Mining Profits off by 49% – How to Create the Next Cycle
Part of the reason when commodities must fall is largely due to the fact that a 13 year rally inspired the expansion of production. We saw the same thing develop into 1980 and the collapse thereafter shut down new mines. As prices fall, profits decline forcing the closure of marginal operations that became possible only because of the price advance.
As profits decline, production fall and thus the cycle for the next rally is being created. This is simply how things really function. Australian mining profits are down 49%.
Part of the reason when commodities must fall is largely due to the fact that a 13 year rally inspired the expansion of production. We saw the same thing develop into 1980 and the collapse thereafter shut down new mines. As prices fall, profits decline forcing the closure of marginal operations that became possible only because of the price advance.
As profits decline, production fall and thus the cycle for the next rally is being created. This is simply how things really function. Australian mining profits are down 49%.
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Ignorance & the Destruction of Knowledge
So many of the ancient statutes are headless because religious people assumed they were false gods and destroyed them. The destruction of libraries have been far too common throughout history. Even the Nazis in Germany had the great book burning. This is why history repeats – human nature never changes. This was illustrated again as people secretly smuggled out their national library to protect it from religious Islamic extremists. Whatever man has done before regardless of religion or the century, he will do again and again.
So many of the ancient statutes are headless because religious people assumed they were false gods and destroyed them. The destruction of libraries have been far too common throughout history. Even the Nazis in Germany had the great book burning. This is why history repeats – human nature never changes. This was illustrated again as people secretly smuggled out their national library to protect it from religious Islamic extremists. Whatever man has done before regardless of religion or the century, he will do again and again.
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John McCain Voted to Put Taxes on Internet
I have worked with politicians in Washington for 30 years. It has never been as bad as it is today. There is nobody worthwhile to even speak to anymore. I really see no difference between Republican and Democrat. People who think impeaching Obama would actually accomplish anything do not realize that there are people in the bureaucracy that pull the strings. We have lost all representation. This is part of the reason why we must crash and burn. Hoover said when government gets enraged it burns down the barn to get the rat. In this case, the barn is infested and there is no single rat. There would have been no difference had Romney been elected or McCain. Any career politician does as he is told. The same bills would have been submitted by the same people and the vote would have been the same. That is the REAL story about Washington. Politics is but a delusion to keep us occupied believing we have a voice when we do not. It is all the same.
Here is Senator McCain, a Republican who claims to be against raising taxes. Had he been elected, there would have been no difference from Obama. This man voted to imposed the taxation on the Internet and is proud of it. Here is his email to one of our readers.
Sent: Wednesday, May 15, 2013 12:00 PM
To:————————–
Subject: Correspondence from Senator McCain
May 15, 2013
……
Dear …..:
Thank you for contacting me regarding S. 743, the Marketplace Fairness Act. I appreciate knowing your views on this issue.
On May 7, 2013, I voted to support the Marketplace Fairness Act because this bill will ensure that sales tax is collected on all purchases, regardless of whether in a brick and mortar retailer or through internet transactions. As such, states and localities will have a mechanism to collect sales tax already owed by consumers making transactions over the internet. This bill does not create a new tax for consumers, it simply will enable states to require online retailers to use software to collect taxes at the time of transaction. This bill does protect small online businesses, as it exempts retailers with less than $1,000,000 in out of state sales from collecting tax on internet sales.
Thank you again for writing to me. Please feel free to contact me if you have any other comments or questions.
Sincerely,
John McCain
United States Senator
JM/js
I have worked with politicians in Washington for 30 years. It has never been as bad as it is today. There is nobody worthwhile to even speak to anymore. I really see no difference between Republican and Democrat. People who think impeaching Obama would actually accomplish anything do not realize that there are people in the bureaucracy that pull the strings. We have lost all representation. This is part of the reason why we must crash and burn. Hoover said when government gets enraged it burns down the barn to get the rat. In this case, the barn is infested and there is no single rat. There would have been no difference had Romney been elected or McCain. Any career politician does as he is told. The same bills would have been submitted by the same people and the vote would have been the same. That is the REAL story about Washington. Politics is but a delusion to keep us occupied believing we have a voice when we do not. It is all the same.
Here is Senator McCain, a Republican who claims to be against raising taxes. Had he been elected, there would have been no difference from Obama. This man voted to imposed the taxation on the Internet and is proud of it. Here is his email to one of our readers.
Sent: Wednesday, May 15, 2013 12:00 PM
To:————————–
Subject: Correspondence from Senator McCain
May 15, 2013
……
Dear …..:
Thank you for contacting me regarding S. 743, the Marketplace Fairness Act. I appreciate knowing your views on this issue.
On May 7, 2013, I voted to support the Marketplace Fairness Act because this bill will ensure that sales tax is collected on all purchases, regardless of whether in a brick and mortar retailer or through internet transactions. As such, states and localities will have a mechanism to collect sales tax already owed by consumers making transactions over the internet. This bill does not create a new tax for consumers, it simply will enable states to require online retailers to use software to collect taxes at the time of transaction. This bill does protect small online businesses, as it exempts retailers with less than $1,000,000 in out of state sales from collecting tax on internet sales.
Thank you again for writing to me. Please feel free to contact me if you have any other comments or questions.
Sincerely,
John McCain
United States Senator
JM/js
1984 is here 2014
The primary reason why I have been touting that we no longer need taxation at the federal level is because money is no longer tangible. The evolution of money migrating to simply electronic actually allows the restoration of freedom. Taxes were once needed when money was tangible because it could not be created. The diehard Goldbugs want a return to austerity making money gold to end inflation and force government responsibility of which cannot be created by changing the monetary system. That is like fining the wife because the husband forgot to take out the trash. We must deal DIRECTLY with the problems.
Converting money into some savings account will not work. The medium of exchange has no mythical perpetual value while everything else floats including wages and investments. Yet if everything else floats, how is it possible that only money remains fixed? If everything else can rise in value, it is measured inMONEY and thus the purchasing power of money MUST decline. You cannot have it both ways.
So let us look at the practical position in which we now find ourselves. Governments are dead broke. They blame us for expecting that they actually honor their promises calling us the “greedyist generation”. We are losing all freedom, rights, privileges, and immunities simply because they need money to pay the bond holders (austerity) to retain this value of money exactly what the Gold Standard advocates demand, which is now sucking the lifeblood out of society, reducing our standard of living, and imposing DEFLATIONARY effects.
With about 70% of all national debts composed of accumulative past interest expenditure, the debts are exploding driven by socialism, which is now collapsing. The very theory of socialism has failed to materialize because the bulk of the money created went to bondholders not consumers and so the claims they are taking from the rich to give to the poor have proven false – just follow the money. This has created an army of lobbyists (official bribery) and corrupted everything within government from pensions to hiring of political family members.
There is no hope. Changing what money is will not fix the system. This time, we really have to burn down the barn to get rid of all the rats. Debt has historically always been the great destroyer. So what can we do given the cards that have been dealt? This is a high-stakes black-jack game for life.
Since money is electronic and nearly 40% of government exists to extort money from the public to sustain itself, the solution can only be total reform. We must eliminate income tax, reduce the size of government dramatically as a result, collapse all regulation of any industry into a single agency, privatize virtually everything so it is far better to have private companies bidding for the job where their workers must perform and live like the rest of us without special exemptions, eliminate career politicians by creating one-term one-time one-year intervals where people from the private sector actually oversea government, no major spending or program without a real democratic vote – no representatives, do all of this and we will eliminate most lobbying and corruption since the bulk of that is for taxation.
Right now, liberty is vanishing all because they need money. If we eliminated income tax and people paid local taxes purely on consumption also eliminating property taxes, then it matters not who is here for everyone would pay for local government, which would force them to be competitive. We nee solid laws to limit the size of local government with criminal penalties for corruption.
Take the new immigration reform measure that the Senate began debating, that would create a national biometric database of virtually every adult in the USA. This becomes the final straw in eliminating all rights and privacy creating an ubiquitous national identification system that is buried deep within the more than 800 pages of the bipartisan legislation. There we find frightening language that mandates the creation of the “photo tool,” that is effectively a massive federal database containing names, ages, Social Security numbers and photographs of everyone in the country with a driver’s license or other state-issued photo ID. Who will administer this? The Department of Homeland Security of course. See why they need tanks?
While this legislation is being touted as the key piece for the Border Security, Economic Opportunity, and Immigration Modernization Act, it is really aimed not at really curbing employment of undocumented immigrants, but of keeping track of who everyone really is. Employers will be obliged to look up every new hire in the database and to verify that they match their photo, with criminal penalties of course for failing to do so.
It is simply inevitable that police already have a photo gun and shoot it at your face that will then identify you you are by photo recognition. This will end having to prove who you are for everything from hotel rooms, travels, right down to voting. The will expand it to renting a house, opening a bank account, wiring money, acquiring any credit, buying a gun, and eventually going to the movies, concert, or a sporting event. Bloomberg wants a fingerprint now to log into their system, they will switch to photo ID linked to the government database and then they can see what you are looking at before you trade. It would be easy to end anonymity on the internet.
This is changing the relationship between the citizen and state. We are already being hunted for cash. They will have records of absolutely everything about you and what you do. See, George Orwell was on the money after-all.
Metal Market Recap
The month end closing for gold was 1392.60 holding the main Month Bearish while electing 1462.50, warning that yes we are still in a correction mode, but crisitcal support is holding for now.
When we look at Copper, the primary support lies at 303 whereas this has held intraday falling to 305, but again, it appears we could still see some lower prices ahead.
There has been no bounce of that magnitude as yet. The market energy is still rather flat.
Seniors Are the Greediest Generation
Alan Simpson, Wyoming Republican Senator who became co-chair of President Obama’s deficit commission, called senior citizens the “Greediest Generation” as he compared Social Security to a Milk Cow with 310 million teats. This career politician’s comments illustrates the entire problem why we do not have a democracy. These people rig the game to get elected, pretend to be “representing the people”, yet quickly see themselves as THE government and hence opposed to the people. Alan Simpson has a pretty low opinion of the people that have PAID into Social Security all their lives and now expect to get something back. If anyone in the private sector sent up a fund, you gave them your money, but when you ask for it back they call you a greedy bastard. That is callFRAUD outside in the real world. But this is what we are facing. Not the risk ofHYPERINFLATION because they have the bankers demanding “real” cash, so they simply flip the facts and call you a greedy worthless individual because you dare to have believed their promises.
This is why when the dust settles from this catastrophic collapse in socialism as took place with Rome who also promises pensions and could not pay, remember one thing. We need a REAL democracy and that means brief one-year terms one-time only where the people oversee the bureaucrats. Everything possible should be privatized to eliminate the erosion of our rights by the bureaucrats.
No matter what civilization you investigate, the common thread if corruption leads directly to the bureaucrats and the judges. Ind China, it was the minister Chao Cuo (? – 154BC) who under the previous emperor Ching-ti (Liu Ch’i)(157-141BC), earned the hatred of other ministers after he introduced 30 new laws. All of these laws were against the people furthering the power of the bureaucrats. The outrage was so intense, Chao Cuo was dragged out of his prestigious office and executed in wearing his judicial robes in the town marketplace. There was far greater resistance toward changing the laws in China than there was in Rome.
President Barack Obama’s bipartisan deficit commission lashed out at seniors for having the audacity to expect to receive what they were promised. As I have said before, what we face is the breakdown of society. You will PRAY forHYPERINFLATION before this is over because they politicians would print money and try to honor their promises. We are headed in the opposite direction that has historically always been the case when empires, nations, and city states collapse from debt.
The Wiemar Republic and Zimbabwe were unable to sell their debt and in fact Germany was a communistic revolutionary government that had no bonds because who in their right mind would have lent them even a pair of shoes when they were inviting Russia to come take Germany?
The attitudes emerging in Europe, Canada, USA, and Japan among politicians is indeed the same that we are expecting too much. This is the danger of career politicians. This is the real cause behind even Julius Caesar crossing the Rubicon. Like the press today, they spun stories to demonize Caesar when in fact all the Italian cities opened their gates and cheered him on while the politicians fled Italy.