Friday, October 29, 2010

Weekend Chill Out

With all my China themed posts this week I thought it only fitting to continue the theme into the Weekend Chill Out with David Bowie's "Little China Girl". Also notice the music video was filmed in Sydney, on the harbour, Chinatown and the Northern Beaches.

I stumble into town just like a sacred cow
Visions of swastikas in my head
Plans for everyone
It's in the white of my eyes

My little China Girl
You shouldn't mess with me
I'll ruin everything you are
I'll give you US Treasury Bills
I'll give you eyes of blue
I'll give you the means to rule the world

And when I get excited
My little China Girl says
Oh baby just you shut your mouth

PS: When I worked in Hong Kong in the nineties I used to hang out with editor of the China edition of a famous French fashion magazine, she wore blue contact lenses and spoke flawless French, must have been a Bowie fan ~ très étrange, très sexy

Rising Gold & Silver Prices Signal the End of the US$

Trailer for "End of Liberty" doco

Silver Manipulation Lawsuit Filing

I have been sent a copy of the Silver Manipulation Lawsuit Filing against JPMorgan Chase. It can viewed or downloaded here

The Keiser Report - The Countdown to TARP2

The Flight from Currencies

China Prepares for a Post US$ World

Interesting comment from the NIA about the reduction in Chinese Silver exports and China encouraging it's citizens to SAVE in Gold & Silver, instead of SPENDING like the West. Of course this is a theme I have mentioned in this blog before and in articles written for mining journals.

Not only is China the 2nd largest miner of Silver in the world they are most likely the world largest smelter of Silver containing ores in the world, refining much of the world's lead, zinc and copper containing ores which approx. 80% of the world's mined Silver is produced from (as a by-product of smelting these base metal ores). As I reported in greater detail on my companion blog in February this year.

So not only is China reducing the exports of its own Silver, it is reducing the re-exportation of the world's Silver!

If any readers have come across other commentators or bloggers discussing the reduction in the re-exportation of smelted/refined ores, especially Silver from China please leave me a link in the comments section of this post or email me at:

The Return To Good Money

Jeff Nielson
October 26, 2010
Once again I'm indebted to a reader for passing along a superlative concept and essay on a practical means of returning to "good money" (i.e. some sort of precious metals-based currency). While most precious metals commentators (including myself) strongly advocate the return to some sort of "GOLD STNDARD", devising a plausible process for moving away from the worthless paper we carry in our wallets today has proven problematic.

If we follow the path of "converting" fiat paper-currencies back to precious metals-backed money, we immediately see only two options. Either we get all of the world's major currencies to simultaneously convert their paper-currencies (an extremely unlikely event), or we must do this in some step-by-step process - which must begin with the world's "reserve currency" (currently the U.S. dollar).

In my own attempt to reconcile this enormous logistical issue, I previously proposed a two-stage process: first switching from the U.S. dollar to China's renminbi as the new reserve-currency, and then backing the renminbi with gold. My reasoning was that if the two changes were instituted (more or less) simultaneously that there would be an horrific plunge in the U.S. dollar - as a world full of U.S. dollar-holders all sought to rid themselves of their inferior paper in favor of gold-backed renminbi at the same on

Robert Kiyosaki & Louis Navellier interviewed

Goldseek Radio interviews Robert Kiyosaki (author of Rich Dad Poor Dad) & Louis Navellier.......listen here

Default or Hyperinflation: The US’s Only Two Options

By: Richard Daughty, The Mogambo Guru - The Daily Reckoning

I thought I had seen and heard it all after the ludicrous Ben Bernanke, asinine chairman of the Federal Reserve, announced that the official (and thus a lie!) 2% inflation in prices was too, too low, and he wanted higher inflation because, somehow, in some weird little fantasy world that only he and other neo-Keynesian econometric cyber-nerds can see, higher inflation is “consistent with the mandate of the Fed” to achieve stable prices (zero inflation)! Hahahaha!

This is so bizarre that I had a hard time dealing with it, as I have enough problems of my own in distinguishing reality from my own weird little mental world without this dimwit forcing his schizophrenia on me.

So I cleverly doubled up on some of my medications, which didn’t help much, although I finally did relax enough to unclench one fist.

Of course, the other mandate of the Fed came in the ’70s when Hubert Humphrey and other leftist weirdo morons changed the Fed’s charter to include a mission to, somehow, with magic perhaps but certainly with creating more and more money and driving interest rates down and down, always maximize employment. Maximize employment! How convenient an excuse for the Fed to create more money!

And speaking of maximizing, I thought I had, with this one statement by the chairman of the Federal Reserve to purposely create the horror of higher inflation, maximally achieved a state of complete loathing for the Federal Reserve.

With my newfound Maximum Mogambo Contempt (MMC) for Ben Bernanke and the Federal Reserve, you can imagine that I was not very surprised to see an essay with the title “Three Horrifying Facts About the US Debt Situation” by Graham Summers of

Initially, I was “ho-hum” mostly because I can, offhand, think of about a thousand horrifying facts about the US debt situation, and that is all without even touching upon the inflationary horror of the federal government deficit-spending untold trillions of dollars per year, year after year, increasing the national debt by borrowing an avalanche of money that the foul Federal Reserve magically creates out of thin air, and that the Federal Reserve will itself use, in an outrageous episode of historically treacherous monetary infamy known as “monetizing the debt,” to buy the trillions and trillions of T-bonds, a terrifying example of fiscal and monetary insanity that will, to wax poetic, reverberate through the ages.

You can tell by the way I ended that paragraph with a mere period instead of an exclamation point to denote horror and terror that I was pretty bored.

Well, I was, until he went on that, firstly, “The US Fed is now the second largest owner of US Treasuries” after just recently overtaking the stash of US bonds owned by Japan, “leaving China as the only country with greater ownership of US Debt.”

To his credit, he went on that the horror is that “we’re printing money to buy it. Setting aside the fact that this is abject lunacy, this policy is trashing our currency which has fallen 13% since June…as in four months ago. Want an explanation for why stocks, commodities, and gold are exploding higher?”

I raised my hand to make a comment about how, “We’re Freaking Doomed!” but before I could interrupt, he went on that, secondly, “There are only about $550 billion of Treasuries outstanding with a remaining maturity of greater than 10 years.”

Out of all this, he deduces the third point, which is that “The US will Default on its Debt.”

Apparently, he had a second thought about that “will default” thing, as he says, correctly, “either that or experience hyperinflation. There is simply no other option.”

I am happy to see that Mr. Summers still maintains some of that sunny optimism of youth, a quality that I completely lost years ago when the realization of the immense degree of stupidity and corruption in the world crushed my hopes, when he says that there are no other options except default or hyperinflation.

I say, ominously, which explains the scary and ominous soundtrack, that the other option is (pause for effect) “both.”

And speaking of “both” if ever there was a time when you should buy both gold and silver, this is it! And the fact that you can get them by merely plunking down depreciating Federal Reserve Notes in payment should make you giddy with delight, so that you giggle as you say, “Whee! This investing stuff is easy!”