It a Shame

It’s a shame that some people are just so desperate that gold has to go to $60,000 an oz but nothing else will change so one ounce will buy 2 Chevys. In 1980 gold touched $875 and the Dow was 1,000. Under this logic, that means gold should be $12,250 right now and since it is not Government must be keeping in down. If government is conspiring to keep gold down, then why do they sell gold coins at lower prices? The business cycle rotates with sectors. Not everything rises the same time. One cycle is commodities 1980, 1985 bonds & dollar, 1987 stock market, 1989 Japan, 1994 emerging markets, 1998 Russia & US Share Market, 2002 Internet Bubble, and real estate 2007. You cannot compare and then declare gold must be $12,250 right now and this must be true and anyone who disagrees is an idiot or part of the conspiracy to keep gold down so government can sell it cheap.. There is ABSOLUTELY no historical precedent for what people are saying – just wild opinion. Everyone has an opinion. That is not research, fact, nor precedent. The system cannot go to $60,000 gold per ounce and then it flatlines there and only gold will do this – nothing else. Rationale people are not going to buy that bullshit! Those and insist upon this nonsense scare rationale people who are then afraid to buy gold for they do not want to be associated with this type of illogical thinking.

If you want to see gold rise on solid ground, keep your mouth shut! A 2 year old with a pocket calculator can figure out the system is going to collapse. You better rethink what you are wishing for because if gold went to $60,000, it would be a criminal act to own it and this time the courts will allow them to search your home without any warrant. Thank God they could care less about gold. They are trying to eliminate all TANGIBLE forms of money to eliminate the underground economy and go electronic they will then know who buys the gold. Why people are so married to this financial-religion centered around gold is mystifying. This is about making money and surviving the Sovereign Debt Crisis. Those yelling about gold and how anyone disagrees with their view should be shot is strangely the same strain of Marxism where the rich have to be the problem.  Not everyone has to share the same religion. The yelling seems to be like desperate people playing nickel slot machines in Atlantic City convincing everyone that they will win – it is just a question of time. Yes – eventually every machine pays off. However, you may run out of nickels before that happens. This is about trading & surviving. Not dogma and bullshit.

Inside Congress

Congress does not get it. Banks should be banks – not traders. I retired from making markets when the model said gold would decline after 1980 and indeed it did into 1999. My view, if I had to speculate to keep the business at that level of profit, I felt I might as well trade my own account without all the hassles. Either you are a bank or a proprietary trader. That is what Glass-Steagall was all about & we would not have needed $700 billion bailout.  Thank you Ex-Treasury Secretary Rubin/former CEO of Goldman/Adviser to Citibank.Why invest in a hedge fund? You lose it is your loss. Invest in a bank. If they lose, don’t worry, Congress will bail them out and praise their stupidity. There are limits to being a genius. But stupidity has no limitation. Look at MF Global. Nobody from NY ever goes to jail even when they get caught trading with other people’s money. Congress, just turns a blind eye all the time.


Subject: Rep. Schweikert in the Hill: “What sin has JP Morgan committed other than being big enough to lose billions?”

What sin has JP Morgan committed other than being big enough to lose billions?
By Rep. David Schweikert (R-Ariz.)

On May 10, JP Morgan Chase Chairman and CEO Jamie Dimon announced a $2 billion loss in the firm’s Chief Investment Office trading portfolio. Since the disclosure, we have heard of investigations by the SEC, the FBI, and DOJ, among others. Dimon appeared before the Senate Banking Committee on June 13 in submission to the committee’s oversight purview, and he will be doing the same today (June 19) before my committee, the House Financial Services Committee.
Some have called for Dimon’s head. Others have invoked the so-called Volcker Rule, bemoaning its current lack of promulgation and calling for regulators to write rules that would be far-reaching and overwhelmingly inhibiting.
In addition to Dimon’s appearances and testimony, the Senate Banking Committee, as well as the House Financial Services Committee, have called upon representatives from financial regulatory bodies to submit testimony on JP Morgan’s trading losses. The questions by Congress range from the ‘how’ to ‘why’ this went undetected by the overseers and what backstops can be installed across the industry to prevent this from happening again.
This is fair.
A more than $2 billion trading loss by a blue chip firm like JP Morgan inevitably roils the marketplace, inadvertently affecting market caps as well as savings and retirement accounts.
We can never unwind the connectivity inherent in our markets, nor should we really be looking to. So it’s reasonable to worry over how to prevent one company’s cold from infecting the group, to borrow from a well-known metaphor.
But what are we looking for from Dimon? An apology? An admission of guilt? What sin has JP Morgan committed other than being big enough to lose billions of their own money in a quarter and still turn a $4 billion profit?
Did the bank violate the Volcker Rule? Volcker’s not actually enforceable yet, and full details of the firm’s losses have yet to be disclosed, but all evidence would indicate that JP Morgan did no such thing.
Was the firm gambling with depositor, taxpayer, or government money?
No on all accounts. So why the public outcry for JP Morgan and Jamie Dimon to explain themselves?
I’d like to pose two answers to that question: 1) Anger, and 2) Fear.
Four years ago, housing prices, retirement accounts, income, and employment came tumbling down, and we are mad that no one but taxpayers has paid for that to date.
Since the crash, Washington lawmakers have crafted the behemoth known as the Dodd-Frank Act, but before all 400-plus rules could be written, along came JP Morgan, a bank which walked out of the 2008 crash seemingly unscathed, and lost more than $2 billion by hedging esoteric synthetic credit products.
Sounds like reason enough to be plenty mad.
Then there’s fear. We are afraid of anything that smells like the market calamity of 2008. Regardless of how incomparable the two events are, when we hear about big dollar losses and a slew of financial jargon that no one understands, we’re afraid.
Fear isn’t something that can be assuaged with facts and figures; fear keeps us checking under the bed for monsters long after our intellect tells us there’s no such thing.
I suggest that our anger and our fear have offered us an opportunity.
Instead of vilifying JP Morgan, let’s use this public call to the carpet as a chance to educate ourselves on the free enterprise that takes place at firms like JP Morgan, and that this time unfortunately resulted in a sizable loss to the bank and its shareholders. Let’s question him – and the assembled regulators – on how JP Morgan could have managed its risk better, and how the marketplace can work to more locally contain the unavoidable ripples that occur from such activity.
Let’s be sure to use this opportunity for the betterment of our free marketplace and not to call a firm out for practicing what we as a country preach.
Rep. Schweikert (R-Ariz.) is a member of the House Financial Services Committee.

Rachel Semmel
Communications Director
Rep. David Schweikert (AZ-05)
Cell: 202-225-1941
Direct: 202-226-2298

Answering Your Questions & the Passport.

“Great Article! I am impressed with the “real” nature of your research and ‘forecast’. Mainly because you did not use the fear factor to persuade the reader that if they don’t sell the farm and buy gold they will be ‘toothless, in a homeless shelter’.

Are you able to describe some of the scams some of the gold dealers use? Or at least recommend some reputable sources for your readers to consider when purchasing. Also, do you think coins or bullion are more exchangable in the future?”

The reason why there are so many US gold coins around is precisely because people hoarded. This is also what took place during the 3rd Century & why there are so many Roman coins that survived. It becomes a odd mix of stagflation (rising costs declining growth) and deflation (but rising value of hoarded alternative money). People simply hoard and will not spend when they worry about the future. Today, the polls show only 16% of Americans think they are better off today than 4 years ago. This is the STAGFLATION where there is still the flight-to-quality internationally driving the dollar higher and US rates lower, but there is no growth.

You are better off with coins than bullion insofar as an emergency stash is concerned. The average person would not know what to do with a bar. Any place you could redeem it could be seized by government. SO what you are really trying to accomplish is to be able to survive and in that cash coins are better for the average person will trust a $20 gold piece before a bar. Also, being in the bullion business way back when, I can tell you the average person cannot tell the difference between platinum and nickel. The same is true with diamonds. These types of things will not pass the common sense test. Hyperinflation is impossible for we would be at war before you ever got that far. Just as Roosevelt devalued the dollar and seized all the gold in banks, they will come up with a new currency to swap in order to hide what they have done. This is why all of these Draconian laws are coming to spy on everyone. They are scared to death of Revolution and they know the system is screwed. It is not a matter of IF – only when. There will be a monetary reform when the crisis hits, for that is the only think they can hope to retain power.

I will try to look at the sellers of gold and see if I can recommend who to trust.

The scams are numerous and always have been. Let’s see what I can put together.



“I’ve wondered if you were able to get your passport! Amazing how ‘they’ have targeted you, yet you have so much they could learn from, if only their minds were not on politics. Bureaucrats aren’t really allowed creative thinking are they? (:”

The Judge in New York has made it clear he does NOT want a public hearing on this issue of trying to deny me a passport. The government has reversed its position and will now consent that I may do the speaking tour in Bangkok and Berlin. So we will be doing a fall round San Francisco probably 3rd weekend in September, Bangkok end of October, and Berlin end of November. Why they are so afraid of what I have to say is mind-blowing. They act as if what I say dictates to the world. Instead of looking at the research objectively, no they want to pretend it would not happen if I kept my mouth shut. That is why these types of people work in government – they just hate our guts.

Liberty v Safety – Do we deserve either? Ben Franklin said NO!

We have lost everything. History repeats because the passions of man never change. The American Revolution began with a major legal case in Boston where the King’s men were able to search anyone’s home and rummage through your papers to see if they could charge you with Treason. The 4th Amendment was the firecracker that ignited the cry for liberty. The case was cited by the Supreme Court in Boyds v US in 1886 where it was written that the lawyer arguing the case stood up and said:

“James Otis pronounced

‘the worst instrument of arbitrary power, the most destructive of English liberty, and the fundamental principles of law, that ever was found in an English law book;’

since they placed “the liberty of every man in the hands of every petty officer.” [Footnote 3] This was in February, 1761, in Boston, and the famous debate in which it occurred was perhaps the most prominent event which inaugurated the resistance of the colonies to the oppressions of the mother country. “Then and there,” said John Adams,

‘then and there was the first scene of the first act of opposition to the arbitrary claims of Great Britain. Then and there, the child Independence was born.'”

Government is searching everything again. All our emails, everything just as the king did. It is bullshit to say if you are clean, then why worry let them search. That is authoritarian.

Why have any human rights for those government executes since they must somehow not deserve it. The conviction rate in the USA was 70% in the 1970s. It is now about 99% because the judges are generally former prosecutors. The government will NEVER admit a mistake and Congress refuses to investigate judges. So if government employees are so much more honorable, infallible, and saintly than the rest of Americans, we need no rights because every person that works for government walks on water. Only a fool gives up all rights for claimed security.

Ben Franklin must be an idiot as well as all the men who stood up against the King to establish Liberty that people no longer consider worthwhile. Ben said:

“They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety. Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.”

I lament – for I must have missed the train and was born a couple hundred years too late.

The bullshit that we must give up liberty to be safe is the same shit pro-government people said back them who supported arbitrary action by the king against citizens.

Project Innocence has freed over 1,000 people wrongly imprisoned for rape & murder thanks to DNA evidence. Remember one thing. For every wrongly imprisoned person, there is still a guilty one running around. When prosecutions are personal career moves for lawyers, there can be no liberty or justice for they have a personal interest in making sure they are never wrong and will cover up their mistakes. Prosecutors are ambitious and look to move ahead over other people’s lived. Look at how many governors were prosecutors. It is scary.

Spain Erupts over Austerity – Day of Reckoning

The crisis we really face is the civil unrest that will erupt when society discovers that the Emperor has no clothes. When people have been promised the moon and believed it, no amount of economic logic will turn their heads to reason. Southern Europe is bubbling with problems. This is a battle between the bond holders who gave government their money with the promise of “trust us” and the people who were told “vote for us” and you will get everything. The two promises are headed into a vortex of political instability. In Spain miners attack police with home made rockets.

This is why governments are spying on everyone. They are afraid of civil unrest – the day of reckoning for so many false promises. God Help Us!

Greek Elections Private v Public

The Greek elections were tight. However, the private citizens beat out the government workers and have decided that for Greece to leave Europe would be a disaster. The riots of public workers protesting the austerity have not ended. The great problem faced by Greece is how to create jobs during austerity to absorb the laid-off public workers. This has never been accomplished even once in history. The USA experienced this during the Great Depression, but it was the transition from farming to skilled labor. The WPA helped only marginally in the USA. That is not an option under Austerity. The ultimate event that worked – World War II.

Greece dodged the bullet. However, it is an M16 that is taking a shot not a single revolver. Greece will not succeed following Austerity. There will be too much pain. They have to raise taxes to comply with Austerity, and that will defeat creating new jobs to absorb the laid-off government workers. The fat lady has not even begun to sing, so what we face ahead is still an economic implosion. We just have a breath of fresh air to gasp before sinking back underwater.

Pi x Phi (π x Φ)

π x Φ  is Monday, which lines up with the Greek Elections suggesting this will be a important pivot point to look back on as a turning point.

Greek shares have rallied the most in more than nine months amid speculation that New Democracy, the party that backs an agreed bailout for the nation, may win the June 17 elections. Greek Stocks Rallied on Optimism that when the Greeks will vote for a second time in six weeks, after a May 6 ballot failed to result in a government, New Democracy being the largest pro-bailout party that is opposed to spending cuts will win. Under Greek law, there is a ban on publication of opinion polls two weeks before an election.

Will provide a detailed report on this aspect