Sunday, December 19, 2010

Preparing Accordingly

Lately, I spent a lot of time fashioning posts about the daily machinations of the gold and silver markets. I will, no doubt, continue this practice as it is a hobby/passion of mine. However, the subtitle of this blog refers to the end of The Great Keynesian Experiment and its implications so I feel I need to "get back to basics", so to speak, as it is the "prepare accordingly" part that we all need to practice.

I found this image on Google and it seems to sum up my point of view. We are but children, at once hopeful and optimistic, yet watching our future drain away. The arcade coin drop is a metaphor I've used often in the past and I think it provides a decent visual. In the immortal words of Inigo Montoya: Let me explain. No, there is too much. Let me sum up.

Our "coin" was dropped by the great Texas slimeball politician, LBJ, when he created The Great Society in the 1960s. A new, expanded role of the US federal government was created and politicians learned that they could manipulate government largesse to their own political gain. In 1971, the coin began sinking into the funnel and spinning faster when republocrat President R. Milhous Nixon, realizing that the gold-sponsored money supply of the US could never grow at a pace sufficient to support this ever-expanding government, removed the US from the "gold standard" and the US dollar has been backed by nothing but the full faith and credit of the US government ever since.

Republocrat Jimmy Carter presided over the initial wave of stagflation brought upon by Nixon's decision. The "coin" kept dropping and circling faster and faster during his four years in office. In 1980, suddenly there was hope. Conservative Ronald Wilson Reagan was elected and through a policy of tax-cutting and higher interest rates, the conservative Reagan defied the laws of physics as the coin actually moved up the funnel and slowed. However, having succumbed to old age and senility, even Reagan suffered a "death-bed conversion" to Republocratism  and the coin began dropping again in 1986. Republocrat giant, G. H. Walker Bush took the reins of government in 1988 and, by 1992, our coin was spinning faster than ever and dropping at an alarming pace.

With the election of hick republocrat Billy Jeff Clinton in 1992, things began to get out of control. Soon, faced with a rapidly approaching end game, all republocrats in Congress and the Federal Reserve decided to go for broke. By massively inflating the US money supply, an illusion of prosperity took over, not just in the US but globally, too. This mirage held our collective imagination until the year 2000 when, suddenly, we began to realize that all was not well and that the coin was actually spinning faster and was much closer to the bottom than we'd thought.

"Good heavens. We can't have that!" exclaimed the new republocrat president Dubya Bush. With his partners in crime in Congress and the Federal Reserve, Little B reached into the funnel, grabbed the already speeding/dropping coin and actually gave it a push faster. By 2008, the coin was nearing the bottom of the funnel.

Just then, a dangerously under-qualified former street radical republocrat was elected president. President B'rock O'bottom is now presiding over the end of the game. At the end, the "coin" spins faster and faster until the bottom simply drops out. This is where we stand today. Are not events spinning faster and faster? Are your politicians and policymakers not making more rash and spurious decisions with each passing day? Are global leaders not positioning themselves for the next World Order?

The end of US hegemony is near and with it, the end of the US dollar as "world reserve currency". This catastrophe and all in entails could have been avoided with responsible leadership and an educated/involved populace. However, selfishly, we in the US decided it was best to pursue a plan where we foolishly thought our recklessness was beneficial. This attitude was best summarized by republocrat and Keynesian legend, John Connally, who, as the coin was dropped in 1973, told the world that "the dollar is our currency but it is your problem". Sadly, we allowed Mr. Connally to be prescient for almost 40 years but the world is about to turn the tables. Soon...very soon...the coin will finally reach the narrow end of the funnel and the bottom will simply drop out. What happens next will not be fun and games.


  1. The Change:

  2. I'm about ready for some fun and games.

  3. below please find the frightening truth that is our is 14 minutes that makes one squirm..well you decide...

  4. We are upon the age of wisdom. The age of mysticism and greed is about to have the blanket pulled from it. The powers that be (the old money of the world which now controls the world) is testing their power to try to take over the world.

    If this comment seems a bit out there, let me know if you are still apart of human history where people are ALWAYS trying to take over the world, and today is no different...

    Mr. Ferguson is simply analyzing the silver/gold markets, but what he is really doing when he describes the actions is documenting the collapse of the greatest financial ponzi scheme in modern history. This is all by design, do not think that we as humans cannot overcome this. The fact is, the way we can fix the solution that MASSIVE problem that is looming right in front of our very eyes is to awaken to our reality. We must spread the truth. First, we must learn it for ourselves. Then, we must feel the pressure to tell others. This is a race against time, and the faster we spread the truth to inform all that we can, the more likely we are to have a chance at freeing ourselves from economic slavery.
    If you are interested in what I am talking about, please visit me at my blog.

    Mr. Ferguson, the stage is yours for the gold and silver timeline. Those who know what is going on speak of gold and silver's journey to its rightful place as a monetary value. We know where silver and gold are going relative to the U.S. Dollar... do you?
    Scott J

  5. Timpa,
    Here's our choice. You can get out of the Matrix and be part of the solution, or be like Joey Pants waving his virtual hunk of steak in the air and decide to go back in.
    But remember- they think you stink, and in the end after they have sucked you dry they want your disgusting to them carcass buried and they want to crush your childrens bones

  6. Unfortunately the loonies are moving in. Best to just read Mr. Turd's commentaries and ignore the comments section.

  7. Yeah, there is no banking cartel tired of taking over third world countries, and moving on to Europe, Japan, Australia, then the US. There is no secret society bent on world domination, we are just witnessing a normal recessionary contraction. Fiat money is truly sound-well backed, it's just a phase.
    Oh wait- if by "the loonies are moving in" you meant Canadian dollars are taking up residence nearby, then...never mind.

  8. Timpa,

    It's tough to take someone seriously when they define a derivative as a "financial instrument of fraud". Of course, no one in the media actually knows what a derivative is, hell, most people dont. What the last derivative you traded, and were you committing fraud? Likening derivative trading to "printing money" to "buy up assets" the tune of 1500 trillion dollars is, frankly, retarded.

    While I agree with his thesis (we're screwed), ranting and raving with no thoughtful supporting arguments does nothing to educate people in what's really going on.

  9. well, RoCoach, I've just read posts here from today, Sunday, and Saturday, and there is a healthy variety of informations reflecting different points of views - you've chosen not to share which comments you ascribe to the "loonies" invading, so I'll just go on the record with my own opinion - anything that is put forward respectfully, and does not denigrate other humans as less than, I'm okay with. I hold some perspectives that others mock, but this has always been the case, throughout my life. . .I try to keep an open mind when weighing up differing perspectives and incoming information, as I recognise the "truth" of being human varies with the culture & beliefs of individuals.

    In times of massive change, habitual thinking will have to shift or it will become very painful to exist. . . "beliefs" will need to encompass more of the reality experienced, or the individual holding those beliefs will cease - it's evolution, adapt to survive. This does not mean to de-volve into a human predator such as the sociopaths who appear to be in charge, but learning to adapt one's point of view to make sense/use of what is actually happening, not resist with hopes of what one wishes were happening. . .

    in the spirit of other posts offering points of view/awareness, I'll share my favourite short video of late: "The Story of Your Enslavement"

    it's only 13min, I've watched it many times, always deepens the knowledge it shares. Worth a few minutes, in my opinion.

  10. All that was said was this may be a future scenario, no one has a crystal ball, I found it interesting and potentially as valid as anything else that comes down the pike concerning our fate, it's nothing but a freaking video...ya'll take it for what it's worth and then tell us what the "truth" is...I'm just a messenger, believe I found this video on silver bear cafe...I'm out of the "so called" matrix, have been for years, don't play paper games, am in to physical. What I think is I'll hang with RoCoach's opinion and leave future videos out of the forum.

  11. silver starting the week very nicely! (despite the USDX going the wrong way)

  12. My projections as (latest) of March 2011:
    1600 POG
    40 POS
    100 WTI
    -8% of EURUSD or USDX
    Place your bets gentlemen!

  13. If you're in Maui, like I am, Canadian "loonies" are here in force. Their RE bubble hasn't popped yet. So I'm telling them to sell there, and buy here. No Brainer.

    As far as the Banksters and OTC derivatives go, hell yes, it's relevant and on topic here. I have no idea what RoCoach's problem is, and don't care.

    Go Turd! Great blog.

    Bay of Pigs

  14. AGoldHamster,

    do you mean USD down 8% vs EUR?

  15. That dipshit Robot Trader and his other login, Harry Wanger have set up shop here under the name 'RoCoach.' Hopefully his mom gets home soon from turning tricks and kicks him off the computer.

  16. Its called State legalised Theft via devaluation of currency,assets and Wealth.Insurance is Gold and Silver,skills and anything with intrinsic value.And Lo the World economies were built on sand.

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  18. kudos to those that saw the video the way I did...

  19. An anonymous poster at Harvey Organ's blog posted the below comment, which I think is the most plausible explanation I have heard putting together "all the pieces", including Ted Butler's recent (re)allegation that perhaps the Chinese are the big "silver short":

    The question(s), in my mind, is; did China sell covered calls against an above ground hoard or
    future production from "in the ground" stock? And if against an above ground hoard; how willing
    are they to part with it? Or would they rather cash settle the covered call hedge contracts?
    If they have in fact sold calls against an above ground hoard, physical settlement would tend to
    depress the price of silver as supply is increased. The USG without a doubt would love to see this.
    On the other hand, if China were to cash settle the covered calls, either because they sold against
    future supply and can't deliver - or because they do not want to part with the physicall, then the
    price of silver would rocket higher on supply shortage. China would love this and the USG would do all
    they could to prevent this given what they did in the gold mkt.
    Now enter the Tropos story.
    Could that 700 Billion have been intended to cash settle China's covered calls? Whatever their motivation?
    If so, that would explain the alleged theft in order to prevent cash settlement and the resulting explosion
    in the price of silver.
    This is how the pieces fit for me and the resolution of which will change the world. Or not.
    It depends on how much above ground silver China actually hedged and/or delivers.
    If they hedged anything over 100% of actual above ground supply, both govts.'s are in trouble.
    If they hedged "only" 100%, it could go either way.
    If they hedged less than 100% then it would seem that they would prefer to cash settle and keep their silver
    for industrial production use.
    We are witnessing world history here, can you feel the earth moving under foot?


    Any thoughts by people on this blog??

  20. Cris, lots of conjecture in what you've quoted, starting with "Ted Butler's recent (re)allegation that perhaps the Chinese are the big "silver short"". Do you have any source for Ted Butler's (re)allegation?

  21. Very,very,interesting.Certainly appears the tropos affair refuses to die.Enter the mix with Copper and JPM,s serious short on Copper and China,s huge Copper reserves that could crash the price of Copper and therefore take JPM down and we see a series of Checkmates occurring.Whatever anyone thinks,look under the surface and we are watching economic warfare being waged,inflation exports and currency wars not to mention China,s huge devaluing $ hoard.The chess game is heading towards a climax.Maybe the ultimate threat to China is to crash the $.

  22. Sorry meant to say JPM,s serious short on Silver.

  23. My only thought is that China is on a hard asset buying spree and if they hate the dollar and love gold they must be loving silver too.
    Especially if they suspect its a bargain.
    Dear AGoldHumster..silver 35..crude 100 1500 by end february 2011.

  24. Silver appears to be the Great White Underbelly of the economic system,crash it and the whole lot enters the abyss.Any threat of immediate serious $ devaluation or import controls and China could well press the right buttons.

  25. GG - I bet we will se 73.93 for USDX/@DX - or we will see 1.213 for EURUSD.
    Personally I favor 73.93 - but with Europe you never know. And I expect the big guys to pull the trigger in the weaker one

  26. @GG, that RE-allegation is from Butler's latest article to subscribers. I only quote that as someone else already did. Although in fact, Butler FIRST made that charge back in 2003, in a free article:

  27. Doesn't really matter WHO the short is in silver...breaking the manipulation is key.

    This is still God's country. All I can say is Church was packed today like I've never seen it. He's still on our (America's) side. We will prevail, have no doubt about that.

  28. AHam, lay perspective here, but I'm guessing the BoS's are fully in control of this thing and will continue the pattern they began in October.

    Early January: Run-up to $32.50, fall back to $30.00, solid support at $29.50, two weeks sideways.

    Early February: Run-up to $34.00, fall back to $31.50, solid support at $31.00, two week sideways.

    Like Roman Centurions on the march against Blythe's guerillas.

  29. any thoughts or theories on what it looks like when the bottom finally falls out, anyone.

  30. Hey, love the commentary on the PMs. Please don't ruin this blog with political shit. It ain't as simple as it is made out to be.



  31. Speaking of Connally, here's a quote from “Ray Wax, stockbroker” in Studs Terkel’s book, Working (ca. 1972)...

    "Look, we’ve got eighty billions of dollars worth of money floating around in Europe. It’s nonconvertible. We’ve fucked every country in the world. We’ve got every central bank in the world with dollars up to their ass. They can’t do anything with it. We said to ‘em, 'We’re the Texans.' The world belongs to Connally. He told ‘em in effect, 'Live with that money. We’ve bought your companies, we’ve taken over your economies, we’ve given you dollars that are spurious. Don’t blow the whistle on us, because the whole fuckin’ sky is gonna come down, Chicken Little. Maybe two, three years from now, if the spirit moves us, we may talk about the convertibility of dollars into gold. In the meantime, Fuck ya. Put those dollars in our treasury notes, buy our stocks, do somethin’ with ‘em. But don’t come back to me to redeem ‘em, because they’re worthless.' We fucked the world. . . . I’ve seen ‘em do this. I buy gold, I buy silver. It’s the only thing that’s real. You can’t buy gold in this country. We don’t dare. If we let Americans buy gold, everybody’d be diggin’ up his fuckin’ back yard and buryin’ gold bullion in it. ‘Cause he knows the fuckin’ thing’s real."

  32. The Hunt Brothers felt the same way...paper money was going to be useless and they wanted to protect their wealth. What's interesting is they felt they were the last free enterprise capitalists in the world. They hated government interference.

    They were ahead of their time in many ways, but greed did them in.

  33. Korean stuff is getting real.

  34. Let's leave religious nonsense out of these discussions please.

  35. "...Please don't ruin this blog with political shit..."

    Talking about gold and silver and not mentioning politics is like talking about sex and not mentioning fucking.

  36. Religious nonsense? Oh please, you stop posting ok?

  37. Religion has nothing to do with the price of gold and silver. That is what this blog is about. Post your "God only loves America" nonsense on your church website instead.

  38. HA! The Bible is filled with versus on Gold and Silver.

    Shows how little you know. I'll post as I please.

  39. "Religion has nothing to do with the price of gold and silver."

    You proved my point. I rest my case.

  40. You are here to argue. Go right ahead. I won't respond to you again.

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  42. Yes, there is a political side to the PMs, however, it does not lie in the partisan bullshit that any/all threads descend into.

    Its like a wrestling a pig, only the pig enjoys it and you get dirty