My firm belief is that a fair equitable gold price will come only after the price goes dark in the normal traditional paper dominated channels. For over a month, the gold market has been operating like within the eye of a hurricane. At work is a new promising dynamic that most in the gold community seem totally unaware of, without solid sourced information. Repeatedly, my gold trader source, who has numerous billionaire clients on three continents, informs that truly gigantic buy orders are sitting between 1600 and 1680, spaced by 10 dollars apart, having greater volume with each lower notched price in an inverted pyramid. The Eastern Coalition is angry and motivated, fitted with well over $50 billion in a war chest, determined to wreck the New York and London bankers and remove them from their corrupt perch. Gigantic buy orders are being filled, the victims being gold cartel member banks themselves. They are highly vulnerable. They are strapped for cash, confirmed by a separate source. They face margin calls on sovereign bonds of Europe, compounded by some bad FOREX positions. To extract themselves from the pinch of the margin calls, the cartel banks are being forced to sell out their precious metals bullion held in reserve, in order to obtain desperately needed cash. This is a new phenomenon, not seen a year ago, in a total reversal used against them, since in the past, the cartel used the same methods against client hedge funds.
THE GOLD PRICE WILL RISE ONLY WHEN THE EASTERN DEEP POCKETS DECIDE THEY ARE CONTENT WITH THE MASSIVE GOLD RAIDS ON CARTEL GOLD RESERVES, ONLY WHEN ENORMOUS VOLUMES OF ORDERS ARE FILLED AT LOW PRICES, THUS DRAINING CARTEL MEMBER BANKS.
It is illegal to feed dolphins in the United States. Federal law prohibits this. I do not recall anything in the Constitution authorizing federal laws against feeding dolphins, but I’ll let that pass. The fact is, people ignore the law. They love to feed dolphins. In Tampa Bay, tourists are big law-breakers in this regard.
Why shouldn’t people be allowed to feed dolphins? Because, marine biologists say, giving dolphins free food addicts them to handouts. People are turning dolphins into welfare bums.
The federal government’s fish police see the threat. Handouts destroy the ability of dolphins, who are very smart fish (mammals), to survive on their own. Mothers do not teach survival skills to their offspring. They teach them to live off welfare.
Tourists are creating inter-generational welfare dependence. In a 2009 article in the “Tampa Bay Times,” we read this from a biologist employed by the National Marine Fisheries Service. “We are able to document lineage, from grandmother to mother to calf, all following fishing boats and taking thrown-back fish.”
Marine biologists, who themselves are being fed by the federal government, understand the threat to ecology posed by welfare economics. It is a bad idea, they say, to addict smart fish to handouts. But the logic of this position is not applied to human beings, who are far more clever than dolphins. What is gospel at the National Marine Fishing Service is anathema at the Department of Health and Human Services. What the government’s experts on fish see as a threat to the fish, the government’s experts on human beings do not see as a threat to people.
What is the threat? Creating permanent dependence.
…About half of Americans receive money from the U.S. government. Then there are the tens of millions who receive money from state and local governments. When we count the tax-supported schools as welfare agencies, we see that welfare handouts are the very foundation of modern politics.
…Tax-funded safety nets are in fact political snares. These safety nets are not deliberately designed to create dependence, any more than Florida tourists deliberately plan to addict dolphins to handouts, but in both cases, this is the effect. The welfare establishments are like zoos. The animals are well cared for. They are well fed. They are given medical care. What they are not given is liberty.
This is an article about Warren Buffett’s persistently dismissive take on gold. Buffett says buy stocks. And that is because he knows that the plan is for Central Banks to inflate and inflate. But he also says stocks are better than gold. That hasn’t been the case for the last decade, except for a few stocks like Apple. There is a time for stocks and a time for gold. The only problem is that Buffett is stuck in the stock business regardless of whether it is the time for stocks or gold. So, it’s hard to trust his take when the fact is he’s tied to one position: stocks.
WTF, Warren Buffett?
by Simon Black
For value investors of a certain age (e.g. mine), discovering that Warren Buffett could be wrong is like suddenly not believing in Father Christmas. This twinkly-eyed, raspy-voiced, avuncular old gentleman almost embodies Clint Eastwood crossed with a Care Bear. And nobody can hold a candle to his long-term investment record.
And yet, the rot set in (at least as far as this writer is concerned) when Buffett went from investing in private non-financial businesses to siding with the establishment, using his institutional heft to win sweetheart deals in dubious banking institutions way beyond the reach of regular Joes.
In other words, somewhere along the line he went from representing the 99% to representing the 1%. And at the first sign of trouble, he simply wraps himself up in the American flag.
Buffett’s latest advertorial (for himself and for Wall Street), “Why stocks beat gold and bonds,” adapted from an upcoming version of one of his legendary shareholder letters and published in Fortune, may be the most irritating thing he’s ever written.
The Great Depression lasted over a decade. And yet it is hailed as a shining model for the wonders of government intervention. If that is a model of government success, then I’d hate to see what a failure looks like. The fact is that The Great Depression was so great precisely because the government manipulation of the economy was so great.
