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I find the lack of leadership at the top is troubling. Forget about what the Presidents financial or economic skills are. He has systematically divided this country pitting just about every group against another group. men/women. Recent immigrants vs established citizens, Gay issue, low wage earners vs those sob right people who won’t share and play “fair”.
The entire way this campaign is being run–Chicago Style-not just hard ball-dirty politics.
That ain’t leadership.
I cannot disagree with anything that you said.
Hal….well said….I agree with your statement…
Right on! Well put!
Big Al, great show and enjoy your daily commentary. They are very enlightening. I read today an article in GOLDSEEK today from TED BUTLER. He was commenting on the recent FT article on the CFTC’s investigation into it’s four year Silver manipulation investigation. It’s worth reading and I would like your comments. Thanks and keep up the great work!
Thank you Paul.
I will read and comment.
Further to the comments of yesterday, it is possible that many really have no idea how gov’t budgetting really works.
While most believe the xxxxxx that the current US fiscal deficit is somewhere in the range of 1.6 or 1.7 trillion……the real number was more like 11 trillion last year. Deficiencies in such unmentioned sectors such as Medicare, public pension liabilities, etc, often go unaccounted for when presenting this information to the sheeple.
This from yesterday:
The general jist is that for those who feel that they “pay their fair share” into whatever system they are referring to, may be missing the massive unspoken hidden inadequacies.
With all due respect Shoobedowa,
I had to edit out another word.
I don’t have time to keep doing this. I would ask you to please clean up your language.
If you cannot do that we will have to eliminate you from this site and I do not want to do that.
With respects, I think you’re preaching to the choir, and have allowed your anger at a valid issue to consume you. Al has run a bank, invested for decades, and has met a lot of interesting people…I know…I got to meet a few when hanging-out with Al. I think he know’s the score.
To me, it’s quite clear that Al was simply pointing out that he had to pay a mandatory tax, the chartered purpose of which was to fund benefits after a certain age. He also is implicitly pointing out what many of millions of people think, as a point of discussion mid-way through an interview (that’s call prompting a conversation).
On this site, I think most already know SSI isn’t a trust fund, that taxes have increased from 2% to 15.3% in 60 years, and that the system is hopelessly out of money. Geez Louise, man, that’s what we’re buyin’ gold!
I’m a ways off from retirement, as I’m guessing you are. But I can totally understand why someone around retirement years would like to know that status of their accrued contributions. Remember, when retirees today starting contributing to SSI, commercials were still running on TV telling you Philip Morris cigarettes were healthy because they cleared your lungs of the foul left by “inferior brands”. A lot of time has passed, and the world has changed. We all know some kind of reconcilation is needed for SSI and Medicare, but telling someone they are acting ‘entitled’ because they’d like to see something from decades of contributions isn’t my idea of greedy. More like sensible. I think you’ll understand when you hit retirement….probably age 80 for both of us.
Now when someone wants to sit at home and not work, even though they have two arms, two legs, two eyes, etc. etc. and would rather collect government handouts for 5 years….that’s acting entitled.
Thank you for your input Mr. Robertson. ‚ÄúAt age 80 for both of us‚ÄĚ‚Ä¶..I like it.
Actually, I believe that I understand Mr. Korelin‚Äôs position fully well, as I hear it repeatedly from most seniors I know, when the subject comes up (and many I know are always itching to bring up that subject). Mr. Korelin did not say that he would ‚Äúlike‚ÄĚ to receive Social Security payments, but rather that he felt that he ‚Äúdeserved‚ÄĚ Social Security payments. This is not ‚Äúsensible‚ÄĚ, but rather known as a feeling of ‚Äúentitlement‚ÄĚ.
You seem well aware of the fact that Social Security no longer has a trust fund, other than an empty box filled with UNMARKETABLE securities. You are correct that the Social Security system was created with that specific ‚Äúchartered purpose‚ÄĚ, however you would be incorrect if you were to suggest that such a chartered purpose is still valid. With his trusty pen, Bill Clinton revoked that ‚Äúcharter‚ÄĚ and converted the Social Security payments from contributions‚Ä¶‚Ä¶into a tax. In other words, it converted what was originally structured as a ponzi scheme designed to eventually fail‚Ä¶‚Ä¶..into a simple, yet massive fraud. Therefore, it logically follows that there is nothing more than a political promise (which as we know, in eventuality, will not be kept). Along with this conversion from a contribution to a tax, combined with the fact that the (now theoretical) ‚Äútrust fund‚ÄĚ was plundered leaving a concrete balance pinned at $0.00 ever since, it follows that any money paid to anyone for the purpose of ‚Äúsocial security‚ÄĚ, must be paid from the earnings and savings of others, as there is no longer any such thing as ‚Äúpast contributions‚ÄĚ or any type of communal investment. This is no different that food stamps, welfare, etc, paid from money which must be taken from others.
It is human nature for someone like Mr. Korelin to ‚Äúcreate‚ÄĚ arguments as to why he thinks that himself and certain others should be entitled to whatever their own imaginary pet program might be. I am sure that the single mother welfare queen living off of San Mateo Blvd in Oakland, with six screaming kids who has never worked a day of her life can talk your ears off for hours about all of the reasons that she is ‚Äúentitled‚ÄĚ to receive her bounty through the magic of big government‚Ä¶‚Ä¶.but her views in and of themselves do not validate her claim, or make it right. For every entitlement, there is always ample reason, whether valid or not‚Ä¶..as I‚Äôm sure you are aware.
Again, thank you for your response in this matter, but I am starting to suspect that I am not as young as you and Mr. Korelin assume. I think you might be mistaken in assuming that I am ‚Äúangry about it‚ÄĚ (although to some degree I am), given that I no longer have a dog in this fight, other than voicing a defense for the real victims. I decided to go Galt a few years ago, and now reside overseas, so I have very much disconnected myself from this (to be) escalating catfight between various regiments of the free shit army, of which almost everyone seems to be a foot soldier of by way of whatever entitlement group they belong to‚Ä¶..and Mr. Korelin is certainly no exception, whether he chooses to admit or realize it or not.
Those of us who were personally responsible all had to pay mandatory taxes. I have never expected to get any of my income taxes paid back when I turn some mystical age‚Ä¶‚Ä¶or any other taxes for that matter, whether I want to pretend that it should be so when I reach some arbitrary birthday. Again, keeping in mind that the falsely believed charter of social security has been effectively revoked under the Clinton Administration, and has remained that way since.
If you or Mr. Korelin‚Äôs argument is that you had the rug pulled out from under you when this charter was revoked‚Ä¶‚Ä¶then you fall‚Ä¶..boohoo‚Ä¶‚Ä¶take it like a man‚Ä¶.you all had the duty fight it, but most chose ignorance. The Mr. Korelin‚Äôs of this world should not promote reaping the fictitious benefits, while passing the offsetting payments of such expenses off to the future where they themselves believe that don‚Äôt have to look at it anymore.
Given the removal of contractual obligations to retain funds in the Social Security trust, any further draws via Social Security payments are simply theft (As I have never personally accepted gov‚Äôt subsidies or assistance, I feel comfortable calling it what it really is). Given the indebtedness of the Western World, most feel comfortable shifting this burden to future generations, most of which do not even exist yet, and somehow allow themselves to remain feeling righteous about it all. I find this form of hypocrisy particularly disgusting. While I have removed myself from the situation, I feel an obligation to stand up for those unborn, even though the vast majority of today‚Äôs society are ‚Äútakers‚ÄĚ (whether straight up, or while preaching hypocrisy), and I fear that my logic does little to convince the massive crowds of their misguidance.
I thank you for your time, and for trying to clarify Mr. Korelin‚Äôs position.
And one last thought for those citing such things as government obligations, government charters, government employee pension contracts, etc‚Ä¶‚Ä¶‚Ä¶‚Ä¶there‚Äôs no more money honey. These laws are indeed laws, but they will be broken‚Ä¶.it cannot be otherwise. Those who rail with the battle cry ‚Äúas long as I gets me mine‚ÄĚ‚Ä¶..are the problem. All of them.
” I decided to go Galt a few years ago”
Well if you’ve gone Galt, you can’t be all that bad! I can’t be hard on Al…I’ve seen the generosity of the man — not just my opinion. In truth, I don’t think you’re as far apart from Al as you may at first think. Al is pretty much a “Galter” too, and although you might have heard an opinion of his building over time, I still think he (and others) are just reflecting on decades-old promise — however unrealistic — that politicians fostered. Though it’s becoming rarer today, I’m also tired of the few people still crowning Clinton for “balancing” the budget with SSI contributions too (with a Congress form the opposite party, equally to blame for the charade).
BTW, I’m not sure SSI was really a ponzi scheme. At it’s outset in 1935, there were 16 workers for each retiree, and even then, current-year taxes were used to fund current-year liabilities. The system was envisioned to come into balance with an 8:1 worker:retiree ratio, which it did in 1972, one of the reasons ERISA was passed…we were fat, dumb and happy after going off the gold standard with the new ability to create money freely, despite the awareness that baby-boomers were probably going to create a surge that would not be fundable (or fungible) with the next, yet-to-be-named Gen X. Then people like Nancy Pelosi went on a tear and started amping-up pensions in California, thinking the money and worker:retiree ratio would never wear out. That’s about the time it became a ponzi scheme, IMHO.
jOHN….I went Galt, several years ago…but,I did not even know there was a term for my actions…..I was just sick of playing the game….
Thanks for the kind words John W.
Thank you Mr. Robertson.
I think you understand the SSI system perfectly. initially the average age was something like 62, so it was never intended to be for anything other than a minority of “lingerers”, with mostly brief payout periods at that. However, at least 30 years ago, it was likely obvious, given demographic trends, that it would eventually fail.
But then someone just walked in and stole what was there. That is where it all ended, and I frown on any encouragement of others to try to recoup that theft from those of the future, who were entirely innocent, and not around to hold the looters to account, which was the responsibility of the existing voting class at the time.
Thank you for describing the evolution quite succintly.
Thank you Mr. Robertson for describing the evolution of SSI with so much detail.
My understanding is that at the time of it’s inception, the average age was somewhere around 62, so it was intended only for a minority of lingerers, and for relatively brief pay periods at that. However, somewhere along the line, like at least 30 years ago, it should have been realized that due to demographic trends, that it would eventually come of the rails………thus the “evolution” into a ponzi.
However, one day, someone strutted in and stole the funds that were intended to accumulate interest and payout future beneficiaries. This theft occured on the watch of those eligible to vote.
I frown upon encouraging others to steal from the innocent to recoup their losses, rather than take the responsibility to hold the thieves to account. Most of the innocent are not yet present to defend themselves.
Thank you for describing the SSI situation so succintly.
Whoops, I thought the first send didn’t take.
WELL SAID JOHN……..
JUST A NOTE….THERE IS NO” RETIREMENT” MENTIONED IN THE BIBLE….,THE ONLY THING WE ARE PROMISED IS FOOD AND SHELTER…..CHECK IT OUT…..
Thanks John W.
shadow stats-a pretty good resource-says 5 trillion accrual basis deficit.
Al-my point is we cannot stand a chance of extracting ourselves from our problems until real leadership emerges. I did not agree with Clinton on many issues yet he was a leader. Obama during 2008 campaign appeared to be a leader.
This is no different than interviewing people for a mid or top management position–they tell you what you want to hear and its up to the person doing the hiring to peel back the onion to see what you are really getting.
And the leadership problem drops way below Obama in DC–Pelosi and read to name 2. McCain has his good days–and not so good.
Amazing we cannot get people with higher “batting averages” to show leadership in DC.
One of my first bosses was a true leader-a hero in my mind. You would walk out of a meeting asking yourself why you did not think of that (bosses question or perspective) -going forward-you wanted to show you could think and act at his level. Not too many of those heros now.
Of course I agree with you, Hal.
Big Al and all:
Talk about “aggressive social commentary”!
BTW and for clarification:
I don’t condone the approach, but I CERTAINLY SUPPORT the message. Hey, this the reality we find ourselves in today….what a damn shame!
Oh yeah, what a shame!
Unfortunately Marc, I think that it is going to get much worse.
I like the tornado piructe. I don’t see why empty’ is the descriptor/metaphor on which you hang your musings, though. Things can be full and at the same time be bad, no?
Finally! I’ve been hoping something will be done about this immoral Libor scandal!
Hopefully justice will be done.
Good to hear from ya – girl….and remember –
All the best,
Always good to hear from you! I took the day off from work, and just HAD to make my way to the coin man!!!! The stacks are growing!
All the best to you and yours,
Alright…Jody D…ALL RIGHT!
I was just reading Zero Hedge and a blogger stated we should not call it “Libor Scandal”. We need to call it for what it is….Libor Crime. I stand corrected!
Hi Jody D,
from expected returns:
We are living through one of those seminal turning points in history that we all read about in school. As a citizen of the U.S., it saddens me that we’re losing our individual rights and that economically speaking, so many people will be screwed by the debt crisis. It is the Boomers I am most concerned about, because a) they have the least time to recover, and b) they happen to have their money concentrated in the worst possible investment, aka government bonds.
As a country, we keep compounding our mistakes. Wars serve absolutely no purpose from an economic perspective unless there are spoils to speak of. Even Rome saw their coffers deplete when they no longer accumulated assets from war. In our first 200 years as a nation our national debt was about $1 trillion; the wars in Iraq and Afghanistan alone have added more than $1 trillion to our national debt. Is this not the definition of insanity?
I’ve found that the people with the most knowledge happen to be the people most eager to learn. And you can only really learn by reading, thinking, and experiencing new things. The average working American though is so caught up in their 9-5 life that they have no time to think, hence they have no clue what’s happening to our country. What’s a sovereign debt crisis? Is widespread civil unrest possible? What’s a floating exchange rate system? Isn’t gold a “risky” investment?
Our government officials are so foolish it boggles the mind. They think linearly and don’t even understand the simple concept that the cost of government will rise exponentially because every retired worker on a pension will need to be replaced; in other words, the government will essentially pay 2 salaries per worker. So forget about balanced budgets, it’s not happening. The government will react to this “unforeseeable” crisis by raising taxes and going after the rich. Well you could take 100% of the income of the “rich” and it wouldn’t amount to anything. All it would do is create capital flight and an underground economy that hurts tax revenue. So the supposed cure creates more pain.
We will have stubbornly high unemployment for years to come but the government will have no clue why. We are in the middle to latter stages of the internet revolution, and this is creating a wholesale destruction of jobs. But for those with the right skills, this will be a boom for the ages. A stimulus package in the U.S. needs to target the correct industries and provide the right skills to people. In the 1700-1900’s it was OK to teach people how to be farmers, or how to do construction; these skills would actually benefit them in the future. However, building roads/infrastructure now won’t have the same effect dollar for dollar on the economy as it did in the past. Our economy has evolved.
The only way out for us is a complete restructuring of the monetary system. Unfortunately, this is way over the head of the average politician. Instead of stimulating our economy, we are stimulating the economy of China by exporting billions in interest to them every single year. This is unbelievably stupid. Our education system is deteriorating as States’ coffers run dry, and this puts us in a precarious position in the future. This is Asia’s century if we don’t wake up. But sure, let’s go ahead and bomb countries instead of investing in our children.
This debt crisis will arrive suddenly like it always does throughout history because human nature never changes. Leaders always get in the habit of spending without a plan to pay it back, and this is a cycle that occurs over and over again. The people who invest correctly during this crisis are probably the same people who understand how severe our structural problems are, both at a political and economic level. So there is hope that things will change once this crisis runs its course. Technology will eventually save us, and there is a 1950’s-type boom ahead, but only after some pain.
Perhaps all we need do is End the FED, & that clears out our debt problem right away. And if we weren`t so busy selling bonds to finance our budget we wouldn`t need China to help us along would we. Technology vs faith based God centered individuals ? Who will save us, you said technology will, that`s funny that`s what we thought last time, and the last time, and the last time. Is there an echo effect that has affected our thinking process, too much thinking not enough to believe by faith a being who has all the answers.
I am a bit confused. Who said technology will save us?
Hi Al, the guy above Paul L, said in his last paragraph. quote `Technology will, eventually save us,`then in his statement says that all we need is more education which seems to say to me that`s all it takes to be a rich and prosperous again as a nation but without even mentioning God from all blessings flow, that belief in only yourself will do it. There are some really prosperous people out there that are searching for that perfect place or a high that they will have joy unspeakable, yet not find it, because its not a place by a person Christ Jesus that fills that void in your life.
I am in your camp, Dennis B!
Yes we will be sending an email out with a couopn code for 200 points. We will put a post up in the forum announcements and do a shout out in game for everyone to check their email folders and spam folders to get their 200 point couopns.
Once again gold hits $1619.50 just like yesterday and backs off. Gold needs to take out $1620 soundly on a closing basis for two consecutive days to get out of this range.
Al, you probably remember when TR about 3 weeks ago talked about the pennant or flag formation of gold and how when it broke out of the pennant, gold would zoom. Well, Al, it has broken out and has not “zoomed”. I said back then that a pennant formation that small was probably not significant and more important is the one formed by the weekly high in December and a line drawn through the weekly high in March. That’s the pennant formation to watch. If we break that one in the future, we’ll move to challenge $1900.00 again. The Bollinger bands are narrowing and the momentum indicators are moving up for the first time in weeks. We’re moving ever closer to the resistance of the 200 week MA of the Dow/Gold ratio. Many commentators are talking about a move down for gold to shake out the longs. I believe we’ll now see gold move higher for awhile and then back down. The good news is the longer we see this price action the more likely we’ve seen the lows. It’s only a matter of time before we eventually break out of this consolidation to start to move significantly higher over $1900. Of course that could be weeks to months but it will happen.
I follow your stuff..much more than any of these other “technocrats” out there…..thanks for the continued updates! PATIENCE is the biggest commodity out there….BAR NONE!
You’re welcome, Marc. By the way, dittos too. I love reading your stuff along with Mark Alan. Both of you have a lot of common sense which is not so common.
Thanks and all the best!
Ain’t that the truth, Doc!
marc……that is a 24k BAR…..NONE OTHER…
Of course, HA! You dont miss a beat do ya!?
I love it!
marc….I just have selected memory……
I agree with you!
Your continued comments are really appreciated.
You are a great example of why we have to listen to all people.
Richard and TR,
I’m looking at a gap on the daily chart for SLW at $ 28.80. Doesn’t a gap like this on a daily chart eventually get filled before proceeding much higher? I’m thinking I might add to a position if it declines and fills the gap. Thoughts? Opinions? Thanks
Jerry, I would say you’re “right on”. Interesting that you mentioned SLW. For the first time in a long time I started to watch SLW one week ago and unfortunately didn’t “pull the trigger”. There’s a good chance that it will move down again because it’s hitting resistance at it’s 200 day MA and not only because of a gap. One of the momentum indicators is hinting that it will want to correct a little before any resumption higher. Off this topic, I might add that I read today another bearish CNBC gold article and it warms my heart. The more people that get bearish on the PMs, the quieter the market will become. When you see a quiet market like this one and a consolidating market, it’s an excellent situation.
Richard and TR,
Just to be clear!! Not looking for investment advice only thoughts or opinions on the gap closure situation. Thanks.
Most gaps are ultimately filled. The problem is you don’t know when and how long. It can be just days or weeks and months. In this situation, the odds are probably days. However, in the SLW situation, the gap is minimal and probably not significant and I wouldn’t make any decision based on it. I would put more credence in the resistance of the 200 MA. The odds are that the price could pull back from it on the first try to take it out.
I am very interested in buying some more gold bullion but I am also very cautious about when to move. I am hoping gold will visit the $1570 range one more time before I make my move, also influencing this decision is the value of the Canadian dollar which has been moving up as well.
I think Gold and Silver are going to be fine.
However, the American society filled with paranoia and gun wielding individuals may not be fine.
This story out of Canada is laughable, if it were not true. To think this man (off duty Cop apparently!) actually would have drawn his handgun if he’d been allowed to take it into Canada, just scares the heck out of me.
What is this society becoming when everyone wants to own and use guns??? Its nuts.
A lot of aspects of our society are nuts!
We have for too long enjoyed roses without thorns.
We have lived in a world of seedless watermelons.
We will all be just fine but we have some thorns, some seeds and watermelon rinds to deal with first. We can live our life with rose colored glasses….we can look at the ‚ÄėRosie scenarios‚Äô….but at some point we have to deal with the thorns of debt.
Our debt based monetary system was designed to fail. It is not that it has failed. The system is accomplishing exactly the purpose for which it was designed. Will win end with all of us just fine after a long drawn out war which justifies the restructuring of the monetary system. Then after the know-it-alls contrive another monetary mayhem fiasco system it will start all over. Unfortunately, there will be less of us living. But those of us that are still here will be just fine until the next time.
It’s all about the time frame isn’t it Dennis!
This version may make more sense:
We have for too long enjoyed roses without thorns.
We have lived in a world of seedless watermelons.
We will all be just fine but we have some thorns, some seeds and watermelon rinds to deal with first. We can live our life with rose colored glasses‚Ä¶.we can look at the ‚ÄėRosie scenarios‚Äô‚Ä¶.but at some point we have to deal with the thorns of debt.
Our debt based monetary system was designed to fail. It is not that it has failed. The system is accomplishing exactly the purpose for which it was designed. We will all end up just fine. But this tranquil time will not happen until after a long drawn out war which justifies the restructuring of the monetary system. Then after the know-it-alls contrive another monetary mayhem fiasco system it will start all over. Unfortunately, there will be less of us living. But those of us that are still here will be just fine…. until the next time.
Personally I like my seedless watermelons. YES, it is possible to have what you want, but everyone else is either out to take your money or cheat you or both. So to have your cake – you have to bake it!
You can live a “cash on the barrel-head” lifestyle, eschewing any and all debt, but it will take a dedicated commitment to not enter the debt & credit trap. Credit is not pledged future earnings – it is present debt bespeaking future possible earnings.
What we need to do is limit credit to the point it only ruins individuals, not collections, cities, states, and countries.
My criticism is not the use of debt.
My criticism is that the creation of a Federal Reserve Note creates a debt ultimately payable by the taxpayer.
A government can entertain a currency that does not cause interest to the Treasury.
To do so would also constrain spending……A 2 for 1 in my book.
But how to pay all those government pensions?
Your comment about “to have your cake – you have to bake it” is brilliant!
I understand that you are a lawyer of trust`s, as to what to do in breaking these trust babies of the FED, perhaps do away of that corporation that was brought into being to govern who gets the money – that ponzi scheme in the sky a mile and a half high, way far away where sugar plum fairies play with the hearts and minds, hopes and desires of these privileged few that we know as the rulers of the FED…… Perhaps Jerry, IrishTony, Marc, Me too, could take these dudes down a side street and roll these drunks,…..Drunks drunk with the many rapes, and murder, spoilers of old, these swindlers drunk the the greed of the ages upon themselves….just figure out a way to strip mine these trust babies of their ill gotten gain ok. THE END,,,,
regarding crime, I have heard that crime reports have gone up 7 fold in the “reporting” so we all feel like there is more crime than there actually is…because crime generates headlines, and the bigger the more.
On stimulus, I would like to point out that Americans must go through “election fatigue”. Up north and in the UK our elections last 6 weeks (granted these are parliaments and not republics) while the US have elections ever 2 years…and forget about a leader leading the party, there are 1000 people in DC with the ability to mix things up…in the parliaments, maybe 6 key ministers have that power…further, when the president changes, so do the top ? 4 levels of government? So it appears there are few truly senior staff. So until there singular ,comprehensive, coherent actions that full parties can get behind, who knows where any stimulus goes? I think the banks day-trade it and keep it without loaning it out.
Unearned money is a curse not a blessing.
Think of one the storied families of so called “old money’.
Then recall the prolific horror stories of privileged self-inflicted tragedy.
Strip mining them of their ill-gotten resources may be doing them a counter-intuitive favor.
so far for a “community organizer”, vote this looser out and write in Ron Paul please, do the country a favor.
What’s happening is the deliberate destruction of the middle class using the socialist-commie Cloward-Priven strategy. Wreck national economics and force millions onto welfare to crush capitalism and make the masses dependent upon handouts. Its working. One Worlders want one govt. and one currency for TOTAL CONTROL. It won’t work as when the bond markets crash they have no more credit and money for nefarious schemes. Further with millions of guns in the streets guess what happens to the instigators? Read Austrian economics 1918-1921. They simply assasinated all the politicians and many of the bankers. Then of course you get the ultimate jobs program a world war. Not pretty but the commies lose. – Traderrog
Is Pasport Potash still a sponsor on your website…Im having a hard time finding their link.
Yes it is, Tom.
I will look into the link issue.