gmane.comp.finance.gold-silver-crypto

[gsc] "systemically important"

pintle — 2012-05-26T12:30:08

Wall Street Journal says Comex has been classified as 'too big to fail'
Submitted by cpowell on Fri, 2012-05-25 06:09. Section: Daily Dispatches

A Mess the 45th President Will Inherit

Taxpayers Now Stand Behind Derivatives Clearinghouses

From the Wall Street Journal
Thursday, May 24, 2012

http://online.wsj.com/article/SB1000142405270230484090457742239316410627...

President Obama's standard gripe is that the economy has performed so
poorly during his term because of the financial crisis he inherited from
George W. Bush. But this week it is Mr. Obama who has bequeathed to his
successors a landmark in financial regulation. It is bound to haunt
them, though not as much as it will haunt taxpayers.

J.P. Morgan's recent trading loss and the resulting Washington blather
about tighter regulation have grabbed headlines.

Little noticed is that on Tuesday Team Obama took its first formal steps
toward putting taxpayers behind Wall Street derivatives trading -- not
behind banks that might make mistakes in derivatives markets, but behind
the trading itself. Yes, the same crew that rails against the dangers of
derivatives is quietly positioning these financial instruments directly
above the taxpayer safety net.

As we noted in May 2010, the authority for this regulatory achievement
was inserted into Congress's pending financial reform bill by
then-Senator Chris Dodd. Two months later, the legislation was re-named
Dodd-Frank and signed into law by Mr. Obama. One part of the law forces
much of the derivatives market into clearinghouses that stand behind
every trade. Mr. Dodd's pet provision creates a mechanism for bailing
out these clearinghouses when they run into trouble.

... Dispatch continues below ...

Specifically, the law authorizes the Federal Reserve to provide
"discount and borrowing privileges" to clearinghouses in emergencies.
Traditionally the ability to borrow from the Fed's discount window was
reserved for banks, but the new law made clear that a clearinghouse
receiving assistance was not required to "be or become a bank or bank
holding company." To get help, they only needed to be deemed
"systemically important" by the new Financial Stability Oversight
Council chaired by the Treasury Secretary.

Last year regulators finalized rules for how they would use this new
power. On Tuesday, they began using it. The Financial Stability
Oversight Council secretly voted to proceed toward inducting several
derivatives clearinghouses into the too-big-to-fail club. After further
review, regulators will make final designations, probably later this
year, and will announce publicly the names of institutions deemed
systemically important.

We're told that the clearinghouses of Chicago's CME Group and
Atlanta-based Intercontinental Exchange were voted systemic this week,
and rumor has it that the council may even designate London-based
LCH.Clearnet as critical to the U.S. financial system.

U.S. taxpayers thinking that they couldn't possibly be forced to stand
behind overseas derivatives trading will not be comforted by remarks
from Commodity Futures Trading Commission Chairman Gary Gensler. On
Monday he emphasized his determination to extend Dodd-Frank derivatives
regulation to overseas markets when subsidiaries of U.S. firms are involved.

Readers know Mr. Gensler as the chief regulator of MF Global, which was
run into bankruptcy by his old Beltway and Goldman Sachs pal Jon
Corzine. An estimated $1.6 billion is still missing from MF Global
customer accounts. What an amazing feat Mr. Gensler will have performed
if, through his agency's oversight, he can manage to have U.S. customers
eat the cost of Mr. Corzine's bets on foreign debt and have U.S.
taxpayers underwrite bets in foreign derivatives trading.

If there's one truth we've learned about government financial backstops,
it's that sooner or later they will be used. So eventually taxpayers
will have to bail out one derivatives clearinghouse or another. It
promises to be quite a mess. And if the 45th president spends his first
term whining about his predecessor's mistakes, he'll have a point.

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[gsc] Why we are not on the road to serfdom

Patrick Chkoreff — 2012-05-25T12:01:08

Article here:

http://www.garynorth.com/public/9550.cfm

Excerpts:

...

...

[gsc] misc.

pintle — 2012-05-24T17:23:18

Cafe:

...
Greyerz - Customer Shocked "Allocated" Gold Not in Swiss Bank

Today Egon von Greyerz told King World News that a client went to move a
significant amount of "allocated" gold from a Swiss bank, but the bank
shocked the customer because they did not have the gold. Egon von
Greyerz is founder and managing partner at Matterhorn Asset Management
out of Switzerland. Von Greyerz also said, "the risk of having gold in
the banking system is major." But first, here is what Greyerz had to say
about the bank runs in Europe: "This is just amazing, Eric, you couldn’t
write a better story than this. We have bank runs in Greece and Spain,
and now a French bank, one of the biggest mortgage banks, is also having
problems. Ireland, they thought they were alright, but they need more
money."
...

Effects of SWIFT exclusion at the ground level
Hi Bill,
Let me share with you anecdotes related to Iran's exclusion from SWIFT.
My Malaysian friend visited over the weekend. She rents out an apartment
in Kuala Lumpur, the capital of Malaysia. She complained that her
tenants (an Iranian couple) could not pay the full rent for last month
as their money was "stuck". Her previous tenants were 2 Iranian women
who had to move out because they could not receive their monthly
payments from back home. I told her to tell her existing tenants that
she would accept payment in gold dinars!

By the way: there are many Iranian expats in Malaysia (part of a big
middle-eastern community who appreciate the moderate muslim environment,
great range of mid-east produce etc) Many middle-eastern expats in
Singapore, Malaysia are in fact not muslim. They may be Christian,
Bahais or athiest. Most are highly-educated and world travellers.
...

Bill H:

Just like Lay's potato chips, "you can't have just one".

To all; Do remember the old Lay's potato chips commercials? I was
thinking about "bank runs"
http://www.spiegel.de/international/europe/fears-of-bank-runs-increase-in-europe-a-833879.html
and remembered "you can't just have one". The thing is, not only is it
"you can't just have one", once you have one...you have lots. This truly
is where we are now, a series of bank runs in southern Europe will not
be contained there. The evidence over the last week or so suggests that
the herd is getting spooked and starting withdrawals, not huge yet but
definitely "noticeable". "Noticeable" by the way is bad, very bad. It is
just common sense, if one bank gets run, it's next door neighbor will
etc. etc. because no one knows who is healthy and who is not. In fact,
the mindset is becoming "they're all sick", that's what the global
protests are all about.

We are now 4 years into The Greatest Depression where program after
program and policy response after policy response has done nothing to
turn the global economy upwards. With each and every new program, we
were told that "we were saved", again and again and again. But guess
what, even little children begin to lose patience after awhile and
figure out that that they're not being told the truth. What I am getting
at here is that on a global basis, the "ruling class" is (nearly past
tense "has") losing credibility. This is very important because in a
fiat system of money, credibility is, well, IT'S EVERYTHING!
"Confidence" is everything and a bank run by definition is a loss of
confidence.

At this point it doesn't matter where or how small the bank is that gets
"run", just like the little spark to the fire that burned down 1,600
homes here in Texas last year, it will spread and it will spread
quickly. This is far different than late 2008, early 2009. It is
different because back then there was "faith". Faith that "the
government will never let it happen". Now, governments have already used
their ammo and it has not worked in a very public manner. Governments
have spent, printed and borrowed and are now no longer seen as the
Savior to the problems, no, they are now seen as a BIG PART of the
problems which goes back to the "credibility issue". This lack of
credibility, lack of faith or trust has always led to (in the case of
banks) bank runs. But...the old days were different...because the money
was different, it was real.

The "real" bank run, the one that governments themselves are fearful of
is the one that comes AFTER John and Jane Doe have initially panicked.
You see where I'm going I am sure. What happens when people actually get
pieces of paper in hand? Easy, they will spend it. On "stuff". Those who
have "enough" stuff will want to "save" it. Yes, here we are again,
Gold. You see, what is happening is not about the "banks" or the
leverage in use, the mal investment or fraud, no, it's about the money
itself. Banks runs are merely a symptom, not the cause. But once the
populace begins to "run banks", scrutiny of "the money" itself will come
very close behind. I must say that "they" have done a far better job of
prolonging this end game much further than I could have imagined but the
sheep are getting restless. You can smell it and even see it in print.
Once you see lines or read about an electronic run, scrutiny of "the
money" is next. By the way, unlike the slow motion train wreck we have
so far experienced, bank runs happen very quickly. A "withdrawal of
offers" in the Gold market will eventually happen overnight and be the
equivalent of your bank telling you "sorry, we ran out of money".
Regards, Bill H…

A busted Facebook deal.

To all; the Facebook IPO from this past Friday has gone underwater this
morning. For such a big AND important offering to go negative so soon
after the initial trade is nearly unheard of. This was hyped all last
week and had been anticipated ALL year long, how in the world could they
let this happen? Now, an already pissed off public is more pissed off
because the "sure deal" and easy money is now just another loss. This by
the way goes back to the previous piece that I sent this morning,
credibility is going up in smoke.

CNBC reported this morning that IPO desks still have stock available and
that some has even come back from brokers "DK'ed". I must say that my
experience in watching IPO's that did not go to an immediate premium,
the "syndicate bid" would last at least a week, Facebook, the biggest
and most famous of all lost this support in less than a full trading
day? I don't understand it because as I mentioned earlier, this is very
VERY damaging to credibility with the sheople. Where was the PPT (plunge
protection team) when they were needed? Did they fall asleep at the
wheel? Facebook was supposed to be the greatest thing since sliced bread
and is now down nearly 20% for early after trade release buyers. I would
bet that when we look back at this, the Facebook saga will be tagged as
an inflection point of confidence!

Briefly on the JP Morgan saga, the supposed "$2 Billion" loss just does
not add up. Jamie Dimon announced today that JPM is discontinuing its
share buybacks, this, NOT being connected to the loss. Huh? What firm
would ever pour gasoline on the bonfire of their own stock? Not
connected? Only $2 Billion? MY ASS! Again, back to what I have been
harping about recently, "confidence" or lack of. Bank runs, inter
sovereign currency swaps, busted mega IPO's, smoke billowing out of JP
Morgan...it does all add up. I guess the hope is that the sheople are so
dumbed down as to not being able to connect any of the dots. The problem
is, human nature and the desire to "self preserve", this is the stuff
that people have bred into them and can't be "schooled out" of them very
easily. It is and has been all about confidence. Current events...?
Inspiring? Just watch the reaction! Regards, Bill H.
...

Well, Frank has been silent about gold for many years until last Friday.
Here is an excerpt of what Frank had to say. Of note is that he has
never referred to gold in a monetary sense…

May 18, 2012

Executive Summary

1. In the pre-war era economies never voluntarily became highly
indebted. There were frequent recessions. They were usually accompanied
with price deflation. Price deflation is death to debtors. The frequent
and sometimes very extreme pain of cyclical debt deflations kept
indebtedness in check.

2. In the post-war period central banks would not allow deflation.
Furthermore, whenever a serious recession threatened debt deflation
dynamics, there was a bailout by Big Government and the Big Central Bank
to avert it.

3. Hyman Minsky recognized that, with each successive bailout by the
government and the central bank, perceptions of risk by private market
participants would be reduced. Risk taking would be ratcheted up.

4. The result would be ever greater financial fragility, ever higher
levels of indebtedness, ever greater vulnerability to a severe debt
deflation.

5. In 2007 this grand debt super cycle reached a pinnacle. With so much
financial fragility, there erupted a financial crisis and economic
recession greater than anything the world had seen since the 1930s.

6. If things had been left in the hands of the "free market" we would
have had another Great Depression. Modern societies will not tolerate that.

7. So then what happens? There is yet another and even greater bailout
by Big Government and the Big Central Bank. That is what the Great
Bailout of 2008-2009 was all about.

8. But it has not ended. High indebtedness in Japan, Europe, and even
China has created new crises.

9. Big Governments and Big Central Banks must continue to intervene.

10. Central bankers have acted like they had independence and could
impose restraint. That was their pipe dream and a societal fiction.
Central banks are the creations and vassals of states in a world with
intolerably high indebtedness and body politics that do not want market
processes that would destroy these debts.

11. Central bankers will have to do two things: bail out again and
again, AND IN THE END INFLATE THE DEBTS DOWN.

12. This is the message of the reign of Helicopter Ben Bernanke. This is
the message of the current move in Japan to override independence of a
foot dragging BOJ.

13. This will be the message when the ECB has to take the coming bold
measures to arrest the current banking run I discussed yesterday.

14. When the ECB is forced to cave and act it may finally become clear
to market participants that the body politics around the world will
demand that central banks implement debt eroding inflations.

15. With the death of the myth of independent central banking, gold
should assume a unique position as a monetary asset. I think we are very
close to this point.

***

One of my favorite financial market stories of all time is what Frank
produced on November 19, 1999. It is worth a full read, especially as to
how it might reflect on future market action (as per what Bill H sent us
below)…

Frank Veneroso
Veneroso Associates

The Stock Market

Recollections of the Greatest Market Bubble Ever…

Memories of the Souk al Manakh

How large can a bubble grow before it bursts? Farther than you think.
And there need not be a fatal pinprick that makes it burst. And when it
bursts, the crash that ensues can be deeper and more discontinuous than
you could ever imagine.

In May of 1982, while the bear market in US stocks was in its deepest
throes, and the epic bear market in US bonds was still completing its
base, I was called to advise on the greatest stock market bubble of all
time---the Souk al Manakh in the Persian Gulf. Kuwait had had an
organized stock market for some time. The great wealth created in Kuwait
by the rise in the oil price in the 1970's led to seemingly endless
appreciation in Kuwaiti stocks. In the Arab states in those days, only
sheiks could grant corporate charters, and only corporations could
become publicly traded companies. The royal family of Kuwait did not
freely grant corporate charters for companies that might become vehicles
for stock speculation, so there was a shortage of stocks to trade. This
shortage and the new unparalleled wealth that was looking for vehicles
of speculation gave rise to an over the counter market in Kuwait city
where shares in companies domiciled elsewhere in the Gulf---principally
Bahrain and the United Arab Emirates---were traded. Housed in a
converted air-conditioned parking garage, this market was known as the
Souk al Manakh---the camel market.

I was asked at the time by the government of the United Arab Emirates to
advise on the creation of a stock exchange in the Emirates. Great
fortunes were being made in shares of companies domiciled in the
Emirates at the time. Why not bring all this wonderful new stock market
activity home?

For six weeks I worked out of an office in the UAE central bank in Abu
Dhabi. The city was modern, laid out along a crescent beach at the end
of a promontory into the Gulf. The central bank was a modern glass
building behind severe cement columns that met in graceful Moorish
arches. From a great glass window of this modern building, I could see
along a turquoise backwater old tanned fisherman working on brightly
painted ancient fishing dhows that were beached on the blinding sands.
The Sheik of Abu Dhabi was the richest man in the world then. Only a few
decades earlier his brother, the former ruler, was afraid to walk the
streets of what was then a small sandy seaside fishing village for fear
of his creditors.

Being a macro oriented, top-down man, I set about to see how great a
supply of stocks had been made available for trading on a formal market
in the UAE. The results were simply unbelievable. The market
capitalization of the Kuwait exchange and the Souk al Manakh combined
ranked third in the world, behind the US and Japan. It was greater than
that of the UK with all its foreign listed companies. How could this be?
I asked, for both geographically and economically speaking, these few
countries---Kuwait, Bahrain, and the Emirates (the former Trucial States
under British domination)---were only postage stamps of sand on the
globe. Oil had brought wealth to these small countries but their
combined economies were still very small compared to those of the US or
Japan or the UK. More striking was the fact that most of the visible
wealth was not reflected in these companies. The rulers of these
sheikdoms owned the oil wealth. The hugely expensive real estate was
privately held, as were the extremely lucrative import franchises. What
assets and income underpinned these multi-billion dollar market caps?

We did a bottoms up study to find out. In Bahrain, a financial center,
there were banks, seemingly of substance. There was a raft of companies
that made cement and clinker. These companies were domiciled in five
former Trucial states whose names you never heard of that, alas, had no
oil. There was a company or two that imported sheep and goats for
slaughter. And then there was a handful of other companies whose
principal activities were not at all obvious.

The Sheik of Abu Dubai was the richest man in the world at the time and
the Ruler of Dubai was also quite well to do. The five other sheiks who
had no oil were poor cousins. For founders shares these oil poor sheiks
granted charters for corporations that could be traded on the Souk al
Manakh. I can remember driving one day to a small derelict town that was
the capital of one of these oil poor sheikdoms to analyze a company with
a high flying stock on Kuwait's OTC market. For the life of me, on the
balance sheet of this company I could find no assets of any kind. It
dawned on me that, behind most of this third ranking stock market cap in
the world, there were only a few cement and clinker plants, a slaughter
house or two, and quite a few shell games.

How do you tell your host government that the stock market they want to
bring home is a shell game? I pondered this diplomatic quandary for
weeks as I looked out my office window at those ancient painted dhows in
the desert sun. In the end I mustered the courage to tell the truth. "It
is all a bubble," I told my client-. "And it will burst." To my relief
and amazement, I was greeted, not with displeasure, but with laughter.

"You Westerners have been coming here for five years", they told me,
"and to a man you all have predicted a crash. Don't you understand,
there has never been a place on earth like the Gulf with such
unprecedented wealth? You will never understand that the Gulf market
cannot crash."

I had a long time friend in London. His name was Ali. He was one of
several Anglo Arab investment bankers that flourished in London in those
years. When I passed through London on my way back to the US I stopped
to tell him about my trip. Speculation on the Souk al Manakh was
financed with a curious type of informal margin financing by way of post
dated checks. So rapid was the rise in the Gulf market that post dated
checks paid an interest rate of 100% per annum. Ali was financing
speculators in this market. He listened and he smiled.

At the beginning of August I had completed my report for the government
of the UAE. I told them that the market they wanted to organize was a
bubble and that it would crash. Some weeks later I heard from Ali. He
called to thank me for my advice on my recent visit. He had called in
all his post dated checks. "Did you hear what happened to the Souk?", he
asked. "No", I replied. "Well, it topped quietly at mid summer after you
left, with no provocation. One can't quite say it declined or it
crashed; it has just stopped trading."

The Souk al Manakh was the greatest speculative mania of all time. One
could not even speak of valuation. Margin financing reached unimaginable
extremes; one speculator, who had been a customs clerk two years
earlier, had at the peak $14 billion in stocks financed with $14 billion
of margin debt. The people involved believed that the oil rich Gulf was
truly a "New Era". It did not take a trigger to burst this bubble; it
simply crested sometime in the dreadful heat of the Middle East's
summer. Its decline was so discontinuous it cannot be called a crash.
There were simply no bids. ¨

-END-

[gsc] Free banking a dangerous myth

Rayservers Blog Admin — 2012-05-24T10:20:27

Free banking a dangerous myth

http://www.bbc.co.uk/news/business-18186363

 Warning: Article is incomprehensible to the uninitiated as the comments at the
bottom show.

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[gsc] conversation continues

Jim Davidson — 2012-05-22T18:54:50

Today at 2 p.m, then Friday at 2 p.m.

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[gsc] conversation continues

Jim Davidson — 2012-05-21T18:22:05

The conversation on agorism and free market money continues
today at 2 p.m. central (GMT-5) for two hours.

Mumble server config available on request.

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[gsc] Jokes apart: govt changing baby diaper

Rayservers Blog Admin — 2012-05-18T20:35:03

I used to sarcastically talk about how UK PLC's Parliament squabbles about diaper
changes... real life imitating sarcasm:

http://www.telegraph.co.uk/news/politics/9273559/No-10-guide-to-changing-nappies-and-baby-talk.html

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[gsc] Oil Reserves for Struggling Families

Rayservers Blog Admin — 2012-05-18T19:17:19

http://www.telegraph.co.uk/news/worldnews/g8/9273371/G8-summit-David-Cameron-to-hold-talks-with-Barack-Obama-about-tapping-into-emergency-oil-reserves.html

The floodgates are opening. Prepare to watch those markets drop like pancakes!


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[gsc] conversation continues

Jim Davidson — 2012-05-18T18:54:18

Today at 2 p.m. (six minutes from now) central time (GMT-5).

The conversation on agorism and free market money.

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[gsc] TSA Agents Conduct ‘Full Monty’ Pat-Down On Henry Kissinger

Kevin Wilkerson — 2012-05-16T19:45:48

As a convicted war criminal, Kissinger could arguably be considered a
potentially dangerous individual meriting a security pat-down.  But
alas, it appears the TSA drones were merely victimizing some old man in
a wheelchair without any clue who he was:

http://washington.cbslocal.com/2012/05/14/tsa-agents-conduct-full-monty-pat-down-on-henry-kissinger/


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[gsc] a listing

Jim Davidson — 2012-05-17T04:16:21

A friend sent this listing.

Thomas Greco, master monetary theorist and practitioner, wrote _The
End of Money and the Future of Civilization_. He calls for a
<a
href="http://beyondmoney.net/excerpts/chapter-17-complete-web-based-trading-platform/">web-based
credit clearing system with four essential attributes.</a>
I hope Greco's design criteria can also influence this project's
development.

I just finished a maniacal three-week web search for such systems. My
short list follows.

(This is adapted from my blog post,  <a
href="http://andrewdurham.com/2012/02/money-without-debt/">money
without debt</a>. I'm hoping there's at least one or two here you
don't already know about :)  )

---
<a href="http://www.ces.org.za/">Community Exchange System</a>. CES is
international, free, simple, compatible with paper systems,
deceptively lo-fi and super cool. Very close to what the
aforementioned godfather of new money calls for

Other worthy systems:
<a href="http://payswarm.com/">payswarm.com</a> web standards-based,
frictionless, wildly adaptable
<a href="http://picomoney.com/">picomoney.com</a> clever, based on
<a href="http://opentransact.org">opentransact.org</a> which is
similar to payswarm
<a href="http://cyclos.org/">cyclos.org</a> open source software to
run your own bank, complete with free hosting; soul boggling!
<a href="http://ripplepay.com/">ripplepay.com</a> solves LETS
accountability concerns, unfortunately asocial
<a href="http://e-flux.com/timebank">e-flux.com/timebank</a> hip and simple
<a href="http://friendlyfavors.org/">friendlyfavors.org</a> 2nd
largest after CES, most social, clever, and a bit complicated
<a href="http://johnturmel.com/uniset.htm">johnturmel.com/uniset.htm</a>
very simple, start alone now
<a
href="http://www.personocratia.com/en/documents/game-full-document.pdf">JEU/GAME</a>
not web but paper-based, very elegant, semi-private, decentralized
accounting, compatible with CES, best for when the lights go out.

CES is the most accessible, practical, and mature. Others, like
payswarm and opentransact, have much greater potential. Open source
money has finally gotten legs, wings... and teeth.

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[gsc] Bill H

pintle — 2012-05-16T18:42:39

[Sentiment out there towards gold/silver/shares is really awfull.
Astounding, at this point in the game.]

In the meantime we have Bill H to put this train wreck in perspective…

Preventing the "Ultimate"Bank Run.

To all; I titled this piece "preventing the ultimate bank run" because
it is exactly what is being done every single day. Taking a step back,
2007 to present has been all about preventing actual AND virtual bank
runs. "Actual" being lines of human beings and "virtual" being
electronic withdrawals. All actions taken in 2007 and since then,
whatever they were named, were all about sustaining "confidence" in the
banking system. If you remember, many sovereign governments stepped up
to the plate in 2008 and '09 and actually "guaranteed" 100% of deposits.
A "run" had to be avoided at ALL costs.

Oddly enough though, the implementation of ZIRP (zero interest rate
policy) was short sighted and worked against "preventing a run".
Depositors have had less and less incentive to leave balances in the
banks because their returns were approaching zero. Not only were hard
asset prices rising because of currency debasement, savers were being
pushed to look for alternatives. SOME chose hard assets which over time
has added to the rising prices, NOT what the policy makers desired. As a
side note, banks (JP Morgan's recent loss as evidence) have been starved
for yield by ZIRP and done some things that would have been laughed at
or sent to jail for in years past.

For the last 2-3 years, Greek, Spanish, Portuguese and Italian banks
have watched as deposits slowly exited. In the case of Greece, their
banks have very little cushion left to fulfill withdrawals and as
history shows, these events grow and feed on "themselves". Obviously, a
bank run anywhere in the world with current confidence and sentiment as
shaky as it is could be disastrous. But, this type of run, whether you
actually see lines or whether it is done electronically, is not the
"ultimate" run. The ultimate bank run will be when investors begin to
panic out of the very bedrock of the global banking system, the U.S. Dollar.

It is absolutely imperative that you understand exactly "what" your
investments in Gold and Silver really are. They are the "anti Dollar" or
in effect the "anti Treasury" security. In reality, when you made your
purchase of precious metal you actually "front ran" the coming bank run.
Think about it, YOU have already panicked out of the Dollar and did so
before the rest of the herd. The old saying is very appropriate here,
"if you are going to panic, do it early because he who panics first
loses the least". Since I know that you understand that fiat currencies
do not hold value and continually drop in purchasing power, I just
wanted to more or less remind you of "why" you purchased precious metals
in the first place.

Sentiment in precious metals is now unlike anything I have seen before
in this bull market. It is exactly where "they" want it to prevent the
"ultimate run". Every news report, every BLS statistic released, every
"market price" that you see or hear is programmed to keep the herd from
moving. In particular, "moving away" from the "banking system". If you
have ever seen a herd of cattle then you can understand how stampedes
(bank runs) happen. What starts out as a "stir" with a few head (or even
just one) can grow and agitate others in the herd to move which then
grows further and further until the entire herd is moving in a frenzy.

The "ultimate bank run" will mathematically happen, the only questions
are when and how fast it happens. The Dollar cannot mathematically
survive as it's issuance is being forced to move exponentially while the
same time the economy cannot sustain yet more debt (Dollar issuance).
This is not my opinion nor anyone's "opinion", this is fact. Do the math
and do the logic (if you have not already) and you will have proof as to
why you must own the precious metals. No matter what price you are
"shown", just know that YOU have already "exited" and be relieved that
you won't be trampled by the herd as they finally figure out what you
already know. The ""goal" is to keep the herd from moving away from the
Dollar, even steadfast precious metal Bulls are questioning their own
logic and getting "scared". Don't let this happen to you, you "panicked
early" and made the logical move and are no longer in danger. "Danger"
is being part and parcel of a panicking herd! Regards and relax, Bill

[It looks like Mises' "crack up" is a fast "Big Bang" deflation, or
there is a fast "Big Bang" deflation right at the end of Mises' "crack
up" when the spike in the quantity of USD stops increasing and reverses.]

[gsc] conversation Friday

Jim Davidson — 2012-05-16T17:16:27

The conversation on agorism and free market money continues
this Friday at 2 p.m. central time (GMT-5).

I'll be off doing work for the university on Thursday.

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[gsc] NY Times, April 1, 2020

pintle — 2012-05-16T17:05:27

http://www.jsmineset.com/wp-content/uploads/2012/05/clip_image0028.jpg

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[gsc] conversation continues

Jim Davidson — 2012-05-15T18:56:46

The conversation on agorism and free market money continues
today at 2 p.m. central time (GMT-5).


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[gsc] From Craig Spencer

Jim Davidson — 2012-05-14T04:55:16

Higgs on how the state leads people to destruction.
http://www.youtube.com/watch?v=g5GfHsQK8p8

And a fine invention for the vending machine set.
http://www.youtube.com/watch?v=twcgDzopc8I

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[gsc] government for dummies

Kevin Wilkerson — 2012-05-11T23:26:42

A common man tries explaining government to a space alien:

http://www.youtube.com/watch?feature=player_detailpage&v=6gCFBMoLtkY

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[gsc] US military teaching 'total war' on Islam

Rayservers Blog Admin — 2012-05-11T18:16:03

http://www.bbc.co.uk/news/world-us-canada-18030105

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[gsc] David Stockman

Patrick Chkoreff — 2012-05-11T14:14:17

David Stockman discusses the end game of the current bubble:

http://lewrockwell.com/stockman/stockman11.1.html

Excerpts:











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[gsc] Willie, May 10th

pintle — 2012-05-11T08:17:18

Willie's latest:

http://usawatchdog.com/the-last-innings-of-a-very-bad-ball-game/#more-7933

Gold Cover Clause Guidance

...
The upcoming Eastern SWIFT bank transaction system is almost ready for 
prime time, its development in progress. The Chinese will take the lead 
position, taking the flack, pushing the process, which will not resemble 
the current SWIFT system in the flow vehicle. The transition of 
political power in Beijing makes the timing perfect. The Iran sanctions 
served to galvanize the anti-USDollar movement. One source involved in 
the barter system design, at the fringe of the new SWIFT system, 
reported that the Iran sanctions did them a great favor, by bringing 
several newer nations to the planning room for integration in the new 
global trade transaction system. DO NOT BE SURPRISED TO HEAR IT HAS A 
GOLD FEATURE TO HANDLE THE TRADE. Rumors to the effect that the Chinese 
want to implement a gold backed trade settlement system outside the 
USDollar, have been confirmed by my great reliable indefatigable source.
...

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[gsc] #OpBLACKHEATH - NWO NUKED :) HOORAY!

Passive PROFITS — 2012-05-10T18:26:43

http://www.occupythebanks.com 


Especially:

http://www.occupythebanks.com/2012/05/opblackheath-iran-presstv-does-bbc-job.html

 
Best,


PP


"The man who owns a slave, or lives by exploiting others, whether slave or not, is not himself a free man. He is a man who must look over his shoulder all the time, in fear. True freedom lies in a deep concern for the freedom of others, and if this is accepted it should make every man, out of pure selfishness, the ardent devotee of the freedom of his neighbor." -Leonard Wibberly, 1776 - And All That (1975), p. 72.