• Sprott Money
    04/29/2016 - 05:58
    There is unfortunately no basis for renewed optimism that this current litigation will have any meaningful impact on precious metals manipulation – with respect to either silver or gold.

Guest Post: The Breakdown Draws Near

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Tue, 04/19/2011 - 12:55 | 1184568 samsara
samsara's picture

Yes it does.

Tue, 04/19/2011 - 13:04 | 1184615 CPL
CPL's picture

Exponential debt!  Exponential debt for everyone!!

Tue, 04/19/2011 - 13:05 | 1184634 Ahmeexnal
Ahmeexnal's picture

Spaniards look down on the chinese with contempt.

Yet they are praying for the chinese to save them.

 

China should show them the middle finger.

Tue, 04/19/2011 - 13:09 | 1184659 CPL
CPL's picture

Yup, they should.  But I have yet to be impressed by the Middle Kingdom.  I'm not sure how the country is still standing with their primary customers on the ropes.  I'm positive they are just as broke as everyone else.

If it were announced tommorrow China was flat broke, busted with a triple Z credit rating I doubt many would be that surprised.

Tue, 04/19/2011 - 13:39 | 1184804 DoChenRollingBearing
DoChenRollingBearing's picture

I completely agree re China.  They havee a loooooonnnnggg history of messing up when on the cusp of greatness.

Gold, silver, lead (& lead delivery devices), medical goods, food & water...

Electrons and paper are not good places to be folks.

Tue, 04/19/2011 - 14:11 | 1184922 Population Bubble
Population Bubble's picture

Unfortunately, when everyone goes broke and there are so many moths to feed on so few resources, the only option the world is likely to see is fighting.

Tue, 04/19/2011 - 14:29 | 1184993 akak
akak's picture

Just how many moths are we talking about here?

Tue, 04/19/2011 - 14:35 | 1185030 LFMayor
LFMayor's picture

all ur wool sweaters are belong to us now.  make ur time.

Tue, 04/19/2011 - 14:39 | 1185034 j0nx
j0nx's picture

A few trillion would do it. They are nasty little buggers when there is light around.

Tue, 04/19/2011 - 14:39 | 1185036 kridkrid
kridkrid's picture

Exactly... I'll be damned if a moth ever takes food from me.  thought my daughter loves butterflies... and to be honest, I've got a bit of a soft-spot.

Tue, 04/19/2011 - 17:45 | 1185836 OldTrooper
OldTrooper's picture

Maybe these are the moths he's thinking of:

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

Tue, 04/19/2011 - 14:19 | 1184951 narapoiddyslexia
narapoiddyslexia's picture

They have a long history of being messed up by others, you mean. A la the Opium Wars. I know someone who recently returned from a trip to the Middle Kingdom. They indicated apparent wealth was everywhere they turned, at least among all the people they visited. People are buying gold as fast as they can, in 10-ounce lots [the minimum allowed], and would buy silver but NONE IS AVAILABLE. Sorry. Didn't mean to shout. Just slipped out. Chinese banks are selling every sliver of silver they can find, and are making silver sales for delivery months out. China has become a black hole for silver. It will be interesting to see next month's import figures for silver, into China. I will wager it will be another record number. I'm also beginning to suspect that there are a number of attitude massagers on this site who are actually Chicom psyops trying to talk folks into selling silver because there is a "big correction" on the way. Mmmmm.... we'll see. 

Tue, 04/19/2011 - 15:13 | 1185161 narapoiddyslexia
narapoiddyslexia's picture

Kitco just posted silver as bid at $43.99 per ounce.

Tue, 04/19/2011 - 18:33 | 1185969 Moe Howard
Moe Howard's picture

You do understand that 10 TOZ cost $14,000 FRN $100 ago. Yep, I'm sure everyone in China is running around purchasing $14K as fast as they can. Right. Do you even have any concept of how poor the average Chinese is?

I am sure there are rich people in China purchasing gold, and some in large quantities. After all, somebody is selling the poison Sheetrock, milk, toys etc. Somebody is making money. Everybody? Please, try to contain yourself.

Tue, 04/19/2011 - 17:49 | 1185867 Mad Cow
Mad Cow's picture

Just curious, when was the last time the People's Republic of China on the cusp of greatness?

Tue, 04/19/2011 - 18:41 | 1185988 Moe Howard
Moe Howard's picture

It was back in the day. I had to walk twenty miles in the snow to school and back, it was all uphill. Both ways.

Tue, 04/19/2011 - 18:48 | 1186002 Arkadaba
Arkadaba's picture

I guess you went to the same school as my mother - lol

Tue, 04/19/2011 - 19:11 | 1186085 Moe Howard
Moe Howard's picture

Exactly.

Tue, 04/19/2011 - 18:44 | 1185990 Confuchius
Confuchius's picture

@mad cow

It may depend.

Greatness is in the eye of the beholder.

The middle kingdom is four thousand six hundred years old, as is Afghanistan and also Persia (Iran).

And how old, exactly, is the pathetic criminal enterprise you call amerika?

Answer, round eye!

Tue, 04/19/2011 - 18:55 | 1186020 Mad Cow
Mad Cow's picture

Oh I'm sorry, I assumed the guy I replied to was talking about China as a country, as in the PRC, and not a race of people. So when you talk about "Amerika" I see you're referring to "round eye." I get it now. Thanks for not answering my question though.

Tue, 04/19/2011 - 13:26 | 1184730 kaiten
kaiten's picture

Americans look down on the chinese with contempt.

Yet they are praying for the chinese to save them.

 

China should show them the middle finger.

 

Fixed that for you.

Tue, 04/19/2011 - 14:19 | 1184943 TruthInSunshine
TruthInSunshine's picture

Every market crash begins with tech & high flying tech. NASDAQ typically implodes at the speed of light, dragging other indexes down the black hole.

Apple just sounded the alarms with not only a 'whisper' of weak iPad sales, but 'extremely weak' ones at that. The whisper is that iPad sales could have missed by as much as 50% -

iPad is food now, as an inflationary substitute, so this is even more worrisome than it typically would be.


  • Apple May Have Just Pre-Announced Extremely Weak iPad Shipments (AAPL)
  • Tue, 04/19/2011 - 14:28 | 1184992 SheepDog-One
    SheepDog-One's picture

    With enough chocolate hardshell sauce, everything is edible!

    Tue, 04/19/2011 - 15:11 | 1185163 primalplasma
    primalplasma's picture

    Apple released the iPad 2 too early. The first version came out only a year ago, and I'm still happy with my iPad 1. Why would I pay $600 for a small upgrade?

    Also, I'm too smart to spend large amounts of money on useless electronics now. There are more important things in life, like pure water, food that is not radioactive, and silver.

    Tue, 04/19/2011 - 18:40 | 1185979 Moe Howard
    Moe Howard's picture

    All the surplus electronic gear resellers are loaded with iPad 1s and other 'last gen' new Apple gear. Smells like new pushed out old before old was sold. Could lead to more suicides at Foxconn right after they get done purchasing 10 TOZ lots of Gold, as much as they can find.

    Tue, 04/19/2011 - 14:19 | 1184958 cossack55
    cossack55's picture

    Good fix.

    Tue, 04/19/2011 - 14:37 | 1185028 Chump
    Chump's picture

    Cept 'Merica has enough guns to blow that little brown finger right the fuck off.  Spain, not so much.

    Tue, 04/19/2011 - 18:45 | 1185991 Dr. Porkchop
    Dr. Porkchop's picture

    If they give them the middle finger, they would pass up a chance to enslave a European nation. It doesn't matter that you're just as broke as your slave, if nobody says anything. Remember the immortal words of George Costanza; It's not a lie, if you believe it.

     

     

    Tue, 04/19/2011 - 13:00 | 1184583 TruthInSunshine
    TruthInSunshine's picture

    Gold & Reactor One in Meltup mode:

    http://www.fairewinds.com/

     

    It always comes back to the 'elements.'

    Tue, 04/19/2011 - 14:07 | 1184902 velobabe
    velobabe's picture

    iodine falling from the sky, #4. like ben's bucks. just falling out of the sky, gravity is a bitch†

    Tue, 04/19/2011 - 12:58 | 1184589 topcallingtroll
    topcallingtroll's picture

    I am counting on a deflationary scare in the next couple of months.

    Tue, 04/19/2011 - 13:00 | 1184609 Johnny Lawrence
    Johnny Lawrence's picture

    I agree with you.  The equity market collapsing will take care of a lot of these inflation issues.  Speculative money is going to run for the hills.

    Tue, 04/19/2011 - 13:06 | 1184639 CPL
    CPL's picture

    Or just vaporize entirely, trouble with speculation plays is they always involve leverage against the assets of the holder.  Any leverage used in a trade play is always promised a leveraged decay bite.

     

    Speculators as the MSM frame them aren't taking their capital holdings against the market, they are more likely taking the capital plus the credit plus the interest against the market.  Throw in things like exchange rates and it's a great recipe to flatten the books of guys like JPM and GS to zero and negatives pretty quickly.

    Tue, 04/19/2011 - 13:09 | 1184657 Robot Traders Mom
    Robot Traders Mom's picture

    Deflation is a low amount of money chasing too many goods. That is not the scenario we are facing. If speculators run for the hills, where are they going to go? Cash? Treasuries?

    The next collapse will take money markets and treasuries down with it. Look what happened yesterday when the market opened down 200. Treasuries DID NOT rally this time.

    I get sick of hearing this deflation argument. When the Fed talks about being worried about deflation, they are talking about one thing-HOUSING. So yes, in the housing market, there is a low amount of money available and too many houses (supply). The Fed is not talking about food, gas, clothing, precious metals, etc.

    Deflation is a bad word for banks. Not us.

    Tue, 04/19/2011 - 13:12 | 1184664 CPL
    CPL's picture

    Yup...glut of practically everything, including people.

    Tue, 04/19/2011 - 14:20 | 1184954 JW n FL
    JW n FL's picture

    http://www.youtube.com/watch?v=ClqUcScwnn8

    David Rockefeller speaks about population control.

    Tue, 04/19/2011 - 19:19 | 1186127 DosZap
    DosZap's picture

    Another super rich SOB, talking population control.

    I vote, he like all other Left Wing Liberal pond scum, raise their hand FIRST, to volunteer to check out.

    Then, come and talk about population control.

    These frigging Progressive Socialist assholes have killed this country.

    Yet, they get to make the rules on who gets to live ?

    My Ass. I vote him first.

    Eugenics loving biatch.

    Tue, 04/19/2011 - 19:39 | 1186191 Dr. Acula
    Dr. Acula's picture

    There is no need to explicitly declare who should live or die. That would be very crude and offensive.

    Socialism will kill people at the margin, whether they are disposed of via starvation, disease, or other means. Iatrogenic causes of death befall untold numbers in our socialized hospitals. Our socialist roads kill people every day.

    Socialism kills in a way that is hard for the ignorant to discern. Policies that are ostensibly good for "society" can be harmful to individuals. People are not born knowing how to theorize about human action. Policies that sound good in theory can lead to warped incentives and disastrous outcomes.

    So if you really want to murder more people, and not be detected or blamed, it is sufficient to just increase the level of socialism.

     

    Wed, 04/20/2011 - 07:12 | 1187339 Bitch Tits
    Bitch Tits's picture

    "So if you really want to murder more people, and not be detected or blamed, it is sufficient to just increase the level of socialism."

    I disagree. Capitalism will murder more people. Capitalism concentrates wealth at the top, forcing productive labor to work for less and less money, eventually destroying both the labor force and consumerism.

    Capitalism is the parasite that kills the host.

    Tue, 04/19/2011 - 14:35 | 1185029 Shock and Aweful
    Shock and Aweful's picture

    Very well said...

     

    We are most certainly overpopulated...

     

    We had better figure out a way to fix the problem of too many people on the planet voluntarily....or we will have a solution forced upon us    (call it...."nature's austerity plan")

    Seriously....6 or 7 or 8 or 9 billion people living on this planet as FARMERS woudl be one thing...but having that many wanting to drive cars, and have electric and live the glamourous lives of a "consumer"  is not only non-sustainable...it is completely assinine.  

    Our entire economic model that we live under DEMANDS perpetual, endless and infinte growth....but we live on a FINITE planet.  Right?

    I read somewhere that we will have approx 9 billion people on this planet around 2050.  (Humans cannot understand exponential growth...but it is happening as we speak...in both our population and out debt!!) 

     

    Although our economic problems are going to be very trying and will most likely cause much strife and turmoil on the earth...The real problems are coming ....most do not seen them yet...but rest assured...they will be here sooner rather than later.  

    Tue, 04/19/2011 - 14:40 | 1185047 LFMayor
    LFMayor's picture

    relax... it's self-correcting.  water seeks it's own level.  Or, if you prefer "Go back in there, chill them niggaz out and wait for the Wolf who should be coming directly".

    Tue, 04/19/2011 - 15:01 | 1185069 Shell Game
    Shell Game's picture

    Nonsense. This is exactly the control-freak globalist's sentiment and the excuse behind their God-complex.  You said one thing that is absolutely spot on:

    Our entire economic model that we live under DEMANDS perpetual, endless and infinte growth....but we live on a FINITE planet.

    One of two choices here, buddy.  Abet the control freaks, OOOOOOOOR, change the freaking economic model:  the Growth for Shareholders dogma must and will end.  Put farming back in the hands of the people, ending corporate mega-farms.  Sustainability (food and energy) MUST be taken out of the hands of the elite.

    Tue, 04/19/2011 - 15:59 | 1185449 zaknick
    zaknick's picture

    Bravo!

    "finance", energy and food are controlled by same banksters. They just don't want civilization to grow free of their tentacles.

    Drug trafficking banksters own the "federal reserve" dollar, bitchez!

    Tue, 04/19/2011 - 19:48 | 1186227 Dr. Acula
    Dr. Acula's picture

    "the Growth for Shareholders dogma must and will end."

    If growth for shareholders ceases, then shareholders have no reason to invest. Shareholders will divest themselves of the factors of production. There will be no shareholders. There will be no companies and no accumulated capital. Having no reason to keep capital, we will consume it. We will go back to living in caves and picking berries like our ancestors. 6.9 billion people shall die.

    "Put farming back in the hands of the people, ending corporate mega-farms."

    If you think you can do a better job of farming and you deserve the responsibility of owning the farms, then prove it. Compete with the "elites" on the free market and prove your worth. If consumers prefer your products, you will be rewarded with financial gains. If consumers dislike your products, you will be punished with financial losses.

    Tue, 04/19/2011 - 20:24 | 1186257 Shell Game
    Shell Game's picture

    If you think you can do a better job of farming and you deserve the responsibility of owning the farms, then prove it.

    Remember circa 1950's, when the U.S. alone produced enough food to feed the world's population?  No small task.....and no corporate cornering of the food production market. This feat was accomplished by the private farming sector - which should particularly tickle your inner Ayn Rand. 

     

    re: growth... What has growth been?  Think about it in terms of years of tour de force reserve currency and how that forced 'unnatural, unsustainable' growth, and shipped countless jobs overseas.  THAT is the growth paradigm I'm talking about that needs ending - I would have thought it was rather apparent to most people..

    Tue, 04/19/2011 - 19:57 | 1186262 akak
    akak's picture

    If you think you can do a better job of farming and you deserve the responsibility of owning the farms, then prove it. Compete with the "elites" on the free market and prove your worth. If consumers prefer your products, you will be rewarded with financial gains. If consumers dislike your products, you will be punished with financial losses.

    You glibly ignore the vast bureaucratic and regulatory impediments increasingly placed on ANY small business in the USA today, particularly in the field of agriculture, and the vast subsidies, tax breaks, etc. which the mega-corporations use hand-in-hand with the power of the federal goverment to drive out competition and entrench their corporate allies in a blatantly fascistic system.  Go to Hell with your disingenuous nostrums and platitudes about "free and fair competition"!

    Tue, 04/19/2011 - 16:12 | 1185486 Dr. Acula
    Dr. Acula's picture

    >We are most certainly overpopulated...

    Nonsense! Earth is grossly underpopulated! Massive amounts of land and space and resources sit unused. Machines sit idly all the time. The Earth captures a negligible percentage of the vast energy the sun continuously throws out into emtpy space. There are far too few people, and far too many wasted opportunities for transforming the material factors of production.

    >We had better figure out a way to fix the problem

    Who is "we"? Are you a socialist? If you can't afford children, don't have them. And if your life is so bad due to "overpopulation", then end it. The fact is that people living in the most populated cities are the wealthiest (no doubt due to the increased division of labor) and healthiest (best access to medical care).

    >or we will have a solution forced upon us    (call it...."nature's austerity plan")

    So which group of people should be murdered first?

    >have electric and live the glamourous lives of a "consumer"  is not only non-sustainable...it is completely assinine.  

    "Non-sustainable" - really? Which part isn't sustainable? If we are running out of some irreplaceable resource, then feel free to put your money where your mouth is and buy futures, to help raise the price and preserve that precious resource. Otherwise you are just spewing BS. The fact is that many resources move in lockstep with gold, for example the oil/gold ratio has been stable for decades, and we don't appear to be running out of anything.

    And "assinine" is just your subjective opinion. Feel free to live as a Luddite if you wish.

    >we live on a FINITE planet.  Right?

    No. There is no known physical limit on how beautiful the music or artwork someone creates can be, or how delicious the food that some produces can be, or how cleverly designed a CPU circuit can be, or how inspiring church services can be. And ALL of these are economic goods.

    Tue, 04/19/2011 - 16:22 | 1185523 akak
    akak's picture

    I shake my head at your blinkered ignorance.

    The field of economics does not recognize physical limits to growth --- reality, however, is another story.

    It is commonly accepted by most ecologists that the long-term carrying capacity of the Earth is probably between one and two billion people.  As much as you will vainly try to deny it, there ARE physical limits to growth, such as depleting topsoil which takes many centuries or millenia to renew, for just one example.  Sure, you might hypothetically be able to cram ten or twenty billion people on the earth --- but how are you going to FEED that many, long term?  Simple: you aren't.

    And of course, there is Peak Oil as another example of a physical limit to endless economic growth.

    If you do not believe that there are or can be physical limits to growth, just go ask the Classical Maya, or the Cahokians, or the Nabateans.

    Tue, 04/19/2011 - 16:56 | 1185577 Dr. Acula
    Dr. Acula's picture

    >It is commonly accepted by most ecologists that the long-term carrying capacity of the Earth is probably between one and two billion people.

    Whatever Malthus, the 1700's are calling, they want their theories back. Unfortunately for the ecologists, people do not root around in the dirt like animals but instead create things like fusion reactors and the Internet and they travel to the moon.

    >depleting topsoil which takes many centuries or millenia to renew

    More like a decade. 'Twas the Dirty Thirties, not the Dirty 1900's. But since you want to talk about physics, note that the atoms depleted from the topsoil do not vanish from the Earth, but rather remain on it. And since you are worried about precious topsoil, how many futures have you purchased? How much profit have you made preserving this scarce resource, dirt?

    The wise farmer concerned with the long-term value of his estate and whose property rights are intact will not let his topsoil be so damaged but will let fields go fallow. Farm owners who cannot do this will fail and will be put in a position where they can't hurt any one with their bad decisions.

    Tue, 04/19/2011 - 17:00 | 1185697 akak
    akak's picture

    The wise farmer concerned with the long-term value of his estate and whose property rights are intact will not let his topsoil be so damaged but will let fields go fallow.

    The wise family farmer has been replaced by the mega-agro-corporation which has a short-term focus and is much more motivated by short-term profits than Farmer Brown of a century ago.  Government backstops will tend to do that.

    And to even suggest that topsoil replenishment rates --- I'm not talking fertility here, but the actual physical topsoil --- is only a decade is to just demonstrate your profound ignorance of basic ecology.

    You conveniently neglected to address Peak Oil --- or do you believe that the earth contains within it a wormhole to a parellel dimension where space-time consists of aliphatic hydrocarbons?

    And what about those Mayans, and Nabateans, and Cahokians, or Great Zimbabweans?

    Finally, for those center-thinkers who refuse to remain blind to the physical limits to growth, I have the final damning example:  Easter Island.  Go refute THAT with your blinkered economics of no limits!

    Do NOT follow this link or you will be banned from the site!