Wednesday, August 31, 2011

PAUL CRAIG ROBERTS: The Last Whistleblower

http://www.informationclearinghouse.info/article28992.htm#idc-cover

Fix the Banks!

http://usawatchdog.com/fix-the-banks/

 ...billions of dollars of underwater mortgage-backed securities and real estate sitting on the balance sheet is held at imaginary values to make many banks look solvent when, in fact, they are not. 
This is opposite of the way the IRS values assets. The price of something is based on what the asset is worth today. This is called mark to market accounting.

Tuesday, August 30, 2011

THE TRUTH CAN BE FUNNY AND SAD AT THE SAME TIME

THE NEW BOOK FROM ANDY BOROWITZ
Borowitz Report
August 30, 2011

Cheney’s Book Features Foreword by Satan

‘Couldn’t Put it Down,’ Says Prince of Darkness

NEW YORK (The Borowitz Report) – Publishing circles were abuzz today with the news that the new memoir by former Vice President Dick Cheney features a foreword by an unusual contributor: Satan.

In his introduction, the Prince of Darkness said he rarely reads political memoirs but made an exception in the case of Mr. Cheney “because we had worked so closely together in the past.”

When he began to read the Cheney manuscript, however, the Lord of Misrule said he was “surprised” by what he found.

“Quite honestly, I couldn’t put it down,” Satan wrote. “It was almost like a book I would have written myself.”

In what could be construed as minor criticism of the book, Satan admitted he was “miffed” that Mr. Cheney took total credit for the idea of invading Iraq, but added, “We were such close collaborators at the time, it may be hard for Dick to remember whose idea was whose – half the time we were finishing each other’s sentences.”

While Satan said he is unlikely to make a habit of writing introductions to books, he said that he could foresee making another exception in the future: “I’ve heard Rupert Murdoch is working on his memoir.”

Elsewhere, after Rep. Michele Bachmann (R-Minn) said God created last week’s earthquake and hurricane to punish America, God issued this rebuttal: “Actually, that’s why I created Michele Bachmann.”

A MUST READ ARTICLE...A CLASSIC

I, Pencil By Leonard E. Read

http://www.fee.org/library/books/i-pencil-2

GLEN GREENWALD : The Decade's Biggest Scam

http://www.informationclearinghouse.info/article28983.htm

As Daniel Weeks explains today, the Congress -- contrary to popular opinion -- is not "broken"; it is working perfectly for its actual owners. Or, as he puts it, "Washington isn't broken -- it’s fixed":
Our problem today is not a broken government but a beholden one: government is more beholden to special-interest shareholders who fund campaigns than it is to ordinary voters. Like any sound investor, the funders seek nothing more and nothing less than a handsome return -- deficits be darned -- in the form of tax breaks, subsidies and government contracts.

 fighting Terrorism isn't the goal that security spending is supposed to fulfill;

the security spending (and power vested by surveillance) is the goal itself, and Terrorism is the pretext for it.

For that reason, whether the spending efficiently addresses a Terrorism threat is totally irrelevant.

Monday, August 29, 2011

MATT TAIBBI: Obama Goes All Out For Dirty Banker Deal

http://www.rollingstone.com/politics/blogs/taibblog/obama-goes-all-out-for-dirty-banker-deal-20110824

GLEN GREENWALD ON DICK CHENEY: The Fruits of Elite Immunity

http://www.informationclearinghouse.info/article28970.htm

Dick Cheney will prance around the next several weeks in the nation's largest media venues, engaging in civil, Serious debates about whether he was right to invade other countries, torture, and illegally spy on Americans, and will profit greatly by doing so.

FOLLOW THAT DREAM...STARRING ELVIS PRESLEY

I STRONGLY SUGGEST YOU ALL RENT THIS VIDEO AND WATCH IT ALL THE WAY THROUGH.

IT'S THE STORY OF A WELFARE FAMILY THAT HOMESTEADS IN FLORIDA AND BATTLES WITH THE GUV'MINT AND PROFESSIONAL GAMBLERS.

MADE IN 1962. IT HAS AN INGENIOUS SCRIPT INVOLVING THE LOGIC OF THE THEN WELFARE SYSTEM, BANKERS' LOGIC, ETC.

DRAW YOUR OWN CONCLUSIONS AS TO HOW THIS MENTALITY IN 1962 LED US TO WHERE WE ARE NOW.

A TRULY FUNNY AND INSIGHTFUL SCRIPT. (TWO AND A HALF HOURS OF FUN).

I GRADUATED FROM HIGH SCHOOL IN 1962, SO THIS IS ESPECIALLY RELEVANT TO ME.

Friday, August 26, 2011

US Government Asset Seizures on the Rise

http://dailyreckoning.com/us-government-asset-seizures-on-the-rise/

It’s truly staggering to think about how much can be taken away from you in the blink of an eye, all without any judicial oversight or right to a hearing.

WALL STREET JOURNAL ARTICLE:

 Federal Asset Seizures Rise, Netting Innocent With Guilty


http://online.wsj.com/article/SB10001424053111903480904576512253265073870.html

THE NEW BOOK FROM ANDY BOROWITZ
Borowitz Report
August 26, 2011

Internet Outages from Hurricane Could Force People to Interact with Other People, Officials Warn

FEMA: Prepare for Unwanted Eye Contact, Awkward Silences

WASHINGTON (The Borowitz Report) – As Hurricane Irene prepared to batter the East Coast of the United States, federal disaster officials warned that Internet outages caused by the storm could force people to interact with other people for the first time in years.

News of the possible interpersonal interactions created panic up and down the coast as residents braced themselves for the horror of awkward silences and unwanted eye contact.

And as officials warned people in the hurricane zone to stay indoors, residents feared the worst: conversations with members of their immediate family.

At the Federal Emergency Management Agency, FEMA chief Craig Fugate offered these words of advice for those who may be forced into direct contact with other human beings: “Be prepared. Write down possible topics to talk about in advance. Sports is a good one, and of course the weather. Remember, a conversation is basically a series of Facebook updates strung together.”

He also offered these words of hope for those trapped interacting with other people due to an Internet outage: “At some point, the wifi will go back on, and hopefully you won’t have to go through anything like this again for a long, long time.”

In a related story, the Rev. Pat Robertson said the best way to prepare for Hurricane Irene is not being gay.

MARTIN ARMSTRONG: GOV'T HIDES ITS HEAD IN THE SAND, DIRECT vs INDIRECT INTERVENTION, & THERE JUST AIN'T NO MIRACLES ON 34th STREET

http://www.10sigma.com/files/Direct%20vs%20Indirect%20Intervention%2008-26-2011.pdf

CREDIT TO WERNERUL FOR THE LINK

MARTIN ARMSTRONG: PLUNGING GOLD, CROUCHING DOW

http://armstrongeconomics.files.wordpress.com/2011/08/armstrongeconomics-plunging-gold-082511.pdf

CREDIT TO WERNERUL FOR THE LINK

Wednesday, August 24, 2011

British government begins stealing its peoples’ bank deposits ahead of the global financial collapse.

http://presscore.ca/2011/?p=3598

It happened before and it is starting again. Government confiscating (stealing) the people’s life savings. Just like in 1929 the British government began its theft of the people’s life savings just before the Great Depression. After an inflationary run-up in prices and asset values, the stock market crashed in 1929, and the economy soon went with the crash. This time the British government is disguising its outright theft by claiming the entire contents of safety deposit banks are owned by criminals and the contents are the proceeds of crimes.

'Whatever It Is, I'm Against It'

http://www.informationclearinghouse.info/article28924.htm

Trust Groucho the great philosopher of "Horse Feathers" to nail today's destructive negative feedback loop (singing):

Whatever it is, I'm against it. No matter what it is or who commenced it, I'm against it.

Your proposition may be good, But let's have one thing understood, Whatever it is, I'm against it.

And even when you've changed it or condensed it, I'm against it.

Tuesday, August 23, 2011

Ron Paul - The Revolution & The Anti-War Movement




WAR DOES NOT DETERMINE WHO IS RIGHT...

ONLY WHO IS LEFT

Paul B. Farrell A ‘no-growth’ boom will follow 2012 global crash

There is a global economic boom coming, but unfortunately, that boom comes only after a systemic collapse of the global economy, markets and capitalism — a collapse that may well eliminate billions of people from the planet. Shocking? Cruel? Brutal? Yes.

http://www.marketwatch.com/story/a-no-growth-boom-will-follow-2012-global-crash-2011-08-23?link=home_carousel

FUNNY STUFF

"Recently, during research at my Crystal Falls laboratory, my ‘assistant’ DJ and I discovered the following element. I am reasonably confident that other like-minded individuals have uncovered this same truth. We have been able to publish our findings ahead of the rest. You may all use your own capable scientific minds in applying simple logic to confirm our results. 

This is the discovery of the heaviest element yet known to science. The new element, Governmentium (Gv) has one neuron, 25 assistant neurons, 85 deputy neurons, and 198 assistant deputy neurons, giving it an atomic mass of 312 These 312 particles are held together by forces called morons, which are surrounded by vast quantities of lepton-like particles called peons. Since Governmentium has no electrons, it is inert; however, it can be detected, because it impedes every reaction with which it comes into contact. A minute amount of Governmentium can cause a reaction that would normally take less than a second to from four days to four years to complete. Governmentium has a normal half-life of 2-6 years, it does not decay, but instead undergoes a reorganization in which a portion of the assistant neurons and deputy neurons exchange places. In fact, Governmentium’s mass will actually increase over time, since each reorganization will cause more morons to become neurons, forming isadopes.

This characteristic of moron promotion suggests that Governmentium is formed whenever morons reach a critical concentration. This hypothetical quantity is referred to as critical morass. When catalyzed with money, Governmentium becomes Administration, an element that radiates just as much energy as Governmentium since it has half as many peons but twice as many morons.”

Author unknown, but greatly appreciated.

Sunday, August 21, 2011

GOLDTRADER GETS STUNG BY YELLOW JACKETS... CALLS AMBULANCE

TO ALL...

SATURDAY I GOT STUNG AT LEAST FIVE TIMES BY YELLOW JACKETS AS THEY SWARMED ME WHEN I WAS SEARCHING FOR SOME AUTO PARTS IN A STORAGE TRAILER IN AN AREA THAT RARELY GETS ANY HUMAN TRAFFIC.

I BEGAN TO ITCH BADLY EVERYWHERE, JUMPED IN A COLD SHOWER AND SCRATCHED EVERYWHERE WITH A HARD BACK BRUSH. I THEN CALLED MY FRIEND WHO OWNS THE RANCH WHERE I LIVE AND WHO JUST BOUGHT A HOUSE FIFTEEN MILES AWAY AND HAS MOSTLY MOVED HIS STUFF OVER THERE.  SO I WAS ALL ALONE. I THEN CALLED 911. THE FIRE STATION IS ONLY FOUR MILES AWAY BUT THERE IS TWO MILES OF GRAVEL ROAD OFF THE PAVEMENT TO GET TO THE RANCH.

I WENT ON THE INTERNET TO CHECK OUT THE SYMPTOMS AND TREATMENT FOR THE STINGS.

THE 911 LADY STAYED ON THE PHONE WITH ME AS I BEGAN VOMITING. DIARRHEA HIT ME QUICKLY. BOTH SYMPTOMS OF AN INSECT BITE.

IT WAS HARD TO TALK TO THE 911 LADY AS SHE ASKED ME MANY QUESTIONS AS I WAS GAGGING AND FEELING TOO WEAK TO MOVE OFF MY BED.

THE AMBULANCE FINALLY ARRIVED AND TOOK ME THE 25 MILES TO OUR LOCAL HOSPITAL. THEY GAVE ME SEVERAL SHOTS AS I BROKE OUT INTO HIVES ALL OVER MY BODY AND TURN LOBSTER RED.

I HAD EPIPHENEPHRINE, BENADRYL, STEROID SHOTS AND WAS ON AN IV DRIP OF SALINE AS YOU GET VERY DEHYDRATED.

THE STINGS CAUSE YOUR BLOOD VESSELS TO DILATE WHICH MAKES YOU HAVE THE DIARRHEA. IT ALSO TRIGGERS A BLAST OF ADRENALINE WHICH MAKES YOUR HEART BEAT INCREASE AND MAKES YOU VERY WEAK AND SHAKEY.

MY FRIEND WAS GOING TO PICK ME UP AT THE HOSPITAL, BUT HIS TRUCK BROKE DOWN ON OUR GRAVEL ROAD WHILE HE WAS HAULING HIS FURNITURE TO HIS NEW HOUSE.  WHEN HE FINALLY WAS RESCUED BY HIS BROTHER WHO FINALLY CAME DOWN THE ROAD ( HE LIVES ON A NEIGHBORING RANCH) HE TOOK HIS BELONGINGS BACK TO THE RANCH AS HIS VEHICLES DIDN'T HAVE THE PROPER LIGHTS AND IT WAS NOW DARK.

HE DROVE HIS BROTHER'S TRUCK TO HIS NEW HOUSE AND A FEW MINUTES AFTER HE ARRIVED THERE, THE HOUSE NEXT DOOR EXPLODED AND BURNT TO THE GROUND. IT TOOK THE FIRE DEPT AT LEAST 20 MINUTES TO GET THERE. NO ONE WAS HURT BUT THE HOUSE IS A TOTAL LOSS.

HIS BROTHER FINALLY PICKED ME UP AT THE HOSPITAL AROUND 11:30PM PLUS A HALF HOUR DRIVE HOME.

I STOPPED AT THE DRUG STORE TO GET SOME BENADRYL AND TWO EPI PENS YOU SHOULD ALL HAVE AVAILABLE FOR SUCH EMERGENCIES.

I HAVE BEEN STUNG BY BOTH BEES AND YELLOW JACKETS BEFORE (SINGLE STINGS) BUT HAVE NEVER HAD SUCH A REACTION. THIS TIME INVOLVED AROUND FIVE STINGS IN CLOSE SUCCESSION.

THE YELLOW JACKETS ARE VERY AGGRESSIVE THIS YEAR AND CAN KEEP STINGING YOU MULTIPLE TIMES. BEES LOSE THEIR STINGER AND DIE BUT THE STINGER KEEPS PUMPING ITS VENOM INTO YOU SO YOU SHOULD SCRAPE IT OFF OF YOU. NEVER SQUEEZE IT AS YOU WILL PUSH MORE VENOM INTO YOU.

I FEEL MUCH BETTER TODAY BUT STILL HAVE LARGE RED AREAS AROUND THE STING POINTS.

THIS EXPERIENCE IS THE CLOSEST I'VE COME TO DYING OTHER THAN THE TWO TIMES I CRASHED ON MOTORCYCLES AND ALMOST BLED TO DEATH BOTH TIMES.

IF I HADN'T CALLED 911 IMMEDIATELY, THE SPEED WITH WHICH THE SYMPTOMS CAME ON COULD HAVE EASILY KILLED ME AS I MIGHT NOT HAVE BEEN ABLE TO DIAL 911 IF I HAD BECOME UNCONSCIOUS.

AT LEAST I DIDN'T HAVE A RESTRICTION OF MY AIRWAYS.

NEVER MINIMIZE WHAT THESE LITTLE INSECTS CAN DO TO YOU.

USE MY EXPERIENCE HAS A LEARNING EXPERIENCE AND HAVE BENADRYL AND SOME EPI PENS ALWAYS CLOSE BY AND READ ALL THE DIRECTIONS BEFORE YOU NEED TO USE THEM.

Saturday, August 20, 2011

Jim Sinclair Interviewed by James Turk

DHS Video Characterizes White Americans as Most Likely Terrorists

http://www.infowars.com/dhs-video-characterizes-white-americans-as-most-likely-terrorists/




No matter where you look, from East Germany, to Communist Russia, to Nazi Germany, historically governments who encourage their own citizens to report on each other do so not for any genuine safety concerns or presumed benefits to security, but in order to create an authoritarian police state that coerces the people into policing each other’s behavior and thoughts.

Obama Issues Secret Order For Military Raids On Civilians

http://www.whatdoesitmean.com/index1513.htm

The true reason for Obama signing this secret order to allow US military forces to begin raiding American civilians, this GRU report asserts, is his regimes crackdown against any establishments that sell any type of survival-type supplies as they deem them to be one of the greatest threats to their being able to hold onto power.

Potential Indicators of Terrorist Activities Related to
Military Surplus Stores


Thursday, August 18, 2011

Democrat questions TSA over Israeli-style ‘chat downs’

http://www.rawstory.com/rs/2011/08/15/democrat-questions-tsa-over-israeli-style-chat-downs/

TSA officers will ask passengers a few personal questions and look for signs that they may be hiding something. Suspicious passengers will be sent to a secondary screening or referred to a law enforcement officer.

The Behavior Detection Officer pilot program is part of a nearly $1 billion national program called the Screening Passengers by Observation Technique (SPOT) program.

World Bank head warns of danger ahead

Zoellick says loss of market confidence in economic leadership of key countries has pushed markets into a danger zone.
http://english.aljazeera.net/business/2011/08/2011815032249114.html

US army suicide rate hits new high

http://nation.com.pk/pakistan-news-newspaper-daily-english-online/International/16-Aug-2011/US-army-suicide-rate-hits-new-high

Tuesday, August 16, 2011

MARTIN ARMSTRONG: Big Money & The Economic Depression

http://armstrongeconomics.files.wordpress.com/2011/08/armstrongeconomics-big-money-depression-081611.pdf

MARTIN ARMSTRONG: The 40 Year Anniversary of the Floating Exchange System and the Week from Hell

http://armstrongeconomics.files.wordpress.com/2011/08/armstrongeconomics-40yr-anniversary-floating-exch-system-081511.pdf

THE MEDIA COMPLETELY SHUTOUT RON PAUL'S 'ALMOST WIN' IN IOWA POLL

The Daily Show With Jon StewartMon - Thurs 11p / 10c
Indecision 2012 - Corn Polled Edition - Ron Paul & the Top Tier
www.thedailyshow.com
Daily Show Full EpisodesPolitical Humor & Satire BlogThe Daily Show on Facebook


TOO LATE TO JUMP ON THE GOLDWAGON?

CREDIT TO WERNERUL FOR THE LINK

http://goldswitzerland.com/index.php/too-late-to-jump-on-the-goldwagon-question/

The answer to the above question is a categorical NO.

Paul B. Farrell: Tax the super-rich or riots will rage in 2012

Commentary: 6 reasons we can’t stop coming economic meltdown

http://www.marketwatch.com/story/tax-the-super-rich-or-revolution-will-rage-in-2012-2011-08-16?link=home_carousel

Monday, August 15, 2011

The greatest elected body that money can buy

http://walt.foreignpolicy.com/posts/2011/08/11/the_greatest_elected_body_that_money_can_buy

Just when you think your contempt for Congress could not get any higher, our elected representatives manage to do something to ratchet it up another notch.

$10 Trillion missing from Pentagon since 1991

http://www.informationclearinghouse.info/article28831.htm

"...the U.S. military has squandered via waste, fraud and abuse, up to $10 Trillion since 1991. If that sounds ridiculous, recall that Rumsfeld admitted that the pentagon had "lost" $2.3 trillion in 2001, just one day before the 9-11 attacks."

If The Market Crashes, Who Owns Enough Stock To Even Care?

VERY INTERESTING ARTICLE WITH TWO
VERY ENLIGHTENING AND INFORMATIVE CHARTS
http://www.businessinsider.com/if-the-market-crashes-who-owns-enough-stock-to-even-care-2011-8

Social Security Didn't Create the Deficit

The Real U.S. Budget Problem: Defense & War Spending Equal 94% Of All Federal Income Tax Revenues

http://dailybail.com/home/wake-up-america-the-real-us-budget-problem-defense-war-spend.html

"Your Papers, Please!": WON'T END UNTIL IT'S ASKED OF ALL OF US...EVERYWHERE

Undocumented immigrants face checks on Amtrak, Greyhound:
Federal agents appear to have stepped up checks for undocumented immigrants on public transportation, including Greyhound buses and Amtrak. The feds say they have the authority to check any public area.http://www.miamiherald.com/2011/08/14/2359179/undocumented-immigrants-face-checks.html

ANDY MAKES MORE SENSE THAN THE 'REAL' NEWS REPORTING

THE NEW BOOK FROM ANDY BOROWITZ
Borowitz Report
August 15, 2011

Iowans Thought They Were Voting for ‘Batman’

Surprising Results of Exit Polls

AMES, IOWA (The Borowitz Report) – Exit polls taken after the Iowa straw poll may hold the key to explaining the contest’s surprising results, as a majority of Iowans said they thought they were voting for “Batman.”

“By a wide margin, Iowans were under the impression that they were casting votes for the caped crusader,” said pollster Davis Logsdon of the Opinion Research Institute. “But at the end of the day, they wound up voting for a different comic-book character altogether.”

The Iowa straw poll has reshaped the race for the Republican presidential nomination, with former Minnesota governor Tim Pawlenty withdrawing after a new poll showed he had only three percent name recognition among members of his immediate family.

Former Alaska Governor Sarah Palin made a campaign swing through the state today, urging voters not to defect to her new rival, Rep. Michele Bachmann (R-Minn): “Don’t forget, my fellow Americans, I was a moron before it was cool.”

For her part, Rep. Bachmann gave a major address on science and the humanities today in which she declared the Renaissance unconstitutional.

“I have good reason not to believe in evolution,” she said. “It’s really let me down.”

JIM RODGERS REPEATS THE BASIC SITUATION WHICH WILL NOT CHANGE

Saturday, August 13, 2011

Michael Jackson's video that p****ed the Illuminati off - They Don't Care About Us

Russian Intelligence Calls Facebook “Information Warfare Weapon”

http://www.whatdoesitmean.com/index1511.htm

READ ALL THE LINKS WITHIN THIS ARTICLE

BACHMAN 29%, RON PAUL 28%, RICK PERRY 4%...NO MENTION OF RON PAUL'S SHARED VICTORY AT ALL ON THE NAT'L NEWS TONIGHT

body
Borowitz Report Email
THE NEW BOOK FROM ANDY BOROWITZ
Borowitz Report
August 13, 2011

S & P Downgrades Iowa’s IQ

Straw Poll ‘Alarms’ Ratings Agency

AMES, IOWA (The Borowitz Report) – Calling the results of today's Iowa straw poll “alarming,” Standard and Poor’s took the unprecedented action of downgrading Iowa’s IQ.

While the effects of such an extraordinary measure are hard to predict, experts say the IQ downgrade could result in Iowans having difficulty completing sentences or operating a television remote.

“This downgrade would be very upsetting to Republicans in Iowa,” said an S & P spokesman. “Fortunately, there’s no way they’ll understand it.”

The winner in the straw poll, Rep. Michele Bachmann (R-Minn), gave a rousing victory speech that was simulcast in English across the state.

But there may be tough sledding ahead for Rep. Bachmann, as a new poll shows her losing support to Texas Governor Rick Perry among voters who describe themselves as morons.

Gov. Perry kicked off his presidential campaign today in South Carolina, unveiling a new stump speech in which he promised to repeal the twentieth century.

Friday, August 12, 2011

MARTIN ARMSTRONG'S LATEST ARTICLE

CREDIT TO WERNERUL FOR THE LINK

PULLING THE FOUNDATION STONES OUT OF THE
GLOBAL FINANCIAL SYSTEM
http://armstrongeconomics.files.wordpress.com/2011/08/armstrongeconomics-foundation-stones-out-of-global-system-081111.pdf

THE DAILY RECKONING'S BILL BONNER ON THIS WEEKS HAPPENINGS

Mr. Market's Next Attack
Think $3 trillion in paper losses is bad...wait 'till you see this
Ronan McMahon
Bill Bonner
Whew!

What a week. Traders must be reeling. The rest of us are staggering.

And nobody knows anything.

Is this market going up or down? We don't know. But wherever it is going, it seems to be in a hurry to get there.

It collapsed on Monday, soared on Tuesday, collapsed again on Wednesday and soared again on Thursday. The Netscape News report:

The Dow Jones industrial average soared 423 points. It had already fallen 634 points Monday, risen 429 Tuesday and fallen 519 Wednesday. Never before has the Dow had four 400-point swings in a row.

The pieces of news that sent Wall Street rocketing higher were not exactly blockbusters: Cisco Systems said its profit was better than expected, the job market got a little better, and France tried to raise confidence in its shaken banking system.

But this is a week in which any move by the market — higher or lower — seems to touch off an investor stampede. So it was on Thursday, when stocks shot higher at the opening bell and never turned around.

             So, nobody knows why the stock market went up yesterday. Of course, they don't know why it went down the day before either.

That's why a lot of old market hands get tired of wondering about it. "Just show me the chart," they say. They don't believe it's worth trying to figure out the why...they just look at the pattern.

But when we've looked at the charts we still don't know anything. Maybe the seasoned pros can see things we don't. To us, they're just as confusing as everything else.

Mr. Market is a cagey fellow, no doubt about it. And if he has a story to tell, he keeps it to himself. That said, he's only natural. And there are certain natural laws that even he has to obey.

For example, he can't allow debt to build up forever. There always comes a moment of awful recognition, when lenders realize they've been idiots...when they see that they won't get their money back. Savvy speculators try to sell the debt short before lenders catch on.

Nor can asset prices run too far ahead of real values for too long. Sooner or later comes a moment of reckoning, when asset values and asset prices converge. Savvy speculators bet on convergence. They buy when a stock is far below its real value...and sell when it is far above.

But Mr. Market is a fooler. He doesn't make it easy.

All over the world stocks are down about 20% from their recent peaks and about 5% to 10% for the year. But they're far from cheap. Shiller's normalized earnings put the P/E on US stocks today at about 20. Major bear market bottoms come with the P/E down at 6 to 8. The typical bottom, according to Shiller, comes at about 13.
So, if this were a bear market (we don't know)...and if it were a typical bear market (we don't know that either)...it would bottom out at about 8,000 on the Dow (now, 11,143).

If this were a major bear market, we'd look for a bottom in the 4,000 to 6,000 range.

We don't know what game Mr. Market has in mind. But we know he can play a cruel hand. It's not that he has no sense of pity. He just wants to teach a lesson that investors won't soon forget. Here's what we think he's up to:

First, he will dally around a bit. Let investors recover their breath and their nerve. Then, he'll move prices back up....this would draw more money into the stock market.

When most of the seats in the theater are full look for a furry creature sneaking around with a can of gasoline in one hand and a pack of matches in the other. He'll set fire to it. Stocks will go down...stabilize...then go down again. Then, Warren Buffett will announce that he is buying. The Fed will announce another QE program...perhaps with a different twist.

What ho! Stocks will soar...and then fall again. Down, down, down...they'll drop to their level of March '09...and keep falling until they have finally found their bottom -- maybe 3...maybe 5...maybe 10 years from now.

The bear in the stock market will send investors fleeing to the shelter of the bond market. In a stagnant, Japan-like economy, even with trillion-dollar deficits, bond yields will stay low. Investors will get 2% on 10 year T-notes. "Better than losing money in the stock market," they'll say.

Households will put their savings into US Treasury debt -- something they can count on. Businesses will store their cash in US Treasury debt, after all...no point in investing in new plant and equipment. Financial institutions, too, will seek out US Treasury bonds as the only place where they can still place money safely. Ben Bernanke has pledged to keep the key lending rate near zero. Bankers now know they will be given free money for the next two years. All they have to do is take it...and lend it back to the US government!

And then, when the bond market is fat and happy...and the nation's savings have been transferred to the government and consumed by it, Mr. Market will creep up again -- like a thief in the night -- and give it a wallop.

Just in the last few weeks, stock market investors lost about $3 trillion of wealth -- on paper. How they will look back on these days with pleasant nostalgia! Mr. Market's next attack on stocks will wipe out $10 trillion. And when he whacks the bond market, he'll take out another $10 trillion.

And this time, it won't be just ‘paper' wealth. It will be real wealth...the savings built up over millions of lifetimes of hard work.

And more thoughts...

Have the riots reached New York or Boston yet?
As Dear Readers know, we have wondered what this Great Correction really intends to correct. At a minimum, it seems destined to correct the 50+ year build-up of debt. But maybe it will destroy modern social-welfare governments too.

The model is simple enough: citizens give up a portion of their freedom and a portion of their money. In return they get safety...protection...and something for nothing. The typical voter believes he will get more than he paid for...he counts on his government to rob those richer than he is and transfer the loot to him.

The system works -- for a while. But as these governments mature they become more expensive, rigid, and zombified. More and more people find ways to get something for nothing. More and more join the underclass, because it is easier to live at someone else's expense, even if you can't live very well. Pretty soon, there are zombies all over the place.

The Cameron government in the UK -- like almost all social welfare governments -- spends more than it can afford. It realized it had to stop feeding the zombies so much. It announced cut backs. This week, the zombies counterattacked.

‘They don't treat me right,' said one zombie quoted in the International Herald Tribune. ‘They just give me enough money to eat and watch TV.'

When they are not eating at taxpayer expense...or watching TV at taxpayer expense...in an apartment paid for at taxpayer expense...wearing clothes furnished at taxpayer expense, they are likely communicating by cellphone or Blackberry or I-phone, also provided at taxpayer expense. This week, the zombies got in touch with one another and decided to upgrade their lifestyles by breaking into shops and stealing things. That too, was at taxpayer expense. But it wasn't an expense authorized by the peoples' representatives in Parliament. The zombies had declared war.
The British feds were outraged. They had spent so much money on these people. Why were they biting the hands that fed them? Ah...you know the answer, Dear Reader. Because the system had turned almost a whole generation of people into zombies. Zombies are used to getting something for nothing. If they get it from the feds ...or take it directly, what is the difference? And what else do they have to do? Watching TV all day is boring. For a brief time this week, zombies were on the march.

It probably won't be the last time. The Zombie Wars have begun.

Regards,

Bill Bonner,
for The Daily Reckoning

GARY NORTH ON THE ECONOMY


                                     August 12, 2011
 
  STOCK MARKET VOLATILITY AND THE ELITE

The Dow Jones Industrial Average fell 635 points on
Monday, August 8. On Tuesday, it rose 430 points. On
Wednesday, it fell 520 points. On Thursday, it rose 423
points.

Volatility is a bad sign. It indicates that experts
who allocate trillions of dollars worth of stocks are not
remotely sure what lies ahead. At any point in time, bulls
and bears are evenly matched. The markets clear, after all.
There is a seller for every buyer. But this week's
matching, day by day and sometimes on the same day, has
involved far greater uncertainty than normal.

World stock markets have been in decline for two
weeks. There are bad days and flat days. There are no good
days, if by good we mean strong upward moves. Hardest hit
has been Germany's DAX, down 20%. This index is made up of
30 major blue chip companies. That the strongest economy in
the West has suffered this big a drop in its major stock
index is very bad news.

An indication of how shaky the European stock markets
are is this. At about 1 p.m., August 11, British time, all
of the European markets shot up. There was a reason. There
was a rumor that Spain and Italy would ban short selling
after markets closed. Then a rumor said Germany would, too.
(http://bit.ly/ShortBan) So, short sellers covered their
positions by buying long contracts. That pushed up prices.

If governments are so foolish as to do this, it will
disrupt orderly pricing. That's what futures markets do:
smooth out fluctuations. Bureaucrats, being economic
ignoramuses, do not understand this. They have a bias
against going short. They do not want honest pricing. They
are like a demented physician who prefers to break a
thermometer rather than treating fevers.

The United States government's debt was downgraded
from AAA to AA+ by Standard & Poor's on Friday, August 5.
This was announced after the stock market had closed. That
triggered the 635-point decline on Monday.

The downgrading was important symbolically: this was
the first downgrade in post-World War II history. It was
not a major factor in terms of the government's solvency.
It was a timid warning by one credit-ratings agency. The
other two major ratings agencies, Moody's and Fitch,
earlier in the week had left their ratings unchanged.
Again, the experts do not agree.

The question is this: What is the trend? The answer is
easy: down.


A LONG-TERM BEAR MARKET

It is easy to identify the peak of the U.S. stock
market: the first quarter of 2000. It was downhill after
that. A Wikipedia entry describes this history accurately.

The International Monetary Fund had expressed
concern about instability in United States stock
markets in the months leading up to the sharp
downturn. The technology-heavy NASDAQ stock
market peaked on March 10, 2000, hitting an
intra-day high of 5,132.52 and closing at
5,048.62. The Dow Jones Industrial Average, a
price-weighted average (adjusted for splits and
dividends) of 30 large companies on the New York
Stock Exchange, peaked on January 14, 2000 with
an intra-day high of 11,750.28 and a closing
price of 11,722.98. In 2001, the DJIA was largely
unchanged overall but had reached a secondary
peak of 11,337.92 (11,350.05 intra-day) on May
21. (http://bit.ly/StocksPeak2000)

What about the S&P 500, a broader index of stocks?
Citing another article on Wikipedia:

The index reached an all-time intraday high of
1,552.87 in trading on March 24, 2000, during the
dot-com bubble, and then lost approximately 50%
of its value in a two-year bear market, spiking
below 800 points in July 2002 and reaching a low
of 768.63 intraday on October 10, 2002 during the
stock market downturn of 2002. The S&P 500
remained below its year 2000 all-time high
somewhat longer than the popular Dow Jones
Industrial Average and the more comprehensive
Wilshire 5000. However, on May 30, 2007, the S&P
500 closed at 1,530.23 to set its first all-time
closing high in more than seven years. The
highest point reached was 1,565.15 on October 9,
2007. (http://bit.ly/SP500performance)

It is now under 1,200. I would call this history volatile.

If you want to know where they are today, visit
www.bigcharts.com. Then click "major market indexes." The
NASDAQ remains a pale imitation of itself: under 2500: down
over 50%. The Dow is under 11,200: down 5%. The S&P 500 is
under 1,200: down 25%.

Then discount this for price inflation. The U.S.
government offers a convenient inflation calculator. Note:
the bureaucrats do not call this a "CPI calculator." They
know what the trend has been ever since 1914, when the
calculator begins: the year the Federal Reserve System
began operations. It is here: http://bit.ly/USinflation.
Consumer prices are 13% higher than in 2000.

There should be no question: the US stock market has
been a bear market for over 11 years.

"Bear market." When was the last time you heard this
phrase applied to the 21st century by any regular
commentator on Tout TV or the mainstream financial
journalism outlets? The next time will be the first. Yet
that is what the U.S. stock market has been.

Here is what every interviewer asks the visiting fund
manager: "What are the best stocks to buy in this market?"
Wrong question. The question should be: "What are the best
stocks to short in this decade-long bear market?"


BIG MONEY AND AVERAGE PEOPLE

According to Vilfredo Pareto's findings in 1897, about
20% of the population in any society owns 80% of the
wealth. In the USA, this is now closer to 20%-85%.
This is an anomaly: a little too concentrated. With respect
to stock ownership, the figure is even more skewed: 10%-
80%.

http://clicks.dailyreckoning.com//t/AQ/AAacIQ/AAapRQ/AASGXA/AQ/Axcnng/RKR9

My guess is that actions by the Federal Reserve System
over the past quarter century have skewed the capital
markets in favor of the rich. But there have been no
detailed studies on this, as far as I know. The existence
of the Pareto distribution has been deliberately ignored by
economists from 1897 until today, since they cannot explain
it. So, they prefer to ignore it. The recent anomalies in
the USA's asset allocation are ignored with the same
fervor.

This means that the average American is not directly
affected by the wild swings in the stock market. He
probably does not have a pension. If he does, he has little
control over it. There are bonds in it if it is managed by
a professional team. If he has decided to put it in stocks,
he has lost a decade. He is closer to retirement than he
was in 2000. He is losing the race to price inflation.

With respect to stocks, the average American is on the
sidelines. He is bothered by the wild volatility of the
stock market, meaning the Dow. He is not an investor in
Asian or European stocks. He knows nothing about them. But
the Dow ought not to do this, he thinks. It should be going
up steadily, like the tortoise racing against the hare.

Instead, he sees stocks going up and down wildly, so
he thinks: "This does not sound good. Why are things so
confused? Are we facing another recession?"

Two weeks ago, the commentators were talking about a
slowdown in American economic growth. Today, the phrase
"double-dip recession" is common. The columnists are asking
whether we are facing such a prospect. There are a lot of
them who are answering "yes."

Here are three underlying questions.

If the stock market is falling, is the economy
worse than I thought? If it's worse than I
thought, should I be cutting back on spending? If
I cut back on spending, should I just put my
money in the bank, even though it pays almost no
interest?

The average Joe is asking these questions. So is the
Average Joe's banker. The banker's bank is the Federal
Reserve System. Banks now have about $1.6 trillion sitting
in accounts at the FED. These excess reserves pay
essentially no interest -- not enough to cover costs of
bank operations. So, banks pay low interest rates to
depositors. But depositors are content, because they fear
the loss of their money. So do their bankers.

When the evening TV news shows feature stock market
reports as the lead stories, they do this because they
think viewers care. Viewers do care, but only indirectly.
They want some sense of what is causing a major increase or
major decline. They want reassurance that things are going
to go well for them. A falling stock market can't be good
for them, they assume. They assume -- correctly -- that
when sophisticated investors start selling shares at lower
prices, there has to be a good reason. A good reason is bad
expectations.


PADDLING UPSTREAM ECONOMICALLY

This economy is in trouble. The more stocks fall, the
more articles we read that explain the falling market. They
go into greater detail on what is going wrong in the
underlying economy.

The bulls -- who have been dead wrong for 11 years --
tell us that these underlying negatives are deceptive. The
underlying positives are stronger. But, for this or that
technical reason, the underlying negatives have prevailed
in the thinking of investors. Then we are treated to a
discussion of how these technical factors in the past were
a prelude to big upward moves in the stock market.

These people do not deal in depth with the underlying
negatives. They assume that previous technical upswings
point to deliverance: a looming return of the bull market.
They never deal with the main question, which is this: "Why
is the US stock market lower today than in 2000?"

Why do they refuse to deal with this? Because
technical factors cannot explain it. Fundamental factors
can. The fundamental factors are negative. More than this:
they are getting worse.

The clearest sign of the problem is the increase in
the Federal Reserve System's monetary base. It went from
about $800 billion in August 2008 to close to $2.7 trillion
today. If things were hunky-dory -- or even merely hunky --
the FED would not have bought this many Treasury bonds and
IOUs issued by Fannie Mae and Freddy Mac. Similarly,
commercial banks would not have increased excess reserves
to $1.6 trillion.

The FED is not just paddling upstream; it installed a
rocket engine and ignited it. Yet the economic results have
been not much better than a used outboard motor.
Unemployment is high. Economic growth never got anywhere
near what has been common in all post-War economic
recoveries from a recession. It is now slowing, despite
QE2.

This was not supposed to happen. The technical
indicators have been superseded by this anomaly: balance
sheet losses. They would be much worse except for the fact
that the scheduled new accounting rules were blocked in the
spring of 2009 by the Financial Accounting Standards Board.
This change has enabled banks to conceal the extent of
their commercial mortgage losses from the public and also
from the bank regulators.

Bankers know how bad their balance sheets really are.
So, they have increased their holdings of excess reserves
at the FED. These excess reserves are their ace-in-the-hole
for another recession, which will produce havoc in the
commercial real estate markets, which are already in a
recession-era condition.

The US economy is struggling. Small businessmen know
this, which is why they are not hiring any of the 14
million unemployed people. The National Federation of
Independent Business represents these people. It surveys
their opinions monthly. They publish this as the Small-
Business Optimism Index. These days, it is not optimistic.

For the fifth consecutive month, NFIB's monthly
Small-Business Optimism Index fell, dropping 0.9
points in July--a larger decline than in each of
the previous three months--and bringing the Index
down to a disappointing 89.9. This is below the
average Index reading of 90.2 for the last
two-year recovery period.

http://clicks.dailyreckoning.com//t/AQ/AAacIQ/AAapRQ/AASGXQ/AQ/Axcnng/qUOG

The unemployed obviously know how bad it is for them.
They have been unemployed longer on average than at any
time since the Great Depression. There is no way to hide
this from anyone. The number of Americans applying for
unemployment insurance for the first time has been steady
at about 400,000 each week. Technically, the recession
began in November 2007. In January 2008, the unemployment
claims figure was a little over 300,000. It started up as
the recession deepened. By the spring of 2009, it was
around 650,000. We have seen improvement, but we are still
in recession conditions with respect to this statistic.

This is the weakest recovery in the post-War era. It
is now fading.

The stock market does not reflect Main Street. The
companies have positive earnings -- profits -- but their
managers are hoarding cash, i.e., putting it into very
short-term loans to top-rated firms.


CONCLUSION

Stocks are held by the elite for the elite. The elite
do not know what they are doing. They have remained in a
bear market for 11 years. Meanwhile, gold rose from about
$250 an ounce to $1,750. Asian stocks soared (not Japan's).

If they're so smart, why aren't they richer? They are
rich, but they have not gotten richer in the 21st century.
They rode the rocket of equity and debt from 1982 until
2000, but then the rocket fizzled.

Volatility is a long-term problem for the elite. The
richest 10% of the population trade ownership of stocks
with each other. It's like a bunch of washerwomen who make
a living by taking in each other's washing. In the larger
picture, the rich are in stagnation mode. Their real estate
is down. Their stocks are down.

The super-rich expected the euro to be the wave of the
future. It is: shaky.

They thought the U.S. government would run surpluses
forever back in 2000. Now they are paid pittances on their
Treasury investments, while U.S. government debt has been
downgraded.

The elite have hit an economic wall. They think they
can get over it, or around it, or under it. So far, they
haven't.

This indicates that they are losing control. New
elites are appearing in Asia.

Note: Over the last eight years, 72 Chinese
billionaires have died, most of them under
strange circumstances. Numbers: 15 were murdered,
17 committed suicide, 7 died from accidents, 19
died from illness, and 14 were executed. There
are 115 alive today. This may not be a good club
to get into.
 
                 

UPDATE ON GOOD BUY IN PRICE FOR CASH GOLD COIN PURCHASES

UPDATE: AUGUST 12, 2011 8:10AM PDST 
GOLD HAS CORRECTED $75 FROM ITS RECENT HIGH. THIS IS A VERY GOOD OPPORTUNITY TO BUY IN.
QUIBBLING ABOUT PRICE NOW WILL HURT YOU LATER!


*****GOLD HAS CREPT UP TO 1735 SINCE I POSTED THIS LAST HOUR*****

FOR MORE DETAILED INFO ON SUPPORT LEVELS FOR GOLD, SEE DAN NORCINI'S RECENT BLOG POST AND CHARTS AT:
http://www.traderdannorcini.blogspot.com/




URGENT WARNING BY GOLDTRADER


IF YOU STILL HAVE ANY MONEY IN A BANK OR OTHER INSTITUTION, YOU SHOULD IMMEDIATELY WITHDRAW IT AND CONVERT IT TO GOLD COINS AND SOME SILVER DIMES.

IF YOU DON'T, YOU WILL BE EXPOSED TO A BANK HOLIDAY (NO WITHDRAWALS ALLOWED, OR SEVERELY LIMITED AMOUNTS)IN THE NEXT FEW DAYS OR MAYBE WEEKS, IF WE ARE LUCKY TO HAVE THAT LONG.

YOU CAN WIRE TRANSFER MONEY TO MONEXIN LARGE AMOUNTS TO BUY YOUR GOLD COINS.

PLEASE CONTACT KATHY LUCATERO ATMONEX.COM EXTENTION 2276


DO NOT QUIBBLE ABOUT PRICES, EVEN IF GOLD CORRECTS A BIT, IN THE LONG RUN YOU WILL NOT ONLY HAVE REAL MONEY, BUT YOU WILL BE PRESERVING WHAT PAPER VALUE ASSETS YOU NOW HAVE THAT ARE RAPIDLY DEPRECIATING RELATIVE TO THE PRICE OF GOLD

PLEASE TELL KATHY THAT GOLDTRADER REFERRED YOU. 

(they 'may' reward me with a few token silver coinsfor the referral...I don't get much, if anything, for the referral. I just trained Kathy to handle my referrals well.)

Wednesday, August 10, 2011

George Carlin ~ The American Dream



WATCH SOME OF THE CLIPS LISTED ON THE RIGHT OF THE PAGE
GEORGE TELLS IT LIKE IT IS!
IF THERE'S A HEAVEN, GEORGE CARLIN DESERVED TO BE IN IT.
ALTHOUGH HE WAS ADAMANT THAT THERE IS NO HEAVEN.

Monday, August 8, 2011

URGENT WARNING BY GOLDTRADER


URGENT WARNING BY GOLDTRADER

IF YOU STILL HAVE ANY MONEY IN A BANK OR OTHER INSTITUTION, YOU SHOULD IMMEDIATELY WITHDRAW IT AND CONVERT IT TO GOLD COINS AND SOME SILVER DIMES.

IF YOU DON'T, YOU WILL BE EXPOSED TO A BANK HOLIDAY (NO WITHDRAWALS ALLOWED, OR SEVERELY LIMITED AMOUNTS) IN THE NEXT FEW DAYS OR MAYBE WEEKS, IF WE ARE LUCKY TO HAVE THAT LONG.

YOU CAN WIRE TRANSFER MONEY TO MONEX IN LARGE AMOUNTS TO BUY YOUR GOLD COINS.

PLEASE CONTACT KATHY LUCATERO AT MONEX.COM EXTENTION 2276

DO NOT QUIBBLE ABOUT PRICES, EVEN IF GOLD CORRECTS A BIT, IN THE LONG RUN YOU WILL NOT ONLY HAVE REAL MONEY, BUT YOU WILL BE PRESERVING WHAT PAPER VALUE ASSETS YOU NOW HAVE THAT ARE RAPIDLY DEPRECIATING RELATIVE TO THE PRICE OF GOLD

PLEASE TELL KATHY THAT GOLDTRADER REFERRED YOU.

(they 'may' reward me with a few token silver coins for the referral...I don't get much, if anything, for the referral. I just trained Kathy to handle my referrals well.)

Sunday, August 7, 2011

PAUL CRAIG ROBERTS: Pakistan TV Report Contradicts US Claim of Bin Laden’s Death

http://www.informationclearinghouse.info/article28772.htm

MICHAEL MOORE: 30 Years Ago Today: The Day the Middle Class Died

http://www.informationclearinghouse.info/article28774.htm

NOAM CHOMSKY: America In Decline

http://www.informationclearinghouse.info/article28767.htm

"Before the 2007 crash for which they were largely responsible, the new post-Golden Age financial institutions had gained startling economic power, more than tripling their share of corporate profits. After the crash, a number of economists began to inquire into their function in purely economic terms. Nobel laureate Robert Solow concludes that their general impact may be negative: “The successes probably add little or nothing to the efficiency of the real economy, while the disasters transfer wealth from taxpayers to financiers.”

By shredding the remnants of political democracy, the financial institutions lay the basis for carrying the lethal process forward – as long as their victims are willing to suffer in silence."

The Credit Crisis Rages On; Why the Dow fell 512 points on Thursday

http://www.informationclearinghouse.info/article28775.htm

How Much Is A Trillion?

How Much Is A Trillion?
A million seconds is 12 days.
A billion seconds is 31 years.
A trillion seconds is 31,688 years.
A million minutes ago was - 1 year, 329 days, 10 hours and 40 minutes ago.
A billion minutes ago was just after the time of Christ.
A million hours ago was in 1885.
A billion hours ago man had not yet walked on earth.
A million dollars ago was five (5) seconds ago at the U.S. Treasury.
A billion dollars ago was late yesterday afternoon at the U.S. Treasury.
[Note: this was pre-Obama]
One trillion seconds ago - 31,688 years - Neanderthals stalked the plains of Europe.
Million: 1,000,000
Billion: 1,000,000,000
Trillion: 1,000,000,000,000
And we the people of the USA, formerly the richest and most abundantly resourced continent on the face of this planet owe 14 of them to the private banking cartels.

Top 10 Survival Tricks for When the Zombie Apocalypse Hits

http://lifehacker.com/5828336/top-10-survival-tricks-for-when-the-zombie-apocalypse-hits?utm_source=Lifehacker+Newsletter&utm_campaign=66205f1da1-UA-142218-1&utm_medium=email

Saturday, August 6, 2011

MARTIN ARMSTRONG'S LATEST ARTICLES

http://armstrongeconomics.com/martin_armstrong_writings/

Writings from Martin Armstrong:

Debt Deal Graphics

http://napoleonlive.info/see-the-evidence/debt-deal-graphics/

Run On US-European Banks Brings World To Brink Of War

http://www.whatdoesitmean.com/index1509.htm

THE WORLD ECONOMY IS FALLING APART FASTER EACH DAY

THIS ONE IS FOR THE THINKING ADULTS AMONG US

Tell Me Again: Who's the Stupid/Weak/Incompetent One?

BY ARTHUR SILBER
HIS BLOG IS CALLED 'ONCE UPON A TIME'
http://powerofnarrative.blogspot.com/2011/08/tell-me-again-whos-stupidweakincompeten.html
WARNING: HE USES STRONG LANGUAGE
YOU SHOULD READ AS MANY OF HIS ARTICLES AS POSSIBLE

Friday, August 5, 2011

AT LEAST ANDY BOROWITZ GIVES US A LAUGH BETWEEN OUR SOBS OF DESPAIR

BOROWITZ IN SF OCT 4
Borowitz Report
August 5, 2011

Moody's Downgrades US Credit Rating to "It's Complicated"

China Unresponsive to Treasury Dept.’s Friend Request

WASHINGTON (The Borowitz Report) – The US economy suffered another setback today as Moody’s downgraded the US’s credit rating to “It’s Complicated.”

At the Treasury Department, Treasury Secretary Timothy Geithner acknowledged that an “It’s Complicated” rating was not ideal but added that he was hopeful it would not affect the Chinese government’s level of interest in Treasury bonds.

“We have sent a friend request to China this morning,” Sec. Geithner told reporters. “We are still waiting for them to friend us back.”

But in an extraordinary step, the Chinese government announced today that it was “blocking” the United States, suggesting that its relationship with US Treasuries was at an end.

Perhaps attempting to soften the blow, the Chinese government later issued this official statement: “It’s not you, it’s us.”

In other economic news, the US added jobs in the auto sector, which for many Americans is now the same thing as the housing sector.

Thursday, August 4, 2011

JIM SINCLAIR ON GOLD

The Third Phase In This Gold Bull Market



Dear Extended Family,
I am in London this evening in my room posting as much serious material as possible to help you understand the new nature of gold; a nature fraught with unprecedented volatility. I will deliver my presentation tomorrow. Right now we have to talk.
Gold from $248 to $524.90 was an arithmetic uptrend based on a re-birthing of gold’s currency roll.

When gold broke out above $524.90 I asked you to please cease trading as gold had moved from phase 1 into a runaway price phase 2. It is this phase which has given you prices in excess of $1650.

$1764 has the same significance as $524.90 because it represents phase 3, the point when a runaway price market for gold would gain exponential properties.

Because $1764 is such significant a number you can expect one of the more serious price battles before the price departs to Alf Fields’ and Armstrong’s higher potentials.
To sum up the situation you haven’t seen anything yet.

As strange as it sounds right now, soon you will begin to see the bearish cabal on mining shares looking for cover where gold will be sold for correct precious metals shares.

Keep the faith. $1650 has been the minimum upside since $248, not the most likely top.

Respectfully,
Jim

Market Commentary From Monty Guild

STRONGLY RECOMMENDED READING

The Debt Ceiling Raised, but Mega Problems Still Unresolved
Your Cost of Living — Don’t Believe the Government Data
Government Statistics: Caveat Emptor
Muddying the Budget Waters
http://www.jsmineset.com/2011/08/04/market-commentary-from-monty-guild-96/