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  • Rethinking how Seeking Alpha calculates Top Commenters  [View instapost]

    You said "This will force people to put their money where their mouths are...." Interesting observation. Their money.. Money always adds vitality to any discussion that's why SA is the leading site I would guess. We are all interested in making more money.

    SA as I understand it gets its money from site advertisers who in turn get their money from site visitors who buy their products. The attraction to the visitors is the articles and the commenters many of whom could also be the product buyers and not just passers by.

    The article writers can earn 1 cent for each visitor that comes their way and the commenters get a 'like' tick which possibly is not that rewarding simply because the most joy for many of the commenters probably comes from being able to add some thing interesting to the thread regardless if it is approved by others or not. Though having a genuine commendation that is not seeking to solicit a reciprocal appraisal can be a real buzz.

    David Jackson seems keen to reward the commenters so possibly that means they must add a good amount of revenue for SA and so he might like to share those profits and possibly promote more interesting comments but he has a problem fixing who and how to reward with money. This must be awkward because the general wealth of most commenters here appear well above average so 1 cent for each like tick ( he can't pay more than he pays the article writers) probably is going to have less effect than just the tick alone. Therefore I think the best thing to do is get rid of the ticks altogether as they are maybe a lazy way of showing approval which is best done by making a comment which also has the benefit of adding more comments and identifying the agreer. Nice new word, short and easily understood though not as interesting as agreeee. Having the tickers add a comment allows others to see their musings which can also create more comment and I would guess more comment is probably good for David's business.

    There is an alternative method where the agreers themselves pay the commenters and the article writers. If I like what you write why can't I pay you some thing. Give you a real tip. And better still why can't I pay you in real silver or gold. Lets say I am so impressed with Thiazoles comment I want to show my appreciation so I give him 1 gram of silver which is roughly today about 1US dollar. Maybe I am so impressed I give him 1 gram of gold. And everyone can see who gave him the PM. So a list could be compiled of the highest metal earners which could also draw more people to read those same articles and comments. This means we would all be putting our money where our mouths are which is what Thiazoles suggested. 2 grams of silver to Thiazole for that suggestion.

    Now the only problem is how could the mechanics of that delivery system be designed. Well isn't that a coincidence. I just happen to own the world's only self funding micro payment system which uses AUD, gold and silver. Now isn't that just about the most amazing coincidence ever.

    David, you get 5% same as me.
    Oct 2, 2011. 10:15 AM | 2 Likes Like |Link to Comment
  • Housing Is Not Sexy Anymore, But It Holds The Key  [View article]
    All the posts I've read here today apparently want to find a solution to the US and global economic crisis using the same monetary system that is now broken and has been broken since 1971. To think outside the box you must be able to TRY and think outside the said box. This can entail thinking things that the author of this excellent article himself suggests are 'crazy'. C-R-A-Z-Y-Y-YYY. Most of you should have picked up on 1971 and said 'Oh no, not another gold freak'. But just hang in there. Loosen up a bit and TRY to think outside this confining box.

    Supposedly there is about 2 large swimming pools of refined gold in the world. Possibly only one is available for sale while the other is kept as family treasure and has been for a very long time. These families that own this treasure know its real value and have no interest in parting with it. They never fell for any Keynesian guff about barbarous relics. Sure they have paper money. What the hell they print most of it but 2000 years of financial dealing has taught them well. Only gold is money. That's why they name themselves Goldman, Goldstein, Goldsmith. They are the experts with gold and they know its true value and they intend to hang on to their gold and even acquire more, forever. Fortunately only nothing last forever.

    Because of their great wealth they have helped create some of the great human achievements of the last 1300 years and in doing so have been well rewarded so much so that they probably now have large holdings in most of the world's banks including the central banks. These are the men with sacks of gold other wise known as Goldman Sachs and they often controlled human destiny. But recently they lost control. They along with all the other banks are now technically bankrupt and should be close to being wiped out. Forever. But they probably think they will be wiped out 'only on paper' and they've always got their gold for the rainy days. We can start up again. Not this time. This time everything will burn, especially the bankers.

    The only person who has in my knowledge has consistently explained the malaise that is our Socialist economies is Professor Antal Fekete the mathematician. His in depth analysis of the present day accounting practices has not only shown why we are in such a mess but that the evidence points to a total collapse of the world economy and the arrival of the 4 horsemen so to speak.

    Antal perceives us returning to the technology known around 450AD, the time of the collapse of the Western Roman Empire when gold went into hiding in Europe for 1000 years. This can be averted and really simply.

    First the economies.
    Paper money will fail at some time soon. The FED can keep trying to reflate but without gold as money nothing will really happen. Plus there are only a few people with any gold so everybody else will go hungry anyway. That is unless everyone stops paying their mortgage or rent. And they will eventually because there will be no money to pay it with.

    Everybody. Just stop. Pick a date, say Friday 21st October 2011.

    If we stop paying now while all the infrastructure is still intact and we have electricity and planes and cars have fuel then we can possibly survive. Better still if each government passed a law to that effect while they still can. I bet Ron Paul would become president if he promised to do that.

    Once everyone is not paying then there can only be one outcome. Everyone, where ever they normally live on Friday 21st October 2011 at 12 midnight will become the owners of that property. By doing this action now the pendulum of wealth between the rich and the poor loses its 45 degree angle and levels out, only the gold is still at one end and most of the land is at the other. All that is needed for a circulating currency (so everyone can eat) is for those with gold to buy lots of the properties of those with land and these land owners can become renters paying with the gold they just earned. World wide this should take about 2 swimming pools of gold and 32 swimming pools of silver and it can be transferred via the Internet in grams to 4 decimal places. Theoretically the gold does not have to move at all, just be constantly seen and accessible by all.

    If you already own your home, lucky you.

    Don't forget everyone living in a house, flat, hotel room, barn become equal owners of that property. This leaves the money boys with most their commercial buildings and everybody else with their own piece of real estate. See, real estate is the answer.

    All government properties need to be sold for gold and silver and each citizen gets an equal share of the bankrupt estate.

    Last but not least we must always stop the regrowth of Socialism. This can best be done with gold and silver as money coupled with the Primary Fundamental Right and the Real Bills Doctrine.
    Oct 1, 2011. 10:40 AM | Likes Like |Link to Comment
  • Lessons From Last Week: From Faith And Hope To Fear And Dread  [View article]
    Fabulous article. Great comment. Way to go!
    Sep 25, 2011. 12:48 PM | 2 Likes Like |Link to Comment
  • Gold Gets Hammered  [View article]
    The Russians reckon they know why gold is getting hammered.

    "Will the probable collapse of the “gold rush” signify a new wave of crisis?
    On the one hand, it is obvious that such a collapse leads to huge losses or even bankruptcies of many of the major participants of exchange games and their dependent firms and banks.
    Therefore, the immediate market reaction will be entirely negative. Negative impact on the market will be amplified by numerous publications in the media and business press, drawing
    analogies with the events of the early 1980s and earlier similar events, as well as by losses of the shareholders of bankrupt companies. The current instability of major world currencies and the
    most powerful world economies, unfortunately, does not preclude the escalation of a short-term downswing into the second wave of economic and financial crisis."

    Personally I prefer Moon's explanation.
    Sep 24, 2011. 07:23 AM | Likes Like |Link to Comment
  • It's Time For Americans To Become Austrians  [View article]
    James . Good article but you appear to have avoided like the plague von Mises most insistent remedy for fiscal health, the return of the gold standard.

    Also Austrians are against all forms of Socialism which obviously includes socialized health services and government issued pensions and free libraries.

    All insurance whether car or house or medical is basically a form of gambling where the loser actually wins and the non losers get to pay higher premiums. They never go lower only higher. Insurance increases the cost of everything. The less insurance used the cheaper it is to do business. Austrians are usually adherents to a User Pays system.

    The main fault with insurance apart from the added cost to the production of any goods is that in a Nanny State it breeds a mentality of risk avoidance. Risk avoided accumulates over time and then returns as a avalanche. The derivatives market right now looks like the sides of 2 snow packed mountains with the economy in the valley below. At some point the will be a collapse.

    "There are only three ways in which we can get out of this mess economically."

    No, there is only one way. The problem is the obese size of the Socialist US government which is that way simply because it can print all the money it wants to feed itself and its retinue. Unfortunately the US Constitution has failed to stop this growth so that also needs replacing with something far simpler so there can not be different interpretations of what the old English means. The simplest thing is to have everyone legally responsible for themselves. This should eliminate over 95% of personal taxes.

    Taxation is only needed for corporations and a 33.3% corporate tax would allow for an equal 30% weekly dividend payment to EVERY citizen with 3.3% used for defense and policing which are the only requirements for any government of a free country. This dividend would promote home production thereby getting every one back to work.

    All government assets need to be sold for gold and silver including roads and the money and again distributed equally to the citizens. This will help create a circulating currency.

    Most important is the need to allow everyone to become the sole owners of the land/homes they occupy. This will rebalance the wealth and stop the foreclosures. With the fiat currency gone they won't be able to pay anyway.

    Also the Mises gold standard fails to incorporate a Real Bills Doctrine. The great problem with the current banking system is the over use of Interest and not Discount. There is a reason why Interest was banned by all religions until the 15th century and by Muslims (Riba) is still regarded as a greater sin than sleeping with one's mother.
    Sep 21, 2011. 11:44 AM | Likes Like |Link to Comment
  • U.S. Employment-Population Ratio Hits New Low: Why It Matters for the Budget Debate  [View article]
    Apportioning blame is fun but in history it is probably impossible o get consensus on anything simply because there really is no such thing as equality except in bosons. We are all different and will always have different opinions so we can spend the whole day trying to convince each other that we are right and you are wrong and it will usually work out 50/50, each still convinced they are correct. This seems to be some sort of universal law of opposites.

    Governments get elected by around 5% of the population as the other 95% will always cancel each other out. When we fight we are trying to get the support of that 5%, as there is usually 47.5% who will agree with us and 47.5% who never will. So unless we belong to those extreme views often held by the 5% we can rarely change our position unless we are in such a parlous state that the truth is blindingly obvious. I think that parlous state in almost upon us.

    Professor Antal Fekete the mathematician and monetary scientist thinks the possibility exists that we are about to enter another Dark Ages which lasted 1000 years after the collapse of the Western Roman Empire. Should that happen then we have a long time to discuss what caused it and it will always be roughly 47.5% against 47.5% for any particular view.

    So speaking for my 2.5% I think we need this coming catastrophe to rid ourselves of the Christian/Socialist ideals we have been imbibed with over the last 80-100 years that has caused us to reach this point where there is a good chance as a species we may not survive the possible coming Ice Age around 2030-2040.

    In fact we might be very fortunate its happening now giving us enough time to get prepared.

    Great article by the way.
    Sep 16, 2011. 09:41 AM | 1 Like Like |Link to Comment
  • Hungary First To Offer Real Solution To Debt Crisis; Sets Stage for Gold's Re-Monetization  [View article]

    "And all of this is justified for the sake of returning to gold. BP - I think that your oil rig is leaking. :-) "

    Looks like venerability just blew yours out of the water.
    Sep 15, 2011. 10:30 AM | Likes Like |Link to Comment
  • Hungary First To Offer Real Solution To Debt Crisis; Sets Stage for Gold's Re-Monetization  [View article]
    Wow Mr. Patel. You've called it first. Gold is coming back as money!

    "This type of debt cancellation is exactly what is needed and is the first step to a real solution. Until global debt levels are significantly reduced, there will not be sufficient capital available for investment or consumption. It's that simple."

    The way I see it once the fiat currencies fall over then the best way to refinance the world it by every one having complete ownership of the place where they normally live regardless if they are renting or mortgaged or in a long stay hotel room. There is no way out of this. Millions of families can't be forced onto the streets and who's going to force them anyway? Before long all the banks will fail so there will be no one to pay and nothing to pay with. So all debt in fiat currencies is wiped.

    As most of the worlds wealth is shifted to one end then this is the easiest way to spread it back around a bit. Those with gold and silver can then buy property from the new owners who become renters using the gold they have just earned and we then hopefully get a circulating metal currency. Simple in theory.

    All those with large reserves of hidden metal should be keen to bring it out of hiding with so many bargains out there to be had.

    All government owned property including roads should be auctioned off for metal ASAP and the proceeds distributed equally to each living citizen regardless of age. Obviously this will best be done electronically so most transactions for a while will be electronic and by weight and purity probably through the Internet.

    The most important thing is to keep the power supply normal and all communication open. If we lose power for more than a week or 2 then we could be heading back into the 15th century before we know it.

    There probably will be a period of instability while the military possibly take control but once the gold starts moving around an interim government possibly made up of economist from the Austrian schools should know what's got to be done to fire things up.

    Personal income tax should be abolished along with most other taxes though it should still be collected for a year but put into a credit union savings account accessible a month after deposit. That way the employers don't get to keep it and it makes a large national savings fund.

    A 33.3% company tax could be collected weekly with 30% being equally distributed to all citizens allowing for 3.3% to run a very very small government. This should give incentive for the return to a manufacturing industry because all home made products will return money to the buyers.
    Nothing like gold to create wealth and destroy Socialism.

    More at
    Sep 13, 2011. 12:17 PM | Likes Like |Link to Comment
  • Remembering 9/11: Lessons For Today's Financial Crisis  [View article]
    Please don't forget that lobbying is a companies or countries method to seek attention from those that accept donations/bribes for pulling levers. Making lobbying illegal will just force it underground. Banning political donations is probably a better idea. That should break up the party structures and allow for the election of more independents.

    Don't be keen to lambaste companies for trying to get an advantage when the system is legal. Never before in human history have we had such magnificent entities who pay us to work together with friends to invent or produce some thing of value, and often pay us enough to live in a clean and comfortable home with a nice car and a happy well fed family.

    Companies are not the problem, Socialism is and only gold as money can solve it. See Professor Feketes masterpiece here.
    Sep 12, 2011. 12:05 PM | Likes Like |Link to Comment
  • Remembering 9/11: Lessons For Today's Financial Crisis  [View article]
    As an young Englishman who went to NYSU in the early 60's and was there for the Kennedy nightmare and shared that pain whilst amongst you I unfortunately I have mixed feelings about 9/11.

    I'm sorry about what happened but the US that I knew back then by the 80's was turning into the Socialist monster that I had learned to fear in the UK so much that I moved to Australia. 9/11 I think was a backlash against that monster and those that fed it.

    On a visit in 1985 I had lunch at the top of one of the Towers. Even the men's toilet was the height of opulence with gold fittings everywhere. It was a sign that America shone. Your system of government still produced amazing wealth and I was dazzled. But I noticed the flame I knew before in the 60's of a sort of quietly strong honesty somehow had seemed to have been supplanted by some thing else. It wasn't until a few years later did I see what it was when I realized the same thing was happening to Australia. It was a world wide cancer, growing so large that it was causing all our loss of individualism. Its main manifestation in the US was in Milton Friedman's idea, the DEA. Something he was to publicly to regret until he died.

    As I saw it your new Socialist government had metastasizing to the very back bone of America freedom. Over the years America became its government where as before when I was there the people were in charge of themselves. Now they were in charge of growing the Socialist tumour that JFK had unwittingly nurtured the germ planted by FDR when he said those famous lines "Ask not what your country can do for you - ask what you can do for your country". Change the word country to government and you can see what has happened.

    Your government is now so huge and voracious and you don't have the energy to feed it any more. JFK tried to right the situation by bringing in the silver backed dollar and he died for that.

    What's happening now to the world economy is that the feeding of that tumour is coming to a halt. Its eaten almost everything. Only the Chinese larder is half full and they are complaining that your tab is getting too big. Either you must let your government die now or it will seek more food elsewhere and then you'll reach this point again some time soon. You reached this point in 2008 but the FED fed it again. Maybe that's its job.

    Once this is all over you must cut out its Socialist heart and cast it into the flames of liberty. This can only be achieved by a wide acceptance of the principle of the Primary Fundamental Right, the innate right of ownership of your own body. Only that will stop a relapse.
    Sep 11, 2011. 10:29 PM | 2 Likes Like |Link to Comment
  • The Gold Rush Has Just Started  [View article]
    Great article couldn't agree more except for use of depositories.

    I would have thought that when the Crunch comes one of the first places to be looted will be the depositories and anywhere there are security boxes. They will be treasure troves waiting to be dug up.

    Also any records kept of gold sales by the bullion dealers will be like pirate maps to both the authorities or what remains of them and those intent on getting their share.

    I remember reading about a bullion dealer in Sydney around 1980 who closed up and disappeared with all the PM in storage never to be seen again.

    Your first idea sounded best, take it home. Bury it somewhere if you must or move to India and get your wife to wear it where every other wife is doing the same.
    I wonder is that safer than leaving it at home?
    Sep 11, 2011. 01:23 AM | Likes Like |Link to Comment
  • Implications Of Venezuelan Gold Repatriation  [View article]
    The List of ism's in descending order of freedom.

    Capitalism only works with gold as money. At the moment every western economy is Socialist and Socialism only works with paper money. In Capitalism the military has low range authority.

    What we are watching now in the world markets is the inevitable collapse of Socialism just as we watched the collapse of Communism in Russia. In Socialism the military has medium range authority

    Russia is a basic Socialist state pretending to be the same as all the western economies but as it is run by KGB veterans that makes it a hybrid stuck somewhere between Fascism and Socialism. Fascism looks primed to take control in Russia very soon.

    China gave up Communism for Fascism which is the next rung up the ladder towards Capitalism. In Fascism the military has high range authority.

    It is possible China could jump past Socialism and become a Capitalist state in their next move but only if they can control their military who are itching for a payback fight with Japan once the US leaves Asia. If they fail then that could be sometime next year.

    America is the leading Socialist state who could become the leading Capitalist state if they elected Ron Paul as president but it looks more likely they will descend into Fascism with the collapse of their paper money economy.

    Religious states are all Fascists states.
    Sep 10, 2011. 11:35 PM | 2 Likes Like |Link to Comment
  • Market Outlook: September Will Make Or Break The Market  [View article]
    Very interesting article. Thanks for that.

    Like all of us I cannot but guess what is to happen to the world's finances and with articles like these it seems obvious but in my experience there is often another possibility.

    When I look at the over all picture of gold it seems to me that this current downturn though real could allow for the springing of an elaborate trap which has probably been in position for over a hundred years by a group of old gold owners to gain for themselves even more gold. I guess it was used after the Battle of Waterloo and again in 1933 when FDR stole everyone's gold and stored it away probably somewhere in London.

    This group has a very large quantity of gold possibly equal or larger than the known amount of gold out there at the moment. They don't want paper money. They print most of the world currency notes as it is.

    Once there is a general consensus that only gold can save the day and we all buy as much as we can afford then they should be tempted to release enough gold as necessary to collapse the price. Then all they have to do is mop it up from the floor of their central banks after exchanging it for coloured paper with numbers on it. Again they get the gold and we get the paper.

    The only remedy that I can think of is not to panic should this happen. I realise many banks will try to force everyone to pay their debts owed to the banks using fiat paper which is actually valueless even now. Our main debt is our houses. We must not leave our homes even if we rent them. We must all stay put together. It is the only way I can see that will allow for a possible redistribution of the world's wealth. Once we give up our gold we are gone anyway and have to start from scratch again as in 1933.

    As I see it gold as money is the only thing that allows for true freedom. Holding on to gold is the only way you can remain free. Exchanging it for $200,000 an ounce is still exchanging it for bits of paper that will eventually fall over again. I think Americans actually lost much of their freedom when they let the Socialist FDR steal their gold. Over the last fifty years they have managed to get a lot of it back but this is probably new gold. The gold they lost is more than likely still deep in the vaults of The City.

    Now we all could be about to lose our gold again this time in a possible world wide operation that will culminate in a new reserve currency made up by the owners of all the worlds central banks. The same owners who collected FDR's gold and paid for it with their federal reserve notes and who own most of the other banks everywhere as well as the major miners and the news distributors and the Economist magazine. Maybe even Seeking Alpha. Remember the possible objective is not to steal our gold but to legally buy it back off us at such a low price that we could have a gold aversion for the rest of our lives. Those that control the paper money control the world and we are their slaves even if we enjoy being their slaves.

    As I see it we are all inside the coloured paper Matrix but instead of swallowing the golden pill maybe for the time being we should just bury it somewhere safe until it can be used as real money. Better it stays in the ground for a hundred years than to give it to them for nothing which is what fiat paper is.

    I disclose that I own a gold and silver and AUstralian dollars Internet micro payment service at
    Sep 4, 2011. 10:49 AM | Likes Like |Link to Comment
  • Saxo Bank’s Outrageous Predictions for 2011  [View instapost]
    The link to the Saxo bank seems broken.
    Sep 4, 2011. 01:47 AM | Likes Like |Link to Comment
  • Google's Schmidt: Patent Issues Will Slow Progress  [View article]
    crowdsourcing? I already did it...

    Once the Crunch arrives there will be no patent protection for anyone.
    Here I've built a prototype world wide patent system that hopefully gets its protection from the business world themselves and only costs $10AUD to file.

    The real problem today with the current patent system is the cost of filing. How many clever Indians or Chinese inventors can afford the US patent attorney fees? Come to think of it how many Americans can? There are probably some really brilliant ideas out there that cannot be fostered within the present system. The whole thing has been captured by the big guys who can afford to pay the parasites who live off the present system.

    Under my system all patents are restricted to 5 years of life. Any longer obviously stifles innovation and promotes the expensive legal fights and the patent trolls.

    For the first 2 years the owner can keep sole ownership and for the remaining 3 anyone who uses that patent must pay the owner 10% of whatever profit they make. This should create greater competition by reducing the product price earlier than the present system.
    Sep 2, 2011. 09:36 AM | Likes Like |Link to Comment