Beiträge von bullionbulls

Don’t Blame The Millionaires

One of the principal accomplishments (already) of the “Occupy Wall Street” protest movement is that is has correctly focused our attention on the real enemy: “the top-1%”. It is very important that readers remain focused upon that point, because (as usual) the media propaganda machine is not only seeking to twist the facts, but to distort the actual issue itself.

There are two ways in which the media has been distorting this problem. One of these methods is extremely obvious while the other is much more subtle. Beginning with the obvious, we see the media attempting to twist the backlash against the top-1% into a much more muted initiative of “taxing millionaires”.

To understand how this dilutes and undermines the process of reversing the most-egregious wealth inequality in all of history, we first must understand the nature of this inequality. In an interview on the BBC news program “Hard Talk”, a Wall Street insider in the credit default swap market reveals there is more than $200 trillion in debt saturating the global economy.

Let’s put this into perspective. Even with interest rates artificially suppressed for much of the world (most notably the U.S.), annual interest on this debt is somewhere in excess of $10 trillion per year. Given a global economy with a total GDP of close to $60 trillion, this works out to more than one out of every six dollars of global economic activity wasted in paying interest to the bond parasites. It is debt-slavery.

This is such a crippling debt-load that if the global economy was one, single economic entity it would be on the verge of declaring bankruptcy. It has caused some, including Australian economist Steve Keen to call for a “debt jubilee”. Readers not familiar with that term may have less trouble understanding my own previous label for that solution: a “bond-burning party”...

Full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

More ‘Black Friday’ B.S.

U.S. Thanksgiving has become a highly ritualized holiday with a large segment of the American population. Eat turkey. Watch football. Go shopping. And then listen to the media lie about the shopping the next day.

In this respect, Thanksgiving 2011 was a carbon-copy of the last several years. Turkeys have again (briefly) become an “endangered species” in the U.S., and (so-called) “Black Friday” was another crushing economic disappointment. Those who have only heard the hype from the mainstream media may be somewhat confused by this prognosis, so let’s dive into the data.

“Black Friday sales rise 6.6% to record,” gushed Bloomberg. Sounds impressive! Or does it? It seems those tricky little scamps at Bloomberg left out one thing in their calculation: the word “inflation”. Literally left it out. Bloomberg wrote an entire article comparing last year’s shopping with this year’s shopping without even once mentioning the word “inflation”...

...U.S. inflation has been hovering close to 10% all this year. Therefore, to engage in a meaningful comparison of Black Friday 2011 with Black Friday 2010, we simply need to subtract the (approximate) 10% from 6.6%.

We immediately see that the large, positive number which Bloomberg was trumpeting has now turned into a negative number. What does that mean? Simple. It means Americans bought fewer goods than a year ago rather than more goods. By converting the dollar-figures into constant numbers, when we observe that Americans spent more than 3% less than last year (in “real dollars”), this directly translates into more than 3% less goods purchased.

It was at this point that Bloomberg went from merely dishonest to comedic:

“…shoppers paid more for goods and unleashed some pent-up demand.”

Well they certainly paid more for goods, but precisely how does buying 3% less goods “release pent-up demand”, let alone reduce bloated inventories?

When Bloomberg chose to deliberately omit an inflation calculation (and even a single mention of the word “inflation”), it was not “reporting news”. It was distributing propaganda. It cost Americans 6.6% more to buy 3% less goods. This is disastrous economic news, especially when we note that the quantity of goods being purchased by Americans in their holiday shopping has been falling every year since the Crash of ’08, yet Bloomberg spun this into more of its inane “don’t worry, be happy” business news. For it to refer to this data as some “record increase” in Black Friday sales was simply and intentionally dishonest...

Full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

The Battle of the Euro Bond

...The principal here is very simple. If European nations merge their debt markets in this manner, then what Wall Street has done first to Greece, and then Ireland, Portugal, Spain, Italy, and now France; will be done to all Euro nations simultaneously – including Germany. For those who still don’t understand this process, the mechanics are equally simple.

Through fraudulently manipulating the prices of credit default swaps – ‘pretend insurance’ which is fraudulent even on its surface – the Wall Street terrorists can manipulate a nation’s interest rates up (or down) to whatever number they choose. Why do I insist on calling this fraud “economic terrorism”? It is all plain arithmetic.

The wealthiest nation on Earth could have a “national debt”of $1, however at an interest rate of “infinity” that nation would be instantly bankrupted. At one time, critics of my position might have been able to argue that this was hyperbole and/or hypothetical. They can do so no longer – not when the proverbial “smoking gun” is staring us in the face.

Back at the very beginning of the made-in-Wall-Street “Euro debt crisis”, I wrote a commentary detailing how the economic fundamentals of the U.S. were much worse than those of Greece. Since that time, Greek interest rates have been pushed-up to roughly fifty times the level of U.S. interest rates – despite the more rampant insolvency of the U.S.’s economy.

With Greece’s interest rates having been pushed above 100% by these terrorists, it is not mathematically possible for any economic policy to restore solvency to Greece. To illustrate that point to people on this side of the Atlantic, we need only look at what would happen if the more-insolvent U.S. had the same interest rates as Greece.

Interest payments on the U.S. national debt would be more than four times total government revenue. What would that mean in practical terms? Even if the U.S. government eliminated 100% of every single government program/department (including the entire U.S. military), tax revenues would have to be quadrupled – just to pay the annual interest on the debt, with the debt itself never being repaid. That is what the Wall Street psychopaths have done to Greece, and it obviously cannot be described as anything other than “economic terrorism” (and debt-slavery). And they are in the process of doing this to every other nation in Europe...

Full commentary: http://www.bullionbullscanada.…nal-commentary&Itemid=133

Deutsche:

The Battle of the Euro-Anleihe

...einmal ein "Euro-Anleihe" in irgendeiner Form erstellt wird, wird das Schicksal Europas besiegelt. Denken Sie an die Entwicklung dieser "Schuldenkrise". Jeder der so genannten (seriell) Bail-outs, die unternommen worden ist, als eine "Endlösung" vorgestellt worden. Und jedes Mal, bevor die Tinte war noch auf dem neuesten Deal getrocknet wurden die Wall Street Terroristen bereits bei der Arbeit fahren Zinsen höher - zu was auch immer Nennpegel war nötig, um wieder machen die Scheibe (n) ihres Terrorismus hoffnungslos insolvent, und somit brauchen eine neue bail-out...

volle kommentar: http://translate.google.com/tr…commentary%26Itemid%3D133

I don't know if many/most Europeans even know what "Tang" actually is. If so, then hopefully this will be seen as a very good means of EXPOSING the bankers' money-printing scam...

Gold, Orange Juice, and ‘Tang’

One of the most difficult tasks for those of us in the precious metals sector is to explain how and why our paper “fiat currencies” are worthless (or nearly so) to the majority of our populations. The primary reason for this difficulty is the relentless propaganda campaign to attempt to delude us into believing that this fiat-paper has value, or at least to confuse the issue to the point where ordinary people don’t know what to believe.

I have tried various approaches to pierce this veil of propaganda. I have pointed out how not only currency but any “good” which can be created in infinite quantities and at zero cost is by definition worthless. I then noted that U.S. dollars are currently being created in near-infinite amounts – and at zero cost (i.e. 0% interest rates).

Separately, I observed that the U.S. dollar is nothing less than a “leaky bucket” when it comes to storing wealth. In the less-than-100 years since the Federal Reserve was created to “protect” the U.S. dollar it has lost 98% of its value, with its current rate of depreciation greater than at any other time in history. I have explained that because our fiat currencies are worthless (or nearly so), that as a matter of simple arithmetic this directly implies that all bonds are nearly worthless as well – since they are denominated in this worthless paper.

Often, however, the way to convey understanding with respect to an elusive concept is to place it in the context of an analogy. This is especially helpful when attempting to combat the brainwashing-effect of serial propaganda, since the analogy will be outside of that web of propaganda. Thus I will attempt to illustrate the stark differences between gold (and silver) and banker-paper, through comparing orange juice to “Tang” – the orange-flavored beverage.

It is an easy and obvious comparison. On the one hand we have orange juice: a natural substance which is aesthetically pleasing, is “good for us”, and because it is something which occurs in nature, it is only available in finite quantities. Proof of its scarcity is seen by simply looking at its steadily rising price. Here in Canada; orange juice prices have risen by over 30% just in the last year (sound familiar?)...

Full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

For any who are interested, I've also done a video clip on this precise subejct as well...

http://www.youtube.com/watch?v…I&feature=player_embedded

Bankster-Created Commodity Crisis Intensifies

...As I demonstrated unequivocally in my previous silver commentary, suppressing a commodity market (generally through serial “shorting”) always destroys that market. The hypothetical example I used then was chocolate bars, however we can now apply that example to the real world – and the total, global food supply.

We can look at almost every major commodity market on the planet and see precisely the same thing: total global stockpiles are near multi-decade lows and/or all-time lows. This has absolutely nothing to do with food-production capacity.

Obviously with the unemployment epidemic in the West there is no shortage of labour. We are also constantly hearing about farmers who are “unable” to maximize production (generally due to some form of price distortion in markets). Meanwhile, we regularly hear about Western and North American farmers literally throwing away their food because prices are too low for them to break even. Maximizing this outrage, fully ¼ of the annual global harvest is wasted by spoilage – shipping it all over the globe. Clearly if these food products were fairly/accurately priced, producers would not allow ¼ of every harvest to be squandered in such a pointless, extravagant manner.

Just as I demonstrated hypothetically with chocolate bars, and in the “real world” with silver; we can see the relentless shorting and price-suppression of commodities by bankers (to hide their stealing-by-currency-dilution) destroying the entire global food supply. The bankers will not be satisfied until billions are starving.

The most recent (and most terrifying) example of these crimes against humanity is in the massively important global cooking oils market. Affluent Westerners may not fully appreciate the tremendous importance of this market (and global stockpiles of those oils); however it is arguably the most important niche in global food production...

Full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

Save Taxes With Gold And Silver Money

Regular readers are familiar with my recommendations regarding acquiring and holding gold and/or silver bullion: we are acquiring “monetary insurance” today which could easily become our “money” tomorrow. I have also written about the alleged “capital gains” which are supposedly triggered when we spend our bullion.

My advice has been for people to specifically acquire gold and silver “legal tender” coins, since these coins are already officially “money” in our societies. The reason I have made this suggestion is simple: there is no precedent within our taxation system for assessing a “capital gain” when an individual converts one (“legal tender”) currency into another – for the express purpose of “spending” the new currency.

Indeed, I pointed out that people do precisely this millions of times every day around the world, when they travel to a jurisdiction with a different currency, and thus acquire some of that new currency to spend. Usually this is done during “vacations”, but it also occurs in the course of normal business travel with great regularity as well.

As a result, people who acquire gold or silver currency with their paper currency should expect no adverse tax consequences of any kind when they choose to spend that currency in the future. The absolute justice in such a legal position can be further reinforced by noting that under no circumstances would our governments ever allow us to claim a “capital loss” in the reverse scenario.

For example, suppose I am currently holding gold or silver legal tender currency. I foolishly believe the propaganda I read in the newspaper that gold and silver are overvalued, and so I convert my gold and silver currency to paper currency. If gold and silver prices subsequently rise (i.e. the price of my paper currency falls), I would never be allowed to claim a capital loss on that currency-swap when I spend my paper money (and thus lock-in that loss)...

Full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

U.S. Savings-Rate Drop Shrieks Disaster

By now, most readers should be familiar with the way the mainstream propaganda machine “spins” the news. When the U.S. savings rate experienced a short, sharp jump higher in response to the Crash of ‘08, media talking-heads saluted a “new generation of thrifty Americans”, whose savings would finance future economic expansion.

Now, with that savings rate having suddenly plummeted again, the propagandists are crowing about how this means “more consumer spending”. What’s truly remarkable about these media pundits is that they will argue either side of the same issue – and yet manage to be wrong both times.

With the simplistic, sound-bite analysis we get from the mainstream media, one of the most elementary aspects of statistics is never explained to readers: they are aggregate numbers. In other words, if we were to say that the U.S. had a savings rate of 2%, this would not mean that everyone was saving 2% of their earnings. Rather, once we averaged-out the different savings (or spending) rates of each individual American they would average out to 2%.

By applying existing economic parameters to these numbers, however, we can engage in a more sophisticated level of analysis. If we flash back to the peak of the U.S. housing bubble, the U.S. economy had managed the dubious achievement of a “negative” savings rate – i.e. the U.S. population as a whole was saving less than zero.

This did not mean that all Americans were depleting their savings. Those at the very top rarely (if ever) cease their relentless hoarding. During the peak of the U.S. housing bubble they were raking-in $trillions – and squirreling it all away. Despite that massive savings, the rest of the population was in the most reckless spending-binge in history, dragging the aggregate number below zero...

Full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

No one has done more with their research to expose the danger of silver confiscation today than Charles Savoie, in his vast chronology "The Silver Stealers". Let me warn people that this is brutal, tedious reading. However, you will never learn MORE about what been done to the silver market than by going through Savoie's research.

Interview with Charles Savoie

In the relatively short number of years in which I have been researching and writing about the silver market, I have benefited greatly from the work (and the wisdom) of a number of “pioneers” to the precious metals sector. With respect to silver in particular, the two people who have done the most to educate me, and shape my views on the silver market are Ted Butler and Charles Savoie. Thus it is with great pleasure that I present this written interview with Charles Savoie.

Charles is a private researcher/historian who has invested a considerable amount of time and effort in compiling a vast body of research which he has titled “The Silver Stealers”. His chronology originally dealt primarily with events taking place in the 19th and early-20th century. However, he has since updated and expanded upon that initial chronology to include further events (and the individuals behind those events) right up to the present day. He links a relatively small but extremely powerful group of individuals (and often their descendants) together through two common “threads”: their propensity for actions which were extremely detrimental to the silver market and/or the holders of silver; and their membership in a little-known organization which they have called “The Pilgrims”.


1) What was it which first drew your attention to this particular era and the events which were taking place at that time? Was it your interest in the silver market, or is it your studies of this period which led you to become so bullish toward the silver market?

I did a multi-part series called “Britain Against Silver,” tallying over 324,000 words, which ran at Silver Investor site, beginning in August 2007. I researched England’s activities globally against silver, using as reference resources The Times, London; the New York Times; Commercial & Financial Chronicle; Mining Congress Journal; China Weekly Review and many others...

Full commentary: http://www.bullionbullscanada.…ver-commentary&Itemid=130

I urge the members here to familiarize themselves with the basic concepts (and facts) about the silver market. "Confiscation" is coming again, definitely for silver - and possibly for gold as well.

It is important for people to understand how media propaganda TODAY is virtually identical to what was being written in the U.S. media before the U.S. government confiscated silver in 1934...

Silver: Shorting Consumes, Investing Conserves

It is a very simple proposition to explain how “shorting” is an activity which relentlessly, inevitably destroys markets, while investing is a benign activity which inevitably “heals” markets which are out of balance. What makes it difficult to understand this concept is years of media brainwashing branding investors as “speculators” and/or “hoarders”.

To pierce this brainwashing, I will explain these simple principles of arithmetic using an example to which we can all relate. Let’s assume that instead of JP Morgan hating silver that it hated chocolate bars instead. And so to destroy that market (and deprive the world of chocolate bars) JP Morgan began to ruthlessly “short” chocolate bars.

For the sake of argument, let’s assume that this ruthless shorting drove the price of chocolate bars to 10 cents apiece (since shorting always depresses prices). What would happen then? The immediate, obvious consequence is that chocolate bars would be cleaned-out on all the shelves of all the stores around the world, as people stampeded to take advantage of this incredible “sale” on chocolate bars.

However, the full consequences of this shorting are far, far worse. Virtually no chocolate bar-makers on the planet could manage to “break even” selling chocolate bars at 10 cents apiece, as the cost of their materials alone would greatly exceed that price. Most of the world’s chocolate bar-makers would be bankrupted, creating a much, much more severe chocolate bar shortage.

Most importantly, the chocolate bar “crisis” would never end unless/until prices rose substantially. At that artificially low price, it is a mathematical impossibility for there to ever be sufficient supply to meet demand. Enter the investor...

Full commentary: http://www.bullionbullscanada.…ver-commentary&Itemid=130

Zitat von buddhalf

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Hi Bullionbulls,

thanks for your continued posting of good articles and opinions.

I have attendet the Precious Metals Fair in Munich. I think we all agree that the solution for the individual is so simple (to buy bullion) and nonetheless so few from the population do it .
At the same time , by doing this, this would be a clear vote of misconfidence toward the existing monetary regime and would force the powers that be toward a more honest system.
Well I keep on talking about this topic in my circles of friends and once in a while , after some time, it bears fruit, as a friend of mine bought 3 kg of silver for the first time on saturday.
Well, a start !

Translation: it might have improved at google, but it is still not easy to underand....let alone nice to read

All the best,
b. from munich

Alles anzeigen

Danke Buddhalf!

I think part of the problem with the Google translation is my writing style. Perhaps what I will do is plan in advance which commentaries I would like to translate - and then use "friendly" language for this computer program.

With regard to our crumbling monetary system, the peoples of Europe have been betrayed in a treasonous manner by their own governments - as NONE of Europe's debt sinners can be "bailed out" as long as Wall Street's terrorists can continue driving interest rates higher with their fraudulent manipulation of credit default swaps.

The fact that Europe's (so-called) "leaders" have not denounced this economic terrorism is PROOF of their own collusion. People MUST do everything they can to bring down the system - since it is 'rotten' beyond any possible redemption.

Silver: The People’s Money

In my writing a couple of themes occur with regularity: how “fractional-reserve banking” (with purely fiat currencies) is nothing less than serial stealing from the general population; and how gold and silver can protect people from this cycle of theft.

With respect to fractional-reserve banking, the theft is obvious. The bankers print up vast quantities of their paper currencies ‘out of thin air’, at no cost to themselves – but with the full benefit of that money. Thus their own “wealth” increases exponentially, and without the bankers earning a single penny of it. However, by diluting our currencies in this reckless manner they drive down the value of our money – reflected in higher prices (i.e. reduced purchasing power). We get poorer and poorer; they get richer and richer.

Given that we have a corporate propaganda machine which has spent more than forty years trying to disguise this serial stealing, it is no surprise that it often takes a long time for this reality to sink into peoples’ minds. Sadly, even once people understand the stealing which is taking place, they often aren’t able to piece together how precious metals are the “cure” for this chronic condition.

When I speak of precious metals being our salvation from the bankers’ world of debauched paper, for the average person what I mean specifically is that silver is their primary protection from the banksters’ stealing-via-dilution. In referring to silver as “the people’s money” I am not saying anything new here. Rather I am simply reiterating one of the oldest economic truths of our species.

To understand this first requires understanding two more of the most ancient concepts of humanity. To begin with, people must know the answer to the question “what is money?”. Once they have a clear understanding there, it becomes crystal-clear why gold and silver are the best “money” our species has ever known – and the only “good money” in existence today...

Full commentary: http://www.bullionbullscanada.…ver-commentary&Itemid=130

[Note: it appears that Google has improved its translation function. I would be interested in hearing from the German-speakers here if in fact these translations are now more readable/comprehensible. Thank you!]

Deutsche:

Silber: das Geld des Volkes

...Leser müssen sich die historische Preisverhältnis zwischen Gold und Silber zu verstehen, oder mit anderen Worten, die sie benötigen, um die 5.000 Jahre alter Preis Beziehung zwischen dem Metall der Sonne (Gold) und die Metal of the Moon (Silber) zu verstehen. Das historische 15:1 Verdichtung ist absolut durch die Tatsache, dass dies auch den ungefähren relativen Anteile von Gold und Silber in der Erdkruste verstärkt. So 15.01 ist die "natürliche" Preisverhältnis zwischen Gold und Silber, und langfristig Gold und Silber Preise müssen dieses Verhältnis wieder.

Da die Übersetzung 15:1 (und das viel größer ist, Strom-Verhältnis heute), führt dies zu einer offensichtlichen Schlussfolgerung. Gold, aufgrund der Tatsache seltener und damit wertvoller ist das "Geld" der Reichen und Regierungen. Umgekehrt aufgrund des Seins reichlicher (aber immer noch "wertvolle") Silber hat immer das Geld der Menschen gewesen.

Sobald diese vorläufige Konzepte verstanden werden, sollten die Leser bereit sein, zu absorbieren, wie und warum Silber kann der gewöhnliche Mensch von der seriellen Diebstahl der Banker zu schützen. Remembering, wie die Banker "stehlen" durch Verdünnen des Papiers (dh Fiat-Währungen) sind wir halten, ist die offensichtliche Lösung für dieses Problem zu vermeiden, hält der Banker Papier.

Wenn wir die Früchte unserer Arbeit zu nehmen und wandeln es in Silber so schnell wie möglich, dann plötzlich die Banker müssen die meisten ihrer Stehlen von den anderen Papier-Inhaber zu tun - nicht wir. Und wenn jeder normale Mensch verwandelt ihren Reichtum an Silber so schnell wie möglich, sobald die Banker (und die ultra-reichen, bei denen die Banker "vorne") hätte niemand zu stehlen, sondern sich gegenseitig...

Volle kommentar: http://translate.google.com/tr…commentary%26Itemid%3D130

‘D-Day’ Near For GLD

The SPDR Gold Trust, more commonly known by its NYSE ticker symbol “GLD”, represents a triumph of “bankster engineering” in the gold market. While it is supposedly a convenient way for small investors to hold “gold”, what it is actually is an extremely convenient tool for the banksters to dilute the investor dollars flowing into the bullion market, and thus delay the rise in the price of gold.

It can be thought of as the “twin” of the iShares Silver Trust (or “SLV”). Because of the much more complex nature of the gold market versus the silver market, it is not as easy to draw inferences on the true purpose of this banker trading vehicle in the gold market based only on the trading taking place in that market. However, unquestionably it shares much in common with its silver twin.

As with SLV, the “custodian” for all the gold claimed to be held in this trust is the largest short-seller of gold in the world, UK banking behemoth, HSBC. Thus as with SLV, on its very surface GLD represents a massive conflict of interest. Any small gains for GLD unit-holders translate into enormous losses for the custodian, meaning that HSBC has a huge financial interest in limiting the profits of unit-holders as much as possible.

Further evidence that GLD was a creation for the benefit of bankers (and specifically HSBC) rather than shareholders can be obtained by any close scrutiny of the prospectus. Back in July 2010, I engaged in such an analysis, which I titled The Seven Sins of GLD. Regular readers will recall that I made several startling discoveries upon such scrutiny.

To begin with, there is no absolute requirement for the fund to invest all (or any) of the proceeds from the sale of units into the purchase of gold. The official “investment objective” of the fund is merely to “reflect the performance of the price of gold bullion” [emphasis mine]. In other words, rather than being structured as a genuine “gold trust” it is actually a self-described index fund – required to only track the price of gold, rather than being required to fully invest in bullion...

Full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

Deutsche:

"D-Day 'Near Für GLD

...GLD ist nie gerechtfertigt sich nichts mehr als ein Indexfonds werden: ein Fahrzeug für den Handel mit Papier-Gold. Es bietet das absolute Minimum, um die Anleger in den Weg der Sicherheit, während bei denen sie zahlreiche Kontrahentenrisiken.

In etwa zwei Wochen Zeit, können die Anteilinhaber eine neue Gefahr für ihre Liste der Sorgen hinzu: das Potenzial für nahezu unbegrenzte Verwässerung des Goldes tatsächlich im Namen derer, Aktionären gehalten. Wenn wir Paar, das mit der Tatsache, dass je mehr, dass die Anteilinhaber die mehr HSBC gewinnt verlieren, dann ist die Kombination aus einem eklatanten Interessenkonflikt und das Potenzial für eine unbegrenzte "Verdünnung" (in der HSBC-Stimmen) eine unerträgliche Höhe des Risikos für jede repräsentiert marktwirtschaftlich handelnden Kapitalgebers.

Die Mainstream-Medien gern die Abhaltung der "physischen" bullion mit dem Hinweis darauf, dass Gold (und Silber) "kostet Geld" zu halten entmutigen. Allerdings sind die einmaligen Kosten eines sicher nach Hause, oder die monatliche Gebühr für ein Safe trivial Mengen, im Gegenzug für vollständig eliminiert sowohl den massiven Kontrahentenrisiko und das enorme Potenzial für die Verdünnung zu dem alle GLD-Halter sind zu unterwerfen sich. Jenseits 11. November, scheint dies eine Lektion, die die Anteilinhaber sind im Begriff, "auf die harte Tour" lernen.

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SLV And Silver Manipulation

JP Morgan is the largest silver short-seller in the history of the world. JP Morgan is the “custodian” for the largest “long” silver fund in the history of the world, making this one of the largest conflicts of interest in all of history.

If the unit-holders of the iShares Silver Trust (or “SLV”) make a small amount of profit on their holdings (per unit), JP Morgan suffers massive losses on its “short” position in the futures market – and then at least one hundred times that amount of additional losses on its unimaginably huge, leveraged, silver derivatives. We know this thanks to the loquacious banker, Jeffrey Christian, formerly of Goldman Sachs and now head of the CPM Group, one of two “consultancies” who are quasi-official record-keepers for the gold and silver markets. Obviously JP Morgan has a gigantic personal incentive to try to make sure that holders of SLV units make as little as possible on their investment.

This alone should disqualify JP Morgan from serving as “custodian” for all of the silver JP Morgan supposedly holds on behalf of those unit-holders. Amazingly, with JP Morgan claiming to be sitting on the two largest, single silver-holdings in all the world it has never been required to have both of those holdings audited/verified. Thus JP Morgan has been able to indulge in this blatant conflict of interest while so-called “regulators” actually help it to conceal its activities.

However, the absurdity of allowing the world’s largest “silver fox” to guard the world’s largest “silver henhouse” with absolutely no public scrutiny is only the beginning of this outrage. Those who follow the silver market will have noted an amazing “coincidence” in recent years since the creation of SLV: JP Morgan’s massive short position always closely mirrors the size of the total holdings of SLV.

This led me immediately to a rather obvious conclusion. Each time someone purchases a unit of SLV, JP Morgan uses the proceeds to acquire that one ounce of silver (as it is supposed to do). However, instead of that silver being used to “back” that unit of SLV (in JP Morgan’s role as “custodian”), JP Morgan increases its short position by one more ounce – and then uses the new silver to back its own short position (in JP Morgan’s role as “greedy banker”)...

Full commentary: http://www.bullionbullscanada.…ver-commentary&Itemid=130

The Myth of Over-Regulation

Perhaps the worst crime committed by the corporate Oligarchs who now dominate our lives was their successful efforts to rewrite much of “history”, and then use the mythology they created to brainwash us.

The two most insidious and damaging of the myths they created were that unionization was bad for economies and that regulation was bad for economies. The facts are quite clear here, however. The 1960’s marked the absolute zenith in the Western world for both unionization and regulation. Consequently, the 1960’s also represented the all-time peak in our standard of living, and the all-time peak in the prosperity of our economies.

Since that time (and during the rise of the Oligarchs), they have pursued two goals with ruthless tenacity: union genocide and the abolition of all “regulation”. Consequently, over the past 40 years we have seen our standard of living plummet across the Western world, while our ever more anemic economies drowned themselves in debt. This particular piece will focus on the irreparable economic damage which the Oligarchs have caused with their myth of “over-regulation” – and the era of deregulation they spawned.

The examples of the failure of this policy are practically infinite, as “deregulation mania” has engulfed the tiny minds of our politicians and (supposed) “regulators” throughout the past four decades. One of the first (and most illuminating) examples of deregulation at work was the destruction of the global airlines industry...

Full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

Preemptive Strike Against Precious Metals Nears End

I have been intentionally silent on the gold and silver markets for the past several weeks. Prior to that, I wrote several pieces just after and just before the latest take-down in precious metals to alert readers/investors to the fact that “volatility is the new weapon” of the banksters in their efforts to suppress this market.

Since that time, there simply has not been the opportunity to provide readers with any substantive analysis of the current situation. In most of the recent take-downs in precious metals over the past year or so there have been obvious “prongs of attack” for us to focus upon.

In May, it was the five, outrageous rapid-fire increases in margin requirements by the CME Group in the silver market – with the last four of those increases being implemented despite the fact that silver prices were already falling sharply. Prior to that, at the beginning of February the banksters employed a “suicide bomber” in the gold market to briefly drag down prices.

In this case however, I’ve been unable to discern any single action which would or could account for the especially blatant manipulation of these markets – at a time when all the economic fundamentals and all the seasonal factors were greatly favoring another strong rally in precious metals. Rather, this particular take-down seems to have involved everything but the proverbial “kitchen sink”.

Negative “lease rates” for gold and silver, massive shorting, manipulative margin-hikes and direct collusion between governments all appear to be at work at present. Why have I added “collusion by governments” to this list? It has been abundantly clear from the price action in the gold and silver markets that the buyers have been in charge of these markets for at least the last two years...

Full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

Confessions of a Liquidity Junkie

It is (at best) pathetic when we observe a hopelessly addicted junkie attempt to “justify” his/her addictive behavior. However, when that junkie wears very expensive suits and presides over (supposedly) one of the world’s most prestigious institutions such behavior becomes both deplorable and intolerable.

Who could warrant such an ignominious introduction? In a 21st century economy nearly decimated with the monetary depravity of Western bankers there is a long list of candidates. However, in this case I’m referring to the Bank of England’s Chief Liquidity-Junkie, Mervyn King.

[Blockierte Grafik: http://i.telegraph.co.uk/multi…0/kinggrover_2020454c.jpg]

The actions of an addict are uniform and predictable.

1) When an addict has used-up his latest “fix” and begins to get the inevitable craving for more “junk” to feed the addiction, the addict never, ever acknowledges that his drug-use is the cause of the problem. Rather, the addict fixates on only a single thought: that getting another “fix” will temporary stop the withdrawal pains caused by that addiction.

2) During the addict’s desperate quest for his next fix, the addict loses the capacity for rational thought. To the addict, “the future of the world” hinges on him getting more of his drug.

3) Lastly, the addict lives his life in perpetual denial. The addict never acknowledges that obtaining another fix never solves anything, but only makes the addiction worse. Most importantly, the addict absolutely refuses to ever consider the truth: that the only way to ever solve his problem is through weaning himself off of his drug.

Viewed through this prism, King’s words and deeds are nothing more than the rationalizations of a hopelessly-addicted junkie. What was King’s justification after injecting himself (and the global economy) with another $110 billion of money-printing? ...

Full commentary: http://www.bullionbullscanada.…nal-commentary&Itemid=133

The Great Commodities Heist

It is all so very simple when we view “the big picture”. Bankrupt and near-bankrupt Western governments are stealing billions of dollars worth of various commodities from commodity-producers around the world. The evidence goes well beyond merely suggestive – into the realm of absolutely conclusive.

What makes this scenario so unequivocal is that we have the equivalent of “signed confessions” of the crimes these governments are committing. Exhibit “A” is the monetary policy titled with the vile euphemism “competitive devaluation”. It is the deliberate attempt by governments to destroy the value of their currencies – as fast as possible (i.e. “competitively”).

Destroying the value of our currencies as rapidly as possible means exactly the same thing as raising prices as fast as possible. Which brings us to global commodity markets. If our governments (primarily Western governments) are deliberately trying to raise prices as fast as possible with their excessive money-printing, how can commodities prices have tumbled so far?

Arithmetic tells us there is only one possible answer. Global commodity markets have been fraudulently manipulated lower through the use of the primarily “paper” futures markets. Given the scope and magnitude of this commodities take-down, it can only be the result of coordinated actions by many governments and (of course) the multinational bankers who pull their strings.

The “prime suspects” are all of the Western deadbeat-debtors (who are nearly all large importers of commodities) and any/all major commodity importers – with Japan and now China being the obvious culprits. The arithmetic here is absolute: as long as our governments engage in competitive devaluation all prices of everything can only go higher...

Full commentary: http://www.bullionbullscanada.…nal-commentary&Itemid=133

Volatility Does Not Equal Risk

The mainstream media does a terrible job with analysis. No secrets there. However, some aspects of this incompetence are so fundamental to their basic duties as to be completely unforgivable. So it is with the abysmal failure by the media to distinguish between the totally separate concepts of “volatility” and “risk”. Indeed, so terrible is the performance by the media here that these two, separate concepts are often treated as virtual synonyms.

As always, the place to start with such analysis is definition of terms, with which the intellectually lazy mainstream media is usually too lazy to bother. Let’s start with “risk”, since it is the simpler of the two concepts. In the context of investing, “risk” represents the probability that an asset which we bought and hold will (at some point) be sold for less than what it cost us.

There are two facets to such risk, however. Not only must we consider risk in the context of the basic probability that we might experience a “loss” on a particular asset, but the second aspect of risk of which we must be conscious is the potential magnitude of any loss. In very general terms, a low probability of incurring a large loss is something we need to guard against just as much as the high probability of incurring a small loss.

In looking at this “dual aspect” to risk, obviously what must be avoided at all costs are scenarios with a high probability of large losses. Conversely, we need not get especially concerned in scenarios where there is only a low probability of a small loss. Those are the basic dimensions of “risk”. Unfortunately, virtually the entire realm of business “journalism” regularly sabotages any discussion of risk by mixing-in issues of volatility.

Volatility refers to nothing more than the average magnitude of deviations from the mean. To put this into simpler terms, the more “volatile” the asset, the more wildly the price tends to bounce up and down. Over the long term, there is absolutely no connection or overlap between the concepts of risk and volatility.

Where the myopic media encounters its problems is that virtually none of these talking-heads ever looks at the “long term” picture of anything. Rather, they have been carefully conditioned over a period of many years to look only immediately behind themselves and/or at the ground immediately in front of their feet...

Full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

It is utterly pointless to talk about "returning to a gold standard" unless/until the issue of mass, Western insolvency is addressed.

The basic point could not be simpler: an insolvent nation (by definition) cannot "back" its debts with anything. Thus, it would never and could never be possible to return to a gold standard until AFTER the deadbeat-debtors DEFAULT on their debts.

It is ESPECIALLY silly to talk about the U.S. returning to a "gold standard", and that this will somehow "rescue" the dollar. The latest estimate of the total debts and liabilities of the U.S. is $210 TRILLION.

Even if the United States immediately devalued its currency by 90% it would STILL not be capable of "backing" its (now reduced) $21 TRILLION in debts/obligations.

The U.S. dollar is 100% guaranteed to end up on the SAME "trash heap" as all of the other fiat currencies which came before it.

Precious Metals vs. U.S. Treasuries

Two weeks ago, I wrote that volatility was “the new bankster weapon” in the gold and silver markets. In writing that this marked a “new phase” for these markets, I admit to never imagining that we would immediately see the bankers display this new phase with such a vivid “exclamation mark”.

That said, it is now equally important to emphasize to investors that nothing at all has changed for gold and silver from a long term perspective. Indeed what makes this current episode of market manipulation all the more surprising is that there wasn’t even any serious attempt by the mainstream media to manufacture a “reason” for the plunge in gold and silver – as “cover” for the banksters’ actions.

With “competitive devaluation” still the mantra for the economically/intellectually bankrupt governments of the West, and with most of the Rest of the World also being forced to play this game, we know that the banksters’ fiat currencies will continue losing value at an increasing rate. Note the use of the word “competitive”. It directly implies that these governments are driving down the value of their currencies as fast as they can.

Obviously, saying a currency is losing its value is exactly the same thing as saying that prices are going higher. As a matter of the simplest arithmetic, and the simplest logic, if most of the governments of the world are trying to push up prices (as fast as they can) then the prices for gold and silver can also only go higher over time.

Of course some things are “different” in the gold and silver markets – in comparison to where we were when this bull market started over ten years ago.

Back then, the banksters had lots and lots of bullion to dump onto the market to depress prices. Now they don’t. Back then, the governments of the world were not deliberately trying to drive up prices. Now they are. Back then, our governments were not obviously insolvent, and gold and silver were not viewed as “safe havens”. Now they are.

In short, ten years ago there were lots of reasons to worry about the “strength” and “stamina” of the gold and silver markets (as “long” investments). What happened at that time? The price of gold nearly quadrupled from under $300/oz to over $1000/oz. The price of silver more than quintupled, from under $4/oz to nearly $20/oz...

Full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131