| Posted By |
Discussion Topic:
Le Patron Memo Archive
|
|
DerrickMReid |
11-15-2008 @ 10:31 AM
|
|
|
Member
Posts:
Joined: Aug 2007
|
Drazyuietcha!! (Greetings) My friends of gold and silver, I hope you all dont mind much, but I would like to keep my "Le Patron" memos and other writings considered relevant, here in one place, for later references, but will focus on gold & silver. For an over all geo-poltical understanding of my base philosophies, see the monster thread, "China Transforms North Korea", which discusses gold and silver in the context of the Global Confluence, with many Le Patron memos therein.
http://www.lemetropolecafe.com/CFFORUM/printthread.cfm?Forum=9&Topic=283
The writings posted here will be firstly posted separatedly in other threads and then simply archived here. Anyone's comment should be preferably made in those other threads. Thanks Much.
======
An analysis of the Jan 09 Israeli GAZA offensive is found in Thread "The biggest traitor in the US". Analysis related to Russia is found in "the chessmaster strikes", on going global-domestic comments are found in "Non-Topical PotPouri" threads.
============
G20 memorandum, TOP SECRET, (I suppose)
Friday, November 14, 2008 10:20 AM
From: "Derrick Michael Reid"
President Bush,
Please pass around the following missive to all the G20 members this weekend. They will all get a kick out of it, unless of course, its top secret information. The core problem of the global melt down is the unregulated OTC derivatives, estimated at 1200 trillion dollars, though, sparked by the mortgage melt down. Get them socialistic democrats to regulate them, and out law short selling and naked short selling.
Derrick Michael Reid
Laguna Beach CA
Le Patron
Ain't That Special?
Physical demand for precious metals is very strong on the streets of the good old USA. Americans understand paper money, but deep down, they also trust the value of gold and silver. But a funny twist occurred in my 401(k), which is now my 201(k), the K is gone. There are no more 24K contributions. The US government allows for income tax deductions for contribution to your retirement account. Gold, Silver and Platinum Eagles are recognized as legitimate IRA investments and contributions. The US Government, is such a pal, right? Not so fast.
A funny thing happened on the way to the MINT, to pick up some more Eagles for the golden years, they have virtually closed their doors on Eagle deliveries. Some say that this is an orchestrated attempt to keep bullion out of the hands of the people, so that the people must depend exclusively on fiat money for wealth preservation. Some say this is part of enslaving Americans by the Government's controlled fiat money and companion tax regime. Others say the lack of Mint deliveries of eagles is a way to reduce demand of bullion and thereby prop up the dollar and suppress gold and silver prices. If the Mint is not going to deliver eagles in serious quantities, as they are more than capable of doing, what other currency, beside the dollar, is allowed in your IRA. Bullion bars, to my knowledge, are not part of the IRS recognized stores of wealth for IRA contributions. When the Mint shuts down substantial deliveries of IRS recognized IRA eagle coinage, while not allowing retention of the bullion bars in your IRA, the Mint, in combination with the IRS, both treasury facilities, are in affect suppressing bullion prices and forcing people to hold fiat dollars for their GOLDEN years, whether they want to or not. We are stuck with it, and they will make sure we stick with it. Also, the treasury, using its Mint and IRS enablers, can do this with impunity, as the courts have declared the recognition of fiat as lawful money. The Treasury, IRS, Mint, as enabled by the courts, have effectively closed the Mint PM window to the folks. Ain't that special?
In the mean time, the congress sits there and does not require an audit of the nation's gold reserves, when obvious allegations of serious depletion have been boldly and notoriously made, in public, for all to see, when congress could order such an audit in a heartbeat. Something is just not right there. Maybe it is a national secret, or a national disgrace, take your pick, that no authority wants to make public the surreptitious divestment of the nation's treasure, as that might, in a day, debase fiat into oblivion, and hence, the Ft Knox audit has not been had, over the last 50 years. Ain't that special?
The Government's PPT and the FED have worked their magic, sure enough, time and time again, with their hail Mary plays near the close of the DOW each day, to prop up the markets using "intervention", to give all new found faith in those fiat dollar denominated shares. The President claims he is a free market guy, yet, but in a meltdown, intervention is necessary. So even the President of the United States is now on record that intervention is necessary. Well necessary is just a how-much indication, not that "intervention" is inherently immoral and contrary to the necessary workings of any capitalistic free market. So, get this straight, "Intervention", is DC slang and FED speak for market rigging, which just so happens to match well the SEC and CTFC do nothing enforcement of fair market laws with their see-no-evil allowance of the concentrated precious metal short positions allowed to be sustained in perpetuity, to suppress the price of gold to prop up the fiat dollar. Ain't that special?
So, let me, and YOU, get this straight, the Mint violates law and the public trust by limiting deliveries of eagle coinage, while IRS says only Eagles are the only proper precious metal IRA deduction, while the SEC and CTFC turns a blind eye to criminal manipulative concentrated shorts on the COMEX that suppresses gold and silver prices to prop up the fiat dollar, while congress does nothing to ensure and account for the nation's treasure by failing to conduct a gold audit, while the IRS and the courts agree that fiat money is the only lawful money for tax and commerce purposes, notwithstanding the plain language of the constitution, while the President said interventions are necessary thus admitting market rigging, is necessary, where the FEDs bail out the Wall Street banksters who took billions in bonuses, while the Government's PPT props up the general equity market to maintain our rigged markets, and all this is collectively done, in concert, to save the almighty fiat dollar from devaluation, which fiat is inherently worthless. Ain't that special?
So get this straight. The entire US Government, in every sector, has been mobilized to prop up inherent worthlessness. Ain't that Special?
Derrick
================
Mr. Bill Murphy, President, Gold Anti-Trust Action Committee, New Orleans.
Mr. Chris Powell's latest from the New Orleans conference was very well done. He suggests that all that is needed for a sound monetary reset about the world is a 2000% upward revaluation of gold. So lets look at the important power brokers at the G20 meeting this weekend. Russia and the US have mines and gold reserves. The EU nations have plenty of CB gold. India, well, they buy gold all the time and can accumulate gold reserves and the people would greatly increase their wealth through gold upward valuations. The middle east would be supportive with their hoards. China has mines but low gold reserves, but china has US dollar reserves to buy as much gold as desired at current prices, and China can apply pressure as needed. As I see it, China buying 3000 tons of IMF gold, may be the arm twisting leverage play, that is, sell us the IMF gold, and we all can upward value gold 2000%, and reset the monetary system. Implosion is avoided, and the gold standard reinstituted. However, Japan would be the lone hold out, having only 1% gold reserves. However, its currency is going through a major upward surge in valuation while gold is presently suppressed. It would be curious, if gold is capped, while the yen strengthens even more, and the reported gold COT in Japan goes way long of gold during capped prices, in advance of a Chinese buy of the IMF gold. After which, the UN treaties the gold standard as between all nations, and all fiat can float respecting that gold standard.
A return to the gold standard, may be immenent, world wide, to the surprise of friends of gold, so lets keep our eye on the Japan's market COT positions going long of gold.
Derrick Michael Reid
PS Japan may consider going long of gold. http://www.gold-eagle.com/editorials_08/oberholster111408.html
======================
Short Sells and Naked Short Sells
SHARES are used for allowing the formation of capital with limited shareholder liabilities so that corporations can be formed and expand business. The purpose of shares are 1) shareholder immunity from ristk, 2) formation of capital, and 3) to expand business. One can buy and sell shares, and the price of the shares comes from that buying and selling shares. Puts and Calls can be used in shares for hedging.
There is ABSOLUTELY no justification for short sells or naked short sells, as both are inherently fraudulent, selling something you dont own. short sells and naked short sell serve TO DESTROY market value and corporations' ability to fund operation, completely INCONSISTENT with the whole reason for having shares in the first place. The only justification, is freedom on contract, and that includes OTC derivatives, but freedom of contract is limited in scope, just as voiding contracts for murder. The use of short sells and naked short selling SHOULD BE OUTLAWED as contrary to public policy and the rationale for shares in the first place. There remains plenty of tools necessary for those who wish to invest in the growth of corporations, the goal of shares. Some may like them, use them successfully, and I am sure are useful tools, but the tempetation to use concentrated short selling to destroy corporations for personal greed is just to high, in my view. Commodities futures are another story. Here, short selling is necessary. Naked short selling is NOT.
I proposed that re futures, transparency laws should be enacted such that over a percentage of all shorts outstanding, say 5%, the entity must disclose its concentrated short position, JUST LIKE IN SHARES, and that may be enough to crub criminal prima-facie manipulative short concentration in the commodity furtures.
Le Patron,
Our Manipulated Markets,
Lets all be very honest with each other, and discuss shares and commodities futures. The SEC is just now catching allot of heat, and rightfully so, as I see it, as I sense there is much trouble in the financial world in which big players play. As a true American, proud of the USA, seeking to maintain strong and viable markets, manipulation must be rooted out. After 35 years of Engineering, Law, and Financial employments, training, observations, and study, I would like to propose again something that I did some time ago, to the SEC. DO NOT ALLOW ANY SHORT SALES, and especially NAKED SHORT SALES of shares. Make the rule simple.
Share puts and calls are acceptable derivatives, along with the owning of shares. Short sales where shares are borrowed and sold, and, naked short sales where no shares are borrowed, but only a finacial transaction is entered, both inherently fradulent by their nature, in selling something one does not own outright, and this provides the big money players with the opportunity to cheat, destroy, and manipulate in the equity markets. The SEC should change the rules, an outlaw short selling, and keep it simple. Those who believe a stock is going down, can simply sale their shares, that is sell their own shares. When many so think so, the share price goes down, based upon a lack of buying interest. One does not need shorting means for pounding down share prices, if the company is unproductive, as simply selling owned shares in the face of a lack of buying shares will slowly move the price down. This is the market correction necessary.
Those who want protection on the down side, can buy puts. There is no need for short sells or naked short selling, none whatsoever. Puts are the way to engage and hedge the market on the down side. No one needs to make profits by short selling. Lets all make money building up companies, rather than making money destroying companies. We don’t need shorts sells, in any market, for the vast majority of Americans who buy shares and hold long as investments for retirements and savings. Nor should these buying Americans be faced with the unlawful criminally and destructive forces of manipulatory short sellers.
In so doing, eliminating short selling completely, you eliminate the ability of massive short manipulations, which is contrary to the whole purpose of investing by nearly all investing Americans, yet, retains correction forces by selling owned shares sold, and makes the market truly fair for every American, regardless of financial size. Everyone is on a level playing field. The short selling only really gives the big players means for manipulating markets for profits by destroying companies' capitalization, to the disadvantage of the vast majority of common share holders.
Removing short selling also reduces volatility and calms markets for increased participation by all. There is absoulutely no justification whatsoever, to allow short selling or naked shorting. NONE WHATSOEVER. Freedom of contract should be respected, but contracts to murder companies and their investors, based upon inherently fradulent practices, should not be enforceable or even allowed. Do this one thing, and stocks will be much more favored by all Americans, all will be fair, regardless of income or purse size, and it retains fairness, and will substantially reduce fraud and manipulations in the markets. Do it, do it now, and get it done! In so doing, the SEC may just ignite the greatest bull run in US stocks this country has ever seen, imediately increasing the net worth of corporations and citizens. The FED wants to bail out the banks in socialism. That is not necessary. Stop short selling is the FED's solution, right here, and right now. Why not simply try some good old honest and fair market capitalism?
Why borrow and give others chances to keep secret their schemes to make money destroying a company's capitalization, when the seller has no interest is seeing the company thrive? We share investors and the law are here to build corporations, to build value, wealth, jobs, money, and net worth in them. The purpose of shares is to promote corporations, hence, the limited liability to sharesholders, the fundamental reason for shares in the first place, so that, capital can be risked without personal liabilities, to start and build and expand businesses. The purpose of shares is to promote business, not destroy it. The selling of borrowed shares is pre se fraud. Selling of borrowed shares destroys capitialization. The use to shares by short selling to fradulently destroy corporations, is inherently contrary to the purpose of having shares in the first place, to commit fraudulent crime upon the investing public, and thereby give rise to potential manipulation of share prices, another big no no in share law. The SEC should ban all short selling and naked short selling. There is simply no reason for either of them, other than the principal of freedom of contract, but freedom of contract never extends to fraud or crimes, or actions against public policy, which is the need to raise capital to support the creation of corporations, just like free speech does not reach obscene speech.
There is another very important sector that involves short selling, and that is commodities, but there, the share price of a miner is the not primary basis of consideration, but rather, the price of the commodity and the lawful and necessary ability of producers, bankers, and speculators to bring product to market in a way that enables all three to hedge, for many very good reasons. Lets consider the gold and silver markets, which have been the subject of a decade long running battle between the gold and silver bugs and the SEC, over perceived manipulation and inaction, respectively.
A producer may forward sell its production to lock in prices to ensure continued future operation at a profit, a worthy goal and purpose. A consuming buyer will buy their forward production to lock in prices to ensure continued future operation at a profit, a worthy goal and purpose. An intermediary Banker facilitates the futures, and buys from the producer and sells the same on the exchanges with a small spread for profit, by buying long the forward production from the producer and selling short that production on an exchange that a consumer can then engage and buy long forward production to ensure a source of supply. That is the basic future system. Its works, and is of great commercial value in the world of commodities. A producer will sell short, a bullion banker buy long and then sell short with a spread for profit, and the consumer can then buy long.
In comes the speculators, who are neither producers or consumers, but futures exchange players who seek to hedge other positions or simply to make profits, mostly on price momentum, and therein lies the potential problems of concentrated manipulation so often complained of by the bugs to the SEC.
In comes the major miners, the top tier of the producers having a ready cash flow and providing vast production supplies. Other miners may not have such large cash flows. Some miners, particularly explorers, and junior producers will sell equity and sell forward futures production to raise capital to put a mine in production, and will sell their expected forward production to the bullion banks to accomplish the same. This is a very valuable financial accommodation to get mine projects built and in production. The problem arises, however, when a major miner, having a ready cash flow, and hence a good share price, does not sale equity to expand, but rather sells short their forward production, because, when any production is sold it is a short sale and it necessarily suppresses prices, contrary to the major's obligations to shareholders to maximize profits, and such suppression will also hurt other miners, because of a lower commodity price, and if weaken sufficient, the major, in an anti-competitive move, will forward sell, that is hedge their future production, to drop the price of the mine output supply, to weaken competitors, and with the Major now with lots of selling cash, will buy up mine competitors, in a predatory method to monopolize production supplies and a market. Barrack gold, for example, the largest miner, is suspect number 1. There is no legitimate reason for a Major to have a "hedge book", that is, a forward selling position, because, their large size can manipulate markets and facilitate monopolization.
In the current gold and silver bull run, expected to last at least another 15 years due to past price suppression and low mine output, a hedge book, that is, a position of sold future production, will begin to cause unrealized profits as the price increases, with the forward sells locked into a contract fixed price. This is why majors have been reducing, that is, "dehedging", their hedge book, that is, their forward sold production, buying back their sold forward productions, to gain more profits in a rising price bull market. It is alleged that the BARRACK GOLD hedge book has enable it to monopolisticly acquire competitors on the cheap as an anti-trust predatory thug, and has one billion dollars of unrealized lost profits. That may seem fine to BARRACK, in the long run, with their competitors having been already bought out on the cheap, in a rising price bull market.
In comes the conspiratorialists, who claim that the government in collusion with bullion bankers and major miner hedgers, is facilitating the anticapitalistic, interventional, secretive, and regular suppression of the gold and silver prices through the use of concentrated futures short positions and international gold agreements, such as the WAG2 agreement of EU bankers to limit sells of gold, which is by definition, is a GOLD CARTEL.
GATA, the Gold anti-trust action committee, for example, claims that the US government and other EU banks, holding vast hoards of bank gold are not only selling their gold, but also surreptitiously leasing, swapping, and loaning central bank gold to the bullion banks for shorting on the exchanges to suppress the price of gold on the exchanges. GATA claims that the US holds 1/2 of the gold it actually reports it has. As gold and silver are barometers of financial health, an leading inflation indicator, and an alternative store of wealth from the dollar, the government, with its so called strong dollar policy, is alleged to regularly intervene, to suppress the price of gold. GATA claims that such selling and surreptitious disposition of bank gold, is inherently anti-competitive and anti-capitalistic, whereas others mainstream analysts look at it as sound government management, the difference really being merely the choice of words used. Regardless of intent, motive, and illegality, until the US government conduct a lawful and open audit of the nation's gold reserves, any reasonable person should conclude that GATA is right.
Hence, the alleged collusion and conspiracy, that is THE GOLD CARTEL, is a combination of international governments, major miners, and bullion bankers, all acting for various purposes to effectively suppress the price of gold and silver. Currently, there is a massive concentrated short position on the comex, where gold and silver future production has already been sold, and the price has, thereby, necessarily, been suppressed. The futures price is not a result of so-called "price discovery", but rather a "paper price" of gold and silver determined by manipulators. For example, to actually buy a 1 oz silver coin in hand, at your local coin dealer, you have to pay a huge dealer premium. For a 1 ounce silver US eagle, the premium is 5$ over the "spot" futures' paper price, for the physical price. Hence, the futures paper price is a manipulated unreal paper price, whereas the physical prices are the real prices, that are, what a willing buyer would pay and seller would take for actual in hand possession. The greater the premium over the futures spot paper price, the more is the affect of the collusive price suppression by the CARTEL. The difference between the paper prices and the physical prices is screaming unfair manipulation to anyone who is willing to hear the hue and cry.
Normally, manipulative price suppression would be illegal, but the governments, and their agent bullion banks, and their agent major minors, get a pass, as the king can do no wrong, under governmental immunity, with the purported objective of the strong dollar policy. The government wont admit this direct intervention, but manipulative intervention it is, regardless of being illegal or not. Such is the real world in which the bugs live, and must endure the farcical nature of the government's strong dollar policy and the suppression of bullion prices.
The problem, of course, lies in an attempt to determine what is criminal manipulation and what is a legitimate purpose, a problem perplexing the SEC and enforcement of anti-manipulation laws. The SEC is not going to go after the US government and its gold suppression practices, and, its strong dollar policy. That aint going happen! The gold bugs' complaints in large measure get ignored.
However, there are now just a few (2-8) majors banks with an outrageously large concentrated short position on the futures exchanges, the calling card of the commodities manipulators, to which the SEC has heretofore turned, intentionally so, a blind eye, mostly due to the problem of actually determining proper hedging and short selling, for legitimate purposes, and those for manipulative purposes, in view of government complicity and inherent immunity. As such, the commodities exchanges are the wild west, anything goes, criminality, suppression, momentum speculation, and legitimate hedge long selling and dehedging short selling. It’s a raucous market for sure with high volatility. The momentum players drive prices high and low, and the very big manipulators can trip stops to the ruin the small guys, over night. Also, the world is globalized, and hence US laws may not be effective in the global context. So, what should or could the SEC do, if anything? They have a very subtle, difficult and expansive job for sure, and we should respect their best efforts, and wish them luck.
It seems that very simple commodities futures rules could be enacted to cure the perceived problem of bullion manipulation. One could start with some known parameters, from which to devise a scheme, a set of simple rules defined by these parameters to control the futures markets, to level the playing field, to prevent excessive speculation and manipulation. These parameters could include: 1) the amount of short/long futures positions on an exchange; 2) the amount of gold/silver stored in the exchange warehouses; 3) the amount of last year's miner production, and 4) the amount of short/long position by any one entity, for examples. A rule could be that the amount of short/long positions can not exceed the amount in warehouses, but this would be too restrictive. A rule could be that the amount of short/long positions can not exceed the amount of last year's production.
A better rule could be that no entity can lawfully have an interest in short/long positions on any one futures exchange in excess of a percentage, say 5%, of the total number of contracts, without full disclosure, just like with shares. This disclosure requirement, to provide transparency for those few major manipulating players may just be enough to prevent manipulation, yet, allow a free market. Simple rules could be fashioned.
Currently, there is a massive concentrated short position on the comex, which is prima facie manipulation, but that is it, its only prima facie, giving rise to cries of manipulatory conspiracy and SEC inaction. The problems with articulating unrestrictive regulations is problematic as there are many variables in play. The SEC, to properly clean up the manipulation, on the exchanges, has allot work ahead of it.
The potential evils of momentum and manipulatory short and long postions in both shares and commodities futures is real and great, but involves the same acts that are lawful for one purpose but unlawful for another purpose. The SEC, to formulate suitable regulations to control the unlawful manipulations in shares and commodities is immense to properly clean up our manipulated markets.
Derrick
===========
LePatron.
A Ton,
So, the trade of 400 Au eagles and 7000 Ag eagles was for 42 1000oz JM comex Ag bars from Tulving, and in so doing, took these comex bars off market, while providing eagles other guys to pick up. Tulving is such a great GUY! Really, could not recommend a better source. As advertised, the bars were all brand new JM 2008 bars. But, Tulving actually delivered 43 bars, for a total of 42,310 oz. That was a 310 oz gift, as 42,310/43 = 984/oz average per bar, only a couple of which were actually over 1000/oz but only by an oz or so. So the Au:Ag trade ratio was closer to 81:1. In doing this kind of exchange with the dealers, more eagles are out there to be snatched up, yet also forces a draw down of available big comex bars that will eventually help lead to a comex default. So, I would continue to recommend, now that coin premiums are way too highs with limited availability, to swap coinage for big bars, and help bring down The House of Crimex.
Current Bullion Premiums
===========ASE=100ozAg==1000Ag==AGE====1KAu
CNI =======6.20$ ==4.5$ ==79c ==89$ =29$PAM
Tulving ===6.99$ ==4.5$ ==80c ==90$ =40$JM
============================================
%overSpot ===75% ==50% ===8%* ==11% ===5%*
So, lets keep your eyes on the premiums for 1000Ag comex bars and the 1KAu bars*. If they go over 15%, look out COMEX, your CARTEL paper pushers are toast! Gold has held up better in this sell off than all the metals, base, PGMs, and PMs. Sinclair says Gold is the premiere hard money store of wealth, and he is correct, with Silver having sold off 60% from its recent highs. BUT, (drum roll), the little American Silver Eagle premium is leading the way, and that confirms, yet again, that Silver in a MELT DOWN will outperform gold at the end of a surge in price, being more volatile, as predicted, as gold is the ultimate store of wealth holding its own, while silver is the ultimate form of street currency, with the silver eagle now showing its street strength. So, while this gold and silver sell off was way over done, now is the time to strike back and buy retail the big gold and silver bars, (if you can find them), and in the spring, you can swap your silver back into gold. So, follow me boys!! Our mission is simple, be brave, hang tough, give no quarter and them back their fiat paper trash and their junk coinage, the cold steel, and destroy the HOUSE OF CRIMEX. Here is a picture of the hoard, now enroute to the personal vaults, but it was a pretty sight, depleting the big bar stocks, taking on the cartel, by just one man, with a ton.
Major General Derrick
===========
I trust some might find these writings, entertaining in some measure, and hope the pleasure is not all mine.
For those interested, I am an electronic engineer BSEE Cal, patent lawyer JD Esq. (super high tech), civil war buff, (see "Jane" 10/19/08 Midas for the pic, http://lemetropolecafe.com/pfv.cfm?pfvID=7309 ), a reactionary very hard-right neo-con, a predicting futurist, a lay geo-political analyst, Christian, speaking a little Russian, living in Laguna Beach CA, and I am currently promoting starting up a mint to defeat the COMEX concentrated shorts. I have a russian wife, now a US Citizen as of 8/08, one army 24yo boy in Iraq, and two bi-linqual young boys 4 and 5, 11 rabbits, (Tannie just had six little ones), and 3 hamsters, Emille, Collette, and Linquinie (from the movie Ratatoullie). (And I cant spell or proof read worth crappolla) (oh, and Emille is my financial advisor)
===========
This message was edited by DerrickMReid on 2-4-09 @ 10:48 PM
|
|
DerrickMReid |
|
11-16-2008 @ 10:21 AM
|
|
|
Member
Posts:
Joined: Aug 2007
|
Le Patron,
Inflation or Deflation
I say inflation, coming back strong in 09-10. Some are calling for futher deflation. However, they should know that the FED and tresury have done allot of things, and its remarkable to me, how they are active so forcefully. Are their facilities misguided? Are their out comes predictable? That is to foggie for me. We are in uncharted waters, classical economic curves are great, but will they be followed? Do the curves contemplate a zero-crossing massive gov newest deal? The human mind and intervention are too variable, to reply on a simplistic cute little chart as the end all in the human experience.
http://photos1.blogger.com/img/101/3984/1024/cycleofdeflation1.jpg
This chart is nice, but will it hold? I DONT THINK SO. McCain would have been a wild card, a loose cannon, but with OBAMA in there, I got to believe, we aint seen nothing yet, in terms of bail out money. 2.4-3.5T was the count given on goldseek radio, thus far. I see prices dropping (and the deflationists are thus far correct calling for deflation). However, I see government mobilized. I see concentrated leftists in power, with a FED that is per se socialistic in ACTIONS in recent months. I see a far-left president coming in the NEWEST BIG DEAL. So, putting on the crystal ball, in terms of a first wave of inflation, seems likely after a bottom is found shortly. Interest rates may rise back to the 5-6% range, but how could they go any higher, with OBAMA in there. He will inflate, rather than have his rodent heard out on the cold street beggin for crums. And he will not allow interest rate to climb like Volker did in 1980. The left just can not handle the pain for any gain, they are all just a bunch of pussies. I just cant see deflation/depression happening. I see money for nothing, hand-outs, jobs programs, gov-care, bail-outs, low interest rates, to sustain employment. And that spells inflation. Then the tricky dicky stuff to crub inflation, without risking growth/employment. Employment will trump inflation. And that is where I have always thought we would go in time, to a collaspe, because of a lack of political will on the left, and not based upon deflation, but upon out of control inflation, that will not be stopped by gov restraint, but rather only by returning to asset based money, gold and silver, in the out years. That transistions might be the one that sets off recession that can not be so reinflated, and then the people will "suffer" for the common good.
Guliano made the best sound bite of the campaign. Change is not a destination and hope is not a strategy. But OBAMA won with a mandate, and he promised everything, and the left will hold him to it, and he has both houses to push it all through, so we will get change, what ever in the heck that means, as Bush raised the national debt and over spent way to much. So, I see no real change based upon OBAMA's promises to the rodent heard, government deficit spending will continue rise, and I have no hope for real money usage, as OBAMA already has said we are not returning to the gold standard. No matter what, government spending is going way up, and that indicates more than any other thing, to me, whether we are going to Inflation or Deflation.
Derrick
=========
LePatron,
Got Silver?
My grandfather saved coins, and that is where I got the bug thing, and the bug thing was sustained over the years, by a small comment from my grandmother, back in the 90s. She said, now get this, "When the depression hit, it took us completely by surprise, we had no gold and silver, we lost everything, and I had to go into the fields nearby, to find dandelions, to boil for the nightly supper, and after a few months of living only on that, it got really old". Well she is dead now, but the words I recall as if they were spoken yesterday. For sixty five years after the great depression of the 30s, grandpa played with coins, the rest of his life, and, left all of his 30 grandchildren, me too, books of coins by year over the last century. He left us, not with much money, but with a warning, in his own way. Silver can always buy bread, as a street currency, on the street corner, so keep that in mind. Oh, and by the by, all you concrete and pavement city dwellers, guess what? Dandelions dont grow in concrete jungles. Got Silver?
Derrick
========
Le Patron,
The CRIMEX Death Bed.
The COMEX paper prices are much lower than physical prices as a result of naked shorting by the CARTEL through their bullion banks. A fund or exchange could be created for the sole purpose of defeating the CARTEL, for profit, by providing futures traders with physical prices and in small units, to defeat the CARTEL, and its paper naked short paper pushers. So, what is needed is some kind of a marketing plan, to solicit the some big boys, to initially start and fund a PM exchange, that can then invite all players, even very small players to jump in as well, and together, take on the CRIMEX. This exchange could be enlarged to include platinum and palladium as well, beside gold and silver, all four of which make up various legal tender coins about the world. Surely, this could be done, soling many small investors, but, it is desirable for the CRIMEX to have a quick death, like RIGHT NOW!
Lets say we find 5 big investors, say 5 billionaires, that hold five available seats on the new exchange, for their initial buy in, and hence, own the exchange, which will be a futures exchange. However, this exchange will includes 1000 oz bars, 100 oz bars, 10 oz wafers, and 1 oz coins, gold and silver, all generic, and either COMEX acceptable, minted especially for this exchange, or otherwise acceptable. Lets call this exchange, the JOEMEX, Joe's mercantile exchange. You with me?
To sell short on the JOEMEX, you must deposit the sold bullion in the exchange, and if you buy long, you must either take delivery, or allocate your bullion to your personal account for storage, or sell it back short on the JOEMEX, again with the BULLION in the exchange for all sells. Hence, no naked short selling on this JOEMEX exchange. The JOEMEX exchange would also own a mint appendent, the JOEMINT mint, or a contracted mint, capable of turning 1000 oz and 100oz comex bars, into 1 oz generic coins, 10 oz wafers, and 100 oz bars, or capable of procuring acceptably the same worldwide. PAAM generic Ag coins would be acceptable, for example. The JOEMINT and the JOEMEX are thus own by the 5 billionaires, with the futures products including 1, 10, 100, and 1000 Ag and Au (and Pt and Pd) units, that covers both the small end and the large end, at a common premium, the JOEMEX fee, and that is trick to beat the pants off the CRIMEX.
So, how does this defeat the cartel? First it immediately takes bullion off market, to the tune of say 50Moz of silver, for example, effectively, by taking delivery from the COMEX, for a good start by the five big investors. If a buyer wants to simply use JOEMEX as a vault, then the PM units are allocated, for a JOEMEX fee. The buyer can trade between Au and Ag (and Pt and Pd) on this exchange in 1, 10, 100, and 1000 oz Au and Ag increments. Now, a buyer can come in, in the futures or spot market which is a zero day futures, on the exchange, at any unit level, 1, 10, 100 and 1000 oz Au or Ag (and Pt and Pd) positions, each priced, based purely on a common real spot price for each metal, and a common per oz JOEMEX fee, which should be very small, if not zero. All buys/sells will have the same set % JOEMEX fee, that is very small, for profit for the owners of JOEMEX to also procure the minting. A buyer can have his bullion delivered in any 1, 10, 100, or 1000 oz units for a delivery JOEMEX fee, or can resell short his bullion on the JOEMEX for a JOEMEX fee, or can have his bullion allocated and stored for a JOEMEX fee, which, if substantial, in the aggregate, can pay for the minting, without even having a premium, which is really the way to go.
OK, there it is, laid out as a plan to defeat the CRIMEX, using an exchange that covers small and large units, with a common premium or fee, upon which, anyone, even JOE, can trade. Now we need some big boys, or a government, (does anyone speak Chinese?), to start it off, and therein lies the CRIMEX death bed.
Derrick
=========
Required Rodent Training.
"Democracy is a form of government that cannot long survive, for as soon as the people learn that they have a voice in the fiscal policies of the government, they will move to vote for themselves all the money in the treasury, and bankrupt the nation". Karl Marx
But old Karl Marx left out the capitalistic nature of self-reliance, the conner stone of a sucessful demoncracy. Our founding fathers specified REAL money to keep the gov honest, living within small taxes, (there was no income tax upon which to build the unforseen welfare state, resulting in the FED-IRS-FIAT enslavement of the people), did not forsee the use of fiat to disproportionately project power about the world, saw a perpetual self-reliant citizenary with a small gov. Unfortunately, the dem have destroyed self-reliance belief of most Americans, and the potlicians have blown up government and its deficits, and destroyed the based upon which democracy can funtion well. WE'RE FREAKING DOOMED.
THE BOTTOM 50% pays 2.9% of taxes. WOW!!!!! Surely they dont care about paying taxes, (The Reps are blowing smoke to them) being very patriotic, making only the productive pay taxes, destroying motivation to gain and produce, as the blame gamer Biden sees it.
That means the bottom 50% should be locked into the DEM's gov care, pandered by the Dems, and the bottom folks just suck it up. That tells me that no matter what, the experiment of capitalism is dead, and that the US will continuously devolved into the under world of hand outs and gov care for an increasing number of voters, until, there is no turning back. once we are over 50%, is there no turning back? I dont think so. As the guru would say, we're freaking doomed!!!
I have 3 Hampsters, F, Emille M, Collette, F, and Linquinie M, (for those of you who have seen, RATATOULLIE). These rodents depend upon uncle derelict to spend household money to feed these unproductive rodents, who only play and eat and sleep. They contribute little to increasing the productivity of the household GDP, they pay no taxes and do not contribute to the household expenses, but, will stay my friends in their little cages, for only so long as I pet them with pandering, and feed them, care for them, and employ them with little cage toys. They love me for it and will vote for me, as long as I continue the deficit spending cage care.
Obama and the DEMS' socialism are destroying this nation, by pandering gross gov care, to weak self-centered losers, mostly, which gov care destroys self reliance, self respect, and productivity, to win an election, the continued consequences of which will be a continued deficit and degrading dollar and degradation of the US. Both Dems and Reps push the bailouts, the Dems more than the Reps, but both are weak in political clearity and direction. Both get failing grades with their BAIL OUTS into socialism.
“A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to lose fiscal policy, (which is) always followed by a dictatorship.”
“The average age of the world’s greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, these nations always progressed through the following sequence:
From bondage to spiritual faith;
From spiritual faith to great courage;
From courage to liberty;
From liberty to abundance;
From abundance to selfishness
From selfishness to complacency;
From complacency to apathy;
From apathy to dependence;
From dependence back into bondage”
*(There is some uncertainty as to who actually made this quote. But it doesn’t matter who said it, as it presents a great truth about the cyclical nature of human behavior over the ions. And doesn’t it sound all too familiar, especially the part about “loose fiscal policy”?)
There’s no mystery as to why this cycle works. Poor economies force humans to adopt positive behaviors. And good economic times results in negative behaviors, to the point where it eventually brings the whole system down upon itself. And the final tragic end result every time: Bondage.
A couple days before the election, I had called an OBAMA win about 10 days earlier, in view the economy, and was talking to a couple of Laguna Beach locals at a buddy's place. Lag beach is very liberal, in a conservative congressional district.
100T in unfunded liablities, AINT ENOUGH, is the leftist mantra, as far as I can tell. No amount of gov-care will be enough, as addicts always want MORE. And one guy goes, if I get sick and cant work, I will have to go BK. We need universal health care. And even though I hear it, time and time again from the rodent heard, I am always astounded.
I said buddy, when you were born, the only thing you are ENTITLED to, is a tit. When you come into this world, no one owes you a GD thing, and why you think you have some kind of entitlement right to take money from others to pay for your life style, IS BEYOUND ME. And how you would degrade yourself by taking gov assistance, is beyound me. They demand not only mom's, but the gov tit, in perpetuity. I just cant not believe how these lefties have not self-respect, no personal dignity, and line up for the hand-outs, (just like my hamsters), and the drop of hand-out check. Just amazing how people think, and he, of course is not alone. This is america, and it is now full of "its all about me", socialists.
The have not lefties say give me. The have lefties says, but dont touch my wealth, I will move it off-shore (Soros). A farce of course. And it is beyound me. Incomprehensible how people will sell their votes for the pandering promises so that they too can become gov-tit sucking socialists. Just amazing to me. Yet, these lefties seem to think they are ENTITLED to other's money to pay for their health care. ENTITLED!!!!! Do you get that? Where in heck do they get that? These lefties have been so conditioned by the Dem pandering for DECADES, actually, since early 1900s, and it is now so engrained into their thought proces, that I believe, (quoting a famous guru), WE ARE FREAKING DOOMED!!!!
I wrote a piece in "china transforms north korea" where I talk about the failed unaffordable promises of the left, and OBAMA will be a failure in view of the Left's eyes, while I think he will move to the center, and be very pragmatic, (hoping anyway), and he will pi$$ off many a lefty, with his broken pandering election promises, but, what's new about that on the left? MARK MY WORDS I dont really have problems with Job Programs, like building need infrastructure to get people back to work if unemployment goes to high, as long as there is value for money paid. Military-Industrial complex jobs is ok as well to serve national defense. In bad times, a little "socialism", is ok, if limited to jobs programs, clinics, shelters, and soup kitchens should be the bounds. Remember, wealth and poverty are not crimes and it is immoral to redistribute income, to steal from one and hand over the stolen property to another, and both are general nothing more than a reflection of societal reward for one own's productivity, requiring rewards to promote the highest level of productivity, which is the aim, is it not, to increse the standard of living of all, thereby?
If this whole thing implodes, and depression hits, and I will at least have some measure of satisfaction watching some of these lefties pick danelions to survive. The Left will take us all down, (with the right no better with their bankster bail-outs).
Many a hard-core lefty are rooting the gov-care on, knowing how distructive it is to sound money management, and hence, the gold bug world has many a lefty cheering on the gov-care, for not only the hand-outs, but also for the bullion rise. AINT THAT SPECIAL? Almost like 80% of the gold-bugs just a hoping and praying (excuse me, they are mostly immoral, so not much praying), that the whole thing collapses so they can make a buck at other's expense. Aint that special. Just listen to the words of most lay gold bugs, you do get a sense, they just hope the whole thing collapse. Aint that special?
It all goes back to real money. If real money was the coin of the relm, deficits would be gone, and hard choices made. Its the FED-FIAT-IRS complex that has corrupted America, mostly pushed by the "anything goes, if it feel good do it, there are no rule, marry a hamster for crying out lound, and, there are no consequences, even from the decadence, as, the gov is here", dem leftists.
Last night wife and 2 boys went to the park, after dark, and I took, Big-Bad Emille, polite Collette, and red-eyed Linquine to the park, all transported in three rat balls, (no not the wife and boys, the hamsters, silly) and I released them at the park, and man-o-man was that fun, them little hamster just running wild, OPEN and FREE FREE FREE, (well I kept an eye on them), and they would run and run, all over the grass, basketball courts, in spurts, stops, sprints, just fun, and all the kids at the park were watching, and I let the kids pet and hold the hamsters (I have trained them well, they dont byte at all).
Yeap, I feed them, employ them with cage toys, house them each in spacious multi-room huge elongated tubed cages for each, spray lice/tic/flea sprays as need under universal free health care for all, I even wash their dirty butts from time to time, and I provide bedding material for warm cozy nights in the back yard cages, and now they get year-round camping trips to the parks for out-door recreation, beyond the back yard recesses as well. Yeap, my rodent heard just loves me, (they never bite) and they will vote for me every year!!! (as long as I promise them everything). Hamster rearing should be required training for any dem office seeker.
ON THE FREAKING FLOOR!!!
Derrick
==========
Le Patron
Free Trade
There are those who claim a PPT rigs the equity markets, and a GOLD CARTEL rigs the bullion prices, and a FED rigs the fiat values, and a MINT who rigs Eagle deliveries, and, well, I guess the list goes on. I know the name of that tune. Rig Rig, everywhere they rig, blocking up my profits, wasting my time, control this, control that, cant you see the rigs?
But lets take it just one step further. As we all know, the US and China have lead the world with the Free Trade agenda. Within the last couple of months, the US has put up some 2T$ to bail out the banks and financials who have fraudulently zapped their client's money, and China just announce a whopping 600B$ to stimulate their economies to the great advantage of domestic steel industry, an international dumping industry, that will be used to support infrastructure improvements. The EU is no better, pumping money into their markets as well, subsidizing the Airbus. All, by the by, use fiat money, another form of corruption, for such purposes. And what are those purposes? To prevent an implosion? To stimulate the economies? How about to effectively subsidized corrupt markets and participants. And they all want to be corrupted. Detroit auto, and now the EU auto makers are at the begging bowl. They want to get some corruption to, while the gettin is good.
But wait a minute, direct government aid to any industry is in effect a subsidy, and is prima facie unfair international competition, just like China Steel, and EU airlines and the US auto industries. The US has an unfair advantage in the financial markets, which is now being subsidized. That bail-out money, however, is just another form of rigging, another form of corruption, as well as free market duplicity. Its called subsidizing local industry to the disadvantage for foreign industry, and that is economic discrimination, far from being anything but free, as it is controlled, as that is what the Free Traders use to call unfair competition. Not any more.
The Global Confluence as discussed in the LeMetroPoleCafe Off-Topic Forum, under "China Transforms North Korea" thread, projects replacing war and fiat with trade and gold, in the out years. The trade wars are heating up using unfair competition and using local subsidy bail outs, which trade wars have now begun in earnest, and, coincidentally, there is now talk about a gold backed international currency at the G20 that is coupled with bail outs enumerable. So, on a global free trading scale, the big world economies and their governments are engaging in inherent financial corruption, immoral bail outs, and blatant unfair competition, as the starting gun of the TRADE WARS, now, however, under supposed necessities, which bail outs are just another rig job, but, that is OK, because all now tacitly agree that fairness is no longer required under free trade.
Derrick
================
Le Patron,
We Asked For It,
In ancient history, like May this year, there was increasing prices (e.g. common inflation), and the FEDs and writers were all concerned about inflation getting to high and sustained, because that would embed inflationary expectations, and would, cement sentiment that would then actually accelerate inflation, where buyers buy as soon as the pay check hits the banks, which reinforces the inflationary trend. The FEDs target inflation at a modest rate, say about 2%, so as to allow decreasing debt burdens, and more deficit spending, and hence, more power projection, but without the accelerating inflation, due to controlled sentiment of inflationary expectations. However, once you cross the line of embedded inflationary expectations, severe restrain measures are needed to ring out those inflationary expectations. Hence, Volker in 1980 with his 18% interest rates. We had modest GDP growth between 2001-3 when inflation was considered contained, only to have inflation rear its ugly head beginning in early 08. But that has changed in October with the CPI recently going to -1%.
Now comes the mortgage bubble, a pop goes the weasel, the financial weapons of mass destruction, the OTC derivatives, and then the financials fall apart, and now the hedge funds are throwing in the towel, and many others, in a total international meltdown. Prices are dropping fast, (eg common deflation), and if that deflation continues for long, therein lays the basis for deflationary expectations, where buyers hold off buying, and hence, save their dollars, which then reinforces the deflationary expectations, in a vicious cycle, just inversely like inflation, and if the deflationary cycle is allowed to continue, it leads to a depression, a very bad thing in deed. Deflation serves to increase debt burden, a very bad thing, and that is why deflation is more feared than inflation. To ring out the deflationary expectations, money rates are dropped, easy money is given out, government provides hand outs and work programs, and more deficits, etc., to reinflate.
Deflation and Inflation are mirror to some extent. Inflation leads to inflationary expectations that leads to hyperinflation-stagnation. Expensive money has been the traditional solution, ala Volker 1980. Deflation leads to deflationary expectations that leads to hyper-deflation-stagnation, aka depression. Cheap money has been the traditional solution, ala FDR 1933-42.
While the government always tries to put lip stick on a pig, to make things always appear rosy, to the voters, by and large, they have it right, expensive money to cure inflation and cheap money to cure deflation. With a target of 2% inflation, the government can project power through modest deficits, yet not let the inflation get out of hand. Hence, the FED targeting of very low inflation rates.
Now, in 1980 the government played the traditional remedy, expensive money to cure inflation, but that cause allot of pain. I remember it well. But modernly, Americans are just not capable of pain any more, without most in congress and the people getting all upset, so, in the 21st century, pain is out, yet, these same tax and spend types want more than the tax burden can support without destroying the economy. So, Americans collectively can not now endure any pain to correct things. Americans collectively must also spend more to feed, care for, and support many on the government take, but with moderate taxes, and hence, increases in deficit spending. The government is thus in a political box, without the will do to the right things. Politically it cannot have 1) balanced budgets (as there are those who always wants more social spending), 2) cannot raise rates to high to curb inflation, (as Americans cant bear the pain), 3) cannot raise taxes, (as the whole economy will tank leading to less revenues, not more, and less hand outs). So, balanced budgets, high rates, and high taxes are out. So what can the government do, in stead? What possible other choices does the government have in doing the balancing act between the demands of the people, perfected through congressional actions, and maintaining the inflation targets?
The government can:
1) Lie about inflation to defeat inflationary expectations;
2) Suppress gold to defeat inflationary expectations;
3) Support markets to defeat deflationary expectations; and
4) Bail out everyone and anyone to reinflate and defeat deflationary expectations.
While Mr. Bill Murphy and the GATA following can rightfully claim that the markets are rigged, and that gold is suppressed, quite honestly, the pandered weak-minded its-all-about-me Americans have given the US government very little choice. Are the manipulations, lies, and rigging wrong? Well yes, if you believe in fair and free markets and are a true jungle capitalist, but no, if you are a socialists who believes in "intervention" "economic appeasement" and "totalitarian control", which are really code words for, well, you guessed it, manipulations, lies, and riggings. Are the manipulations, lies, and riggings evil? Well no, given the choices the American people have placed upon government. The manipulations, lies, and market riggings are wrong, but not inherently evil, effectively serving the will of the people. I will submit that GATA's complaints result from the American people losing their self-reliant capitalistic roots. The government employees are not the devils, but misguided by the demands of the American people, as the American people effectively demand manipulations, lies, and riggings. We got manipulations, lies, and market riggings from the government, because we asked for it.
Derrick
======
Le Patron
Dow:Gold Ratio of 0.4,
For a graph of the Dow:Gold ratio over the last century, please see:
http://www.gold-eagle.com/editorials_08/degraaf112108.html
The FED was created in 1913. Since then, we have had 3 major Dow:Gold ratio super cycles, each having about a 37 year time period. As we all know, fiat money, created in 1913 by the use of the FED since then, carries with it inherent manipulations and interventions causing high volatility in the financial markets. From eye ball approximations of the graph, one can see increasing Dow:Gold ratio highs, at about 18:1 in 1924, 22:1 in 1966, and 30:1 in about 1999. The trend is increasing, with higher highs, in the Dow:Gold ratio. The bottoms are about at 2:1 in 1913, 1.8:1 in 1925, and 1:1 in 1978. The trend is decreasing with lower lows, in the Dow:Gold ratio bottoms. The current trend is toward a lower low. The projected next bottom in the Dow:Gold ration appears to be about Dow:Gold = 0.4. The Dow:Gold ratio just hit about 10:1 from the 30:1 ratio high in 1999, and hence, the down trend in tact and should head much lower. It is also observed that the down trends of the major cycle is much steeper than the up trends of the major super cycle, at about 1/3. That is, it takes 1/3 the time to go from peak to trough in the Dow:Gold ratio, than it does from trough to peak. With a super cycle of 37 years, 1/3 of that time is 12 years, and hence, the super cycle trend indicates a Dow:Gold = 0.4 in 2011.
Lately, many are calling a gold fair market value of $14,000, and many are calling for a Dow bottom at 6000, and that means, 6000Dow/0.4 = 15,000$/oz Gold in 2011, and is consistent with those fair market value estimates. As well understood, silver outperforms gold toward the end of surges in prices of gold. Currently, the ratio is way out of alignment, at 83:1, mostly caused by the huge summer smack down in silver from 21.30/oz to 8.60/oz, and on a smack down, silver underperforms gold, being more highly volatile in price. At gold price surges, Silver can hit as low as a gold:silver ratio of 15:1 and that is based upon historical prices, but in the extremes, a Gold:Silver ratio of 10:1 is very realistic.
So lets fast forward to 2011. The dow should bottom at 6000, Gold should hit $15,000/oz, and silver, are you ready for this, should hit $1500/oz. So, lets keep our eyes on the Gold:Silver ratio, as well as the Dow:Gold ratio, enroute to $1500/oz silver, $15,000/oz gold, and a Dow:Gold ratio of 0.4.
Derrick
=========
Note: in 2005 said that winter of 2010-11 would be the Fiat collapse.
========
Le Patron
They're Freaking Doomed,
I was astounded to read in 11/24/08 Midas that "The Gartman Letter disparaged the rally and went short at $808, with a 3% stop, a brave move". Excuse me, that is not brave, but so apparently dumb, that something esle must be up. Anyone who short golds during a international financial meltdown, has to be, by that prima facie evidence, uninformed, or insane, or criminal. This is not just a "bad call Ripley", but rather some kind of a narfaroius call. Mr. Gartman is a well manner man, ostensibly highly intelligent, well known and respected in many circles. Something is just not right here. I imagined a "black box" calling DG, and saying something like, "its time for all patriots to call gold lower", from the socialism mainstream speak, and DG answered the computerized voice call to arms from Central Gold Cartel HQ (CGCHQ). But then I take a step back, and I realize that there are many uninformed investors out there, scared to death, hiding in their Financial Implosion Bunkers (FIBs), with what little chips and dips they have left in this world, and they turn to the DG MyGoldGame guru, who basically tells his disheartened and scared readers looking for sound advise, during the Greatest Financial Bail Out in History (GFBOIH), and during the Total International Systemic Meltdown (TISM), to short GOLD, of all things, with his trit little analysis, if it goes from lower left to upper right, we are in a bull, and if it goes from upper left to lower right, we are in a bear. Surely, he is not into fundamentals, which is really where he misses the boat. DG sitting in the position he is, knowing full well that his readers will take his advise in large measure, but know that he is leading his readers into one of the most dangerous financial traps there are, shorting gold in a financial meltdown. This "bad call Ripley", goes beyound a prima facie bad call, its really criminal what DG is doing to his readers, as they're freaking doomed.
Derrick
==== Gold dropped 40$ on 12/1 so DG calls was a good one.
Thi
|
|
DerrickMReid |
|
11-30-2008 @ 8:13 PM
|
|
|
Member
Posts:
Joined: Aug 2007
|
LePatron
Demand a US Gold Audit,
President Bush, et al. Please kindly pass this along to President Elect OBAMA. Why wont the US gov audit Ft Knox gold reserves to assure the people that its not ALL GONE? And why will not mainstream media ask any questions? I suppose the audit wont happen, until some day, OREILLY will claim that the GOV DID NOT WARN THE FOLKS (about the subprime mess, yet I personally sent him email, yet nothing was done). OREILLY is a farce in this regard, and will probably ignore this message as well. But how about it? Why will not the gov audit the nation's gold reserve? It's the PEOPLE's gold, not the government's gold. Curious minds would like to know. THIS HEREBY GIVES THE US GOV and PRESIDENT ELECT OBAMA NOTICE that credible allegations have been made that the US gov through a cartel of banks have plundered the nation's gold in support of the STRONG DOLLAR POLICY.
On behalf of the American People, I hereby demand a US gold audit.
Derrick Michael Reid Laguna Beach CA
"If these banks lose control of the price of gold when they hold such large short positions, it could destroy them. This has created a no-win situation. This is why all the stops appear to have been removed for these banks to continue to control the price of gold. But, the cost of doing this will be that the US will have to start (if it has not done so already) giving these banks US gold from Fort Knox. How else can they come up with gold to stop the price of gold and silver (and ultimately oil) from rising? If I were the incoming President-elect, I would not want to go down as the President who will be blamed for giving away the US gold supply. If I were he, I would call for an immediate inventory and accounting of gold and investigate the manipulation of the gold and silver markets by these US banks. Unfortunately, the husband (the US government) will most likely hide the truth of its affair with these immoral banksters until the wife (the US people) find out and call the husband to task for its illicit affairs. We all know what happens then..." Steve Hickel http://www.gold-eagle.com/editorials_08/hickel112908.html
=========
LePatron,
Sell, Loan, and Swap,
Surely the central banks have unloaded allot of gold over the past decade through sales, beyond the swaps and loans. Gold bugs can play that game, as well. Here is how.
Kincross picked up a mine early this year, and the café generally thought it may be the start of M&A in the miners where the majors go on the hunt for juniors. But, the credit squeeze hit, and bullion went off 25%, and miner acquisitions are at a stand still. The majors are probably looking at just survival in these uncertain times. The majors would probably only buy juniors that are at or near production. It may be some time before the majors start jumping into acquisitions, at least until gold moves much higher for a much longer period of time. Also, most of us long and strong junior share holders are off huge, with shares prices off as much as 75-90%.
However, the seasonal plays in bullion remain intact even with, or perhaps as part of, the financial meltdown. In late summer, the call was to buy more silver and swap your gold for silver. In the winter, its time to now switched, from buying bullion, assuming you are loaded to a good comfort level, to buying shares again, for example, doubling down and average down the price of the big junior losers. Good money after bad? Who really knows, but a technical and fundamental bounce up is expected. A rebound in bullion prices is also expected which will lead to recovery in the majors and juniors, eventually. When? Who really knows, but spring time should see a strong bullion rally, as usual but with improving fundamentals.
This year's sell off from $1000/oz to $680/oz in gold could take 18 months to base out (like from the 2006 highs), so it could be that it will be a very long wait for the stars to align, but aligning is in process. True gold bugs are inherently very patient, with unshaken resolve to retain wealth in the precious metals. Yet, the financial uncertainty could propel gold as much as $1000/oz higher in heartbeat, so, no one should be out of a precious metal position at any time. Currently, bullion may be mostly in silver and can be traded for gold at 81:1, currently, in addition to retaining your junior shares.
After moving into silver in late summer, a plausible plan is to now average down your big losing juniors and buy them through April with your spare cash. As always, take the share certificates in physical possession for each buy, and of course, record the purchases for each junior share certificate, now divisible for respective certification capital gains accounting. Hence, for some juniors, one could have multiple share certificates, each with a different cost basis. One can now cherry pick the bases of these share certificates for selecting the worst ones, or best matching to gains, to create share capital losses. If one has a reliable straw man to whom to sell share certificates at current prices, and not through a broker, but a private person, but with an option to buy back at that same price, one can realize capital gains loses yet have an option interest to buy the shares back but at the same sell price. Thus, one can sell share certificates to a straw man at lower price than originally paid, but at a capital loss. When one exercises the option to buy the share certificate back, but at that lower price, one retains the junior share position, but now at lower basis, while generating capital gain losses.
It is expected that the bullion prices will return to the old highs and possibly much more, and some are calling for $1200/$30 or 40:1 Ag:Au ratio by April 2008. If one acquired the silver having traded gold for silver at 80:1, silver can be partially sold, in April, for profit and partially traded for gold but now at 40:1. Hence, a doubling of the gold position, 100% gain in species. About half this gain, 50% can be sold to take some profits on the bullion trade, and realize capital gains. The sales of the share certificates to the straw man of the juniors shares that are way off, that created the capital loss, can now be used to offset those capital gains, and hence, minimal or no tax liability. That is, trade the silver back into gold but at a much lower ratio, say in April at 40:1, with some profit taking, and the selling of junior shares to the straw man, allows one to increase the overall bullion position, allows for taking some profits to offset some losses in the juniors, but still in the junior position. The option to buy back the shares from the straw man should be a very small nominal amount, and could be bilateral, meaning that the straw man could buy net 360 days with an option to sell them back, and hence, the straw man and the seller both can force the buy back. A straw man is used to perfect capital loss but with rights to buy back and with the option to buy back, but now at a lower basis. In this manner, share basis is reduced, tax liability is deferred, bullion profits are taken, and the over all bullion position increased.
One should hold shares until they are well into the green, if you are long and strong, and don’t panic sell, and ride gold and your shares at a lower basis until summer, and then, start buying more bullion, but swap again your gold into silver for another winter run up. Generally, given the seasonals and Ag:Au ratio price surge sensitively, one should be in gold between April to August and in silver between August to April, to get maximum bullion gains on the swap, to ride silver up and ride gold down, but one should always be in a PM position, in case prices leap up. Never be out of a PM position in these days of financial uncertainty. So, one should average down your juniors always taking in possession your certificates. Take some bullion profit in April and offset your junior way-in-the-red losses in the sale to the straw man. Swap silver for gold and ride gold until late summer, and then, in late summer buy more silver and swap your gold back into silver, in anticipation to another seasonal run up.
So, the plan is to offset junior share loses using option to buy back, and with bullion capital gain offsets for minimum taxes but with cash from the sale. In the winter, like now, one can average down positions, but with separate certificates for keeping track of respective basis for each lot of shares purchased with respective certificates in hand. Of course, majors could be used in stead of juniors, but that decision is a risk tolerance one, as majors will still leverage the price of bullion. Some prefer the wild west of the juniors and explorers, but conservative majors are good also. Now is the time to also try some share options on the majors, depending on your risk tolerance.
After six months, Spring to late Summer, and in late Summer, with cash from the April bullion sales, with minimal tax liability, exercise options and buy back your shares at that low price from the straw man, thereby preserving your position, but with an adjusted basis downward that was used to minimize capital gain taxes on the April bullion sales. In late summer, one can swap silver for gold and in the summer buy more silver bullion also during the summer. In this manner, the bulk of wealth is always kept in bullion, but swapped between silver and gold, to offset losses in shares that are held long term for maximum capital gains at cash in time at the blow off top in price.
Here is the sequence of the Ag:Au ratio, that would be favorable.
A) 80:1 Swap gold for silver (late summer).
B) 40:1 In the Spring with $1200/$30 swap silver for gold at 40:1, and cash out a little of the bullion for tax capital gain to offset losses on sold junior shares to the straw man.
C) 70:1 Swap gold for silver again, and if a summer sell off, but at higher prices levels, a return to 80:1 would be improbable as gold and silver generally move higher.
D) 30:1 Swap Ag for Au in the Spring with the bull in process, generally with an decrease Ag:Au ratio, and with wild price fluctuations.
E) 60:1 Swap Au for Ag in the Fall
F) 20:1 Swap Ag for Au in the Spring
G) 50:1 Swap Au for Ag in the Fall
H) 15:1 Swap Ag for Au in the Spring.
This is an expected fluctuating bull market in the PM, that offers, minimal or deferred taxes, adjusting downward basis of junior shares, using the silver to gold ratio swaps for taking bullion profits while still increasing the overall bullion position.
This plan should work very well, as long as: 1) The precious metals are in a bull run, expected to last at least another five years, and probably much longer, re peak gold; and 2) Wild volatility exists for the Ag:Au swaps.
This plan would require: 1) Straw man sales of loser shares for any particular share certificate. 2) During each Spring swap, take some bullion profits to offset share losses and thereby minimize taxes, yet increase your over all bullion positions.
This plan allows for increasing positions: 1) to accumulate shares, major and junior shares, when bullion starts to rise in the winter, with perhaps a few major share options; 2) to accumulate bullion when at summer lows; 3) to swap when ratios hit targets during wild volatility; and 4) to defer capital gain taxes using some profit taking on the spring swaps, until juniors recover and are sold for huge profit.
Selling loser shares to a straw man with option to buy back, is effectively a lease or a loan of those shares. Swapping silver and gold based upon seasonals, can increase wealth substantially.
If the Gold Cartel is going to sell, loan and swap for short advantage, you can play that game too for long advantage, by seasonally doing the same, and that is, sell, loan and swap.
Derrick
====
LePatron,
Bush League Banishment,
Zeal offers its technical analysis of the gold market. GATA offers its informative analysis of the manipulation of the gold market. Both advocate gold ownership. But, Zeal and GATA are keeping their markets separated. Zeal does not touch manipulation, and GATA does not rely upon pure TA. It seems to me, that Zeal respected Midas' market niche, and left the proving of manipulation to GATA. How dare he! I am pleased that the separation was civil, but I am troubled when another's analysis is sanctioned for respecting the publishing Midas' market niche.
I believe in interventions, call it manipulation, if you wish, to imply evil, but no matter, it is what it is. Zeal's preference was to stay clear of shawdowstats, and the manipulation, and all the others blaming the government for various nefarious reasons, and to stick with government statistics and traditional TA analysis, which is of value, followed by mainstream, but was apparently banished, for not screaming the manipulation call to arms, and for not towing the conspiratorial party line. As I see it, a gold promoter, a desired friend of gold, has been banished from the Midas realm, because he did not convert, in a hooded candle-lighting ceremony, serenade by a chorus of ranting cries of evil government criminality from a bunch of raucous hardcore conspiratorialists. My My are the conspiratorialists thin skinned and intolerant. The dropping of Zeal from LeMenu, in my view, was a bush league banishment.
Derrick
=============
Le Patron,
A Bad Call,
In the 12/10 Midas, it was reported that: "The Gartman Letter abruptly cut its entire gold short, blaming the softening dollar. Considering the NY nature of today’s move, one wonders if this well-informed observer had heard something".
Yeah, DGL heard it all right, Midas with his "sad sack", and your's truly asserting near criminality.
On 11/24, Midas post a Le Patron memo, "They're Freaking Doomed, I was astounded to read in 11/24/08 Midas that "The Gartman Letter disparaged the rally and went short at $808, with a 3% stop, a brave move". Excuse me, that is not brave, but so apparently dumb, that something else must be up. Anyone who short golds during a international financial meltdown, has to be, by that prima facie evidence, uninformed, or insane, or criminal. This is not just a "bad call Ripley", but rather some kind of a narfaroius call. Mr. Gartman is a well manner man, ostensibly highly intelligent, well known and respected in many circles. Something is just not right here. I imagined a "black box" calling DG, and saying something like, "its time for all patriots to call gold lower", from the socialism mainstream speak, and DG answered the computerized voice call to arms from Central Gold Cartel HQ (CGCHQ). But then I take a step back, and I realize that there are many uninformed investors out there, scared to death, hiding in their Financial Implosion Bunkers (FIBs), with what little chips and dips they have left in this world, and they turn to the DG MyGoldGame guru, who basically tells his disheartened and scared readers looking for sound advise, during the Greatest Financial Bail Out in History (GFBOIH), and during the Total International Systemic Meltdown (TISM), to short GOLD, of all things, with his trit little analysis, if it goes from lower left to upper right, we are in a bull, and if it goes from upper left to lower right, we are in a bear. Surely, he is not into fundamentals, which is really where he misses the boat. DG sitting in the position he is, knowing full well that his readers will take his advise in large measure, but know that he is leading his readers into one of the most dangerous financial traps there are, shorting gold in a financial meltdown. This "bad call Ripley", goes beyound a prima facie bad call, its really criminal what DG is doing to his readers, as they're freaking doomed."
How many of DGL's readers jumped in on the short side, in the face of a finanical meltdown and in the presence of a monster 8 year long bull run in gold, and lost a ton of money? Look, I can see cashing out at an interim high in price, and putting some cash on the sidelines looking for a better lower re-entry point, but to actually short gold in a multiple year bull market, with decreasing mine supplies, with a comcommitant financial melt down, beyond all historical accounts, is way beyound being trecherous or folly, it is more than that.
The DGL short call, "It was a bad call Ripley, a bad call".
Derrick
=======================
Le Patron,
Stand Out
Today, just before the comex open, gold traded at 835. Then the goons came in and the price dropped to 825$/oz in a heartbeat. Same old same old? Not so fast. Remember, the Cartel game plan is to limit the rate of increase in the gold price velocity d$/dt, so as to not scare the sheeple. Well, the sheeple are getting scared, alright, but it has to do with a global financial meltdown. So, we bugs look at the investing world, and it dont look pretty. From real estate, to financials, to manufacturing, the world is imploding, and the sheeple in a fright and flight response, run into dollars, T-bill and US bonds, the first knee-jert reaction. Not a very smart move with real negative rates. They will learn real quick, at their New Years parties, that they are all missing the boat.
"December 31 - Gold $834.50 down $4.30 - down - Silver $14.80 up 4 cents , Gold Closes Year Up 31% ", Misdas 12/31/07. 2007 was a stellar year for bullion. Silver is much more voltatile and hangs on the fortunes of gold, so silver has dropped allot but will come back, but much stronger. The focus is on the gold price. Today, GOLD was up YTD, after seven straight years of gains, with two weeks left in 2008. How many other investment markets can say the same thing?. Not many in these days of meltdowns, deleveraging, credit freezes, bail outs, and such like. If gold closes over 835 this year, with any kind of a positive gain, no matter how small, like a big sore thumb in the CARTEL's eye, will be conspicous to not only the investing world, but also to mom and pop, and all will pile into bullion, when bullion is the NEW YEAR stand out.
Derrick
===
People do read these Le Patron Memos.
See above Dow:gold ratio, where I indicated higher highs and lower lows to make prediction. Ditto here.
http://www.gold-eagle.com/gold_digest_08/chapman121708.html
==============
Le Patron, Well Well, gold at 868 as I write, with 3hrs to go in NY. Should I shake your faith? Now if there really was a CABAL of cartel banks suppressing gold, would not they certainly smack gold to below 835, right here and right now, to kill the 8th yearly gain in a row for the ancient relic? Maybe THE CARTEL shot their stuff in July, mostly, and are giving up.
CARTEL CAPITULATION as I see it! The power of gold can not be denied indefinitely, and 2009 will be gold's years bringing great news to friends of gold. It is truly a happy new years. Midas Won!!!!
Derrick
========
Le Patron
JPM and GS to propel Gold higher in 09,
Ted Butler just slammed the CTFC again for nonfeaseance, by not going after the concentrated shorts in silver. You posted compelling evidence against JPM as the culprit in gold. The CABAL failed to smack down gold today under last year's high, marking 8th years of gain in gold, yet, as we all know, it would not take much from the CARTEL to slam gold down 30$ today to deny the 8th year mark. I sense the CARTEL will be running for the hills in 09. Maybe it started today.
From one of our favorites at JSMINSET, trader Dan today. "On the delivery front – we began the delivery process for the thinly traded January contract. While not as impressive as how December started off, (it should not be expected to be) a respectable 1,138 deliveries were assigned. The Bank of Nova Scotia was the big seller with 1,067 while J P Morgan Futures was the big buyer taking 1,072".
JPM buying on the COMEX, and, GS going long gold on the TOCOM. What is really up with that? Do tell.
Derrick
==========
LePatron
10oz Bar Production Devastation,
Here is a current list of suppliers of THE PEOPLE'S BULLION, 10oz bars.
============================================================
First Majestic Silver 10oz Private Label Canada
American Precious Metal Exchange (APMEX) Silver 10oz US
Northwest Territorial Mint Silver 10oz Pan American Silver US
Sunshine Mint Silver 10oz under A-MARK brand Tulving US
Silvertowne Silver 10oz sold through APMEX US
Heraeus silver 10oz BullionDirect CMX serial# Austrian
====================================
Pamp Suisse Gold 10oz CNI Tulving NWTM Serial# (45mm x 89mm) Swiss
Johnson-Matthey 10oz Gold serial# by MONEX & GoldLine US
Haeraus 10oz gold by (Monex M Label serial#, bar design very poor) Austrian
================================================
After 20 years of manipulative suppression of bullion prices, mint capacity in the US has been degraded, if not virtually destroyed, with production very tight, particularly in silver. The CRIMEX suppression has resulted in 10oz bar production devastation.
Derrick
============
President Bush, HERO BUSH, my beloved president.
A discussion of the BIG LIE of GW Bush, setting the record straight, for his legacy in pertituity.
Counselor,
For sake of argument, i will accept your assertions that the so called "lies" were falsehoods, but let me at first rebut, WMD in syria and the Russian trucks and the syrian bunkers that no one has been able to examine, Al Queda operatives were operating in Iraq and its is logical that dictatorial Saddam would not let people just run free in Iraq without his consent, nigeria has yellow cake and saddam was interested and his purchasing operatives were there, i dont believe anyone ever said saddam plotted 9/11 though the al queda thugs were present in his kingdom funneling money to HAMAS and making risen near the Iranian border. So, I do not accept that these were in fact "falsehoods", and are or have been proven to be, INCORRECT statements, that is, falsehoods, but you and I can construte information, and arrive at equally rational conclusions. But that is what they are, MERE CONCLUSIONS, not statements of fact.
But what I can not phathom, is how you can go from an incorrect statement, a falsehood, to a lie, as a "lie" is an INTENTIONAL falsehood, spoken with the intent to deceive, and hence, for you to say, lie, you must, in the final analysis, be a mind reader, and I am not prepared at this time to believe you can mind read anyone.
Your jump from arguably construded inaccuracies to intentional deceit, can only be rationally perceived and explained, through strained tortured interpretations and reasoning based upon highly entrench prejudices, the hall mark of the screeching left.
Do you really think, Bush intentionally set up Powell, and bambuzzeled Power to regurgitate the "lie" before the UN. Any rational jury watching Gen Colin Powell present his agruments before the UN would conclude that Powell really did believe what he was saying, the passion was obvious to anyone. I watched him, especially discussing the modified trucks. You simply ignore the OBVIOUS, and, screech reflecting your desired result. If you want to believe something, you will find the reasons, and construde the facts so as to nicely fit your visions. That is a common trait of passionate prejudicial thinking that leads to wrong conclusions, and slander of noble people. It all sound nice, from your perspective, but it lacks common sense, and impartial analysis, the hall mark of a loon with a mission.
In stepping back, and looking at the total picture, one must believe that Bush is a man a faith, had prima facie intel on saddam's wmd, (saddam was hung for gassing the kurds, and all our troops had gas masks, if you recall, when they went in, fully expecting nerve gas canisters in the drive on Baghdad), and to place upon Bush's head your condemnation of intentional deceit, that must be based upon super-natural mind reading and conjecture, is one of the many reasons that the gold bug conspiratorial community is by and large laughed at by folks of common intelligence and sense, for obvious reasons. It is this COC-SURE reaching for desired conclusions that give us gold bugs a very bad name. (over xmas, my father said, yeah yeah, I heard about buying gold, and storing food and water for the collapse since the early 60s, and he laughs at me.)
In connection with the manipulation of the bullion markets, we do have many many admissions from public officials, AND NO DENIALS of market rigging. "we will do what ever it takes", "the US has a strong dollar policy", "I had to sacrafice free market principles to save the free market system", The JPM derivative book is a reported fact, and consistent with those admissions, consistent with the purpose of the working group. Where you have admissions from the horses mouth, and facts in support, well then ok, it is INTENTIONAL DECEIT.
Screech all you want, but in the end, there was congressional authorization, there were intel reports, and Bush acted there upon, without any intentional deciet. Did he emphasize those preceived facts to rally the nation? You bet, as any good leader and politician would in such circumstances, to gain popular support.
Sorry for the BAD NEWS, but I dont believe you can Mind Read, counselor Troy.
Derrick Michael Reid
Laguna Beach CA
=============
LePatron,
Feeling Out Gunned,
The battle rages on in the COMEX pits day after day.
Battle lines have been drawn, its out all war!
The CARTEL has many weapons of choice.
1) Index Rebalancing
2) Derivative Pounding
3) CB sales, leases and swaps
4) Jaw Boning a Strong Dollar, talking down gold
5) Media Black Balling of Gold Bugs
6) Major Miner Hedging
7) Certificates of NO bullion mint pooled deposits
8) Miner share shorting and naked shorting
9) Controlled CB Interest Rates on Fiat
10) The 24/7 fiat printing machines
11) Media Releases dumbing down market awareness
12) General Equity Plunge Protection
13) IRS tax payments required in Fiat
14) Government Secrecy
15) Ability to raise margin requirements
16) Confiscation/Outlaw of ownership
All Midas has is a 5000 year history of value and a cafe of whistle blowers.
Hey Midas, you feeling out gunned?
Derrick
=============
LePatron, Silver Outperforms, Something is up. Silver has out performed Gold, six days in a row.
http://stockcharts.com/h-sc/ui?s=$GOLD:$SILVER&p=D&b=5&g=0&id=0
The last time that happened, it was mid-March 08 when gold headed toward 1000$/oz and silver was pushing toward an eye-poping 21$/oz. It looks like a stampeed is in the making, and to fresh new highs, as silver outperforms.
Derrick
==============
This message was edited by DerrickMReid on 1-20-09 @ 7:18 AM
|
|
DerrickMReid |
|
01-07-2009 @ 10:59 AM
|
|
|
Member
Posts:
Joined: Aug 2007
|
Le Patron,
BUSH LIED, SOLDIERS DIE!!!!!!
This is the case supporting Bush, by a lay observer of the whole. Did bush lead the US into war based upon faulty intel? The perpondence of the evidence now known suggests he did. Saddam admitted to possessing WMD, and his generals were conviced, and saddam dodged 14 UN sanctions for 20 years, and after actually using WMD on the Kurds. Bush took him at his own words, backed up by intel, that was confirmed by every serious intel organization in the world. Even the Egyptians said he possessed WMD.
There were Al Queda operatives operating in Iraq.
There were Risen factories in Iraq.
There were connections to Nigerian yellow cake.
There were Intel report of super long range artillery.
There were Intel reports of advanced missle procurement.
There were prior known uses of WMD in Iraq.
There were prior building of neuclear facilities.
There were slaughter of 30K/yr for 10 years.
There were admissions of possessing WMD.
There were rape and torture rooms in Iraq.
There were brutal suppressions of Shites and Kurds.
There were Intel Reports of weaponized gas.
There were Intel Reports of attempts to buy yellow cake.
There were Military moves to capture more Gulf oil.
There were Reports of Counter Iranian Newk Development, now confirmed.
There were the rapes murders and pilages of Kuwait.
There were known violations of treatied no fly zones.
There were Reports of Terror support on Israel
There were confirming Int'l Intel Reports.
There were NO counter Int'l exculpating Reports.
There were Congressional reviews and approval to move.
There were years of violated UN sanctions.
There were wars of agressions, Kuwait, Iran, Kurdistan.
There were broken treaty obligations re gulf war I.
There were neuclear facilities and stores in Iraq.
For pete's sakes, the list just goes on and on. And you are Bush, what to do with this bad apple? From all indications, Saddam had WMD, had used WMD, admitted to having WMD, and was after more WMD, in a regional power play, and had proven to have a mine set that would lead to PROBABLE eventual use, and hence, and in view of prior bad acts, pre-emption would be highly desirable.
What would any RATIONAL person conclude from the sum of the whole? (Gen Ben Bulter, 1861, regarding contraband of war, (black slave workers), as the CS wanted escaping black returned, under the fugitive slave laws of the US, but, as the CS asserts that that they are no longer part of the US, Butler said he would TAKE THEM AT THEIR WORD, and not return escaped slaves, under US laws.)
200,000 troops were equiped with gas masks, and you dont do that unless you actually believe wmd were possibly in play. Those troop did find barrows of Neuclear fuel and uncovered the Risen factory, believed to be operated by Al Queda, so WMD were found, but not the expected large cashe of weaponized nerve gas, but, then there were reports of the 11th hour Russian truck convoy move to syria out of Iraq as the US went in, to Syrian underground bunkers, which reports have not yet to be fully investigated because Assad of syria is in control, which Assad just had a N.Korean Newk plant get taken out by the Jews, of late.
I would not require WMD, however, in my book, there was already plenty of justifications to take saddam down, and one pistol shot at an F18 in an no-fly zone would have been enough for me, by the by.
So, there was a "probable" intel mistake as to the cashe hoard of nerve gas weaponized into artillery shells. But to extend a probable INTEL "mistake" based upon faulty intel, to INTENTIONAL DECIET and IMPEACHABLE CRIMINALITY by the PRESIDENT, is a bit of a reach. Bush went before congress and got congressional authorization to move on Iraq. Bush was legally on all fours.
There is an old saying, if you dont make mistakes, you're not doing anything. At the time the US went in, the decision was not inherently wrong, based upon facts believed true and known and admissions from the HORSE'S MOUTH. (THIS IS THE COMMON SENSE PART)
Bush is charged with protecting US interests, and had he not MOVED, I would have considered that to be IMPEACHABLE NEGLECT, IN DERELICTION OF DUTY. You dont have to agree of course, but at least consider the view RATIONAL, rather than BS, as my bestest buddies in the cafe would characterize it. In the final analysis, of the affair, I think it very fair to lay the real blame or necessity of the invasion of Iraq on Saddam himself, through his burtal actions coupled with intentional obfiscations and as well as his own admissions, pretending for example, if false, that he in fact had weaponized WMD ready to go in sabor rattling after years of UN inspection misdirections. But, what is really astouding to me, is that the LEFT holds him up as the preveyer of truth, who is really a hienous international outlaw, over the noble, goodfaith, and protective actions of the US commander in chief. And that my friends, really tells you where are the heads of those screeching on the left. Damn Unamerican Unpatriotic Slanderous shame if you ask me. As what you hear from them FOR POLITICAL GAIN, is ILLEGAL WAR!! IMPEACH!!, Bush Lied!!!, Soldiers Die!!!
Derrick
==================
Le Patron,
The Ancient Relic,
Le Menu posted an article by Dr. Petrov, while Goldseek posted an article by Rick Ackerman. Both address gold, and its usefulness, with opposing views.
Dr. Petrov asserts that gold functions as money because it is not an indispensable commodity, and that it is well suited for use as money, a medium of exchange. That is, you cant eat gold when hungry, and hence dispensable, but its works well as money, the convenient form of money usage.
"Gold – Returns As Money New Stage in Gold’s Return to Money" by Hristo Assenov and Dr. Krassimir Petrov, Prince Sultan University, Riyadh, Saudi Arabia: In significant parts:
"Interestingly enough, just recently, the listed bullion coins now trade with one price.
Thus, the shape and the form of the coin are no longer as important as its weight. Whether it is a one-ounce gold coin with an image of a bearded man or a one-ounce gold coin with an image of a flying eagle, it is still one ounce of pure gold. Now, their value is perceived to be the same, and so are their prices in terns of paper money.
Basically, a single price for all major one- ounce gold bullion coins is a significant sign that gold is regaining its function as money again. However, we are not saying that gold has returned today as money; we are only saying that there is strong anecdotal evidence that the monetary system has evolved today into a new stage, where gold is now much closer to money than a few months ago.
The explanation is straightforward. For it, we need to explain the basics of money as understood by the classical and the Austrian schools of economic thought. Basically, money is very simple to understand, it is a commodity that facilitates the indirect exchange in human society. One person exchanges his products or services for another good that is not needed directly for its benefit of consumption, but for one that will be later used for exchange for something valued for its pure consumption, such as bread, eggs, or gasoline. This is an indirect exchange that has been facilitated by an intermediate good, which others will accept as a payment; this intermediate good is technically knows as a “medium of exchange”, and widely known simply as money." END===
Tough Love For Gold Bugs, By: Rick Ackerman 1/8/09.
http://news.goldseek.com/RickAckerman/1231398060.php
Rick Ackerman asserts that because gold is not indispensable it will not do as well as other commodities, and as such, there is a leash constrained around the yellow dog. He argues that because it is not indispensable, like tickets for a sold-out show, or respirators when the volcano erupts, gold will not do as well.
"As to the spoils, all that is tangible gold, silver, platinum, fine wine, collectible automobile, artwork, real estate, can be ranked according to its value in the investment arena. At this time and against the backdrop of credit collapse and deflation, “frivolous” tangibles – vintage muscle cars come to mind, have suffered immensely and will continue to do so. But against the larger reality of institutionalized historic inflation and resource depletion, tangibles are paramount.
Gold's desirability can be ranked by category. Jewelry demand is one weakening category that will detract from the metal's value for years to come. In Japan, frivolous tangibles like jewelry never recovered to pre-1989 levels and probably never will in real terms. And in the latest downturn, jewelry-related stocks have suffered more than most.
The value of gold lies in its place in time. And the problem with gold is its quasi-existence as a monetary unit during flight to safety. The final and ultimate security is not a “worthless' metal,” one that adorned the bodies of kings and queens. Ultimately, the tangibles that are most in demand are functional, like tickets to a sold-out show, or respirators when the volcano erupts.
Gold has its place in time. But at the time of lowest common social denominator, an investor has to produce something of barter value. Because the more dire the landscape the less use for a “frivolous” tangible like gold. It is this competition from other tangibles and the perception of this conundrum that has kept a leash on the yellow dog." END====
So, where is the truth? How possibly can someone buy that sold-out ticket, or that sought after life saving respirator, without some kind of monetary commodity unit, in hand, recognized world wide as value, to support the exchange that must be necessary to acquire the ticket or respirator. If the paper fiat money is found to be the fraud that it is, or that no can trust its value, other monetary exchange substitutes must be had. It is simply impracticable to carry around on your back, your tricked-out 1957 Chevy or that 1000 pound bag of soy beans, to the theater parking to buy the ticket from scalpers, or to the infirmary to buy the respirators. For any convenient exchange, a standard recognized medium of exchange of value, is indispensable.
Mr. Ackerman is misguided by not recognizing the usefulness of gold and silver as convenient ultimate stores of wealth, and their acceptance for 5000 years as mediums of exchange, be it in banks for golden wealth protection or on the street using silver as the ultimate street currency. I understand his propensity to talk down the yellow and white metals. He simply does not recognize the full value of gold function as a necessary medium of exchange.
Dr. Petrov is correct, gold and silver will do at least as well as all other commodities, despite not being or considered not to be indispensable commodities, because, over the long haul, they both will retain their useful functions as the ultimate currencies of choice for exchange, and hence, a commodity like demand, with silver used more on the streets as a street currency, and with gold used more as a store of wealth, as people will hoard both, for these very good reasons, to have money in hand, particularly gold, the ancient relic.
Derrick
============
My impression of Bush over all, is one of admiration for his personal strength, When in Command, Lead.
For the Bush Years
In conclusion:
1) People tend to believe what they want to believe, and construe facts, and glue them together in their minds, to support their predispositions.
2) The perponderance of the evidence suggest that Bush did not lie and acted upon faulty intel.
3) The Bush administration did not plan 9/11.
4) Peace through strength is better and lying down and taking it in the butt.
5) That appeasement of evil, terrorism, will not work, and only encourages more of it.
6) That it is sad that arab children in just wars are harmed as an indirect consequence of the terror culture of their parents.
7) The gov controls the PM market to support its strong dollar policy, what ever that is.
8) That there are allot smart people on this board, of differring opinions and prejudicial mindsets.
9) I dont like war, but believe sometimes, you just have to defend yourself, and moderly, its a preemptive and forward defense.
10) That colin Powell's action in Gulf I, directly lead to the need for Iraq war (Gulf 11), because he did not finish the job.
12) For israel to stop terror rockets, Gaza must be brutally subdued.
13) If obama does not blockade Iran to enforce IAEA sanctions and compliance, either there will be a nuclear exchange with israel or the world's primary oil supply will be held hostage to a nuclear standoff.
14) Obama will be successful in stabilizing the US economy at the expense of hyper-inflation leading to minimal $6000/oz gold by the end of his first term, with silver sitting at 450$/oz.
15) OTC derivatives counterparty failures are the main reason of the current collapsing markets.
16) CFTC is a blind-eyed joke.
17) Lack of regulations of the Banksters will cause a deep deep recession.
18) In first two years post Bush, gold hits 2750/oz by Dec-Jan 2010-11.
19) Bush legacy will be based upon whether Democracy holds in Iraq, and sprots in the middle east.
Now the final grades, The REPORT CARD.
all in all, I give GW Bush
A for courage,
B for effort, and
D for performance.
AND THAT's a WRAP of the GW Bush Years,
============
Le Patron,
The Golden Rule,
The 10th year GATA work summary by Midas served up yesterday 1/18/09 was very well done. It reminded me of the 3rd installment of the Bi-Currency Triptych, served up, three years ago, 1/14/06, "Anglos Rule The Bi-Currency World", on the Man Ray Table. The concluding paragraph seems to echo Adrian's analysis to which Midas referred.
"In the event of an intentional or unintentional collapse of fiat moneys, the USA and her Anglo sisters would certainly survive a global fiat collapse better than most. While wars are often used to place an aggressor nation above others in power, control, influence, and wealth, the current progress of human cultural evolution is to avoid wars were possible and cooperate together for the common good. It seems then, that an alternative to war has been found, this time around, as the Anglo world could do the same by placing itself as the financial rulers of the world in a globalized world economy, in a war free global community, without firing a shot, by simply collapsing the FRN through uncontrolled fiat money printing while retaining backup real gold and silver coinage sustained production."
Remember, he who has the gold, makes the rules, the golden rule.
Derrick
=============
Obama was great at the inagural, Justice Roberts screwed up the oath, Rep revenge, but Obama's speech was fantastic. CAN YOU SPELL JFK?
===========
Le Patron,
Keywords driving traffic to lemetropolecafe.com - Compete Search ... 4, derrick michael reid pate...derrick michael reid patent attorney laguna beach . 2.27%. 17.43. 0.56. 5, metripole cafe ...
searchanalytics.compete.com/site_referrals/lemetropolecafe.com - 45k - Cached - Similar pages
At times, I do not fit at the Le Metropolecafe, I offend people with my brutally honest appraisals, but people around the world are driven to your cite by my FAIR AND IMPARTIAL world analysis.
Derrick
===========
Le Patron,
When Silver Shines,
In 1477 silver was king, the Spanish silver coin was universally accepted money, and was equal in today money of $800/oz and more valuable than gold. Modern proof comes of such in the recognition of US military ranks that were modeled after European military ranks. A 1st lieutenant has a silver bar, and lowly 2nd lieutenant has gold bar. A lieutenant colonel has a silver oak leaf, but the major has a gold oak leaf. Full bird colonels have a silver eagle, and all generals have silver stars. Currently, the gold-silver ratio is 73:1. That will change to 16:1, the historical ratio of US tradition money, such as, the double eagle gold coin and the Franklin Liberty silver coin, as to their precious metal content relative to face value, when bullion really flies in late 2010, when gold hits 2750$/oz and silver moves to 172$/oz, when silver shines.
Derrick
=========
Le Patron,
The New World Order,
Putin, Hu, EU, and CBs have a profound FOREX dilemma. Putin was in Davos Switzerland crying to the G20 that the world must dump the US Dollar as the world reserve currency, that is, the Federal Reserve Note (FRN), that is not a constitutional silver dollar, but rather fiat paper money having an artificial inherent value based upon required IRS tax payments, and that has an intrinsic value of absolute zero. The US, once on the gold and silver standard, suckered the rest of the world into accepting these valueless paper notes for goods and services, who have all done so at their own peril. US citizens gave up the ghost in 1913 when President Wilson signed off on creation of the FED banks, and hence, stuck US citizens with that paper trash and surrender economic freedom to the Federal Reserve Bank, a privately owned bank, controlled not by the US government, but by domestic and foreign banks.
In the mean time, back in the Moscow, the Russian stock index is off a huge 70%, the Russian Ruble is in the tank at 36.1r/$, the Russian economy is slowing with rising inflation, with Putin's energy empire groping along at a mere 40$/barrow for oil, and now with riots breaking out, as in Moscow over superbowl weekend. In China, reverberations are had with charges and counter charges of currency manipulation as Obama's bullion hit man and new treasury chief Geithner fumbles the super power play and tics off the Chinese, the world largest foreign holder of US debt.
The world is plunging into depression as hot rhetoric flies back and forth, as the world economy spirals out of the control, with charges and counter charges of fault, and with banking defaults, as most nations attempt to devalue their fiat currencies attempting to maintain market share of foreign exports. One sad mess, all created by the use of inherently worthless fiat money, that put power in the hands of the banksters. Consequently, gold and silver bullion prices are on the rise during the financial turmoil and the panic now accelerating world wide, and bullion prices are likely to go ballistic in the near term, upward of $6000/oz by the end of Obama's presidential term.
Russia's Putin, China's Hu, and the EU's banksters apparently seek the demise of the US fiat dollar dominance as the world reserve currency. With Russia in the grip of strong-man rule, with Hu's communist party in totalitarian political control, and with the EU dominated by their left leaning socialists, they all had better be careful. They all might just get what they are asking for.
The global confluence of increasing interconnectiveness of all nations is continually increasing as human cultural evolution drives countries into more and more civil global cooperation leading to less war and no fiat money, being replaced by trade wars and bullion as the international medium of exchange. With calls of abandoning the US FRN as the world reserve currency, and with fiat money being devalued on a daily basis, there is only one practical alternative to the global fiat complex and currency mess facing the globe, and that is the long awaited return to real and honest money of gold and silver as the only global currency allowed and functioning as the only trusted medium of exchange between nations, businesses and persons, which would require a global UN world-wide treaty to perfect the reinstatement of the global gold/silver standard.
In Russia, commoners buy paper gold at the bank, having a counter party risk. Putin likes gold, but only for the Russian central banks. Not so in China, people can buy real gold and take physical possession. In the US, the US Mint is pumping out eagle coinage with demand skyrocketing of late, in the presence of bullion shortages at the local coin shops. In the EU, with Euro-gold and Pound-gold at all time highs, small bullion coins and wafers are practically all sold out.
The US FRN, the dollar, is only a note that is only redeemable in, (well you guessed it), more FRNs, the ultimate currency racket. There is no longer a promise to pay in any thing other than more of the same paper fiat money of zero intrinsic value. The US, in civilizing the world over the last century, has run an impressive national debt, essentially funded of late by foreign forex reserves, with social programs expected to multiply that debt in the coming years. Maybe its finally time to redeem those FRNs, such as at a redeeming rate of say, 1B$/oz of gold, to wipe out the US national debt over night, and stiff the foreigners, and thereby make them pony up for the cost of using free and safe trade lanes made safe by the US global military police actions over the last century. This of course would have bullion winners and FRN losers in the US.
In forcing all countries to redeem fiat money in bullion, those with notes and bonds denominated in fiat would be the big losers, while those holding physical assets, such as bullion, would be the big winners, yet economies world wide would be free of national debts, banker enslaving rate-controlling racketeering, with payments of a relatively small amount of gold to redeem the notes, and hence, the global currency and economic global reboot, back to lawful constitutional money.
Bullion as the medium of exchange prevents international unfair trade practices. Bullion in the hands of the folk places economic, and in turn political power, in the hands of the people. By moving away from targeted inflationary fiat use, used to sustain an every increasing welfare state, socialistic economies, military projections, and bankster control over our lives, government and the people will have to live within their means, and hence, jungle capitalism will resurface as socialistic programs become untenable. There would be a global rebirth towards smaller governments, toward more pure capitalistic economies, toward less banking enslaving control over the lives of the people. There would be, (for the first time) real and honest politicians, real and honest budgets, real and honest international trade practices, as political and economical power shifts from the governments and the banks to people holding real and honest money.
Those countries with large gold and silver mines (China, US, Russia, Australia, Canada), with huge domestic fiat debts (US), with low forex holdings and exposure (US), with sound infrastructures (US, Australia), with relatively going economies (US, China and Australia), and with a culture of free enterprise (US and Australia and Canada) will do the best. The US and Australia will be best situated for the transition. Russia's oil empire will keep Russia afloat. Russia's strong man rule would move toward free and fair press and democratic elections. EU would move away from socialistic spending in a continental rebirth of raw capitalism. China would get a boost to their economy, only after the FOREX shock, and will have growing economic free speech that always leads to political free speech that in turn would lead to democratization of mainland China over the out years.
Putin, Hu, EU, and the foreign central banksters had all better be careful here, they all may just get his wish, the demise of the US FRN global dominance, and with it, the demise of strong-man rule, totalitarian control, bankster money economic controls, and socialistic influences in market economies, as they pay back, through their forex collapse, the US for the costs of civilizing the world, while the people of the world, using real and honest money become the new power brokers of the new world order.
Derrick
===========
This message was edited by DerrickMReid on 2-4-09 @ 10:45 PM
|
|
DerrickMReid |
|
02-04-2009 @ 10:46 PM
|
|
|
Member
Posts:
Joined: Aug 2007
|
Le Patron,
Bi-Currency Money,
Three states now have considered returning to real money usage in the US, including IN, NH, and lately CO. These rouge states are trying to protect local economies and currencies from the ravages of the undisciplined money spending at the federal level that uses fiat money, which only has an inherent worth based upon required IRS tax payments in fiat enforced by criminal sanctions, and which has an intrinsic worth of absolute zero. REAL AND HONEST MONEY, gold and silver coinage, may again be used in the UNITED STATES OF AMERICA, and that use is now being driven by state governments seeking protection from the 100+ years of outrageous socialistic monetary excesses of the Federal Government tramping the liberties of us Americans in so doing. Hence, the prospect of a Federal-State Bi-Currency Monetary System is now in play as suggested in the triptych posted at Lemetropolecafe, "US Government is Preparing for the 2010 FRN collapse" 12/25/05, "Global Bi-Currencies Economies and Recessions" 01/09/06, and "Anglos Rule The Bi-Currency World" 01/14/06. Therein lies a proposed vision that the country would first enter a bi-currency regime, concurrent fiat regime and real money regime, before abolishing the use of fiat money altogether. With the current global financial implosion, with panic in global markets, with currency and bullion manipulation accelerating attempting to maintain the global fiat complex and the so-called farcical strong dollar policy, and with the present administration apparent attempt to spend our way to prosperity, its time to look at the practical considerations of these rebel states seceeding from the American Fiat Union.
The Federal Government is moving toward a complete Fiat Money Regime. Since 1972, the fiat dollar has ruled the land of the enslaved free and imprisoned brave, sticking us common citizens with worthless script. Currently, the US has the 1, 5, 10, 20, 50, 100 fiat paper FRNs of absolute zero intrinsic worth being peddled as the fraud it is, at any bank near you. The coinage in the US from 1960s and to this day, has been degraded into fakery as mere tokens of their former real selves. No longer is there the prized silver dollar in wide circulation. The dollar coin in circulation is now made of worthless scrap metal. The half dollar, quarter and dime are merely cladded with something that kind of looks like silver, but is not made of silver, as the fraud it is. The penny is merely copper clad as is the nickel being merely nickel clad as well. Having debased our coinage to the cladded fraudulent fakes, the government wont stop there. The 1ct, 5ct, 10ct, 25ct, 50ct, and 1$ will soon all be made of junk steel, once only used in time of war. The US Government will soon exclusively use a fraudulent fiat monetary system comprising worthless paper notes and junk scrap steel coinage. The steel coinage has already been authorized. With the global financial panic, and with the supposed need to spend trillions in a useless financial stabilization effort, the US money in circulation will enter its final debasement of paper and steel, no longer precious, no longer of any value in any regard, except of course, based upon the required IRS terrorizing tax payments.
Aint that special?
So, what should the states do to resurrect some form of local sound money use? The preferred option, is the reinstatement of American heritage coinage, where the states use existing Federal minting operations where possible. Why invent the wheel? The state government can buy blanks from private suppliers and feed these blanks to the federal government to mint old US coinage again. The state could supply 20$ Double Eagle blanks to the US Mint using these gold blanks to strike new Double Eagle gold coins using the specifications of the old Double Eagle gold coin. Likewise, the states should buy blanks for the old heritage silver coinage. The states could procure blanks meeting old Walking-Liberty dollar, Franklin-Liberty half dollar, Washington Quarter, Winged-Liberty (Mercury) dime, the Indian-Buffalo Nickel, and the Lincoln-Wheat penny. These blanks could be fed to the US mint for striking and return to the states for state use.
The introduction of the gold and silver coinage into the state monetary regime should initially be based upon bifurcated functions, where gold coinage is use for wealth bank retention, and silver coinage is used as the street pocket currency. Currently, the manipulative and fraudulent comex market prices between gold and silver is 73:1, and hence, the interchange between gold and silver coins would be limited by the states in an initial phase. The use of the old coinage would resurrect face value of the Gold-Silver content ratio of 16:1, that is consistent with silver as money and consistent with our national coinage heritage. The bifurcation is between pocket money coinage of silver, nickel, and copper coinage, and bank wealth coinage of gold. The historic monetary Gold Silver Ratio is based upon the 20$ Double Eagle gold coin at 0.9675 gold oz and the 1$ Walking Liberty silver coin at 0.77343 silver oz. Hence, the historical Gold Silver Ratio (20 x 0.77343)= (Au:Ag x 0.9675), where gold:silver is 15.4686 oz of Silver coinage = Au:Ag 0.9675 oz of Gold, where gold:silver ratio is 15.988217 or 16:1 for the official coinage Gold Silver monetary ratio.
A private person could exchange one 20$ gold coin for 20 1$ silver coins, but can not exchange the other way around, as gold is for wealth retention, and silver is for street currency. The precious metals, bank wealth gold and pocket street silver, would have two completely different purposes, until such time that real money is reenacted at the federal level per UN treaties to abolish all fiat moneys, as market forces drive market prices to this historical monetary gold silver ratio of 16:1. This one-way official state exchange of gold to silver, would remain in place, as private person can always exchange at any rate they choose at private coin shops to reflect market prices of bullion. Thus, private persons can privately swap and exchange between gold and silver coinage based upon market value. This bifurcation of bank gold coinage and pocket silver coinage usage would remain in place until market forces drive the gold silver ratio to 16:1 or until the federal government abolishes fiat money and returns to the gold and silver standard. With the state operating on the bifurcated gold and silver standard, the transition back to the gold and silver standard would be more easily perfected.
The federal government is currently minting the American gold and silver Eagles having 1 oz of gold and 1 oz silver, respectively, with a face value ratio of 50:1 relative to face value, whereas the American Double Eagle gold coin and the Walking Liberty silver coin based upon precious metal content is 16:1 relative to face value. So, two sets of gold and silver coins would be in play if the old heritage coins were brought back. The one-way 16:1 exchange rate would officially also be apply to the US American Eagles, with 16:1 public state bank one-way exchange of only 16 silver Eagles for 1 gold Eagle, but not the other way around. At current market prices, there would be no bi-directional official exchange between gold and silver coins because of the market prices, but such exchange can occur at the local coin shops and between private parties at any market ratio.
Hence, there would be a separation between gold and silver coins, old Liberty and new Eagles coins, based upon functional gold Wealth retention and silver Pocket money use. The Double Eagle gold 20$ coin and the Walking-Liberty silver 1$ coin have less than an once, but at a specified amount, so there can be exchanges between gold coins separately for the bank wealth purpose, and exchange between silver coins for the pocket money purpose. As such, both Eagle and Liberty coins can retain their bifurcated functions, gold bank wealth retention as stores of wealth, and silver pocket money use as the street currency, with suitable official one-way exchange rates.
The States would use a real money system with posted exchange rates between federal fiat money of paper and steel, and state real money of gold and silver. The Federal Government would continue to use a fiat money system and promote their socialism under the FED and current administration. The States would use a real and honest money system. The system is based upon market prices and official state bank conversion rate that renders fiat and real money convertible there between. As such, the State and Federal Government would use a bi-currency interim money system enroute to abolishing fiat money use altogether, when that money system finally collapses due to the 100+ years of American socialization through outrageous taxation and ruinous socializing money spending.
As such, the states would order and buy coinage blanks from private suppliers and feed these blanks to the US Mint to produce the coinage then put into commerce at local level. In this way, the states do not engage in minting of special state coins that would inject confusion into the market place, particularly as between interstate commerce and in view of the potential for fraud and coinage counterfeiting.
The authorized the use of existing old American heritage coinage would be most desirable. The dime, for example, would remain the same composition and diameter of the dime as the old standard dime, at 0.705 inch diameter and having a composition of 90 percent silver and 10 percent copper and dimes with this composition were minted until 1966. The dime should be the Mercury dime, Winged Liberty, and is considered to be one of the most visually appealing of all U.S. coins, and is highly sought after by collectors. The States should not honor Roosevelt, as he was the socialist president who confiscated the people's gold. We should always honor LIBERTY, as gold and silver coins put power in the people in possession of actual liberty free from government monetary debasement and resulting enslavement of the people. The Mercury dime was in use between 1916 to 1945 having a finess of 0.9000 at 2.500grams, 0.08038 oz weight, with 0.07234 oz of silver. Real and honest money in the hands of the folks is liberty from government socialistic tyranny as enforced by the FED interest rate controls and the IRS through criminal sanctions enslaving us all.
When the Federal Government eventually abandons fiat money, and it will happen eventually, the states' money, should be accepted across all states and should be readily adopted by the Federal Government and should preferably be consistent with our heritage of money. The state could start up real money use without duplicating prior minting effort and with minimal confusion of the people.
If the Federal Government will not mint old heritage coinage, for the states to use, then the states must strike out on their own. (pun intended) However, the states should do so, minimally, as eventually the UN will by treaty abolish the use of all fiat money for international exchanges, as the inherent fraud its use is, and require exclusive gold and silver usage throughout the world to prevent monetary fraud upon the people and to ensure fair trade practices between all nations. Then, the US Federal Government will also move back toward a gold and silver monetary regime, hence, any unilateral state minting efforts will eventually become moot and should therefore be minimal as to any new special state minting.
Here, alternatively, the state should again rely upon the US mint were possible, and procure blanks for Eagle minting for use for both bifurcated gold bank wealth retention and silver street spending functions, with gold Eagles for wealth retention stored in banks and silver Eagle coins for street currency use. The states would procure gold and silver Eagle blanks for shipment to the US mint for striking of 1oz Eagle coinage offering minimal confusion to the folks.
The individual states should provide: 1) wealth retention in gold Eagles for storage at banks; 2) an official exchange rate between gold and silver Eagles; and 3) street currency coinage in silver. As any state system would be replaced in time, there should be minimal state required minting. A 1oz 1$ silver standard is consistent with current US silver Eagle minting. The states must not interfere with that street exchanges between gold and silver Eagles, as the state bank should only provide wealth retention in gold, and street currency in silver, and at an official exchange rate therebetween, and should not force commerce to have to deal with mixing and matching gold and silver Eagle coinage, until the Federal government and the UN take over resurrecting the historical fixed monetary ratio of 16:1 and produces suitable coins, such as our heritage coinage.
The US mint under the control of the federal government, promoting its fraudulent money, may be uncooperative to the states. The states may need to mint additional coinage that could be only the minting of a dime and penny while procuring US eagles from the US mint. The old west face a similar problem. All they had where 1$ silver coins. And so, for smaller denominations, they literally cut a silver dollar into 8ths, and hence, pieces of eight, each called a bit, and hence, a quarter was two bits, or two 1/8 pie cuts of a silver dollar.
The US Mint has of late minted the 1/2 oz Silver Eagle half, 1/4 oz Silver Eagle quarter, and 1/10 oz Silver Eagle dime. These should be use with the states procuring blanks for US Minting. If the US Mint will not cooperate, again in violation of the US constitution, then the states will have to mint smaller denomination silver coinage. The minimum set would be two state coins, at 1/10 oz and 1/100 oz, but could possibly include a full denominational set, from 1/1, 1/2, 1/4, 1/10, 1/20, and 1/100 oz silver coins, depending on US Mint cooperation in view of its apparent propensity to violate the US constitution requirement that it is required to mint coinage for private use.
If the US mint is uncooperative, the states would need to mint at least two small denomination silver coins, and that might be the BIT (dime), a 0.1 oz silver coin that may be a copper cladded coin, for convenient use with the 1$ silver Eagle, and the PENCE (penny), a 0.01 oz silver coin, that may also be a copper cladded coin. Hence, the 50$ Gold US Eagle, 1$ Silver US Eagle, 0.1$ Silver State Bit, and the 0.01$ State Pence real money coinage can be used having only the Bit and Pence as the new minted coinage. If the US Mint is totally uncooperative, then, the state would mint minimally a 1oz silver dollar, 0.1oz silver bit, and 0.01oz silver pence, and may add as desired 0.5oz silver halves, 0.25oz silver quarters, and 0.05oz silver nickels, and make blanks available so that any state can adopt the same scheme, with standardized state minting. In this manner, the states have a minimal amount of new minting and is consistent with current Eagle minting of the US Mint.
In so doing, the states can protect their local economies from the irresponsible monetary policies of the federal government, encourage a return to sound money in the United States, provide real and honest money to the folks gaining back some of their liberties usurped by the US Federal government, by state minting, during an interim time period for state and national domestic use of bi-currency money.
Derrick
===========
Le Patron,
The Southern Rebellion,
Well known and mild mannered Café member GoldKiwi from New Zealand, down under, with unusual shock-jock style, issued stunning reports that "India increased its premiums on silver yesterday", and "the New Zealand Mint increased its silver premiums too yesterday, from 18% to 30%, a whopping 12 percentage points. Something is up, at least in the Southern Hemisphere anyway." WOW!!!!! The south will rise again.
Yeah baby, its called rebellion to the "vile yankee race" centered at yankee bullion stadium where the NY CRIMEX pits shut out, take down, and cap bullion prices time and time again, with their illegal manipulative naked monstrous short bullion futures positions, paper pushing down the price of bullion in a long standing concerted effort to maintain the illusion and appearance of a strong dollar under the strong dollar policy as criminally enabled by the blind sighted CFTC and inactive US attorney generals.
But that is not the only thing that is up. The dollar index is up again to 87.25 nears it 88+ top on the last dollar surge in a second round of knee-jerk responses the to global financial fiasco, spiraling out of control, acceleratingly so, forming a grandiose mother of all double tops in the dollar index, looking forward to a monster fall, as Obama's stimulus bill ignites hyperinflation in the months to come, and in the predicted death throws of the global fiat complex, which will eventually lead to a global return to the exclusive use of real constitutional gold and silver money as the international medium of exchange. US Bonds and the dollar are up, for now, as a perceived safety raft on a global sea of red ink, but both are headed for a huge fall.
With bullion prices decoupling of late from the dollar, it may matter not what the dollar does, as bullion is on an upward romp of its own, propelled by over whelming investment demand, as the GOLD CARTEL runs out of bullion to maintain the illegal suppression game, and as an in your face repudiation of twenty years of active criminal bullion suppression. But lets be clear, a monster fall of the dollar from 88 to 50 on the dollar index would have a global affect on all fiat moneys, with a resulting upward surge affect upon bullion prices world wide, launching gold and silver prices to the moon if not to mars, and finally finally finally busting the criminals on station in the yankee NY Crimex pits, leading to the MOTHER OF ALL SHORT SQUEEZES of the huge short positions in bullion built up over the many years, which are now under water, looking to pop up bullion prices at any time, maybe 100% or more, and soon. The triggers to that monster short squeeze are all perfectly in place, from every corner of the globe. The people are simply tired of the fiat paper game, that secretly robs them of their little wealth slowly over time, like a regularly visiting thief in the night.
Oh, and guess what? Something else is up as well, as least from a recent low, and that is bullion itself. Yep, despite the machinations of the GOLD CARTEL, gold has made all time highs in foreign currencies of late, such as in pound-gold and euro-gold, and here in the states, gold is approaching all time highs as well, before launching from $1000/oz upwards to $2000/oz this year. Silver is no sleeper and has come back from one of the most obvious and blatant silver manipulative take downs in recent history, as in August 2008, reaching a low 8.60/oz from its high of 21$/oz, for a one month 60% criminal take down of the silver price. But guess who decided not to play ball at yankee stadium? Silver now stands at 13.65$/oz, which is a whapping 60% increase in price since that criminal take down a few months back, with much much more up side to come, and soon. And lets not forget that today prices for a silver Eagle on ebay is closer to 18$/oz than 14$/oz, and private sellers and buyers set the real retail prices of bullion.
Ted Butler, the well known silver hero, is in absolute disgust of course, these days, with the blind-sighted intentionally-unenforcing CFTC, as now it appears that the rebellion is spreading into the ranks of the GOLD CARTEL itself and the SILVER PRICE MANGERS, as the rats bail out of a sinking ship, in that, there now only remains one or possibly two banks that are actively suppressing bullion, with many of the commercial bullion banks breaking ranks, and, if you can believe this, the turn coat commercial bullion banks are now going long of gold and silver, as well as joining all foreign national banks, that use to be net bullion sellers of WAG2. The bullion suppression rebellion is spreading through the yankee lands with deserters fleeing the criminal bullion suppression conspiracy that has held bullion prices in lock down mode for over twenty years to support the illusionary and intrinsically worthless fiat paper dollar and the global fiat complex having the dollar as the world reserve currency.
The southern rebellion to the NY CRIMEX "vile yankee race" did not start in the southern hemisphere, however, nor did it start in the NY CRIMEX pits itself with the deserting bullion banks, it actually started here in the states, first with the people buying bullion, and then with the states, NH, IN, CO, and now MO of late, authoring real money bills to enable states to mint silver coinage to bypass the NY Crimex pits and the conspiratorial DC dollar printers, who have collectively destroyed the country's sound money, over the last 100 years since the FED creation, with the US money now mere toilet paper and junk metal, a shadow of their former bullion based strength and national pride. With all global fiat paper moneys now finally suspect for the inherent frauds they are, and as used by banks to maintain inflation targets and interest rate enslavements of the people, the world peoples have had enough of the criminal suppression of bullion prices perfected at the US NY Crimex division of the FED bank, under the SEC and CFTC noses and congressional enabling supervision.
With foreign mints now divorcing themselves from the fake suppressed bullion prices, official recognition of the bullion price suppression becomes mainstream, finally. THE GOLD CON GAME IS UP! Pressure will be on private mints, dealers, and wholesalers to maintain suitable margins above the mint prices, which are above the suppressed CRIMEX prices. At nearly 14$/oz for silver, 3$/oz mint premium, plus a 3$/oz dealer premium, silver could launch to 20$/oz right here, right now, in an IN YOUR FACE price push that could well bury the naked short sellers (now probably singular) on the NY Crimex, and we all know who that one seller is, and that is, "the FED's bank in drag", as Rob Kirby correctly phrases it. The bullion price suppression rebellion is gaining momentum, as Midas leads his GATA army to destroy the "vile yankee race" at the NY CRIMEX and their bullion price suppressors operating in direct violation of constitutional definitions of money that is suppose to be of silver and gold, that is, real money that all can trust, and who all have trusted for the last 5000 years, and particularly in 1776, as well as in 1861.
The global bullion rebellion to the "vile yankee race" centered at Yankee NY Crimex pits is spreading fast, from desertion of the bullion suppressive cabal commercial banks now bullion buyers, from WAG2 central bank bullion sellers now turn coat buyers, from private buyers and sellers on web auction sites, from US States with real money statutory bills, to the purchasing public buying bullion is record amounts tightening bullion supplies to choking levels, and now to official foreign Mints and Governments raising premiums above the farcical NY Crimex prices.
I love the smell of napalm in the mornings, it smells of VICTORY against an evil, an obscene evil that robs us all. Its time to break out and wave the Bonnie Blue flags for independence, for real honest constitutional money, for free and fair bullion prices, and for victory over the vile GOLD CARTEL and unscrupulous manipulative SILVER PRICE MANAGERS on station at the yankee NY CRIMEX pits, as the global people surge together in collective revolt in disgust to the criminal bullion manipulation that will no longer be tolerated in the southern rebellion.
Derrick Michael Reid
Laguna Beach CA USA
=======
This message was edited by DerrickMReid on 2-25-09 @ 12:53 PM
|
|
DerrickMReid |
|
02-25-2009 @ 12:54 PM
|
|
|
Member
Posts:
Joined: Aug 2007
|
LePatron
Americans Perpetually Enslaved,
Freedom is inherently based upon the high five, to wit, God, Gold, Guns, Land and Vote, respectively, to believe as we choose, to have our money free from the degrading printing presses of the DC elitists, to defend ourselves from criminals and government oppression, to live as we choose, and to control the necessary local, state and federal governments from enslaving our lives. But as we enter the 21st century, we Americans can hardly be considered free. There is no doubt about it, we are enslaved, voluntarily so.
The enslavement of America started in earnest in 1913, with President Wilson's creation of the FED bank, with their controlling interest rates, and fiat money of intrinsic worthlessness being printable at any quantity as desired, and with the adoption of the 16th Amendment creating income taxes giving rise to an army of necessary IRS thugs to enforce collections of the people's hard earned money through threats of imprisonment during the annual April shake down of the citizenry, providing fiat money an artificial inherent worth as taxes must be paid in federal reserve notes, that is, fiat dollars, having absolutely no intrinsic worth.
The enslavement of Americans then proceeded to FDR's with his socialistic raw deal and the confiscation of the Americans' gold coins, which enslavement then proceeding to LBJ's socialistic corrupt society, and then finally to the strong dollar policy, which collectively has resulted in centralized money control emanating out of DC with the necessary collateral suppression of bullion prices, so that, the people would not look to any other monetary unit, such as real honest money, that is free from the ravages of the DC fiat printing presses, so that, the people would be forced to depend exclusively upon the fiat dollar and the fiat controlling regime of DC.
The enslavement propaganda out of Washington DC has worked exceptionally well over the last century, since 1913, and continues to this day, with VP's Biden "patriotic taxes", and the obscene deficits running amuck in DC created by both the liberals and the compassionate so-called conservative elitists embedded in DC corruption and power politics, that has, over the last 100 years, conditioned us Americans to accept FED controlling interest rates, ruinous counter-productive taxes, unwarranted gun controls, land use restrictions innumerable, secular progressive demeaning of god's churches and temples compassionately giving to those in need, and finally to the pandering of votes through unattainable campaign promises, both left and right, for perpetual cementing of socialistic controls by the elected DC elitists and their appointed agency henchmen.
Even as President Obama gave an ostensibly up-lifting speech before both houses of congress, with no less that 65 raucous ovations, from both the left and right, in response to yet more promises of utopia, under DC control, some whispers are heard by some reading between the lines, for those who can hear the spin and lies, of more government control over and central socialistic planing of our lives, as the government runs up well over a 10T$ national debt with additional spending of yet another 10T$ in bank bailouts under socialistic control, to enrich the banksters, throwing efficient capital Darwinism to the dust bin of forsaken founding capitalistic principles of this great country. You just know that we Americans as a people are absolutely screwed when both parties wildly applaud more social programs, spending, and controls from DC. The current financial enslavement of us Americans stems from the combinatory effects of an obscene tax regime, an intrinsically worthless fiat money, and the suppression of the alternative bullion prices through the use of manipulative naked short futures contracts on the NY CRIMEX exchanges, held by agents and conspiratorial monetary thugs of the government, including and certainly not limited to JPM with their monstrously criminal derivative short positions.
Astoundingly, we Americans don’t complain. There is no just outrage by the people. There is hardly a peep from the people, as the government bailouts the banks, and their greedy bosses with their performance bonuses based apparently upon bankrupting all of the banks. The bank failures are well deserved as the banks did serve to do the government's bidding in controlling the monetary markets and our lives, as the banksters perfect their greed perpetrated upon the American economy through the use of 1000T$ worth of over the counter derivatives. We are not brave nor free. We Americans have been conditioned to live in economic slavery, to salute the DC elitists at the drop of another fake promise and offered program, that only serves to perpetually enslave our lives. Even Mr. Bill OReilly of Foxnews, thinks a 30% tax is just fine, where actually, anything over a 6% rate, a reasonable patent royalty, should be considered inherently destructive and evil. Well, even a pig when fed his daily slop, Mr. OReilly, will live happily in a pig sty, with freedom abandoned. People are no different, and neither is Mr. OReilly. We have been conditioned to accept the elitists' dictates from DC, their controls over our lives, and the April singing sirens.
But we Americans have been here before. We took action once against London's fiat money and their controlling taxes, starting with a small Indian raid in Boston, as we Americans then threw off the yoke of VP Biden's "patriotic taxes" and the obscene dictatorial control over our lives from absolute power concentrated in the English crown. And, we Americans can do it again, provided that we first can understand what has been done to us, our country, our collective minds, and our freedoms, and we can again show the outrage necessary, and act, if we have not been so propagandized into accepting the elitists' dictates and socialistic DC controls over our lives. We Americans now accept without any protest, a 30 year mortgage based upon enslaving interest rates dictated by the FED's monetary controls and the use targeted inflation rates and the interest rates made necessary through the use of fiat money. We accept enslavement for 30 years of our adult productive lives, without a peep. This is simply amazing, in the land of the so-called free and so-called brave. We are no longer free and we are no longer brave. We have become enslaved cowards.
We have all become cowards because we do not stand up to tyranny over our lives. We just continue to simply walk dispassionately like monotones toward the warlock caverns upon the blaring sirens signaling the annual April sacrificial tax shake down to tyrannical concentrated power in DC. We simply accept unlimited printing of fiat money. We simply accept an obscene tax regime. We simply accept controlling interest rates. We simply accept the degradation of godly symbols in our lives. We have been conditioned, through patriotic tax speeches, to empower the big brother Nanny state, to wipe our butts and feed our faces as only the DC elitists think best. We are now imprisoned. We even will not publicly recognize bullion manipulation in the commodities markets, which manipulation is blatant, but which manipulation supports the intrinsically worthless fiat money that enables our enslavement by big brother in the first instance.
Mr. Bill Murphy of GATA can scream bloody murder all he wants about gold bullion manipulation, and Mr. Ted Butler of IRI can rant and rave all he wants about silver bullion manipulation, but as long as we Americans remain cowards to the DC elitists controlling our lives, the CFTC, and the conspiratorial congressional oversight enablers, we will simply ignore the blatant criminal manipulation on the NY CRIMEX exchanges, and accept our enslavement. Give it up, Bill and Ted, it’s a losing battle, because, unless you integrate your outrage into an aggregate demonstration of lost freedoms, and convince the people at large to over throw the power complex in DC, the government will continue to protect the power projecting fiat money system in perpetuity thereby enabling and encouraging the suppression of bullion and real honest money, the only real alternative to their worthless fiat. Your only hope to free bullion from criminal government led manipulation, actually enabled by the CFTC and congress, is to rally all Americans to throw off the tyrannical yoke that is the Washington DC elitists.
But how can we now possibly collectively even rebel? The people are now weak minded, conditioned by a century of DC propaganda and pandering to not aggressively act against any tyranny. So, armed rebellion against the enslaving DC elitists is modernly not a viable option. The only other effective means to take down the monarchs of DC, and free bullion and concurrently ourselves, is through the vote. But, we freedom lovers would not be on a level playing field, as American politics is now centered in only two viable political parties, the liberal democrats who always seek more taxes, more spending, and thus more control over our lives, and the "compassionate" republicans, who have of late all ready thrown in the towel to concentrated socialism in DC, and hence, we have abandoned Darwinian capitalism to scrap heap of lost individual freedoms and personal responsibility, and hence, making ourselves and both parties conspirators to the enslavement and control of all of the people. So how possibly can the system be changed, and free bullion, and free ourselves, when our American minds have been propagandized into accepting financial slavery and centralized control, living in a national pig sty, when the only voting option available is between two inherent look a-likes promoting more, not less, DC controls over our lives? We simply cant. We are hopelessly imprisoned by our own conditioned pandered minds by socialistic elitists of the two controlling political parties. We are freaking doomed to perpetual enslavement by big brother and the nanny state, as we get up each April 15th and march off to singing sirens toward the warlock caverns to be devoured into economical ruin, presently, however, accelerating on a global scale.
There possibly could be one hope, for a return of our freedoms, and liberation of bullion from manipulation, but it’s a very long shot, a 300 million to one long shot, actually, to be nearly exact, and that possibility would the coming of a second economical political messiah, a populous, running for the presidency, outside of the two main political parties, with an articulated agenda, and with a plan to perfect reinstatement of our freedoms from the DC elitists. But, as of yet, there is no such person who has come forward with the agenda, with the plan, and with the ability to passionately and convincingly persuade the people that they have in fact firstly lost their freedoms, and secondly, that such freedoms can be reinstated. Dr. Ron Paul came close, but he remained locked into the corruption of the two political parties, and did not explain why our freedoms have been lost, nor did he offer a credible comprehensive plan to free us all. While well intentioned in some points, he did not put it all together, in a comprehensive way. Maybe a great populous champion will emerge before 2012 and offer what we American so dearly need and deserve, our freedoms back.
Any populous running for president, to take down the DC elitist power structure, to free us Americans, must have a plan as to national money, deficits, debt, taxes, and welfare. This populous candidate would need to have a comprehensive vision, both retrospectively and prospectively, and must be able articulately explain why we are enslaved, and why the tyrannical power structure in DC has enslaved us all through fiat money, the FED, the IRS, income taxes, and bullion suppression, as a collective regime and power play, so as to educate the people, and reverse 100 years of pandering DC propaganda, which, of course, would be no small task, as many Americans are in fear, and will naturally cling to their government hands outs in cowardly dependency. Breaking a propagandized dependency and the cowardly mind set of the American people through mere words would be one difficult task.
This populous messiah would need a plan. The plan would necessarily include abolishment of the FED, fiat money, the IRS, income taxes, and bullion suppression. The plan would include the reinstatement the gold and silver money standard. The plan would seek the repeal the 16th amendment authorizing income taxes and the adoption of a new amendment requiring local, state, and federal balanced budgets. This plan would necessarily destroy socialism in American, and would severely limit the welfare states, a good thing, such as to only public shelters, clinics, and kitchens, while supporting, in turn, compassionate free charitable personal giving through charities, churches, and temples, thereby exploiting individual personal compassion that is the most effective and efficient means of securing a minimal safety net for the poor and aged. This populous should propose eliminating the national debt, virtually over night, by requiring all Fiat FRN dollars be redeemed at the treasury at a rate of about 1B$/oz. Fiat redemption in bullion would force many, if not all, other countries to likewise abandon fiat money in a global rebirth of the exclusive international use of gold and silver money as the only real honest medium of exchange between countries, business, and persons, as the global community replaces war and fiat with trade wars and real honest money, and while outlawing global protectionism and, of course, the internationally sought after elimination of the US dollar as the global reserve currency.
The tax system should be changed comprehensively. There should be absolutely no taxes on earned income, payrolls, or capital gains, which are the engines of growth, that must necessarily and fully exploit human greed for maximum productivity and prosperity leading to increased personal tax free charity. There should be a flat tax on all consumption in a resource limited world thereby punishing gluttony and conserving the world limited resources. There should be market value real property taxes to pay for police, fire, schools and trash. Finally, there should be extremely progressive taxes on passive incomes including inheritances, interest, dividends and personal gifts, so that all have an equal opportunity. This tax regime would collectively together encourage economical growth, resource conservation, dissipation of obscenely corrupting concentrated wealth in a few, and the dismantling of socialism and the welfare state to free the people of dependent slavery by the government.
It is doubtful that such a populous would rise up, however, and come freedom's way any time soon. There is, possibly, one small hope. If the global economic community continues to spiral out of the control toward the downside into a global depression, and it is accelerating just now to the downside, and the global fiat complex concomitantly collapses as well relative to commodities and bullion, rendering all fiat money suspect in the eyes of the common people, and if the unemployment rate rises to depression levels, the citizens may just get a little upset, and even demonstrate, and possibly politically revolt around the world as well as in the US from all of the monetary enslavement. We Americans actually might just rethink a century of pandering propaganda, and actually listen to a populous candidate for president of the USA and leader of the free world.
It is a dreadful choice, however, to wish for monetary, economic, and financial global ruination, but with it is also the ruination of the enslaving fiat money, bullion manipulation, and government enforced corrupting socialism and control over our lives. It would be worth it, though. We Americans, if truly brave, should bite the short term economic bullet rather than perpetuate tyrannical slavery from DC over our lives. We may just become again the land of the free and brave. But, until such global financial ruination is achieved, and until some populous take the soap box station in earnest, with the plan for the return of our freedoms, the American economic political system will not change, and the status quo will remain in effect, as until such a populous messiah comes forth to liberate us all from DC tyranny, nothing will change, with all Americans perpetually enslaved.
Derrick
===
Le Patron,
Oink Oink Oink,
In Mr. James Cook's latest, from Investment Rarities he says: "That’s why taxes aren’t used as an incentive for resolving our economic problems. It’s too bad. Here’s what could be done. Any investor or homeowner who buys a house in the next two years wouldn’t have to pay any taxes on the gain. Any person or corporation investing in oil and gas drilling this year and next would pay no taxes on the resulting revenue for five years. Presto-chango!"
I have a big problem with Mr. Cooks' type of solutions. Not that they are politically Republican based, but that they are used to control our behavior. What gives the government any right whatsoever to control our lives, in any manner, excepting of course, punishing crimes? The ying and yang of DC are all actually on the same control-freak team. Make no mistake about that.
The Democrats, however, are far superior in creating the tools necessary to enslave Americans with their liberal progressivism, but both parties are indistinguishable, in reality, using FED interest rates and bailouts and incentives, FIAT MONEY, the IRS, and INCOME TAXES, that is, "the system" to control and enslaves our lives.
Our enslavement started, of course, with president Wilson's FED creation, the companion income taxes, and the companion IRS, to enforce that enslavement, where fiat targeted inflation rates steal wealth from the people, as well as legally tax more to destroy independent businesses that do not follow federal policies. If you don’t play the way government wants you to play, then you will be penalized for it. That is not freedom from a limited government, but enslavement to the BIG BROTHER NANNY STATE. FRD's raw deal and LBJ's corrupt society increased government roles in every aspect of our lives, as our freedoms are taken from us with each federal program and mandate, mostly initiated by the Democrats. But the Republicans also buy heavily into that enslavement as well, with targeted "tax incentives", ala Mr. Cook.
Thus, the Democrats have mostly created the means to control the people, while the Republicans play along, with a masked face of opposition, but then proceed to also exploit the evil doings of the Democrats, pretending they, the Republicans, are conservative, as both parties just keep on controlling us with their programs, mandates, and "incentives" to control and enslave the people by federal government. It matters not who created the leg irons, or who straps them on, we are enslaved by both of the political parties.
We had a constitution, now abandoned, indicating gold and silver real money, that limited government's ability to economically control our lives and our purse strings. We had a constitution where state rights were respected, yet now that states are more or less indistinguishable in large measure, all forced to walk in lock step with the mandates of the DC elitists. We had a constitution, now abandoned, indicating limited government. Even Mr. Cook, a real money believer, buys into tax regime control over our lives, rather than free market forces and personal liberty, though, given the political realities of the propagandized population and the FED-fiat-IRS regime in place, giving up upon principles, for immediate practical short term solutions, is widely accepted as a useful government means, that is, a "useful" control over our lives.
I hereby declare, that Tocqueville's 1835 prediction, has become reality, after 180 of progressive liberalism in the USA. Tocqueville was right, we Americans, with BHO now at the helm, have now entered the "totalitarian democracy" phase of the political and economical corruption of our constitution, our government, and our lives, through the government spending of trillions on social engineering and programs innumerable, with capitalism abandoned, and moral responsibility dead, as we as a weak-minded people, dependent on the state more and more, have voluntarily voted for the Big Brother Nanny State, whereby, after 100 years of progressive liberalism and pandering politicians, left and right, the people now readily accept their enslavement to government mandates and "incentives".
In response to Mr. Cook's incentive, I would like to remind him, that even a pig, when fed, will happily live in a pig sty, with an incentive and with freedom abandoned.
Oink Oink Oink
Derrick
==============
Le Patron,
Unbelievable,
So, BoA comes out with a B$ in STELLAR PROFITS, yet many banks are off 17% this day, so far, including BoA. How possibly can that be? The people are just not buying the mark-to-gimickry accounting. Confidence in the Banks is Dead!!! Why? "There are no more markets, just interventions", Chris Powell, GATA. The market manipulation every where is just unbelievable.
Derrick
=========
This message was edited by DerrickMReid on 4-20-09 @ 11:56 AM
|
|
