On Gold, A Cracked Dam, And The Fed's Small Thumb

The United States of America (and the rest of the world for that matter) has not fundamentally grown much at all over the last 40 years. We have instead replaced fundamental growth with the illusion of growth brought on by constantly increasing the monetary supply, aka, inflation. But like any good Ponzi scheme, even this one has a limit and investors briefly approached it in 2008.  When it looked like our global banking system was going to collapse, investors started dumping everything in site, essentially a de facto rejection of dollar based assets.  Alas, this terrible 'fiat' system is finally coming to its' inevitable end.  And good riddance at that. The death of fiat money will be the best thing to happen to human freedom and liberty in over 100 years.  However, you must realize that the deflation associated with the collapse of the dollar-based fiat monetary system will wipe out decades worth of false asset price growth in a very short time.  Think days or months.



On Goldman's Fascination With Pimping And Prostitution

Overnight, the NYT's Nicholas Kristof penned an article which exposes Goldman, already deeply embroiled in muppetgate damage control, as being a 16% indirect owner in Backpage, an "emporium for girls and women - some under age or forced into prostitution... which has 70 percent of the market for prostitution ads, according to AIM Group, a trade organization." " Yet some may be surprised to learn that this is not the firm's only expansion into the world of monetized prostitution. As the chart below shows, as of Q4, 2011, the firm also happens to be the top ten owner of Adult Friend Finder (Nasdaq: FFN), a company which recently went public, and which is nothing more than a porn portal for women, who can sell their "assets" to the highest bidder.

Fast Forward Through Fiat's Fantastic Fabrications

Still confused about the fiat system praised last week so highly by the Chairman, to students from a university named for a person who would do away with the Fed in a heartbeat? The following 3:30 mintue video will explain everything.

 

The Market Will Be Well Positioned For Any Fed Policy Change

Eric De Groot at Eric De Groot - 1 hour ago

The curtain of negative headlines hides bullish money flows in the bond and currency market. Yesterday, I suggested that Bill Gross's assertion that the U.S. Federal Reserve will likely hint at a third round of bond purchases, better known as "quantitative easing," at the coming meeting in Jackson Hole finds support in the bond market. The bond market diffusion index (DI), a cumulative measure... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Chart Of The Week: This Is Who Is Selling

For every seller there is a buyer. Which conversely means that for every robotic HFT, central bank or Primary Dealing buyer there is a seller. We present who that seller is...

Guest Post: A Postmortem Of Niall Ferguson's Otherwise Epic Lecture: Empires On The Edge Of Chaos

A few words on this IMO must watch lecture - Niall Ferguson: Empires on the Edge of Chaos  While Fergie is brilliant in his historical analysis, he gets a few niggling points wrong - Which I suspect is in part from having an Anglocentric viewpoint, which leads one to ignore some fairly hushed up (by the MSM) points of the good 'ol US of A, and in part from his rather British nature of believing in above all else, order, honoring of contracts, rule of law, and other quaint genteel notions of civil society.

Times Three: That's How Much The BLS Upwardly Fudges Data During An Election Year

That the BLS perpetually distorts and manipulates data is no secret and has been reported previously both here and elsewhere numerous times. That the BLS also has a habit of leaking critical market moving data to various entities is also well known. However, we had yet to see just what the BLS is capable of when it comes to fudging and outright slaughtering economic data in a presidential election year. The result is nothing short of a 3 sigma stunner.

Schrödinger Goes To Shanghai - Finds Economy Both Alive And Dead

Back in February we were quite amused by conflicting internal and external reports of manufacturing growth in China, which according to the HSBC Markit Manufacturing PMI index had contracted for a 4th consecutive month even as the official Chinese PMI data showed 3 consecutive expansions. It just happened again, only this time the spread between the two indices has jumped to the second highest ever, with the official PMI index surging to 53.1, an expansionary number, an eleven month high while according to HSBC it slid to 48.3, indicative of contraction, and paradoxically indicating that in "the first quarter as a whole, the index averaged its lowest reading since Q1 2009." In other words, the Schrödinger paradox - where the economy was doing better and worse at the same time - which was experienced for the past three months in the US (and is now finished with the economy rolling over), has shifted to Shanghai, where it is now the PBOC's turn to baffle all with bullshit. Why? One simple reason: despite what everyone believes, China still has residual and quite strong pockets of inflation. So while the world may be expecting an RRR, or even interest rate, cut any second now (just as China surprised everyone literally house before the November the global FX swap line expansion by the Fed in November 2011), the PBOC is just not sure it can afford the spike in inflation, or even perception thereof.

Silver CEO Bradford Cooke Responds to Eric Sprott’s Letter to Save in Silver, Not Cash

from Future Money Trends:
Endeavour Silver and Canarc Resource Corp CEO Bradford Cooke responds to Eric Sprott’s call to save in the physical silver they mine instead of fiat dollars. We sat down with Bradford Cooke recently to learn of the details of this decision and how it has worked out for them so far.

 

Agenda 21: The Wrenching Transformation of America

from JudgeNapolitanoFTW :
Tom DeWeese, the founder and director of the American Policy Center informs an audience in Albany, NY about the origins of Agenda 21, the central planning strategy that has grown out of the United Nations since 1993 to become soft law in the cities and counties across America to control all facets of the economy for an international redistribution of wealth.
This United Nations program lays out a comprehensive plan of sustainable development locally, nationally, and globally in every area where humans affect the environment. Basically it’s the UN’s plan to establish control over all human activity, including man’s reputed contribution to climate change. The UN is at the hub of a global network working to submerge the independence of all nations in a world government controlled by the elites, and JBS calls for the U.S. to get out of the U.N.

Gold and Silver Manipulation

 

Federal Reserve’s “Economic Cliff” Looms Ever Closer…

from The Ulsterman Report:

Being drowned out by the Obama race-baiting campaign surrounding the Treyvon Martin shooting is Federal Reserve Chairman Ben Bernanke’s public admission this past week that the United States economy is once again on the brink of collapse.
A Chicago Tribune editorial put the dire warning this way:
In a Leap Day monologue to a House committee, the Federal Reserve chairman warned that, unless someone actually does something, a cascade of tax increases and spending cuts scheduled for January will, together, wash this lightweight economic recovery over his metaphorical cliff. Bernanke is too prim an academic to say, “Then you can kiss your GDP goodbye,” but he came close: The removal of so much money from the day-to-day U.S. economy, he said, could trigger another financial crisis, spike interest rates up, and drive growth down.
Read More @ TheUlstermanReport.com

 

Central Banks Stockpiling Gold & Governments Hoarding Oil

from King World News:
With gold and silver set up for a big move this week, today King World News interviewed 40 year veteran, Robert Fitzwilson. Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the Unites States. He told KWN that investors need to accumulate key assets while they remain undervalued. Fitzwilson also said gold, silver and oil are being hoarded by a combinations of central banks and governments. Here is what Fitzwilson had to say: “It is critical that people distinguish between price and value. As prices fall and ‘utility’ stays the same, that is what creates greater value. In the case of oil, gold and silver, not only is the utility holding steady, but it is actually rising.”
Robert Fitzwilson continues: Read More @ KingWorldNews.com

 

 

No More Viagra For Mario Monti And His Ilk

from Testosterone Pit.com:
Economic, regulatory, and entitlement reforms are tough. While they’re supposed to open opportunities, put budgets on sounder footing, or make the economy more competitive, they invariably cut into the flesh of some groups, who then react with demonstrations and strikes to draw attention to their plight and put pressure on the reformers to preserve the status quo.
This has been happening across the Eurozone wherever major reforms have been attempted. People in those demonstrations may speak of revolution—meaning a radical change. But they want the opposite: preserve the existing system. So it’s complicated. Greece is a salient example with impressive TV footage of street battles, Molotov cocktails, and burning buildings. In other countries, France for instance, reforms have been greeted with peaceful demonstrations and more disruptively, with massive transportation strikes that throw innocent bystanders, such as businesses, commuters, and travelers, into utter chaos, sometimes for days.
But now the perhaps most tongue-in-cheek effort will take place in Italy where unelected technocrat Prime Minister Mario Monti and his government are trying to liberalize the economy and create conditions for growth by reforming a whole slew of professions whose insiders are protected by regulatory barriers to entry.
Read More @ TestosteronePit.com

 

 

Modern Banking 101: Understanding Fiat

from thevictoryreport1 :

Despite every effort by governments, the gap between rich and poor continues to grow. It is now the biggest it has even been in history. All sorts of reasons for this have been proffered, but few, however, seem to realize that is a simple, inevitable consequence of our system of money and credit.

 

FLASHBACK 2011: Gold PAPER to PHYSICAL Ratio is a Stunning 100:1 – 2012 Will be the Year of Delivery | Ned Naylor-Leyland

from Cheviot via Commodity Online:
If gold traders of the futures markets need any more convincing to invest in physical gold, Ned Naylor-Leyland has one- the paper to physical ratio. Simply put- the number of open positions for just 1 bar of gold.
Ned Naylor-Leyland is the investment director at Cheviot Asset Management
In an interview with CNBC, Ned says that there is about a 100 open positions in the gold paper market for just 1 bar of physical gold. “The numbers are pretty frightening”.
This means that there are a 100 people who have electronically “bought” gold but there is just 1 bar of gold. Need any more reason to switch to physical.
Ned goes on to add that he believes 2012 will be the year of delivery. As people start to realize the importance of owning gold, more and more investors will put their money in the physical gold.
Read More @ CommodityOnline.com

Sheriff Joe Arpaio – MCSO Cold Case Posse Press Conference: Big Crowd, But NO PRESS!

from floydb310:

Filmed and Produced by http://www.westernjournalism.com (Western Center for Journalism)
Sheriff Joe Arpaio and the lead investigator of the MCSO Cold Case Posse, Mike Zullo, presented their preliminary findings today (March 31, 2012) regarding their investigation into the “probable” forgery of Barack Obama’s online birth certificate and selective service forms. This presentation was open to the public, and around one thousand attendees showed up, although mainstream media were absent.
The conference took place at the Church on the Green in Sun City, Arizona.

MUST WATCH: If the Dollar is the Problem, Could the Gold Standard Be the Solution?

PressTVGlobalNews asks: “Could we really dump the dollar? Tune in to the Agenda to find out.”
from PressTVGlobalNews :
“Saddam Hussein and Muammar Gaddafi both threatened to dump the dollar and look what happened to them. Yes, the return of the gold standard is not for the fainthearted – and you can be sure of a head on collision with America if you try and plot the downfall of the dollar. But since it’s not worth the paper it’s written on according to some, some believe the only solution is to go for gold.” – PressTV

Gold, Silver, Economy & More

by Bob Chapman, The International Forecaster via GoldSeek.com:
The following are some snippets from the most recent issue of the International Forecaster. For the full 22 page issue, please see subscription information below.
US MARKETS
We lie, you swear to it. That up until now has been the creed of elitist Wall Street. That may be changing to it is every man for himself. We, after months of MF Global lies, have now been told that during the last days of MF, its CEO Jon Corzine, was in direct contact with JP Morgan Chase and arranged the transfer of funds from MF to JPM. This is contrary to what he told Congress and the world. Could it be that the wall of silence on Wall Street is about to be broken? Could it be the criminal syndicate is about to be broken? We do not know but it could all become criminal. JPM obviously decided they could no longer cover for Corzine without getting themselves in trouble. Corzine was the crook who kept repeating he didn‘t know where billions of dollars went. How could they, as master crooks, believe they were going to get away with such a fraud?
The housing recovery seems to have been a temporary affair. Preliminary data frames March as weak as last October. It looks like lower interest rates boasted sales. Those rates are up from 4.72% to 5.02%. Worse yet, Operation Twist is over. That is where the Fed sold the short end of the bond market and bought notes and bonds of 5, 7, 10 and 30 years. Even though the BIS, The Bank for International Settlements, said the program was a resounding success, it was not. American friends knew the Fed was a buyer, so they proceeded in selling long dated paper destroying what the Fed policy was trying to accomplish. Now we expect QE 3, which we have expected for sometime. Lest we not forget the slight easing of credit and the government’s FHA low down payment programs.
Read More @ GoldSeek.com

A Schoolhouse Rock Message for Obama and Fascist Gov’t: NO MORE KINGS

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