Saturday, August 10, 2013

A Most Unhappy Man

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit.We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men." -- Woodrow Wilson 1919

Germany, when freeing itself from the private central bank imposed by the Treaty of Versailles, redeemed their value-based currency in units of labor. The result was the German Miracle that so terrified the private bankers they organized a boycott to destroy the new German economy before other nations decided to copy it. World War 2 was the result.

More recently, Libya established a state-controlled bank issuing a value-based currency, the Gold Dinar, which was gaining in popularity across Africa. Invasion followed. Even in the United States, we have had three Presidents try to pry the nation's finances back from the grip of the private bankers, Andrew Jackson, Abraham Lincoln, and John F. Kennedy.

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out." -- Andrew Jackson

Of the three, only Andrew Jackson succeeded in shutting down the bank. He is also the only US President to pay off the National Debt completely. There was an attempted assassination shortly afterwards, with a confession that clearly indicated a financial motive for the attempt. Both Abraham Lincoln and John F. Kennedy used Article 1 Section 8 of the Constitution to issue government money free of interest to the private banks. Both men were assassinated and their interest-free money destroyed. In Kennedy's case, a banker, John J. McCloy, President of the Chase Manhattan Bank and President of the World Bank, was appointed to the Warren Commission that whitewashed the circumstances of the assassination.

Sunday, December 19, 2010

Excerpt from FOFOA

In fact, the current system is not fair to the savers of the world. It punishes responsibility and rewards reckless behavior.

This is all tied to interest rates. Before we went off the gold standard, there was no market for speculators to speculate on interest rate changes. That market has grown into a huge beast since 1971. And this is one of the main problems with the current system.

In a pure gold money system (and I'm just speaking hypothetically here, I'm not proposing this system) no interest need be charged for lending, nor earned by saving. In a pure gold money system, deflation of prices is the normal state of things as the economy grows. So if I loan you an ounce of gold for one year, when you return it to me a year later it will be worth more in terms of real goods because the economy has grown while the money supply has remained relatively stable.

On the other hand, if you save an ounce of gold for 5 years, then when you go to spend it, it will buy you more than when you started saving. So saving is rewarded. No interest is needed.

In the fiat system interest is a must, because the dollar is constantly losing value. But part of the problem is that interest does not keep up with inflation. And in order find a way to make interest keep up with inflation, you must put the principle of your savings at risk of loss. This is happening right now. Many savers are not only failing to keep up with inflation, but they are actually losing their principle. This is a major flaw in this system.

On top of that, governments actually MANIPULATES the rate of interest lower than the market wants it. This punishes savers even more.

So with Freegold, we don't have to get rid of fiat currencies for use in trade. But we the people will do our saving in gold. And since the world's economy will still be run on fiat, inflation will still rule the day, not deflation like in a pure gold money system. So the price of gold will float freely against all currencies and provide the stability of savings without the counterparty risk of stocks or bonds. And it will also act as a barometer against governments that print in order to fund their activities. It will expose the credibility of each currency in the world.

So as a borrower, you will still borrow fiat at a rate of interest. And the banks will still print through fractional reserve lending. But as a saver, I will have the choice to save in either Freegold or in the system that pays me some interest, but at a risk. I will have to judge the two options and decide which benefits me the most.

So no, the gold supply does not need to increase. It can, it may, or it may not. Doesn't matter. The free market will set the price of gold relative to the paper currencies in the world. And the key word is Free. With the US dollar gone as the world reserve, replaced by either regional currencies, or by a currency which benefits from a high price of gold, the price of gold will no longer need to be controlled. In fact, it can't be controlled once the dollar reserve system is gone. And that system is crumbling today as I type.

Tuesday, December 07, 2010

Silver breaks $30, first time in 30 years. Sometimes the hype is right.

Dear Reader.

I've got a couple of things to say today. The first are a couple of quotes excerpted from today's 'Gold and Silver Daily',  Ed Steer's newsletter. The whole of which can be found here

1. Here's a GATA release from yesterday afternoon that bears the headline "New law lets Treasury diminish gold, silver coin production". The story says that the "current law requires the Treasury department to mint gold and silver coins "in quantities sufficient to meet public demand."... but the new law would require the department to mint gold and silver coins "in quantities and qualities that the secretary determines are sufficient to meet public demand." It's soon to be a whole new ball game out there, dear reader... so buy as many gold and silver eagles as you can, because you can bet your last nickel that the day will come [soon] when they just won't be available in "quantities sufficient to meet demand". The link to the story is here.

2. As I've been mentioning lately, the silver price [and especially the silver equities] are starting to leave their golden brethren far behind. At $60 silver, one can only imagine what some of these silver stocks are going to be bid up to. As our grand poobah [Doug Casey] is wont to say from time to time... when this bull market really takes the bit between its teeth, it will be like trying to get the entire contents of Hoover Dam through a garden hose. We're starting to get a sniff of that now. But, we ain't seen nothin' yet... so hang on tight. It will be the ride of your life before this is all over... and one for the history books.

And the second is to let you know how I calculate what I call the 'Single Coin Street Price' for Silver Eagles - just so you'll understand the difference between spot price and purchase price.

Just know that even with the best dealer at the lowest premium it is still going to cost you (at the very least) 15% over spot and likely more, depending on your dealer. This additional cost covers three factors often overlooked when using spot price to gauge a good deal or not. These three factors are:

1. Since you always have to use a credit card to purchase small amounts, there's a credit card percentage of at least 2.75 percent, often more like 3%. I use 2.75 for my calculations.

2. There will always be shipping charges, often a minimum of $12.95, so it matters how much you buy. I add a per coin shipping charge of 65 cents - 1/20th of 12.95 (which is the charge for a tube weight).

3. And then there's the premium, which is the dealer's markup or profit margin, which is rarely less than $3/coin. So that's what I use.

So my calculation of 15% is the best possible scenario, a combination of the best possible circumstances. And it's what I or you MUST pay in order to obtain 1-50 coins. It's the basic cost of a coin.

Now add five percent to this 'basic cost' for my service of having done all the work and having the coin available for immediate purchase and sealed in an airtite plastic container, and the total 'over spot' percentage is very close to 20.

Soooo... I set my basic selling price for Bullion Silver Eagles at 20% over spot - with slightly lower rates according to increased quantity. It's not exact. I round up the spot price based on trend and expectation and knock down the overall total to the nearest buck or so for friendship sake.

So this is how I determine my 'single coin street price' and for small quantities (a few tubes or less) it is quite fair and saves you, the purchaser, the trouble of shopping around and waiting for delivery.  A coin in the hand is worth two in cyberspace. The whole point is to make you a convenient deal for a one-stop, no hassle purchase of a coin or two for your spare change. Kids are especially welcome. Larger quantities get better deals of course. Ask about co-op purchases for the absolute best wholesale prices.

At the moment I have 5 coins for sale at $35 each. (Spot 30 plus 20% or $6 = $36).

Also, I have a sophisticated spreadsheet for tracking profit margins daily, weekly and monthly. Just call me with your quantity, cost and purchase date, and I'll send you a weekly or monthly report on the rise in value of your holding.

For example: When we first started doing this in July 2010, our purchase of a box (500) of eagles was $9,840 at spot 17.92. (Don't you wish you'd been there then? :) That investment today is conservatively worth $15,000 - a profit of $5,160. That is 53% increase in 152 days, or 21.75 weeks, or 5.1 months. 50% in 5 months? Isn't that close to 10% a month? For all the accounts I'm tracking, that average holds constant.

Now in all honesty, there are potentially more lucrative investments, Junior Miners for example. And for large money, after having bought a sufficiently substantial quantity of physical, this is the way to go. There are some very good advisors available to help you with that and I'm happy to steer you towards them. But for the moment, and in the beginning, we should focus on physical, because, as mentioned above, there will be a shortage sometime soon, and the prices are skyrocketing as we speak, and there's literally no end in sight.

So now, my friends. Now is the time, at any quantity, large or small, to get started or increase your holdings to your capacity.  Sometimes the hype is right.


Monday, November 29, 2010

What's it all about?

Thus, the fight over gold and silver as media of exchange is about more than mere money, let alone making money. For it is a fight with only two possible outcomes: either control of their own lives by the people themselves, or control of the people and their lives by political and economic elitists. - Dr. Edwin Vieira

The U.S. Economy: Stand by for more worse news ~ Wayne Madsen

A top economic adviser to the Democratic Party, speaking on deep background, told WMR that the domino-like collapse of the economies of Iceland, Greece, Ireland, and, now, possibly Spain, is coming also to the United States.

One of the triggering mechanisms will be at the end of this month when two million idled workers, now collecting unemployment, will be dropped from the rolls. At the end of December, another two million workers will join the ranks of those who have exhausted their unemployment benefits and a total of 4 million Americans will be without unemployment checks and face destitution.

Four million Americans will put financial pressure on municipalities and state governments already facing bankruptcy. Unlike Iceland, Ireland, Greece, Portugal, and, to some extent, Spain, which have strong central government control, the United States is a federal republic and, as such, the collapse of the economy will be state-by-state and begin at the municipality level, according to our source who has contacts within the Obama White House and the Democratic leadership of the Congress.

Municipalities, which guarantee the pensions of their retired employees through the issuance of municipal bonds, will find themselves faced with bankruptcy and the "Muni" bonds will be rated at junk status. Municipalities unable to pay out pensions will discover their pension funds can be bailed out by the Pension Benefit Guaranty Corporation (PBGC) in Washington, a federal corporation set up by the Employee Retirement Income Security Act of 1974.When the first municipality declares bankruptcy and seeks a bailout from the PBGC, there will be a domino effect, with others seeing it as a quick way out. Soon, the PBGC will, itself, be forced into bankruptcy. WMR has been told by our source it is doubtful that a Republican Congress will be interested in bailing out the PBGC.

The wildfire of municipality bankruptcies will then spread to the states, with California and Illinois likely to be the first two states to default on their debts and declare bankruptcy.

In order to raise quick cash for a financially-desperate state government, California Governor Arnold Schwarzenegger plans to sell 24 state buildings, including the Earl Warren Building in San Francisco, headquarters for the California Supreme Court, and then rent them back from the new owners. However, such desperate moves by states, including the selling off of their turnpike systems and state buildings — with parks maybe next on the auction block — is not enough to forestall bankruptcy. Unlike the federal government, which can print as much cash as it likes and needs, states do not have that luxury. However, given the imminent collapse of the national economy, some states may decide to print their own currency, an act that would lead to the dissolution of the present 50-state union.

As far as bank accounts are concerned, our source recommended avoiding large national and regional banks that have a high percentage of toxic assets, especially in the commercial real estate area. The next major bust, after the residential real estate plunge, will be commercial real estate, where values of buildings and shopping centers have been halved. Our source sees smaller, state-based banks, as safer for account holders. Also, as more and more large shopping malls begin to close across the country, the unemployment numbers will also skyrocket.

Another post:
Hungary is giving its citizens an ultimatum: move your private-pension fund assets to the state or lose your state pension. They want to use the money to reduce the budget deficit and public debt. Workers who opt against returning to the state system stand to lose 70 percent of their pension claim. This is effectively a nationalization of private pension funds. I've heard rumours on the Net to the effect that Obama was thinking out loud about the same thing some time back.

Monday, November 01, 2010

Silver to $30 in Weeks?!!

Want the whole story?

For an extensive and interestingly written history of Gold, money and Oil, please go to
Knowledge is power, and with it your destiny shall be yours to decide.

"...It should be obvious by the nature of our topic (money) that our conversation is focused on tomorrow, in addition to today. Were we to be truly concerned about today only, we would instead discuss whether our needs of food, clothing, and shelter had been adequately met, we would not speak of money. To speak of money is to speak of today's confidence in our ability of meeting tomorrow's needs." - Aragon III

Buy physical gold to hold. In the time to come, this money in the hand will outperform any investment you have ever known. Few today accept just how high physical gold will rise. Be a part of the "physical gold advocates" and tell a story your grandchildren will grow tired from hearing! (large smile)

Thank You for reading.

Friday, October 01, 2010

Silver at $23 within hours!?

Dear reader, Silver at $23 within hours!? Let’s wait and see. But…

Checking the charts I noticed that on Aug 24, my birthday, silver broke loose from its $18/oz. restraint and shot straight up from 17.80 to 19.10 in two days. From that point it rarely dropped but steadily increased in value (vis-à-vis the dollar) to its present point at 22, from which it is destined to rise even further with no end in sight. This move, besides being of historical significance, represents a gain of four dollars in five weeks. $18 spot to $22 spot from 8/24 to 9/30. That is nearly a dollar a week. And the more recent climb suggests the possibility of an increase in the rate of rise, so a dollar a week is far from impossible, especially if it jumps to $23 within hours as James Turk is predicting. A dollar a week! Anybody got a grand to loan me?

Also, APMEX sent me this bulletin:
"The U.S. Mint announced today that it is significantly raising the premium on all Silver American Eagle coins. Obviously, every dealer will have to increase their premiums on Silver American Eagle coins. This breaking news comes on the heels of silver reaching a new 30-year record high over the past week. If you already own Silver American Eagles, the value of your coins has steadily increased. The chart on the right displays the correlation between the Spot Price of Silver and the S&P Index, from January 2000 to the present. This chart clearly shows that over the last 10 years your money was better invested in Silver by a better than a 4:1 ratio."

The full story is here: US Mint Announces 33% Price Increase on Silver American Eagle Premiums! 
“The United States Mint has officially raised their wholesale pricing above spot on American Silver Ea-gles to all authorized dealers from $1.50 to $2.00, an increase of a whopping 33%. This news comes on the heels of a significant silver spot price rally over the last month to a new thirty year record over $22 per ounce. The impact of this news is significant and has already affected dealer pricing across the country within hours, as prices on Silver American Eagles have jumped over $0.50/oz industry wide.”

Headlines from Ed Steer’s Gold and Silver Daily: Welcome to the Mania - "James Turk sees silver at $23 and gold at $1,335 within hours! U.S. Mint increases premiums on silver eagles by 33%. Ireland nationalizes its second largest bank. Iran's gold traders go on strike... and much more.” This one is a blockbuster! Every article jam packed Read it here:

The title “Welcome to the Mania” refers to the third stage of a bull market: the first being suspicion and prediction, the second being special attention, the third being general mania (the cat’s out of the bag), and the fourth is a leveling at a new plateau. So the rush is on. A GREAT article. Read it here.

It doesn’t mean it’s too late to buy, just that you’ll be getting increasingly less for your money the longer you wait. Do NOT expect or wait for dips. That strategy is for players who are gambling with their money. The strategy for Savers is to buy whatever you can as soon as you can and KEEP it. The sooner you sink your greenbacks into the physical possession of silver the safer they will be.

And now on with the news.

Monday, September 27, 2010

Monday late night - what a ride!

Monday late night - what a ride!

Two things of interest today...

Casey's Daily dispatch - Welcome to the Mania

And a new discovery that I'm calling the "Committed Argument". Expected Returns -Now this one is really worth reading from top to bottom because it explains in layman's terms exactly what's happening and exactly what you should be doing. It starts with his latest article called "Smart Money "and moves into "Riding Bull Markets: The Difference Between Pros and Speculators", and goes on from there. Very easy reading and informative in the extreme.

Be sure to review the Top Five daily. These are: GATA, FOFOA, The Golden Truth, King World News and Ed Steer's G&S Daily.
All linked on the left at Silvernews. There is a wealth of current information to be had from these sources.

love you all.

Please buy silver regularly in any small amounts at Gainesville Coins,
Hold on and don't let go. Large amounts call me. Call me if you need to talk about it. 618-698-8001