Beiträge von bullionbulls

  • Global Economic Collapse

    Could Helicopter Ben Be Losing His Faith?



    There can be no doubt that the B.S. Bernanke floundering for ideas in September 2011 is a far different creature than the High Priest of Keynesian economics who assumed the position of Chairman of the Federal Reserve in February, 2006.


    That “B.S. Bernanke” was a supremely confident zealot of his faith. “I have a Printing Press,” he would proclaim to the world (at 30 second intervals), “And with this Printing Press I have the power to create Inflation at my command. And, lo and behold, with this Inflation I can destroy the value of any/every currency – and thus prevent Satan from afflicting us with his Depression.”


    High Priest Bernanke was unflinching in his faith, and when a mere two years into his tenure he (and his predecessor) had led (misled?) the U.S. economy to the brink of an unprecedented economic collapse, the High Priest demonstrated he would not hesitate to use his mighty Printing Press.


    Again and again and again, Bernanke’s Printing Press barfed billions of U.S. dollars into the U.S. (and global economy). And the High Priest proved that he was correct (or at least partially correct) with his previous proclamations. B.S. Bernanke could (and did) create Inflation, usurping more and more of the dwindling value of the U.S. dollar with each fresh round of money-printing. His ability to create Inflation was unquestioned.


    Confronted with his own past “successes”, we are left with many obvious questions. Why is High Priest Bernanke no longer willing to use his Printing Press at any and every opportunity? Has the High Priest simply lost his “faith”?


    Today, B.S. Bernanke confronts the same “demon” which has sapped the faith of countless zealots before him. His previous “blind faith” in Keynes and the Power of the Printing Press has given way to doubt. This can be obviously demonstrated simply by reading the media’s script for the current meeting of the Federal Reserve. Hopes for a new infusion of money-printing are being squelched...


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

  • P I G S = Euro in Gefahr

    Time For Europe’s Bond-Burning Party


    ...In 2011 Europe is once again in financial ruins, however this time the cause is not a war, nor even some form of natural catastrophe. Rather, the architects of this destruction were multinational bankers and the shadowy bond-parasites lurking behind them, holders of $10’s of trillions in sovereign debts. Their tools were fraud and deceit, and their original victims were the corrupt and/or weak-willed “leaders” of Europe who were ensnared by the banksters’ “revolutionary” new ways for these governments to (supposedly) finance their growing debts.


    Now the victims of these arch-villains are virtually all the peoples of Europe – either facing their own, imminent bankruptcy, or being strong-armed into squandering their wealth through utterly futile “bail-outs”. I have already chronicled in a multi-part series this mass “economic rape”.


    The bail-outs are obviously and inevitably futile, because the moment another infusion of loaned money is advanced to one of the debt-sinners, Wall Street’s economic terrorists quickly claw-back every penny of it – by driving up the interest rates on that nation’s debt through their fraudulent manipulation of the credit default swaps market...


    Meanwhile, the economies of Ireland, Portugal, Spain, Italy, and even France are now also at risk. Put another way, every time (over the past two years) that the U.S. propaganda machine has “mused” that a particular European nation might be about to have a “debt crisis” credit default rates have magically begun to spike higher (in the rigged casino which Wall Street calls “the derivatives market”) – which directly leads to higher interest rates on that nation’s debt. Et voila! A “debt crisis” becomes a self-fulfilling prophesy.


    As a matter of simple arithmetic (and compound interest) any nation with a large debt can be rendered “insolvent” if their interest rates are forced (manipulated) high enough. Now France is the latest “target of speculation” by major U.S. media sites.


    Consequently, we are long past the time for a “benign default” for Europe. I offer instead “the Nielson Plan”: nothing but “scorched Earth” – or should I say scorched bonds? A new, economic Golden Age can be ushered in for Europe, and all it requires is to put a torch to some of the bankers’ paper...


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

  • GOLD : Märkte und Informationen

    The New Bankster ‘Weapon’ Against Gold/Silver



    In any long-term bull market, we would normally expect to observe several phases. Put another way, in any long-term trend (in this case higher) we would not expect to see this entire period dominated by a single trading pattern.


    In “free and open markets”, the simple dynamics of supply and demand will almost always change trading patterns as the years go by – and rising prices re-shape a market. Even in our own, heavily-manipulated markets we would expect that the combination of rising prices and time would serve to create new patterns and dynamics.


    This is certainly true with precious metals markets. The gold market in particular has exhibited three, distinct phases since its massive, bull market began a decade earlier. The 10-year chart below provides us with an illustration of these phases (and patterns)...


    [chart not included]


    ...The first phase can be succinctly summed-up as the “sleeper” phase, in more than one respect. First of all, this was clearly the “stealth” segment of this bull market. Only the most-savvy gold bulls and investors were buying the yellow metal back in those days – with most of the public still “asleep”. Similarly, the bullion-bankers were smug and apathetic themselves; still not even dreaming that their multi-decade choke-hold on this market was about to be broken. The result is a very “sleepy” chart pattern: a slow-and-steady rise in the price of gold – right up to the beginning of 2006.


    We can think of 2006 as either the year of “awakening” in the gold market, the year that the “war” (to control this market) really began, or simply both. Clearly, when gold sailed past the $500/oz mark without even a pause this (finally) got the attention of both significant numbers of investors and the bullion-banks themselves...


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

  • Global Economic Collapse

    Salvation For Western Pension Funds



    ...Forcing fund-managers to personally hold what they buy can be considered a certain means of getting these administrators to be much more “focused” and “motivated” in administering assets – and less likely to jump at the first “investment” recommended to them by sleazy fraudsters (in very expensive suits). However, “getting their heads in the game” is only the first step.


    We obviously need fund administrators with some minimal level of competence in macroeconomics. Those individuals possessing such insight are aware that we are still in the early stages of the most-massive global economic boom in history: the simultaneous industrialization of more than half of the world’s population. The previous greatest economic boom was post-World War II, and the rebuilding of (primarily) Europe. Yet that “boom” only involved about 10% as many people.


    Once we have competent people in charge of our pension funds, then they will obviously gravitate en masse to the world of commodities: the building-blocks of the global economy. It is the simplest of observations that the world’s largest economic boom (by a factor of ten) is going to involve much more “building” than at any other time in our history. Parallel to that is the increasing demand on “soft commodities” (i.e. food), as the combination of rapidly rising incomes and steadily increasing populations guarantees extreme pressure on global food supplies.


    Here the bankers would retort that “commodities are too volatile for pension funds”. The response to that is to point out how these same banksters have turned all markets into wild, rollercoaster rides – with most of those rollercoasters moving steadily “downhill”.


    The other obvious rebuttal to such banker nonsense is to point out that the “volatile” holdings in commodities can be “anchored” with the world’s most-stable financial assets: gold and silver. Indeed, we have recently seen one U.S. pension fund making the news for doing precisely what I am suggesting...


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

  • Global Economic Collapse

    Zitat von buddhalf

    The term fascistic still sounds too strong a word in my ears yet I can see that it must be sth. like that.



    Buddhalf, I understand that sentiment (especially on a German forum) given the extremely nasty CONNOTATIONS we have associated with that word. However, the definition of fascism is quite simple: central government and corporate Oligarchs combine their "political" muscle with their "economic muscle" to exploit their OWN populations and/or any unfortunate "neighbours" of such fascist regimes.


    Understand that there is no real "ideology" associated with fascism beyond "might is right". It is nothing but a NATIONAL manifestation of one of our most unfortunate vices: the "bully" complex.


    Looked at in more neutral terms, I don't think there can be any doubt that we are moving into the most EXTREME manifestation of global fascism in history. Keep in mind that the "fascists" of the World War II era only represented about 1/3 as many people as the 21st century fascists. And the harm caused by THIS generation of fascists has only just BEGUN...

  • Global Economic Collapse

    Western ‘Pension Crisis’ Reflects Investment Incompetence



    A Reuters article published today tells us that (once again) dangerously under-funded Western pension funds are lurching toward a “crisis”. In some respects, a pension crisis in the corrupt, debt-bloated economies of the Western industrialized world was inevitable. The massive accumulation of debt is a large and relentless “drag” on the economies of these nations – guaranteeing lower rates of return over the long run for most asset classes. This is coupled with the massive “pension overhang” of the spendthrift baby-boomers, who not only buried our nations in debt, but then squandered most of their own wealth in mindless consumption.


    Proving, however, that you can always “make a bad situation worse”, the administrators of pension funds have also mirrored the incompetence of most mainstream financial advisors – who have gone from being architects of “wealth creation” to the implements of “wealth destruction”.


    The proof of the utter incompetence of almost all these suit-stuffers is abundant, and it starts with the Golden Rule of investing: “buy low and sell high”. What do we see virtually all mainstream financial advisors and pension fund administrators doing today? They are selling equities (which have been plunging in value), and (so we have been told) are paying the highest prices in history to buy U.S. Treasuries.


    In other words, all of these investment “experts” are doing precisely the opposite of what they should do if they want to make money (for their clients/beneficiaries): they are selling low and buying high. Of course “buying high” is an enormous understatement – given that the “value” of any/all U.S. Treasuries is zero (or close to it). Again, this is something which can be demonstrated in various ways.


    Former Reagan economic advisor, Professor Lawrence Kotlikoff states unequivocally that the “correct” figure for U.S. indebtedness is not the $14+ trillion fantasy-number universally referred to as the “U.S. national debt”. Rather, the correct figure should be $211 trillion, he argues.


    There is nothing surprising here. It is common knowledge that the U.S. government is hiding countless $trillions in “unfunded entitlements”. All that is “debatable” is the precise time frame over which we want to count those liabilities. Ultimately, the precise number is moot – as even the lowest possible estimate of the cost of those entitlements is utterly beyond the financial capabilities of the U.S. government (by at least a factor of ten)...


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

  • Global Economic Collapse


    Thanks for your comments Buddhalf.


    First, with respect to Canada's economy. 25 years ago it was CANADA which was the big dead-beat debtor of the West - thanks to having a (so-called) "Conservative" prime minister. I don't know about Europe, but in North America "conservatives" are people who like to SPEND as much as "liberals" - but refuse to TAX anyone. Thus in North America "conservative" is now a synonym for "deadbeat".


    Canada has (once again) had a Conservative prime minister for 5+ years now - and once again we are a deadbeat economy with record deficits. Canada's economy only looks "strong" when compared to the U.S. and the PIIGS.


    Secondly, regarding your comment on "fascism". This is a word we use ALL THE TIME on our own site. It is the PERFECT word for the political evolution now taking place across the West.


    In that respect, I was a guest on Jay Taylor's "Voice of America" radio show - where this was the entire topic of discussion. I hope those interested in this topic will have the time to listen to this broadcast. My own apperance starts at about the 38-minute mark of "Hour 1", and then the first 2/3 of "Hour 2"...


    http://www.voiceamerica.com/Show/1501

  • Global Economic Collapse

    Stephen Harper: The Economy-Killer



    Even in a world full of “posers”, Canada’s Prime Minister Stephen Harper is in a league of his own. I was first introduced to Harper’s penchant for grandiose claims when he was briefly interviewed while sitting in the stands of a hockey game I was watching on television. In that interview he referred to himself as “a hockey historian”.


    The next time I saw Stephen Harper interviewed (this time in a serious “news” interview) he described himself as an “economist”. Presumably, if he was ever interviewed while attending the Calgary Stampede he would have claimed to be “a champion bull-rider”. However, knowing a couple of things about economics myself, I’m most interested in Harper’s pretension of being an “economist”.


    When Stephen Harper was first elected, he inherited an economy that was the envy of the entire industrialized world. Canada had a large budget surplus (one of the few nations on Earth to be running budget surpluses), a large trade surplus, a large current account surplus, and the economy was getting stronger every year.


    Today, as of the latest measurements, Canada has one of the weakest economies out of all industrialized nations. It’s budget surplus is gone – replaced with record-setting deficits. It’s trade surplus is gone. It’s current account surplus is gone – and the current account deficit is growing each quarter.


    It was just reported this morning that Canada’s economy shrank in the second quarter. Yes, now that Stephen Harper has a “majority government” (and full control over the Canadian economy) he’s managing to do an even worse job. With record-setting commodity prices, in a commodity-starved world, how can the economy of one of the world’s leading commodity-producers actually shrink? Simple. Just put Stephen “the economist” Harper in charge of it...


    Full commentary: http://www.bullionbullscanada.…ian-commentary&Itemid=134

  • GOLD : Märkte und Informationen

    ‘Unsinkable’ Gold



    Ever since the tragic sinking of the Titanic on her maiden voyage, the word “unsinkable” has acquired a very cynical connotation in our society. Rather than representing unsurpassed seaworthiness, it has come to represent the arrogance and folly of believing one’s self to be beyond risk.


    With a new tidal-wave of “gold bubble” propaganda having swept through the mainstream media as gold made its latest surge, quite obviously many market sheep have been duped into viewing gold as the new ‘Titanic’. Yet as we watched gold getting “torpedoed” last week still another time by the banking cabal there is only one word we could use in describing the performance of the yellow metal: buoyant.


    The bankers (and their minions in the media) were positively giddy as they proclaimed mid-week that gold had suffered “its worst three-day plunge since 1980”. These deceitful bears were markedly less-exuberant as gold roared back with one of, if not the biggest two-day rally in its trading history – totally negating the significance of the prior plunge. It was a performance which could only be envied by the builders of the Titanic.


    Readers are right in being skeptical about merely the “chart strength” which gold has demonstrated, however. As I continually remind people “technical analysis” is the least significant aspect of market analysis. This will naturally enrage the “T/A jockeys”, who like to pretend that technical analysis is all-powerful – simply because it is fast and easy, and requires no genuine comprehension, other than the ability to spot patterns in pictures.


    This complete reliance upon charts rather than fundamentals is more than merely simplistic, it is dangerous. This is due to the fact that all technical analysis is based upon a long list of assumptions – all of which must be true, or all statistical validity of such analysis instantly evaporates. Thus the appropriate way to demonstrate the “unsinkable” status of gold is through fundamentals-based analysis rather than statistical “hocus pocus”. It is here that gold shines even brighter...


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

  • Global Economic Collapse

    Real Stimulus vs. Corporate Plundering



    Regular readers are familiar with my harsh criticisms of the faux “stimulus” initiatives put forth by the Obama regime (and other Western governments) over the past 2 ½ years. Stuffing countless $billions into the vaults of large, multinational banks and corporations is not “stimulus”. Rather, it is simply more of the same “wealth re-distribution” (i.e. stealing) which has been occurring at an accelerating rate in our economies for the past 40 years.


    From a theoretical standpoint, giving money to large (well-capitalized) corporations is the worst thing that any government could do with a dollar of stimulus – from several standpoints. First of all, what 2+ centuries of modern capitalism has shown us is that these corporations use such capital to reduce their number of employees by adding more labour-saving (but expensive) capital equipment.


    Indeed, at the Dawn of the Industrial Revolution the average “work week” was 7 days a week, 12 hours a day – or more than 80 hours/week. The reason why our current work week is only 40 hours long is because new technology always eliminates jobs faster than it creates new opportunities, and so our governments have been forced to shorten the work week every few decades.


    Currently there are approximately 50 million people in Western economies who are not allowed to work. This massive structural unemployment exists for only one reason, because our corrupt governments refuse to shorten the work week. It has been frozen at 40 hours/week for well over half a century, despite the fact it will never again be possible to have “full employment” with a forty-hour work week.


    Allowing corporations to get larger and larger simply accelerates the transition to ever more capital-intensive (and low-employment) business models. Stuffing taxpayer dollars into the pockets of these corporate Oligarchs just so they can reduce employment even further is not “stimulus”. Of course I’m being unfair here. When the Obama regime showered these corporations with $100’s of billions they did create jobs – in China...


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

  • Global Economic Collapse


    Thanks for your support Prataeouro!


    I feel fortunate to be allowed to post our content on this fine forum, and hope that other members here also derive some benefit from what I post here.


    As for all of the "shit" in the mainstream media, I began my writing on an amateur blog - as a means of relieving the STRESS of dealing with all the B.S. in our markets day after day (lol!)...

  • GOLD : Märkte und Informationen

    Gold, Silver, and ‘Leaky Buckets’



    ...Once we have conceptualized wealth as a “liquid”, then it becomes equally simple to conceptualize “money” and “paper currency” within the same metaphor. They are containers for this liquid. Now let us make our metaphor even more tangible and precise.


    Instead of “money”, let us divide this into two “containers”: gold and silver – the best/most-preferred forms of money in the history of our species. And instead of “paper currency”, let’s call that container “U.S. dollar”. Finally, let’s simply refer to these containers as “buckets”.


    We now have a very specific metaphor, and a very clear choice for each of us. We each have our own quantity of liquid (wealth), and we can store/hold that liquid in the “gold” bucket, the “silver” bucket, or the “U.S. dollar” bucket. Now let’s examine the quality of each bucket.


    Why have gold and silver been the preferred forms of money for our species for 5,000 years? Because they perfectly preserve (i.e. contain) the wealth of the holder. Look back 2,000 years to ancient Rome, and a stylish Roman could adorn himself in the finest toga, sandals and accessories for the cost of 1 oz of gold. Flash ahead to today, and any gentleman could obtain a top-quality suit, shoes and accessories for the cost of 1 oz of gold. Clearly, the gold bucket does not leak.


    Now let’s look at the U.S. dollar bucket. In the less than 100 years since the creation of the odious Federal Reserve, the U.S. dollar has lost approximately 98% of its value. Obviously the U.S. dollar bucket does leak. Hold your liquid in the U.S. dollar bucket long enough and you will lose all of it...


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

  • Global Economic Collapse

    Crumbling Infrastructure Symbolizes U.S. Economy


    ...Remember all of that “infrastructure spending” which was (supposedly) part of the stimulus package, which in turn supposedly led to a “U.S. economic recovery”? It never happened. Just like the supposed “recovery” itself, it was nothing but smoke-and-mirrors. No recovery, no investment in infrastructure. Only the debts from all that “stimulus” were real.


    In fact, while the U.S. government was pretending to be attending to its neglected infrastructure, the U.S.’s global ranking for the quality of its infrastructure was plummeting lower. A Reuters article reveals that in a mere four years (from 2007 to 2011) the U.S.’s ranking fell from #6 to #16.


    ...U.S. government negligence in this area appears even more appalling when compared to other parts of the world. While the U.S. propaganda-machine continues pummeling Europe with its fear-hype over the “Euro debt crisis”, Europe is currently investing a robust 5% of its GDP in infrastructure – more than double the paltry 2% spent by the U.S. And this is not a new trend. Infrastructure investment in the U.S. hasn’t risen above 2% of GDP for more than 30 years.


    The European statistic can be viewed in two ways. For those with a bullish outlook, Europe is literally “paving the way” for future economic growth with this high level of infrastructure investment. For the bearish, this high level of investment represents an area where large budget cuts can be achieved without immediately impacting the level of public services. Thus (at least in this one respect), European “austerity” is not an exercise in inevitable economic suicide.


    Conversely, the U.S. position can only be summed-up as “totally screwed”. The $trillions in new debt and money-printing which was supposed to “fix” the U.S. economy has all been wasted (most of it stuffed into the vaults of Wall Street banks). Now, like all deadbeats who have exhausted their credit, “austerity” is coming to the U.S. – whether it likes it or not. With an economy starved for legitimate investment, “prescribing” austerity for this economy is like a doctor telling a patient with severe anemia to go on an extreme “diet”: it is a terminal sentence...


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

  • GOLD : Märkte und Informationen

    Watch Gold/Silver/Oil Price Ratios


    A little more than a week ago I wrote a commentary titled “Buy A House With Silver”. As I said at the time, there were two purposes in writing that commentary.


    First of all, with the nominal prices of the bankers’ fiat-paper increasingly meaningless, I pointed out that people needed to start valuing hard assets against each other (directly), and simply exclude our rapidly depreciating paper from these valuation comparisons. Secondly, I pointed out the enormous potential for profit if people simply remain aware of the value of various assets relative to each other. Specifically, I noted that investors had been presented with one of the “best arbitrage opportunities in history”: buying grossly undervalued silver today, and then using that asset to purchase a home a few years down the road – when the prices of (overvalued) real estate will have fallen back to reality.


    This is such an important topic that there is much more which can be said about it. In this piece, I will explain to people how staying on top of the price ratios between gold and oil, silver and oil, and silver and gold will allow us to make much better buying/selling decisions on the gold and silver miners, as well as making more optimal decisions in allocating our bullion dollars between gold and silver.


    Let me begin with a general investing principle with these miners, for newer readers who haven’t read this previously. Energy costs (in general terms represented by the price of oil) are the second largest input expense for the miners, behind only the cost of labour. Thus when the price of oil rises faster than the price of bullion the miners tend to become less profitable, and when the price of bullion rises faster than the price of oil the miners tend to become more profitable.


    We see this principle directly translated into the share price of the miners again and again. In 2008, before the “crash” when commodities were reaching record-shattering prices, the price of oil was over $140/barrel, while the price of gold was below $1000/oz and the price of silver was below $20/oz. In relative terms oil was a crushing expense for the miners with these prices, and thus the share prices of the miners were sagging even before Wall Street unleashed its massive ambush.


    What happened after that?


    The price of oil collapsed by close to 80%. The price of silver was knocked-down nearly 60%. The price of gold was only pushed down a little over 20%. The miners became more profitable...


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

  • Global Economic Collapse

    California is Bankrupt



    ...The starting point here is to (once again) shatter the utterly ridiculous myth that U.S. states and municipalities run “balanced budgets”. For those who have not yet abandoned this nonsensical fantasy, here’s a question for you: if California’s state and municipal governments have been running “balanced budgets” year after year, how can it be that they collectively owe more than $100 billion in debts (not counting countless billions more in “unfunded liabilities”)? Indeed, how could we even be discussing “bankruptcy” with entities which supposedly balance their budget each year?


    Being able to borrow as much as you want to spend is not a “balanced budget”. It is nothing but the most painful example of “deadbeat math”, and it can be traced to another popular American misconception: that the U.S. “sells bonds”. A bond is nothing more than a category of loan. When the U.S. claims it is “selling bonds” this is every bit as absurd as a new “homeowner” claiming that they “sold their mortgage” to a bank. Claiming that one can “balance a budget” by “selling bonds” is in fact a double oxymoron (or “moron squared”).


    We have now established that California is a chronic debtor, which never balances it budget. We are making progress. Now all that I need to show is that it is utterly incapable of repaying those debts. Unfortunately this is equally simple.


    ...First Bloomberg tells us that state and municipal governments in California are only able to borrow half as much as they could just one year ago. With both the state government and countless municipal governments already teetering on bankruptcy, and with all these governments having huge, structural deficits, this one number alone is “terminal”. Unless creditors suddenly and capriciously reverse themselves here, the inability of California’s deadbeat governments to borrow enough money implies bankruptcy in the immediate term.


    If this wasn’t dire enough already, Bloomberg informs us that after the first month of this new fiscal year that state revenues are already running 10% below projections. This directly implies yet more $billions in unfunded (unfundable?) debt. However, keep in mind a more general statistic which I noted in a previous commentary: U.S. withholding taxes suddenly turned negative this spring. In other words, the amounts deducted from peoples’ pay-cheques to pay their tax bill has suddenly started falling.


    This is an unequivocal indication of falling incomes in the months ahead, since withholding taxes are calculated based upon anticipated future revenues (i.e. wages). What this means is that we can expect California’s revenues to fall drastically short of projections every month, and with the U.S. economy now clearly weakening at a rapid rate, this revenue-gap will almost certainly increase dramatically...


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

  • Global Economic Collapse

    Why 2011 Is Not '2008'



    With many investors now having descended back to full-fledged “panic mode”, it is obviously the perfect time to explain why 2011 could never be another event like the Crash of ’08. In distinguishing 2011 from 2008, many of the distinctions involve the degree of collapse which is possible/probable. Thus, I am not rejecting the suggestion that we are on the brink of another “crash”, but rather pointing out that the nature of any such crash would be remarkably different.


    While most sectors of the economy (and most markets) are in worse shape than when the Crash of ’08 commenced, there are a couple of sectors which are quite clearly much stronger than in 2008. When we explore this dichotomy, it will quickly become obvious why events could not repeat the scripted “crash” of 2008.


    Much less leverage in commodities:


    Though there are many significant differences between 2011 and 2008, I will argue that none are as significant as the dramatically different dynamics which exist in commodities markets today versus the Summer of 2008.


    In 2008, commodities markets were more leveraged (on the “long” side) than at any other time in the history of the global economy (and by a wide margin). Not only is this (arguably) the largest/strongest “bull market” for commodities in the history of the global economy, but it is the first commodities-boom since the explosion in the “hedge-fund” gamblers. These reckless speculators amplify volatility, risk, and leverage in any/every market they touch.


    It is important to understand that there was absolutely no reason for commodities markets to crash in 2008 (just as there is absolutely no reason today). There is no plausible economic scenario in the future where the world economy will have sufficient amounts of most commodities. We are headed unequivocally toward a future of chronic commodities shortages...


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

  • SILBER : Märkte und Informationen

    Buy A House With Silver



    I had two purposes in writing today’s commentary. The most obvious intent is to help people avoid committing financial suicide in our real estate markets. However, an equally important goal was to provide people with some sort of quasi-objective “measuring stick” to answer an important question: how high is “high”, when it comes to precious metals prices – and in particular the price of silver?


    The first topic can be dealt with (in general terms) rather quickly. The criminal near-zero interest rates imposed on us by our banker-serving governments mean that any and every economy which allows such recklessness will always have a housing market in some stage of “bubble”.


    Near-zero interest rates punish savers. When near-zero interest rates are combined with high inflation, this is nothing less than the economic rape of savers – the specialty of Western bankers. With savers forced to disgorge any/all savings (to avoid it being ‘stolen’ via banker-created inflation), the first place capital flows in such situations is into real estate markets.


    There are two reasons why real estate will always represent the first/worst bubbles to afflict such markets. First of all real estate is the most obvious asset-class to turn to in such circumstances. Secondly, many/most Western economies provide some level of subsidization for home-ownership – further “juicing” these real estate bubbles. The fact that the U.S. subsidizes home-buying more than any other economy is one of the reasons the U.S. housing market continues to represent the world’s worst real estate bubble (with massive, systemic fraud being the other main driver).


    In such circumstances, there is no such thing as “investing” in real estate – only in gambling on it. The exponential money-printing and near-zero interest rates have resulted in more capital sloshing around asset markets than at any other time in history – by a factor of ten. In such circumstances no one can attach a rational/objective assessment to home prices. With absolutely no way of determining how overvalued is any particular real estate market, then obviously any/every purchase is a gamble...


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

  • P I G S = Euro in Gefahr

    Beware the "Euro bond" !!!!!!



    Economic Rape of Europe Nearly Complete, Part IV



    ...The next stage of the plan has already been “launched”, in the sense that the strategy is being openly discussed (in order to create the right “climate” for the final stage). More and more bankers and Euro Zone officials are now proclaiming that a “Euro bond” represents the Final Solution for the “Euro debt crisis”.


    In this respect, it is extremely ironic how the word “bond” has two entirely different definitions. On the one hand it can represent a “pledge”. On the other hand, it equally represents a rope or chain used to restrain us. By now, it is hopefully apparent to readers that a “Euro bond” would entirely fall under the latter definition.


    The idea itself is that Europe, as a whole, would issue a majority of its debt in these generic “Euro bonds” which would be backed collectively, by all of the economies of Europe. This would effectively blunt much of Wall Street’s current “terrorist attacks” in the individual debt-markets on these nations, since such terrorism is perpetrated via the individual “credit default swap” markets of the various sovereign Euro-zone economies – thus driving up their interest rates.


    A “Euro bond” would be tied to the European Central Bank interest rate, and issued at only a tiny fraction of the interest rates being inflicted upon individual European economies by Wall Street. Thus the “carrot” being dangled before the eyes of the Euro debt-sinners is that if they opt for a “Euro bond” it would dramatically reduce their borrowing costs – nearly making these economies solvent.


    The banksters and bond Oligarchs are also hoping this will be extremely attractive to the more-solvent economies of Northern Europe, who are currently being called upon to bankroll all of the “bail-outs” for the debt-sinners of the South. Thus they will bombard the citizens of these northern European nations with propaganda assuring them that once a Euro bond is a reality that the Southern debt-sinners will cease to mooch any more “loans” from them.


    Of course, as with any/every supposedly “benign” action by the banksters and bond Oligarchs, this supposed Final Solution is merely an illusion. Obviously, about two seconds after the first “Euro bond” was issued, Wall Street would wave its magic wand, and instantly a “credit default swap market” would be created for Euro bonds as well – within its private, totally unregulated derivatives “casino”. Instantly Wall Street would be able to drive-up interest rates on the Euro bonds exactly as it is currently doing to these nations individually.


    All that creating a Euro bond would accomplish is it would allow Wall Street to simultaneously blood-suck all of Europe with a single terrorist attack. To construct a simple analogy, you live in a house where “terrorists” are planting a bomb outside your front door every day. Instead of putting a stop to the terrorism, you simply move to the house next door – and naively believe that the terrorist attacks will stop. Except in this case it would be like several terrorist-victims all moving into the same house, and believing themselves now to be safe, when all they have done is make things even easier for the terrorists...


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

  • P I G S = Euro in Gefahr

    Economic Rape of Europe Nearly Complete, Part III



    In Part I of this series, I reviewed the campaign of U.S. “economic terrorism” which has ravaged many of the economies of Europe – and set the stage for their economic destruction. In Part II, I identified three of the most important strategies which will be used to “finish the job”, and discussed one of them: either to steal the national gold reserves of these nations, or to hide the fact that those national hoards of gold were already squandered.


    In this installment I will focus on the second strategy for completing the looting of Europe. It is a mere two-word phrase, and arguably the most-odious two-word combination in the realm of 21st century economics: “loss guarantees”. It is the ultimate form of “welfare” for both the banker Oligarchs and the bond parasites, and the principles behind it are extremely simple...


    ...We see exactly the same pattern forming with Europe’s deadbeat-debtors as we saw in the U.S. with the deadbeat-bankers. Hide and lie about the magnitude of losses. Attach binding “guarantees” to those losses – which are nothing but pre-approved hand-outs – and then plunder every last drop of wealth out of these economies in (relatively) small installment payments. Just as the “math” associated with the Wall Street welfare proves that these are “guaranteed losses” rather than mere loss-guarantees, so too do the numbers from Europe tell the same story.


    After two years of “fixing” and “rescuing” the economies of the Euro debt-sinners, every one of those economies is less-solvent today than it was when this farcical process began – except for Iceland, which refused to capitulate to the banksters with its own loss-guarantees, and has thus escaped from the banksters’ choke-hold.


    Note that only part of the problem here was the original losses caused by the crime-spree of Western multi-national bankers. Much (most?) of the damage has in fact been caused by the scorched-Earth “austerity” preached by economic neo-Nazi, Milton Friedman. As the eminent Naomi Klein chronicled in her critically-acclaimed body of work titled “The Shock Doctrine”, any/every economy exposed to Friedman’s rape-and-pillage “capitalism” has been destroyed by it.


    The notable exceptions to this are the two “champions” of Friedman’s fascist doctrine: the U.S./UK “Axis of Evil”. Klein first lays-out how these two disciples of this sadistic ideologue were implementing his (literally) “bankrupt” policies on one nation after another. Frequently, Friedman’s economic rape was imposed on its victims through overthrowing the legitimate democracies of these nations; installing brutal, military dictatorships; and then torturing the local populations into submission. Economically, however, the chronologies are all identical: total economic collapse...


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

  • GOLD : Märkte und Informationen



    Danke, Teddy!