Sunday, November 24, 2013

AND THEN THE WINDOW CLOSED

During the last major World Depression a juggling act by the Central Bankers and the disparate sovereign interests resulted eventually in the power shifting within a sovereign to an ideology and leader bent on his own ideas of power consolidation outside the realm of the bankers. One can argue how far he was aided by the bankers before he went off the reservation but like most conspiracy theories it would not be provable to the masses and serves little purpose to this brief essay. These same risks today are somewhat different and revolve more around the struggle between the old dominant developed world and the developing world. These two entities are driven less by ideologies (communism, socialism, capitalism etc.) but more by the desire of the East to escape domination by the Western bankers. 

Keeping this post from becoming too abstract and wandering into the fog of boredom let's cut to the chase. CONtrol and domination to prevent another "Third Reich" is always a major concern for the elites. Driving various chess pieces into a global conflagration is however a delicate balance they DO intend to play. So never confuse "command and control" as a road to "totalitarian peace". Peace does not produce revenue and debt. Conflict produces debt and those that control debt "control everything". 

Its very obvious that the East and its "developing nations" want to have independence from the West's domination, and are working their way steadily towards that goal. This effort hinges on mitigating the "DOLLAR". It is a fiat currency and many claim it is backed by NOTHING. That is not correct. It is backed by the might of the military. SO NEVER MAKE THAT MISTAKE. If it were not backed by the military it would already be a historic footnote and we would be riding our bicycles to the grocery store with roving check points. You must back your currency with something to maintain CONfidence. Its fairly simple. THIS is why most central banks outside of the Western sphere of central banks are buying gold bullion and are even accelerating their buying now even as paper prices (through Western Bank derivatives) are crushed. They know the end game. Eventually, and one can never know for certain what will happen between now and then, but at some point the physical gold that is being made available to the east will evaporate. Therein lies the endpoint for price suppression. 

My hope, (not my belief) is this transition occurs peacefully and with economic conditions imposed that don't result in collapse of the financial and social structure of the World. The only way this happens would be if the grand chess game has determined that outcome already. There will be destruction of the dollar. There will be currencies backed by "something". What that "something" will be remains to be seen. Developing countries and the East are buying gold in anticipation of this transition.....gl







135 comments:

  1. And if gold is the "ancient relic" or useless, why are the sanctions on gold being partially lifted in Iran? Hmmm.

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    Replies
    1. Yes. Always be careful in this type of "manipulated" trade. Its very easy to get caught in the "noise", particularly when there has been a dramatic price pullback that is counter-intuitive. Conditioning and emotions are time honored methods for the "game".

      Delete
  2. who said they couldn't do it here

    http://www.zerohedge.com/news/2013-11-24/banks-warn-fed-they-may-have-start-charging-depositors

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  3. Hehehehe Boy this will stir up a chit storm!

    I guess they can't make it on the vig off credit/debit cards & ebt cards anymore...

    Moar fee's please!

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    Replies
    1. it seems to be accelerating so we probably aren't more than 6 months from breaking hard

      Delete
    2. There's Moar......

      http://www.cnbc.com/id/101222045


      Talk of Capital Controls that is......

      Delete
  4. Pento on KWN today

    “This is a quote from Ben Bernanke, ‘The Federal Reserve’s long and large scale purchases have significantly lowered long-term Treasury yields.’ Did you get that? The Federal Reserve’s large scale purchases, their QE program, by the way they are on QE4 right now since they announced this program in March of 2009, they have ‘significantly,’ not my words, his words, ‘significantly lowered long-term Treasury yields.’

    And now they are trying to propagandize, lie, obfuscate, and confuse the market into telling you you are so stupid not to remember what they’ve been telling you for 5-years: That their manipulation of interest rates and counterfeiting and printing money hasn’t worked. But it has. It has lowered interest rates on the long-end of the yield curve.

    And now they are threatening to stop doing it because they (feel) can’t do it any longer. They can’t stand the fact that they have counterfeited $4 trillion worth of credit and money. It hurts them (their credibility). They really feel uncomfortable doing it, but they can’t stop. They’re trapped.

    They are trying to get out of QE, but the exit door is blocked by soaring Treasury yields, (what will be) plummeting equity prices, another real estate crisis, skyrocketing US sovereign debt service payments, massive currency disruptions, and a deflationary depression. That’s what lies on the other side of year, after year, after year of money printing, credit creation, counterfeiting, and interest rate manipulation.

    There is no exit. There is no easy exit, and that’s why they are delaying the tapering, Eric. Do you ever wonder why they didn’t do it in September, when the market was ready for it? It’s because the 10-Year Note went from 1.5% to (roughly) 3% in just a few weeks.

    If the Fed goes ahead and tapers, interest rates go to 4% on the 10-Year (Note), and all of the things I just mentioned occur, and we’re back into a deflationary depression. I believe that would cause them to institute a permanent state of QE. That’s where we’re headed, Eric. That’s what 2014 has in store for you.”

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    Replies
    1. Wait until the 10-year is @ 4%+ while the central bank is lending $85 bn/ month.

      ... Like it was a few months ago.

      Diminished returns is the reason for tapering; QE is also irrelevant. It never did amount to much b/c central banks cannot make unsecured loans = new money.

      It really isn't likely that the Fed can lend much more than they have so far as 'good' collateral is in short supply (collateral in 3d party hands). The Treasury can 'create' more collateral but the intermediaries are not enriched by the transfer process as spreads are narrow ... a bit more narrowing = hazard of inverted yield curve and recession warning (trigger). What drives the world economy right now is dollar-yen carry trades.

      The distance between blow-off bubble and chaotic deleveraging has never been closer.

      Delete
  5. Interesting chart: http://www.swingcycles.blogspot.com/

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  6. critical interview to listen too.....carefully

    http://kingworldnews.com/kingworldnews/Broadcast/Entries/2013/11/24_Michael_Pento.html

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  7. Let's hear some thoughts and discussion on something else the Chinese have been buying: bitcoin. I saw a Max Kaiser clip about this, maybe on this blog, maybe not, but I don't recall seeing much about it here. Not as much attention paid to it in the US that I'm aware of, and certainly Jim Rogers confirms this in his clip above, but the concept is right up the alley of the discussions here, and the implications are vast. Here is a currency not issued by any government, like precious metals, cannot be printed, and also like precious metals, it preogressively becomes harder it becomes to mine. Plus, there is a finite and defined maximum. Anybody want to weigh in?

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    Replies
    1. watch the video from brotherjohn above and his opinion on bitcoin. My bottom line on digital money is it will be an ongoing issue for the PTB to deal with but if it becomes any serious threat to them then they will easily destroy it. Contrary to there claim that their code cannot be broken it CAN and if by some miracle the cannot then it will be "regulated" and destroyed ONE way or another. The Chinese love to gamble and bitcoin can make a lot of money for the lucky gambler. Max keiser vid was posted on previous post

      Delete
  8. Weird Stuff abounds today.......

    http://www.zerohedge.com/news/2013-11-25/meanwhile-thailand

    http://www.zerohedge.com/news/2013-11-25/gold-hammering-leads-another-overnight-gold-market-halt

    http://www.telegraph.co.uk/news/worldnews/middleeast/iran/10472538/Iran-nuclear-deal-Saudi-Arabia-warns-it-will-strike-out-on-its-own.html

    http://www.maxkeiser.com/2013/11/iran-will-be-barred-from-accepting-gold-as-payment-for-oil/#Y2vpI0IMvcFXXqW6.99

    Hmmmmm.......

    http://www.zerohedge.com/news/2013-11-25/goldman-reveals-its-first-two-top-trades-2014-says-buy-sp-2250-target-short-aud

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    Replies
    1. blue light special in aisle five........heheheheh.......I keep looking for that nice silver capitulation beatdown and its just an incremental bleed ........ so I'll just keep accumulating

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  9. Nahhhhhhh........its a RECOVERY.....all is good

    http://www.zerohedge.com/news/2013-11-25/pending-home-sales-collapse-fastest-pace-april-2011-drop-december-2012-levels

    ReplyDelete
    Replies
    1. maybe all those underemployed minimum wage zombies cant afford houses even on ZERO interests

      Delete
    2. No more zero down mortgages and minimum wage zombies don't have the 20% down (and prolly never will) so they continue to pay too much for rent.

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    3. Seems even the Investors are getting into the act.....

      Exit Stage Left.....

      http://www.zerohedge.com/news/2013-11-26/realtytrac-institutional-investor-housing-purchases-plummet-nationwide

      Delete
  10. someone sees what i see too and they know its "horseshit"

    http://www.zerohedge.com/news/2013-11-25/beware-head-fake-taper-markets-have-now-discounted-their-own-dishonesty

    ReplyDelete
  11. http://www.zerohedge.com/news/2013-11-25/bats-breaks-yet-again

    ReplyDelete
  12. Bottom finally? I just feel like the shorts are FAR too comfortable right now. It's too obvious that gold has downside, they won't make it that easy. Could just be a temp pop but we'll see.

    ReplyDelete
    Replies
    1. dunno......maybe it will wake me up

      Delete
    2. oh my my my.........what have we here???

      Delete
  13. http://conservativeangle.com/disturbing-the-complete-list-of-purged-military-high-officers-under-obama/

    ReplyDelete
  14. http://www.wnd.com/2013/11/u-s-generals-now-take-action-to-watch-obama/

    ReplyDelete
  15. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/25_Historic_Moves_In_Major_Markets_Is_Shocking_The_World.html

    ReplyDelete
  16. Buds World

    http://www.zerohedge.com/news/2013-11-25/cant-be-good

    ReplyDelete
  17. There was some rather large trades eod on GDX. Hmmm...

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  18. Hmmm,

    Bud's world: long stock market, make money (4+ years and counting)
    Doomer world: short or neutral stock market, miners, metals, lose money

    I kind of like my world.

    ReplyDelete
    Replies
    1. yeh bud...... "long and strong" and 50% cash........not a strong endorsement of the ponzi......but it indicates you're not as stupid as you portray yourself........;-)

      Delete
    2. make sure you don't own physical.......that fiat is what you need to accumulate.

      Delete
  19. This is what happens when you believe in BS......

    http://www.breitbart.com/Big-Government/2013/11/24/Poor-Americans-Not-Getting-Obamacare-Subsidies-Admin-Promised

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  20. the spring is getting more compressed.......the boing will be quite impressive

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  21. and it continues to build

    http://blogdogcicle.blogspot.com/2013/11/russias-lower-house-of-parliament.html

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  22. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/26_Harsh_Changes_Are_Coming_For_Global_Markets_%26_Mankind.html

    ReplyDelete
    Replies
    1. Come on Man,
      All this Doom & Gloom from KWN, ya don't need to go to such extreme's to illustrate just how bad things are going to get.......

      http://www.foxnews.com/politics/2013/11/26/evidence-shows-obama-administration-predicted-tens-millions-would-lose-plans/

      U'mmmm that should fk things up a tad, ya think?

      Delete
    2. Oh and if you enjoy a Smoke every now and again.

      http://www.foxnews.com/politics/2013/11/25/obamacare-policies-slam-smokers-could-backfire/

      I can see it now,

      Question: Do you Smoke?

      Answer: No

      Hehehehehhe What are they going to do, blood test the entire Country??

      Total Fools

      Delete
  23. Silver remains a tiny market with all above ground refined silver in the world at roughly 1 billion ounces for a total valuation of less than $20 billion at today’s prices.

    Therefore, all the silver in the world is worth less than the total market capitalisation of one tech darling, Twitter. It is worth less than the total market capitalisation of Tesla.

    All the investment grade silver in the world, is worth roughly what the Federal Reserve prints in one week - $19.6 billion
    SGT report

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  24. Have no doubt.... when Washington’s global dominion finally ends, there will be painful daily reminders of what such a loss of power means for Americans in every walk of life.

    http://b4in.info/jPCO http://beforeitsnews.com/alternative/2013/11/the-rise-and-fall-of-the-american-empire-where-it-all-started-and-how-it-ends-video-2832996.html?utm_campaign=&utm_medium=facebook-share&utm_term=http%3A%2F%2Fb4in.info%2FjPCO&utm_content=awesm-publisher&utm_source=https%3A%2F%2Fwww.facebook.com%2F

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    Replies
    1. https://www.youtube.com/watch?v=aZYB_IOqeOE

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    2. halfway through TB.....will pass it on to my history expert

      Delete
  25. Phil Davis wrote today about shorting retail. He feels holiday sales will be down. Gas prices have not fallen enough to boost Christmas sales. Also, there was a newspaper article in one of the local newspapers here about the scam that Black Friday has become. So, maybe Americans are figuring out that Black Friday prices are really not better than regular sales prices. It is all hype.

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  26. You might be on to something there Doc,

    "The silliness of it all is that the original price from which the discount is computed is often specious to begin with," sums up the seemingly obvious "retail theater" that plays out every Black Friday in mall after mall across America. As the WSJ reports, the common assumption is that retailers stock up on goods and then mark down the ones that don't sell, taking a hit to their profits. But that isn't typically how it plays out. Instead, big retailers work backward with their suppliers to set starting prices that, after all the markdowns, will yield the profit margins they want. Buyers don't seem to mind. What they are after, especially in such a lackluster economy, is the feeling they got a deal, "I don't even get excited unless its 40% off." The manufactured nature of most discounts raises questions about the wisdom of standing in line for the promotional frenzy that kicks off the holiday shopping season. It also explains how retailers have been able to ramp up the bargains without giving away the store - until now."

    http://www.zerohedge.com/news/2013-11-26/mega-black-friday-sale-its-just-end-megapre-black-friday-mark

    ReplyDelete
  27. http://www.zerohedge.com/news/2013-11-26/something-wrong-chart-us-jewerly-imports-drop-most-record

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  28. Strange action in the options pits I just caught. DEC $45 puts on DUST have barely gone down today (-2%) despite DUST going up almost 7%. Very weird.

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  29. This Bud is for you: U.S. banks earned less in the July-September quarter than they did a year earlier, marking their first year-over-year profit decline since the spring of 2009 when the country was still mired in the Great Recession.

    Recovery in high gear.

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  30. http://usnews.nbcnews.com/_news/2013/11/26/21628974-lara-logan-placed-on-leave-over-discredited-60-minutes-report?lite

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  31. Inlet, I see that you are back to your old tricks, misinforming the readership of this blog by providing a dubious statement, without any context or source. So, let me clean up your mess.

    First, one of several sources:

    http://www.montereyherald.com/business/ci_24605518/u-s-bank-earnings-decline-third-quarter

    Now, let's examine some relevant details:

    "The Federal Deposit Insurance Corp. said Tuesday that the banking industry earned $36 billion in the third quarter, down $1.5 billion or 3.9 percent from the third quarter of 2012.

    The FDIC said the earnings decline came primarily from a $4 billion increase in litigation expenses at a single institution.

    The FDIC did not name the institution, but the JPMorgan Chase & Co. reached a $4.5 billion settlement with investors earlier this month which was the latest in a series of legal settlements for the nation's largest bank over JPMorgan's sales of mortgage-backed securities in the year preceding the 2008 financial crisis. "

    So, really, it was one bank and its $4.5 billion settlement that was responsible for this decline, along with some lower revenue from reduced mortgage activity and lower asset sales.

    Furthermore:

    "Half of the nation's 6,891 insured banking institutions had year-over-year growth in earnings while half reported declines, the FDIC said in its quarterly report on the health of the industry.

    "While industry revenue was lower, due in large part to a reduction in mortgage originations caused by higher interest rates, today's report shows further progress in the gradual recovery of the banking industry," FDIC Chairman Martin Gruenberg told reporters at a news conference."

    So, in other words, it's what I've been saying in this blog for months. We're muddling along, there's both good and bad news to be found. But it's hardly the sky-is-falling narrative you're trying portray, not even close. I recommend you spend the rest of this week thinking about
    the things you are thankful for, instead of all this bitterness and hate.

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    Replies
    1. wow bud.....that's some serious bank love ya got goin' there.......maybe I had you pegged wrong....you may be a banker butt boy after all.....I know there are bankers that read this thread, but at least they don't pretend the games not a total scam.

      Delete
  32. Maybe you ought to pay closer attention to details: JPMorgan Chase & Co. reached a $4.5 billion settlement with investors earlier this month.... That would make the payment in the 4th qtr (not yet reported). The relevant fact is - bank earnings declined YOY in the 3rd qtr - and since banks normally represent around 20% of reported earnings this is worth note.

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  33. http://www.bloomberg.com/news/2013-11-26/bank-earnings-fell-in-third-quarter-on-legal-costs-fdic-says.html

    "JPMorgan, the biggest U.S. bank by assets, took a $7.2 billion charge in the third quarter to cover the cost of mounting litigation and regulatory probes. The New York-based bank agreed this month to a record $13 billion settlement to end government investigations of its mortgage-bond sales."

    Don't waste my time with this nonsense again.

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  34. Where is the cheese for Bud - he's got the whine. Hehehe. The 4th qtr is gonna be worse for the banks,

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    Replies
    1. Bud's has some "seasonal" issues goin'.........but he'll be happier when they push gold below 1000 and he can start buyin'......;-)...come to think of it I will be thrilled......because I really will be buyin' ....my guess is bud will only be watchin'

      Delete
  35. This is a technology that if in the wrong hands could be rather troublesome......


    http://www.popsci.com/article/science/how-scientists-are-learning-shape-our-memory?dom=PSC&loc=slider&lnk=1&con=spotless-minds

    Besides I used to do this very same thing by just drinking a fifth of Scotch at one sitting.. Hehehehe

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  36. bud, needs a friend, or he might not play anymore so.....i'm his side for this game of dodge ball at least. that being said when i left the house, the tinfoil hat i left on the kitchen table probably looked just almost identical to the one sitting on kli's head right now. yes jpm had a horrific charge. staggering really if you go back a few years in business and start talking about numbers with a bbbbb....b. we bandy the b word around like its nothing (i know i know printing, expanding debt.. i don't disagree) but to think a going concern of any kind could absorb a multi billion dollar loss is staggering, regardless. however, my take on jpm will probably excite bud and incite the rest:

    gov, "hi jamie we really, really want you to buy this bag of shit (bear stearns) because we are afraid if it breaks, we will have a reallllll mess."

    jamie, "no thank you"

    gov, "no. we really, really, really want you to have this, at a great price i mean look at it...."

    jamie, "umm, i have, i have other bags, i don't need this one"

    gov, "ok, ok, ok, we get it what if we sell you this bag of shit but give several others bags to put around it....just in case" governmenrt implied guarantees they were given look it up.

    jamie, "i don't know. it still looks like a really big, huge bag of shit....."

    gov, "ohh come on it'll be patriotic and now you have guarantees which will appease your shareholders but dont feel bad if we make you look like a great big dick for insisting on them even though you didn't come looking for this shit bag in the first place, oh and watch your back....did i sat that out loud? no. thank god! inner monologue....

    jamie, "fine"

    fast forward @ 7 years........

    gov, "hi jamie, i'm the government. i need to look into some really bad deals you made in your bearstearns arm of your concern. they were reallllly bad...... and you are really in trouble. so much so we are going to sue!!!!!! your company. have a nice day"

    jamie, "wait, are you referring to the absolute bag of shit you begged me to take from you several years ago?"

    gov, "yes"

    jamie, "and you want to sue me for things that were in the bag of shit that you begged me to take and the same bag that you gave me more bags to put around because you knew it was completely f*****"

    gov, "yep"

    jamie, "so when i told you i had my own bags, i was working on cleaning them up, and you brought me this bag and begged me to take it, now, you want to litigate for all the bags i have even, the great big huge bag you brought me?"

    gov, "um yes, is there a problem"....

    i don't have links at my disposal, but a lot of the items jpm is settling for fall under the bear stearns mastiff. jpm did a lot of bad shit on their own, i concede, however, this settlement that has been reached is theft. a lot of what they are settling is the bag of shit they were begged to take. same thing with bac and countrywide. continued

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  37. i don't for a second discount the greed and self interest that has run rampant around the globe the past decade or two, or uhhh forever, "there is nothing new under the sun". however, i'm a little closer to buds view of the banks and the ebt crowd on abuse of the system. are there bad bankers, yes, are there bad spectors pulling strings, yes, but at the end of the day an asshole, is an asshole. i have grown weary of the constant onslaught of the PTB and the bankers and the string pullers because they have one world domination in their sights......but the people using an ebt card are inappropriately are just trying to "get by". sorry i call bull shit. do you think for one second that a person that didn't think twice about fucking the system would be any more conscientious if they came into a position of power or influence.????? what i mean is you can't defend moral obfuscation at one of the spectrum (ebt) and vilify it at the other end (jpm). i just caught the dodge ball, bud, you are back in..

    cheers,
    g

    ReplyDelete
  38. kli, what is your real call on silver and gold. i have been accumulating for over ten years, my first buy was @ 5.00 at the suggestion of my grandfather (smart man). i know you love to bust buds balls on sub 1k gold and said you were nibbling at 19.. but i do value your opinion. i want to make another buy in silver and i have watched it dance the fence at 20... for a while. do you say wait or pull trigger. honest question.

    cheers,

    g

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    Replies
    1. very simple galt......I DONT KNOW.. Its purely a speculative paper game now controlled to maintain the illusion there is no stagflation.....and to keep gold and silver from being viewed as real money. THAT we know and it is indisputable. This was all predicted by some very smart people Joe Red Rickards Rogers etc......and virtually all of them are stilll VERY bullish. So one should accumulate in this range...Bud may get his sub 1000 buy...... it is possible.....I do NOT believe it will happen due to the very tight physical conditions but it will set off some tremendous transfer of physical to the East. THEY can print money too and they have lots of dollars reserves.....Silver is the wild card.....it just takes a butterfly on the other side of the world to create a storm in this metal that will make all storms look mild by comparison. So wait for sub 1000 if you wish but I have plenty of fiat I am putting into it now and have been all year.....mostly silver

      Delete
  39. oh, an inlet, yes 7.2b charge but they had provisions set aside. just like loan loss. so the charge they took in the third quarter being smaller than what was published in "the paper" does not necissarily mean it will effect business going forward in the 4th quarter. i hate quarter by quarter accounting because i believer the value of any business big or small is long term, however, if you are going to blast some body for their accounting. understand accounting.

    cheers,
    g

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    Replies
    1. the lawsuits and penalties just keep coming at BAC, JP, Citi, Wells and others and they just keep adding to reserves. The AIG suit against banks is just the tip of the iceberg of civil suits from non government entities. Anyone who contends that setting aside $s in reserves doesn't affect earnings going forward needs to take some accounting courses.

      I posted a fact I copied from an article and Bud goes on an epic rant. People don't normally want to read a book and if they do then they will "google" the info. Bud is an irrational A-hole and what I posted was a TRUE fact.

      Delete
  40. Keep posting drivel Inlet, it's actually quite fun taking apart your arguments with facts.

    Like I said, when you're off your medications, I guess anything goes, including, but not limited to, putting out false information. Thankfully, it's not hard to get the truth with a little fact checking.

    No worries Kli, not only is sub $1000 gold coming, it will probably stay there for years before rebounding again.

    ReplyDelete
  41. thats cold bud, fine to bag on inlet (the sexual tension is palatable) not even a shout out to someone that has your back? i mean i'm new here.

    cheers

    g

    ReplyDelete
  42. i really am new posting here. i'm not a troll either way.

    cheers,

    g

    ReplyDelete
  43. galt,

    Just to note, I have been supportive of Bud's view that the markets will continue to work themselves higher. I feel though a day of reckoning is coming (2016-2020??). So, perhaps Bud is up to 2 friends now. Please keep posting.

    ReplyDelete
  44. If you listen to the videos you will see that several of them including KWN are posting the same on the market. In fact EVERYONE is posting meltups........I have been through these situations before and they are a fools game. Red is giving you the best advice and its STAY OUT OF the paper market. IF you have chosen to stay in then by all means make your decisions. And Bud's counter view is always welcome. So go for it bud.

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    Replies
    1. I have noticed the same thing, everyone (including the bears) are in the melt up camp. Can't remember from 2000 or 2007 anything like this.

      Delete
  45. btw ALL of you......the real economy (contrary to what bud and CNBS are telling you) collapsed.......and is NOT recovering.....its on life support and they are doing EVERYTHING they can monetarily to keep it breathing. You are welcome to believe otherwise but preparations to take "more than your money" are being made while you enjoy the last of the "bread and circus"......you are welcome to ignore this and I don't blame you. I went through a similar experience in 99 and pre 2008 so negativity to these calls is expected and actually embraced. As usual I would take Bud's scenario ANYTIME over mine. gl

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  46. there are bankers that read this and know what I am going to tell you is true and are welcome to chime in. My "contacts" were privy to money to purchase large amounts of real estate in 2010...... They bought for pennies on the dollar through the Fed/bank back door bailout large estates and luxury second homes. The Fed wanted these kept off the bank's balance sheets. THIS is called malinvestment since it did not go into the usual strong hands but into GS hedge funds instead. There were other hedges buying up large condo developments etc...... this compartmentalized the "problem" and "solution" somewhat but anyone in the industry with half a brain knew the game. Then many of you know the other programs too of keeping the foreclosures OFF BALANCE through a variety of Fed bailouts and secret agreements. So just be prepared......this IS coming back in some form that will be more than just a "drag"

    ReplyDelete
  47. the following post by an ex Treasury secretary from Reagan is why ALL of you should be reviled by what has happened to your country.....and why I take bud to task on the "recovery".....

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/27_Paul_Craig_Roberts_-_The_US_Is_Being_Destroyed.html

    ReplyDelete
  48. kli, thanks for the response on pm, i know timing at these levels is truly a fools game, darn emotions! thanks for the nudge.

    cheers,

    g

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  49. http://www.brotherjohnf.com/archives/246446

    ReplyDelete
  50. I do enjoy these conversations for in some small measure it allows one to see what others may or may not regarding their surroundings.

    Concerning the “Market” and its behavior, it should be apparent to even the most novice investor that it is completely rigged, even if you only get your news from the MSM, that being said the “Market” will continue to defy gravity and logic for as long as they print. Hey if you’re profiting from it all the better for you. I view it as playing musical chairs with 100 people and only one chair….

    The 1%’ers are the only ones that will profit and even some of those are going to get burned…..

    Now If one looks regarding the economy and one does not need to flip too many slates to see there is “No” Recovery, it’s just a mirage, smoke and mirrors and using the term “muddling along” as it relates to the economy is somewhat disingenuous, what would be more appropriate would be “dead men walking”. There is really nothing left and consider what it will be like once we lose “Reserve Currency” status, I for one am not looking forward to that…

    What does truly amaze me is how folks can’t see all that’s in front of “us” and what lies ahead, all it takes is just reading some real news and observing what’s going on around them……

    Posting this reminds me of a conversation with Joe a few years back when I was naively challenging some of his comments regarding “personal awareness” not the exact quote and there were many but it’s pretty close and has stuck with me “It’s always been right in front of you but you chose not to look”.

    I believe that is the case with most folks and there is nothing wrong with approaching life “Glass Half Full” however knowledge and awareness tied with simple action is comforting at least for me.

    Enjoy your Thanksgiving; We all have a lot to be Thankful for!

    ReplyDelete
  51. draw your own conclusion

    http://theeconomiccollapseblog.com/archives/china-is-on-a-debt-binge-and-a-buying-spree-unlike-anything-the-world-has-ever-seen-before

    ReplyDelete
    Replies
    1. Neo-colonialism through debased fiat and debt. The Chinese have taken the lead over the West in printing and acquiring hard assets and real estate globally, the last time this happened was during the reigns of Ghenghis Khan and Kublai Khan. The last years of the Yuan Dynasty were marked by struggle, famine, and bitterness among the populace.

      That is what the Banking Cabals are hoping to achieve by goading China to ever higher levels of printing. The nations with the highest leveraged debt will suffer the most during the Kondratiev Winter Deflation. This will be the most brutal in over 500 years.

      The scary part is all the sovereign players know this and seem to have another real imminent fear that requires the Ponzi to go full retard for a little longer.

      Putting together emergency survival plans for 3 days, weeks, months is about the best you can do, playing with electronic fiat will leave you unprepared when the exhaustion hits.

      Happy Thanksgiving!

      Delete
    2. Red, I find the 500 year reference revealing. Did you know there have been power shifts from west to east and back about every 500 years going back into biblical times (The Khans ascendancy-power-descendancy was about 500 years (East), you can make the case the Roman empire was about 500 years (West), then there is Persia, Egypt, etc. The last 500 year cycle started around 1500 with Spain/England (Europe) ruling the seas (West again). Time for a power shift East (and I believe that may be what we are seeing....

      Delete
  52. Wonder where the molding of the FSA takes place.....

    http://www.weeklystandard.com/blogs/obamacare-event-hands-out-condoms-prizes_769034.html

    Its called conditioning.......

    ReplyDelete
    Replies
    1. "No worries Kli, not only is sub $1000 gold coming, it will probably stay there for years before rebounding again." this quote from bud is also indicative of conditioning that is currently being used in the PM game. Enormous amounts of paper vehicles were created during the last 5 years to aid the old COMEX control mechanism of price. Unfortunately for many peeps that "believed" in the trade without fully understanding the underlying economics, the "paper price" remains powerful in manipulating their views on PMs. This has worked very well for the game in allowing a large amount of physical to be withdrawn from these paper vehicles to extend the headline paper price while covering the delivery of physical to the East......the private Western holdings will never give up their physical gold but in the meantime the game will continue with the nonsense from the buds spews freely.......you have to admire their ability to manipulate the masses.........

      Delete
    2. Not sure if its manipulation as its is projecting into the future the recent past. Most people have seen the steady rise in stocks for the last two years and that becomes the easy forecast for the future. Maybe that is why we see all the "melt up" forecasts; because we are in one now! Same for PMs, easy forecast is more of what has occured over the past 24 months. Maybe these forecasts are correct, but it seems that everyone is just being human, its how we are wired.

      Delete
    3. Let's just look at a "few" things we know for sure.......five big banks admitted rigging LIBOR... Imagine not just the money made but how it confused traders back then (btw it hasn't stopped).....The London PM Fix is an open bid rigging and basically keeps the movement of bullion between the Western Sovereigns to the East intact. One day there are going to be a lot of Western countries wondering HOW they let it happen.....hehehhehe........how about recent confessions that the BLS reports are rigged....but what I like even better on the BLS is what we have KNOWN for years and is even worse and that is how they changed the reporting of the U6 to not include many of the historic reporting requirements such as COMPLETELY GIVING UP or I like this one....seasonal adjustments......hehehhehe.........Our markets are replete with examples that "capitalism" is actually "cronyism"........and human behavior is indeed herd like......but what is troublesome is that one needs to understand WHY.....and herds tend to congregate and its the "congregation" that ends poorly......

      Delete
  53. For the love of God GDX MOOOOOVE :)

    ReplyDelete
    Replies
    1. takes awhile to grind out the last of the weak leaves

      Delete
  54. http://www.profitconfidential.com/gold-investments/weak-gold-prices-opportunity-lifetime-contrarian-investors/

    ReplyDelete
  55. http://worldnews.nbcnews.com/_news/2013/11/27/21641914-china-deploys-only-aircraft-carrier-after-us-sends-b-52s-over-disputed-islands?lite&ocid=msnhp&pos=1

    ReplyDelete
  56. immred6February 21, 2013 at 1:28 PM
    Shock and Awe (technically known as rapid dominance) will "impose this overwhelming level of Shock and Awe against an adversary on an immediate or sufficiently timely basis to paralyze its will to carry on . . . [to] seize control of the environment and paralyze or so overload an adversary's perceptions and understanding of events that the enemy would be incapable of resistance at the tactical and strategic levels." Harlan K. Ullman and James P. Wade

    Applies to economic and political control over trade and the overall populous not just underarmed indigenous groups in third world countries.
    ---
    Hence to fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting.

    Here again, no modern strategist but will approve the words of the old Chinese general. Moltke's greatest triumph, the capitulation of the huge French army at Sedan, was won practically without bloodshed.

    Thus the highest form of generalship is to balk the enemy's plans; ....

    if quite unequal in every way, we can flee from him. ....

    Indirect tactics, efficiently applied, are inexhaustible as Heaven and Earth, unending as the flow of rivers and streams; like the sun and moon, they end but to begin anew; like the four seasons, they pass away to return once more.
    - Sun Tzu

    Basically only way you will make it out whole against the constant assault from the superior forces under minions of the PTB is not too play their game by indirect means (asymmetric). Flee their indoctrination media by not consuming cable tv, select what you watch it costs less in the long run, read every "propaganda" news article with a grain of suspicion especially if there is no anonymous comment section, don't support or participate in their major political parties or agendas, make purchases for yourself based on your own thoughts and not to copy a fad or trend includes vacations down to tattoos, don't get caught up in their fad trades or stay too long on their blacklist trade targets (this means less emotion and trading only when you see blood on the streets with regards to paper), preparation for survival should be done to meet your own personal needs and independently of opinions from the media or those around.

    The war is being fought for control of ideas and beliefs, those who control the State and the individuals which comprise the the State. That's why life impacting events like QE to inifinty, BP, Fukushima, Banda Aceh, and the recent meteorite impact or quickly downplayed to make room for dressing with the royals or domestic abuse in South Africa with Justin Bieber and Taylor Swift bringing up the latest spoiled brat antics.

    ReplyDelete
  57. Welcome aboad galt, I hope you'll continue to post. Despite the disagreements and occasional agreements, I find this forum to be a good place to exchange ideas. Ignore the personal attack stuff, that involves just one poster and I know how to deal with him.

    Now, when said I predict gold at sub $1000 (and stay there for 2-3 years), that to me is a good opportunity for accumulation. I may be wrong, but if I'm right, I fully intend to move as much as 10% of my net worth to physical at those prices. It would be the sensible thing to do from a diversification and insurance point of view, and maintaining a store of value, in case Kli is right and all fiat goes puff.

    As for the general markets, we keep going up is my prediction, into 2016-2017. What happens after that is anyone's guess, but I don't see a complete collapse of the USD, the US economy (and taking down with it the rest of the world). I still believe it'll be somewhat similar to what happened with the British pound and the fall of the British empire post WWII. It wasn't pretty for about 10-15 years in the 60s-70s, but they made it eventually and the sky did not fall. Great Britain is not the superpower it once was, but still a major player in the world today. That is what I see for the US in my lifetime. The same way to end the Sterling did not turn Britain into some third world hellhole, anything that might happen to the USD won't be as catastrophic as the doomers make it out to be.

    ReplyDelete
    Replies
    1. BIG difference bud between calling for sub 1000 for 2-3 years and your previous many years call......so I will agree with you in this sense.....THAT is possible but again HIGHLY unlikely......but possiblle......and yes it would be very nice... The reason I say this is unlikely is the only people affected by this would be retail peeps NOT sovereigns and they are buying increasing tonnage every month and THAT is IMPOSSIBLE for the market to sustain.....but I do give 2-3 a "possible"

      Delete
  58. GALT - Bud is totally clueless as to my market outlook. If he weren't so clueless he would know what I think from my blog where I post a weekly outlook (and longer term outlook - monthly). If he weren't so clueless he would have figured out I maintain a "blog", but clueless seems to be Bud's mode of life. Hehehe With very little effort I feel sure you will figure out how to access my blog (I promise you no PM promotion and no uber bear talk unlike Bud supposes is my outlook). I got to tell you - riling Bud is fun though and I am on my "meds" 7 prescriptions and 3 non-prescriptions (doctor's orders) and I feel great from getting adequate exercise and watching my diet.

    ReplyDelete
  59. http://www.shtfplan.com/headline-news/they-know-billionaires-are-quietly-and-rapidly-dumping-millions-of-shares-of-stock_06172013

    ReplyDelete
  60. thanks for the welcome, fellas. i have been reading for quite some time and have concluded it is all in good fun. happy thanksgiving to everyone. as bleak as things often appear, i am convinced we all have a lot to be thankful for.

    cheers,

    g

    ReplyDelete
    Replies
    1. food fights keep us entertained and even force some thought at times.....this is a tough time for even the best pros to make a return so any diversion helps.......gl

      Delete
  61. Who is John Galt? Surprise us Bud and tell us. Hehehe

    ReplyDelete
  62. silver projection: http://econocasts.blogspot.com/

    ReplyDelete
  63. Thanksgiving Proclamation

    Issued by President George Washington, at the request of Congress, on October 3, 1789

    By the President of the United States of America, a Proclamation.


    Whereas it is the duty of all nations to acknowledge the providence of Almighty God, to obey His will, to be grateful for His benefits, and humbly to implore His protection and favor; and—Whereas both Houses of Congress have, by their joint committee, requested me “to recommend to the people of the United States a day of public thanksgiving and prayer, to be observed by acknowledging with grateful hearts the many and signal favors of Almighty God, especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness:”

    Now, therefore, I do recommend and assign Thursday, the 26th day of November next, to be devoted by the people of these States to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be; that we may then all unite in rendering unto Him our sincere and humble thanks for His kind care and protection of the people of this country previous to their becoming a nation; for the signal and manifold mercies and the favor, able interpositions of His providence in the course and conclusion of the late war; for the great degree of tranquillity, union, and plenty which we have since enjoyed; for the peaceable and rational manner in which we have been enabled to establish constitutions of government for our safety and happiness, and particularly the national one now lately instituted; for the civil and religious liberty with which we are blessed, and the means we have of acquiring and diffusing useful knowledge; and, in general, for all the great and various favors which He has been pleased to confer upon us.

    And also that we may then unite in most humbly offering our prayers and supplications to the great Lord and Ruler of Nations, and beseech Him to pardon our national and other trangressions; to enable us all, whether in public or private stations, to perform our several and relative duties properly and punctually; to render our National Government a blessing to all the people by constantly being a Government of wise, just, and constitutional laws, discreetly and faithfully executed and obeyed; to protect and guide all sovereigns and nations (especially such as have shown kindness to us), and to bless them with good governments, peace, and concord; to promote the knowledge and practice of true religion and virtue, and the increase of science among them and us; and, generally, to grant unto all mankind such a degree of temporal prosperity as He alone knows to be best.

    Given under my hand at the City of New York the third day of October in the year of our Lord 1789.

    Go. Washington

    ReplyDelete
    Replies
    1. Just in case anyone forgot.......

      Once Again,

      Happy Thanksgiving All

      Delete
  64. Don't know if anybody is still around that would know but again I'm a dumbass on Harvey's stuff. So Friday really that big of a deal on the contracts standing? We lost a ton today but there's still more than enough to take out what's left of the comex Friday correct? Friday mean they have to cough it up or do they have til late Dec?

    ReplyDelete
    Replies
    1. Hubz they know fully well that they could have a lot standing for delivery but that does not mean they cannot "settle" in cash...quietly...and with "hush money premiums".....one day and of course it could be in Dec we could get a true crisis or "force majuere" but this is most likely going to get pushed a little further down the road.......this is a rigged game and my guess is the COMEX will live to fight a little longer.....maybe.

      Delete
  65. "You must back your currency with something to maintain CONfidence. Its fairly simple."

    If you take some 'money' to a bank and ask for what 'backs' it ... you will get more money. In fact, if you go to a bank and ask for money you will get a small piece of paper with some numbers on it. You don't even get that 'fistful of dollars' experience! The banks don't have the cash, there isn't enough to go around. Money is so scarce it has to be rationed ... Funny thing is most people don't even realize money is being rationed when it occurs right under their noses!

    For the last one-hundred or so years what 'backs' money is a idea: that money by itself an investment; do any business in dollars, etc. the money will multiply itself ... due to 'innovations', entrepreneurs, compound interest, magic. What 'backs' our currencies is the myth of return ... that we get something for nothing. Money = pyramid scheme! What 'backs' our currencies is marketing. It's no coincidence that 'money' has expanded right along with television; money makes the moving pictures on the screen come true.

    The collateral for our money -- its basis -- is waste, money is the residue of destroyed capital: fuel is burned for nothing in automobiles; driving the car does not pay for the car so debt must do so; the fuel is wasted forever, after a short period the car itself becomes junk. Soon enough nothing remains but the debts and the toxic gases from the burnt fuel circling overhead in the atmosphere like avenging Elder Gods.

    Likewise, the product of our economy is waste. Given enough time and money (which is infinitely reproducible) we will have plenty of money but we will be living like savages.

    Violence does not emerge directly from money but at its margins, where money's reach exceeds its grasp. Syrians want cars, refrigerators and suburban tract houses, they have no money so they get bullets instead. What backs Syrian currency? Futility. The Nazis were a military power and they could not afford their ambitions. Germans wanted cars, refrigerators and tract houses, they lacked money so they wound up with bullets and bombs instead.

    Ironically, Hitler would have gotten everything he wanted for Germany without firing a shot had if he introduced the euro. The Europeans all wanted cars, etc., Germans could have become 'rich' by lending euros to the Europeans. This is why America is 'successful'; Wall Street manufactures credit for the rest of the world.

    "THIS is why most central banks outside of the Western sphere of central banks are buying gold bullion and are even accelerating their buying now even as paper prices (through Western Bank derivatives) are crushed."

    Central banks also buy bonds in very large quantities as well as forex; in the long run this does not mean very much. A hard currency? Be careful of what you wish for: major currencies are already becoming hard, millions of motorists exchange money for gasoline at filling stations every single day. Priced in crude oil dollars (yen, euros, roubles, etc.) have worth. A consequence is that the central banks are less relevant and that interest rates have nothing to do with the worth of money.

    Currencies are proxies for the wasting process. With time and depletion currency (dollar) becomes proxy for what is wasted! This is a matter of public perception; when it occurs watch out. Oil will be hoarded indirectly by hoarding money. When that happens you won't have a chance in this world in getting fuel for your car, you will be unwilling to waste good money.

    Hard currencies = it is the end of the automobile and all that goes along with it.

    ReplyDelete
    Replies
    1. impressive......and a very impressive amount of territory covered in a relatively brief essay......There will be NO hard currency as you indicated....only a reset of the fractional reserve ponzi with the player's chairs rearranged. Hard currencies are not an option for any of the powers as you have duly noted. Countries will continue to have their resources plundered by the ponzi, but it will be "more equitable" for those than can control their currencies or can develop alliances with the "right neighbors"........sorry for the short comment but let me reread you a little later. I like your approach.

      Delete
  66. I will be celebrating the next few holidays with the GS boyz so put your requests in now for questions..........new post in a couple of hours or so

    ReplyDelete
  67. http://stockcharts.com/h-sc/ui?s=GORO&p=W&yr=5&mn=0&dy=0&id=p13720498461&a=319651899&listNum=1

    ReplyDelete
  68. wait a minute, hold on, steve O, your........23 right. 24. just a guess. kli impressive? i mean at least you gave the caveat i will re read. steve, keep posting im not being a dick, but.....our currency was backed by gold until umm 30 years or so ago, not 100.

    most people on this blog, i think, would disagree that "money is so scarce it's being rationed" its kind of been printed out of control for the last few years. so it's not scarce.

    "fuel is burned in automobile for nothing".... you had me at fuel. unless your concept of being in a car is a zen or buddist like state where you don't do anything except ride to somewhere undefined and then ride back because you have plenty of time and no purpose, fuel is generally the agent that enables people to arrive at work. fun too. but mostly work, to be productive to generate value one the money invested by their boss to grow the business....money is just paper, i don't disagree. but just because you have to keep putting gas in your car every day, doesn't mean the result of its "work" is wasted....unless you waste it.....

    ReplyDelete
    Replies
    1. Ok OK no new post till saturday night .......this one will ride for awhile

      Delete
  69. 40 years not 30, bad math on my part for gold backing. umm in one paragraph you talk of central banks impotency, in the next you talk of hoarding oil indirectly by hoarding money, but previously, you explain money is fake. you can't have it both ways. you can't espouse to hoard money to have oil, if you have systematically, incorrectly, defined money as a scam. steve O don't let me scare you away, but i think your perception of the world is not fully developed. i think kli likes you because you think things are fu..... to have growth, you do have to have expansion of money. growth demands risk, be it for the borrower or the lender.

    ReplyDelete
  70. actually, i think hitler got everything he wanted. complete obedience. you seem to waft back and forth between materialism, philosophy, and ethics. they are mutually exclusive. you can have convergent properties, but its tricky. love the post, but please realize the reason you can sit in your room and post on a machine that defies logic (the first generation i phone had the same computing ability equivalent to corporate ability to every computer that existed in @1955.) is because people used money to fund industry. is it abused,, yes of course. but what is the alternative. if there is only a finite supply the people that start ahead always win. always. growth is good. money is not evil only the people who use it.

    ReplyDelete
  71. Bud,

    Don't wanna get in the middle of your love fest with Inlet but I thought you might be interested in the following essay:

    http://www.zerohedge.com/news/2013-11-27/guest-post-zombies-make-dangerous-neighbors

    "And author James Kwak wrote on his blog "The Baseline Scenario" just after FASB amended their rules: "The new rules were sought by the American Bankers Association, and not surprisingly will allow banks to increase their reported profits and strengthen their balance sheets by allowing them to increase the reported values of their toxic assets."

    Banks were loaded with securities containing subprime home loans. When borrowers stopped paying en masse, the value of these securities plunged. Until the change in March 2009, these losses had to be recognized. With financial institutions leveraged at upwards of 30-1 at the time, the sinking valuations made much of the industry insolvent… until March 16, 2009. Since then the S&P has nearly tripled."

    Lastly seems I'm not the only one seeing "dead men walking"

    "A zombie government armed with accounting tricks has bailed out a zombie banking industry using even more financial phoniness. A few numbers pushed here and there, and the industry is earning record profits. But out in the real world where people live and work, things aren't so rosy. Zombies make negligent landlords and dangerous neighbors."

    ReplyDelete
    Replies
    1. Tom - you are right on point. It was not the Federal Reserve or the Government that prevented hundreds of more banks from failing - it was an accounting change (dropping "mark to market" requirement). Without this change the bank failures would have exceeded the FDIC's resources and ability to manage.

      And those toxic assets in large part are still on the books of the banks. I do not think most understand that the banks are still very much at risk and when the bill comes due (and it always comes due) there will be chaos.

      Delete
  72. I had some trouble with Steve's post too.

    "Given enough time and money......we will be living like savages". Some of the mathematician John Nash's work was about Game Theory. It is my understanding that his theories explained that despite all of us being guided by "self interest", society will still function. People learn that we must cooperate with each other. Yes, wars may come, but at some point the world resets and life goes on. History tells us that if fiat money becomes worthless, a new money or means of exchange is created.

    I like Ann Barnhardt's explanation of money. Basically, money is a proxy of an individual's work or creativity. See link below and listen to Part 1 of 8. Start it at about 8 minutes.

    http://www.youtube.com/playlist?list=PLyTT9SE3ucGdDMACNqhC_ovcBtF-G6i7A

    Kli, my question for "GS" would be are they aware or willing to predict any timeline? Most of our arguments here on your blog are about the timing of future events

    ReplyDelete
    Replies
    1. on the run obviously today but will give a quick answer on "money" doc. One of the defining characteristics of money is that it is a "STORE OF WEALTH"....first of all throughout history ALL fiat currencies eventually go to ZERO ......as will the dollar and as the dollar essentially already has..........if you had burried a dollar 100 years ago it has lost over 95% of its purchasing power..........THAT IS FIAT....not money. Silver and gold are true money and have been for thousands of years. Now having said that ....I do not advocate abolishing fiat......in fact that will not happen and we WILL have digital currency widely used.......we already do with our credit/debit cards. NO ONE in their right mind expects gold or silver to achieve that. IT WILL NEVER HAPPEN. I will reread Steve now but I think you are missing the point of his essay.

      Delete
  73. "You must back your currency with something to maintain CONfidence. Its fairly simple."

    If you take some 'money' to a bank and ask for what 'backs' it ... you will get more money. In fact, if you go to a bank and ask for money you will get a small piece of paper with some numbers on it. You don't even get that 'fistful of dollars' experience! The banks don't have the cash, there isn't enough to go around. Money is so scarce it has to be rationed ... Funny thing is most people don't even realize money is being rationed when it occurs right under their noses!

    For the last one-hundred or so years what 'backs' money is a idea: that money by itself an investment; do any business in dollars, etc. the money will multiply itself ... due to 'innovations', entrepreneurs, compound interest, magic. What 'backs' our currencies is the myth of return ... that we get something for nothing. Money = pyramid scheme! What 'backs' our currencies is marketing. It's no coincidence that 'money' has expanded right along with television; money makes the moving pictures on the screen come true.

    my take on the above first paragraph is that our money is backed by our military....very important...but also something that is variable and can be rapidly denigrated

    ReplyDelete
  74. "Central banks also buy bonds in very large quantities as well as forex; in the long run this does not mean very much. A hard currency? Be careful of what you wish for: major currencies are already becoming hard, millions of motorists exchange money for gasoline at filling stations every single day. Priced in crude oil dollars (yen, euros, roubles, etc.) have worth. A consequence is that the central banks are less relevant and that interest rates have nothing to do with the worth of money."

    my take..... very true and I have mentioned this numerous times regarding a "resolution" to the fiat ponzi....its NOT going to be a "joyful" experience when you find out just how big the "dollar" binge is in terms of our profligacy.

    ReplyDelete
  75. "Violence does not emerge directly from money but at its margins, where money's reach exceeds its grasp. Syrians want cars, refrigerators and suburban tract houses, they have no money so they get bullets instead. What backs Syrian currency? Futility. The Nazis were a military power and they could not afford their ambitions. Germans wanted cars, refrigerators and tract houses, they lacked money so they wound up with bullets and bombs instead.

    Ironically, Hitler would have gotten everything he wanted for Germany without firing a shot had if he introduced the euro. The Europeans all wanted cars, etc., Germans could have become 'rich' by lending euros to the Europeans. This is why America is 'successful'; Wall Street manufactures credit for the rest of the world.

    "THIS is why most central banks outside of the Western sphere of central banks are buying gold bullion and are even accelerating their buying now even as paper prices (through Western Bank derivatives) are crushed."

    my take......oversimplification of wars and Germany.....so I do take some exception to this premise but he is very correct on his last sentence....if you strike THIS is why..........

    ReplyDelete
  76. this sums it up

    “Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them but leave them the power to create money, and, with the flick of a pen, they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear and they ought to disappear, for then this would be a better and happier world to live in. But, if you want to continue to be the slave of the bankers and pay the cost of your own slavery, then let the bankers continue to create money and control credit.” – Sir Josiah Stamp, President, Bank of England (2nd richest man in England)

    ReplyDelete
  77. PIMCO ✔ @PIMCO
    Follow
    Gross: Give “thanks,” but not your wallet to the #Fed. Begin to de-risk if you haven’t already. @federalreserve
    10:06 AM - 28 Nov 2013

    ReplyDelete
  78. Don't feel bad. The equity bears have been getting thrashed for 5 years. If they can control stocks, why not the metals.

    Anyway, I think the pain for gold bugs is getting long in the tooth. It should be over soon.

    ReplyDelete
  79. Answer to Docs question from the boyz......... NO TIMELINE......was dumbfounded why the Fed did not taper and why they are still at such high levels of QE....cannot make money in equities or bonds at these levels.....only new investments are in (can't remember the term) but essentially "unknown,specialized" equities" and in very private smaller specialized non public companies and properties.......literally scouring the four corners of the world for deals/cheap value.......would NOT talk about gold or silver.....but knows its being CONtrolled to protect the dollar.......I was surprised to hear admission of the manipulation this time. I think there is a realization that even the boyz cannot make money in the current environment. Never said it but reading between the lines I felt he fears a very bad ending coming. I also asked what he thought about Gross's public tweet and again he was dumbfounded that he would go public with his criticism. When I gave him my reasons for Gross going public and the reasons's I thought the Fed did not taper he did not counter. Bottom line NO timetable...EVERYONE in his sphere is on eggshells.......VERY uncomfortable. ALSO let out his concern for his ability to get of the "island"........

    ReplyDelete
  80. After all we're constantly being reminded "We are a Consumer Economy".......

    http://www.zerohedge.com/news/2013-11-29/mobs-stampedes-fights-brawls-stabbing-and-shooting-video-compilation-black-thursday-

    I think in the spirit of Black Friday I'm gonna buy some more freeze dried kibble!

    ReplyDelete
  81. http://news.goldseek.com/GoldSeek/1385738100.php

    ReplyDelete
  82. Kli, Thanks!

    Just to comment/continue of the thread above, you wrote: "...defining characteristics of money is that it is a "STORE OF WEALTH"....

    I look upon wealth as existing in different buckets, ie., Land/Property that is owned contains wealth, Gold/Silver/Diamond jewelry contains wealth, Stocks (certificates in hand) of large international companies contain wealth, etc. Then of course you have fiat money that is part of your wealth.
    I agree the fiat money loses value with time, and at some point, will become worthless. Then, the bankers will create new money and "buy everything back". Thus, the goal here is to gradually increase your hard assets that the bankers have to buy back with new money.

    So, fiat money is a PORTION of stored wealth.

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  83. store of wealth is ONE of about five elements that compose the "definition of money" ie fungible etc....... fiat IS a store of wealth if you want to measure it in a brief defined time.........long term store of wealth??? NO all fiat fails and this is ONE of the primary reasons fiat is NOT TRUE money.......it is CURRENCY

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  84. http://srsroccoreport.com/canadian-silver-maple-leaf-sales-already-beat-2012-total/canadian-silver-maple-leaf-sales-already-beat-2012-total/

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  85. http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=219660&sn=Detail

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  86. Tom, what are you worrying about? Those people in the Black Friday videos are good, decent, honest, hard-working people. I have a great deal of respect for the Walmart crowd. They fully deserve to spend their welfare checks and EBT cards in any way they choose. Did I mention they are good, decent, honest, hard-working people who fully deserve all the government assistance they get? I mean, look, I did not see a single fat, lazy, obese slob in these videos, just lots of good, decent, honest, hard-working people.

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    Replies
    1. oy vey........bad karma again.......sarcasm good bad karma ..........bad

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    2. Bud, Bud, Bud........

      I guess you can't see the reality of all that showen on those videos hehehehehe

      O' well and yes freeze dried kibble was on sale today, got some from the comfort of my den and best of all no mobs!

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    3. bud...one thing you must remember.......these are the "consumers" ...and most are probably NOT on welfare but wait until the JIT food, electricity etc.......are not there.........think what they are doing for a big screen TV now........hehhehehehe........you're right about one thing....THEY are the zombies............

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  87. hmmmmmmmmmm

    http://www.reuters.com/article/2013/11/29/srilanka-gold-idUSL5N0JE3D420131129

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  88. As if it were written for part of this conversation...

    http://www.zerohedge.com/news/2013-11-29/metallic-money-goldsilver-vs-credit-money-know-difference

    and this is for Bud......

    http://www.youtube.com/watch?v=wRRwZDSmTVI&desktop_uri=%2Fwatch%3Fv%3DwRRwZDSmTVI

    Sleep tight......

    ReplyDelete
    Replies
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