Saturday, September 18, 2010

Gold reports in the Wall St Journal

Alan Greenspan on Gold

Alan Greenspan is his pre-Fed fiat days:

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

“This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”

What Socialism and Fascism have Brought to America

By Bob Chapman: On Friday, September 10, 2010, Horizon Bank, Bradenton, FL was closed by the Florida Office of Financial Regulation and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

In site of intervention by "the Working Group on financial Markets", gold has increased almost 16% year-to-date. It has done so for each of the past ten years, which has gone almost unnoticed by professionals and investors. Obviously some are watching or the price wouldn't be where it is. Commodities have been up for 11 years and nine years for Treasuries. As you know we are trend followers, so gold and silver have been kind for our readers since June of 2000. That is after we bailed our subscribers out of the stock market in the second week of April of 2000. We were at a conference and Joe Granville made the same call on that sunny Saturday, so long on

Weekend Chill out

This week in the weekend chill out we bring you probably the greatest ever song dedicated to the follies of fiat money creation and excess credit.

You may find yourself living in a shotgun shack
You may find yourself in another part of the world.
You may find yourself behind the wheel of a large automobile.
You may find yourself in a beautiful house, with a beautiful wife.
You may ask yourself: well... how did I get here?
You may ask yourself Where is that large automobile?
You may tell yourself This is not my beautiful house!
You may tell yourself This is not my beautiful wife!
You may ask yourself What is that beautiful house?
You may ask yourself Where does that highway lead to?
You may ask yourself Am I right?... Am I wrong?
You may say to yourself My God!... what have I done?
Once in a lifetime...

Gold is the canary in the financial coal mine

By Jim Willie:

Alan Greenspan had full knowledge of his betrayal to the principles of sound money. He wrote early in his career about the only legitimate basis for a monetary system, namely Gold. His published works from four decades ago read like an indictment against his career for monetary crimes against the nation. His accommodation, giving the financial sector what they wanted, betrayed his mindset. He knew the nation courted disaster with a long delayed fuse. His quote is being circulated frequently and broadly lately, "Gold is the canary in the financial coal mine." Exactly, and his own words. Greenspan proved to be a great handler of the politicians, offering them obfuscation of the most erudite variety. They were so confused by his drivel to be immensely impressed. The Jackass was not impressed, not after the 2000 events unfolded to reveal the US as a patented asset bubble blower. Not after the same events revealed Greenspan to be an inflation engineer specializing in serial asset bubbles blown that put the nation at great peril. My attitude years ago was to listen to his topics of debate, to ignore the words, and to anticipate a crisis event in the sector he mentioned. It worked consistently. What Greenspan brought to the nation was a nearly complete interruption to the process of capital formation by virtue of the asset bubbles he engineered. His policies undermined capital and led to its destruction. He puffed up the finance sector at the expense of the tangible economy. Industry was forfeited in the pathogenesis of managed inflation.

The war machine has matured over the course of recent decades, saturating the nation with debt, broadening its base of theaters. The combination of domestic asset bubble development and war machine development conspired to cause erosion of US industry. Wages grew significantly after the 1973 OPEC oil price shock, which occurred simultaneously with outsized USGovt deficits largely attributed to the Vietnam War. Consequently, the US labor became overpriced, vulnerable to the globalization movement. The advent of China sealed the US fate vis-a-vis industry. The US as a nation was led to depend upon a sequence of asset bubbles. They all busted. Half the national debt of $12 trillion is attributed to war spending, a fact avoided by many analysts. Expansion of war to secure supplies for the nation might be better explained as the global stretch of the military complex in order to secure supplies for its own machine. Its objectives have come to conform more seamlessly to the Syndicate. In time, the USMilitary complex, including the defense contractors, the military service contractors, a key security interests will splinter off into a private corporation with several business segments. At the same time, the United States will slide into the Third on