Thursday, June 30, 2011

Lindsay Lohan Shills for Pump-and-Dump Stocks on Twitter

And here is the actual Tweet from the post-house-arrested twit(ter).!/lindsaylohan/status/85502735482494976
Have you guys seen food and gas prices lately? U.S. $ will soon be worthless if the Fed keeps printing money!
- Lindsay Lohan, Spokeswoman for the Austrian School of Economics

Video Animation: Mark Bohr Gets Small: 22nm Explained

False flag: Geithner not resigning after all

Treasury Secretary Tim Geithner says "he lives for his job", so is not leaving his post in the foreseeable future.  President Obama has prodigious persuasive skills.

Economic Armageddon and You

While Criminal US Bankers Receive Golden Parachutes, Barbarian Afghanistan Has Just Arrested Executives Of Failed Kabul Bank

I guess we need to re-define what is barbarian:  institutionalized theft or enforcement of banking laws.

Geithner Said to Consider Leaving Treasury After Debt Debate

The last rat is abandoning the sinking economic ship.  The guy was a trooper, I'll give him that.   Next up: a seat on the Board of Directors at Goldman Sachs.

Comment on Zero Hedge

Courtesy of "Problem Is",
You May Be a Domestic Terrorist If:
  1. You have a Ron Paul bumper sticker on your car...
  2. You mention the US constitution...
  3. You engage in domestic food production...
  4. You own a gun...
  5. You mention the Fed...
  6. You own Gold & Silver...
  7. You criticize the Federal Government...
  8. You criticize multi national corporations...
  9. You criticize Wall Street bailouts...
  10. You mention Banksters or the NWO...
  11. You comment on Zero Hedge...

In Washington, war always wins

Thanks again to Kitty for finding this op-ed.  Is Scarborough a conservative or a liberal?  Who cares--he's got it right on this topic.

MSNBC Suspends Halperin Over Obama Slur

Censorship from one of the government's shill networks.  Thanks to Kitty for bringing this up.

“Bondholders Should Be Under No Illusions”

"Irrational Exuberance" Is Back... For The Third Time

Highly margined retail investor = sucker = market top.

Misdirection, Disinformation and Lies

Caveat Venditor!

Seller beware!

IMF warns US of global debt ‘shock’

One corrupt global banking entity warns another corrupt domestic banking entity.

We Get Cash4Gold,China Gets Gold For Cash.

Here is another take on the Pan Asia Gold Exchange.

Wednesday, June 29, 2011

Pan Asia Gold Exchange

Lifting Gold's Veil of Secrecy

Iceland Declares Independence from International Banks

Good for Iceland for giving UK and Dutch banks the middle finger.

Institutions Pull Out of Prime Money Funds

Oh, oh..."breaking the buck" is very bad for money market funds (see post-Lehman collapse).  The contagion of a Greek default will spread throughout the Euro zone.  Guess what US money market funds invest in for "safety"?  Answer: Euro bonds.

Intel CEO: U.S. faces looming tech decline

Stop the Fiscal War Against Our Children Now: Laurence Kotlikoff

I've posited many times the US national debt exceeds $100 trillion, not the official $14.3 trillion figure constantly portrayed in the media.  Dr. Kotlikoff explains why the true number exceeds $200 trillion.

The Screaming Fundamentals For Owning Gold And Silver

The U.S. Is A Kleptocracy, Too

Former Fed Governor Calls QE2 “Dangerous”

Tuesday, June 28, 2011

In a Greek Default, Higher Risk for Money Market Funds

This is why the powers-that-be fear a Greek default so much.  Remember the post-Lehman liquidity crisis that brought on the 2008 financial meltdown?
Money market funds have long been a popular haven for conservative investors, but they could become one way that the tremors of the financial crisis in Greece touch the pocketbooks of Americans - about 50 million of them.

For years, the funds in the United States have taken investors' money and lent it out where they can get the best returns. European banks have been a target lately - so much so that about 50 percent of the funds' $1.6 trillion in prime money market assets is in the debt of European banks.

Now that Europe is struggling to contain its debt crisis, these safe investments could be a tad less safe, especially if Greece's Parliament votes down a set of deeply unpopular austerity measures Wednesday morning.

While any losses on money market funds could be minimal, especially compared with the turmoil that could ensue in stock and bond markets, the possible effect on this corner of the financial markets shows how the ripple effects could reach far and wide if Europe cannot resolve its debt crisis. "A lot of them are exposed to a risk of a blowup somewhere in Europe," René M. Stulz, professor of banking and monetary economics at Ohio State University, said about money market funds. "It does present systemic risk."
Some experts and the funds themselves play down the risks, expressing confidence in the underlying safety of the European banks' debt that they own.

A primary fear is that if a European bank indebted to the funds is weakened in the crisis, then it might have a hard time repaying its loans. But even the perception of trouble could, in a worse case, cause financial markets to seize up and send investors rushing to withdraw money. That is what happened after the collapse of Lehman Brothers in 2008 hit one fund that owned Lehman debt, the Reserve Primary Fund, causing a huge run on all funds.
While the author is correct that sovereign debt defaults will have a crippling effect on our global financial system, the most dangerous and biggest systemic risks are unquantifiable, due to the proliferation of over-the-counter, non-transparent trading of credit default swaps.  Due to the high-leverage nature of said cds', when and if peripheral Euro countries default, the collapse of the credit markets will be catastrophic.

Translation?  Economies will tumble, commerce would freeze up, and a trip to the local ATM or bank teller would prove futile.  In other words, good luck.

Jim Rickards interview

I've been following Rickards and corresponded with him for years, but this is one of his best interviews ever.

France`s Lagarde faces policy dilemmas as IMF chief

In one of the biggest non-surprises in financial history, Legarde was appointed as IMF chief.  Her task:  print, baby, print.

The Strategic Petroleum Reserve Release Has Now Been Fully Priced In As Crude, Gasoline Surge

Pimco sees rising inflation for 3 - 5 years

Follow that ship

Click on image to enlarge.

Monday, June 27, 2011

Soros Says a Euro Exit Mechanism Is ‘Probably Inevitable’ Amid Debt Crisis

It took Soros a while to figure it out, but his conclusion is spot on.  The Euro itself may become extinct.
Billionaire investor George Soros said it’s “probably inevitable” that a mechanism will be put in place to allow weaker economies to exit the euro.

“There’s no arrangement for any countries leaving the euro, which in current circumstances is probably inevitable,” Soros, 80, said at a panel discussion in Vienna yesterday on whether liberal democracy is at risk in Europe. “We are on the verge of an economic collapse which starts, let’s say, in Greece, but it could easily spread. The financial system remains extremely vulnerable.”

Dollar seen losing global reserve status

Thanks to Dick for finding this article validating us gold bugs are not conspiracy theorists.  We now have central bankers globally who are in our camp.

Dodgers file for bankruptcy — and arrange for $150-million loan

The moral of the story is don't make your spouse the CEO of a professional sports franchise if you plan on owning it.,0,6381242.story

What If the Consensus Is Wrong?

Soros: “Financial System Remains Extremely Vulnerable… We Are On The Verge Of An Economic Collapse”

If your interest is really piqued, try questioning central banks yourself

Ron Paul worries Fort Knox gold is gone

After Getting Smoked On Treasuries, Bill Gross Joins The Ranks Of Silver Market Conspiracy Theorists

Folks, you can label me a conspiracy theorist, but you can't dismiss the lawsuits against JPMorgan for the manipulation of silver prices <click here>.  Fine, you may say the plaintiffs are sore losers.  Not so fast.  In steps the largest bond investor in the world, PIMCO, led by Bill Gross.  Here is a recent tweet:

Sunday, June 26, 2011

Greece Deputy PM Warns Of Tanks In The Streets, Mass Suicides, If Second Bailout Voted Down By Greek Parliament
With just days left until the crucial vote on passing the Greek mid-term austerity package, the assured destruction rhetoric used by the Greek status quo has hit fever pitch. Just to make sure the message is not lost on the broader population that Europe's banks will not admit defeat in a vote that could end the kleptocratic cartel's hegemony for ever, Greece's Deputy Prime Minister Theodoros Pangalos has blasted suggestions that it would be better for his country to abandon the euro and return to the drachma as an "immense stupidity". He didn't stop there. For dramatic impact, the Greek vice PM also said that the country would devolve into complete anarchy, with tanks roaming the streets, a population on the verge of civil war, with mass suicides, just for dramatic impact, should bankers not get their way. More or less in line with the Hank Paulson script that is regurgitated every few years when the Ponzi system is on the verge of imploding yet again.

Broke and Hungry: This Chart Says It All

Click on image to enlarge.

Food stamps are the 21st century electronic equivalent of 1930's Great Depression bread lines.

Max Keiser And Sandeep Jaitly Explain Why Modern Economics Is "Rubbish"

Saturday, June 25, 2011

Spain ghost airports: symbols of boom turned bust

We could learn from infrastructure investments gone bad in Spain.
The glittering buildings rise up from Spain's arid central plain.

Draw closer and there's something eerie about Ciudad Real's Central Airport. There's hardly a plane in sight. Nobody's around. Cars can only be heard faintly in the distance.

This is one of Spain's "ghost airports" — huge projects often funded by taxpayer money that helped drive Spain's economic boom and now symbolize the wasteful spending that contributed to its spectacular bust.

But signs abound that Spain has not fully learned the lessons of its profligate spending. Spain recently announced a high-speed rail link to the sparsely populated northwest region of Galicia, a plan many economists see as an extravagance. Bridge and highway projects are plowing forward in the face of criticism that Spain just can't afford them.

"We had great hopes for Central, we believed in it, dreamt about it, we thought it was going to be the region's salvation," said Ciudad Real taxi driver Enrique Buendia, who can hardly remember the last time he got a run to the airport.
"But, when you mix politicians and business it's bad news."

Indeed, it's an unhealthy mix of politics and business that critics blame for white elephants such as the airport in Ciudad Real, a city of 74,000 people. Spain has a history of pouring public money into dodgy projects to fuel the careers of ambitious politicians and local entrepreneurs.

The airports and other projects illustrate how regional governments and government-linked savings banks drove themselves into a debt swamp from which it will take years to emerge.

"We have substituted our obsession with bricks and house building with an obsession for highways, high speed trains and airports, but it's the same rubbish," said Fernando Fernandez, a macroeconomics Professor at IE Business School in Madrid.

"It's like a drug addict trying detox," he said. "The economy has been growing through construction for the last 10 years and that creates all sorts of bad habits."
"This is a country of fiefdoms, like the Middle Ages, you know 'I want my airport ... my convention center and my high-speed train,'" said Stephen Matlin, managing director of the Matlin Associates investment banking firm in Madrid.
But analysts say that unless Spain learns fast and begins investing in a new economic model by pouring billions into education and research and development, it could be headed for disaster.

"What we're doing is maintaining the old economic structure of the country," said Fernandez. "Instead of investing in new skills for people ... we spend money on keeping them busy to give the appearance of bring the unemployment figures down."

Thursday, June 23, 2011


I laughed when Fed Chairman Ben Bernanke won Time's Man of the Year in 2009, after receiving credit for saving the global economy in 2008.  I half-jokingly said Fed Chairman Ben Bernanke would be eventually tried for treason after destroying the USDollar.  I was summarily ridiculed then.  Now, not so much.

Here's another little dirty secret.  As Fed Chairman, he doesn't even call the shots on monetary policy.  It's the US Treasury and Bernanke's true bosses who are the shot-callers:  the big European and US banking cartel.  They order him to print money--or else.

Will Higher Interest Rates Derail Gold?

I've always posited gold performs well during inflation--but even better during deflation.  And while negative real (inflation-adjusted) interest rates are bullish for gold, so are rising nominal interest rates.  The key component of a bull market in precious metals is a loss of confidence in the paper currency.

The U.S. Monetary System and Descent into Fascism An Interview with Dr. Edwin Vieira

US Opens Reserves to Release 30M Barrels of Oil

Apparently I'm not alone in my opinion that tapping into our nation's emergency oil reserves was a political move, and not an emergency.

Fed’s Bullard: “When it does blow up it will be too late”

Jon Stewart Explains The Greek Crisis To The Great Unwashed

Ron Paul Is Currently Holding A Hearing On Legislation For A Full Audit Of US Gold Reserves, Aka The "Show Me The Tungsten" Bill

Those who called me a conspiracy theorist can eat their Federal Reserve Notes (i.e., dollar bills) now.

For those who don't understand the tungsten reference, counterfeit "official" gold bars have been discovered by Chinese officials and German assayers.  The fake gold bars were filled with tungsten and coated with gold--undetectable without sophisticated screening equipment, since tungsten has the same density as gold.

See <here>, <here>, and <here>.  And yes, you should have been reading these blogs years ago, because you would be sitting on a healthy profit today if you had.

Mike Krieger Sees Widespread Panic

Letter from Jim Sinclair

Dear Extended Family,
Today’s markets are exactly what you would expect as we enter illustration number three of the Skier.
Economic statistics are taking a hard fall.
Without QE who will buy US treasury issues?
Without QE where is the basis of world equity markets?
Without QE what do you think the chart of unemployment will look like?
Without QE how do you think the camouflage of the insolvent balance sheets of the financial industry will fare?
Without QE where is mortgage money coming from?
Without QE what do you think home prices will do?
Without QE how will the present Administration and the legislative be re-elected?
Without QE how will the States of the United States of America finance themselves?

Be prepared for a reversal of the decision to curtail QE at the end of June.
Be prepared for a snap back at a greater percentage of QE with a different name.
Be prepared for covert QE between July 1st and late August when stimulation goes wild.
Be prepared for gold to take out $1650 on the upside as magnets at $12,544 come into play.
Be prepared for the Inflationary Depression of all time.

Stand firm on your gold positions.
Stand firm on your discipline of NO margin.
Stand strong in your Swiss Franc and Canadian dollar positions.

Survive the MOPE and market manipulation that is so obvious today.
QE = Quantitative Easing = US Treasury Debt Monetization = Deficit Spending = Stimulus Spending = printing paper currency (and issuing credit reserves) out of thin air, backed by nothing

MOPE = Management of Perspective Economics = lies from government economists, politicians, and central bankers

How to insure your wealth against a Greek default

You Have Just Entered The Onion Zone: Irish Finance Ministry To Sell "Ireland Is Not Greece" T-Shirts

Debt Ceiling Talks Collapse

More theater.  The debt ceiling will be raised, like it always has, despite GOP petulance.  The problem is not that it will be raised--the problem is that Congress will be successful in raising it--and it's a goal both sides of the aisle desire.  So the solution to a bulging debt problem is to take on more debt.  Genius.

Japan pledges to support eurozone

Read that headline again:  Japan supports the Eurozone.  Japan?  They may be in worse financial shape than their Euro counterparts.  The shenanigans are getting more ridiculous by the day as governments desperately click on to an insolvent status quo.  They'll support one debased currency with another currency issued by a bankrupt government.

Bernanke Lies Half Life Reduced To Under One Day As Aflac Scrambling To Shore Up Liquidity On European Exposure
Yesterday during his press conference, the Chairman uttered his latest lie: "We have asked the banks to essentially do stress tests and ask, looking at all their positions, all their hedges, what would the effect on their capital be if -- if Greece defaulted...The answer is that the effects are very small.
This is the same Fed Chairman who said the subprime mortgage crisis would not spill over into the overall mortgage market, that housing was in fine shape, that the auto companies were fine, and that the economy was in great shape--in 2006.

In other words, if you still believe this pathological liar, you deserve to lose all your money.

Derivatives Cloud the Possible Fallout From a Greek Default

All is well.  They'll just print more currency to paper over any insolvency problems. /denial

Get ready for the next blow up.  And watch the contagion sweep across the Euro zone and cross the Atlantic.

Wednesday, June 22, 2011

New York Fed Refuses To Disclose Data On "The Largest Theft Of Funds In National History" Which Could Be Three Times Larger Than Expected

"Growing Your Way Out of Debt" Is a Fantasy

Jim Grant Says All The Things That Ben Bernanke Avoided During His Press Conference, And Much More

Change To Inflation Measurement On Table As Part Of Budget Talks -Aides

This is just another method of stealing from the masses by our allegedly benevolent government.  Inflation as measured by the CPI is already understated.  This calculation change will prove to be an even bigger lie on the cost of living adjustments.
Such a move is widely seen by economists as resulting in a slower rise in inflation. That would impact an array of federal programs that are linked to CPI including the Social Security program and income tax brackets set by the federal government.

Last statement sent to Sentinel from self-immolation victim

Silver-Coin Sales Booming at Perth Mint on Demand for Haven

Readers of my blog could have purchased silver bullion for one-third today's cost, and purchased silver miner SLW for one-tenth of today's share price in late 2008 (post-Lehman bankruptcy) and early 2009.

Here's the good news:  this decade long bull market in precious metals is not over, in my opinion.  Naysayers have been calling for a bubble for 10 years, and have been decidedly wrong.  Focus on the long running theme of paper currency debasement--and not the daily fluctuations and "expert" commentary.  They've been wrong--dead wrong on stocks, real estate--and precious metals.

See disclaimers in the side bar.

Disclosure:  long precious metals and mining shares.

Greek savers rush for gold

PIMCO's El-Erian predicts Greece, others will default

School Daze, School Daze Good Old Golden Rule Days

The Death of Demand: The Post-Consumer Debt Economy

Greece must be allowed to default

Confidence in Fiat Currencies is Beginning to Collapse

Russia to Reduce U.S. Debt Holdings

Another sovereign country is avoiding US Treasury bonds, the next bubble.

The Emerging New Monetarism: Gold Convertibility To Save The Euro

To all my previous skeptics on gold, you can go screw yourselves.  Your Keynesian ship is sinking.

Thursday, June 16, 2011

The ESF: Headquarters of gold rigging -- and all U.S. covert operations too?

Boehner Says Lawmakers May Seek to Deny Funds for U.S. Operations in Libya

Funny, former President Bush's could have been accused of the same allegations Boehner is tossing at President Obama.  Which goes to show how broken our political system is.

In A Currency Tug Of War The US Dollar Loses

As I've posited before, even if you're the tallest midget in the room, you're still a midget.  Problems in the Euro zone are real, but mere distractions from the US' own systemic financial problems, and they are just as big domestically, if not bigger than those across the pond.  Euro sovereign debt crises create headlines in order to mask US insolvency.  Don't let the media divert your attention away from protecting your assets.  It will get uglier here in the US.

Wednesday, June 15, 2011

Sinclair - You’re Out of Your Mind If You Sell Gold Assets Now

Print More Money

The Catalysts Start to Catalyze

Greece financial crisis reaches new low - animated version

Live streaming: Greece

Stocks slump as Greek crisis turns violent

Raging Stagflation: Inflation Higher As Empire State Mfg Index Tumbles, Confirms Contraction

Tuesday, June 14, 2011

COMEX Registered Silver Supplies Down to 27.9 Million Ounces

The countdown to a COMEX default in silver resumes.

What are the social implications of economic collapse?

Is it fixable?

Is Gold in Fort Knox Real? Ron Paul Wants to Know

Even if every single gold bar the US Treasury claims it has in its vaults is real gold (as opposed to tungsten-filled bars), there are no guarantees the bars are unencumbered.  The gold could have been swapped, leased out, or outright sold to other parties, including other central banks, commercial banks, ETF's, and metals exchanges in London and New York.  The "conspiracy theory" is gaining traction.
Are the gold bars in Fort Knox really made of the precious metal? Or has the U.S. government secretly sold off the nation's stockpile and replaced it with metal bars that are only painted gold?
Ron Paul (R)

Ron Paul wants to find out.
Giving legitimacy to an Internet conspiracy theory that the gold in Fort Knox is fake, the iconoclast Republican congressman from Texas has asked adminstration officials to audit the purity of the nation's 700,000 gold bars held in Fort Knox, according to an internal Treasury document obtained by CNBC. Paul, a presidential candidate who chairs the House's subcommittee on Domestic Monetary Policy, had previously called for the U.S. gold reserve to be counted and for a return to the gold standard. He now appears to be going a step further in his request that representatives from the U.S. Treasury Department and the U.S. Mint testify at a subcommittee hearing on June 23 about the authenticity of the nation's gold.
The Treasury document says it would cost about $15 million to conduct an audit. The process would take about 30 minutes to verify the gold content of each bar, or 350,000 man hours; to do that would would take 400 people working for six months, according to the document. The Mint is audited annually by the Treasury's Office of the Inspector General. An audit of the "Schedule of Custodial Deep Storage Gold and Silver Reserves" was published in September 2010.
A Google [GOOG  511.825    7.095  (+1.41%)   ] search of the phrase "Is the gold in Fort Knox fake" returns 623,000 results. Many of them reference a single, unverified report in 2009 that the Chinese received a fake shipment gold that, in fact, was tungsten.
One conspiracy theory says that no one has actually seen the gold since the 1930s. But in a letter to Paul in September, the Treasury Inspector General said he had "personally observed the gold reserves located in each of the deep storage compartments."
As a postscript to the story, CNBC asked for a tour of Fort Knox to film the gold, since our only footage of Fort Knox is from 1974. An official at the Mint told us that not he was not aware that any member of Congress had toured the facility since that year. Fort Knox is "a closed facility," the official said.
And so the conspiracy theory continues...

Inflation, Deflation, and Stagflation, Japan and the US

Standard Chartered: "Three Factors Will Drive Gold To $5,000"

Woah, another mainstream bank specializing in commodities just went hyperbolic on the price of gold.  I guess they're conspiracy nuts also.  The table is now set.  It's now just a matter of time before other institutional investors like the University of Texas endowment fund begin accumulating physical gold and buying mining equities.

CFTC Delays Swaps Regulation By Another 6 Months To Comply With Wall Street Demands

The shiftless CFTC continues to let market manipulation run rampant at the COMEX, allowing their trading firm friends to continually rape and pillage other market participants deluded enough to believe futures exchanges are "free markets."

The Greek Government has hired Foreign Workers to Clean out the Underground Tunnel Leading from the Parliament to the Sea Port of Piraeus in Preparation for an Evacuation of all MPs

"Off with their heads!"
Apparently, a tunnel that leads from Lykavitos to the Greek parliament, and from there to the sea port of Piraeus, is being cleaned out by foreign workers in preparation for the possible evacuation of Greek MP’s in the event of a storming of parliament ahead of wednesday’s vote on the new memorandum.

The situation here is getting completely out of control. I really don’t know how much longer the people will be willing to wait this thing out. The mood here in Athens is one of intense disillusionment with a government that seems increasingly detached from its own people.

Monday, June 13, 2011

As Greece Prepares To Auction Off The Acropolis, Austria Is Selling Its Mountains

With "austerity" imposed on Greece as a pre-condition for bailouts, "privatization" will also play a key role, as Greece sheds its assets in a fire-sale liquidation.  Austria already jumped the gun and is selling off mountain peaks.  This is how onerous debt levels can destroy the sovereignty of a nation, for those who believe that "deficits and debts" don't matter.
"In Greece, they're selling off islands. In Austria, it's the mountains,"

US Is in Even Worse Shape Financially Than Greece: Gross

As stated many times, Greece will default, despite desperate denials from bankers in the Euro zone and worldwide.  The only question is how and when.

Here's the scariest part:  the world's biggest bond investor just declared US finances are in worse shape than Greece's.
When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco's Bill Gross told CNBC Monday.
Bill Gross
Getty Images

Much of the public focus is on the nation's public debt, which is $14.3 trillion. But that doesn't include money guaranteed for Medicare, Medicaid and Social Security, which comes to close to $50 trillion, according to government figures.
The government also is on the hook for other debts such as the programs related to the bailout of the financial system following the crisis of 2008 and 2009, government figures show.
Taken together, Gross puts the total at "nearly $100 trillion," that while perhaps a bit on the high side, places the country in a highly unenviable fiscal position that he said won't find a solution overnight.

Does this all sound familiar?  Who thinks I'm crazy now?

Will Our Economy Trigger Violence In U.S.? People Are Frustrated & Angry & Disgusted With Our Govt!

I predicted this 3 years ago, and now CNN is reporting it.  The fourth turning is coming.

Missing Iraq money may have been stolen, auditors say

Thanks to Kitty for finding this pathetic example of government theft.,0,4414060.story

Obama Seeks to Win Back Wall St. Cash

Assuming the bailouts of too-big-to-fail banks represented the largest theft in the history of mankind, and given the fact that no bankers have been prosecuted, does this story surprise anybody (i.e. taxpayers)?

Will the Masses Soon Be Promoting Silver?


Barack Obama (D) Top Contributors

Paul tells Manchester crowd inflation will hit 50 percent

Ireland Seizes $7 Billion From Its Pension Fund To Boost Employment

Coming to a country near you.

Sunday, June 12, 2011

The Bitcoin Triples Again

The Government Monster: Presenting The Centrally Planned States Of America
The proportions and the nations change, but the question remains the same. We here at The Privateer have raised this question before in relation to the US and we will probably raise it again. How did a US government “govern” a nation of 92 million people with an annual budget of $US 0.7 Billion and a TOTAL (funded and unfunded) debt of $US 2.7 BILLION one hundred years ago? The answer is very simple. For the most part, they didn’t. And because they didn’t, they didn’t indulge in economic make believe. They had no income tax to “fund” them and no central bank to print more money - if necessary.

Today, the US government “GOVERNS” 310 million people with an annual budget of nearly $4,000 Billion and a TOTAL (funded and unfunded) debt approaching $US 100,000 Billion. It takes about 5400 times as many Dollars and about 37000 times more debt to “govern” about 3.35 times as  many people as it did a century ago. Why? The answer is equally simple. Today, the US government “governs” everything. It is all pervasive. It has taken over the economy from its people.

At the same time, the present government reassures the governed that the cost involved is not theirs to bear but can be perpetually shifted to future generations if only they will continue to go along with economic make believe. Officially, this is known as the “full faith and credit” of the US government.

Saturday, June 11, 2011

Federal Reserve Admits: We Have No Gold ! - Where is the Gold of the Planet?

The Unwind Begins: Eurogroup President Juncker Redirects From A Broke Europe By Throwing US And Japan Under The Insolvency Bus: "The Debt Level Of The USA Is Disastrous"

I've told you once, I've told you twice, but when the ring leaders of a Ponzi scheme start pointing fingers at each other (vs. just blaming the innocent, but dumb-downed masses who were looted), the end game is nigh.

If I were Juncker, an self-admitted liar himself <click here>, I'd avoid hotel chambermaids at all cost <click here>.

U.S. Hurtles Toward System Failure

Thanks to Dick for this find.

Police State Amerika

Bilderberg Security Assaults EU Members of Parliament

The New And Improved Iron Curtain
Frankly, I don’t know what it is about California, but we seem to have a strange urge to elect really obnoxious women to high office. I’m not bragging, you understand, but no other state, including Maine, even comes close. When it comes to sending left-wing dingbats to Washington, we’re number one. There’s no getting around the fact that the last time anyone saw the likes of Barbara Boxer, Dianne Feinstein and Nancy Pelosi, they were stirring a cauldron when the curtain went up on “Macbeth”.

The three of them are like jackasses who happen to possess the gift of speech. You don’t know if you should condemn them for their stupidity or simply marvel at their ability to form words.

Friday, June 10, 2011

End Game, by Peter Schiff

Meet The Squatters: Here Are The Millions Of Americans Who Live Mortgage-Free For Up To 5 Years And Counting

Risk Free Precious Metals Arbitrage?

Nah, there can't be any price suppression with COMEX gold contracts.
One picture explains so much. One is the Comex Gold contract, the other is the Hong Kong traded one. One bid is above the other's ask.

China ratings house says US defaulting
A CHINESE ratings house has accused the United States of defaulting on its massive debt, state media said on Friday, a day after Beijing urged Washington to put its fiscal house in order.

'In our opinion, the United States has already been defaulting,' Guan Jianzhong, president of Dagong Global Credit Rating Co Ltd, the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.

Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies - eroding the wealth of creditors including China, Mr Guan said.

Thursday, June 9, 2011

New sign of tough economy: More 401(k) loans

Is The Debt Problem As Bad As They Say

Gross Says ‘No Regrets’ Over Missing Short-Term Bond Rally

Bill Gross of PIMCO says he was early--and not wrong, with his short on US Treasuries.

With $1.2 trillion under management, I think I'll give him the benefit of the doubt.

Robert Shiller: "Economy Is At A Tipping Point... A 10-25% Slump In Home Prices Would Not Surprise Me At All"

Does Shiller warning about a double dip in housing make him a fear-monger?  Probably not, given he is the co-founder of the Case-Shiller housing index.

Global corn scenario-US grows less, China eats more

The Bernanke Chronicles

Comment on Fed Chairman Ben Bernanke, by B9K9 on Zero Hedge

I disagree; I think Bernancke is a true believer, which is why he was selected for the position. The real players, who are descendants of those who first created the BoE, then the Fed, and many over CBs, know the true score.
After all, from their earliest ages, they are schooled in the simple mathematics of usury & compound interest. Their heritage is one of ultimate predation - to lie in wait until thriving societies (republics) reach the point of exhaustion so that their corrupting influences can have greatest effect.
But that observation is repetitive and well known by any who wish to understand. My interest lies in why people want to believe Bernancke can have any effect. I think the best way to explain this phenomena is to consider the witch doctor: why did/do primitive cultures revere witch doctors?
I think the simple explanation is that people are afraid. In days of yore, a crop failure was a death sentence for the entire country. Since people had nothing to lose, why not put their faith in the rantings of some hocus-pocus spewing mumbo-jumbo? After all, if he was wrong, they were dead anyway.
That's where we're at today - what do we have to lose by letting Ben dick around with monetary policy? After all, once the Fed was created nearly 100 years ago, the American Empire was put on death watch. I mean, it was fait accompli; the only variable was time.
Like a python, once a society relinquishes itself to the soft embrace of the chosen, it's a goner. The tribe never lets go until the victim is dead, then moves on to search for other living, thriving victims. It's been this way for 5-6 thousand years, and I dare say it will continue for at least that long into the future.
After all, how many people read/know of the Founders' warnings regarding foreign banking interests consipriing against the young Republic? 200+ years from now, no one will care to understand what happened when the American Empire finally expired. It will be lost in the annals of time, allowing the vipers to once again spin their webs.
- B9K9, 6/9/2011

Chart of who "owns" the Federal Reserve, circa 1976


I wonder why Anthony Weiner was crying during his confession of Weinergate:  was it because he was remorseful that he put his pregnant wife through this public humiliation--or because he was busted?   A shout out to Brian for finding this.
Whatever the outcome of “Weinergate,” I blame the women.

There, I said it.

Three reasons why gold is going to have a big summer - Embry

Gas and electricity price shock shows the Government measure of inflation is meaningless

It should not shock readers of this blog about the parallels between official British and US government reporting of the Consumer Price Index, and how out of touch it is in calculating the true cost of living increases.

Feds defend Department of Education raid on a home

In a follow up to this story, I guess the raid was justified. /sarcasm

Back to our regularly scheduled programming.

European Credit Agency Downgrades US Credit Rating from AAA to AA

Translation:  The Feri Rating & Research AG downgraded the credit rating for the United States from AAA to AA.

The Times' Andrew Ross Sorkin Gives Goldman a Rubdown

Matt Taibbi 1, Andrew Ross Sorkin 0.

A bit of advice for Taibbi.  You might want to check under your car every morning.  You're not making friends on Wall Street.  Keep up the good work.

'Worst Ever' OPEC Meeting Sees Oil Rise Sharply – Inflation Pressures, Growth And Sovereign Debt Concerns Support Bullion

President Obama Authors The Economic Recovery That Isn’t

The Fatal Pivot

And here is an op-ed from Nobel Laureate idiot Paul Krugman, who advocates plunging the US into further debt to the tune of $10 trillion, when a few trillion never worked.  I'm not sure who's more deluded:  Krugman or his followers.  "Obama hasn't done enough"???  Sure, why don't we just let Bernanke print $10 trillion more--that should improve the integrity of the USDollar.  Welcome to the banana republic, America.

Commodity Bubbles Caused by Speculators Need Intervention, UN Agency Says

The UN is now trying to regulate human nature.  If they're going to target speculators, don't leave out our central and commercial bankers.  It's open season for market manipulation.

Wednesday, June 8, 2011

Little Scrap Silver Seen On Market After Run To $50

You would think with high silver prices, there would be more selling by the public.  The fact that scrap silver remains tepid means we are nowhere near a bubble.

Dollar holdings risky, SAFE official warns
China should guard against risks from "excessive" holdings of US assets because Washington could pursue a policy to weaken the dollar, a senior currency regulator said in comments published on a website that briefly pushed the dollar lower.

However, the comments by Guan Tao of the State Administration of Foreign Exchange (SAFE) were quickly removed from the website at his request. He told Reuters the comments had been made in private academic discussions and represented his personal view only.

In private, Mark Carney offers a less rosy outlook

Modern Money Mechanics, by the Chicago Fed

Recall my blog earlier today <click here> where I rhetorically asked "what is riskless return?", and more importantly, "what is money?"  With central bankers' machinations and manipulation of financial markets, these questions are becoming very pertinent and have profound implications on assets and wealth.  Price discovery mechanisms have become distorted beyond recognition as a result.

Here is a workbook by the Chicago Federal Reserve Bank itself attempting to answer these esoteric, but actually impactful questions, released in 1961.

“In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper, deposits merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face value. What, then, makes these instruments - checks, paper money, and coins - acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and for real goods and services whenever they choose to do so."

Jim Rogers 1-on-1

What are the chances the U.S. economy could eventually trigger violence in our country?

A long-running theme in this blog is starting to gain traction in the mainstream media.  I hope we're wrong.

Bill Gross: Treasury investors will 'get cooked'

Is Gross really short US Treasuries or is he talking his book?

Fed: Default would be dangerous; Fitch may cut rating

The term "riskless" has once again taken on a whole new meaning, as it did in 2008.  So is the phrase, "what is money?"
St. Louis Federal Reserve Bank President James Bullard told Reuters on Wednesday "the U.S. fiscal situation, if not handled correctly, could turn into a global macro shock.

Bullard's warning came just after Fitch said it would slash to "junk" the ratings on all Treasury securities, seen worldwide as a risk-free investment, if the government misses debt payments by August 15.

A little over the top?: SWAT team launch dawn raid on family home to collect unpaid student loans

Thanks to Kitty for finding this very disturbing incidence.

Republican mainstream flirts with brief default

Yes, a US Treasury technical default--vs. an outright default, would be troubling, but it could also restore the creditworthiness of an already insolvent US government, so all this talk of panics in bond markets is hyperbolic.  See Stanley Druckenmiller's opinion  <click here> on a technical default, which could help bond investors avoid a haircut should the US outright default.

An idea once confined to the fringe of the Republican party is seeping into its mainstream -- that a brief default might be an acceptable price to pay if it forces the White House to deal with runaway spending.

An increasing number of Republicans do not believe the Obama administration's dire predictions of economic "catastrophe" if the debt limit is not increased. They argue a period of technical default can be managed without plunging markets into chaos.
The Republicans' theory is that bondholders would accept a brief delay in interest payments if it meant Washington finally addressed its long-term fiscal problems, putting the country in a stronger position to meet its debt obligations later on.

But interviews with government officials and investors show they consider a default such a grim -- and remote -- possibility that it was nearly impossible to imagine.

The Fed’s Inflation Play

It’s time U.S. addresses $77 trillion national debt

I've blogged many times our national debt level is north of $100 trillion, not the oft-quoted $14 trillion--if we include all debts and future liabilities.  Here the Chicago Sun-Times comes up with a calculation of $77 trillion.

U.S. cancer drugs shortage has doctors scrambling

Thanks to Kitty for finding this disturbing trend.

Closing the 'Collapse Gap': the USSR was better prepared for collapse than the US

Tuesday, June 7, 2011

Watch That Bikini Wax Indicator

Traders selling stocks and buying gold and silver

Famous Last Words

In a strange mea culpa, CNBC put together a slide show of Famous Last Words.  Many of these characters who made these completely wrong-headed and fraudulent calls were often guests on CNBC's shows.  Maybe CNBC is trying to close the credibility gap, even if in a perverse manner.

Wall Street analysts

This is all you need to know about Wall Street "experts", "pundits", "analysts", ad nauseum.

Shares of Lehman Brothers were trading at $12.69 on August 20, 2008, already down 87% from its 2007 peak.

On August 21, 2008, banking analyst Dick Bove upgraded Lehman Brothers shares to a Buy recommendation.

Not to be outdone, on September 5, 2008, CNBC's Mad Money host Jim Cramer, went a step further and declared Lehman a "Screaming Buy", causing the shares to be bid up to $16.21, up $1.03 for the day.  It was due to the "Cramer effect", as he had a large following of retail investors (and probably closet institutional investors).
In fact, Cramer was going out on a limb here, he named Lehman his “screaming buy” for the last couple of hours of Friday trading. It “can’t get any worse there,” he said.

On September 15, 2008, Lehman Brothers was forced into bankruptcy, and shares plummeted to $0.  Investors in Lehman Brothers shares lost everything.

QE 2 Was A Disaster: Here Is Why US Fiscal "Stimulus" Was A Complete Failure As Well

How China Just Implemented A Stealth Bailout Bigger Than One And A Half TARPs

China is furiously propping up its economy with TARP-like bailouts also, but unlike the US government, the Chinese government is encouraging its citizens to purchase gold and silver to protect their purchasing power against inflation.  In contrast, the US government (and most developed countries) encourage their citizens to increase consumption, i.e. decrease savings, in a futile attempt to stimulate their respective economies.  In normal economic cycles, consumerism works, but western countries have structural debt problems, which is why their economies are still stalled 4 years later.  The Keynesian end game is nigh.

U.S. funding for future promises lags by trillions

The numbers are even worse than this already bad number.  Over the counter derivatives, if marked to market, would increase the nation's liability by trillions, due to a depression in real estate prices.  But hey, who's counting?  Thanks to Kitty for finding this article.
The federal government's financial condition deteriorated rapidly last year, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit, a USA TODAY analysis shows.

The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.

China official says U.S. could pursue weak dollar policy
China should guard against risks from "excessive" holdings of U.S. assets as Washington could pursue a policy to weaken the dollar, a senior currency regulator said in comments published on a website that briefly pushed the dollar lower.
However, the comments by Guan Tao of the State Administration of Foreign Exchange were quickly removed from the website at his request. He told Reuters the comments had been made in private academic discussions and represented his personal view only.

OPEC Stand Off As Saudi Arabia Tries To Help Obama's Reelection Chances By Hiking Crude Output; Iran, Venezuela, Iraq Not Convinced

I've always, repeat, always been of the opinion that the House of Saud has overstated their crude oil reserves, in an attempt to ward off panic buying and hoarding.

NJ Supreme Court: Online posters don’t have same source protections as mainstream journalists

I knew this day would come.  Expect my blogs to be nothing more than links from now on (with minor editorial content).  This blog was headed that direction anyway, as our country's massive economic and financial problems are becoming more "observable."  So long, independent thought...I'm about to join the throngs of cheerleaders.

We need an ‘Evil Plan’ to foil our own leaders

I disagree with Farrell on several points (many of us did anticipate the subprime mortgage meltdown, Ayn Rand isn't ideologically evil, and capitalism hasn't failed because what we have is rigged capitalism), but his overall message of an "evil plan" resonates with me.
Yes, when the masses rise up, leaders see anyone who wants freedom as a traitor, anyone resisting authority is guided by an “Evil Plan.” And from Libya to Syria, leaders who believe they rule by a divine right also have the right to shoot anyone resisting their authority.

King George III must have seen our Declaration of Independence as an “Evil Plan,” right from the opening lines about: “All men are created equal” and “When in the course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another ...” Yes, “Evil Plans” can be treasonous, punishable by death.
MacLeod’s reference to “Black Swan” author Nassim Taleb’s warning is the perfect answer to Newsweek’s question: “Could club-wielding protesters be in America’s future too?” Ironically, the Bush Doctrine of spreading democracy has suddenly reemerged, shifting into high gear from an Arab Spring to European Summer and next to an American Winter.

So today, our world is witnessing a battle of “Evil Plans,” between rulers in Arabia, Europe and America, and the masses they have betrayed.
Bottom line: You really do need an “Evil Plan.” Now. For self-defense, for counter-attacks, for survival. Things are bad out there. And they are going to get worse. Trust no one. Believe nothing you hear. Nothing. 

Obama's chief economic advisor resigning

In the "I totally called it" bin, Chairman of the White House Council of Economic Advisors Austan Goolsbee announced his resignation.  Of course, the reasons are many-fold, but the biggest one is he got tired of cheerleading a hopeless cause--the non-existent economic recovery.

When his predecessor, Christina Romer quit 9 months ago, I referenced a situation where the rats were abandoning a sinking ship.  That process is accelerating indeed--as Goolsbee's resignation occurred quicker than I had anticipated.  Things must be getting really tense in the economic war room.  Here is a list of quitters among Obama's economic dream team:  Peter Orszag, Rahm Emanuel, Christina Romer, Paul Volcker, Lawrence Summers, Sheila Bair, and now Austan Goolsbee.  I suspect the over/under on Geithner and Bernanke is still far out in the horizon, but as a speculator, I'm long Kool-Aid and pitchforks.

The financial distress the average American citizen is facing will reach a boiling point, despite government proclamations of "green shoots" back in 2009.  The public is tired of being lied to by their own government officials and the mainstream media.  The 21st century version of the American Revolution:  "Let them eat food stamps.",0,1058836.story

Monday, June 6, 2011

Insider Trading Rules That Don’t Apply To Congress

Google Trends: "QE3"

Comex Physical Silver Drops To Fresh All Time Low Of 28.8 Million Ounces, 3% Drop Overnight, 30% Drop In Six Weeks

So now we have a quantified end point for COMEX silver inventory to be depleted:  five months.

Quantifying The Treasury's Plunder Of Retirement Accounts: $80 Billion Between The G- And CSRD Funds Since Debt Ceiling Breach

James Turk's presentation on the gold price and the US dollar

JS Kim on Max Keiser, Discusses Banker Manipulation of Gold & Silver Futures

An Updated Guide To The Birds At The Federal Reserve

Fukushima mutant rabbit: Earless bunny born near radiation zone

Will The Banksters And The Corpocracy Eventually Own It All? 29 Statistics About Extreme Income Inequality In America That Will Blow Your Mind

Thanks to Kitty for finding this blog entry.

In prison for debt

Researcher: Iran can produce nuke within 2 months

Thanks to Kitty, my unofficial Chief Editor, for finding this link.,7340,L-4078778,00.html

Decline and fall of the American empire

The author got a few pieces of data wrong, but the overall presumptions could prove correct.

Markets down, gold up

Last week's bad news on the economic indicators continue to weigh down markets.  Equities, commodities, the USDollar, and the Euro are all down.  10-year US Treasury bonds are up slightly in a "slow-growth economy" mini-rally, while gold is rallying higher.  Precious metals are commodities, but they are also monetary metals.  Take heed.

Obama Fed Board Nominee Peter Diamond Discovers His Nobel Prize In Economics Is Worthless, Pulls Nomination In Disgust

A Nobel Prize in Economics sure ain't worth what it used to be.  I couldn't agree more.

Ron Paul Dismisses Boehner’s Dollar-for-Dollar Debt-Cut Demand
Republican presidential candidate Ron Paul dismissed House Speaker John Boehner’s call for spending cuts to match any increase in the federal debt ceiling. A fiscal catastrophe is coming whether or not the country exhausts its borrowing power, he said.

“I don’t take it seriously,” the Texas congressman said of Boehner’s demand. Paul predicted Congress would “go up to the last minute” before the Aug. 2 deadline and then raise the nation’s $14.3 trillion legal debt limit, yet fail to solve the problems underlying the nation’s soaring deficits.

“The catastrophe comes regardless, because as long as they encourage more spending, then we go over a cliff,” Paul said in an interview for “Political Capital with Al Hunt,” airing this weekend. “So I want to stop us,” said Paul, who said he will vote against raising the limit.

“I think there will be a credibility gap” for the other contenders, Paul said, responding to a question about potential primary opponents including former Massachusetts Governor Mitt Romney.
Voters “know that I’m leveling with them, and I’ve done it all along, and I’ve expressed these concerns for 20, 30 years,” he said.

Paul, an advocate of abolishing the Federal Reserve, said while he doesn’t expect other candidates to rally around the idea, they “won’t laugh as much as they did last time” he ran for the Republican presidential nomination.

“Just think of the difference on the attitude of the people now about the Federal Reserve,” Paul said, noting that Fed Chairman Ben Bernanke took the unprecedented step April 27 of holding a news conference to defend his policies. “It’s a failed system, and people are starting to realize this.”

Catch-22 for the Fed

California, the state built on gold prospecting, is set to outlaw ... gold prospecting

Gold, Silver Advance As Dollar Drops; Silver Inventories Keep Dropping

Even Barron's, the "smart money" mainstream edition of the Wall Street Journal, is reporting plummeting silver inventory in registered COMEX depositories.