An economy that in the short term cannot handle an increase in interest rates in the long term needs an increase in interest rates. What is the value of a debt based currency which provides a negative return as a reward for holding it?

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/13_Historic_JP_Morgan_Whistleblower_Interview_Moves_Markets.html

Forget about talking to these 5 so-called geniuses – this is all you geniuses need to know.
John Embry just reiterated what I posted yesterday – I must a be a genius or maybe just someone who speaks the truth. How novel !!!!!!!!!!!!!!!!!!!!!!!!!!

POINT OF NO RETURN
Al’s comment at toward the end of segment #2 had multiple meanings.
John Embry comments on the European austerity movement being unable to weather the pain the medicine of austerity requires. Instead they have all retreated to the track of the printing press.
Al then commented:
“Boy isn’t everybody on the same track…… you know that’s what happens when you get into a situation when there really is no return.”
The phrase “WHEN YOU GET INTO A SITUATION WHEN THERE REALLY IS NO RETURN” hits a multiple bases.
It is more than a description of an airplane flying beyond a point where it no longer has enough fuel to return to the departing airport.
It describes exactly The Federal Reserve policy that has brought us to such a predicament.
The fact that holding an irredeemable debt based fiat currency has “no return” undermines the measure of all the derivatives of it.
When a currency does not reward the holder of it then at some point of no return people will not hold it. Habits are hard to break and nominally the illusion of a return may return. However, when the economic plane arrives on a flight path in which it cannot tolerate real positive interest rates then that is when the economy has reached a “point of no return”.

THE SHINING BLUE TWINS

I looked at the WSJ cover on Sept 11 and saw the shining beams of light piercing the sky. I then more recently watched a video of the World Trade Center Illuminating tribute:
http://www.youtube.com/watch?v=QFeCuhcBo24
It is also hard to avoid noticing the tragedy of the flooding in Boulder, Colorado.
The images combined made me think of the terrifying twins of the movie “The Shining”. The two side by side blue beams caused me to recall the two twin girls side by side in blue dresses. From the movie I remembered these twins first standing side by side stoically and still then laying side by side destroyed, dead, bloodied. Then I remembered the flow of blood Kubrick made flood from the twin red door elevators. It was the blood of an obviously massive massacre. One can delve on such a tragedy and assign things to the master works of a deep thinking artist. Many have assigned things of the past to Kubrick’s mastery with less connection than this imagery has to what was then the movie’s future. And if you think…. the title of the film refers to a gift “shining”…..which was in large part the ability to see things in the future. Maybe I am see things again? That said…… I will never look upon “The Shining” again without remembering the horrors of 9/11.
It is as if Stephen King was writing about a death blow to America and now he has written his “The Shining’s” sequel. Scheduled to be released next week in Boulder, Colorado where he lived as a then modest author and where the Torrance family’s misadventure began. If the flooding ever stops from there we will learn of Danny Torrance working as a hospice counselor. Danny is using his ‘shining’ intuition to assist the dying die well. There, on the pages of Stephen King’s “Doctor Sleep”, it will be revealed for certain another pitch battle between good and evil.
And do not miss…..
Now appearing in The Gold Room of The Overlook Hotel tarot cards and palm reading!
Also do not forget to be amused by our maze.

I don’t see how $1000 gold could be the beginning of a bubble phase. It would look more like the end of the bull market to me but I am no expert.

Thanks Al and team.

Two points re Segs 1 and 2:

(1) Don’t forget us here in the UK. Our private debt stands at a whopping £7 trillion making us the most heavily indebted nation in the world, and where we have £3 trillion of debt in the banking system.

(2) Adam Hamilton makes the moot point that just before QE came into operation gold stood at $1733. When QE ends or even begins to taper gold MUST rise. QE only offers an unprecedented anomaly and like all anomalies the reverse must follow, in this case severely so..

IS AMERICA GREAT?

“America is great because she is good, and if America ever ceases to be good, she will cease to be great.” The preceding is a nice thought provoking thing to say it just is not correctly attributable to Tocqueville.
Although one can point to many political speeches to say the above is Toqueville it just is not so. In fact reality suggests the criticism of the criticism says more about politicians and their speech writers than it does the critic.
I find it odd because there is so much Tocqueville to choose from. Why does the fabricated Tocqueville spreads like a weed. Why not quote the real deal like:
“Consider any individual at any period of his life, and you will always find him preoccupied with fresh plans to increase his comfort.” But I guess that sentiment is difficult to weave into a stump speech. It is better suited to Atlas selfishly shrugged as compared to please vote for me because I just erroneously quoted from “Democracy in America”.
Do your own research: http://www.tocqueville.org/pitney.htm

Well, $2000 is not much of a move.

I would seriously reduce my investment level if I knew that 3 years from now it would be where it was 2 years ago!

That’s the end of a move, not a progression.

This is a repeat of a post from yesterday…

Sometimes what is more important than price is price action. I’ve talked about this several times and gave examples of the early and late betting at the racetrack.

This weeks price action in gold was very interesting, and very suspicious (there I said it!)

First I said in my post on Wednesday “September Song V” Goldman Sachs called for lower gold prices and that was good for another takedown. Sure enough it happened.

Then there was the Putin compromise and the Obama speech to calm the Syria war drums earlier in the week.

However neither of these two events moved gold on Wednesday. As a matter of fact gold held up remarkably well. All day it struggled to get even, hovering right below this mark.
I have noticed consistently when this happens there is always an afternoon take down. Not this day. Instead gold held on and basically closed flat.

Then came the Thursday a.m. takedown that can only be described as criminal.
In a flash on no news gold got crushed $20 in a blink of an eye.

After the takedown two new items come to light: first a much better than expected claims report based on incomplete data and a news story leaking Larry Summers as the new FED head. Why were either of these reports published?

First I noted the claims report is always good for a gold takedown, whatever the number.
This headline number was so good even Rick Santelli was stunned. At this point it was just piggy backing on bringing the gold price down even further.

Did somebody know something the night before?

Then the Summers leak.

Why was it leaked and why was it denied?
First we must establish the truth that our government no longer works for us but against us. That said…

Did they leak the news to see how the markets would react to a Summers appointment?
If they deny it now must they then deny it next week? Or is it all a lie?

Last Friday…

I said in last Fridays post when gold was up some $20 and knocking on the door of $1400 that literally in the final second $2 was knocked off the price. I said no one probably noticed or cared, but to me this was very very unusual price action. I never observed this before. $2 in a second on Friday must be some heavy selling.

Fast forward to today (Friday)

With gold literally going down for the third time, unable to even bounce off yesterday’s
Blood bath, down $14, the gold price comes roaring back late, to close not only up, but well up and at the days highs.

For someone whose been around race tracks his whole life and studied price action I found this weeks price action to be fascinating. I also find it to be highly shady, suspicious and manipulative. What else could a reasonable person conclude.

Thursday’s decimation, the erroneous jobs claims, the perfectly timed Goldman call and the Summers leak should have every free market participant and supporter crying foul and demanding an investigation and answers!

Israel was afraid to go into the promised land because they were afraid of the giants. Thinking themselves grasshoppers.

This is clearly hardball being played now.

We are the grasshoppers and giants are keeping us from the promised land

It is time, high time, we make our voices heard. We can no longer let GATA do all the heavy lifting. There is strength in numbers. We need to organize, shoulder the responsibility, and start demanding answers. I propose we all get behind GATA, organize and petition, have a media blitz, and start demanding accountability and straight forward honest answers!

Paul, you are right and don’t let these so called experts sway you. $1000 would certainly be the end of the bull market. However I already believe and said numerous times the bull market already ended. We have seen the parabolic blowoffs. Keep in mind all bull markets start with bear markets. When? Anyone’s guess
Glen – this is true. Bernanke ave stocks the green light and told them loud and clear he had their backs. No need to hold gold.
Ddswaterloo – how right you are. I am still kicking myself for not getting out at $1900 especially if $2000 was the top. Especially for me who always looks at % and not price. Now I have to hold on to hope for $2000 just to back back what I Already had 3 years ago, but it is what it is

http://www.financialsense.com/contributors/carl-swenlin/gold-breaking-down
View from another technician.

Who should punish the US and Israel for chemical weapons use? There should be an equivalent redline for every nation. UN needs to take action against all nations but that just won’t happen. Vietnamese are still suffering from agent orange sprayed all over their jungles.
Obama sounds like the spoiled crying brat quieted down by the more mature Putin.

75% of troops opposed to a war. The troops have to do the dirty painful work not the armchair warmongering politicians who would never send their own sons to fight a useless war.

http://www.zerohedge.com/news/2013-09-13/military-times-survey-75-troops-oppose-strikes-syria

What’s Roger Wiegand been up to lately??

Havent heard him on the show in quite a while.

Can you get the guys from the Encompass fund on to discuss how they have never had a positive year?

Or Del Steiner on to explain why a mining company spends $800,000 a year on travel but is still a good investment.

Or Larry Reaugh to discuss which one of his companies is going to zero next.

Al you keep terrible company. I guess that is all I need to know about you.

-> Posted by frr @ 16:29 pm on September 12, 2013 :: Edit post – as an answer
to the above question at another site.

I’ve been questioned if these, my beliefs are not only a bit off, but also phony as the EU seems to have much more severe problems than the US in terms of overall debt and solutions to “rectify” these problems!
Interestingly, most of EU’s current solvency problems have originated from the money changers of Wall Street and their cohorts; Being mad banks – figuring being investment banks-, rating and oversight agencies looking the other way – while political and corporate power usurped the government, a status once called FASCHIS’M!
And it still is.

… And I do feel it’s the post industrialized West, smugly leaning back in their past great performance and achievements, while we’ve passed the baton along to 2/3 of the globe’s populus long ago.

And here’s my answer to another poster:

Go East, young MAN !

“That Jim Stone sounds like the worldwide poster boy for paranoid psychosis. Just saying”.

You may be right, though that’s not what I’ve meant. It was my friend Jim Willie becoming more articulate in the sense of faschist leanings in the US major corporations, defense and its lackeys in Government becoming paranoid in their efforts to uphold another fiat paper system, based on debt; Or better the promise to pay back by taxing their subjects to infinity.

I guess, as subjects to most western post industrial economies and countries, we may be in a similar boat, even if most of the US Joe Sixpacks have no clue what’s happening and has already happened for 40 ears plus; It’s now coming to a climax, whether it can be postponed for a while is not essential.
The US Dollar Currency Reserve hegemony has run its course and a new global system will replace old Bretton Woods gold exchange and since 1971 the Saudi Oil Exchange $-System.

No one really knows and can claim total insight how the problem of un-repayable debt can be solved; Nor can anyone guarantee to stay solvent as the “sovereign”, neo-robber baron loses control of its bank bail outs and starts its “bail-in” in earnest.

Spare me to contemplate any other 1984 like solutions.

Meanwhile, after catching falling knives in both ASE and CLH, I’m more than convinced to put up more $ at basement bottom prices. Some wll remark on the poor financials, the no real news and, or the meager following within the industry. Without even going back to the exact opposite a few years ago, I’m asking – who needs it? Maybe GS does, as he’s seeing 1400 gold 2014!
May that as it be – I see GOLD, Silver just starting their major breakout vs all fiat currencies.

And I may be wrong … But it’s still coming – not if – only when.

Just saying …

grin…whew i thought it was just me…[gg]
-> Posted by WANKA @ 18:01 pm on September 12, 2013
there is no rhyme or reason to this crazy weird twilight zone action. all the funny-mentals are to da moon alice but the paper mache game is more important then phyzz and constantly leads the dance card. soooooo in the interest of mental health i have resolved to watch the crowd on duval st at sloppy joes in the downtown tourist center make drunkin gurgling sounds in living color and in real time too in place of my abnormal streaming netdania gold chart. now there is some healthy sanity for you if i do say so. ahhhh i feel better already. wj

And the rest is SILENCE
-> Posted by frr @ 18:01 pm on September 12, 2013 :: Edit post
No One is standing up against the usurpers and usurers of their wealth, liberty and right to seek happiness.

May it be that we don’t want, need nor deserve it!?

in that case let the criminals take over … good bye America!

You too!

Thanks for the big waste of space.

Cumulative IQ on this site adds up to less than PEMs stock price.

How many times did Al ignore the financials, the fact Del sold himself 5 million shares for $500 or the other shady info?

Be wary of the question I ask at the Vancouver Cambridge show Al.

Can’t wait to ask you something…

http://www.bloomberg.com/quote/ENCPX:US

The KE Report is now the most valuable source of financial info that I know of on the web. The round table approach is the reason. A few years ago, other podcast/webcasts (who will go nameless) were superior, but that is no longer the case. Thanks Al!

WHAT WERE WE TALKING ABOUT LAST YEAR

On September 15, 2012 at 10:04 am,
Dennis M. O’Neil says:

For whatever reason I was inspired to tie three thoughts from the show together…here goes.
The show thoughts were:
1) From Segment #1 Dr. Rossi’s mention of the Joe Biden’s Freudian gaffe about “They want to put you back in chains!”
2) From segment #2 the overall segment about the counter-productive reality that is Guaranteed Student Loans for higher education.
3) From segment #6 the idea of Clete Bulach statement “Everything in life is about control”.
If everything in life is about control then it is true that public education in general is about control. Student loans although perceived as giving opportunity have become the equivalent of fulfilling Joe Biden’s placing students in debt chains. In colonial times someone who could not afford to book passage to “The New World” would sell themselves into indentured servitude.
The process was a market and followed this path:
1) A subject was in an environment in which he was condemned to limited opportunity. Born into a caste system he would never amount to more than his father if lucky enough.
2) A vehicle presented itself to transport him to a magical place of unlimited opportunity.
3) Because of the practice of indentured servitude prices for passage to “The New World” were bid up beyond reach of average would be adventurer. A dilemma was at hand. Do you remain in serfdom at 40 schillings a year or ironically sell yourself into servitude for a ticket to be eventually free?
4) The hopeful booked passage selling themselves for periods of years into indenture. Literally declaring themselves as collateral for a boat ride.

Today the public schools take fiefdom over their district. The student serf who is lucky enough to learn the dumbed down curriculum is presented a diploma with limited prospects. “Higher education” presents itself as a ship to potential nirvana. However, free flowing student loan money has bid up the price of College and University. In order take the higher education journey the student takes on an indenture not at all distinguishable from the one frowned upon in history. We just do not call the uniquely non-dischargeable debt in bankruptcy what it is…enslavement. We call it opportunity. A must have. At $600 per credit hour students sit in auditoriums filled with fellow student debt slave passengers being taught by student teachers while the professor writes his next contrived masterpiece of academia.

Indentured servitude whether found in history or by Ted Kennedy’s favored guaranteed student loans both bid up the cost of a needed service to the detriment of those seeking the service.

In the seventies the squares and bell bottoms borrowed their way through Frisbee college many soon thereafter discharging the debt in bankruptcy…others paid it back much more easily with inflation debased currency. The prevalence of student loan bankruptcy threatened the program but to continue the farce Ted Kennedy excluded the debt from discharge. So we now live in a country in which things not found written in the constitution become the law as if they were written. We also live in a country, in which things written in the constitution for historic cause like bankruptcy for control purposes are ignored as archaic boilerplate.

Mr. Bulach was right about control being pervasive in life. Certainly the industry that is education is more about control than it is about enlightening the student. The failed public schools system exerts control over failure. The flawed fiascos deliver an occasional literate student to a higher education boat dock. The illusion of going to any school you want is joined by a controlling price of irrevocable debt. Guaranteed Student Loans are irrevocable indentures the equivalent of selling oneself into servitude. Maybe Joe Biden was right in a figurative sense. Maybe “they” do want to put us back in chains? Just maybe we have not ever fully escaped the chains in the first place.

Reply to this comment

Andrew MaGuire, GATA and others have been telling us for years that the dirty scum bags at JPM and GS have been manipulating gold and silver for years. The Government and Fed knows this and is part of it. This is a crime yet no one goes to jail!!!
A Crooked country doesn’t deserve to have the reserve currency.

The military munitions portion of the second panel discussion is misleading. WHite phosphorus and depleted uranium are mentioned in the same context as chemical weapons…..which they are not (ok…they are chemicals….just like a human body is….). White phosphorus is used for incendiary shells and smoke screens. Delpeted uranium rounds are shot by the Gatling gun mounted in A10 ground attack aircraft and takes advantage of the density of this metal. Depleted uranium is not radioactive and in fact is used as radiation shield in medical equipment.

“Agent Orange” was also mentioned. This was a combination of 3 chlorinated hydrocarbon defoliants that was used to defoliate areas of SE Asia to facilitate locating opposing forces because there were no practical IR vision devices at the time. If the chemical companies who made “Agent Orange” were a little off in their temperature control they got an unwanted tetra-chlorinated byproduct (TCDD) along with the “Agent Orange”. TCDD is more famously known as ‘dioxin’ and is highly toxic…just ask Vietnam Vets.

Ref John, Cory et al gold IS insurance. Bill Bonner makes this point well in this week’s Money Week:

In 1950 you could buy a new car valued at $1300 for 30 oz of gold. Today you can buy a new Buick for c $38,000, and where with gold at $1320 X 30 you could throw in a few extras as well. Gold only becomes an investment in the event of selling say at $2,000.

Cory,

Your mic needs serious attention. You sound like you’re talking into a tin can!

Content is great, but if I have to listen to you on that mic much longer I’m going
to go crazy!

Thanks!

Jim

Glen Downs and Al.
There was a time when I would have rooted 100% for Barnabas Aid. Over here we call it the Barnabas Fund which as a charity really focuses on beleaguered/persecuted Christians. However my own brother (another Reverend) and until recently the Chair of the BF found himself along with 7 other trustees faced with a very unsavoury episode with BA chairman Patrick S, and only ‘resolved’ this through their protest resignation. I tried getting an explanation from the charity itself but heard nothing. All I can say is that my brother fears something has gone badly wrong with the charity. But I say this with a heavy heart since both my wife and I still give to BA. even though we have yet to receive any explanation as to what had happened.

Re the Alawite Christians in Lebanon they too fear for their lives in the event of Assad’s regime going down.

Seg 8:

Why, why, why? Must share this with you to prove that people this side of the pond prefer to live in blissful ignorance: A well known TV personality (she figures on a daily BBC programme) when asked who was the U.S. President hesitated for a moment before answering: Bill Clinton!!

Most people simply can’t be bothered to know. Sadly this is the awful truth.

Cory people are to put it in your words simply distracted by their daily lives. Enjoy the football!

Al and Corey, great weekend show. I am an avid daily listener to your show and receive a lot of insightful information from you and your regular guests especially Rick and Doc whom I find to be great technicians. And as you rightfully point out it is prudent for an asture investor to expand sources of knowledge. As King Solomon said: Get wisdom and knowledge. The financial markets have a plethora of available sources for all of us . The challenge is to seek sources which are credible in order to make an informed investment decision. Yours is one of those for me….So keep up the good work! On another note but related topic, I read KINGWORLD news and specifically Andrew Maguires fascinating and profoundly important interview with Eric King of yesterday. I encourage everyone to listen to what he has to say. HOVER (Gold/Silver) DAM has just sprung a leak and it is about to break! Stay tune! Cheers Al and keep up the good work!

Does anyone here agree with Jim Puplava and Martin Armstrong when it comes to the Dow doubling in a couple of years? If so, how do you think the Dow will perform against gold over the same period?

Glen, Mike Pento just penned a comment on KWN about the markets reaction to Maguires interview. He is a featured guest on CNBC so we’ll see if he appears next week. Agree the plunge protection team will be out in full force. However as Pento opines the NAKED shorts must be now very worried. We’ll fine out when markets open! Oh yes I am dying to hear what Bart Chilton of CFTC has to say now that Maguire has exposed his comment to go public regarding the four year silver manipulation case by end of Sept. I think this time is different. We now have JPM Morgan insiders pointing fingers versus conspirators and soon we may have a very unlikely ally in Senator Warren who as a key member of the Banking and Finance Committee, is a pit Bull when it comes to the likes of the big banks manipulating the “little guy”. With KWN news and FOMC meeting next week things could get vey interesting in the PM mArkets indeed!

Another excellent show, thanks again Al, Cory & Jeff.

I have been recommend a book by a few friends that I will start reading this week:
The Five Stages of Collapse: Survivors’ Toolkit, by Dmitry Orlov

This has moved to the top of my reading list after watching a presentation by the author, here is the youtube link.

http://www.youtube.com/watch?v=RxQshxrkR9M

Again, thank you for promoting critical thinking.

Thanks Robski – book looks a mite expensive, while the u-tube clip appears to summarise what he is saying.

‘It’s five years to this weekend since the sub-prime crisis with Lehman brothers filing for bankruptcy.
‘Under the pseudo-scientific label of QE,’ writes liam Halligan in today’s Sunday Telegraph, ‘the Bank of England’s “balance sheet” has grown more than 350% since March 2009. The equivalent US figure is 220%.
With our banks now holding just £1 of reserve capital for every £33 on loan this is insane. Despite an urgent need for root and branch reform ‘on both sides of the Atlantic and while there have been some policy tweaks, the big structural policies have been delayed and fatally diluted.’

For Matthew: Some further thoughts on our discussion of chickens and gold reposted fron an older thread.

Matthew, there is a good reason I twice mentioned the compounding effect of investment revenue streams generated from chicken production. What chickens have over gold are that they are a productive investment that offers fairly consistent and predictable returns.

Most people presumably prefer owning something that offers income over another that offers no performance and is subject to the winds of politics and policy. On an intuitive level we should all apppreciate that food is both money and wealth. All of recorded history confirms the connection between efficient farming and the strengths of the society that make best use of good agricultural practices and the farm tools at their disposal.

I don’t want to labour the topic of chickens anymore though.

As I mentioned in an earlier post they are really just symbolic of food production and our most primitive form of wealth. I happen to agree with you that most people cannot put them in their portfolio either.

Joking aside, investments in agriculture and food production are utterly essential in my opinion but to be meaningful to the investor they should include the physical ownership of the land necessary to produce them and not just be investments made through the proxy of an ETF or other fund.

I mean to say, you need real productive farm land for your security if you are serious and think long term. It is all the more important for those who have children and think in terms of their families wealth growing over time.

I do appreciate the attraction to gold of course. As a compact inert substance it is able to store wealth which is representative of our past labours. Traditionally those labours have revolved around the production and trade in food and related goods. That is a truth found throughout most of human history so I think it is hardwired in our heads to know that if we cannot store food iteself we must have a way to store the best alternative which can be exchanged for food if necessary.

It is natural enough that there would be a lot of debate too about what the best forms of currency and money might be. These are exceptional times. I say that from a wider historical perspective of humanity. We have managed to urbanize most of our own civilization and turned almost all of society into landless city-living debt-serfs.

It is an amazing trend really. When I say landless by the way I am not referring to the fact city dwellers have no land but rather that they have insufficient productive land to produce for their own needs. Condos do not even count as wealth in my books if they cannot be converted to money and thus directed to a better use on short notice.

In the process of this long urbanization trend most people have lost touch with what is the most meaningful aspect of the lives of the majority of people from the past who understood the importance of wealth from an entirely different perspective. The advent of mass urbanization has also created an unprecedented vulnerability for our civilization.

Our dependance on energy to sustain this model goes without comment in most peoples daily lives. This lack of awareness is without precedent nor is there a fair understanding of just how much acreage a family needs at a minimum for crude survival in colder climates or Northern zones.

Perhaps this is why I often mock gold. It is indeed a store of wealth and I agree with its utility as a currency and ability to preserve buying power over time but in the larger picture it is incapable of resolving the greatest difficulties that lie ahead for our energy dependant Western societies.

Simply put, gold is insufficient to buy our way out of century long urbanization trend that has perched humanity on the precipice of having to face any number of risks for which we are not truly prepared. Nor is it even possible for most to prepare anymore. A myriad of hazards are indeed within contemplation and are not only real but in some cases predictable. Our society is at risk. Almost none of us has a fallback position in the event of a crisis either.

Nobody is going back to the farm that is pretty sure. Not with the skill set we possess today at least and not with our demographic profile either. It takes a lifetime to learn and understand the intricacies of farming let alone develop a good intuitive sense to remain operational and productive.

Fact is that just a tiny fraction of all people in North America know anything at all about the basics of food production nor agriculture itself. Even on the farm, the workers are typically unskilled and not knowledgeable or educated in what they are doing. Working on tiny pay packets amounting to minimum wage they merely toil as told without ever developing expertise in what it is they are actually doing.

They cannot time planting, don’t understand weather, know little of crop cycles, seed saving or even water conservation. The modern low paid farm worker is no different than the 16 year old who flips burgers from a formula he learned in 20 minutes of on the job training. This is amazing really.

So we are divorced from our historical roots. We have not only been divided from the land that historically represented our wealth but we are also divided from the knowledge of the land and what it really represents for our most basic needs and security.

As an alternative we have developed a vast array of artificial tools for wealth accumulation and investment that are just substitutes for what we no longer have. But are we secure because of them?

I will suggest we are in great danger and that it is simply a matter of time before difficulties erupt. Maybe not this decade nor even this century but in such regards we always need to think in terms of our own generations and our own families. We will therefore consider our children when investing for the future and care for their educations to ensure they are not amongst those who go on the critical list at the first signs of real trouble.

Just a short contemplation of the societal risks we face should sober us up. What might happen if the power goes off one day and does not come back on? Who will be ready? What if the gas is cut during winter by an enemy, the supply system wrecked by software and hacking? Can we cope if the supply-chain based on trucking is interrupted and food deliveries from Mexico and California do not arrive as scheduled? What happens in the event of the real worry that should be at the back of everyones mind…….what shall we do if our cities are attacked by bacterial or viral weapons and a plague erupt?

Of course none of these situations are impossible (some are inevitable) and at various times in various places we have records of just how quickly social cohesion can break down when something as simple as the water supply being cut forces a migration out of urban areas.

I am not an alarmist though. While these are real risks we also know that people are pretty good at responding to adversity. We also know though that as the population of the world grows resources will become scarcer and select land very much more dear. Quality land with water resources will increasingly become expensive to the point of not being affordable for most people anymore. That may already be happening. The trap of course is that as people have migrated to the city so have the jobs. It takes a very strong and willful person to break from the mould and try to establish a farm these days. Most don’t have the skill or resources to pull it off anyway espcially in the absence of gainful employment.

So as I ponder what really preserves wealth and what in the big picture has the most meaning I always think back to the basics. Gold is great for holding some portion of our past labours in a storable form but it does nothing to resolve the overarching dilemma that is inevitably going to arise. We can never forget that we live in an artificial and vulnerable creation of societal engineering nor that it has no equal in all recorded history.

Never has the worlds population depended so intimately on a combination of technologies, liquid fuels, electricity and money substitutes at the same time. Neither has there been a time when so few practiced traditional labours in their daily lives and retained a connection to our collective agricultural past. Chickens as I said are just symbolic of this idea.

In the past years these ideas have solidified in my mind. I live in a poor nation where my neighbors are almost literally still working at a stone age level. They grind wheat with rocks, plow fields with oxen, harvest grains by hand without the benefit of steel tools and do not rely upon anything more than their own legs for transportation. They deliver their production to the towns on the backs of donkeys. This is where we all came from of course and this is inevitably where we are going to return over the passage of time.

Unfortunately, the vast majority of people will not be able to make the adjustment and transformation when it comes. There are quite simply too many of us and we are too dependant on the artificial constructs of our time. The skills are lost. An obese, unhealthy, television drugged society cannot possibly hope to migrate back to the land and enagage again in the fundamentals. And so we await our fate. We should be deeply fearful of what is coming but that does not seem to be wired into our senses. Complacency rules.

A bad day is coming though. Lets have no doubt about that. Not this year, not this decade and maybe not even this century……but it is coming just as sure as the sun sets and the moon rises. When that time arrives gold will be the salvation of nobody. What will be valued most will be the skills necessary to function without the supports we have become accustomed too and without the benefits distributed by our governments.

And that is the day chickens will matter again.

Whew! Matthew I’ll answer for you. As Roger Wiegand’s nemesis Bird Man you do him proud. What an incredible speel to make one point: In the end gold won’t matter, only knowing how to rear chickens! By which stage chickens will have had their day as well. Way too much ‘Babel’ BM, way too much.

http://www.bloomberg.com/markets/economic-calendar/ Upcoming business news calendar for next week. DT

To one and all on this fine blog: remember rule #6

Two prime ministers are sitting in a room discussing affairs of state. Suddenly a man bursts in,apoplectic with fury, shouting and stamping and banging his fist on the desk. The resident prime minister admonishes him: “Peter,” he says, “kindly remember Rule Number 6,” whereupon Peter is instantly restored to complete calm, apologizes, and withdraws.

The politicians return to their conversation, only to be interrupted yet again twenty minutes later by an hysterical woman gesticulating wildly, her hair flying. Again the intruder is greeted with the words: “Marie, please remember Rule Number 6.” Complete calm descends once more, and she too withdraws with a bow and an apology.

When the scene is repeated for the third time, the visiting prime minister addresses his colleague: “My dear friend, I’ve seen many things in my life, but never anything as remarkable as this. Would you be willing to share with me the secret of Rule Number 6?”

“Very simple,” replies the resident prime minister. “Rule Number 6 is ‘Don’t take yourself so g–damn seriously.” “Ah,” says his visitor, “that is a fine rule.” After a moment of pondering, he inquires,
“And what, may I ask, are the other rules?”

“There aren’t any.”

Above quote lifted from page 52 of 56:
http://www.dundeecorp.com/pdf/Annual-Report-2012.pdf

I appreciate the phrase “gesticulating wildly!”

Has anyone seen the Andrew Maguire interview on KWN?

Does anyone think the gold price turned around because of it?

Friday price dropping interview at 2 pm and price went up from there about $20.

Do you remember when we took the Iraqi WMD/War debate to the UN.
Colin Powell presenting what is now in ‘common wisdom’ said to have been a lie.
Well all during the UN dragged out debate after which the sales of French bread and wine in the US plunged……….. trucks moved across the Syrian border.
Maybe the below linked to headline should read “WEAPONS OF MASS DESTRUCTION ARE BEING RETURNED TO IRAQ”:
http://www.jpost.com/Syria-Crisis/Report-Syria-transported-chemical-weapons-to-Iraq-326141

Bird Man to lead the world!!

Larry Summers withdraws name from Fed Chair
http://www.cnbc.com/id/100997096

Summers withdrawing might have been the reason for the PM price spike late Friday. Not sure how or if at all the KWN whistleblower interview ties into any of this. Yes, very interesting.

http://www.cbc.ca/doczone/episode/the-secret-world-of-gold.html?subpage=investing If you haven’t watched this program on “The Secret World Of Gold”, It was on CBC last thursday night and it is extremely interesting it includes Andrew Mcguire, Hitler, John Embry, you name it, if you haven’t seen it I highly recommend that you give it a look. DT

My understanding is that Summers would have been pm positive because he would have put QE into infrastructure. This could have helped increased money velocity.

Now we find out Summers is pulling his name from the list of FED candidates after the news story broke he was chosen by Obama. These are the lies I was talking about in the earlier post. Looks like that news article was floated to see the reaction. Why would quit this late in the game? Allcthosethings he cited as reasons aren’t new. More corruption.

Seems to be impossible to get dependable news whether it be mainstream or alternative media.

Look like Asian markets keep selling gold.ccould be another brutal night. Next few days will be interesting

As children we would call Al Gore out like this…..:
“Liar, Liar pants are on fire!”

http://cnsnews.com/news/article/barbara-hollingsworth/wrong-al-gore-predicted-arctic-summer-ice-could-disappear-2013

As expected gold crushed. Summers is gone. QE was great for stocks and bad for gold. Looks like no QE is still great for stocks and bad for gold. DOW futures ready to soar. It’s all stocks all the time. If you are all in gold you are getting left behind. Gold cannot win for losing!

Dennis the poached eggs are not a bad idea, as far as the coffee goes though, no. I am a tea drinker. But in all seriousness – these longer term charts are breaking down. This could be a knee jerk reaction but.. Looks like the Larry Summers withdrawal is giving the stock market a shot in the arm. Could it be they perceive more easy money policy for a few more years? If so they are going to send it in to stocks and ignore gold. This could go on for a while. Ultimately it might all crash but some other fiat currency will take over the reigns. They will never let it be gold, and if the world demands gold they will t

They will take it away. I think those holding gold for insurance are in for a big disappointment. Kind of like when you call up your insurance company and they tell you sorry that’s not covered. It does look to me like its all stocks all the time. If you can’t beat me join em

The SEQUESTER was the game changer. This is long term.

Republicans win the white house in 2016. Some sort of fiscal responsibility will be introduced. Anything better than Obama. Bottom line something has changed, sometimes it starts slow and unnoticed to all but a few with a long look. Price is telling the story

The next FED head whoever she is will keep the spigots flowing. Meanwhile the sequester will cut government spending. It’s all good in a perverse sort of way. Some times you just have to follow the price.

ABX is up 4.7% and about to generate a buy signal which should be good for the rest of the pm stocks. Gold got crushed again in the early hours. It looks like the Fed’s agents have gone from their day job and working nights.

When was the last time the repulsion were in charge?