Saturday, March 31, 2012

On the edge with Max Keiser and Ed Harrison

on Mar 31, 2012

In this edition of the show Max interviews Ed Harrison from

Piece Of My Mind

By Jim Grant

My friends and neighbors, I thank you for this opportunity. You know, we are friends and neighbors. Grant’s makes its offices on Wall Street, overlooking Broadway, a 10-minute stroll from your imposing headquarters. For a spectacular vantage point on the next ticker-tape parade up Broadway, please drop by. We’ll have the windows washed.

You say you would like to hear my complaints, and, on the one hand, I do have a few, while on the other, I can’t help but feel slightly hypocritical in dressing you down. What passes for sound doctrine in 21st-century central banking—so-called financial repression, interest-rate manipulation, stock-price levitation and money printing under the frosted-glass term “quantitative easing”—presents us at Grant’s with a nearly endless supply of good copy. Our symbiotic relationship with the Fed resembles that of Fox News with the Obama administration, or—in an earlier era—that of the Chicago Tribune with the Purple Gang. Grant’s needs the Fed even if the Fed doesn’t need Grant’s.

In the not quite 100 years since the founding of your institution, America has exchanged central banking for a kind of central planning and the gold standard for what I will call the Ph.D. standard. I regret the changes and will propose reforms, or, I suppose, re-reforms, as my program is very much in accord with that of the founders of this institution. Have you ever read the Federal Reserve Act? The authorizing legislation projected a body “to provide for the establishment of the Federal Reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper and to establish a more effective supervision of banking in the United States, and for other purposes.” By now can we identify the operative phrase? Of course: “for other purposes.”

You are lucky, if I may say so, that I’m the one who’s standing here and not the ghost of Sen. Carter Glass. One hesitates to speak for the dead, but I am reasonably sure that the Virginia Democrat, who regarded himself as the father of the Fed, would skewer you. He had an abhorrence of paper money and government debt. He didn’t like Wall Street, either, and I’m going to guess that he wouldn’t much care for the Fed raising up stock prices under the theory of the “portfolio balance channel.”

It enflamed him that during congressional debate over the Federal Reserve Act, Elihu Root, Republican senator from New York, impugned the anticipated Federal Reserve notes as “fiat” currency. Fiat, indeed! Glass snorted. The nation was on the gold standard. It would remain on the gold standard, Glass had no reason to doubt. The projected notes of the Federal Reserve would—of course—be convertible into gold on demand at the fixed statutory rate of $20.67 per ounce. But more stood behind the notes than gold. They would be collateralized, as well, by sound commercial assets, by the issuing member bank and—a point to which I will return— by the so-called double liability of the issuing bank’s stockholders.

Alex Jones and Max Keiser discuss MF Global and BS Bernanke

on Mar 30, 2012

Alex Jones on the upcoming Ridley Scott movie Prometheus

on Mar 30, 2012

Nigel Farage on kicking the can

Nigel Farage discusses EU can kicking and the Gold market with Eric King of King World News. Listen here

George Galloway wins Bradford West byelection

From The Guardian

Original source

George Galloway, the leading figure in Respect, has grabbed a remarkable victory in the Bradford West by-election, claiming that "By the grace of God, we have won the most sensational victory in British political history".

It appeared that the seat's Muslim community had decamped from Labour en masse to Galloway's call for an immediate British troop withdrawal from Afghanistan and a fightback against the job crisis.

On a turnout of 50.78%, Labour's shell shocked candidate Imran Hussain was crushed by a 36.59% swing from Labour to Respect that saw Galloway take the seat with a majority of 10,140.

Labour had held the seat in 2010 with a majority of 5,763. It marks an extraordinary personal and political comeback for the controversial politician who lost in the UK general election in 2010, and in the Scottish parliament in 2011, appearing to confirm that the remainder of his career would lie in broadcasting and celebrity programmes.

It is also a bitter blow to Ed Miliband, who failed to capitalise on the suddenly plummeting support for the coalition, and did not see the threat posed by Galloway until too late. Read more

George's most recent appearance on this blog.

Have precious metals peaked?

on Mar 30, 2012

NDAA - The death of individual liberties

on Mar 30, 2012

A group of journalists and activists made a statement at a court in New York against the National Defense Authorization Act. The group has filed a lawsuit against the Obama Administration and are determined to overturn NDAA. The bill allows the US military to legally detain suspected terrorists indefinitely and without charge or trial - that includes American citizens. This also means that journalists covering terror threats and interviewing terrorists fall under the umbrella. Raha Wala, an attorney with the law and security programm at Human Rights First talks to RT's Kristine Frazao about some legal implications of the bill.

'Want gas? Stop wars! UK fuel panic orchestrated by NWO'

on Mar 29, 2012

There is panic at the petrol pumps in Britain, ahead of a possible tanker driver strike. Some stations have already run dry after a government minister suggested people should fill their tanks and stock up with fuel cans. RT discusses the topic with political analyst Peter Eyre who's in Birmingham in the UK.

Silver Manipulation Acknowledged - Christian Garcia

on Mar 30, 2012

Friday, March 30, 2012

BRICS: Dollar No Longer Reserve Currency?

on Mar 29, 2012

Priceless - Julian Assange likes my recent post

This is becoming surreal, my hero and fellow Aussie Julian Assange has posted a link to the Silver Doctors version of my Tungsten filled Gold bar story from late last week. I spoke to The Doc from Silver Doctors today and he advised they have had over 130,000 views of their version of the post (most from Julian's posting).

Julian Assange's post in reddit

Wikileaks is priceless

Weekend Chillout - We Will Together

Well that was an "interesting" week, those who know me know the reason. Anyway nothing a few glasses of Hunter Red and some mindless Australian 80's pop music wont fix.

The Sheeple are waking up

Thanks to Mike Krieger for this priceless pic.

Capital Account on MF Global and Goldman Sachs

A brilliant Capital Account episode focusing on the MF Global disaster and the coincidental links to Goldman Sachs former staff members.

Quote of the Week II

"Each problem has hidden in it an opportunity so powerful that it literally dwarfs the problem. The greatest success stories were created by people who recognized a problem a turned it into an opportunity." ~ Joseph Sugarman

The Amber Room hunt

Vladimir Putin in KGB his unifom
Perhaps someone should ask Putin...."From 1985 to 1990, the KGB stationed Putin in DresdenEast Germany.[32] (wikipedia)


Source link

A German historian has made some remarkable discoveries about the missing "Amber Room” – an art collection dubbed the eighth wonder of the world.

Studying declassified intelligence files, Mario Morgner found out that East Germany was devoting huge amount of time, energy and money trying to locate St. Petersburg's missing "Amber Room."

The Amber Room, once located outside St. Petersburg, was designed by German Baroque sculptor Andreas Schlueter in 17th century as a present for Russian tsar Peter the Great from King Friedrich Wilhelm I. The room was lavishly decorated with amber panels, golden ornaments, mosaics, and gems.

During World War II, it was dismantled and shipped by German troops to Koenigsberg, now Kaliningrad. The room was put on display in the royal palace, but soon it was damaged by a fire and subsequently disappeared. Read more

Thursday, March 29, 2012

Jim Willie - The Gold Groundhog Grind

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From Jim Willie,

A very important objective change has taken place in the gold market. Its price is not moving above the resistance established in the 1600 to 1900 wide berth range. Its price is not moving below support in the same wide permitted range. When the gold price has approached the 1800 level recently, all manner of naked soldiers emerge with imaginery swords to whack the price down, to bring it under heel. The ruse has a high cost in the real world though, as the gold cartel has been forced to shed an enormous supply of gold as punishment for each naked short episode. The opponents to fraudulent controlled manipulated markets have emerged in force to respond. They fight from the East. They fight for a fair and equitable market. They are poking holes in the floor of the syndicate helm where legs fall through. Demand for the gold core has become acute with pitched battles. The financial presss reports none of it. In desperation, the cartel has conducted regular and routine raids of the Exchange Traded Funds, using shorted shares as the ticket at the rear dock window to cart off gold bars. What a corrupted bill of lading. Meanwhile, the major gold suppliers from mine output appear to be on the defensive or actually on the ropes. The deficit in silver only punctuates the precious metals shortage, as investment demand ramps up. The dutiful lapdog press prefers to tell the story of reduced jewelry demand, without noting how it emphatically signals the powerful bull market. The stories rely on the public being poor students of history. Still, the underlying forces behind the Gold & Silver bull markets remain a team of horses, the 0% cost of money and the debasement of currency in sovereign bond redemptions. The system is broken. Long live the new system that comes, based upon gold and barter, as the USDollar loses its vital ticket in global trade settlement.


The battle has expanded. It is no longer solely on price. It has focus on draining the crooked camps of their physical gold. The latest wrinkle is the revelation that the derivative sector is as corrupt as the bond core, as banks are liable for hundreds of $trillions they cannot pay following years of hefty ripe fees taken in. The constant backdrop since 2008 is that the big Western banks are almost all hollow bankrupt insolvent and moribund operating zombies. The talk of tight lending standards is intended to conceal their deep insolvency and inability to serve as the economic credit engines. The lack adequate reserves to serve as system lenders. They are slowly having their gold removed, methodically bank by bank, as a consequence of their insolvency and ruin, aggravated by their derivative exposure. The newest agent in the game is the anonymous London Trader, whose activity has been nicely chronicled by King World News in a series of interviews. A central bank has been buying with both hands with lust for the yellow metal. What great news for gold investors, an enforcer.

The Gold Wars have significantly changed in the last two years in particular. From 2004 to 2009, the battle was to win a fair higher gold price. No longer. The war has turned the corner and reached an end game scenario. The objectives have changed. The tactics used have been altered. The upper hand by the Good Guys against the Crooked Boyz is evident. Some new confusion has entered the room. The objective is to remove gold from the bullion bank inventories and major bank inventories, all of it. This is a new battlefield in the war. Being a Zombie bank means losing all the gold in reserves, in a time hourglass process that reflects the reality of their balance sheets. By the end of 2013, no big bank will own any physical gold. They cannot defend against off-side positions in the sovereign bond market and the currency market. See what happened to JPMorgan in such a case, as it preyed upon MFGlobal accounts. Other big banks are losing all their gold from the balance sheet. UBS is a dead body on the field, their false story of a rogue trader having provided a little distraction. Few if any financial press stories are honestly told anymore. Certainly not the Libya story, where 144 tons of gold were confiscated as war booty by London. That supply filled some gaps but only temporarily.

Price implications are part of the sacrifice, as the Good Guys will help to push down the Gold price at times in order to kill a gold cartel player. Like right here, right now. Every couple months (the last being in January), a massive group of orders must be filled at a low price, for the benefit of the Good Guys, with an evil player in a vulnerable position, who knows he is dead and must forfeit its gold. The gold market stalls until the hairball is passed and another gold cartel player is gutted, carried off the battlefield under the cover of press darkness. Therefore the Gold price stays down until the order is completely filled, and only then will recover a couple hundred dollars in price per ounce, but only after this gold cartel player is killed off. The player will be identified later, in the fair market obituaries known to the internet journals. The tombstone epitaph will be carved by an Eastern hand. The US press would never report on a cartel bank having to sell $70 to $100 million worth of gold bullion to remove their big off-side position in bonds or currencies. The Good Guys have put in a series of escalating orders at low prices, from extremely well funded accounts whose war chests boast tens of $billions. The damage done to the gold cartel is immense, yet not adequately reported. The pattern showed itself in January, when after a similar event, the gold price moved from roughly 1600 to almost 1800. By February 29th, the cartel leaped on the day into position to conduct one of the largest naked short events in history. The press never seemed to catch wind, since paid not to notice.


Nothing new on this Modus Operandi, used heavily for over three years. The game is easy. The ignorance is widespread. The gold analysts barely notice, certainly not the deaf dumb blind Adam Hamilton. The cartel wrote the GLD and SLV prospectus. They permit shorting of shares for some odd reason, yet pose in legitimacy. They permit satisfaction of short shares in the removal of bullion from inventory. They might not permit altered bar lists that bear no consistency, but that is convenient to cloud the loading docks from which bars are removed in high volume. The gold and silver supply in a pinch for cartel banks is the very metal that stooge nitwit naive folks believe they indirectly hold by exercising their lazy fingers to punch in GLD or SLV while eating at their desks. The smart investors, the intrepid winners, they own vaulted accounts of physical metal in safe distant lands, untouched by the vagaries of paper certificates, the ultimate in forged wealth. The ETFund investors are victims to be revealed at a later date, when those corrupted funds trade at a 25% discount to the spot price and the differential is blamed on something lame like accumulated management fees. The march of lawsuits will make for great theater, possibly more entertaining than the MFGlobal & JPMorgan criminal travesty. The metal taken from these Exchange Traded Funds will soon gather much attention, and high time!

Pull my finger

on Mar 24, 2012

Alex Jones and Webster Tarpley on world events

on Mar 26, 2012

The Outlook For REAL Money Only Gets Stronger : Andy Hoffman

Ranting Andy from Miles Franklin interviewed by Sean.

on Mar 28, 2012

Start polishing your investment strategy

From:The Australian
March 27, 2012 12:00AM

Do you stack?
BEWARE of entering ABC Bullion at 88 Pitt Street, Sydney. If you're not inadvertently locked in a room that displays gold and silver bars, you may very well be kept in a small, windowless conference room by Brett Le Brocque.

Le Brocque is ABC Bullion's chief investment officer. He is very bullish on silver.

Gold will preserve one's wealth, the boyish Le Brocque proclaims, but "silver will make you rich".

"In the next four to five years," he predicts, "silver will outperform gold like it did in the 1970s."

Between 1971 and 1980, the price of silver skyrocketed 39 times. That was largely due to the Hunts. Nelson Bunker Hunt and his brother William Herbert Hunt tried to corner the silver market. Their efforts boosted the price from $US11 to $US50 an ounce. The silver price collapsed on March 27, 1980, on a day known as "Silver Thursday".

There were lawsuits against the Hunts, who borrowed heavily to finance their silver purchases.

The Hunts, the inspiration behind the soap opera Dallas, were forced into bankruptcy and barred from commodity trading by the US government. Le Brocque is happy to write off the Hunts as an aberration.

Silver is 415 per cent below its proper inflation-adjusted price, he claims. It "should be" $US164 an ounce, Le Brocque says. Silver is trading about $US32 an ounce.

Moreover, Le Brocque says, the price of silver historically has been linked to gold at between 10 ounces to 16 ounces of silver to one ounce of gold.

Today it takes about 51 ounces of silver to buy one ounce of gold.

Eric Sprott, who runs Toronto-based Sprott Asset Management LP, reckons silver is due for a bull run. Sprott says silver will reach its all-time high this year because of widespread nervousness about the fundamental health of the world economy, prompting many to hold precious metals.

Few investment vehicles offer silver exposure, but there is a pure silver exchange-traded fund, iShares Silver Trust.

Listed on the New York Stock Exchange with the ticker SLV, it has a market value of about $US11 billion.

SLV owns 60 per cent of all the silver bars above ground, says Savneet Singh, chief executive of New York-based Gold Bullion International.

But Singh believes ETFs aren't transparent, insured or have geographic diversity or the option to hold the physical asset. Investors can buy silver futures contracts through CME Group. But there is a risk that a call for the physical metal may not be met in times of market disruption, according to Singh. Gold Bullion International has a platform that allows investors to gain exposure to silver.

Singh says his company offers investors transparent pricing, liquidity, a place to store the metal, the ability to buy it online and to have their holdings insured.

One of the world's big four accounting firms, Singh says, counts each bar of silver. KPMG audits the count. Investors can pick the location and delivery of the metal.

Gold Bullion International has more than 1000 clients and is on the platform of one of Wall Street's most recognised brokers.

"There is always a huge fear of how much silver there is above ground," Singh says. Silver "is a play on gold more than anything else". Le Brocque agrees. "We're in a commodity cycle," he states. Stocks are "buy, hope and hold" he says. Now firmly into his pitch, Le Brocque says every currency, except one based on silver or gold, has fallen to zero across time.

During the past eight years 77 currencies, including the US and Australian dollars, the yen and the euro, have fallen in value compared with gold and silver, according to Le Brocque.

"What's in your wallet is not a store of value. If you want to buy money, buy silver."   

BRICS to change world economy

As billions of people in the BRICs nations are dragged out of poverty they go from fighting to meets their needs to trying to fulfill their wants. Wants usually come at a high cost. It is believed that to bring the poorest in the world up to the same standard of living of the "poor" in an OECD country will take 5 Earth's worth of resources. So here we are faced with a two pronged attack on precious metals. We have the poor grasping at wants that often contain or use a precious metal in the manufacturing process affecting the Silver, Platinum and Palladium markets, and billions of people being able to have enough money to save their excess in culturally accepted forms such as Gold and increasingly Silver. This trend can only increase, billions of poor have seen the ads, they want to be like us, and they, and the rest of us will pay the costs of this desire.

on Mar 28, 2012


Capital Account with Mish and Joe Weisenthal

on Mar 27, 2012

Lauren Lyster moderates a debate between Mike Shedlock and Joe Weisenthal, two bloggers who represent different sides of the ideological spectrum when it comes to gold, currency, and fiat money.

Jeffrey Christian on the Gold market

on Mar 28, 2012

Movie - Silver Circle - Official Trailer

Hot on the heels of Ron Paul showing BS Bernanke a Silver Circle round and telling him it was real money comes the trailer to the soon to be released movie "Silver Circle"

on Mar 26, 2012


Egon von Greyerz on Gold and Silver

Egon von Greyerz on the Gold and Silver markets. Listen to the interview with Eric King of King World News here

'Hunt for Assange' chokes air for whistleblowers

on Mar 27, 2012

Washington's relentless pursuit of WikiLeaks founder Julian Assange, and alleged whistle-blower Bradley Manning, is no secret. And for some experts, the US government's high-profile crackdown on the two men is designed to send a warning to other critics of Washington's actions.

Pakistanis tired of American attacks

on Mar 27, 2012

Wednesday, March 28, 2012

Jim Sinclair on the SWIFT war on Iran

Jim Sinclair discusses the weapon of choice that the US using against Iran, that weapon is SWIFT (interbank communication system), and the effect this will have on the Oil for Gold trade. Listen to the interview with Eric King of King World News here

Quote of the Week

"When you subsidize poverty and failure, you get more of both" 

Keiser Report: Muppets Hunting Muppets

on Mar 27, 2012 Follow Max Keiser on Twitter:

In this episode, Max Keiser and co-host, Stacy Herbert, discuss rising tides of incontinence and cultural revolutions while muppet hunting with Lloyd Blankfein and the seething masses worshiping Ben Bernanke. In the second half of the show Max talks to bestselling author, Charles Goyette, about bi-partisan debtors, peasant pitchforks and a warmongering state.

Tuesday, March 27, 2012

Capital Account - Financial Oligarchy and the New Robber Barons

on Mar 26, 2012

Gold and Silver jump as Ben takes it easy

Gold and Silver gaped higher at the New York opening overnight and have maintained their gains during trade in Sydney and Hong Kong. With Gold again flirting with the $1700 level and Silver $33. The reason cited is that Ben opened his bagel hole again, unlike two weeks ago when he said something and the Gold price fell $40, today the Gold price spiked $30 - go figure.

In summary BS Bernanke said at the Business Economics Annual Conference in Washington, DC that further QE is likely, well maybe, if you ask really nicely:
"A wide range of indicators suggests that the job market has been improving, which is a welcome development indeed.  Still, conditions remain far from normal, as shown, for example, by the high level of long-term unemployment and the fact that jobs and hours worked remain well below pre-crisis peaks, even without adjusting for growth in the labor force. Moreover, we cannot yet be sure that the recent pace of improvement in the labor market will be sustained.  Notably, an examination of recent deviations from Okun's law suggests that the recent decline in the unemployment rate may reflect, at least in part, a reversal of the unusually large layoffs that occurred during late 2008 and over 2009.  To the extent that this reversal has been completed, further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies"

charts from

Monday, March 26, 2012

Gerald Celente with Gary Null

on Mar 25, 2012

Fidel Castro - The Roads Leading to Disaster

Reflections By Fidel Castro

From: "Information Clearing House" March 23, 2012

This Reflection could be written today, tomorrow or any other day without the risk of being mistaken. Our species faces new problems. When 20 years ago I stated at the United Nations Conference on the Environment and Development in Rio de Janeiro that a species was in danger of extinction, I had fewer reasons than today for warning about a danger that I was seeing perhaps 100 years away. At that time, a handful of leaders of the most powerful countries were in charge of the world. They applauded my words as a matter of mere courtesy and placidly continued to dig for the burial of our species.

It seemed that on our planet, common sense and order reigned. For a while economic development, backed by technology and science appeared to be the Alpha and Omega of human society.

Today, everything is much clearer. Profound truths have been surfacing. Almost 200 States, supposedly independent, constitute the political organization which in theory has the job of governing the destiny of the world.

Approximately 25,000 nuclear weapons in the hands of allied or enemy forces ready to defend the changing order, by interest or necessity, virtually reduce to zero the rights of billions of people.

I shall not commit the naïveté of assigning the blame to Russia or China for the development of that kind of weaponry, after the monstrous massacre at Hiroshima and Nagasaki, ordered by Truman after Roosvelt’s death.

Nor shall I fall prey to the error of denying the Holocaust that signified the deaths of millions of children and adults, men or women, mainly Jews, gypsies, Russians or other nationalities, who were victims of Nazism. For that reason the odious policy of those who deny the Palestinian people their right to exist is repugnant.

Does anyone by chance think that the United States will be capable of acting with the independence that will keep it from the inevitable disaster awaiting it?

In a few weeks, the 40 million dollars President Obama promised to collect for his electoral campaign will only serve to show that the currency of his country is greatly devaluated, and that the US, with its unusual growing public debt drawing close to 20 quadrillion, is living on the money it prints up and not on the money it produces. The rest of the world pays for what they waste.

Nor does anyone believe that the Democratic candidate would be any better or worse than his Republican foes: whether they are called Mitt Romney or Rick Santorum. Light years separate the three characters as important as Abraham Lincoln or Martin Luther King. It is really unheard-of to observe such a technologically powerful nation and a government so bereft of both ideas and moral values.

Iran has no nuclear weapons. It is being accused of producing enriched uranium that serves as fuel energy or components for medical uses. Whatever one can say, its possession or production is not equivalent to the production of nuclear weapons. Dozens of countries use enriched uranium as an energy source, but this cannot be used in the manufacture of a nuclear weapon without a prior complicated purification process.

However, Israel, with the aid and cooperation of the United States, manufactured nuclear weaponry without informing or accounting to anybody, today not admitting their possession of these weapons, they have hundreds of them. To prevent the development of research in neighbouring Arab countries, they attacked and destroyed reactors in Iraq and Syria. They have also declared their aim of attacking and destroying the production centres for nuclear fuel in Iran.

International politics have been revolving around that crucial topic in that complex and dangerous part of the world, where most of the fuel that moves the world economy is produced and supplied.

The selective elimination of Iran’s most eminent scientists by Israel and their NATO allies has become a practice that motivates hatred and feelings of revenge.

The Israeli government has openly stated its objective to attack the plant manufacturing Iran’s enriched uranium, and the government of the United States has invested billions of dollars to manufacture a bomb for that purpose.

On March 16, 2012, Michel Chossudovsky and Finian Cunningham published an article revealing that “A top US Air Force General has described the largest conventional bomb – the re-invented bunkers of 13.6 tones – as ‘fantastic’ for a military attack on Iran.

“Such an eloquent comment on the massive killer-artefact took place in the same week that President Barack Obama appeared to warn against ‘easy words’ on the Persian Gulf War.”

“…Herbert Carlisle, deputy chief of staff for US Air Force operations […] added that probably the bomb would be used in any attack on Iran ordered by Washington.

“The MOP, also referred to as ‘The Mother of All Bombs’, is designed to drill through 60 metres of concrete before it detonates its massive bomb. It is believed to be the largest conventional weapon, non-nuclear, in the US arsenal.”

“The Pentagon is planning a process of wide destruction of Iran’s infrastructure and massive civilian victims through the combined use of tactical nuclear bombs and monstrous conventional bombs with mushroom-shaped clouds, including the MOABs and the larger GBU-57A/B or Massive Ordnance Penetrator (MOP) that exceeds the MOAB in destructive capacity.

“The MOP is described as ‘a powerful new bomb that aims straight at subterranean Iranian and North Korean nuclear facilities. The giant bomb –longer than 11 persons shoulder to shoulder, or more than 6 metres from end to end’.”

I ask the reader to excuse me for this complicated military jargon.

As one can see, such calculations arise from the supposition that the Iranian combatants, numbering millions of men and women well-known for their religious zeal and their fighting traditions, surrender without firing a shot.

In recent days, the Iranians have seen how US soldiers occupying Afghanistan, in just three weeks, urinated on the corpses of killed Afghans, burned copies of the Koran and murdered more than 15 defenceless citizens.

Let us imagine US forces launching monstrous bombs on industrial institutions, capable of penetrating through 60 metres of concrete. Never has such an undertaking ever been conceived.

Not one word more is needed to understand the gravity of such a policy. In that way, our species will be inexorably led towards disaster. If we do not learn how to understand, we shall never learn how to survive.

As for me, I harbour not the slightest doubt that the United States is about to commit and lead the world towards the greatest mistake in its history.

Fidel Castro Ruz - March 21, 2012

Priceless - The Fall of Rome

China Shops While American Investors Drop

By Neeraj Chaudhary, Investment Consultant with Euro Pacific Capital

Unquestionably there has been a significant change in investor sentiment since the crash of 2008. The 50% decline in stock prices in 2008-2009 combined with the financial sector bailouts, the "Flash Crash" of 2010, and the continued demonization of our leading financial institutions, has helped shatter the public's faith in Wall Street. With U.S. stock markets essentially flat over the past 13 years (despite occasional heart-stopping volatility), many investors may have decided that long term equity investments are just no longer worth the risk.

It is important to realize however that this sentiment is not universal. On the other side of the world, the Chinese are showing no such hesitancy. There is mounting evidence to suggest that the Chinese government is in the midst of a voracious buying spree in which they are actively snapping up productive assets around the world. What do they know that we don't?

Data shows that in recent years U.S. investors have pulled money out of stock focused mutual funds and have instead piled into assets that at least appear to be less risky, such as bonds and money markets. When one considers the large unresolved problems that currently overhang the market, such as the Greek debt negotiations, the U.S. elections, and the perennial problems in the Middle East, one can understand the concerns that are keeping them on the sidelines.

Although these investors may be somewhat insulated from market volatility the protection comes at a very high price. With near 0% interest rates, bond investors are consistently losing to inflation (for more on how inflation robs you of your purchasing power. The world's central bankers - led by the Fed - have created a landscape where the shaky ground of the markets is surrounded by the quicksand of deteriorating cash. Investors have seemingly nowhere to run. But China seems undeterred.

A scant 10 years ago, China joined the WTO and began her rise to prominence on the world economic stage. Though today China possesses over $3 trillion in foreign exchange reserves, in 2001 Chinese reserves were estimated at a relatively paltry $200 billion. China has accumulated these funds by keeping her currency cheap, and socking away trade surpluses to the tune of hundreds of billions of dollars per year. And although the stash is growing, the Chinese are not simply sitting on this pile. They have been one of the leading global investors, strategically buying international assets that fit its growth plans. There is every reason to suspect that these trends will continue and accelerate.

For the first few years after her accession to the WTO, China was content to simply pile up foreign exchange reserves, accumulating both US Treasury bonds and agency (Fannie and Freddie) securities. Being risk-averse, and considering them the safest assets in the world, the Chinese were content to earn the lower interest income that these investments offer.

But in the past few years, China began to recognize that their savings were losing value in real terms. Beginning in 2007, they made the strategic decision to protect themselves from inflation by diversifying out of US dollar-denominated financial assets, and into the hard assets she required to grow her economy.

The volume of deals has been breathtaking, and the tempo is accelerating. According to the Heritage Foundation - which publishes the only publicly available, comprehensive dataset of large Chinese investments and contracts worldwide beyond Treasury bonds - Chinese foreign investment has gone off the charts:
  • In 2007, Chinese sovereign wealth funds and state-owned enterprises bought stakes in or signed long-term contracts with at least 35 different firms for an investment total of almost $43 billion
  • In 2008, the Chinese signed at least 57 deals worth a total of nearly $74 billion
  • In 2009 - in the wake of the global financial crisis, and with virtually every investor in the world pulling back and hoarding cash - China signed another 76 deals worth $76 billion
  • 2010 was the biggest year by dollar volume: 98 separate transactions totaling $110 billion
  • Last year was the biggest year by number of deals, 111 investments for $94 billion
All told, the Chinese have spent $443 billion in nearly 400 separate ventures in every continent around the world. And yet, a simple analysis of these investments reveals a highly concentrated portfolio of holdings; if actions speak louder than words, then Chinese priorities are glaringly obvious. Over the past few years, they have deployed fully 80% of their cash into just four sectors: Energy (the lion's share at $172B or 39% of the total), Metals ($85B or 19%), Transportation ($60B, nearly 14%), and Power ($38B, just under 9%).

By geography, the Chinese first went shopping in Asia, picking up $115B worth of assets in their backyard. Then, choosing to ignore the niceties of international sanctions, the Chinese turned their attention to Africa and the Middle East, where they have plunked down at least $111B of capital. After that, they came to our front door in the Western Hemisphere, to the tune of $88B. Europe is home to $52B of Chinese capital. Australia is the largest single country investment, representing 10% of investment at $43B.

And they're not done yet. According to recent media reports, the Chinese are currently planning to deploy another $300 billion into "aggressive" investments. The trend is crystal clear. While some investors hold out, trying to time the market, China is buying up everything they can get their hands on.

But perhaps even more interesting than what is going on in the glare of the public spotlight is what is being done in private. In addition to its massive disclosed investments, China has begun to execute a parallel strategy in secret. With respect to gold, China kept a large scale purchase program under wraps for a full five years until 2009 when China's State Administration of Foreign Exchange (SAFE) announced it had spent the previous five years buying gold in small lots. Then, in April of that year, they publicly announced that they had acquired 500 tons of gold, and transferred it to the People's Bank of China. At current market prices, this single transaction is valued at nearly $28 billion.

One of the biggest questions that investors should ask themselves now is where the Chinese might decide to spend its considerable sums that continue to languish in debt instruments. There are reasons to expect that large scale purchases by the Chinese could support asset prices in whatever sector they decide to target.

If the trend of publicly disclosed and secret Chinese transactions continues, and if other developing markets holding piles of like valued U.S. treasury debt follow suit, the world could soon wake up to an even more intense kind of shaking, one where prices for agriculture, energy, and precious metals are continually increasing, and investors seeking apparent safety in dollars have instead lost wealth in real terms.

So as U.S. investors drift away from equity and commodity based assets in hopes of finding safety, they should in fact pay more attention to activities of those countries that will likely drive global markets for years to come. China is gearing up for what they hope will be a long period of economic expansion. American investors would be wise to take notice.

------ / ------

To find out which economies we think stand to benefit from China's expansion, see the latest edition of Euro Pacific's Global Investor Newsletter.

Neeraj Chaudary is an Investment Consultant with Euro Pacific Capital. Opinions expressed are those of the writer and may or may not reflect those held by Euro Pacific Capital, or its CEO, Peter Schiff.

Martin Armstrong on the Queensland election result

click on image to access report

I always thought money came out of a black box

 Thanks heaps to the Silver Doctors for the link to this very funny money video.

Sunday, March 25, 2012

Ellis Martin Report with David Morgan March 23, 2012 Part 2

If you missed part one you can watch it here

on Mar 24, 2012

Brother JohnF Silver Update

Brother JohnF latest silver update and discusses my post on tungsten filled gold bars.

on Mar 24, 2012

Counting the Cost - Hong Kong: The future of Asia's financial hub

For all those who have ever lived and worked in the amazing Hong Kong.

on Mar 25, 2012

On The Edge - Soaring Oil price & weakening US economy

on Mar 24, 2012

In this edition of the show Max interviews Chris Cook; a former oil market regulator.

Chris Cook is an independent energy analyst and a former oil regulator who has the latest on energy markets. He talks about the soaring oil prices and its impacts on the weakening US economy.

He argues that the US market is in a free fall and the US has piled debt on debt. He also comments on the role of investment banks like JP Morgan and Goldman Sacks, and the military threats against Iran on the oil price.

Saturday, March 24, 2012

Liberty locked & loaded

I miss the freedom we used to have in Australia.....

on Mar 24, 2012

Keiser Report: Selective Amnesia for Brokers & Murderers

on Mar 24, 2012   Follow Max Keiser on Twitter:

In this episode, Max Keiser and co-host, Stacy Herbert, discuss Irish stoicism and social ostracism, boycotts and ponzis and the banking practices of Chuckie. In the second half of the show Max talks to independent journalist, Lars Schall, about his recently published investigation into insider trading around the 9-11 terrorist attack as well as his pursuit of Germany's elusive gold reserves.

Is Uncle Ben your Hero?

Who would you prefer as your Hero?

or this guy

Silver Money found after 1,700 years, and it is still valuable!

More than 30,000 silver coins have reportedly been unearthed during an archaeological dig in Bath.

One of the largest hoards of Roman coins discovered in Britain has been discovered by archaeologists working at the site of a new city-centre hotel.

The hoard, believed to date from the third-century, was found around 450 feet from the historic Roman Baths.

Experts believe the "treasure trove" is the fifth largest hoard ever discovered in Britain and the largest from a Roman settlement, the Telegraph reported.

The coins, which have been sent to the British Museum for further analysis, are fused together in a huge block.This has made identification and counting difficult and conservators at central London Museum expect that the task of analysing the coins would take around 12 months.

The Gold Standard Vs. A Competitive Monetary System

on Mar 19, 2012

James Turk and Alasdair Macleod discuss the pros and cons of the gold standard, the benefits of competition between different currencies and the historical role of gold in international monetary systems.

Link to James Turk's essay on Money and Warren Buffet

China's "quiet campaign" in Hong Kong

on Mar 22, 2012

101 East - India's coal rush

So India is planning to build another 175 Coal fired power stations, in addition to those they already have. Australia's response is to tax our 40 or so coal fired power stations and other heavy industry, which of course the people will end up paying. I am so disgusted with our tax thieving, want to be communists we have in power in this country, not that the other side is any better, they all think taxes are good. Taxes are evil period. More people in more places have risen up over taxes than for any other reason.

on Mar 22, 2012
On 101 East, filmmaker Orlando de Guzman takes a dark journey through the coal belt of Jharkhand and West Bengal, to look at the winners and losers of this booming industry.

Capital Account with Jim Rogers

Read my post on Bernanke's lecture here

on Mar 23, 2012

Friday, March 23, 2012

Weekend Chillout - Calling for Freedom

With all the discussion about the suppression of freedom this week I thought a call for freedom for all peoples was called for.

Maher Zain - "Freedom"

Concert footage from Maher Zain's concerts in Malaysia at the Malawati Stadium, 25-26 February 2011

a double play this week

Pete Murray - "Free"

James Turk - Hyperinflation On Our Way

AltInvestorshangout on Mar 22, 2012

The Bull Market in Gold and Silver Prevails

By Bob Chapman

Original Source

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We have been in and around the gold markets for 53 years and conditions have certainly changed, driven mainly by market manipulation of all markets as a result of the Executive Order, which created the “President’s Working Group on Financial Markets.” Those who doubt that are either on the government payroll one way or the other, or you are just too dumb to understand what is really going on. In spite of these machinations and ignorant naysayers the bull markets in gold and silver are still alive and well. What you are seeing are paper markets and the use of derivatives to effect short-term pricing, especially when negative events are about to occur. Those events are aided by naked shorting and illegal concentration in both gold and silver and the shares. Mind you, this is being done in a market to control it and in addition government and central banks relish stomping gold and silver into the ground. For years they hid what they were doing. Today their manipulations are in your face. These dramatic forced price falls are fortunately accompanied by heavy buying by China, Russia, India and others. All the elitists are doing is giving long-term investors an opportunity to purchase both metals at prices far below their real value. Official government inflation figures say gold should be selling at about $2,500 an ounce. Real inflation statistics would have gold selling today at almost $9,000. Such deliberate under pricing is accompanied by financial chaos in Europe and England, high oil prices that reflect the possibility of conflict in the Middle East, the results of $1.4 trillion in loans to 800 European banks, England on the edge of bankruptcy and the continual quantitative easing and things such as Operation Twist by the Federal Reserve. The official government line on statistics is all lies. We see one research report after another pandering to these falsities, which is next to worthless. The professionals and investors continue to use these bogus figures and continue to lose money in the process.

There are few sellers in the physical gold and silver markets. The selling takes place in the paper markets. Demand worldwide for these metals as a store of value has never been stronger. Buyers are countries and flight capital from the Middle East and Asia. The traffic is very intriguing. In China the government promotes gold ownership and has thousands of outlets across the country, as does CIBC. They are called gold savings accounts. Just the opposite is true in the US, UK and Europe, where violation of privacy and freezing or confiscation of assets is possible.

Last year demand for gold rose 20% worldwide and it could top $100 billion in 2012. We are seeing major demand as well for Europe as the euro zone deteriorates without a solution in sight.

We have already seen shortages of 1/5 and ¼ ounce coins from time to time as Europeans gobble them up. These developments are reflections of the ongoing financial problems facing the US, UK and England. Those problems are recognized worldwide and thus, we have massive gold off take by many countries. In tandem all countries are running deficits and it is getting worse not better. The attitude is print money like everyone else is and buy gold at cheap prices. There has to be a lesson to be learned when US dealers go to European wholesalers and get little or no new product. At retailers product offerings are even slimmer.

Gold and silver have been in bull markets since June of 2000 and the trend continues, as nations get deeper in a financial hole, which is reflected in their currencies in the form of higher gold and silver prices. Manipulation of paper gold markets cannot continue on forever. One derivative default and the whole edifice could collapse. Manipulation only allows you to buy cheaper, but once the cartel is out of gold and silver underlying their positions, the game will be over.

Why The CFTC Won't Pull The Plug on Silver Manipulation

By Bix Weir

My friends over at GATA posted an article yesterday critical of the CFTC and the ongoing manipulation of silver. You can find it here:

The CFTC has already done all it can about Silver - And Everything Else

The gist of the article is that the CFTC knows that the silver market (and all other markets) are manipulated but because of the importance of the operations to the US Government they will not do anything about it.

GATA is 100% correct. Market Manipulation is being done for "official purposes". The CFTC will not be the ones to stop it and the reason is very simple...

If the silver manipulation is ended every single electronic monetary "asset" in the world will suddenly and violently implode erasing the entire Global Monetary System.

This is a fact that is inescapable. Without silver price manipulation the mega silver short, JP Morgan, would be vaporized and with them goes $75 Trillion in derivatives that are used to rig the other important markets such as interest rates, currencies, commodities, stocks, bonds...all of it. They are the tool that the US Treasury uses to orchestrate our monetary world from behind the curtain of the Great and Powerful OZ!

So in the case of JP Morgan..."Too Big Too Fail" means just that.

But in the Road to Roota Theory this "End Game" has been the plan since the very first computer market rigging programs were written and implemented in the early 1970's by Alan Greenspan and his friend John Kemeny.

The Road to Roota Theory

This is the first time in human history that the world has used electronic assets as money and as a store of wealth. We laugh at those who believed in the Dutch "Tulip Bubble" of the 1600's where people invested their entire life savings in tulip bulbs thinking they would get rich. Of course they lost everything when reality hit. What advice would those who lost everything in the 1600's give us today when we tell them that we use electronic blips as our "assets" now?

So can we really blame the CFTC for not doing their job? If it were YOU who could stop the manipulation of silver WOULD YOU? Would you pull the plug if it meant every person in the world would lose everything they ever worked and saved for?

Tough call but don't will all end. It just won't be the CFTC that pulls the plug.

And remember - when it does end you will be VERY happy you have physical silver in your own possession.

May the Road you choose be the Right Road.

Bix Weir

The Federal Reserve and the Financial Crisis

The Federal Reserve and the Financial Crisis
Origins and Mission of the Federal Reserve, Lecture 1 George Washington University School of Business March 20, 2012, 12:45 p.m.

An interesting lecture on the history of the Fed and US monetary history.

For Gold Bugs who don't won't to watch the whole lecture jump to the 26 min mark.

My critique of Ben's comments on the Gold Standard:
  • Yes, gold does take a huge amount of oil, labour and brainpower to locate, dig up, refine, transport and vault. Hence gold has intrinsic value, unlike the guy on the desk at the New York Fed adding a few zeroes to the money supply which takes little effort, and apparently no brainpower.
  • Yes under a Gold Standard the amount of gold held determines the money supply and there's not much scope for the central bank to use monetary policy - well what a damn shame that is. The world gold stockpile then to increase on average by 2% per year. So if we were on a Gold Standard the money supply would also increase by 2% year. Interesting to note the world's population tends on average to increase by 2% year. Some with a religious belief may be inclined to think this is by design. Of course all the world's major religious texts stating Gold and Silver are money are merely a coincidence to this 1:1 ratio.
  • Ben: "under a gold standard, typically the money supply goes up and interest rates go down in periods of strong economic activity. So that's the reverse of what a central bank would normally do today" - Well of course when the supply of a good increases the cost to buy, or in this case borrow, of that good goes down. That's basic supply and demand, a natural law, not a man made law.
  • Ben: "So again, because you had a gold standard which tied the money supply to gold, there was no flexibility for the central bank to lower interest rates in recession or raise interest rates in an inflation. Now some people view that as a benefit of the gold standard, taking away the discretion from central banks and there's an argument for that, but it did have the implication that there was more volatility year-to-year in the economy under a gold standard, and there has been in modern times" - Damn straight some intelligent people think this is a benefit of a Gold Standard. As to the volatility, Suck It Up! Regular downturns kill off the weak and useless businesses allowing better managed and innovative businesses take their place. In an Aussie context regular recessions are akin to control burns of bushland in winter to prevent massive bush fires in summer. Yes some trees get burnt, some cute furry animals die but the whole place doesn't go up come summer, killing everything. If prior to the 2008 financial firestorm we had regular downturns taking out some institutions before they become To Big To Fail would 2008 have been any more than a spot fire?
  • Ben: "Yet another issue with the gold standard has to do with speculative attack. Now normally, a central bank with a gold standard only keeps a fraction of the gold necessary to back the entire money supply. Indeed, the Bank of England was famous for keeping, as Keynes called it, a thin film of gold. The British Central Bank only kept a small amount of gold, and they relied on their credibility to stand by the gold standard under all circumstances to--so that nobody ever challenged them about that issue. But if for whatever reason, if markets lose confidence in your willingness and your commitment to maintaining that gold standard relationship, you can get a speculative attack. This is what happened in 1931 to the British. In 1931, for a lot of good reasons, speculators lost confidence that the British pound would stand gold, so just like a run on the bank, they all brought their pounds to the Bank of England and said, "Give me gold." And it didn't take very long before the Bank of England was out of gold cause they didn't have all the gold they needed to support the money supply and then, there was essentially--they've essentially had to leave the gold standard." - Well if they were running a Gold Standard that held Gold on a fractional basis then they were just liars and deserved to get called out on it. One of the strengths of a true Gold Standard is if the market no longer believes you have the gold to back your issuance of paper claims on that gold you get punished for your crimes. 
I could go on but I am starting to rant, and that I will leave to Alex Jones. Personally I don't believe in a Gold Standard (although it seems to be better than what we have now). I believe we should have a free market in money, radical I know. If a business wants to sell their products in grams of 9999 gold or 999 silver go for it, if others want to trade in dates, rice, wheat, oil, sugar they can do that to. The market will quickly work out what the majority of buyers and sellers prefer and create payment and collections solutions around this chosen range of trade able items. In the US there is currently a black market using Tide washing powder as the currency, and why not? it is fungible, has intrinsic value, can be stored for later trade and cannot be created in infinite quantities.

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Loving the Bling and the number 8

Photos From A Chinese Gangster's Lost Cell Phone

I always thought real money was green
To look at all the pics click here - warning contains images of the collections dept. with a client

Iran oil ban to break EU faster than Euro?

on Mar 21, 2012

Iran oil ban to bring huge spat between US & China

on Mar 22, 2012

Toulouse killer suspect dead as siege ends

Mar 22, 2012 by

Keiser Report: Unbanked & Unworthy

on Mar 22, 2012   Follow Max Keiser on Twitter:

In this episode, Max Keiser and co-host, Stacy Herbert, discuss the great 'unbanked' masses dumping gold believing in a 'recovering economy' and an end to money printing while banks and insiders buy gold and mortgage backed securities in preparation for more quantitative easing by the Fed. In the second half of the show Max talks to Mark Melin of Uncorrelated Investments about MF Global, JP Morgan and the future of the futures market. They also discuss the Charles Manson's of the futures industry and the branch office of the too big too fail banks formerly known as the SEC.