try and establish an entire takeover of World Economic Control and maintain the engine of profit that has driven the game for centuries. Apathy begot bubbles as criminality exploded at virtually all levels of the Corporatocracy  whilst most peeps huddled under their McMansions praying that the money machine would just continue........and it did.

Once the Central Banks engaged on the initial rounds of printing the dye was cast and pulling out of this strategy was not going to occur without an extraneous event to halt it. No amount of crying from the sidelines warning of an impending rendezvous with destiny was going to influence the Central Banker's plan. You see......this game is predictable.. And yes there are many people with vision that can see the future of these "unprecedented" actions.You read these people everyday and amazingly enough so much of what they say is very uniform and to date very accurate. Of course the timing of a "collapse" may be argued but the exploding debt predicted and the printing predicted and the wars predicted and on and on have all materialized. The form of the collapse still remains debatable, but not for many countries such as Spain, Ireland, Greece, and Italy as they slide into unemployment rates over 20% as the strain of collapse crushes their technocrats placed in charge by the bankers. Keeping order as the contagion spreads will become increasingly paramount to the survival of the bankers.

You are still watching one of the greatest conflicts in your lifetime unfold and everyday is another footnote as the Western Banker elite try to maintain conrol of the system that you were born into and have lived under your entire life.....whether you understood it or not  I am sure that like many here you are tired of the constant MSM propaganda and disinformation and would just like all of this to go away and many times you just want to stick your head in the sand and pretend none of this is really happening. Of course this is a normal response and I cannot blame you... however I think I'll play the game. Life is short for all of us and our choices will ultimately determine the defining fate of us as individuals and our spirit. Therefore do what you truly love.....being with family....or researching markets and economy.....or following global/political shenanigans.....proselytizing to the peeps......trying to help the peeps that need your help! Ask yourself especially during this time of the year....can I make a difference for someone? Then do it. Right now the market game is patience and if you can control emotions the bankers cannot beat you. gl
Addendum. PM equities still severely oversold but NO confirmed buy technically for those short term traders. I am fully  invested here and repeat that at these levels you will get ripped apart Overtrading one of these days but they are concealing their accumulation very well imo. GL

Thursday, December 6, 2012

ITS THE GOLD STUPID!

Let the nonsense play out. Who's selling gold and WHY? Is it the Fed trying to hold down the headline price of gold so it can play out the devaluation/print game to deleverage the hundreds of trillions of debt. Maybe its the Chinese trying to run down the paper price to accumulate more physical in their effort to take over as the new Reserve Currency. Or maybe its a combination of sovereigns aiding the Fed to drive down the paper price and accumulate more physical at the same time. A multitude of combinations may be at play but you cannot ever overlook objective data when it hits you right between the eyes and today strike price hit by the South Koreans tell you the game. Just as the price was receiving its daily beatdown the rumor spread that a large bullion order was being filled in London.


SEOUL, Dec 5 (Reuters) - South Korea's central bank said on
Wednesday it bought 14 tonnes of gold in November using its
foreign reserves in order to spread its portfolio risks, while
releasing data showing total reserves rose after talk of market
intervention.
    The Bank of Korea bought the gold for $780 million, the
fourth purchase in about one-and-a-half years and lifting the
proportion of gold in its total foreign reserves to 1.2 percent
from the previous 0.9 percent, it said in a statement.
    "Gold is a physical, safe asset and allows (the country) to
deal with changes in the international financial environment
more effectively," it said in a statement, without providing
more details on the purchase.
    The Bank of Korea now holds 84.4 tonnes of gold, valued at
$3.76 billion in terms of purchase prices, up nearly six-fold
from 14.4 tonnes before June last year.


Do not let the game get you down. That's the point. Remain patient and realize that time is  on your side. There is no alternative out there now but print. It was embarked upon several  years ago by the Fed and right now until stagflation becomes out of control (and we aren't even close) they WILL print. All the Central Banks know it too. This will put severe pressure  on their own countries as we export our inflation. The headline price of gold IS very        important in this game and they WILL try to maintain control of it as long as they can. gl


Wednesday, December 5, 2012

DEUTSCHE BANK

The terrorists who killed Deutsche Bank CEO Alfred Herrhausen in 1989 in Bad Homburg were professionals. They dressed as construction workers to lay a wire under the pavement of the road along Mr. Herrhausen's usual route to work. They planted a sack of armor-piercing explosives on a parked bicycle by the roadside. An infrared beam shining across the road triggered the explosion just when the armored Mercedes limousine, one of three cars in a convoy, sped by. They took off both legs and he bled to death. So when we see headlines today involving a 12Billion dollar shortfall in losses that weren't reported by this bank one should not be too shocked. After all banking can be an extremely dangerous business. The Red Army terrorist group was the first suspect the "Press" put up to the public with the authorities in hot pursuit of the usual suspect. One may wish to do their own research on the event and it is quite interesting when you find the investigative reporting that looked beyond the "usual suspect". Herrhausen was more interested in proper banking than creating mountains of debt from the printing press and East Germany was about to be dropped on the lap of West Germany to be "incorporated" into the West and Herrhausen was trying to do it in a way that didn't overburden the German people with immediate debt. It didn't work out for him too well. Now the same bank is wrestling with the mountain of debt created by perpetual debt creation and for reasons unknown the PTB have brought this story to the fore. Enjoy the fireworks. As Red likes to say it doesn't end here. These are indeed strange times for many people to experience. Fortunately for you if you understand the game then you know that the neo-keneysians have given you a gift that many do not appreciate. They have bought you over a YEAR to accumulate gold and silver (especially silver) at very good prices. I know readers of this blog that agree with the analysis of the corrupt system and manipulation but have not bought one ounce of gold or silver. They even have cash to do so. But they believe that the "system" will allow them an exit in time. Maybe it will. Unfortunately I don't have that same luxury of belief. I have readers that have made it very clear to me that they will sell their positions in the miners as soon as they turn green. I wondered to myself what in God's name would you then invest in.....CASH?? Bonds?? CDs??  You have had your chance to accumulate. Now EVERYONE OF US should thank them for that time and that gift. GL to you.


Tuesday, December 4, 2012

WIZARDS?

As hubris grows in a society out of control, many lose hope that any credible solution can be achieved without great sacrifice to the populace. Each of us individually will have to arrive at our own conclusion, but I want to share a personal story on what the country is up against with our leaders in the corporate world.

The wizard of nothing
Seven years ago a corporation that my company worked for had a CEO that essentially signed my paycheck. The CEO had been at this company for about 12 years and over that time I had crossed his path a number of times but I did not have a close personal relationship with him. I enjoyed dealing with him "from a distance"and he seemed to like me. I felt him to be a man of limited intellect, but felt he was relatively honest at least as far as a CEO could be. Even though he was directly responsible for my earnings at that time, I was an independent contractor with a group of partners and maintained an ever so slight degree of separation from his decisions.

One day he made a decision that placed many professionals that worked under the umbrella of his corporation in jeopardy...essentially removing their independence and allowing a very invasive move into a virtual tyrannical control. I was surprised but not shocked upon receiving the edict from him that required our signatures (surrender of our privacy). I realized that his "policy" would not stand up in court, but the battle would be long and expensive. I maintained that one should never underestimate an individual in a position of power with limited intellect. They are sometimes your worst nightmare to deal with since they tend to be stubborn and when confronted with an extraordinarily terrible poker hand will go "all in".....which is EXACTLY what he did in this particular "policy".

The board of directors were puppets of his and in many respects were "controlled" with their own "relationships" that were profitable. It developed into a "Mexican Standoff" with the showdown at high noon in the OK corral. I knew that all the parties were going to be bloodied and possibly destroyed if the appointed showdown took place so I arranged a private meeting  with the CEO and two other individuals to serve principally as witnesses. The CEO tried to conceal his terror facing him in 24 hours when he would step into his own Waterloo, but rather than play games with him, I laid as many cards out as possible and asked him directly why he thought his strategy would be productive. As he answered and the dialogue began to be exchanged more easily it became apparent that he was terrified and knew he had blundered into his demise. He began opening up even more into his decision making and a very telling part of his thought process was disclosed. He wanted to know why my Partners had all taken a position against his "Policy" when all the other "independent" contractors had "supported" his policy. We had no financial interest in opposing his oppressive "policy". In fact we had everything to lose opposing him.  He even described what all of the financial interests were with the "other" players and how he understood their positions and votes. When I responded to his query with the answer, "it was purely the principle of right and wrong and what was best for the greater good"......his jaw dropped and he appeared baffled. He pondered and wrestled with that answer for what seemed like an eternity and you had the sense he NEVER believed the answer....yet there was NO other answer that he could muster. BUT he could not accept that in his world anyone had principles. THAT was his limited world. He did pull the "policy", and the war was canceled....but he never "learned" from his "near death"  experience. Surviving that near disaster made him eventually more arrogant and several years later a series of blunders made him the laughing stock of CEOs. THAT is the world of our corporate structure. Maybe not every CEO is as cognitively simple as he was and maybe not all corporations are corrupt. But this is at the heart of where our world is today. We are left only with what is "your selfish angle" or "what is in it for me" or "I've got mine now you get yours". It works only if there is confidence not CONfidence.  There is no trust on either side of the "game" now, and at its very heart there is nothing but darkness. gl players

Sunday, December 2, 2012

DECEPTION

If you control the World's fiat system then you must also manage the headline price of Precious Metals ie Gold. If you plan on playing on this stage then you must not only manage your own sovereign gold but you must manage to gather more if you want to move up a step on your competition. If you plan on moving up more than a step then you have to gather a Big pile of the metal to hold yourself together when the real power decides enough is enough and tries to shake you out. I believe we are nearing that stage. Instead of the cat and mouse game that has existed for the past several years with the sovereign entities jockeying for position, it appears that the we are entering a more dangerous developing for separating the pretenders from real economic powers. Instead of transparency and confidence which are necessary for true growth and investment, we are going to see increasing opacity. This will destabilize most of the developing economies to the point that social unrest boils over into regional and international conflicts as nationalism is needed to stabilize political administrations in the offending countries. Simply put, they will call upon war and conflict to cover up their sins.

You may find this all a bit hard to swallow but not really when you think about it. Infrastructure and malinvestment have become so intertwined that one will unwind the other in a fatal feedback loop that leaves conflict as the path of least resistance. Look at Europe as a leader in this flawed model. The emergence of fascism and nazi/ultranationalistic parties are springing up again in many of the countries as the PTB push the path of austerity even harder on the Euroslaves. You now hear open talk in many Euro countries of secession   (see Flanders, Spain, Scotland, Catalonia etc.) Even in the U.S.A. there are petitions flying for separating. This will not be tolerated without conflict. The deflationary phase of a 120 year supercycle will not be easy for those that accepted the promises of retirement at age 55 with COLA increases for the next 30 years. Add health care on top of that with a declining demographic and you have a cauldron of boiling anger building for the next generations footing this bill. Again.... there will be more than just pain. We are at this stage now and this is way beyond govs and money changers. Restoring CONfidence is and has been the game. Without it you do not have a paper system. We're losing that battle rapidly and right now the behind the scenes players are jockeying for supremacy. I don't know how long this period of jockeying can last but I know you have to take advantage of the gift. Accumulate the metals and what you can for more vital needs.  I am counting on this not expanding to all out global war and that we go through a tough patch with most of us keeping our heads attached. You may have your bug out place picked but I don't have any "perfect" place I would pick. Just look at the Belize mess with Macafee. At one time I even had that as a country recommended to me as a refuge in the coming storm. Look at what you've got and work to improve what you can to go through this patch. Strengthen your own resolve.... you cannot fix the ills wrought on the world by the power that designed this maelstrom. Nature will take care of that. The game for us is physical metal and to some degree its the same for them. Play their game. Accumulate. As an aside before I leave you did any of you realize that the recent spate of Generals being dismissed were hung on their own petards through the abrogation of our privacy laws. All of their private correspondences were stored in databases just like ours are and when the time came......poof.....they were gone....gl