SW Richmond

G20 Finance Ministers Meeting and LBMA Precious Metals Conference

It is easy to non-violently restore your liberty. Stop supporting the big-money cartel that owns your government:

1. Go to your big national or multinational bank and withdraw all of your money
2. Deposit that money in a small local bank or credit union
3. Become your own bank: Start a program of dollar cost-averaging a significant portion of that money into physical gold and silver in an easily recognized and easily verifiable form (coins)
4. Bury them in a secure location (Bank of Gaea)
5. Never ever buy or hold U.S. Treasury securities

Gold: A Bubble Brewing?

December deliveries could prove problematic if there is no 'correction', so the likelihood of a correction is IMO high. Look at Dec '09 OI figures:

www.nymex.com/gol_fut_...

Roubini Doesn't Believe in Gold

'The gold story is not going to go away anytime soon, though it's not clear whether any economist will ever really understand it.'

As a longtime goldbug I have engaged in the same arguments with so many iterations of B schoolers spouting virtually the same nonsense about gold that I wonder when we will finally exhaust the supply. They all cling to their monetarist indoctrination, the one they had to regurgitate to pass the test to get their MBA, to wit:

Gold is a barbarous relic.
It produces no income stream.
It is a commodity.
You can't eat it.
It's only valuable because we like to adorn women with it.
Central Banking is the greatest thing since sliced bread.
Money printing is an OK idea, we're just replacing lost exchange tokens so there's no 'inflation'.

Economists and B schoolers will never understand it until it runs them over. More for me at a lower price. Hooray!

How U.S. Financial Sector Could Be Downsized

1. Claw back TARP in its entirety.
2. Claw back any funds laundered through AIG, including TARP.
3. Claw back all new money created by the Fed.
4. Mark all bank assets to market and bring them on-balance sheet.
5. See who's still alive. Close the rest, break them up and sell them off.
6. Restate all earnings based on this new, actual financial condition. Claw back any bank salaries and bonuses revealed to be unearned.
7. Audit the Fed, publish all raw data.

Stand back and watch.

Bullishness at Contrarian Extreme

We've had a V-shaped recovery, all right. In stocks, and nothing else, and entirely on the back of bailouts, guarantees and backstops on the taxpayers' nickel to the tune of as much as $23 Trillion. Source: www.politico.com/news/...

None of the fundamental issues that caused the crash have yet been resolved. We don't know how many of the losses have been booked and how many remain hidden, in spite of the "new transparency". We don't know what marks are being taken for off balance-sheet (undoubtedly toxic) assets. We don't know how many houses remain to be foreclosed but for now are in a state of limbo. We don't know what happened to the 800,000+ jobs that disappeared into the BLS jobless adjustment somewhere. We don't know what will happen when CRE resets start in earnest.

Wall of worry? What worries me the most is that I'm not on Goldman's 'Friends and Family Plan'. Are there fortunes to be made here? Absolutely.

Jamie Dimon: The Man Who Could Save Wall Street

lollercoaster

Defaulting in Plain Sight

History,

I have enough cash to lose my job and still survive for an extended period, without withdrawing any IRA assets. The survival period becomes much longer if I withdraw IRA funds to survive. I am not margined and would not try to time this. There are irrational men with political motives on the other side of this equation, working for Wall Street banks, and damned near anything is possible. Inflationary consensus is forming, making this a perfect time for the Fed to withdraw liquidity, crash the markets, force money into Treasuries, and punish dollar shorts. I'm expecting next leg down, but I don't have my finger on the button, someone else does.

Defaulting in Plain Sight

richard,

Your strawman comparison breaks down. You don't state whether your young man already has cash flow needs that amount to more than his income. It's not just about debt-to-income, but rather, is he borrowing to stay afloat? Those payments become a problem if the rest of his lifestyle is profligate. His answer is to borrow more, telling his lender "it's a temporary setback". Debt-to-GDP is only one measure, and a poor one at that. You also fail to mention that, without the borrowing and spending, GDP (and tax receipts) would be falling even faster than it is, so we are borrowing and spending in an effort to maintain tax receipts. In other words, we are incurring interest expense in an effort to maintain tax receipts...to pay interest.

Also, if you could show me where the fiscal restraint you're looking for will come from, I'd certainly appreciate it. And no, we're not going to save money by nationalizing health care.

Defaulting in Plain Sight

Because I've been expecting a hyperinflationary depression. First a prolonged deflationary sag to strip you of your job and make you sell anything of value to survive, then a hyperinflation to make everything you need cost dozens of times more that previously. The cash position is to defend the gold position through the deflationary period; that is, the cash is to allow me to avoid being forced to liquidate my gold.


On Sep 24 01:12 AM cd wrote:

> I wonder why SW Richmond would hold a substantial cash position?

Defaulting in Plain Sight

My choice of numbers may turn out to have been prescient. Here's another reminder that we're far from finished:
www.zerohedge.com/arti...

Defaulting in Plain Sight

Thanks Steve, it appears I have grabbed the wrong number, $23.8 Trillion, when I intended to use $12.8 Trillion. I've checked my documentation for $23.8 Trillion and have found it nowhere. The independent documentation for the $12.8 Trillion is here:
www.bloomberg.com/apps...

I apologize for the error. I cannot explain how $23.8 Trillion got subbed. The article needs to be corrected to include the correct number, $12.8 Trillion, and the point made about leverage is no longer mathematically correct. I stand by my assertion that we have defaulted, the difference only being one of degree.

'First-Time Homebuyer' Credit May Cost Government up to $96,000 Per Home

I gotta tell you, I am sick of hearing this crap. Defeatist sentiments do no one any good at all. Why bother expressing them? Do you want the rest of us to give up, too? Why not just crawl back under your desk, take what you get and like it? Leave the rest of us to continue deluding ourselves that we might actually be able to re-create an economic system based on truth and human liberty.

On Sep 20 08:50 PM notsosmart wrote:

> the stadiums are crowded with beer swillers who could not care less
> about the above article.as long as they have the app.$200 it costs
> for a day to watch the grown men knock each other down & collect
> millions for doing it, they dont care about tomorrow.the owner of
> the new stadium in dallas said it should be like roman coliseum.anybody
> know how the romans ended up?LOL

'First-Time Homebuyer' Credit May Cost Government up to $96,000 Per Home

"Were I to make a list of our dangerous radicals I should name, first, the Congress of the United States which treats with contempt the plain mandates of the Constitution."
- Massachusetts Congressman George Tinkham, 5 April, 1923

Comex Silver - Another Bubble or Desperation?

On Sep 15 07:21 AM ManAboutDallas wrote:

> The Banksters don't lose. Ever.
>
> So, what's the answer? Simple. BE a Bankster. Buy weakness, sell
> strength. Yeah, I know, that's too easy. Ok, do it your way, buy
> high, sell low.

I've an even better idea: Buy, take delivery, and don't sell.

The Coming Consequences of Banking Fraud

Excellent, Mr. Kim, I have nothing to add. Thank you so much for putting this together.