Getting published 2
Syntax corner
Getting published
The British Invasion
Salvador
The quality of sanity is not strained
Going round in circles
Where do you hide your money?
For film buffs
SteamboatsFriday snippets
Central banks are now net buyers in the aggregate for the first time in many, many years. This is a significant change since they were a major source of marginal supply. The post Bretton Woods dollar regime created by Nixon in 1971 is shaking hard, trembling the foundations of a world currency system based on financial engineering, empire, and oil.
When the unthinking mob starts buying, and gold and silver are no longer considered eccentric but essential, and local shops and banks start buying and selling the metal, then it will be the time to sell. But probably not before.
This is a phenomenon, a generational occurrence. Personally, it is fascinating, and worth having retired early to see it unfolding day by day.
I find it more than disconcerting to see the complacency in the broad US equity markets regarding the near free fall in the Dollar. A falling dollar may generate some paper profits for US businesses, especially those in the export end of things, but it spells disaster for the US consumer, especially both the poor and the middle class, who have yet to understand what is going to happen to their purchasing power as the cost of the basic necessities of life begin an inexorable climb higher. Remember how they quietly switched that 5 pound bag of sugar to a 4 pound bag and left the price the same? Well, get ready for another repeat of that.
It is that focusing on the deleveraging of the the debt mountain is a red herring, taken on its own then yes it DOES imply deflation as the debt bubble ’should’ contract. But given the asset price reaction of 2009 that is NOT what is actually taking place! the Debt bubble is NOT deleveraging, the bad debts are being dumped onto the tax payers! The huge derivatives positions that act as the icebergs under the ocean as compared to the asset price tips that we see above water are not contracting but expanding!
With the U.S. markets closed for Thanksgiving, the London FTSE 100 Index fell out of bed during the day, met by two relentless waves of selling, apparently on news of the possible debt default of the Dubai government run companies, namely Dubai World freezing debt repayments which sent shock waves around the world. The news was not helped by the London Stock Exchange shutting down during the morning due to technical glitches.
On governments and socialists:
“With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people.” Fredrich August von Hayek
“The gold standard has one tremendous virtue: the quantity of the money supply, under the gold standard, is independent of the policies of governments and political parties. This is its advantage. It is a form of protection against spendthrift governments.” Ludwig von Mises
Alan Greenspan himself states the case most eloquently in his famous essay from 1966 Gold and Economic Freedom.
“This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
Here is some weekend reading. Hat tip Xxxl.
Filed under: Politics & economics
CU is the gold man but he’s dealing with the Dubai crisis at present so you may not get a reply.
Had a discussion about how to get out of the huge problems facing UK PLC.One option was to join the Euro around 2015 and devalue the £ under this smokescreen. Was considered not credible under a Tory administration. I think a join the euro option will be bubbling around, for a long while yet.
Yes it will, Bill but look at the Albion Alliance for our stance on that. Thanks for answering so quickly.
When your banker and main creditor buys a house in a new development, and sells products in other currencies, are you really going to trash the neighbourhood?
Relevant? You betcha.
You really believe this guy?
I find it more than disconcerting to see the complacency in the broad US equity markets regarding the near free fall in the Dollar [....] repeat of that.
Holds equally true for the UK.
Longer term, £ going low enough, a viable manufacturing/export industry MAY develop. But not with current educational quality, and social engineering.
Low enough?…. approx current South Korea standards, projected relatively.
Buckle your seat belt Dorothy…UK is about to go bye-bye.
Time-scale? A grinding one to two decades of Shiiiit.
By which time, anyone with capabilities will be gone.
As Wolfie says, derivatives are increasing again
You got to wonder…When probably 80% are held by half a dozen US “banks”, and no more than 10 other “banks” globally, why do the neuron challenged regard that as efficient risk management. A black swan can equally take down the globe, in a carbon copy repeat.
Total regulatory capture!
Nice taxpayer, nice sheeple, here boy, sit and beg for your crumbs, give me your paw.
Some manufacturers of OTC derivatives (un-named) are in discussion with the IMF, re direct gold purchases.
1) will they short before they purchase?
2) will they use their purchase to back-up future shorting?
3) Will they go paper long to increase their profits after purchase?
4) When will the derivative backed paper-gold ETFs holders exit, and buy real gold? Will it take the blow up of Short bullion banks, who are the creators of the ETFs, to encourage holders to read the prospectus?
In the World.
Not enough gold to strike more Kruggers.
No more silver for US mint until middle/end of December.
US Gold mint suspends 1oz bullion coins.
And still they short…..?
See 1) above?
It’s mostly bad news and my gut feeling is much the same as in the late 90s and 2006-7. Gold price is above trend in real terms, but there’s a sound reason: better overpay a bit and at least have something valuable. Derivatives are complex and traded in dark places, it’s a shame they use the same kind of money we do. I still feel that the pain of deflation will be such that it will force the powers that be to generate inflation somehow, and so steal wealth from those who were foolish enough to save. And/or tax us heavily, but the tax base is already shrinking, business is tough as it is and we need no further disincentives. I’ve thought, read and worried about this for years, but the situation is so chaotic that we hardly know which way to turn. I guess – and it is a guess – some cash away from a bank, some land, some emergency supplies, some invested in energy funds, a bit in something guaranteed by the government, a bit of gold or other precious metals/jewellery, spare parts and petrol for the car, build up a network of friends who can rely on each other, don’t live in a big city…
That about says it, Sackers.
Plus skills, agricultural/DIY/mechanic, etc.
Or learn Mandarin, and emigrate, speedily.
This is sound, but if you kow what is to heppen then you can prepare for it. Buy gold and all assets, abandon cash except for essentials. Don’t worry about a pension for a few years until the havoc is wreacked…
Spread it around a bit is the answer but it is still not going to save us because of one niggly little fact – this is not all an accident.
The Fall of the republic complete
Suprised you missed this, James.
If you do a bit of digging, you will realise that the whole issue should now be dead in the water.
That it won’t be can be attributed to the deafening silence from the global MSM, and the political/financial corruption behind the whole carbon scam.
It never was about global warming, or climate change, or whatever handle “they” gave it.
It was always about methods of global control/taxation. Scientists, it would appear, are also not immune to £ bribes, and power over their fellow man.
Copenhagen should be cancelled, and the entire bureaucracy wound up.
Fat Chance.
I note the resignation of some Aussie MPs, and raise my hat to them. What happens in the UK? F*ck All. brown still wants to save the planet. Clearly it thinks it is on a different planet!…But we all knew that anyway.
If you have watched my previous link, carbon, etc, is mentioned there too.
It gives me great pleasure to say to the goons, TOLD YA SO, from the very beginning.
It equally gives me no pleasure to view the idiotic response of our leaders, and the corrupt communists milipedes.
Incidently, the US, Indian, and Chinese governments are all telling giant porkies about the state of the 2009 harvest. A giant overstatement!(Shortfall Created by Global Cooling, wouldn’t you know!)
Their false stats effect of temporarily reducing global food prices will blow up in short order.
ROFLMAO, but weeping too.