Friday, October 29, 2010

Real Inflation vs. Obama Nation Inflation

Not much explaining necessary here.  The prices of all commodities are skyrocketing.  The rapidly devaluing U.S. dollar vs. everything will soon reverberate through to your check-out tab at Walmart and Nordstrom's.  Of course, as our system descends into Randian/Orwellian Governmental depravity, expect even less truth and more b.s. coming from all corners of D.C.  I thought Obama's main campaign promise was to make Government more transparent and truthful.

(source:  Casey Research.  Edits in red/black are mine)

The only thing that is transparent about our Government is that is has become even less transparent and more dishonest under Obama.  As this fact becomes more apparent to the hoi polloi, and as the hoi polloi finds it more difficult to provide a comfortable living environment for their families, we can expect to see even more distrust of fiat money and more people willing to pay a higher price to move what paper they have left into gold and silver.  This is why gold/silver have resumed an inexorable move higher this week.


  1. I don't believe mr. and mrs. hoi polloi can even spell gold and silver, much less buy it. I agree with Stewart Thomson when he says the general public will NOT participate in the gold and silver mania.

    Let's face it man, the general public is clueless (and choose to remain clueless) about why gold and silver prices are sky rocketing.

  2. Maybe producers have no pricing power??? LOL

    the CPI is the biggest fraud of all, bigger than foreclosuregate even.

  3. I'm wondering how long it will take for the price of raw commodities to show up in the price of finished goods? Whilst I've experienced some price increases and some shrinking pack sizes, I haven't seen many 40% plus increases. As things stand some companies are taking a hit to the bottom line, instead of passing costs on to the consumer, also many are re-designing production processes, or looking for substitutions. Iceland did get 40% price increases due to the currency collapsing, but if the currency doesn't collapse, price increases would be more gradual wouldn't they?

  4. Dave,

    Can you name some stocks that you like that are highly leveraged to the silver price besides SDRG?

    Ricky T

  5. Dave get with the program... The price of electronic items coming down is more important than rice and wheat going up.

  6. Change we can believe in, and where is this headed? All one need do is look at what is happening in France right now.

    Joe M.

  7. Ricky T. I like and own ECU (ecuxf) silvercorp (SVM) hecla mining (HL). they are all 3 pure silver plays. ECU may well be developing would could end up being the world's largest silver deposit.

    Please call Steve Altmann, COO, for the story. His number is on his website and he always returns phone calls.

  8. Joe, we're not too far from a breakdown in the social fabric here. There is already isolated forms of unrest occurring that do not get reported nationally in the media. It's going to get really ugly though.

    The average clueless, "Elmer Fudd" American has no idea just how close this country is to completely collapsing. I'm not saying it's going to happen tomorrow. With some hyper-printing of the currency, they can hold this together longer than we think. But the eventual results will be even worse.

  9. Dave- What's your take on the most precious metal of them all, the Silver and Black baby! We are at an all time high and only trending higher. Still time to hop on this bandwagon to make a killing. Now excuse me while I go back to my shed of dry ice.

    Commitment to excellence.

  10. Let's face it man, the general public is clueless (and choose to remain clueless) about why gold and silver prices are sky rocketing.


    Agree. Funny never any mention of the other precious metals..You know!...Brass and lead.
    ( wink )

  11. Dave,
    I stumbled upon following para at Harvey Oragan's Blog

    "The IMF initially in 1947 announced that the gold they hold and "received" from member nations were stored at the following central banks:

    1. Bank of France
    2. Federal Bank of New York
    3. Bank of England..and strangely:
    4. Bank of India.

    What I am inferring is this:- the IMF 200 ton gold is being returned/sold from what was pledged long back to IMF by India, and which was at NY FED's custody. And hence the sale could not take place to china or any other nation. (In all probabilities this is just a book entry and no physical has changed hands, my hunch.)

    Harvey's blog also contends that :- "It seems very strange that the only countries buying gold from the IMF are from the India area."

    I add here, country names i.e. Mautitious, Bangaladesh, Nepal, Sri Lanka etc. What I can say with confidence about mauritious is that it is nothing but finantial gateway to India for dirty/clean money.

    Now all this is coming from NY FED regarding the names of countries who are holding their gold in World Trading Centers, read Bundesbank here.

    Can you analyze/infer this further.

    From India

  12. Hey Dave,

    It just donned on me after I pressed the post button that ALL of the 400 ton gold was belonging to India and stored in India for IMF.

    Spreading news about sale of IMF gold is just to con the market. No physical Gold entered market. All the Gold was sitting in Reserve Bank of India vaults in India itself.

    May be all neighboring countries may have swap arrangements with India as India is investing heavily in these countries and financially helping these countries.

    Oh my God !!!

    It was wrong on Jim Ricards part to say that, selling Gold to India was strategic decision to deprive China of any Gold.

    Let me know if you think the same.

    From India

  13. Ricards doesnt fully understand the gold story. He thinks the U.S. still has 8100 unemcumbered tonnes.

    Yes, the India gold thing did not involve the actual movement of gold. It was India paying the IMF dollars in order to take back its gold pledged to the IMF. So the sign on the gold sitting in the reserve bk of India just had the sign on it changed.

  14. Hate to mess with you Dave but I did a Prime Rib today if you want to see the pictures! You may not want to!

  15. HOT: Iran has Switched 15% of Its FX Reserves Into Gold
    Iran has switched some 15 percent of its foreign exchange reserves into gold and will not need to import the metal for the next ten years, Mehr, the state-run news agency said reported, citing Central Bank Governor Mahmoud Bahmani.

    Iran’s gold reserves have “multiplied several times” in the past two years, Gov. Bahmani said in a report published late yesterday by Mehr and reported by Bloomberg.
    Bahmani gave no specific figures, only saying the country consumes 30 tons of gold a year and that the central bank will have “ample supplies for the next 10 years” even if it doesn’t increase its gold holdings further.

    Iranian President Mahmoud Ahmadinejad said yesterday his country’s foreign exchange reserves exceed $100 billion.
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