We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Gold Moves From Currency To Performing Insurance

Posted: Sep 18 2010 By: Jim Sinclair Post Edited: September 18, 2010 at 3:58 pm

Filed under: General Editorial
Gold Moves From Currency To Performing Insurance

Dear Extended Family,
Dinner is finished and the coffee has been served. I am not eating with a few friends, but rather with all of you. What I have been trying to say during dinner was that the time for the consideration of gold as a market entity is over.
Anglo Ashanti has just closed out their $1.58 billion losing hedge book as gold reaches for a new high. They have slaughtered their cash position and increased their debt. That is a milestone in the time sense because it is here and now that gold has moved from a currency to a performing insurance against what is no longer coming down the pike but is now here. Anglo thinks it threw in the towel due to some mathematical decision, a new high, but even the dense ones can feel the change yet they cannot articulate it.
Another milestone is Dean Harry’s discussion concerning lessening the demands of producing masterpieces on a planned schedule. I have known Dean Harry almost my entire career. The thought of not seeing HSL on schedule saddens me because it marks a career long change.
Milestone developments and their implications are rarely recognized except in hindsight. What it means to me along with gold establishing new highs amidst the storm of top calling is that what has for years been a forward looking mainstay of the gold price is no longer mental speculation, but rather reality hiding in plain sight.
It is no longer necessary to go through the logic of why we have done what we have done. Those events are right in front of your nose.
Privacy is history.
Confidence in fiat currency is a memory of a bull market from the 1950s to 2008.
The Western World banking system is broken and will stay that way.
The mountain of financial WMDs (OTC derivatives) grows daily, protected by lobbyists in the employ of finance.
The rule of law is a dark comedy. It is nothing more than legislation containing thousands of pages but no common sense proliferates.
Western World budget deficits are now totally uncontrolled.
Debt is destroying the Western World now.
The USA is building a caste of untouchables in perma-poverty as Asia lifts its population into an enormous and affluent consumer base that can be sustained by trading amongst themselves.
Gold tonight is the difference between being swallowed up by events or being the cause of your own survival in many ways.
Here in Tanzania you need the most recently dated US currency. A 1996 $50 or $100 US note is worthless in exchange for anything. The gray market is discounting these notes by 20%. Right now the reason is primarily the excellent quality of counterfeits being printed by countries not wishing the USA well. Yet here is another milestone that says if you travel often and far, you must have no less than 7 one ounce gold coins in your pocket. Your paper may be worthless. Your plastic stands on continued functioning technology and the solvency of the credit card company.
If I did not have gold with me, I would have little confidence in getting back on my timed schedule.
All the conjecture is over. The future is today. Those who have done nothing will have nothing.
I will see 30 of you here very soon. Our conversations will be taking place in the African bush around a comfortable campfire with WiFi. That is also a milestone of sorts.
The bill for dinner has been on the table for awhile. The help seems to want to go home.
Goodnight.
Respectfully,
Jim in Dar

Third world America
Sep 14, 2010 by Luiza Ch. Savage
In February, the board of commissioners of Ohio’s Ashtabula County faced a scene familiar to local governments across America: a budget shortfall. They began to cut spending and reduced the sheriff’s budget by 20 per cent. A law enforcement agency staff that only a few years ago numbered 112, and had subsequently been pared down to 70, was cut again to 49 people and just one squad car for a county of 1,900 sq. km along the shore of Lake Erie. The sheriff’s department adapted. “We have no patrol units. There is no one on the streets. We respond to only crimes in progress. We don’t respond to property crimes,” deputy sheriff Ron Fenton told Maclean’s. The county once had a “very proactive” detective division in narcotics. Now, there is no detective division. “We are down to one evidence officer and he just runs the evidence room in case someone wants to claim property,” said Fenton. “People are getting property stolen, their houses broken into, and there is no one investigating. We are basically just writing up a report for the insurance company.”
If a county without police seems like a weird throwback to an earlier, frontier-like moment in American history, it is not the only one. “Back to the Stone Age” is the name of a seminar organized in March by civil engineers at Indiana’s Purdue University for local county supervisors interested in saving money by breaking up paved roads and turning them back to gravel. While only some paved roads in the state have been broken up, “There are a substantial number of conversations going on,” John Habermann, who manages a program at Purdue that helps local governments take care of infrastructure, told Maclean’s. “We presented a lot of talking points so that the county supervisors can talk logically back to elected officials when the question is posed,” he said. The state of Michigan had similar conversations. It has converted at least 50 miles of paved road to gravel in the last few years.
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