Peter Schiff nails the uproar over the Madoff fraud perfectly in his latest commentary. I have yet to see a more perfect paragraph summing up the way I see the U.S. financial system and government than this…
Although the $50 billion loss engineered by Madoff is truly a staggering accomplishment (and was done using old-fashioned fraud rather than the mathematical wizardry that has characterized Wall Street’s recent larcenies) the size of the scheme pales in comparison to the multi-trillion dollar Ponzi structures run by the United States government. In fact, rather than looking to jail Madoff, President-elect Obama should consider making him our new Treasury Secretary. If not that, at least make him the czar of something!
Take a few minutes and read the rest. It is quite good.
M1 hits 37% growth!! “Most of the significant American banks, the larger banks, are bankrupt, totally bankrupt.” - Jim Rogers, 12/11/2008
by Jake, the Champion of the Constitution Originally published on December 14, 2008 at http://www.nolanchart.com/article5645.html
ATHENS, GREECE - Greek riots over governmental fiscal policy on December 11-12 exemplify growing worldwide economic discontent. Despite whatever cherry-topped fairy-tales that pass for news these days are delivered to the American public, the US banking situation continues to worsen. It is my guess that some of Greek rioters yesterday per this AP article may not have it completely figured out, but they are really rioting against the central banking and fiat money. (Rodgers quote) (photo)
“Gold going to permanent backwardation means that gold is no longer for sale at any price, whether it is quoted in dollars, yens, euros, or Swiss francs… To put it differently, all offers to sell gold are being withdrawn.” - Dr. Antal Fekete
by Jake, the Champion of the Constitution Originally published December 14, 2008 at http://www.nolanchart.com/article5640.html
In this article we will take a look at some alternate but constructive views of Fekete’s recent articles on gold backwardation, covered in earlier articles in this series. I want to note it appears to be a perfect storm shaping up, although it not yet outside the grasp of short-term government manipulation, especially if there is the hint of a panic, or “gold fever” developing. The price of gold and silver are both up over the past week as both metals are in (temporary for now) backwardation, but the price does not have a high degree of relevance. All eyes are on the gold basis will probably drive the price which you can learn about by reading the below mini-series. (Photo) (2)
Now some news. Three-month Treasuries slipped negative for the first time ever on December 9 per Bloomberg. The UBS banker “analyst” cheerleading the masses towards buying Treasuries sounds like he is smoking crack. “Everyone wants to be in bills going into year-end. Buy now while the opportunity is still there.” Let’s see, no interest and I will actually lose money by buying? No thanks! Even gold’s naysayers realize holding paper cash is smarter.
As an addendum to the previous Inflation Salvation article posted by Marc Gallagher, the following video is a nice little example at how backwards the Keynesian economic thinking was back in the days of FDR (which is unfortunately still popular today):
Drop everything you are reading right now and buy this book. That is if you aren’t already a seasoned precious metals investor. In plain language Mike Maloney’s “Rich Dad’s Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future” explains why now is the time to invest in gold and especially silver. Put simply, it is the perfect introduction to anyone interested in precious metals investing.
Maloney dispenses with the big words and typical econo-speak in this book. He gives historical evidence that fiat currencies always end up going to zero. The U.S. dollar is a fiat currency. It will cycle up and down and eventually collapse. Maloney describes the current economic situation and why silver and gold should encompass a large portion of your investment portfolio.
One of the most watched videos of the Ron Paul campaign was “Stop Dreaming” by Aravoth. He is out with another epic video edited beautifully about our financial future.
The video mixes footage of Peter Schiff, Ron Paul, and several others. Take 10 minutes of your time and watch it. You’ll likely be glad you did.
Ron Paul has a sign on his desk (as can be plainly seen in his video message yesterday) that says “Don’t Steal, The Government Hates Competition”. The news that the Federal Reserve refuses to disclose the recipients of $2 trillion in lending leaves me (and should leave you) madder than hell.
Today the Federal Reserve effectively freaked out in the foxhole and declared the spirit of democracy, if not the rule of law, to be disposable conveniences of better times.
In response to a freedom of information act request by Bloomberg News for the names of the institutions receiving public money, the Fed invoked an obscure rule to block the release of this information.
Dec. 12 (Bloomberg) — The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is accepting as collateral.
Bloomberg filed suit Nov. 7 under the U.S. Freedom of Information Act requesting details about the terms of 11 Fed lending programs, most created during the deepest financial crisis since the Great Depression.
The Fed responded Dec. 8, saying it’s allowed to withholdtrade secrets internal memos as well as information about and commercial information.
Martenson continues…
Trade secrets? A trade secret is something like the formula for Coke. A trade secret is a patented business process the release of which would harm the competitive position of the holder. I am really at a complete loss to understand what sort of “trade secrets” might apply to the acquisition of bad debt from poorly managed financial institutions.
If anybody can supply one that might make sense in this situation I am all ears.
The important principle here is that democracy cannot operate under the cover of darkness. If every emergency, no matter how slight, results in the immediate suspension of our right to know, then one might reasonably question whether it is a right at all and whether this is a democracy.
Some of us would make the argument that the Federal Reserve is not a government organization, but a private cartel, and so is not bound by the Freedom of Information Act. It is interesting that they didn’t use that as a defense but rather chose to use “trade secrets”.
What have you done with my country? I want it back.
In the latest video released by Ron Paul he elaborates more on his opposition to the auto bailouts and bailouts on principle. The video was recorded yesterday, prior to the auto bailout failing in the Senate.
“The [gold] bulls are on the warpath.” - Dr. Antal Fekete, December 10, 2008
by Jake, the Champion of the Constitution
Originally published December 11, 2008 at http://www.nolanchart.com/article5631.html
“And we are in no mood for prisoners.” – Jake, the Champion of the Constitution
I’ve written what is amounting to a short series on what is, in my opinion, the major economic event of gold going into backwardation and what this will mean. Due to recent interest, particularly email comments, in this article I would like to further describe this event and in the next part share links to more gold and silver news on this topic with you (as well as some objective criticism of Fekete). I think it is also important to note that I am no expert. I fully realize I could be wrong for now, or misjudge how the government forces will intervene. It is far from clear whether this backwardation will become permanent. That said, I do believe that the resistance shackling gold and silver will be eventually be overwhelmed; it’s just a question of when. In the final analysis, Gold is the world’s greatest chance at economic liberty and a world with far less war. (photo2)
Here is Ron Paul from the floor of the House speaking out against the Auto Bailout among other things. I have to admit I love hearing Ron Paul get animated like this for what he believes in. His opening remarks are rife with sarcasm. He argues that bailing out the auto industry is unconstitutional and it is morally improper to take money away from one group to give it to another group. Closing these remarks he says:
“…But those two arguments are rather weak arguments…” (tongue firmly implanted in cheek)
He goes on to talk about the economic ramifications. This is classic Ron Paul. You must watch this.
“What does $15 billion dollars mean anymore?”
“We are on the road to nationalization!… without a wimper.”
“.. Car Czar? It is such an embarrassment. It is such an insult to us who believe in freedom, who believe in sound money and limited government. It’s such an insult to the whole idea that made America great!. And this is what it has come to? Bailout after Bailout….”
Liberty Maven
ATHENS, GREECE - Greek riots over governmental fiscal policy on December 11-12 exemplify growing worldwide economic discontent. 
In this article we will take a look at some alternate but constructive views of Fekete’s recent articles on gold backwardation, covered in earlier articles in this series. I want to note it appears to be a perfect storm shaping up, although it not yet outside the grasp of short-term government manipulation, especially if there is the hint of a panic, or “
” explains why now is the time to invest in gold and especially silver. Put simply, it is the perfect introduction to anyone interested in precious metals investing.
I’ve written what is amounting to a short series on what is, in my opinion, the major economic event of gold going into backwardation and what this will mean. Due to recent interest, particularly email comments, in this article I would like to further describe this event and in the next part share links to more gold and silver news on this topic with you (as well as some objective criticism of Fekete). I think it is also important to note that I am no expert. I fully realize I could be wrong for now, or misjudge how the government forces will intervene. It is far from clear whether this backwardation will become permanent. That said, I do believe that the resistance shackling gold and silver will be eventually be overwhelmed; it’s just a question of when. In the final analysis, Gold is the world’s greatest chance at economic liberty and a world with far less war. (
