JoeSixPack

Capacity's Comeback Strongly Indicates Recession's End

In a "normal" business cycle, this would be an indicator that we are on an upturn, perhaps. But, we are not in a normal business cycle. In a normal business cycle:

1. We are not sitting on $1 QUADRILLION in frozen up derivatives (with no real hope of unfreezing, since many are related top 3 and 4)
2. We do not have 17% (real) unemployment
3. We do not have a complete financial system breakdown
4. We are not in a spiraling residential foreclosure process, with a commercial real estate collapse just around the corner
5. etc. (and there is plenty of that to go around)

Yes, we still have 350 million people who need stuff, so mnaybe companies cut back a little too much, and retailers stopped a little too much delivery, but to ccall the end of a recession based on signals interpreted over the last 20 years of "normal" activity seems much too optimistic, if not outright foolish.

U.S. Mint Actions Discourage Gold Ownership

Welcome to the Gold-Dollar Bifurcation

Welcome to the Gold-Dollar Bifurcation.
Just in time for the Obama administration.
Competition for the dollar.
This ought to cause the Fed to holler!

Welcome to the Gold-Dollar Bifurcation.
A new trend is in formation.
Shiny beats empty, and the financial systems goin' down.
If you got gold or silver, you're goin to town!

Welcome to the Gold-Dollar Bifurcation.
Derivatives implosion lead to dollar's deprecation.
Markets down, and bonds collapse.
The world's current financial system will lapse and pass.

History of Silver, Part I: Metal of the Moon

SIlver is also increasingly used in electronics. Solar cell technology requires silver to avoid electric losses at contacts.

Silver is the transitional metal in that it is both a monetary metal and a fantastic industrial metal. If the economy goes down badly, its monetary side will shine. If the economy booms, its industrial side will boom. Alternative energies will use a lot of silver (and think palladium, too).

Coming Soon: Banking Crisis of Historic Proportions

Proclamation on the Federal Reserve System of the United States of America
RevokeTheFed.com
March 2008

WHEREAS, Article I, Section 8 of the Constitution of the United States of America authorizes Congress "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures";

WHEREAS, on December 13th, 1913 the US Congress enacted the Federal Reserve System;

WHEREAS, the Federal Reserve System is considered an independent agency within the federal government, with oversight of Congress and containing appointed public officials on its board of directors;

WHEREAS, the Federal Reserve System Controls the Federal Reserve Note, the official currency of the great nation of the United States of America;

WHEREAS, there may be controversies regarding the legality and constitutionality of the Federal Reserve System, it is recognized that the said system has operated continuously as the central banking system of the United States since the inception of the Federal Reserve Act of 1913;

WHEREAS, the Constitution of the United States of America granted Congress the authority to create the current Federal Reserve System, it also does grant Congress the authority to modify or revoke the Federal Reserve System;

WHEREAS, the actions of the Fedreral Reserve System represent the credit and currency of the United Stated of America to the citizens of this great nation and to the world;

WHEREAS, the Federal Reserve System, acting independently within the federal government allowed, supported, and even promoted parasitical and non-productive uses of the money and credit of the United States of America;

WHEREAS, the United States and likely the entire world's financial system is undergoing massive de-leveraging of the said parasitical and non-productive uses of the credit and money of the United States of America (as well as other nations' currencies);

WHEREAS, the US dollar, the "Federal Reserve Note" is declining in value due to these parasitical activites, as well as potentially other causes;

WHEREAS, it is recognized that the citizens of the United States and other nations did willingly participate at some level in the creation and propogation of said parasitical activities;

WHEREAS, it is also recognized that the United States of America, a sovereign nation, has the legal, moral, and God given authority to take actions to benefit its citizens and to protect its good name, credit and money in times of difficulty;

WHEREAS, it is recognized that the current time is such a time of great difficulty;

WHEREAS, it is recognized the parasitical financial institutions and their activities are at odds with citizens of the United States of America and the good credit and money thereof;

WHEREAS, the current indications are that the Federal Reserve System is acting to preserve the financial system currently flooded with the parasitical activities;

WHEREAS, the current indications are that the neither the Federal Reserve System, nor the Congress of the United States, nor the people of the United States have access to the books of the institutions being preserved by the Federal Reserve, and therefor the degree of inter-connectivity and risk associated with the institutions and other entities cannot be determined;

WHEREAS, the Federal Reserve System is accepting non-performing assets as collateral for credit with ultimate taxpayer responibility to entities not under its legislative mandate;

IT MUST BE CONCLUDED, that the Federal Reserve System is not acting to the benefit of the people of the United States of America, its credit, money, and good name;

WHEREAS, it is recognized that the political will and capability of the government of the United States of America may not be up to the task of prosecuting this proclamation ; It is also recognized that this may be the only hope for the continued survival of the United States of America as the great nation as it has historically existed.

NOW THEREFORE, it is PROCLAIMED by those supporting this Proclamation that the Congress of the United States of America FULLY NATIONALIZE the Federal Reserve System, and take full control of the credit and money of our great nation; The Congress must take whatever action necessary to seperate out, sequester, disown, or otherwise neutralize the effect of the parasitical financial activities which led to the current crisis; The Congress of the United States of America must reorganize, replace, or terminate the Federal Reserve System as appropriate; or otherwise devise a system for creation of the national currency.

IT IS FURTHER PROCLAIMED, that the Congress of the United States of America in cooperation with the Executive of the United States of America contact allied nations and any other nation willing to participate in the overhaul of the failing and parastical financial sytem currently in operation and create new treaties and alliances as necessary to create a sane and productive system of finance with the express goal of supporting a productive national, and by extension and through voluntary cooperation, world economy;

FURTHERMORE, it is PROCLAIMED that it should be the goal of such an international effort to maintain fair international trading practices allowing for protection in national interest of labor, resources, and productive capabilities;

WHEREAS, it is recognized that such a move on the part of the United States of America may result in the necessity of an isolationist policy IF the other developed nations do not follow our lead; If such occurs, so be it.

SO HELP US GOD!

Is Financial Catastrophe Imminent?

The system is dead. The stimulus package may lessen the pain for a little while, but what we need is a new currency and financial system. Eventually we will be forced into that. Too bad there is no political will to just start there rather than prolonging the suffering.

Max Keiser: 'World Entering Phase Two of Global Economic Crisis'

Barrick has completed removing all gold hedges. This is very big for gold. They recently announced they would do this by the end of next year. Apparently they know something we DO.

Barrick completes elimination of all gold hedges (Marketwatch)
By Polya Lesova

FRANKFURT (MarketWatch) -- Barrick Gold Corporation /quotes/comstock/13*!a... (ABX 43.49, +0.80, +1.87%) /quotes/comstock/11t!abx (CA:ABX 44.86, -0.39, -0.86%) said Tuesday it has completed the elimination of all of its gold hedges and now has full leverage to the gold price on the industry's largest gold production and reserves. In September, Barrick announced its plan to eliminate all of its gold hedges within 12 months. "Our positive view on the gold price led us to accelerate the elimination of these contracts ahead of the schedule we had established," said Aaron Regent, Barrick's president and chief executive officer. "With their elimination we no longer have any gold price related mark-to-market exposure and will now fully benefit from increases in the gold price." Gold futures climbed to a fresh high of $1,199.30 an ounce earlier on Monday.

There Are No Good Choices for the Fed

Interesting article, and good that you brought velocity and gold into it. My question is how much velocity do we get from $1 Quadrillion of derivatives and off the balace sheet entities.

Coming Soon: Banking Crisis of Historic Proportions

"The situation in 1873 started with a financial panic in 1869"

And the demonetization of silver.


On Aug 16 05:22 AM markfl wrote:

> You're not the only one who feels there's more trouble to come. We
> may be in the eye of the storm. Fractional reserve banking is very
> important to economic growth, because it affects the positive acceleration
> of money. Not judiciously making loans to credit-worthy customers
> is the equivalent of stashing money under the mattress. The money
> does no good for the economy there.
>
> "I hope we don't have to compare what happens in 2010 to 1873." The
> situation in 1873 started with a financial panic in 1869. I happen
> to think the risk of a lost decade is uncomfortably high. We've been
> lucky that recessions have occurred roughly every 10 years since
> 1982. I think that trend is about to end. Recovery? How about 4-6
> quarters of weak recovery followed by another recession? Happened
> before (if you go back far enough).

REITs, CDS Spreads and Bear Markets

Will “cash for clunkers” be the Cinderella story of this recovery and revive Joe Sixpack’s desire to lever and spend or will the stimulus, which is still having a more potential than kinetic effect burn off like starter fluid on a brick?

Russia Makes the First Call for the Monetization of Gold

I suspect they will create a basket of many currencies, but they need time to divert their dollars to buying those other currencies (including gold of course).


On Jun 17 01:46 PM Roger Knights wrote:

> "Whenever I hear about conferences like this, I find myself wishing
> I could be a fly on the wall during the "private" meetings, cocktail
> receptions, etc., so I could know what's really being said and mooted
> about, ..."
>
> I wonder if their public talk about a basket of currencies and commodities,
> and of there being no alternative to the dollar (what about gold?)
> is mostly camouflage to avoid creating a disruption in the currency
> markets, and that the real point of the conference is to discuss
> the ways and means of getting to a mostly gold-backed currency. If
> that was indeed its real point, concealment would be needed to avoid
> driving up the gold price before the instigators acquired their share
> of it. If some sub rosa agreement has been made to reinstate the
> monetary role of gold, or at least to think seriously about it, you
> can be sure that outsiders wouldn’t be told in advance.
>
> NB: "Cui Bono?" is usually a good question. It almost answers itself--and
> explains a great deal: Three of the BRIC countries are major gold
> producers and the fourth, India, has large reserves that only its
> own stupid regulations (recently revised) have kept from being developed.
> They'd all benefit from the monetization of gold.

Russia Makes the First Call for the Monetization of Gold

The key is tha tthey do have nuuclear weapons, and in league with Brazil, India and China they do have some influence. Do not underestimate them. Remember the third little piggy built his house out of BRIC . You remember what happened to the other two?

Fortunately, the US has one of the largest gold reserves (at least it is claimed so).

On Jun 17 10:03 AM Gyoza Mimi wrote:

> Despite Russian's view of itself as a superpower that can suggest
> using its Rubles as part of the new alternative global reserve currency,
> the reality is Meggie Thatcher was spot on when she called Russia
> (almighty Soviet Union back then) an "Upper Volta with nuclear weapons".
> Medeveev can make suggestions, of course. And so can Bob Mugabe by
> proposing to make Zimbabwe's dollar the world currency. Aside from
> muted laughs about stupidity of the idea there will be very little
> reaction from other players, though.

Is the Fed's Independence at Risk?

Unfortunately, the Fed is the one who created, or at bare minimum allowed/encouraged/ena... the current collapse of the world financial system. Now we want to give them more power to "solve" the problem. This is insanity.

We can save the economy, but we need to surgically remove the failed financial system. We need to the private parties involved in the $1/2-1QUADRILLION derivatives bubble to settle their contracts between themselves. We need to put these parties into a bankruptcy type receivership to do this. We then need congress to create a new currency to support the 99.999% of Americans who were not involved in the direct creation and propogation of the derivatives gambling casino. We then need to pass laws and regulations (as well as enforce existing ones and reinstate older ones like Glass-Steigel) to avoid allowing financial engineers to destroy our financial system again.

RevokeTheFed.com

U.S. Mint Actions Discourage Gold Ownership

Keep in mind, the gold in Fort Knox is on the books at $42/ounce. They could sub out fabrication of the blanks from this gold and have plenty of margin.

As to the volumes- it is not as easy as turning a knob to double production.


On Jan 23 10:04 AM Smarty_Pants wrote:

> In their defense, US law does require the mint to use gold mined
> in the US for its coins. Given the high demand for gold coins and
> the large premiums, any new blanks which become available are probably being purchased by private concerns at prices above what the Mint is allowed to pay, leaving the Mint with a much smaller working supply of blanks.


>
> 2008 = 860,500 oz
> 2007= 198,500 oz
> 2006 = 261,000 oz
> 2005 = 449,000 oz
> 2004 = 536,000 oz
> 2003 = 484,500 oz
> 2002 = 315,000 oz
> 2001 = 325,000 oz
> 2000 = 164,500 oz
> 1999 = 2,055,500 oz
> 1998 = 1,839,500 oz
> 1997 = 771,250 oz
> 1996 = 275,000 oz

Federal Reserve, What Do You Have to Hide?

The fedreral reserve, especially under Greenspan allowed and even encouraged the cfeation of the currrently collapsing (collapsed) $1/2-1 QUADRILLION derivatives bubble.

We need to TakeBackTheFed.com

The Deteriorating Real Economy's Financial Indicators

The $1/2-1 QUADRILLION derivatives ponzi scheme has collapsed. It will take a few years before we even know how deep we will be in. We will likely have a new currency within 1-2 years. If congress had moved immediately to create one and put the current derivatives mess into bankruptcy we may have had a chance to save the economy. Instead congress and the executve are bailing out their banking constituents.

DerivativesCollapse.co...