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Exclusive: The Bank Of England Engaged In Flagrant Gold Manipulation In The Interwar Period Via The New York Fed; Does History Repeat Itself?

Tyler Durden's picture




 

An article written by University of Tennessee professor John R Garrett, "Monetary Policy and Expectations: Market-Control Techniques and the Bank of England, 1925-1931", which describes in exquisite detail the gold falsification measures undertaken by the Bank of England in the interwar period in order to impact interest rates in a favorable direction, performed with the full criminal complicity of the Federal Reserve Bank of New York, may mean paranoid "gold bugs" could soon be forever absolved of their "tin hat" wearing status as outright gold, and other data, manipulation by a major central bank is now proven beyond doubt. The implications regarding the possibility of comparable deceitful and treasonous acts by modern central bankers are staggering.

The Bank of England depleted its open-market portfolio by secretly sterilizing large gold inflows. Thereafter interest rates were influenced by manipulating reported gold flows.... A gold flow falsification was over two-thirds as effective as an open-market operation.

Falsifying critical gold data worked for Britain 70 years ago. Is it working now too? And is the BOE alone, or is Bernanke taking advantage of the Bank of England's experience? To be sure, the world was different with the Gold Standard the bedrock of monetary policy. Yet are the similarities between then and now not greater than the differences? With the shadow economy exposed as hinging on the investing community's desire to go with the prevailing "valuation" lie (a reason why the shadow economy in broad terms will take many years to return, if ever) the core asset is and always will be gold.

And yet the main question remains: why did the Bank of England openly and flagrantly manipulate critical data? Why did it mislead the citizens of the country it was supposed to serve? And if this happened in the past is it happening now? Is this the reason why the Federal Reserve is so opposed to exposing itself to public scrutiny and audits? If the BOE was engaging in outright fraud in the 1925-1931 period, why would today be any different?

Garett's mesmerizing report, published in the September 1995 issue of Monetary Policy and Expectations, has oddly not received much if any public notice, with not a single mention of the article or its implication in either the blogosphere or the mainstream arena. This is very unusual as Garret's disclosures would lend vast credence to not just gold bugs' claims that there is blatant (ongoing) gold data manipulation, but that Central Banks regularly engage in outright deception when it comes to achieving desired monetary policy results. To wit:

Montagu Norman, the Governor of the Bank of England... engaged in a large-scale deception that greatly over-stated the size of the effective open-market portfolio, understated the size of the gold stock, and misstated the size and even the direction of gold flows.

Not only that, but Garrett provides a direct link between secret gold market operations by the BOE and accumulation of US Treasuries: a critical concept not just in interwar Britain but more so currently, when faced with the need to finance trillions in budget deficits, the market is poised to decline by 25%+ should the US government experience a failed auction. Oh, and guess who was complicit in the BOE deception, and was used by the British central bank as a trading conduit? Why, the Federal Reserve Bank of New York, of which Tim Geithner was president from 2003 to 2009.

Norman sold pound-denominated securities to sterilize the additional bank reserves created by the gold inflow. He simultaneously sold gold for dollars, lowering the Bank's reported gold stock, and bought U.S. Treasury bills with the proceeds. He also had all transactions carried out on the New York market by the New York Federal Reserve Bank so that they could not be traced to the Bank of England. (see Figure 1) The U.S. Treasury bills were comingled with pound-denominated "other securities" in the Bank's published open-market portfolio and were assumed by the markets to have been pound-denominated securities. In one stroke the gold inflow and the decline in the open-market portfolio were hidden. Bank Rate was kept at a very high level given the abysmal state of the economy, well over the level that would have prevailed under the Bank of England's prewar reaction function.

The motive: the traditional misrepresentation of inflationary/deflationary forces to the general public.

Had it become public knowledge in the spring of 1928 that deflationary policy was three times as severe as reported and concurrently that gold inflows and the gold stock were at record levels, Norman would have been through.

And if anyone thinks the Fed's penchant for secret is a novel thing, just look at what was happening in the dark corridors of the Bank of England in those dark days after World War I:

Sayers documents that the Committee of Treasury, the Bank of England's day-to-day governing body, was left in the dark, as was the Court, the Bank's de jure and, before Norman, defacto policy body. Sayers expresses surprise at the secrecy with which open-market operations were surrounded even within the Bank's inner corridors. This extended to the point of declining to keep in the Bank's confidential archives any written records of policy decisions motivating transactions. However, for Norman's policy model the utmost secrecy was essential.

But it doesn't end there: what Montagu Norman did was virtually equivalent to treason. One, thus, can not help but wonder what Ben Bernanke does behind closed doors.

Norman's deception was audacious, as it involved the abrogation of Parliamentary authority over the coin of the realm and the subversion of the ancient charter of the Bank of England. These major questions of state, however, became bureaucratic trivialities compared to Norman's daily task of convincing the financial markets that he was in control when in fact he was not. An effective open-market portfolio of well over 50 million pounds was required to maintain control through standard open- market operations. From late 1926 until the end of the gold standard Norman never held the minimum portfolio, and normally could muster only one-fourth or less of the requisite strength.

And while we can be sure that the Federal Reserve is certainly not performing the same kind of illegal and treasonable activities, as otherwise Federal Reserve General Counsel Scott Alvarez would be in prison for gross perjury, courtesy of Alan Grayson, looking back at history may provide some other ideas of how the Fed could engage in other just as illicit monetary activities:

Montagu Norman maintained his tenuous grip on the market by fully exploiting all traditional policy instruments and through the creation of a wholly new expectations channel for monetary policy. Four methods were employed: open-market operations; special deposits; coordinating public finances; and false reporting of gold flows. The quantitatively least important method of market control was using confidential special time deposits from individual financial institutions to take reserves off the market. Special deposits had to be substantial and secret, as the Bank was claiming in its published figures that it had no reason to resort to special deposits to drain reserves. Thus special deposits were difficult to use as a regular policy tool (see Table 1). Although special deposits were used only three times, each instance came during a period of market-control difficulties (see Figure 2).

Yet monetary policy response were vastly limited:

As the open-market portfolio was completely exhausted by 1928: 2 (see Table 2), contractionary monetary policy could not have been maintained otherwise. However, there were limits to such help, as padding the Treasury's balance at the bank required issuing more Treasury bills than necessary, which cost the taxpayer, and was therefore certain to draw inconvenient questions from the Chancellor of the Exchequer.

And here is where we enter the twilight zone:

Norman published misleading Bank of England balance sheets that falsely reported gold flows. Up until late 1926 the gold inflow was consistently understated, but the direction of change in reported gold holdings faithfully followed actual gold holdings. Sayers states that Norman's intention in hiding gold was merely to accumulate a reserve cushion for a rainy day, and does not view the hidden gold as a market- control tool, though he admits that the secret reserves supported tighter monetary policy. Sayers's position, which is consistent with the pattern from July 1925 until October 1926, may reflect Norman's original intention. However, from late 1926, just as his open-market portfolio declined below the market-control threshold, Norman did not just underreport gold inflows, but began to under-, over-, and misreport gold flows as appropriate for his market-control needs. Every possible type of false reporting was committed.

If after reading this historical evidence of Central Banking treason, senators are unable to pass Ron Paul's Fed Transparency Act then there has to be open social action to clean out the Senate of all those who claim that the Fed's actions are pure and true, as they are merely corrupt cronies, bought entirely by interests of the Federal Reserve, and thus Wall Street. Furthermore, we urge readers to follow through on footnote 34 of the Garrett report "For example, Woolley, Monetary Politics; and Neumann, "Precomitment." Note that Woolley also finds evidence for the U.S. of a channel of influence running "backwards" from the central bank to the administration." We are very curious just what "evidence", besides the circumstantial, exists that the administration is nothing but the Fed Chairman's puppet.

The BOE's actions, which were open and flagrant fraud and deceit, went far beyond just gold manipulation. One can easily find parallels between the Mutual Assured Destruction wild card used by Norman and such "end of the world" exhortation by Paulson, Bernanke, Geithner, Blankfein and everyone else who stands to see their accumulated wealth disappear should there be a full audit of the Federal Reserve.

Norman's proffered scenario called for a rise in Bank Rate supported by open-market operations. To restore reserves the London clearing banks would call in their overnight money, the chief source of finance for the discount market's bill portfolio. To pay off their call-loan borrowing, the discount houses would be forced "into the Bank," forced to discount their portfolios at Bank Rate, a full 2 percent above the call-money rate. Thus Norman was threatening to force the discount houses to liquidate their highly leveraged portfolios at rates 3 percent above those contemplated when the portfolios were purchased (the 2 percent differential between call money and Bank Rate plus a 1 percent increase in Bank Rate). Given the thin margins and low capital levels in the discount business, this would have produced severe losses.

Despite Norman's weekly meetings with the discount houses' governing body, he waited to deliver his ultimatum until the pound's seasonal autumn weakness, when the market was already nervous about an increase in Bank Rate, five months after the market-control incident began. Why Norman had simply not drained sufficient liquidity out of the market at the time of the incident was probably puzzling to the discount houses, but the dire consequences of Norman's threat made it unlikely that anyone would call his bluff, if anyone could have even conceived that he was bluffing. In fact, he was. His portfolio was empty.

Garrett's findings ultimately provide a critical basis to reevaluate the entire foundation of modern fiat-system based economics.

The results may be summarized as follows. Markets can not tell when a central bank is lying. They then have the option to accept all or reject all forecast information emanating from the central bank. Under such circumstances the credibility model asserts that private financial markets reject all central bank information. This is possible because the financial markets' private information is assumed to be almost complete. However, the results presented here contradict this assumption and lend support to the opposite case: the markets' private information is so incomplete that they can not dispense with central-bank sources. The implication for the credibility model is devastating because pervasive ignorance and uncertainty allow the central bank to maintain its position as a disseminator of forecast information even if the central bank is guilty of extreme dishonesty, as under Norman. Under these circumstances monetary policy will be an effective instrument to stabilize the economy against both money demand and real shocks, which contradicts the core result found in the large and influential credibility-model literature.

And, sure enough, with these findings, the death of Monetarism and Keynesianism is one step closer:

Recently support has increased for Kindleberger's "internationalness" hypothesis and in particular the role played by the internationally shared characteristics of the macroeconomic policy system. The three most important features of the macroeconomic policy system were fiscal policy constraints through balanced budget policy rules or laws; the independent central bank as the uncontested policy authority; and the gold standard as the system's enforcer. The postwar international financial order was managed by central bankers who were not stabilizers, whether of a Monetarist (stabilizing the money supply) or Keynesian (stabilizing the level of output) variety. Montagu Norman's policy model and his policy choices lend clear support to the new interpretation. Much of the earlier literature explicitly or implicitly assumes interwar central bankers were stabilizers. Conclusions dependent upon this premise must be reevaluated.

Garrett's conclusion is stunning. Should comparable deception be found at the epicenter of monetarism, i.e., the Federal Reserve, the refutation of the entire "goal seek" science of economics as we know it may soon be at hand.

[T]he behavior of British financial markets is shown to be inconsistent with the microfoundations of the new classical model- expectations not only moved in a policy reinforcing rather than a policy negating direction, but expectations became a reliable, systematic policy instrument. One of Thomas Sargent's hopes is fulfilled-economic history proves to be fertile ground for testing the accuracy of complex macroeconomic theory-though the outcome is probably not what he had expected.

We urge readers to read the Garrett paper and to send it to their representatives and senators, with the hope that once it becomes fully clear that formerly reputable Central Bankers openly, repeatedly and in flagrant violation of their charters, engaged in outright market manipulation and data fraud, that the Federal Reserve will finally be audited or abolished, which for all intents and purposes, will end up being the same thing.

We are confident that somewhere Mark Pittman is smirking, all too knowingly.

Full must read Garrett research paper.

 

 

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Sun, 02/14/2010 - 00:53 | 230384 Anonymous
Anonymous's picture

Well, there's your smoking gun. Time for another Grayson grilling of Geithner? Unbelievable work TD.

Sun, 02/14/2010 - 06:42 | 230483 Anonymous
Anonymous's picture

Ditto ... my thoughts exactly

Ron Paul, Grayson and GATA

Grayson should be able to hammer them with this evidence.... hopefully !

Well done ZeroHedge !

Sun, 02/14/2010 - 13:08 | 230652 Stuart
Stuart's picture

These guys are not going to admit to a damn thing no matter what evidence there is.   They're "all in" and they know it.   Still, amazing report.  Well done.  

Sun, 02/14/2010 - 15:57 | 230803 Dirtt
Dirtt's picture

Yes.

 

I threw Zero Hedge some dough this weekend.  With this kind of reporting we may have to start providing security too.

 

Donate.  Time to end the treason before it ends us.

Mon, 02/15/2010 - 02:51 | 231205 macfly
macfly's picture

Well said!

Mon, 02/15/2010 - 13:50 | 231577 Anonymous
Anonymous's picture

You have convinced me to do the right thing
and muster a small tithe' from my moderate store.

-MobBarley

Sun, 02/14/2010 - 07:34 | 230494 jeff montanye
jeff montanye's picture

i don't think a grilling would do it.  montagu could have handled one too, if he could remember the lies he was telling.  the audit of the fed is the ticket.

Sun, 02/14/2010 - 15:46 | 230790 Anonymous
Anonymous's picture

I would strongly suggest that anyone interested in this topic listen to the two recent interviews with Jim Rickards on the site www.kingworldnews.com . I have no affiliation with this site and while I find the moderator's tone somewhat annoying, the interviews are often spectacular. On this topic, he basically points out that Fed intervention in the markets is not a topic of debate and is acknowledged to occur, it is just not publicized in full detail. He give lots of other great context as well. My two cents is that the people behind this do not view themselves as doing anything too devious, but are just conducting policy...however just as with any other vice which is fairly harmless and occasionally helpful on a small scale, it can easily (and clearly has) gotten completely out of control with disasterous results now and in the future.

Sun, 02/14/2010 - 17:23 | 230869 defender
defender's picture

Jeff, I just replied to your question about treasuries, I have been a little behind this week so it took a little longer to get back to it.

linky: http://www.zerohedge.com/article/pitiful-16-billion-30-year-auction-clos...

Sun, 02/14/2010 - 11:44 | 230604 DaveyJones
DaveyJones's picture

let's see interwar period, war period... so as long as we're neither at peace or in conflict, I think they'll leave us alone 

Sun, 02/14/2010 - 14:22 | 230730 Hephasteus
Hephasteus's picture

Ya korean war, vietnam, Iraq war, etc etc etc. There seems to be such a lasting peace between the eastern hemisphere and the western hemisphere.

Sun, 02/14/2010 - 22:03 | 231084 Anonymous
Anonymous's picture

Weren't we just treated to an Eliot Spitzer who lavishly praised our lead central banker for his "integrity, complete honesty" and general wholesomeness?

All are a nest of vipers to be routed out. Obviously a central banker who accesses illegally the saved substances of the people, without their consent, and directs it to purposes which rewards predatory banks in contravention of their interests is CONNIVINGLY EVIL!

Bernanke is the captain master of a system built upon lies, subterfuge, criminal expropriation, counterfeiting, dilution of monetary strength, market manipulation, and misinformation leading to trades which cause further expropriation.

Sophisticated and state-sanctioned robbery is even worse than two-bit bandit holdups or muggings. The violence is barely restrained by a host of officers whose only purpose is to harrass, intimidate, or strong arm the populace into submission.

Bernanke is the head of the most criminally successful organized crime syndicate in the world. As such, whether he touches the weapons that draw the lifeblood, or not--he is culpable for both the sins and the crime.

EVIL IS WHAT EVIL DOES.

Sun, 02/14/2010 - 14:40 | 230745 Molon Labe
Molon Labe's picture

They think of themselves as heroes, who are doing this for our own good.  You see, we would not understand if the truth were publicly known.  We should just watch our reality-television bed-time stories and let the "smart people" take care of us.  The end justifies the means, in their opinions.

It's disgusting, really.

When they lie awake at night, with only their consciences to keep them company, I bet they question and realize that they are really just acting in their own short-term self-interest.

How else to explain the long-term failures of their policies?

Sun, 02/14/2010 - 16:02 | 230810 Anonymous
Anonymous's picture

don't stress over it, they are doing Gods work.

Sun, 02/14/2010 - 18:57 | 230934 Anonymous
Anonymous's picture

"How else to explain the long-term failures of their policies?"

premeditated malevolence by a self chosen cabal that's been expelled from over 100 countries?

http://www.biblebelievers.org.au/expelled.htm

Sun, 02/14/2010 - 21:25 | 231053 artcash (not verified)
artcash's picture

his guy is an idiot: http://economixx.100webspace.net/

obviously,  we're in deep trouble!

Sun, 02/14/2010 - 23:45 | 231143 Rusty Shorts
Rusty Shorts's picture

Spam idiot.

Mon, 02/15/2010 - 00:13 | 231152 WaterWings
WaterWings's picture

Your website address looks like an STD.

Sun, 02/14/2010 - 01:00 | 230387 Cistercian
Cistercian's picture

 No surprise.I rather suspect bernanke is far worse.A balance sheet of raw sewage combined with every other kind of malfeasance imaginable=currency crisis imminent.

Sun, 02/14/2010 - 17:23 | 230868 Anonymous
Anonymous's picture

Greetings. Very curious who Cistercian is, esp since I am the Cistercian in the photo. frbernard@monksonline.org

Sun, 02/14/2010 - 18:03 | 230891 MarketTruth
MarketTruth's picture

Perhaps it is time for every patriotic American to stop paying the taxes imposed upon them due to the government's Odious Debt.

Seriously, time for action.

http://en.wikipedia.org/wiki/Odious_debt

Sun, 02/14/2010 - 01:11 | 230390 Anonymous
Anonymous's picture

what a gem of an article - i give this one a pulitzer....i am sure gata will be pleased....

well of course the fed is doing precisely what norman was doing and he ended up driving england off the gold standard - perhaps because all of the gold was safely in his back yard....

the fed - especially under benjamin strong - was enabling england's looney policies by inflating in the usa to rescue the pound which was over valued at pre-war exchange rates....another fine mess which economics by politburo created....

the london gold pool is another example - from the 1960s - of concerted central bank manipulation of the gold price....

as our founding fathers so prudently bequeathed to us a dollar based upon gold, the evidence here vindicates their brilliance. they saw what the boe had done to currency and wanted none of that crap here....

murray rothbard has some important observations about this episode and how it resulted in a overheated usa economy about which the fed over-reacted and caused the crash of 1929.....the ginormous boob herbet hoover assured a permanent depression which roosevelt was only too happy to extend for another 12 years....

who owns the gold makes the rules....without gold there is no civilization....all other solutions are frauds and hoaxes on the people who must now arise in anger to purge these central banks creeps, banksters, and hoodlums from power along with the fake economists, journalists, and charlatans promoting such fraud.....

Sun, 02/14/2010 - 01:45 | 230400 glenlloyd
glenlloyd's picture

Rothbard mentions in one of his books the Fed devaluing the dollar repeatedly in concert with the BOE during the period where England was attempting to go back on the gold standard. I wonder if the above is in any way related to this period or the collusion between the two on this matter.

Sun, 02/14/2010 - 03:48 | 230435 Anonymous
Anonymous's picture

it is part and parcel of the same scheming
fraud....the fed lowered interest rates and
pumped up the money supply especially in 1927
to support the pound - which as i mentioned
was brought back onto the gold standard at
way too high a price....the brits had inflated
their way to a pyrrhic victory over germany
and the pound was simply not worth as much
as they pretended it to be....

all of this money pumping misallocated investment
and caused a terrific inflationary run-up on the
stock market....fed pulled back in 1928 after
strong died and about a year later the market
crashed.....margin money was no longer available
and margin calls went out like call girls at a gi
brothel....

pretending seems to be an advanced art for
central bankers...

Sun, 02/14/2010 - 10:25 | 230557 acrneer (not verified)
acrneer's picture

The Big One is coming soon, bigger than the 2000 dot-com crash and the 2008 subprime credit meltdown combined. A huge market blowout.The Big Crash is Coming...."debt bomb" Explosion

Sun, 02/14/2010 - 20:12 | 230982 mojine
mojine's picture

SPAMMER!!! Begone!

 

Marla?????

Sun, 02/14/2010 - 09:00 | 230523 aurum
aurum's picture

as our founding fathers so prudently bequeathed to us a dollar based upon gold, the evidence here vindicates their brilliance. they saw what the boe had done to currency and wanted none of that crap here....

 

it wasnt only the boe....fiat currency conversion has always failed throughout history...my favorite US parallel is the roman empire........fiat is just a sheeple CONfidence game where bankers and the like skim the house till its dead....gold has always been and will always be true money and no amount of "tin foil" will disprove that fact..gold is freedom

Mon, 02/15/2010 - 02:54 | 231208 KevinB
KevinB's picture

G*d d*mn it.. I was just getting used to my tin foil hat. It was bit snug at first, but now I don't need it at all?

Cartman.. I blame Cartman.

Sun, 02/14/2010 - 01:27 | 230397 Anonymous
Anonymous's picture

Thats nice, next...

Sun, 02/14/2010 - 16:47 | 230844 Anonymous
Anonymous's picture

no it was not nice what the boe and fed did....

Sun, 02/14/2010 - 01:45 | 230401 Oracle of Kypseli
Oracle of Kypseli's picture

I will be buying some gold next week. you never know when the emperor is exposed and gold will reach its true level.

It seems to be the safest bet at the moment.

Sun, 02/14/2010 - 09:14 | 230527 Anonymous
Anonymous's picture

I've been toying with a vintage shortwave radio this weekend and stumbled on a voice of china radio station.. they were pushing the story of how folks are snapping up 1 kilo bars of gold at apprx $42,000 u.s. to celebrate the year of the tiger. These "voice of *country* radio stations are pure propaganda mechanisms. I'm sure China knows the precarious spot our fed have put themselves in and they are blasting stories about folks rushing to buy gold.. I'm sure they just want to make the fed squirm and feel the heat with their massive short gold positions.

Sun, 02/14/2010 - 12:25 | 230627 Gold...Bitches
Gold...Bitches's picture

Chinas been promoting the purchase of gold and silver by its citizens through state tv for quite some time now.  nothing new.

Sun, 02/14/2010 - 16:33 | 230836 Anonymous
Anonymous's picture

yes they have. Just thought it was interesting to hear while tuning the vintage shortwave. They are taunting the fed. They know the fed will fail at suppressing the price of gold. Radio China is broadcast in English and beamed towards the USA. Can imagine BB biting his finger nails listening to this lol

Sun, 02/14/2010 - 20:12 | 230983 DosZap
DosZap's picture

Ever thought this one thru?.China has nore Gld/Rare Earth Metals than anyone on the planet (known reserves)also, their cost to bring to street, is the lowest on the planet.This is THE main reason they did not buy the rest of the IMF tonnage, after India sucked up 50% of it.

Also, by their subjects owning REAL  money,they can be a self sustaining market, largest on the planet, with the  Yuan, backed by  PM's, without buying one ounce in the World market.

Heck of a deal, what one can achieve with slave labor, and humongous reserves.

Who's fiat currency, would then not be fiat, and the strongest on the planet, and cost the Government nearly nothing?.

Reserve Currency Kings of the world, for next to nada.And, backed by PM's...........

Sun, 02/14/2010 - 22:08 | 231090 Anonymous
Anonymous's picture

China owns copious loads of PMs AND has all the productive/manufacturing capacity of the world in its hands?

Crap, I'm getting a rickshaw, this place is bereft of real economic inputs. Or maybe I should get the sweet spot of a fireman?

Sun, 02/14/2010 - 01:50 | 230404 Anonymous
Anonymous's picture

Why publish at midnight on Saturday? ... better during the day no?

Sun, 02/14/2010 - 05:15 | 230459 Anonymous
Anonymous's picture

it's a gift to us geeks who have nothing better to do on a Sat night

Sun, 02/14/2010 - 18:31 | 230908 Miles Kendig
Miles Kendig's picture

Beauty and worth of time are the pleasure of the beholder.

Sun, 02/14/2010 - 05:42 | 230466 umop episdn
umop episdn's picture

Maybe...but this article has been published for nearly five hours without a single bankster troll jumping in and trying to derail this thread. Just watch and wait!

Sun, 02/14/2010 - 07:02 | 230486 Noah Vail
Noah Vail's picture

Its a conspiracy, of course :-)

Sun, 02/14/2010 - 01:54 | 230407 Anonymous
Anonymous's picture

Wiki:

Norman's exact role and responsibility as director of the BIS during the time when ?6,000,000 of Czechoslovak gold held in the Bank of England was transferred to the German Reichsbank in 1939, is yet to be determined.[4]

http://en.wikipedia.org/wiki/Montagu_Norman,_1st_Baron_Norman

Mon, 02/15/2010 - 00:07 | 231151 seadragonconquerer
seadragonconquerer's picture

No. It has been determined. Again, read G. Preparata, Conjuring Hitler.

Sun, 02/14/2010 - 01:55 | 230409 SilverIsKing
SilverIsKing's picture

Must keep an eye on the weekly gold/silver/dollar COT reports.  Commercials seriously reducing their gold & silver short positions the past few weeks.  A very bullish sign.

http://news.goldseek.com/COT/1266006723.php

Sun, 02/14/2010 - 01:58 | 230410 Anonymous
Anonymous's picture

Krugman:
Ben Bernanke, we’re told, is a great admirer of Liaquat Ahamed’s Lords of Finance; so am I. All the more irony, then, that Ben has, without realizing it, turned into Montagu Norman.

http://krugman.blogs.nytimes.com/2009/12/18/the-curse-of-montagu-norman/

Sun, 02/14/2010 - 02:06 | 230413 Gold...Bitches
Gold...Bitches's picture

its a good thing history never repeats itself, right???

Sun, 02/14/2010 - 02:12 | 230415 Anonymous
Anonymous's picture

Another was that of Winston Churchill. A few days before Norman left for Canada on his enforced holiday, Churchill, who had lost most of his savings in the Wall Street crash two years earlier, wrote from Biarritz to his friend and former secretary Eddie Marsh, “Everyone I meet seems vaguely alarmed that something terrible is going to happen financially. . . . I hope we shall hang Montagu Norman if it does. I will certainly turn King’s evidence against him.”

http://rss.msnbc.msn.com/id/29554066/ns/meet_the_press_online_at_msnbc/

Mon, 02/15/2010 - 00:01 | 231150 seadragonconquerer
seadragonconquerer's picture

Churchill? You are talking about the 20th century's original neo-con: worst warmonger, worst bloody imperialist, worst genocide artist, worst Zionist stooge. And for a fact, the same ethnic plutocracy that ran Montagu Norman then went on to bail WC out of his financial difficulties. He paid them back, with interest: WW II.  

Mon, 02/15/2010 - 01:03 | 231182 Molon Labe
Molon Labe's picture

Oh yeah, I remember when the Tommies invaded Austria, Hungary, Czechoslovakia, Poland, France, the Netherlands, etc., to kick off WWII.  Amazing that Churchill was able to pull all that off while he was politically ostracized.  </sarcasm>

I am interested in how you think Churchill caused WWII, if you'd care to share.

Mon, 02/15/2010 - 03:08 | 231212 KevinB
KevinB's picture

+100

From 1939 to 1941, Britain and the Commonwealth held the line while the US dithered. Churchill's "blood, toil, tears, and sweat" may only be second to

we shall fight on the seas and oceans,
we shall fight with growing confidence and growing strength in the air, we shall defend our Island, whatever the cost may be,
we shall fight on the beaches,
we shall fight on the landing grounds,
we shall fight in the fields and in the streets,
we shall fight in the hills;
we shall never surrender, and even if, which I do not for a moment believe, this Island or a large part of it were subjugated and starving, then our Empire beyond the seas, armed and guarded by the British Fleet, would carry on the struggle, until, in God's good time, the New World, with all its power and might, steps forth to the rescue and the liberation of the old."

Sun, 02/14/2010 - 02:25 | 230417 dumpster
dumpster's picture

where are the zit faced kids with there gold experience now.. they blovate about gold ,, disregard it and blow smoke in to the room.

any one folllowing gold for a length of time have known all these things .. gata has been at it for years ,

the suppression of gold ,, the rubin summers strong dollar policy, short selling.. yadda yadda ,  

it is all over for those who care to look..

 

yet the popular pavlovian teaching ranks up there as supreme ...a relic... the keynesian support of the government ,, supplying fiat .. teaching  in every university ,, virtually non stop on F-TV...

endorsed by the top layers of addled brains

sound bites for the masses,, dilusional spuing little homo"lies"  not enough gold , where to sell it... cant eat it .. have sex with it ( a dennenger spit ball) or any other ... lets buy solar energy... pensions would be dumb doing it. lemmings driven by misinformation and not a whit of understanding of austrian economics and wealth preservation.    

Sun, 02/14/2010 - 07:44 | 230496 jeff montanye
jeff montanye's picture

"little homo'lies'"?  elucidate please.

Sun, 02/14/2010 - 14:38 | 230741 A Nanny Moose
A Nanny Moose's picture

I'm going with the benefit of the doubt, and read it to be the Sapiens kind of homos

Sun, 02/14/2010 - 16:11 | 230795 dumpster
dumpster's picture

little homilies ... sort of like quick comebacks on gold based on lies .. standard know nothing quips .. that make the gold basher look stupid .. except to himself  .. but exposes his addled brain lol

 

like you cant eat gold  ,, have sex with it,, and the constant quips homo"lies"  ,, poetic license

Sun, 02/14/2010 - 02:46 | 230419 Number 156
Number 156's picture

We urge readers to read the Garrett paper and to send it to their representatives and senators, with the hope that once it becomes fully clear that formerly reputable Central Bankers openly, repeatedly and in flagrant violation of their charters, engaged in outright market manipulation and data fraud, that the Federal Reserve will finally be audited or abolished, which for all intents and purposes, will end up being the same thing.

Serously now, you really think they don't already know?

Those guys are as crooked as coat hangers.

Sun, 02/14/2010 - 02:52 | 230424 dumpster
dumpster's picture

just follow some of the blogs on zero hedge .. readers and comments that show ignorence in all these matters ,

but like the keynesian pundents even these new revelations will not change their minds .. as they are floating all of them in little purple bubbles ,,

they see problems but do not realize they are the problem

Sun, 02/14/2010 - 07:10 | 230487 Noah Vail
Noah Vail's picture

The only thing the criminal mind thinks about is getting what he wants. Congress does not care what we think and makes a daily habit of giving the people a dose of bullshit along with the middle finger salute.

The only thing power understands and respects is a greater power.

Sun, 02/14/2010 - 17:57 | 230885 WaterWings
WaterWings's picture

Know Fabian Society: know shit

No Fabian Society: no shit

 

Sun, 02/14/2010 - 03:26 | 230432 faustian bargain
faustian bargain's picture

There are probably less than 1/2% of congressmen who know anything of substance about monetary policy.

Sun, 02/14/2010 - 06:40 | 230481 dumpster
dumpster's picture

congress men monetary policy  .. brown bag... make it 20s unmarked  ,, a lesson learned from local state political leap-a- head policy  

Sun, 02/14/2010 - 15:56 | 230801 dumpster
dumpster's picture

as crooked as a dogs hind leg,, as crooked as an 11 dollar bill, as crooked as the tower of pizza,  as crooked as a cow path, as crooked as 

Sun, 02/14/2010 - 16:57 | 230851 Marley
Marley's picture

So crooked that when they die, they're screwed into the ground.

Sun, 02/14/2010 - 17:04 | 230857 MsCreant
MsCreant's picture

So crooked, they screw themselves.

Sun, 02/14/2010 - 17:59 | 230888 WaterWings
WaterWings's picture

You might not believe this, but they're at McMurdo, chasing featherless birds for a new thrill.

Sun, 02/14/2010 - 03:00 | 230427 MrPalladium
MrPalladium's picture

I wonder how long the Government can withstand this kind of criticism?

How long before the jackals return home to defend domestic interests?

Sun, 02/14/2010 - 03:14 | 230430 Number 156
Number 156's picture

Maybe Sheila Bair will make another idiotic rebuttal video. Who knows.

 

Sun, 02/14/2010 - 03:37 | 230434 Anonymous
Anonymous's picture

Anyone who believes anything that comes out of the mouthes of monetary "grand poobahs" is a fool and are the real problem.

Like children meekly submitting to authority, believing in every lie rammed down their gullible, suckling little throats until they grow up to demand more, and more, and bigger, greater lies.

Those who believe in lies deserve their state of servitude. They enjoy ass-rapes and deserve ass-rapes and shall miserably live and die by ass-rapes while we chuckle at their dismay, humiliation, and the grotesqueness of their little, horrid, lie-believing lives.

How can you ever help the multitude who feel their ass on fire, and yet continue, on command, to hold their cheeks WIDE OPEN, and can't ever put 2 + 2 together and figure out that there's a rapist about? Why not continie to punish their cavities until they're all used up?

Mon, 02/15/2010 - 10:34 | 231313 Absinthe Minded
Absinthe Minded's picture

Now I know why you post anonymously.

Sun, 02/14/2010 - 04:49 | 230451 dark pools of soros
dark pools of soros's picture

as they did before. they will outlaw gold as long as they are in power since to not do that will throw themselves out of power..

 

the math, the logic, everything says to stock up on gold but I doubt you would be able to use much of it unless it all goes totally to hell and then other immediate items for survival will be needed well before gold.

between the two - i think silver would be way more usefull but i guess there are those that have a whole lot of wealth to protect.  You might want to diversify into lots of things besides gold.  Expensive, valuable machinery perhaps...  art?  a fully functional laboratory?

 

just sitting on gold just makes you a sitting duck

Sun, 02/14/2010 - 05:29 | 230463 Anonymous
Anonymous's picture

"they will outlaw gold as long as they are in power since to do not that will throw themselves out of power"

You hit the nail on the head.

Sun, 02/14/2010 - 11:19 | 230583 Crime of the Century
Crime of the Century's picture

Hah - good luck with that. You guys are obviously not thinking that one through. Even if they tried - a silly notion in the fiat era - it wouldn't last long, and they know it.

Sun, 02/14/2010 - 12:32 | 230631 dark pools of soros
dark pools of soros's picture

the greeks just outlawed cash deals over $1,500 which also includes gold/silver since I do not know of any credit/debit cards using PM's yet... you want to try to start one?

Sun, 02/14/2010 - 15:44 | 230789 WilliamShatner
WilliamShatner's picture

You realize you're talking about Greece, right?

I mean, Greece..., a country so rife with corruption that nobody pays taxes.

 

 

Sun, 02/14/2010 - 18:19 | 230902 Crime of the Century
Crime of the Century's picture

Yah - go into South Chicago and tell them the Government has made narcotics illegal. They will be shocked I tell ya. Likewise, the black market has ended by decree... All Hail.

Sun, 02/14/2010 - 20:07 | 230976 tpberg7
tpberg7's picture

Indeed,

In Chicago it is illegal to own handguns but this city has more pistols per capita than any in the world.  When they make things illegal in Chicago the money begins to flow!  Al Capone knew this basic concept.

Sun, 02/14/2010 - 23:31 | 231134 perchprism
perchprism's picture

 

I knew an old man in the deepest mountains of East Tennessee (Limestone Cove), who said the day running a still became a capitol offense he'd be setting one up in his back yard. Big bux.

Mon, 02/15/2010 - 13:39 | 231567 Neo of Zion
Neo of Zion's picture

these guys are close (I have no affiliation)

www.goldmoney.com

No plastic yet, but potential for online transactions immediately if there is faith and confidence in their system (oops, that sounds too familiar)

Sun, 02/14/2010 - 16:14 | 230821 dumpster
dumpster's picture

outlaw gold  lol

 

its world wide .. all governments will be buying gold for international trade , 

 

Sun, 02/14/2010 - 23:53 | 231146 Rusty Shorts
Rusty Shorts's picture

Yep.

Mon, 02/15/2010 - 02:47 | 231203 dark pools of soros
dark pools of soros's picture

and what country do YOU run..  everyone here acts like a white 10th grade wannabe gangsta just because you listen to N.W.A. in your Mom's car

Sure THEY will be using gold all they want..  how much of an outlaw are you right now?? since i doubt you'll grow a pair overnight

 

Mon, 02/15/2010 - 15:53 | 231298 Rusty Shorts
Rusty Shorts's picture

dark, I do not run any countries, and not sure what N.W.A. is, and I'm not an outlaw.

I am a Au Mandate for Nexe Consultoria S.L., Andorra. I am currently exporting Au from Ghana, West Africa, to be specific, the AngloGold Ashanti mine in Obuasi, Ghana. I am keenly aware of the demand for Au, especially recently.

Tell you what, here's a couple of my youtube uploads of my travels to Ghana. I will leave you  special message.

http://www.youtube.com/watch?v=CAaOYjHb9K0

http://www.youtube.com/watch?v=nd86EXTIEn0

 

Mon, 02/15/2010 - 11:19 | 231359 Crime of the Century
Crime of the Century's picture

I am going to assume that the above post was a result of fatigue, because that was far below your usual offering. Again, think it through. If the US outlaws private Au ownership because of their own mismanagement, you expect the rest of the world, who OUR Gummint and hedge funds have repeatedly punk'd, to play ball? Au goes through the roof, and our citizens instantly join the world's poorest, as we can only save Monopoly money. Yeah - good plan. We can mow the lawns of (former) Mexican laborers.

Sun, 02/14/2010 - 13:10 | 230655 Stuart
Stuart's picture

Anyone outside their jurisdiction would love it.   The value of their holdings would go through the roof.   Delusional to think an Asian dealer would abide by a US centric law.   Arrogant as hell too.  

Sun, 02/14/2010 - 14:43 | 230751 A Nanny Moose
A Nanny Moose's picture

Given the memories of the last time that happened, they will first have to outlaw guns

Sun, 02/14/2010 - 23:36 | 231135 perchprism
perchprism's picture

 

I don't think gold ownership will ever be outlawed in our lifetimes.  The reason is that it's merely another commodity, not "officially" seen as a money alternative.  By the time folks are conducting trades in gold and silver, it will be too late for the government to be issuing any decrees. 

Sun, 02/14/2010 - 06:41 | 230482 dumpster
dumpster's picture

keep it under your hat..

 

Sun, 02/14/2010 - 07:52 | 230498 jeff montanye
jeff montanye's picture

i realize the survivalist perspective is very strong here and may even be appropriate. however possibly the thing to fear is not literal blood in the streets and gunfire but inappropriate asset allocation.  looking at the '30's as a historical parallel, even if gold is seized prior to allowing a major revaluation in its price, the shares of gold miners captured the revaluation and more. 

Sun, 02/14/2010 - 14:48 | 230754 Molon Labe
Molon Labe's picture

"Inappropriate asset allocation," as you put it, Jeff, or malinvestment, is the defining effect of our government's economic policies.  That is why any correction will be so painful the powers that be are not willing to give it a go.  They are afraid it will cost them everything.  The survival instinct is strong.

Sun, 02/14/2010 - 11:41 | 230598 Anonymous
Anonymous's picture

i think they will ignore gold as they currently do (publicly) now. Anyway Americans own almost none of it so it would be a drop in the bucket. I think an outright deval is more likely, after they "scare" everybody into cash or treasuries of course. Or a direct confiscation of retirement funds or investment funds. The poor people won't complain and their will be many poor people.

Sun, 02/14/2010 - 13:21 | 230666 Anonymous
Anonymous's picture

Have been vaguely following gold and silver since the 70s, since I had a paper route and sometimes would get interesting coins as payment, and about the same time Grandpa gave me a small wooden box of various foreign coins he picked up in France or wherever.

Interesting that a story of GB staggering back on gold is "news" in that context. The thing learned as a paper boy, it was probably a good thing everyone didn't have to pay gold coins for everything needed in life, or things would get a little campy. ANYWAY, silver is best used as ballast it would seem!

If one has a lot of wealth to protect he will quickly find that silver is fairly bulky (nice problem to have) but is probably why gold has been considered more portable. A single $1000 face-value bag of silver coins weighs about 56 pounds avd.

Sun, 02/14/2010 - 15:01 | 230761 trav7777
trav7777's picture

Gold has no materially different function than pieces of art.

In the 1930s, gold was LEGAL tender.  Consequently, the government *could* call in that currency and reissue paper against it.  Gold nowadays is not legal tender except for Eagles and Buffaloes, and perhaps some of the foreign mint coins bearing a face value from the respective sovereigns.

Buy a smelter if you fear this and melt it into jewelry.

The government would not expend effort to seize gold when they can with the click of a mouse grab all the 401ks or pensions.  So if they were to come after gold, what about people who are hoarding platinum or silver or diamonds?  Or artwork?  Or land?

The seizure risk for gold is minimal, whereas for paper accounts it is considerably higher just because of the ease of access to them by the government.

Mon, 02/15/2010 - 02:49 | 231204 MrPalladium
MrPalladium's picture

"The seizure risk for gold is minimal, whereas for paper accounts it is considerably higher just because of the ease of access to them by the government."

True!

The real threat is a personal property tax at state level - as the Feds eliminate all support for State programs. For many years Florida had an "intangibles" tax that was roundly hated. My guess is that it will return with a vengeance, at least on the state level. Physical gold purchased prior to the establishment of an enforcement mechanism is likely to be invisible, but brokerage accounts, 401(k)s and IRAs will be in the crosshairs.

 

Mon, 02/15/2010 - 10:54 | 231327 Absinthe Minded
Absinthe Minded's picture

       " The government would not expend effort to seize gold when they can with the click of a mouse grab all the 401ks or pensions."

This is what scares me, haven't they effectively done that once already by raiding Soc. Sec.? The fact that they were able to do this with nary a peep from the sheeple makes you realize it's a very plausible scenario. Especially when they throw in the,"It's for your own good." argument. The minute this looks even remotely possible I'm cashing out and buying more PM's. Hopefully everybody benefitted from the little dip we had last week, got a little more silver, gold wasn't in the budget. Another valuable possession that may be worth hoarding is reloading equipment, you can have all the lead and brass you want but it ain't worth shit without a reloader. 

Sun, 02/14/2010 - 19:22 | 230948 WaterWings
WaterWings's picture

just sitting on gold just makes you a sitting duck

That's why you don't sit on it - you put in an 8" waterproofed PVC pipe with a handgun, copies of personal documents, "other" necessities, and put it at the bottom of a 4' hole that only you know about.

Sun, 02/14/2010 - 21:21 | 231048 merehuman
merehuman's picture

Water wings, whats your address? LOL

i got a shovel, show me where it is!!

Mon, 02/15/2010 - 00:26 | 231155 WaterWings
WaterWings's picture

Find the exact center of town - ask a local if you can't find it. They'll laugh at you and offer you a drink, but don't be discouraged. Walk due east 7.5 km - biggest tree at the top of the hill. SW side near the rooty side of the base. Big white rock: move it and dig:

http://maps.google.com/maps?q=Baytas,+Akmola,+Kazakhstan&oe=utf-8&rls=or...

Mon, 02/15/2010 - 02:12 | 231194 merehuman
merehuman's picture

thank you water wings. I have always enjoyed your posts. I used a posthole digger, wrapped my small fortune in plastic, dropped it in the hole inserted fence post as well and added the cement. Its now part of a fence. Now i can forget about and go back to being happy. I hate money in all its forms!

Mon, 02/15/2010 - 10:59 | 231339 WaterWings
WaterWings's picture

+1

There sure is something to be said about having a peace of mind in the form of a stash that will stay safe under 99.9% of all circumstances.  

Mon, 02/15/2010 - 10:57 | 231337 Absinthe Minded
Absinthe Minded's picture

Awesome post, whoever goes after it, make sure you've got plenty of sunscreen...and an AK47.

Mon, 02/15/2010 - 11:12 | 231352 WaterWings
WaterWings's picture

Here is more info for the interested. One has to imagine that everything can and will be consfiscated - you must have a Plan "PVC":

http://www.captaindaves.com/guide/cache.htm

http://www.rogueturtle.com/articles/thecache.php

A note about caching all of your weapons: when one feels the need to hide the guns, it is actually time to load them:

Having written all of this, I want to make a point - I don’t like the idea of caching weapons for the reasons most folks will do it.  Freedoms are not given, they are taken. And once possessed, they cannot be taken away while the original owner lives and is willing to kill and die to keep them.  We would be a different nation if those who live here today had not forgotten that lesson of yesterday.

 

http://www.snubnose.info/wordpress/tactics/weapons-cache-101/

Sun, 02/14/2010 - 22:44 | 231113 Anonymous
Anonymous's picture

You've got a long arm, WaterWings.47

Sun, 02/14/2010 - 23:45 | 231144 perchprism
perchprism's picture

 

I made a deposit in the Bank of Gaia last week, and have another coming up this week.  Twenty silver Eagles and 4 x 1/4 oz gold Eagles.  Looks like I'm going to have lots of silver and not enough gold, but I do have a crap load of gold jewelry, 18K and higher.  Gemstones!!  What in the world will gemstones fetch in a Mad Maxian environment. 

Mon, 02/15/2010 - 00:29 | 231163 WaterWings
WaterWings's picture

It always depends on the buyer. Otherwise it's "pearls before swine".

Mon, 02/15/2010 - 01:03 | 231181 Anonymous
Anonymous's picture

Gold and silver are for optimists, brass and lead are for realists.

Mon, 02/15/2010 - 10:55 | 231332 WaterWings
WaterWings's picture

+1

And a pessimist has neither. Just sitting at home without taking action - pitifully hoping their "fifteen minutes" is a winning megabucks lottery ticket or TV show success story. 

Many may jest, "Getting ready for the end of the world? Got MREs, too?" Haha. If I thought the world was really going to end I wouldn't be acquiring items to preserve and lengthen my family's life (idiot!)

Mon, 02/15/2010 - 11:24 | 231364 Crime of the Century
Crime of the Century's picture

And a +1 to you too...

Mon, 02/15/2010 - 09:42 | 231282 Anonymous
Anonymous's picture

Yeah Moron, they are going to outlaw gold because so many people have it, right? Cant you see its been part of their plan for the teeming masses of the world to have possession of small amounts of Gold.

At no time in history has so many nobodies owned gold in the whole world.

The Vietnamese are free to buy gold, the Chinese are free to buy gold, Americans are free to by Gold. Even Iran is encouraging their citizens to buy gold. Germany has gold vending machines. Most of these countries charge no tax on gold purchases. And it is piss easy to travel from country to country with gold paying no customs duties.

Yes Fort Knox is probably empty or filled with Tungsten, but they have made sure that all that gold got spread out across the face of this planet real well in the last 30 or 40 years.

They knew their adventures in fiat fun were going to end one day, and they needed to have another money system ready. A world money system. A world money system that includes GOLD!! Gold owned by the sweaty, dirty masses of the world!

fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com fofoa.blogspot.com

Sun, 02/14/2010 - 04:58 | 230452 Anonymous
Anonymous's picture

Do you really think the sheeple would give a F%(%?
Consider them asleep in front of the TV.

Do you really think Congress would give a F$$)#?
Consider them sold as they are NOT on our side.

However, who will give a F)$)$ is the Department of Home Security as these revelation might be a threat to "internal security".

The National Operations Center of DHS is at the moment watching the web for information to "provide situational awareness" in the event of natural disaster, an "act of terrorism, or other man made disaster."

Soon we will know who "owns" America: the people... or something else.

Sun, 02/14/2010 - 04:59 | 230453 Anonymous
Anonymous's picture

"A large Bank is exactly the place where a vain and shallow person in authority, if he be a man of gravity and method, as such men often are, may do infinite evil in no long time, and before he is detected. If he is lucky enough to begin at a time of expansion in trade, he is nearly sure not to be found out till the time of contraction has arrived, and then very large figures will be required to reckon the evil he has done."

--Walter Bagehot, Lombard Street, VIII.20

Sun, 02/14/2010 - 12:37 | 230634 dark pools of soros
dark pools of soros's picture

music to my ears

Sun, 02/14/2010 - 05:03 | 230454 JimboJammer
JimboJammer's picture

Great  Article  Tyler... Ron  Paul  and  Gata  will  be  glad  to  see  this  news...  This  ties  the  dots  together  on  China  offering  Silver  Bars  to  it  people... We  will  never  know  how  many  tens  of  millions  of  dollars  were  spent  over  the  years  to  short  gold  and  silver...and  keep  the  price  down.... The  Federal Reserve  does  Not  want  Gold  at  $ 15,000. an  oz.   and  Silver  at  $ 510.  an  oz.   The  general  public does not  have  a  clue  about  this  frawd...   Wake  up  america   ... !!   don't  be  a  Sheep.

Sun, 02/14/2010 - 21:39 | 231066 merehuman
merehuman's picture

Jimbo, the awareness of the general public has been conditioned. In fact i see we are a dumbed down people. I hate to admit it.

Very few of us are free in this prison of materiality, lies and illusion. Hell, dont most humans live as if they were nothing but suit wearing bodies?  The greatest truth is found in the quiet of the moment, but who has thew time? Folks sit together at dinner, half of them hanging on a cell phone. Our minds are constantly occupied. Nor are we taught to discipline our attention or imagination.

I think we are screwed up as a species, in our expectations and assumptions. We would rather believe religion than investigate for our selves. Comfort , laziness and the next desire to chase and fulfill.

This monetary problem is only part of a greater storm. Consider how many serious problems the world is having at the same time

global warming/cooling? change for sure

financial imbalances ,lots

pollution, water , air and soil (bees gone!)

resource depletion, minerals to fish  etc.

peak oil

water shortages

galactic alignment (every 25,000 years)

This is our oh shit moment aint it?

Just sayen

Sun, 02/14/2010 - 22:29 | 231107 MsCreant
MsCreant's picture

I like you.

Another merehuman.

Mon, 02/15/2010 - 02:19 | 231196 merehuman
merehuman's picture

Thank you  MsCreant. I like my self also. But my greatest love is for the moment. The eternal now. What saves my butt from going nutty is the ability to tune out the world , step inside myself and generate some good feeling to hum on. Oh yea, the other thing that makes my day..............i dont want.

 

Mon, 02/15/2010 - 11:18 | 231358 Absinthe Minded
Absinthe Minded's picture

MH, you have what most people are searching for, but don't realize it, fulfilment. People think they need that 60" big screen, a new car, the second house at the lake. All just trying to keep up with the Joneses. All we really need is simplicity, step back from it all and see the big picture. We are all just a speck on the face of history, our little age of a few hundred years may have had some great technological advances, but at what cost? I bring my kids to cub scouts and little league baseball and other social gatherings and what I see is a bunch of me first, self absorbed brats...and the kids are almost as bad. That saying," There are no bad children." is absolutely true, they learn all the bad habits from their parents, or lack of supervision and discipline. I'm no perfect parent but I teach my kids respect first and foremost. I'm having what I would say is a perfect morning, a nice fresh cup of coffee and my beagle curled up beside me on the couch. Fulfilment.

Mon, 02/15/2010 - 13:17 | 231539 Sancho Ponzi
Sancho Ponzi's picture

"I bring my kids to cub scouts and little league baseball and other social gatherings and what I see is a bunch of me first, self absorbed brats...and the kids are almost as bad"

Sadly, truer words have never been spoken

Mon, 02/15/2010 - 00:21 | 231158 Rusty Shorts
Rusty Shorts's picture

Just read Kenneth Dreffeyes's book "Beyond Oil". A long time geologist for many of the major oil companies, and now a Professor Emeritus at Princeton University. He pointed out that we passed peak oil in 2008, and we are facing a 90% reduction in oil production by 2019, just 9 short years. Absolutely shocking!!!

Mon, 02/15/2010 - 04:08 | 231222 merehuman
merehuman's picture

This calls for serious life style changes.

Kids, you cant have those toys anymore!!

Mon, 02/15/2010 - 10:46 | 231321 Anonymous
Anonymous's picture

Hmmm.
This despite the fact that according the US Geological
Survey, we have 1000 years of oil (at current useage.)
in the Bakken Oil Shelf. We just have to get to it.

Tue, 02/16/2010 - 07:57 | 232283 Rusty Shorts
Rusty Shorts's picture

 "Production" is the keyword, as in 90% less production.

Sun, 02/14/2010 - 05:11 | 230456 Anonymous
Anonymous's picture

Good Piece Tyler.

Sun, 02/14/2010 - 05:14 | 230457 Anonymous
Anonymous's picture

Cameleon-pur-sang Willem Buiter, "independent" critical economist, who is now on the payroll of a TBTF bank (CITI), gold hater and cheerleader of the manipulators is also mentioned under the references. Apparently he writes something critical :)

Sun, 02/14/2010 - 05:14 | 230458 CombustibleAssets
CombustibleAssets's picture

Good Piece Tyler.

Sun, 02/14/2010 - 05:26 | 230461 JimboJammer
JimboJammer's picture

Tyler ,  at  the  end  of  the  article  you  say  forward  this  to   congress and  senate...  yes  I  agree  ..  China  will  be  angry  about  this  also..  This  kind  of  frawd  can  start  another  Cold  War...  Good  or  Bad..  the  Truth  should  come  out... The  average  guy  should  go  out  and  buy  300 oz.  of  Silver  this  week  ...  what  ... don't  have  the  money..?  Charge  it  on  the  Visa Card...  Buy  more  if  you  can  swing  it... I  wonder  if  the  bars  of  Gold  in  fort  knox  are  solid  gold...?  or   just  fake..

Sun, 02/14/2010 - 05:28 | 230462 pidge
pidge's picture

it's a gift to us geeks who have nothing better to do on a Sat night

Sun, 02/14/2010 - 05:31 | 230464 Anonymous
Anonymous's picture

Open the doors of Fort Knox and you will know immediately what the story is.

Sun, 02/14/2010 - 05:43 | 230468 dark pools of soros
dark pools of soros's picture

ok this was published 15 years ago but all of a sudden this is going to piss off China?? 

 

they know what's been going on - but it doesn't mean they can just turn the tables overnight without massive fallout...  you have to expect them to gracefully exit so as to have firm footing when they get out from the sinking ship

Sun, 02/14/2010 - 05:59 | 230472 faustian bargain
faustian bargain's picture

I think so too...they'll try to extract as much out of the US as possible before fully disengaging. I think the recent story about the directive to get out of non-gov-backed US assets (whether it was just a rumor or not) is part of that.

Sun, 02/14/2010 - 06:39 | 230477 i.knoknot
i.knoknot's picture

ditto. even more so, i think they're getting along better than we think.

i can easily imagine the front room posturing with the backroom winks.

how better to transfer billions without formal receipts, than to control a market like gold and leak a tidbit or two of timely information to your friends or blackmailers..., right before you move that market...

there are no accidents. we just need to figure out when they choose to 'transfer' and hang on for the ride. but... not all of us can, or it won't work. art - not science.

the big implication for me, if indeed this is true, is that it's the motion that's important, not the price. other than to diffuse suspicion, the price can be most anything.

you ever feel like you're a mouse at the mercy of a frisky, but not so hungry kitty?

Sun, 02/14/2010 - 11:10 | 230578 Madcow
Madcow's picture

This is not some big secret - everyone knows this is what has been going on for decades. 

It serves the interests of big governments and bankers - so don't expect anything to change - provided these manipulations are sustainable. 

Obviously, China suspects it is NOT sustainable, and is committed to slow and steady and unrelenting accumulation of physical gold, silver, oil ... While playing along with the manipulation. 

Yes, 1000 claims (paper gold) have been sold for every real ounce of physical.  But if they can continue to manufacture credit and expand the supply of paper gold - by expanding the power and leverage of the bullion banks, then this can go on for years. 

Western governments do NOT want to see JPM, GS, etc go up in flames trying to cover their shorts. The short position in gold IS the money supply.  

Sun, 02/14/2010 - 12:46 | 230645 dark pools of soros
dark pools of soros's picture

"The short position in gold IS the money supply."

that makes it sound like ol Uncle Sam is wearing out his welcome at the pawn shops

Mon, 02/15/2010 - 09:55 | 231291 Anonymous
Anonymous's picture

Short Paper Gold on all Cartel take downs, and buy physical with the profits.

Trade of the century!

Sun, 02/14/2010 - 10:53 | 230569 acrneer (not verified)
acrneer's picture

The Big One is coming soon, bigger than the 2000 dot-com crash and the 2008 subprime credit meltdown combined. A huge market blowout.The Big Crash is Coming...."debt bomb" Explosion

Sun, 02/14/2010 - 13:10 | 230654 BobPaulson
BobPaulson's picture

Go away.

Sun, 02/14/2010 - 21:46 | 231071 merehuman
merehuman's picture

arcneer , go fish in another pond. You are coming on like a used car saleman to a pay in cash crowd.

Mon, 02/15/2010 - 11:26 | 231367 Absinthe Minded
Absinthe Minded's picture

Go play in the Yahoo Sports comments section along with the " check out www.richmenwithbigd**ks.com" crowd. Spam Queen

Sun, 02/14/2010 - 05:49 | 230469 George the baby...
George the baby crusher's picture

It won't change anything.  But nice work by Garret.

Sun, 02/14/2010 - 07:21 | 230489 A Broken Bear
A Broken Bear's picture

Brilliant Article.

Sun, 02/14/2010 - 08:04 | 230499 BennyBoy
BennyBoy's picture

I'm sure NY FED president Dudley is fully capable of being as secretive as past NY FED presidents.

And auditing the FED will never happen. We just print the money needed to bribe congress, which isn't that much.

Saving the PIIGS will be another shining example of, er, secret FED backdoor bailouts.

In reality the head of the FED is subordinate to the head of the NY FED.

Would you like cream in your coffee, Mr. Dudley?

 

Here's a picture of Blankfein (Mr. Squid to you) and me.

http://art.ngfiles.com/medium_views/64/tieseit_siamese-octopus-creature.png

Sun, 02/14/2010 - 08:41 | 230512 Internet Tough Guy
Internet Tough Guy's picture

The lies and schemes of the Fed will come to the same sad end as the lies and schemes of Englands' bankers. The truth will out. Let Bernanke and the rest have their ignoble place in history.

Sun, 02/14/2010 - 08:58 | 230520 Catullus
Catullus's picture

Murray Rothbard touched on the same topic in America's Great Depression Chapter 10 "1931 -- The Tragic Year". http://mises.org/rothbard/agd/chapter10.asp

Although we must confine our interest in this work to the United States, we may pause a moment, in view of its international importance, and consider the shabby actions of Great Britain in this crisis.Great Britain—the government that induced Europe to go onto the treacherous shoals of the gold bullion and gold-exchange standard during the 1920s, that induced the United States government to inflate with disastrous consequences, that induced Germany to inflate through foreign investment, that tried to establish sterling as the world's premier currency—surrendered and went off the gold standard without a fight.

 

...

 

Throughout the crisis of 1931, the Bank of England kept its discount rate very low, never going above 4 percent, and in fact, inflated its deposits in order to offset gold losses abroad. In former financial crises, the bank rate would have gone to 10 percent much earlier in the proceedings, and the money supply would have been contracted, not expanded. The bank accepted loans of $650 million from the Federal Reserve Banks and the Bank of France; and the Bank of France, forced against its better judgment by the French Government, kept its accounts in sterling and did not ask for redemption in gold. And then, on September 20, Britain went coolly off the gold standard, inflicting great losses on France, throwing the world into monetary chaos, and disrupting world markets. It is a final measure of the character of Governor Montagu Norman that only two days before the repudiation, he gave Doctor Vissering, head of the Netherlands Bank, unqualified assurance that Britain would remain on the gold standard and that therefore it was safe for the Netherlands to keep its accounts in sterling. If the Netherlands was tricked, it is possible that Montagu Norman's fast friends in the United States were informed in advance. For in the summer of 1931, Governor Norman visited Quebec, for "health" reasons, and saw Governor Harrison of the New York Federal Reserve Bank. It was shortly after Norman's return to England that Great Britain went off the gold standard.[2]

 

Under this scenario and Garret's above, the common Moneterist line that the Great Depression was caused by deflation is just simply incorrect.  Inflating gold receipts without an increase in gold holdings is inflation.  When people realize those gold receipts are worthless is not deflation, it's a complete change in the monetary system.   Once the British went off the gold-exchange standard, confidence in US banking eroded as well.  Americans began demanding payment in specie form on a massive level even adjusting for the seasonality at the time. This has been the tragic misinterpretation by Schwartz and Friedman for decades: it's not deflation, it's total loss in confidence in the money. 

Sun, 02/14/2010 - 15:41 | 230786 MsCreant
MsCreant's picture

I'm listening and interested.

How did this loss of confidence manifest in the regular economy if the average citizen did not understand these issues? The price of farms deflated. Ditto houses.  There was massive deleveraging as all those who had over borrowed to be in the stock market "getting rich" had to liquidate. Businesses went bust, unemployment went up.

That is this common woman's understanding. How did what you are positing here (lack of faith of currency between governments), manifest as those things?

I bet it is obvious and I will be embarrassed I asked.

Sun, 02/14/2010 - 21:56 | 231077 merehuman
merehuman's picture

I could not refer to you as common.From all youve writ so far you display a grasp of issues many of us common folk are unaware of.

As a perpetual hobo i have seen all sides giving me room to compare. LOL

disclaimer i dont usually kiss butt but you deserved it

Sun, 02/14/2010 - 22:35 | 231110 MsCreant
MsCreant's picture

That's funny, I just kissed butt above, to you at your post, before I saw this post! What a scream. This blog is my university and I do exploit it for what I can, where they let me...

I have now seen this poster's logic in three places today on the blog, so I really am motivated to see if I get an answer to this post. I am not making the hook up between the currency crisis described here (which would result in hyperinflation, typically) and how it articulates into the economy the way 1929-32 has been described (deflation) to me.

Mon, 02/15/2010 - 02:25 | 231197 merehuman
merehuman's picture

Confidence in the currency is more important to those who play large. Us little folk dont know from confidence as we are fools and fooled. But when the large players lose confidence, as is happening now...

Thats my understanding from the read above.

Sun, 02/14/2010 - 22:27 | 231106 artcash (not verified)
Sun, 02/14/2010 - 09:02 | 230524 MarketTruth
MarketTruth's picture

The Fed's balance sheets already is worse than a broken hedge fund. And yes, it is time for HR1207/S604 to pass and a full and complete audit of the Federal Reserve including an audit of weight, measure and fitness of their gold holdings.

Are you there yet?

 

Are you ready to finally pull out all your funds from banks and Wall Street?

 

Sell off all stocks/trades?

 

Perhaps even go on a labor strike with your co-workers and picket your State government?

 

Or are you just sitting there like a good sheeple?

 

GOLD BITCHES!!!

 

Sun, 02/14/2010 - 10:30 | 230559 acrneer (not verified)
Mon, 02/15/2010 - 02:34 | 231199 merehuman
merehuman's picture

This little sheeple went to market and gave a silver to a stranger. And announced to each person he met during the day what condition our condition is in because he promised to himself he would do so. So far over 20 oz invested in perfect strangers, some of whom will investigate the websites i gave them. Some will now become savers as i did when i first bought silver. Until then money never found a home in my pocket.

 

 

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