Friday, September 30, 2011

States to Financially Break Away from Federal Government

I received this email this morning from Ron Hera about how states are establishing their sovereignty and getting ready for the mathematically inevitable collapse of the dollar.  Besides Utah 12 other states proposing gold and silver legal tender laws Colorado, Georgia, Montana, Missouri, Indiana, Iowa, New Hampshire, Oklahoma, South Carolina, Tennessee, Vermont and Washington. Ron Paul is sponsoring HR 1098 for competition of currencies.   This ties in very well with my ultimate solution I have planned.  Please read this and understand a new monetary paradigm is coming for all, so start getting ahead of the curve.


This is the most important message I have ever sent.  I urge you to read it and to share it with others.

Earlier this week I attended the Utah Monetary Summit in Salt Lake City, Utah.  As you may know, the state of Utah passed a Legal Tender Act earlier this year authorizing the use of federally minted gold and silver coins as money in the state of Utah.  Now, legislators in other states, many of whom attended the Monetary Summit, are evaluating similar legislation.

Among other things, this means the United States is approaching a Constitutional crisis because states are beginning to financially break away from the federal government.  This is no less serious than the American War of Independence or the War Between the States.  The Utah Monetary Declaration (below) is a financial declaration of independence whereby states are beginning to opt out of the Federal Reserve System.  A major confrontation seems inevitable.

The issues underlying this historic development include:

1.  The unsound condition of large U.S. banks, which have inaccurate and crumbling balance sheets along with $250 trillion in high-risk OTC derivatives contracts;

2.  The unstable nature of the U.S. and world financial systems, characterized by unworkable levels of sovereign debt and private debt and by over $600 trillion in OTC derivatives liabilities;

3.  The excessive levels of federal government debt and unfunded liabilities combined with falling federal tax revenues prior to the start of the double-dip recession that began in the second half of 2011;

4.  The radically inflationary monetary policies of the federal government and of the Federal Reserve, which promise high inflation or hyperinflation in the future;

5.  The worsening condition of the real U.S. economy outside of large banks, multinational corporations, and Wall Street firms, where federal government bailouts and Federal Reserve monetary easing (money printing) transfer wealth from proverbial Main Street to literal Wall Street;

6.  The rapidly escalating polarization of the distribution of wealth, which threatens not only the economic stability of the United States but also its social and political stability; and

7.  The current, highly inflationary monetary system is plainly unfair and fundamentally immoral.

Thursday, September 29, 2011

Wall Street Protest Growing

The Teamsters Union and New York Transit Workers Union have thrown their support behind the Wall Street protests.
Alexander Higgins – reporting live from the protests – notes that United Airlines pilots marched in the protest wearing their full pilot uniforms:
blank Wall Street Protest Growinggrreb Wall Street Protest Growing

True Conservatives Support Protest

This may seem at first glance like a liberal cause, but as I’ve previously noted, that is a false dichotomy, and true conservatives support it:
The whole left-versus-right thing is just a distraction trick. It’s really the American people versus the giant bankers, captains of the military-industrial complex, and handful of others who are benefiting by shafting the average American.
Remember that one of the founders of the Tea Party – Karl Denninger – has slammed the current Tea Party (which was quickly co-opted by the mainstream GOP) for serving the rich and the Republican party instead of fighting against the giant banks, and is calling for non-partisan, Gandhi-style nonviolent resistance to take on the banskters.
And see this.

Protests Spreading World-Wide

The protests are spreading world-wide. There are now purportedly 80+ copycat protests planned world-wide, including London, Chicago, Los Angeles, Boston, Las Vegas and many other locations.

Wednesday, September 28, 2011

Corruption is Worldwide

Around 11:15 this morning, I left my flat and headed towards the Cape Town Gold Coin Exchange to check out their kruggerrand prices today.

(Note: They charge around 10% over spot, and buy coins for about 1% over spot. This is inclusive for all major coins that they carry. They have kruggerrands, eagles, and maple leaf coins in stock.)

I was sitting at a red light not too far from the new football stadium they built for last year's World Cup tournament, when suddenly all the traffic lights went out. I thought it was just a weird anomaly, so I proceeded cautiously.

By the time I reached the coin shop, I realized that the whole city was without power. Again. Entire buildings had shut down, stores closed, and schools let out. It was a full-blown blackout... and it lasted for several hours.

This sort of thing is not uncommon in South Africa. Politicians will tell you that electrical demand is outpacing supply because of the country's rapidly growing economy. That's one way to put it-- lemons into lemonade.

But give that excuse to the nearly 50% share of unemployed youths... or the 1 in 6 people who don't even have electricity, and you'll get a slightly different view.

A few years ago, the major mining companies in South Africa approached the government with a clearly stated problem. South Africa's power grid was failing... and without major investment and political attention to the issue soon, the mining companies wouldn't have the resources they needed to continue producing.

Bear in mind that the mining sector is one of South Africa's most important economic drivers. They are the nation's leading employers and exporters, so you'd think that their pleas for critical infrastructure investment would be heeded.

Here's the thing-- political corruption is rampant everywhere. In the developed world of North America and Western Europe, though, politicians are skillfully subtle at their corruption.

Money rarely changes hands in the light of day, but rather gets funneled through campaign contributions, use of corporate perks, and special 'consultancy' fees upon retirement. These guys get their rewards under the table and after they leave office.

In South Africa, though, the corruption is blatantly obvious. It's almost insulting. The politicians here must think their citizens are so stupid, they won't notice massive financial aberrations.

Julius Malema is a great example. As President of the African National Congress Youth League, Malema draws a small government salary.  Yet somehow he drives around in multiple $100,000+ sports cars and owns multi-million dollar homes.

Tuesday, September 27, 2011

Its Only For Your Protection

On the first page of my US passport, for instance, it says:

"The Secretary of State of the United States of America hereby requests all whom it may concern to permit the citizen/national of the United States named herein to pass without delay or hindrance and in case of need to give all lawful aid and protection."

Sounds nice enough, right? It sure is great to know the government has our back to make sure we're safe and sound.

What a total farce. The passport isn't about the State Department 'protecting' us anymore than Homeland Security fondling 4-year old girls at the airport. It's about control.

Why else would they implant RFID chips inside passports, or require biometric data like fingerprints and iris scans?  These are all things that have significant costs... but absolutely zero benefit to taxpayers.

What's more, these days you can't even leave most countries unless you have a passport... ergo you're forced to APPLY to the government and give them a host of personal and biometric data just to be able to leave the country when you want. Land of the free?

Oh, and speaking of free, it ain't. I've had fresh pages inserted into my passports so many times, I keep watchful eye on the ever-increasing cost of doing so.  Just over 2-years ago, it cost me nothing at the consulate in Panama. Last year, around $40.  Today in Cape Town? $82.

Needless to say, this is pretty significant price inflation from a government that pretends inflation doesn't exist. And I'm pretty sure everyone on the planet can think of better ways to spend three hours and 82 bucks than on furthering a pointless bureaucracy.

Monday, September 26, 2011

Your Silver Pacifier

There is massive fear in the silver market. Every time the price of silver moves down a tick the sweat begins to bead up on the brows of silver investors and the dark FEAR of investing doubt fills their thoughts. "Oh my God, have I made the wrong decision again?"..."What was I thinking buying silver when it was so close to it's all time high price?"..."Maybe I should sell some silver to take some of my winnings off the table". Ultimately it is FEAR and not GREED that drives the big moves in price of all investments and right now FEAR is the motivator for silver investors. But very soon that same FEAR will be the driver of silver blasting off to the moon!
If you are strong enough to remove the FEAR from your mindset the picture of what is happening to the price of silver is much more clear. As a matter of fact, we have seen this price action for the last 10 years over and over and over again. Silver has risen and fallen to extremes consistently all the way up to $50/oz. The mainstream media loves to point out how silver is "much more volatile" than gold and is a much riskier investment. Of course they never give reasons as to why a commodity with very, very stable mine production and stable industrial consumption is so volatile. They are hoping that you are not smart enough to ask the important is the silver market rigged? And if so how is it done, why are they doing it and when will it end?
For those who follow my work at you understand the answers to these questions and are not swayed by the volatility of silver. For those unfamiliar with the Road to Roota Theory I'd suggest you read this article that explains it but FAIR WARNING...this may shatter your illusions of "Free Markets" and how the world is SUPPOSED to work!

Saturday, September 24, 2011

Five Banks Account For 96% Of The $250 Trillion In Outstanding US Derivative Exposure; Is Morgan Stanley Sitting On An FX Derivative Time Bomb?

The latest quarterly report from the Office Of the Currency Comptroller is out and as usual it presents in a crisp, clear and very much glaring format the fact that the top 4 banks in the US now account for a massively disproportionate amount of the derivative risk in the financial system. Specifically, of the $250 trillion in gross notional amount of derivative contracts outstanding (consisting of Interest Rate, FX, Equity Contracts, Commodity and CDS) among the Top 25 commercial banks (a number that swells to $333 trillion when looking at the Top 25 Bank Holding Companies), a mere 5 banks (and really 4) account for 95.9% of all derivative exposure (HSBC replaced Wells as the Top 5th bank, which at $3.9 trillion in derivative exposure is a distant place from #4 Goldman with $47.7 trillion). The top 4 banks: JPM with $78.1 trillion in exposure, Citi with $56 trillion, Bank of America with $53 trillion and Goldman with $48 trillion, account for 94.4% of total exposure. As historically has been the case, the bulk of consolidated exposure is in Interest Rate swaps ($204.6 trillion), followed by FX ($26.5TR), CDS ($15.2 trillion), and Equity and Commodity with $1.6 and $1.4 trillion, respectively. And that's your definition of Too Big To Fail right there: the biggest banks are not only getting bigger, but their risk exposure is now at a new all time high and up $5.3 trillion from Q1 as they have to risk ever more in the derivatives market to generate that incremental penny of return.

Friday, September 23, 2011

We’re In A Global Recession: Why This Crash Should Have Come Sooner

A confession: I’m too excited, nervous, and agitated to start this post cleverly, so let's just get to the economic heart of things.
As anyone with a financial pulse knows, yesterday specifically and this week generally marks, well, the beginning of the end.  The end of geo-political economic optimism, hope, and confidence. And, at least for me, this moment could not have come soon enough.
Bloomberg outlines the financial carnage in Global Stocks Drop 20% Into Bear Market as Debt Crisis Outweighs Profits: “Stocks fell, pushing the MSCI All- Country World Index of 45 nations into a bear market for the first time in more than two years, after the worsening European debt crisis and threat of a U.S. recession erased more than $10 trillion from equities since May.”

Read more: Click on HEADING ABOVE

Thursday, September 22, 2011

ROUBINI: Recession Is At This Point Unavoidable, And It Could Be Worse Than 2008

Nouriel Roubini is calling it this morning, following a bout of dismal economic data around the world. Europe and the U.S. are "effectively in recession" and there's nothing policy makers can do to save them.

@Nouriel tweets:

Economy already in recession. Whatever the Fed does now is too little too late
UK in double dip @MarkitEconomics: CBI Trends total orders at -9 in. UK Man PMI highlights real weakness in order books
EZ in recession @MarkitEconomics: Flash Eurozone Composite PMI comes in below consensus for the 4th time in past 5 mths
China slowing @MarkitEconomics: release saw HSBC Flash China Man PMI remain <50 at 49.4 (Aug:49.9). Output index also <50 at 49.2 (Aug:50.2)
US, Eurozone and UK are effectively in a recession now. And policy makers are running out of policy rabbits to pull out their policy hats
RGE ( predicted in July a 60% probability of recession in most advanced economies. By now that probability is much higher.

Wednesday, September 21, 2011

8 Reasons Why The Great Depression Is The Best Case Scenario

We are on the verge a collapse far greater than the Great Depression and we are far less capable of taking car of ourselves. Our way of life is dangerously dependent upon the ability for us to create unlimited amount of debt and the willingness of others to buy that debt. This way of life has a mathematically inevitable end and things that cannot go on forever, won’t.

Let us look a 8 reasons why the Great Depression is the best case scenario and also look at how difficult the Depression was for people who were far more prepared to deal with a harsh world.

Back during the Depression most of America could feed themselves with farming, now we only know corporate frankenfood.
Back then people only knew of real wealth, now we think the digits in our brokerage account in wealth.
Back then people had a strong family on community support systems, now we live little lives of narcissism.
Back then people had a strong spiritual strength, now we have chemically induced denial.
Back then people were of fit body and strong mind, now we are obese and willfully ignorant.
Back then people had a classical education to help them figure things out, now we wait for answers.
Back then people had a real economy, now we have a consumer/debt economy.
Back then people did physical activity for fun, now we have entertainment that turns us in to mental and physical mush.

I would like you to take a few seconds to look at the faces of shame in these photos from the Great Depression. Look at the face of these people and ask yourself, do you think that if given the chance to do something different than the path they chose before the depression?

Do you think that these people were aware and prepared for a collapse?

Did they have the mental or physical assets in place to deal with a new paradigm?

What makes you think that you are better than these Americans?

Tuesday, September 20, 2011

Europe’s struggle to survive: A devastating human toll

Markets may be focused on Europe's struggle to bring its debts under control, but on the streets there's a struggle to survive.
The financial crisis, recession and, now, harsh cutbacks have led to despair amid wretched levels of unemployment and ever greater austerity measures in the Old World. Pushed by markets and ratings agencies, governments are demanding more and more from their people. Consider that:

Reported suicides in Greece have just about doubled during the country's crisis, The Wall Street Journal notes today.
Greece is hobbled by a jobless rate of about 16 per cent, Spain by about 20 per cent.
According to reports last week, some drugs, including those used to fight cancer, have been withheld from some Greek hospitals that are late in their payments.
Emigration, oft cited as the blight of Ireland, is rising sharply, according to the country's Central Statistics Office.

Monday, September 19, 2011

Life After An EMP Attack: No Power, No Food, No Transportation, No Banking And No Internet

Most Americans do not know this, but a single EMP attack could potentially wipe out most of the electronics in the United States and instantly send this nation back to the 1800s. If a nuclear bomb was exploded high enough in the atmosphere over the middle part of the country, the electromagnetic pulse would fry electronic devices from coast to coast. The damage would be millions of times worse than 9/11. Just imagine a world where nobody has power, most cars will not start, the Internet has been fried, the financial system is offline indefinitely, nobody can make any phone calls and virtually all commerce across the entire country is brought to a complete stop. A nation that does not know how to live without technology would be almost entirely stripped of it at that point. Yes, this could really happen. An EMP attack is America's "Achilles heel", and everyone around the world knows it. It is only a matter of time before someone uses an EMP weapon against us, and at this point we are pretty much completely unprepared.

The sad thing is that we are spending hundreds of billions of dollars hunting down "terrorists" in caves on the other side of the globe and we have been told that because of "national security" it is necessary for our private areas to be touched before we are allowed to get on an airplane, but our government is doing essentially nothing to address what is perhaps our biggest security vulnerability.

What would you and your neighbors do if the power went out and it did not ever come back on?

What would you do if an EMP attack happened in the middle of the winter and you suddenly were not able to heat your home any longer?

What would you do if all the electronics in your car got fried and you simply could not drive anywhere?

Sunday, September 18, 2011

Economic Collapse a Mathematical Certainty

The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money. Our wealth,our work,our food,our government,even our relationships are affected by money.
No money in human history has had as much reach in both breadth and depth as the dollar. It is the de facto world currency. All other currency collapses will pale in comparison to this big one. All other currency crises have been regional and there were other currencies for people to grasp on to.
This collapse will be global and it will bring down not only the dollar but all other fiat currencies,as they are fundamentally no different. The collapse of currencies will lead to the collapse of ALL paper assets. The repercussions to this will have incredible results worldwide.

Saturday, September 17, 2011

Watch Out For "Tomorrow"

The Spanish government has decided to impose a wealth tax that will affect 160,000 people and raise up to $1.48 billion per year. This is one of those things that shows how politicians will make decisions that immediately affect people, forcing them to pay for years of mistakes and incompetence by their nation's leaders.

This sort of measure has immediate effect on people who are still trapped inside.

If you see the writing on the wall, but keep kicking the can down the road instead of taking action, take heed:

You can wake up tomorrow to a different reality... Just like 160,000 people in Spain who were caught off guard.

Friday, September 16, 2011

The $1 trillion student loan market begins to implode – Department of Education shows two-year default rates at for-profit colleges up to 15 percent. Student loan debt increasing at a rate of $170,000 per minute.

We seem to have entered an era of perpetual and unshakeable financial bubbles and the next ripe bubble to burst is in the student loan market.  Student loan debt has become the fastest growing debt sector throughout the economic recession.  Growth at for-profit colleges has been incredible and tactics used at these institutions reflects patterns seen with the subprime mortgage operators.  They target low income markets and exploit government backed loans and pump them through local area lenders.  It is a bubble of mammoth proportions and it is no surprise that data released by the Department of Education only a few days ago reflects a default pattern reminiscent of the subprime crisis.  Default rates on student loans at for-profit institutions are absolutely abysmal.  There is no question now that the student loan bubble is now the next market to pop.  What will be the consequences of the $1 trillion student loan market contracting?

Thursday, September 15, 2011

Donald Trump Accepts 96 Ounces of Gold as Payment for Real Estate

On Thursday, the newest tenant in Donald Trump’s 40 Wall Street, a 70-story skyscraper in Manhattan’s Financial District, will hand Mr. Trump a security deposit worth about $176,000. No money will change hands—just three 32-ounce bars of gold, each about the size of a television remote control.
The occasion will mark the first time the Trump Organization has accepted 99.9% pure gold bullion, rather than cash, as a deposit on a commercial lease. The tenant, precious-metals dealer Apmex, will sign a 10-year lease for 40 Wall’s 50th floor at a leasing rate of about $50 a square foot, according to Apmex Chief Executive Michael R. Haynes. The company is promoting the use of gold as a replacement for cash in some situations.
“Gold has been a valuable asset class for the last 10,000 years, but the world has drifted away from it,” Mr. Haynes says. “I figured, Trump is a smart guy, and he’ll realize that taking gold is a better idea than taking cash.”

Wednesday, September 14, 2011

What happens when a nation goes bankrupt

Three years ago today, my best friend called me and told me to turn on my television. I remember the way he described it– “Lehman is finished.”  The TV showed guys packing up their desks on Sunday afternoon, moving out of their offices forever.
That was the precipice from which financial markets plunged the following day, taking the global economy along for the next three years.
We appear to be at that moment once more.
Greece is out of cash. Again. The Greek Deputy Finance Minister said on Monday that his country only has enough cash to operate for a few more weeks.
As I write this note, French, German, and Greek politicians are all on a conference call, feverishly trying to figure out a way to avoid default.  Everyone seems to understand the consequences at stake… given the chain of derivatives out there, a Greek default will completely dwarf the Lehman collapse.
Unfortunately for the bureaucrats, dissent against the Greek bailout plan is spreading across Europe… and leaders can no longer ignore the growing wave of opposition in Finland, the Netherlands, Austria, and Germany.

Tuesday, September 13, 2011

In Hungary, the Jobless Go to Labor Camp

Wielding scythes and pitchforks, about 30 men and women hack through brambles on a hillside above the Hungarian village of Gyöngyöspata. With the nearest road more than a half mile away, workers have to hike in with food and water for the day. For bathroom and lunch breaks, they duck into a thicket that offers the only shade in the 98F heat. “It’s degrading to work in these conditions,” says Károly Lakatos, a 38-year-old father of three who was laid off earlier this year from his forklift-operator job in an auto parts factory. When his unemployment benefits ran out, the government assigned him to a brigade clearing land owned by the village.
If Prime Minister Viktor Orbán has his way, hundreds of thousands of Hungarians will soon join similar squads. Under a plan approved by Parliament in July, by 2012 some 300,000 people will be working in community service jobs—doing everything from picking up trash to building stadiums—instead of drawing welfare or unemployment benefits. Hungary will no longer “give benefits to those capable of work, when there is much work to be done,” Orbán said in June. The effort is part of the ruling Fidesz Party’s 2010 election pledge to create 1 million jobs over the next decade.

Sunday, September 11, 2011

Fukushima Is Continually Blasting All Of Us With High Levels Of Cesium, Strontium And Plutonium And Will Slowly Kill Millions For Years To Come

Fukushima is now far and away the worst nuclear disaster in all of human history.  Chernobyl was a Sunday picnic compared to Fukushima and the amount of cesium-137 released at Fukushima this year so far is equivalent to 168 Hiroshima bombs.  The crisis at Fukushima is far, far worse than you have been told.  We are talking about multiple self-sustaining nuclear meltdowns that will not be fully contained for years.  In an attempt to keep people calm, authorities in Japan (and around the rest of the world as well) have lied and lied and lied.  Over the months that have passed since the disaster began, small bits of the truth have slowly started to come out.  Authorities are finally admitting that the area immediately surrounding Fukushima will be uninhabitable indefinitely, and they are finally admitting that the amount of radioactive material that has been released is far higher than initially reported.  It is going to take the Japanese years to fully contain this problem.  Meanwhile, Fukushima will continue to blast all of us with high levels of cesium, strontium and plutonium and will slowly kill millions of people around the globe for years to come.
These days, the mainstream media does not talk about Fukushima much.  The reality is that there have been a whole lot of other disasters for them to talk about.
But just because Fukushima is a nightmare that is playing out in very slow motion does not mean that it does not deserve our full attention.
To get an idea of just how nightmarish Fukushima has turned out to be, just consider the words of nuclear expert Steven C. Jones....
By way of comparison, the Chernobyl nuclear disaster that occured in 1986 in the Ukraine, Russia- heretofore the worst nuclear disaster on record- burned for 10 days and cumulatively killed an estimated 1 million people worldwide. The Fukushima, Japan nuclear disaster has 5 nuclear reactors burning, 2 in partial meltdown and 3 in full meltdown- and they've ALL been uncontrollably burning since March 11th. Its been over 3 months and this nuclear disaster remains completely out of control. In fact, some industry estimates cite the possibility that these meltdowns will be contained (optimistically) in 1-3 years, at the very earliest.
The amount and intensity of the radioactive fallout from this particular nuclear disaster will assuredly kill hundreds of millions of people worldwide over time. Japan itself is, of course, the epicenter of this radioactive contamination that has spread out from these reactors.
Keep in mind that radioactivity from the Chernobyl disaster deeply contaminated 77,000 square miles.
So if Fukushima is many times worse, what does that mean for us?

Friday, September 9, 2011

The Idea Of Unattainable Silver Is Catching On

Articles promoting $500, $1,000 or $12,000 silver price targets miss the whole point of buying silver. We are investing in silver not to get more fiat currency in the future, we are invest for the mathematically inevitable collapse of fiat currency. I put this crazy little theory out there in my first blog post at the beginning of the year about silver not being available at any price. The ideas was based upon a few factors.
  1. Silver has been used and abused as a industrial metal so much that all of the major stockpiles of silver have been exhausted. (Read the Silver Bullet and the Silver Shield.)
  2. The fraud in the paper markets is so rampant that they could never deliver all of the metal they say they have. (Read the Case for a 1:1 Gold to Silver Ratio.)
  3. The mathematically inevitable collapse of the of the dollar, the world’s currencies, stocks, bonds, pensions, insurance, and Real Estate the mass of humanity would rush into real tangible assets except those that hold the metal will no longer sell for paper that they did not want years earlier. (Read the 11 Mentality Shifts of Silver Investors.)
  4. The Industrial Demand of silver will soon be eclipsed by the Investment and Monetary demand of silver. (Read the 3 Demands of Silver.)
Rob Kirby wrote an excellent piece yesterday called the Silver Siren: Reversion to Reality. In it he lays out the case for silver reverting back to the reality that its is a precious metal first and foremost. This reversion to reality that will coincide with the collapse of the dollar.
“This brings us to another unfortunate but logical conclusion: we are very likely fast approaching the day when REAL gold and silver will not be obtainable with fiat money – period.” -Rob Kirby
Now that the idea is starting to creep into the investor mindset, it makes it all that more inevitable. I wrote my Final Warning and I have personally helped an estimated $4 to $5 million dollars into physical silver with my final Strategy Sessions over the past week. This is small potatoes compared to the trillions of dollars of paper assets out there, but it is going to mean the world to those that did make the jump.
One other point I want to make…
APMEX announced yesterday that it would no longer be doing their affiliate program in two weeks. So no more APMEX ads all over the internet. I wrote in the 11 Mentality Shifts of Silver Investors that smart retailers would at some point not sell their metal for dollars, because they will realize that what they have in inventory is far more valuable than the dollars they could receive.Retailers only make money on the spread, but if they cannot source what they sell, then the market freezes up from the supply side just as the demand side heats up. I believe this move by APMEX  is part of that shift, because affiliate programs are a very cost efficient way of advertising. I did not get a very good answer why from my girl at APMEX, but logic would dictate that APMEX either has too many customers or not enough supply, either way it looks bullish to me.

Thursday, September 8, 2011

Government Takes Away Gold and Our Rights

It is a sad indictment of the dictatorial policies of the U.S. government when an honest citizen has to fear confiscation of his or her private property, but that is today’s reality in Police State America.
An official policy continues of wanton confiscation of gold and gold coins by U.S. government agents, not only from innocent travelers, but in lawsuits against legitimate gold coin owners.
With the gold price nearing $1900 an ounce today (Aug. 22) it appears that the feds will go right on grabbing all they can.
In spite of the fact that ownership and possession of gold is fully legal for Americans government agents are seizing gold from innocent people, offering no justification and with no complaints from Obama administration officials. The bureaucrats even refuse to explain what Americans must do to avoid their attacks on private property.
Case in point: in May 2010, an individual asked the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) whether or not he was required to file one of FinCEN’s own forms, U.S. Treasury Form 105, when and if he transported an unspecified quantity of Canadian Maple Leaf silver coins across the U.S. border. A year later when the bureaucrats at FinCEN finally got around to replying they said they wouldn’t tell him because they did not give individual case opinions!
ICE Airport Seizures
Also in May 2010 I reported to you that U.S. Immigration and Customs (ICE) agents and Border Protection officers at the Houston, Texas at Bush airport seized almost $160,000 in gold and silver in 14 separate seizures from individual travelers during that month, none of which was involved in any criminal activity. Reason given: failure to file an obscure form called a “Shipper’s Export Declaration Form.”
My colleague, Mark Nestmann has written about Mexican airport police and customs officers also seizing gold coins from innocent travelers.

Wednesday, September 7, 2011

The Worst Is Yet to Come

When times get desperate; as the economy crumbles; as it becomes clear the progressive scam is ending; the oldest trick in the book is to demonize the victims. It has only just begun.

So with this successful track record, I thought perhaps a few more predictions from my crystal ball would be helpful:

Europe is within days of a massive economic implosion that will put the entire global economy at risk of economic disaster. The Greek bailout is now in tatters. The EU is about to break apart. European banks are insolvent. There isn’t enough money in all the world to save the EU. This will set off a chain reaction of epic proportions across the globe.
At least the EU downfall is good for one thing. They are Exhibit A proving that the toxic cesspool of big government, big taxes, big spending, big unions, fat pensions, early retirement, and too many people working for government is poison to any country’s economic survival. The EU experiment proves that government is too big to succeed. Unfortunately Obama’s model for America is Europe.
The bad news is Europe won’t go down without a fight . . . with America’s money. The result of this economic Armageddon will be “the mother of all bailouts.” I predict Bernanke and the Fed will team with central bankers all over the world to create the biggest coordinated economic rescue in world history.

Call it QE3. Call it “the mother of all bailouts.” Call it “Stimulus Squared.” The name doesn’t matter. The dollars involved will be the headline grabber. Trillions of dollars of artificial money will be pumped into the system in a desperate attempt to save the world economy. This will be the biggest government intervention in world history. And as always — it will fail miserably.

Read more on The Worst Is Yet to Come

Tuesday, September 6, 2011


Holy Red Screen, Batman! If you haven’t seen the news, the Swiss National Bank has just announced that it is putting a ceiling on the franc’s appreciation against the euro… effectively abandoning its economic sovereignty and putting its future in the hands of woefully corrupt and incompetent bureaucrats.

On the news, the franc fell off a cliff, dropping almost 10% INSTANTLY. Gold priced in Swiss francs jumped from 1497 to 1620 per troy ounce, all in about 45 seconds.

Precious metals are now all alone as the only forms of sound money that are truly safe havens.

Just 6-weeks ago on July 27th, in a letter entitled “Should I buy gold at its all-time high”, I wrote:

“Even stronger currencies like the Swiss franc have limits to their appreciation. At some point, the Swiss National Bank will impose capital controls to thwart the rise of its currency. . . [Y]ou’ll probably feel like a sucker for not buying gold at $1600 when you still had the chance.”

Since then gold has soared roughly 20%, and as of this morning, the SNB has imposed capital controls to thwart the rise of its currency.

This is just the beginning.

The Swiss government has basically told the world that they will print as much money as it takes, and buy up as much crap sovereign debt as they can, to competitively devalue the currency.

Friday, September 2, 2011

Even Goldman Sachs Secretly Believes That An Economic Collapse Is Coming

Goldman Sachs is doing it again.  Goldman is telling the public that everything is going to be just fine, but meanwhile they are advising their top clients to bet on a huge financial collapse.  On August 16th, a 54 page report authored by Goldman strategist Alan Brazil was distributed to institutional clients.  The general public was not intended to see this report.  Fortunately, some folks over at the Wall Street Journal got their hands on a copy and they have filled us in on some of the details.  It turns out that Goldman Sachs secretly believes that an economic collapse is coming, and they have some very interesting ideas about how to make money in the turbulent financial environment that we will soon be entering.  In the report, Brazil says that the U.S. debt problem cannot be solved with more debt, that the European sovereign debt crisis is going to get even worse and that there are large numbers of financial institutions in Europe that are on the verge of collapse.  If this is what people at the highest levels of the financial world are talking about, perhaps we should all start paying attention.
There is a tremendous amount of fear in the global financial community right now.  As I wrote about the other day, the financial world is about to hit the panic button.  Things could start falling apart at any time.  Most of these big banks will not admit how bad things are publicly, but privately there is a whole lot of freaking out going on.
According to the Wall Street Journal, Brazil believes that "as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China's growth may not be sustainable."

Thursday, September 1, 2011

Obama's Plan To Save The Country: Get Ready For More Debt And More Failure

Please note: in the 3 years that Obama has been President, the outstanding amount of Government debt has increased by 40%. Nominally that number is $4 trillion. But wait, as I was discussing with someone last night, Obama also added $7 trillion in Fannie Mae/Freddie Mac debt to the Treasury debt-load, but this is still counted as "off-balance-sheet." I guess because there is hope that one day the housing market will recover enough to start paying off that debt. BUT, in reality, the Taxpayer debt burden under Obama has actually climbed - not from $10 trillion to $14 trillion - but to $21 trillion when you include the FNM/FRE debt, which technically needs to be included.

There's a statistic compiled by the IRS that shows 54% of the population is expected to pay 100% of the Federal taxes paid by individuals this year. Think about what the means for a minute. If you are one of the 46% of the U.S. population who does not pay taxes, you don't care if the Government spends money like Obama is proposing because it doesn't come out of your pocket. It's not food taken away from you or your family and given to someone else. To me that is a stunning reality about how badly the incentives are skewed in our system and it's why the Government can continuously implement spending programs that transfer wealth from the the Taxpayers to non-taxpayers and the elitists with little resistance from the masses: FORTY-SIX PERCENT of the country either benefits directly from this wealth transfer OR does not help to fund it or both. Think about that if you are one of the 54% who actually pays taxes.

I recall that in 2002, when a close colleague and I were discussing how we thought the collapse of the system would unfold. So far what we outlined has largely unfolded, only it's taken several years longer to occur than we originally envisioned. I remember him saying that "eventually we are going to see things that will blow our mind." I can truly say that the way the last three years under Obama have unfolded - and the incredible, tragic acceleration in fraud and massive theft of middle class wealth enabled by him - has truly blown my mind.

Be prepared because it's going to get a lot worse.