Friday, January 27, 2012

Friday Fraud Transitioning Into Friday Perfection

Gold provided the best returns of all commodities in the past five years when adjusted for volatility, and Goldman Sachs Group Inc. says the rally will continue as options traders signal no change in the metal’s relatively low risk.  LINK
I hate to beat a dead horse but I wanted to share the truth about Obama's policies with the people out there who still give him some benefit from doubt, especially as I'm sure his latest round of hot air and empty promises last Tuesday evening was probably well-received by the dopes who still have Hope.  It turns out that ABC News ran a brief news report a while ago detailing how billions of publicly funded infrastructure projects are going to Chinese companies who are bringing over Chinese workers to do the work.  Here's the LINK  That story speaks for itself and I really can't believe Obama isn't being held more accountable for this.  It certainly is a reality that is completely different from the promises on which he got elected...

Before we get to the Friday gold bug porn, I wanted to post a quick report on the new home sales number released earlier this week, mainly because the mainstream media headlines reported a small gain in new home sales from November to December.  The Truth is that new home sales dropped 2.2% from December 2010 to December 2011, and that's the "seasonally adjusted" number.  The actual number was 21,000 homes, the lowest since Jan 2011 and on par with the lowest monthly home sales on record.  The actual number was actually below November's 22,000, so the Truth belies the headlines reported.  In fact, annual sales in 2011 hit a new record low going all the way back to 1963, when the Government first started keeping records.  The median and average price continues to plummet as well.  Here's the LINK

One more piece of fraud.  Earlier this week it was reported by a DC rag, The Hill, that another one of Obama's pet "green" energy "investments" filed for bankruptcy:  LINK  This one only cost Taxpayers around $118 million.  Since this country's Government is currently on a run-rate of borrowing over $200 million per hour to fund operations, I guess Obama can brush this aside as only being 30 minutes worth of borrowing/printing.   While this is getting zero mainstream media attention, I'd love to know how much of that $118 million was funnelled back to Obama's campaign fund...

Now for the good stuff.  Below is a 1-yr daily chart of the price of gold.   Those of you who are familiar with doing technical analysis on stock charts will recognize this particular chart as being nothing less than bull market full-on chart pornography.   When gold breaks above $1800, we will really be off to the races.  I think gold is going to make some moves to the upside that will shock most gold bears and surprise many bulls. 
(click on the chart to enlarge)

Have a great weekend.


  1. Enjoy your weekend Dave and thank you for all you do.


  2. Rickards: Gold May Super Spike as We See the End of the Dollar

    When asked about India buying oil from Iran with gold, Rickards responded, “To the extent I’ve been surprised by anything in the world lately, it’s that things I could see coming are happening faster than anticipated. Again, in the wargame in 2009, we contemplated these kind of scenarios. We thought they would play out in 2013, 2014, but here they are, early 2012, playing out in earnest.

    For every action there is a reaction. In other words the US likes to think we severely damaged Iran by forcing them out of the dollar system. But Iran is saying, in effect, ‘Keep your dollars. We have another payment system, it’s called gold.’

    There’s a lot of gold in India and they are willing to exchange that for oil. You don’t need a banking system and you don’t need dollars. So I think the US, by throwing its weight around, may find because they’ve weakened the dollar so badly that people don’t just stand there and take it. So what happened this week was full scale financial war. We’ve cut Iran out of the dollar system and caused hyperinflation in Iran and they’ve responded.

    Putin Ratchets Up Anti-U.S Rhetoric as Kremlin Race Grows
    Russian Prime Minister Vladimir Putin is stepping up rhetoric against the U.S. as his campaign for the March 4 presidential election intensifies after the biggest protests against his rule.

    The U.S. “wants to control everything” and takes decisions unilaterally on key questions, Putin said on a campaign stop yesterday in the Siberian city of Tomsk, 3,100 kilometers (1,900 miles) east of Moscow. “Sometimes I get the impression the U.S. doesn’t need allies, it needs vassals.”

  3. "Obama's Policies".......

    Good if he has anything to say about the continued rape of the middle class by the elite. Even funnier is the locker room banter at my gym about how the next guy (whoever that may be) will be much different. I just keep quiet as I already know it's nothing more than "meet the new boss.....same as the old boss".

    Voting stopped being effective in the 70's however it was still somewhat useful up until about 2000...after that it's absolutely worthless.

    Go back to the early 80's where Volcker basically said "It doesn't matter who is in office...we own both party's"

    Sad state of affairs we are in...with little or no say in any of it any longer.

  4. Great moves by gold and silver. They believe Bernanke wiil target, and overshoot, inflation! Have a great weekend Dave.

  5. What Rickards is saying is EXACTLY what we've been saying for about 2 years now, though you'll NEVER here it outside the "realitysphere".

    It's funny how the people who understand socio-political and monetary and geopolitical history keep creeping closer and closer to the core understandings of letthemfail. This latest iteration from Rickards is not much different than the thoughts of A, FOA and FOFOA.

    My prediction was that the fan would meet shit this summer, but they'll sure try to hold back the paper run until closer to election time, for the great American fascist baton hand-off, not that the world gives a fuck.


  6. I find funny that people are angry that the Chinese got the contract to build the a bridge in Cali. We shouldn't be angry, we should find out "why" they got the job.

    Work ethics is the answer. Here in the US we do what we are told to do, they do what needs to be done (like in many other cultures).

    Unions and work laws prohibits workers for doing what needs to be done.

    If a shovel is out of place, we trip over it or go around it because that shovel doesn't belong to us. Not them, they bend over pick up the shovel and put in a place that is not in their way. Is that so hard to do?

    We should really start to pay attention to the work ethics of all the cultures and stop being so lazy.

    America, we need to do what needs to be done and not do what we are told to do!!!!! Wake up!!!!

  7. FEDging the figures

    I take the view that Gross Domestic Product is likely to surprise on the upside, as I wrote in an article for GoldMoney on 10 January. In that article I gave concrete reasons why, and suggested that money will begin to flow from capital markets into the economy. This is important, because GDP is only a money quantity and can rise without any underlying economic progression – the difference being reflected in the prices of goods and services. So GDP can actually rise with no underlying improvement in economic activity, it merely reflecting higher prices.

    Changes in the prices of goods and services are actually impossible to measure and so cannot be quantified. Under-reporting price increases by using an index approximation such as the GDP deflator, which represents price inflation similarly to the PCEPI, artificially inflates real GDP. It will be interesting to hear what excuse the Fed comes up with then for the continuing for even longer with ZIRP. The reality is that the Fed and other central bankers are cornered and have only one tool left: issue as much paper money as it takes to prevent systemic financial calamity. This realisation is only just dawning on individuals with savings to protect, which is why precious metals were right to rise so sharply.

    risotto di rodentia..yo​u can beat food costs,too!

    Meet the middle-aged, middle-class woman who traps, butchers and eats
    squirrels in her Seattle backyard

    Read more:

  8. Has Housing Really Bottomed? (January 28, 2012)

    It may strike younger readers as unbelievable that a few decades ago, in the low-inflation 1960s, savings accounts earned a government-stipulated minimum yield of 5.25%, regardless of where the Fed Funds Rate might be. Capital accumulation was widely understood to be the bedrock of household financial security and the source of productive lending, whether for 30-year home mortgages or loans taken on to expand an enterprise.

    How times -- and the US economy -- have changed.

    Now the explicit policy of the nation’s private central bank (the Federal Reserve) and the federal government’s myriad housing and mortgage agencies is to punish saving with essentially negative returns in favor of blatant speculation with borrowed money. Official inflation is around 3% and savings accounts earn less than 0.1%, leaving savers with a net loss of about 3% every year. Even worse -- if that is possible -- these same agencies have extended housing lenders trillions of dollars in bailouts, backstops and guarantees, creating institutionalized moral hazard on an unprecedented scale.

  9. Warren Pollock on This Week in Money

  10. Ron Paul on CNN State of the Union 01/29/12

  11. They Want to Kill Your Internet Freedom – Say HELL NO to ACTA

  12. OT : Gingrich biggest supporter investigated for bribing foreign officials

    American billionaire, close ally of Netanyahu, and main donor to Gingrich's campaign has been under federal investigation for his casino empire's alleged involvement in a corruption scandal in China, ABC reports.

    Last year, the Department of Justice and the Securities Exchange Commission launched an investigation into Adelson's alleged bribery of Chinese officials.

    According to ABC, Sands casinos was allegedly cooperating with Chinese organized crime groups, known as triads, who allegedly organized high stakes gambling and sex junkets.

    Chinese press reported at the time that more than 100 prostitues were found in the casino, during a raid by local authorities. A former manager at the casino, Steven C. Jacobs, sued Sands, claiming that Adelson told him to remain silent regarding investigation taking place against the company.

    Several months ago, Adelson contributed $5 million to Winning Our Future, a pro-Gingrich super PAC. More recently, Adelson's wife gave another $5 million to the same super PAC, providing a major lift to the former House Speaker's campaign.

  13. Moyers Journal: How Did the Big Banks Get So Powerful?

    John Reed on Big Banks' Power and Influence

  14. Make this an issue..pass it around:

    Money From MF Global Feared Gone

    Nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation.

    As the sprawling probe that includes regulators, criminal and congressional investigators, and court-appointed trustees grinds on, the findings so far suggest that a "significant amount" of the money could have "vaporized" as a result of chaotic trading at MF Global during the week before the company's Oct. 31 bankruptcy filing, said a person close to the investigation.

    Obama-Corzine Were Wrong

  15. Ranting Andy Hoffman Says, The Banking Cartel is Boxed in

  16. The Banks Are Still Scamming

    It never ends, does it?

    More than half of the derivatives- trading business of Goldman Sachs Group Inc. (GS), Morgan Stanley and three other large banks could fall largely outside the Dodd- Frank Act if they succeed in lobbying regulators to exempt their overseas operations, government records show.

    The debate over the reach of Dodd-Frank has been among the most contentious aspects of the regulatory overhaul enacted by President Barack Obama after the 2008 credit crisis. The banks have met with regulators, testified to Congress and filed dozens of letters contending that they will suffer a competitive disadvantage if the regulations apply to their foreign arms.

    Banks Fight to Exempt Half of Swaps Books
    While the banks haven’t publicized how much of their swaps business is overseas, they file quarterly statements to the Federal Reserve. A Bloomberg News analysis of the filings shows that Goldman Sachs had 62 percent of its $134 billion in fair- value derivatives assets and liabilities in non-U.S. branches or subsidiaries for international banking as of Sept. 30, while 77 percent of Morgan Stanley (MS)’s $101 billion was in non-U.S. operations.