Monday, December 30, 2013

Mining rigs


Friday, December 27, 2013

Thursday, December 26, 2013

Crypto Market Cap Site

Here's an excellent site for anyone looking for a spot to view the market caps of the more legitimate alt coins and cryptocurrencies out there:

Monday, December 23, 2013

Charlie Lee and Litecoin Interview-Future Money Trends

Another great interview brought to you by Future Money Trends:

Sunday, December 22, 2013

Bitcoin and Edison--MUST, MUST Watch Video

This is all new to me! No surprise in the world of Bitcoin. The second half is "salesy" but maybe you'll be interested....?

Friday, December 20, 2013

Thursday, December 19, 2013

A.B. Dada/coinSMITHS and 7bucktees Review

Well I must say I am very disappointed. The cool and swanky LTC t-shirt I ordered and fully paid for has not arrived. I checked the site to see the status:

On the 17th I emailed the owner for a status update as my order has moved nowhere in nearly two weeks. He told me, "Hmmm I'll check from the shop today!" Never got back with me.

The next day, after thinking about the whole affair, I just wanted to cancel my order. Taking a payment from someone and then not fulfilling your end of the bargain is, well, stealing.

I emailed him again and told him just to cancel the order. His response, "no problem, i can take care of it by the end of the business day today for sure".

No apology, no offer to rush the order and save his reputation. Nothing.

So the end of the day passed yesterday and no refund. The status hasn't changed on the site and I'm in the dark. And that makes me angry.

You see running a business isn't easy. When you take an order for something you should fulfill that order as quickly as possible and communicate with your customers what is happening. If you fail or fall short of your customers expectations you humbly and apologetically take responsibility and make it right.

The nonchalant attitude of this vendor causes me to believe there is no business. And if there is, he should stick to flea markets and fairs because doing business on the internet and accepting BTC as payment while BTC is still trying to gain credibility isn't wise. Any guy with a blog can expose you.

 Next stop, the BTC and LTC forums. What a shame, truly. I hate doing stuff like this but  when you f&*k with my money, I get a little aggravated.

So what do you think I'll buy with my BTC next?

Monday, December 9, 2013

LTC Log Chart

So what's wrong???

Friday, December 6, 2013

BTC and Security

Well according to popular theory, BTC is simply too risky for the common person to use. Hackalackattacks are embellished upon in the MSM surely trying to influence people to stay away from it.


What is another very common software that people use every day, millions upon millions and millions of times? You use it Facebook and Youtube and many other places. That would be Adobe products....

Given the following message I just received from Adobe, perhaps we should ban the use of Adobe now???

Thursday, December 5, 2013

Greenspan, YOU are a DOUCHE!

Regarding BTC, Alan Greenspan recently said that "“It’s a bubble,” Greenspan, 87, said today in a Bloomberg Television interview from Washington. “It has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it. Maybe somebody else can.”

Now that is a peculiar stance is it not? Why do I say? Well, it was back in 2010 that Greenspan said that economists can’t see bubbles until they burst. Oh really? So now the dementia ridden Greenspan can see clearly whereas when he was a much younger and capable(?) man he could not.

He also went on to say the following: "Because unless we come to grips with the fundamental issue, which is the fact that we have promised in the ways of benefits for Medicare and social security, physically more than we have the assets to deliver with. The economy can only grow so far. Right now, the claims on the real economy – forget finance –are getting larger and larger. Social security, I might add, is money. You can always print money." 

So what exactly is it about social security money that has value? More like a Ponzi scheme isn't it? And people have the audacity to say BTC is a Ponzi? Please.

Doesn't that make you feel comfortable? A future obligation that cannot be paid, as he clearly states, is money. What is money? DEBT!! But we don't have the assets to Which is SS? WTF is he talking about?

Buying Things With BTC/LTC

So I just purchased a T-shirt from 7bucktees using my Coinbase account. SUPER easy.


I could have used Litecoin or Namecoin. I have no Namecoin and the BTC was more available to me. Besides, I feel there's more appreciation to be had yet in LTC so, BTC it is! Err, was!

BTC Sighting--Used Mostly For Drugs??

I wax and wane between frustration and amusement when it comes to people constantly rattling on about Silk Road and the "illicit" uses of crypto currencies like BTC and LTC. Yes it's true that some ne'er do gooders used and use and will use again, BTC for the purchase of illegal items.

But what isn't discussed is how much fiat currency, GOVERNMENT MONEY, is used on a daily basis for the purchase of drugs, guns, stolen goods, prostitution, assassinations, child porn, slavery, yes slavery (of all kinds) and government bribes of congressmen and members of Parliament.

Let's look at this in pictures (less reading, yay!).

"Look there, amongst all that cash, is that a BTC?"

And so it goes.

BTC Bubble(?) To Burst?

What will it take to truly deflate BTC? Let's look at a chart and see what devastating impact the Silk Road 2.0 heist and the latest Chinese announcement have had on BTC.

Perhaps BTC is more resilient than some would assume?

Tuesday, December 3, 2013

FinCEN----YOU Suck!

As I continue my quest in the BTC/LTC world here in the freest country on earth, the USSA, I am once again restricted because of my citizenship.

This time it's the BTC-E exchange. They will not accept wire transfers from US citizens. I mean this is getting embarrassing. Here you have college kids trading on exchanges all over the world and my hands are tied because FinCEN feels the need to protect a grown man from his own foibles at the cost of a potential success.

FinCEN, you are officially getting in the way of progress and innovation. You want to protect people from fraud and increase US tax revenues but what you are doing in the mean time is you are turning us into a bunch of sandbox rejects that are the laughing stock of the world.

Congratulations you FU*&ING morons!!! Get out of the way!

And don't forget this one:

Sunday, December 1, 2013

Taxes and Bitcon

I am going to save the government (USA) all kinds of trouble and fix the whole tax problem with crypto currenceis.

Eliminate the income tax and corporate tax and institute and national sales tax.

There. Problem solved.

Wednesday, November 27, 2013

Bitcoin Black Swan??

I lifted this from Krieger's site, artist/photographer unknown. I've dubbed it: BTS (BitSwan):

Update: artist found HERE

You can buy a shirt at that site. Pretty cool. Personally, not fond of yellow.


Tuesday, November 26, 2013

Description of Bitcoin (BTC) Value

This is one of the better descriptions of BTC I've heard. Start at 28:31.

Monday, November 25, 2013

Bitcoin or the Canadian Mint Chip?

 I've been doing some research on Litecoin(LTC) and Bitcoin(BTC) recently and it has been a whirlwind. For those of you who don't know I used to mine BTC. I sold all 230 or so for $6.00 or so.

Anyway I saw a video on my journey down "bizarro" path that particularly pissed me off and wanted to share that video with you and the comment that I posted subsequently.

"So who's got the total number of these chips that there will be?

Is it INFINITY again like last time and the time before that and the time before that?

What's to stop Bernanke and the likes of sending as many digital units as they wish? Oh wait! Bernanke has already sent TRILLIONS  to banks overseas. Someone just made the decision and off went Trillions!

No one makes a peep? And what problem exactly do people have with BTC and LTC? Someone tell me the difference...

Governments aren't going to get away with destroying the value of currency and then changing the face of currency and starting it all over again. People are getting away from that system as governments are being rendered incompetent with the TIDAL WAVE  of technology. Old power structures want things to stay exactly the same as they wear a golden ring around a fattened, puss filled finger full of rancor and decay. Waiting to explode."

I'll probably be writing more about this in the future.

Wednesday, November 20, 2013

USA-Freest Country On Earth (?)

Being an American citizen is not only becoming more and more restrictive but it is becoming embarrassing.

So if I want to use this service, I have to move out of the US, obtain citizenship and reapply. Congress and FinCEN are shackling US citizens intentionally or unintentionally. But it's happening.

Thursday, November 14, 2013

James Turk Silver Cup and Handle

This chart is simply stunning. Puts into perspective the calls for $5.00 silver. Can it happen?

Wednesday, November 13, 2013

Schiff on "Bitcoin is not Gold"

Why aren't people buying Bitcoin sending their money to Yes it's true gold cannot be spent digitally right now because of governmental restrictions but that is loosening up. Bitcoin is not mainstream yet and may never be because it has nothing BUT government regulation coming. Gold less. BTC more.

Schiff's gold bank offers visa cards tied to your gold account that you can use to spend just as a debit card. What's inconvenient about that? GoldMoney will probably offer that in the future in a different regulatory environment. They had a payment system once but cancelled it because no one was spending their metal.

If you attach BTC to silver and gold medallions as I've heard suggested you have a pretender to silver and gold. What would be the point? If you gave that to me I'd say great, now how do I know the weight of the silver? The fact that it's suggested intones it doesn't have the inherent value that everyone wants it to have.

I'm not knocking BTC, I used to mine. It just needs to be spoken about clearly. BTC is a private wealth transfer system outside the banking system that avoids all the fees and international restrictions that ALL other forms of money have. That's the doom, or shall I say, fight, of the future. It will be very interesting.

Saturday, November 9, 2013

Silver On the Mend?

This is a really fascinating chart put together by Morris Hubbartt.What a perfect flag pole formation. Look how the waterfall decline bounces right off the long term support in the $20 area. Technical indicators are showing a reversal of direction.

If we stay in the current channel and can punch through the $25 area, it looks like we will have a solid breakout of this 2 year correction starting in January. I know my heart could definitely use the reprieve.

Friday, November 1, 2013

Uranium and Oil

This is just an observation I found interesting. Maybe Marin at Casey Research can explain this relationship.

Will Uranium rebound similarly to oil?? You can see that uranium started to rebound and then Fukushima hit.

Thursday, October 31, 2013

Inside Job Part Deux?

If you've never seen the movie, Inside Job, you might not know who this man is:

R. Glenn Hubbard. Gotta wonder what he's doing there. Given that he is paid $250,000 per year to serve on the board of MetLife and given all the troubles with Obama (non)care, surely he's up to no good. Some think he's in the falsifying business.

Read this from Poets and Quants:

"Columbia Business School, which came in for a critical drubbing by the Academy Award-winning documentary “Inside Job,” has approved more stringent rules for disclosing potential conflicts of interest among faculty.

The documentary was especially discomforting to Columbia Business School Dean R. Glenn Hubbard and Columbia B-school professor Frederic S. Mishkin. Both granted the filmmaker Charles Ferguson on-air interviews that did not show either of them in the best light. Hubbard, who among other things is a MetLife director, came off as imperial and arrogant when asked about his consulting arrangements."

Watch this, it will make you feel all warm and fuzzy:

Wednesday, October 30, 2013

FED Meeting: No Taper

I give it two days tops if not this very day, the Fed will roll out the bobble heads to claim tapering is right around the corner. Nearly guaranteed.

And for the record, I'm calling for an increase in QE at the December meeting.

From Zerohedge:

Fed Does Not Taper, Keeps QE At $85 Billion

Tyler Durden's picture

Just as everyone expected, the Fed (absent its Press Conference) statement confirms they are data-driven, data is not good 'enough', therefore, no-taper:
There were no clear comments that markets are growing a little too comfortable with the Fed's free-money. Full Redline below...
Pre-FOMC: S&P Futs 1761, VIX 13.98%, 10Y 2.48%, Gold $1353, USD 79.46
Just before the statement hit, the market broke again! Gold started to rise, USD fell (led by EUR strength), VIX was smashed lower...
By way of interest, in the next 5 days, we will see an overload of Fed Speakers: Tracy, Bullard, Kocherlakota, Lacker, Powell, and Lacker again... It seems they have no need for a press conference.

Tuesday, October 29, 2013

WHO is Jeff Christian?

Read here and find out. It may be more than you bargained for.

Saturday, October 26, 2013

Paxman and Russell Brand

I normally don't comment on popular culture but it's no wonder the comments section have been disabled for this video as Paxman clearly demonstrates his ignorance. He criticizes Russell and claims he doesn't believe in democracy but I would ask Paxman where in the world "Democracy" is being practiced today.

After Russell soulfully and confidently informs Paxman of the certainty Paxman is out of refutations. He just sits there and listens in amazement.

If you don't listen to this all the way through you're really missing something.

I like about the last 30 seconds the most.

Thursday, October 24, 2013

Apogee Silver Vs Tinka Resources

I like both of these companies right now. There are several things that may come together for Apogee that make it an outstanding value. They are very near to production and have a low CAPEX cost to get there. There's also plenty of resource growth potential on their properties.

Tinka does have a lower share structure but will be diluting over the years to finance their project. There resource should grow at the same time so there's still plenty of upside potential.

Make sure you check out the Interesting Chart below to view timelines of explorers/pre-production miners.

Wednesday, October 23, 2013

Geologix Explorations Provides Corp Update!

Very positive information from Geologix on their way to production:

Geologix Provides Operational Update

Oct 23, 2013 06:31:28 (ET)

VANCOUVER, BRITISH COLUMBIA, Oct 23, 2013 (Marketwired via COMTEX) -- Geologix Explorations Inc. (otcqx:GIXEF)(frankfurt:GF6)(berlin:GF6)(stut:GF6)(mun:GF6) ("Geologix," or the "Company") is pleased to provide an update regarding both its operational progress and its preparations for arranging the financing required to commence operations at the Company's Tepal Project in Mexico.

In August of 2013, Geologix engaged Auramet Metal Trading Inc. ("Auramet") as a financial advisor. Auramet, a metal trader, possesses extensive experience in both syndicated debt financing and negotiating agreements with precious metal refiners, royalty and streaming companies, and smelters.

"Auramet's experience is an ideal match for Tepal's unique production profile, which is 50% precious metals and 50% copper," stated Dunham Craig, Geologix's President and Chief Executive Officer. "Tepal's precious metal and copper contents are designed for production in dore and concentrate, respectively. Geologix's previously completed technical work has proven that this concentrate is exceptionally clean, metallurgically favorable for cost effective smelting, and of a desirable grade - three particularly appealing qualities for smelters. The concentrate quality and the significant precious metal production are Geologix's best assets when arranging project financing from these non-bank sources, and we intend to leverage both accordingly. Auramet's background in both precious and base metals has already proven an asset in preparation for this financing."

In September of 2013, Geologix processed representative material from Tepal's three pits through a pilot plant at G&T Laboratories located in Kamloops, British Columbia. Processing this material will facilitate concentrate marketing by creating sufficient concentrate for various off takers' test work and analysis. Data derived from the pilot plant will also be used for final Feasibility Study environmental considerations and equipment sizing.

"We are very pleased with the results we received from the pilot plant," continued Mr. Craig. "The concentrate data met our Prefeasibility Study ("PFS") quality expectations, and our PFS equipment specifications were confirmed. Also, the tailing results were exceptionally clean, which will result in well contained operational and environmental costs."

Also in September of 2013, Geologix submitted Tepal's environmental permit application and risk assessment to SEMARNAT, the Mexican regulatory agency responsible for mine permitting. Information for this submission was extracted from both Tepal's PFS and the environmental baseline work the Company has conducted over the past three years. As Geologix has not yet completed Tepal's final Feasibility Study, management expects that SEMARNAT will request additional detailed information prior to issuing approval. Much of this information will be supplied as the Company progresses towards the final Feasibility Study, and the Company anticipates receiving all necessary approvals in time for Tepal's financing and construction.

"We are satisfied with our progress in advancing Tepal towards development," concluded Mr. Craig. "2013 has proven to be a challenging year for mine development and exploration, and unpredictable capital markets have forced Geologix to be particularly conservative in exploring options for Tepal's financing. However, we believe that leveraging both the quality of our base metals concentrate and our meaningful precious metals production potential provides our Company with a route towards not only financing Tepal's construction and funding further development costs, but also minimizing share dilution. Due to the high technical quality of Tepal's work to date, we are currently in advanced negotiations to pursue this objective.

"While we believe these advanced negotiations will result in continuing to advance Tepal towards development, we also believe it is prudent to revisit our original timelines for the project. We now forecast initiating construction by late 2014 or early 2015. However, this forecast is conservative, and we will endeavor to move more expediently should the opportunity to do so present itself."
On behalf of the Board of Directors,

Dunham Craig, President & CEO
About Geologix

Geologix Explorations Inc. is a mineral exploration and development company focused on acquiring, exploring, and developing mineral resource opportunities with the potential to host profitable mining operations. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacan state, Mexico. In March 2013, the Company announced a Prefeasibility Study for the Project that indicated an 11.5 year mine life with payable production of 1.12 M oz. gold and 503 M lbs., resulting in a post-tax NPV of $421 million at a 5% discount rate. The positive results of this study have led the Company to continue to work towards both completing a Feasibility Study for the Project and arranging the necessary financing to advance the Project to production.

This press release contains statements which constitute forward-looking information, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR at . Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Geologix Explorations Inc.
Investor Relations

SOURCE: Geologix Explorations Inc.

Saturday, October 19, 2013

Should You Buy Gold?

Ponder this chart for a few and you'll have your answer:

(edit: when I say gold of course I also mean silver. Silver is better value right now.)

Friday, October 18, 2013

Intersting Chart

This is an interesting chart to reference (Brent Cook)

Monday, October 14, 2013

Walmart and EBT Failure; Piece of the Future For You

Food-stamp frenzy backfires / By Alexandra Klausner / 12:39 EST, 14 October 2013

WalMart is on the hook for up to hundreds of thousands of dollars of groceries bought by food stamp recipients after a computer glitch gave them unlimited funds on their government-issued credit cards.
In a spending spree described by local officials as 'worse than Black Friday,' dozens of welfare families with Electronic Benefits Transfer (EBT) cards picked bare the shelves at the stores in Springhill and Mansfield, Louisiana, in just a few hours on Saturday - carrying away up to ten shopping carts of meat and other groceries.

‘We did make the decision to continue to accept EBT cards during the outage so that they could get food for their families,’  Walmart representative Kayla Whaling told KSLA.

Police officers were called in for crowd control and safety monitoring.

‘It was definitely worse than Black Friday. It was worse than anything we had ever seen in this town.'

There was no food left on any of the shelves, and no meat left. The grocery part of Walmart was totally decimated,’ said Springhill Police Chief Will Lyn.

‘I saw people drag out 8 to 10 grocery carts,’ the officer told ABC news.

From 7 p.m. to 9 p.m., a frenzy of shoppers filled their carts to the brim with as much food as they could get their hands on. When the cards came back online at 9 p.m., people literally abandoned their carts full of food in the middle of the Walmart and left.


Dozens! Dozens of families! Folks, that's a lootin'.

Now how about a future scenario if/when an outage happens again causing a similar situation where tens of thousands of people are involved? The only difference is that the next time, in the future, it's due to a national emergency as a result of a meteor strike or a dollar failure.

The next time EVERYONE knows that extreme danger is imminent and that law and order were more like luck and pray; it's game on.

Who's going to stand there and pay? 

How about this one. A guy standing in line watches as the person in front of him charges up as much as she can in two carts because that's the limit. Not the limit on the card because that's infinite, I mean the limit placed by the store on the number of carts allowed per person.

So this guy walks up to the register with his GINORMOUSLY stuffed cart, the cashier rings him up and the register reads back, "denied!" The cashier explains to him that it only says, "insufficient funds." He says, "What do you mean "insufficient funds", as he pulls out his i Phone 93 to check his account balance. "That woman just walked through with two heaping carts! And that's only because of "store policy!"

"I'm sorry sir", she says sympathetically. "I can't approve more than the card will read."

He says, "My account says I have two-hundred and fifty dollars." 

"I can approve you for that much."

"I have to buy gas", he exclaims!

"Ohhhhhhhhh", he starts thinking to himself as a broodenin' takes him over and starts pulling stuff off of his cart and putting it in a cart next to the cashier. He gets it down a little below the amount in his account, cashes out and storms out of the store.

A few minutes later the cashier looks over as she's hurriedly packing a bag and sees that same man walking out the door with a heaping cart full of groceries, right past and behind all the cash registers, the "in way", and out the door. As he passes by, with his free hand he grabs the previously discarded goods in the cart next to the cashier and walks out the same way he came in. She doesn't bother, as the panic ensues.

Beware these are not trial runs and we are all but guinea pigs.

Friday, October 11, 2013

Bart Chilton's Friends At It Again!

It appears I was justified in my email to Bart Chilton after all......

“Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: 'Account overdrawn.'”  - Ayn Rand

"Watch for the day when it bounces, marked: 'Account overdrawn.'”

Are you prepared for this day? Do you believe it's coming?

Tuesday, October 8, 2013

Bitcoin vs FBI (For the Ages)

This may go down as one of the most amusing articles of our current times....follow the link for the full story.

Bitcoin 1 - 0 FBI

Tyler Durden's picture

Submitted by Pater Tenebrarum via Acting-Man blog,

The Dread Pirate's Cash Stash is Still Safe

As a quick addendum to our recent post on the Silk Road bust and what it means for bitcoin (surprisingly little), here is something that strikes us as truly funny. Apparently the FBI finds itself unable to confiscate the Dread Pirate's stash of bitcoins:
“Closing down the Silk Road and arresting its alleged operator has left the FBI in uncharted territory. After shuttering the hidden site, law enforcement went to work confiscating the money and materials belonging to supposed drug kingpin Ross Ulbricht, but this usually routine procedure is proving especially troublesome in this case. The cache of more than 600,000 bitcoins in Ulbricht’s personal fortune are still inaccessible to the FBI. The only way to move Bitcoins out of a private wallet is to have the corresponding private key to authorize the transaction. The FBI has been unable to get through the encryption protecting Ulbricht’s wallet, leaving all those Bitcoins — amounting to roughly $80 million at current rates — out of reach. Based on publicly available data, this is about 5% of all Bitcoins in existence right now.

Funds held by users of the site, however, were not so well-protected. Before completing transactions on the Silk Road, users would load Bitcoins into an escrow account on the site. The agreed upon coins would only be transferred to the seller’s private wallet once the buyer had verified delivery of the goods. When the feds took over the Silk Road, there were over 26,000 Bitcoins in user accounts that were relatively easy to snatch up.

The FBI has transferred all 26,000-plus seized Bitcoins to its own personal wallet, but because Bitcoin transactions are tracked publicly, it didn’t take the internet long to find the FBI’s wallet address. Users have taken to transferring tiny fractions of a Bitcoin to the FBI with public comments attached decrying the war on drugs and the arrest of Ulbricht. Users have even helpfully tagged the wallet address as “Silkroad Seized Coins.” You can check out the comments as they come in by watching the blockchain for the FBI’s wallet.”

Thursday, September 19, 2013

Purpose of this Blog

Other than just simply being a journal of the times of my life, I'd like to think my blog may offer something similar to what this quote encapsulates. Even though my posting has been sporadic and anemic due to being suppressed by dark energies, may you too find inspiration in the nooks and crannies of the world.

“Each time a man stands up for an ideal, or acts to improve the lot of others, or strikes out against injustice, he sends forth a tiny ripple of hope, and those ripples build a current which can sweep down the mightiest walls of oppression and resistance.”

Robert F. Kennedy

Pulled from Jesse's site.

Thursday, September 12, 2013

Chilean View of the Dollar

I asked a local about it and they told me, “everyone knows the dollar is going to blow up. Your banking system is crazy”.

Wednesday, September 11, 2013

Fascinating Interview

I just watched a fascinating interview here and want to post it here so others can watch it as well. Towards the end of the interview the specter of confiscation reared its ugly head once again. I responded to that on Greg Hunters' site and have posted my response below.

 Here's my response:

"Hi Greg,

Great interview and thanks for having on Mike Maloney!

I’d like to just put my .02 cents in on the confiscation issue. As you and Mike correctly fleshed out, gold was NEVER confiscated. It was nationalized and holders were subsequently paid for their gold at the fixed rate. Much of the talk of confiscation today are by numismatic coin dealers trying to sell coins with high premiums.

The uranium story after WWII gives us some insight into how the government may react here. In 1946 the Atomic Energy Commission (AEC) guaranteed a minimum price for uranium to increase the domestic uranium supply. This supported the mining endeavors at the time and brought a lot of uranium to the market.

The same thing could be done today. Governments would be far better off to promote a fixed (or better, free market) price of gold that would guarantee profits and cause much more gold to come to market and allow them to either grow the money supply or pay debt down. Many instances of government nationalizing mines have ended up in complete disaster. I just don’t believe this would be attempted. Sure they may raise royalties and taxes but I assure you that with the returns you will have you will still be compensated as an investor.

Another case here is instructive though some may not approve. Look at Venezuela. Chavez had the wisdom to NOT nationalize their gold minds but mandated that the gov get first dibs on all gold mined and they would pay market price. Brilliant. China (and Russia?) are currently doing the same thing.

Consider the consequences of nationalizing mines and gold and silver in America today. It would cause permanently damaged psyches in the minds of investors when retail investor participation rates are already in decline. Would the gov further exacerbate a dwindling (non-existent?) support level for government? Do they want to completely erode ANY trust left in the system? Very dangerous long term implications involved there.

And lastly, as Jim Sinclair points out, when gold was nationalized in 1933 we were on a gold standard. We are not now. QE is effectively taking the place of that prior insidious process of deception and trickery. Think about it, 80 years later and people are STILL distrustful of the gov and what they did back in 1933!!!

That’s all. Thanks again for all yo do!"

Tuesday, September 10, 2013

Quote of the Day

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."

Abraham Lincoln

Tuesday, June 4, 2013

Wednesday, May 29, 2013

Open Letter to the Volcker Alliance

Recently there was an article on Bloomberg regarding the Volcker Alliance. Here's a short piece and then my immediate email to them.

“Trust in American government has been declining for decades and similar attitudes are evident in other democracies,” he said. “Trust rests on confidence, and too often government, at all levels, in the eyes of its citizens, has been unable to respond effectively to the challenges of the day.”

Those challenges, he said, include the recent controversies involving the Internal Revenue Service and the Justice Department, which “underscore the relevance that government’s execution of its policies has on the lives of its citizens.”

My email:

"To whom it may concern:

I’m writing you in response to an article recently posted on Bloomberg regarding the Volcker Alliance’s efforts to investigate the lack of trust in our government and other democracies around the world.

I’m going to give you one big hint to start this all off. Mr. Volcker states in that article: “Trust in American government has been declining for decades and similar attitudes are evident in other democracies,”

If you all can actually look into this without bias or intellectual hubris and arrogance or making your determinations beforehand you will find a couple of things that are making people ABSOLUTLEY FURIOUS throughout the world.

1)      Fractional reserve banking.
2)      An impossible tax code run by the IR-SS. What’s coming next are uniforms and salutes to the supreme leader.
3)      Crony capitalism. Fraud on an epic scale. Martha Stewart goes to jail for insider trading and now Jeff Skilling is going to be let out of jail early? HSBC is a criminal organization that is running money for drug lords and Eric Holder says we can’t even arrest a teller!!! Get a clue! Eric Holder will be absolved from his recent perjury charges as well. Watch. That’s the trust people have in this current “system”. Lying, fraud, cheating, embezzlement, racketeering, coercion, collusion price fixing, etc., all go unpunished while citizens of the world witness this and you are going to turn this into an academic endeavor many, many years too late. I’m sure I’ll be dead before I see reform. Either that or collapse.

Here’s another lead for you, a quote from Senator Dick Durbin: “And the banks… they frankly own the place”. That inspires confidence. And we all know it’s true. Corporations can give unlimited amounts of money as an individual but cannot be prosecuted thus? Outrageous!

The real problem is that the “intellectuals” and political leaders of the world still have feudalistic thinking and believe that the common man doesn’t understand how the system works and all of their efforts are top down and we just have to sit around and wait for what’s coming. And we believe that what’s coming will serve the current status quo first. But in all your research don’t forget to look into things like the French Revolution when the common man was left out of the equation.

But perhaps your fact finding mission isn’t geared towards your stated purpose. Perhaps you are simply looking for ways that the world’s governments can manage the populace of the world given the current infrastructure and institutions….more of the same with a different veneer.

If that’s the case, I say good luck to you. You will fail.


One very frustrated person"

Tuesday, May 21, 2013

Strong Suggestions for the Next Six Months

Look at these two pieces of data and add it to the rest of your data depository:

From ZeroHedge

In general when equity prices are rising and credit spreads are tightening, the ratio of gold-to-silver prices falls as 'fear' ebbs away and confidence in a real economy returns as exemplified by the rise of risk assets. Twice before we have seen the anti-correlation of stocks and gold/silver flip to a highly correlated regime, and as Bloomberg's Chart of the Day notes, each time it suggested "stocks were due to snap". It seems a concerted push above and a 50x ratio (for gold-to-silver) tends to exhibit notably risk-off behavior. Currently, the S&P 500 and Gold-to-Silver ratio have been highly correlated since this last rally began in stocks and as HSBC's Charles Morris notes, this suggests a 'snap' in risk assets within six months.

 And this from King World News regarding Soros calls on the GDX:

So he’s risking his money in a relatively short period of time.  The disclosure in the filing does not give you the duration of the call option, but it should logically be listed as a warrant if it was more than a year.  And having structured these kinds of products back in my days on Wall Street, and sold them to clients, typically options of this type have anywhere from a 30 day to a six month duration.

Dow or Gold? Two Charts

For those Dow cheerleaders out there. The Dow can only go up so long.....

Thursday, April 18, 2013

Yearly Silver:Gold Production

Now this is interesting. The silver/gold ratio has been declining in real production terms but has been rising in the paper markets (where everything is real) over time. Peculiar eh?

Bart's Response To Me

Well I guess I touched a nerve with Bart. I really didn't think he'd get upset about the lining of the pockets thing but hey, some people are sensitive to the things that cause them the most guilt. It must be like eating the Bread of Shame.

What I thought would upset him was the eunuch in a brothel statement. But the CFTC has been ball(less) for so long this didn't seem to bother him. Maybe he didn't even get that far.......

Anyway here's his response:

"I was reading your email and thinking about my thoughtful response until I got to the lining my pocket bs. I could be making  a hell of a lot more money working in the private sector, but I have declined to do so.   I’ve spent my career in public service doing the best I can. I accept it isn’t good enough for some, but I certainly don’t have to respond to those people.  Please don’t email again.

I say whatever, Bart. Most people don't take gov jobs for the salary. They take it for the benefits and the benefits are many. His medical benefits will be worth more than most people make in a year. When they do  a short stint in the gov they the move on to some bank or investment firm and make 6 to 7 figures utilizing the insider knowledge and contacts they made previously for their and their firm's benefit.

Seriously, how can  Bart fault me here? People are frustrated and the yawning gap between reality and surreality widens as we witness fraud after fraud after fraud. Crony capitalism is bordering on fascism and the CFTC seems to be just an observer.

Here's something Bart will have to live with: someday many of the frauds that are carrying on today will be exposed. As Warren Buffet says (and I largely think Warren is a tool), "when the tide goes out, you see who's been swimming naked." When those frauds are exposed we will see just how ineffective the regulatory bodies are in this country and it will SHOCK most people. And then Bart's illustrious public career will be tainted with incompetency and could be said to have been a complete waste of time other than the gain he made personally.

Truly though I wasn't trying to offend Bart. I think for the most part he's sincere and when I told him he should resign I meant it. Someone who works hard and cares deserves respect and dignity. Bart is receiving neither respect nor dignity doing what he is doing. Perhaps it will be revealed one day that the CFTC is the glue holding the futures markets together but I doubt it. Since 1974 they have brought the most trivial of charges against firms and individuals with no resultant convictions.

So having been blackballed from Bart's email list after the first time I emailed him I say good luck, Bart. You're going to need it.