And here's to an even better year in 2011 for gold and silver - ENJOY:
Friday, December 31, 2010
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What's the solution?
www.moneyandmarkets.com
Undisclosed exploration site
1 oz. Chinese Panda
1 oz. Gold Eagles
I'm not worried about how high in price gold is going, I'm worried about what the world around us will look like when it gets there
Eric Arthur Blair aka George Orwell
"Hope" is not a valid investment strategy
Full Time Jobs Over Last 5 Years
Is Your Gold Missing?
Why Gold?
Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.
Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")
Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")
Got Gold?
GOLD IS MONEY...
EVERYTHING ELSE IS CREDIT
- J.P. Morgan
CONTACT ME:
QUOTE of the Year
Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants - but debt is the money of slaves
-Norm Franz, "Money and Wealth in the New Millenium"
-Norm Franz, "Money and Wealth in the New Millenium"
Blog Archive
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2010
(339)
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December
(18)
- Happy New Year Everyone (Felice Anno Nuovo A Tutti)
- Was The Jobless Claims Number Good? Don't Get Too...
- The U.S. Mint Has Suspended Production Of Silver E...
- Is The U.S. Dollar About Ready To Take Another Spill?
- Gold Has Been A Terrible Investment?
- IMF Done Selling Gold - Look Out Above?
- The U.S. Dollar: Backed By The FULL FAITH AND CRE...
- Will The U.S. Hit The Wall In 2011?
- The Most Important Commentary You Will Read All Year
- Muni Update: If You Are Still In Them, You Can St...
- Inflation And The Retail Sales Fantasy...
- That Rush Into Gold/Silver You Hear Is Not Coming ...
- ROFLMAO
- Two Great (Quick) Reads For Your Weekend Pleasure
- Che Cosa Ora? What Now?
- You Have To Be Kidding Me...
- OOPS: Employment Report vs. Expected Number
- Some Random Musings/Thoughts Late Thursday Night...
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December
(18)
Epic Quote - "Jesse" Sent This To Me
"The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title."
- Anonymous
- Anonymous
The Basic Fundamental Problem
What's the solution?
“THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS THE RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION OR LATER AS A FINAL AND TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED.”
Ludwig von Mises – Austrian Economist (1881- 1973)
Ludwig von Mises – Austrian Economist (1881- 1973)
Quote Of The Month Courtesy of "Jesse"
Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?
Here is the link to his entire commentary, well worth a read:
http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html
Here is the link to his entire commentary, well worth a read:
http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html
Great Quote From Jim Rogers On Govt CPI Reporting
JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.
Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?
JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.
source: www.clusterstock.com
Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?
JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.
source: www.clusterstock.com
Priceless Quote From Richard Russell
On Larry Summers: This doofus practically ruined Harvard when he headed it. I can't think of a worse choice to be chief economic advisor. I wouldn't trust Summers to manage a Starbucks franchise.
Quote of the Week
"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver
If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.
If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.
Quote of the Month
And very relevant in the context of yesterday's post about gold moving higher against all fiat currencies:
Just imagine what would happen if a mere ten percent of the money currently going into bonds were instead to go into gold. As in 1972, the real move has yet to begin.
- Murray Pollit, Pollit & Co.
A Picture Says It All...
www.moneyandmarkets.com
Golden ore samples produced by Eurasian Minerals
Undisclosed exploration site
The Next Reserve Currency?
1 oz. Chinese Panda
Guess who said this?
Rising prices of precious metals and other commodities are an indication of a very early stage of an endeavor to move away from paper currencies...What is fascinating is the extent to which gold still holds reign over the financial system as the ultimate source of payment.
-Alan Greenspan, 9 Sep 2009
-Alan Greenspan, 9 Sep 2009
THIS is what REAL money looks like
1 oz. Gold Eagles
Alan Greenspan said what?
“Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”
From "Gold and Economic Freedom" a 1966 Essay by Alan Greenspan
From "Gold and Economic Freedom" a 1966 Essay by Alan Greenspan
About Me
- Dave in Denver
- I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for a large bank. I have an MBA from the University of Chicago, with a concentration in accounting and finance. Currently I co-manage a precious metals and mining stock investment fund in Denver. My goal is to help people understand and analyze what is really going on in our financial system and economy.
Buon anno anche a te e ai tuoi cari !
ReplyDeleteMarco
Happy New Year for you as well Dave!
ReplyDeleteSame from me, Dave!
ReplyDeleteThanks for keeping it real Dave.
ReplyDeleteHappy New Year my Blogisphere Friend.
Bill
Some Random Truths.
ReplyDeleteA couple of days ago I postulated in the Midas that the US Government might actually WANT gold up which seems, on its face, inconceivable.
The twig was Richard Russell's simple table of the gold price post 2002.It looked like a managed rise, very orderly, very controlled,very disciplined , possibly a massive short cover of the leased out gold in Fort Knox.
For the United Ttates to survive, two things must happen.
First they have to resolve this Mt Everest of unpayable debts and entitlements.WE all know the numbers, and we all know its in the realm of fantasy that they could ever pay it back in real tangible dollars. But they could certainly pay it back in grossly inflated dollars...Old Dollars I call them.
This creates a problem though, because to do a massive devaluation is to correspondingly lose their position as the worlds Reserve Currency. This they cannot do,US hegemny evaporates , thats tantamount to game over. Goodnight Irene to the United States.
However , if, as i believe , that over the last 30 or 40 years they debauched the 8000 tons ostensibly in Fort Knox, either through outright physical sales (doubtful), but almost certainly with hundreds of billions of swaps in taking gold down to 250,they now need this gold back.And a price orders of magnitude higher. Say what?? How about this then.
Because to continue to dominate the world, its critical to retain the flexibility of being the worlds reserve currency.So they may well be unwinding 30 years of swaps,hence this peculiarly orderly 10 year rise in gold, with a view to introducing the NEW Dollar, a dollar backed by gold.Now that would be quite a currency, they could probably go another twenty or thirty years quietly debauching IT with nobody the wiser.
In short pay the debts with OLD Dollars, and set the stage for a Gold backed NEW Dollar to replace it. This means having as much gold as possible to back it.Including unwinding countless tons of what you swapped post 1971.And given the fractional reserve game, why could they not have been fractionally reserving Fort Knox for forty years and have swaps way in excess of the reported 8000 tons.Of course they could these ever so fine people.
Now in order to back such a currency, its pick your number time, gold at 6000?, gold at 10,000?, gold at 25000?, the only sure price for the peg, is it has to be orders of magnitude higher than at present, so that its proportionate to the size of the US economy.
WEll, you can hardly jump the gold price from 250 to 20, 000 and then say thats what its "worth" to back the "New Dollar". The United States would be laughed off the stage.
Nope, what they need is a much higher kickoff point for the switch, , maybe 2000 to 3000, so that the, eg, ten thousand dollar peg has some credibility.To jump it from 250 would be ludicrous.
So, they talk the talk,zzzzz, but look at the gold price walk.Look how meticulous the ten year rise is, its almost a stairstep rise, 20 to 30 percent a year, it , to me, has the fingerprints of a massive short being carefully bought back,with a tactical upward bias, the sole purpose for which,imho, would be to back a new currency, after resolving the debts with the Old Dollar.
Now I appreciate this is pretty radical,in fact the very supposition is downright funny its so counterintuitive, so I invite you all to tell me im eggnogged :)
Gord Savage.
Incredible as it may seem, .
While Im At It. The JP Morgue.
ReplyDeleteIf anyone ever had any doubt that JP Morgan was a US Government Agency, , after McGuire, poor checkmated Chilton flailing at the CFTC without result , dozens of laydown class action lawsuits, and the comical obstructive convulsions of Gensler at the CFTC , then may i respectfully refer you to four and a half dollar copper,on wheels and headed to 8 .
Enter JPM , who Blythely proceed to corner the entire LBMA Copper inventory, oh sorry, just 90 percent, probably including the wiring that keeps the LBMA vault lights on.Was that Blythe i saw wheeling those Threadneedle Street manhole covers into the BMW from under her ever so genteel arm? Why I dare say she scares me shitless as she stated in that conference call, haha, I AM!!! SHE DOES!! Nice mouth you have lady.
Any regulatory comment though?Kindly be serious.
Could there be a connection to China cornering the rare earth market. er, uh,, . Does a bear shit in the woods?
China needs copper and badly , they are by a long country mile the world's largest consumer of it, so, this seems kinda straightforward, you rare earth me you little buggers, and we will copper the piss out of you.
And just who will execute the copper corner? Hmmmmm, let see. My, my , that apparently would be JPM, and not just executing US government policy, but in taking copper, wham, a straight line from 3.60 to 4.45 and counting, they have put a prodigious dent in their superficial silver losses.
Not conspicuously tough when the LBMA regulator is staring down the barrel of a gun, if he can see it in the dark after Blythe stripped the LBMA boardroom wiring.
Everybody wins but China,awww, who will be paying 8 dollars for copper in short order, and if they keep dicking with their rare earth corner, try 12 dollar copper. Copper has a more than fighting chance of becoming the poor man,s silver!!
And finally , the reasons the investigations founder,the reason there is no record of the Court proceedings when the silver whistleblower McGuire got crashed the day after his testimony before the CFTC, is JP Morgan IS the US Government, and don't f with us.
gs
,
Great stuff in 2010 Dave in exposing the truth. Best wishes for 2011!
ReplyDeleteGreat comments GS.
ReplyDeleteThanks Oliver. Same to you for 2011!!
Latest bit of gold news (If someone else mentioned this before I apologize for repeating this.)
ReplyDeleteGoldenvelope is now offering to buy your old cell phones, of course they are doing this to keep cell phones out of the landfills and not because cell phones have gold in them (yeah, sure)
The only good thing to come out of their offer to buy cell phones is the fact that gold bugs can point to just how useful gold is, no gold, no cell phones.
Chew on that gold bears.
Dave,
ReplyDeleteI am looking to really get active in trading in the new year. Shoot me an email so we can discuss some ideas for some of those junior minors. Can you believe the fiing Raiders were 6-0 vs AFC west????