Comedians Show Us The Truth

What is it about a comedian that gives him that uncanny ability to put the shocking and sad truths right in front of our eyes, and yet make us laugh at them?  First up is Jon Stewart showing how the main-stream media has wavered on its reporting stance of JP Morgan’s takeover of Bear Stearns in 2008 and its recent $13 billion settlement with the Justice Department over ‘alleged’ financial misdeeds.

The Daily Show
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And then there’s the slightly more serious delivery of the reality of our socioeconomic conditions in the western world by Russell Brand in this BBC interview by Jeremy Paxman.

While the comedian usually does a good job of showing us the issues, their ideas on how to solve society’s problems can be questionable.   Peter Schiff takes up the opposition to Brand’s socialist remedy in the following video.

Those Controlling the World Admit: The United States Can’t Borrow Indefinitely

Speaking from the center of control over world policies, the Council on Foreign Relations, the CEO of one of the most powerful banks in the world, Jamie Dimon of JP Morgan, admits, “It’s virtually assured, the question is when and how.”  That was his immediate response to the question put to him regarding the possibility of the international bond market moving against the US because of its inability to get its fiscal house in order.

What the crazy conspiracy theorists have been saying for years, the conspirators are now admitting openly.  Does this mean the end-game is fast approaching?  Maybe.  According to CNN, the Treasury Department has said the U.S. government must raise the amount of money it can borrow or else it would be unable to pay its bills.  When you get into a situation where you need to perpetually borrow in order to pay off the debt and keep the game running, you’re following in the footsteps of Charles Ponzi.  And as ZeroHedge has noted, Ponzi Finance is the policy being followed at this point, which is likely a precursor to the end-game.

Jim Rickards: The Fed’s Using the Wrong Models

James Rickards, author of Currency Wars, gave the following presentation at The Future of Money 2.0 in Bratislava, Slovakia on September 26, 2013.  A week later, Rickards gave the same presentation, though significantly abbreviated, at the Casey Research Summit in Tucson, Arizona.  In the presentation, he covers:

  • US Defense Department’s exercises in financial warfare.
  • Historical currency devaluations by countries to gain trade advantages.
  • Historical examples of re-establishing a gold standard after a currency collapse.
  • The current situation of Inflationary and Deflationary forces working against each other – an unstable situation.
  • Irving Fisher’s (and later Milton Friedman) theory of economics (Quantity Theory of Money … M x V = P x Q).
  • QE, Operation Twist, etc. have had no affect because money velocity is not responding.  2014 may bring efforts to put money directly into the hands of the people (e.i. Tax Cuts).
  • Complexity Theory may provide a better model for the Fed, as it shows that the economic system has become increasingly more interconnected across sectors.  It actually predicted the 2008 collapse and, unfortunately the model is even more densely integrated today, indicating a worse crash ahead.
  • The potential remedies the Fed or the IMF might enforce in response to the next collapse.

CFTC Ends Five Year Investigation of Alleged Silver Market Manipulation

Please read the CFTC’s release carefully!!!  Too many articles on the web are incorrectly stating what was found or not found by the CFTC during its investigations.  But the release doesn’t report any findings other than stating “Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.”  While it does not say that it found evidence of manipulation, it also does not say that it did not find any evidence.  It only states that they investigated the situation, by numerous means and with over 7,000 staff hours.

This is important and very revealing.  If there were laws in place that allowed certain entities to manipulate the market, the CFTC would not be able to bring legal charges against those entities even if it found the allegations of manipulation to be true.  And, as Chris Powell of GATA has demonstrated, this is exactly the situation: The authority [of the government to interfere in any market] was given in the Gold Reserve Act of 1934, which established the Exchange Stabilization Fund in the Treasury Department.

If you’re going to invest in precious metals, you need to be consciously aware that you are betting against the solvency of the United States.  The US government will indeed do all it can to defend its currency.  But they are cornered.  The western social-welfare/political-warfare state makes it necessary to debase the currency to keep everyone fat, dumb and happy.  Currency debasement techniques have been tried repeatedly throughout history, yet have always failed.  However, if the government can cast an illusion of prosperity, they’ll stay in power long enough to squeeze every last drop of real wealth from citizens.  That illusion remains in place today as all markets are either propped up or capped in order to keep everyone thinking everything’s fine.

The ongoing saga of precious metals market rigging is documented here.

Jim Rickards on All the Taper Hype: Look at the Data!

Here’s some level-headed thinking from Jim Rickards, who was proven to be correct on his call that the Fed would not taper.  While the Fed would certainly like to taper, they’ve always stated that they would do so on the condition that the economic data continues to be strong.  But the economic reporting has been terrible, so the Fed didn’t taper and won’t until those reports show viable strength.  Jim also discusses what differences, if any, the upcoming Fed-chair change may make (none), gold’s future price expectations (higher) and his new book, The Death of Money (due out in April, 2014).

What Happens WHEN the Big Banks Fail?

Most of us have our hard-earned money deposited in a bank.  So, what would happen if these banks, with their over-leveraged derivatives investments suddenly became insolvent?  Well, the law has already been written and it only needs to be enforced when (not if) these institutions finally fail.  When the crisis hits, the FDIC will be unable to cover all deposits – that insurance is woefully inadequate, capable of covering only 0.25% of all deposits.  As “unsecured creditors,” depositors will end up as stock holders of the failed institution in lieu of their cash deposits.  After watching the following video from, which explains in simple, yet specific legal terms, exactly what rights depositors have, consider yourself pre-warned.

140 Years of Monetary History (In 10 Minutes)

Here again is Mika Maloney from with a great (and quick) review of what’s happened to the global monetary system in the last 140 years.  Mike explains how the world’s monetary system went from the classical gold standard in the late 1800’s to the floating fiat paper being used today.  Also quite interesting is the observation that the world’s monetary system seems to change approximately every 40 years. America’s “good as gold” dollar became the world’s reserve currency after World War II and has enjoyed its status as the world’s reserve currency.  After Nixon removed the dollar’s tie to gold in 1971, it freed the Federal Reserve & US Treasury to allow money to be created without limitation.  But now, too many dollars have been printed so we may be about to see another change in the global monetary system.

The Big Picture = Corruption

In a recent interview, Kyle Bass, the well-known founder of Hayman Capital, revealed that “There’s no real way out” of the current economic situation that has resulted from the fiscal profligacy of the central banks.  And later in that same interview, when asked his opinion of what the ‘average investor’ should be doing in this environment, Mr. Bass could only make the suggestion that they “should be very careful doing what the central bankers want them do.”  With low yielding interest rates, the central banks are pushing average investors into taking on more risk with higher yielding equities.

But it’s even worse than that.  Fundamentals don’t seem to matter much in these uncharted economic waters.  Why?  Because as Barry Ritholtz has so thoroughly outlined in his Big Picture analysis of the markets – they’re all rigged!  The average investor is at the mercy of the big banks and crony capitalism.

Yes, be very careful indeed!

Doing The Math

Grant Williams is a strategy adviser for the hedge fund, Vulpes Investment Management in Singapore, as well as the blogger behind the popular Things That Make You Go Hmmm….  In the following video, Williams reviews the disconnects between the economic realities that exist in today’s world and the rosy pictures painted by governments, central banks and the main stream media.

  • Williams’ problem #1: The disconnect between fundamentals and equity prices.
  • Williams’ problem #2: The paradox behind China’s mysterious GDP growth during a time of reduced manufacturing, shrinking demand for raw materials and declining imports/exports
  • Williams’ problem #3: How is France able to sell its sovereign bonds at such low interest rates when all indications of its own economy are performing like those of the European periphery?
  • Williams’ final problem: The difference between the “Gold Price” and “The Price of Gold”

In the end, the laws of mathematics cannot be subverted by governments or central banks.  Central banks’ zero percent interest rate policies are damaging:

  • In the short term through the confiscation of savings and the forcing into riskier investments in the search for yield
  • In the long term by suppressing market volatility, which must be reconciled at some point

Mathematics, rightly viewed, possesses not only truth, but supreme beauty – a beauty cold and austere.
– Bertrand Russell

Sign the Petition to Audit US Gold Reserves

Update: February 9, 2013

The site has removed the petition because it failed to gain enough support in the time allotted. It lacked approximately 18,000 signatures of the 25,000 necessary. It seems not many people care about this issue.

January 11, 2013

For many years, the Gold Anti-Trust Action Committee (GATA) has been gathering official government documents that indicate the US gold reserves are insufficient and cannot cover the paper obligations assigned to them.  Through leasing and swap agreements with other nations, the details of which are hidden from the public, the nation’s gold could be in jeopardy and at the very least, over-reported. Some people have even openly speculated that the Fort Knox facility contains mostly empty space.

There is now a movement to have the gold reserves audited.  As the description in the petition notes, the reserves have not been audited since 1953!  Prior to that, there were semi-regular audits. In the last 60 years, there has been too much turmoil to simply assume normality in this matter. A prudent and measured action is necessary.

It’s amazingly easy to create a White House account and sign the petition – all you need is a valid email address and zip code.  If the petition gets at least 25,000 signatures, the White House must take action to take the issue to the next step for further study.   Read and sign the petition today.

Fort Knox

Who Said This?

It is also midnight within the moral order. At midnight colors lose their distinctiveness and become a sullen shade of grey. Moral principles have lost their distinctiveness. For modern man, absolute right and wrong are a matter of what the majority is doing. Right and wrong are relative to likes and dislikes and the customs of a particular community. We have unconsciously applied Einstein’s theory of relativity, which properly described the physical universe, to the moral and ethical realm.

Click here to find out who said this.

On Germany’s Gold Repatriation

Conspiracy theories are only theories until they become conspiracy facts.  The straws are blowing in the wind as this main-stream CNBC panel discusses the reasoning behind Germany’s gold repatriation. The Bundesbank (Central Bank of Germany) recently stated they have plans to move their gold held at other central banks back to the Father Land.  This includes moving 374 tonnes from France’s Banque de France & 300 tonnes from the New York Federal Reserve Bank.  Could it be that, as Pimco’s Bill Gross opined, that the central banks of the west are starting to lose faith in one another?