Search This Blog

Tuesday, September 30, 2014

Why Gold Prices Are Dramatically Lower than 24 Months Ago..

Today we're going to talk about Gold..

As of Monday afternoon's close, the commodity was trading at $1,216.98/oz.

On Dec 20, 2013, it closed at $1,203.70 which means in a little over 9 months, even with all the little ups and downs, the value of one ounce of gold ultimately has risen a mere $13

Now if you wanted to compare with a year ago, specifically Sept. 27, 2013 when gold closed at $1,339.20, its value has dropped by $130 or thereabouts..

So why is this?
How is a commodity that at one time was trading at $1,794.10 just two years ago (specifically Oct. 4, 2012) dropped about $580 per ounce

One word..   Manipulation

More broadly explained:

The Federal Reserve (with the Government's blessing) rigs the gold market and devalues its price so not to cause a dramatic devaluation of the trillions upon trillions of paper money via QE its created out of thin air to buttress and bolster the stock market

What exactly do we mean?
OK, this is a super-complex subject and we'll try our damnedest to simplify but we make no promises all our readers will grasp what we're explaining..   All we can do is get the info out there..

The Federal Reserve and its bullion bank agents (JP Morgan, Scotia, and HSBC) have been using naked short-selling to drive down the price of gold since September 2011.

Naked short selling in stock market language is is the practice of short-selling a tradeable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale.
The Fed and its agents rig the gold price in the New York Comex futures (paper gold) market.

The bullion banks have the ability to print an unlimited supply of gold contracts which are sold in large volumes at times when Comex activity is light.

Generally, on the other side of the trade the buyers of contracts are large hedge funds and other speculators, who use the contracts to speculate on the direction of the gold price.

With us so far?  Just do your best..
Now, the hedge funds and speculators have no interest in acquiring physical gold and prefer to settle their bets in cash, which makes it possible for the bullion banks to sell claims to gold that they cannot back with physical metal.

Contracts sold without underlying gold to back them are called “uncovered contracts” or “naked shorts.”

It is illegal to engage in naked shorting in the stock and bond markets, but it is permitted in the gold futures market.
The fact that the price of gold is determined in a futures market in which paper claims to gold are traded merely to speculate on price means that the Fed and its bank agents can suppress the price of gold even though demand for physical gold is rising. 

Still with us?  Good..  This is important stuff..

If there were strict requirements that gold shorts could not be naked and had to be backed by the seller’s possession of physical gold represented by the futures contract, the Federal Reserve and its agents would be unable to control the price of gold, and the gold price would be much higher than it is now.
The bullion banks do not have nearly enough gold in their possession to make deliveries to the buyers if the buyers decided to stand for delivery per the terms of the paper gold contract.

The reason this scheme works is because the majority of the buyers of the contracts are speculators, not gold purchasers, and never demand delivery of the gold. Instead, they settle the contracts in cash. 

They are looking for short-term trading profits, not for a gold hedge against currency inflation.

What is occurring is nothing short of insider trading.
We're almost done.. You're doing a great job following..

The bullion banks that short the gold market are clearing members of the Comex/NYMEX/CME.

In that role, the bullion banks have access to the computer system used to clear and settle trades, which means that the bullion banks have access to all the trading positions, including those of the hedge funds.
When the hedge funds are in the deepest, the bullion banks dump naked shorts on the Comex, driving down the futures price, which triggers selling from stop-loss orders and margin calls that drive the price down further. 

Then the bullion banks buy the contracts at a lower price than they sold and pocket the difference, simultaneously serving the Fed by protecting the dollar from the Fed’s loose monetary policy by lowering the gold price and preventing the concern that a rising gold price would bring to the dollar.

Insidious isn't it?
Gold isn't just a tangible asset that governments can not create out of thin air to keep their decayed economies going..

It serves as a warning; a 'canary in a coal-mine' of sorts for aware people that financial and economic trouble are brewing.

For example, between the tech bubble collapse (January 2000) until just before the collapse of Bear Stearns triggered the Great Financial Crisis (March 2008), gold rose in value from $250 to $1020 per ounce, or just over 400%.

Moreover, in the period since the Great Financial Collapse, gold has risen 61% despite claims that the financial system was repaired.
It was up as much as 225% (September 2011) before the Fed began the systematic take-down and containment of gold in order to protect the dollar from the massive creation of new dollars required by Quantitative Easing.

The US economy and financial system are in worse condition than the Fed and Treasury claim and the corrupt corporatist financial media reports.

Both public and private debt burdens are high, and corporations are borrowing from banks in order to buy back their own stocks.

This leaves corporations with new debt but without income streams from new investments with which to service the debt.
In addition, the recent release of the 2013 Income and Poverty report shows that real median household income has declined to the level in 1994 two decades ago and is actually lower than in the late 1960s and early 1970s.

So in summary, the combination of high debt and decline in real income means that there is no engine to drive the economy, and you have a continued meaningless tag-line called 'Recovery' doused in the putrid stench of 'Hope'

And with home re-sale prices under $1million as stagnant as salaries and now a manipulated gold market, its harder and harder for tens upon tens of millions of Americans to make it..

Just the way the 1% want it..
~ Yeah right Mr Bullshit.. um.. Buffett..

Sunday, September 28, 2014

"Guns n' Butter" or Buying Guns to Control the Butter

Monday's posting is a little earlier than normal..

Here's a trivia question...

In May of this year, a government agency put out a written request for the commercial acquisition of the following:

“Submachine guns, .40 Cal. S&W, ambidextrous safety, semi-automatic or 2 shot burst trigger group, Tritium night sights for front and rear, rails for attachment of flashlight (front under fore grip) and scope (top rear), stock-collapsible or folding, magazine - 30 rd. capacity.”
Which agency made the request for the guns with night visibility and 30 round magazine clips at .40 caliber?

Was it...

A)  The FBI

B)  The CIA

C)  The NSA (National Security)

D)  The USPS (Postal Service)

E)  The DHS  (Department of Homeland Security)

F)  The USDA (US Dept. of Agriculture)

G)  The US Coast Guard

Answer is....
F.   USDA

According to the USDA's Office of Inspector General (OIG), in the written request, the weapons are needed for self-defense:

"OIG Special Agents regularly conduct undercover operations and surveillance...

The types of investigations conducted by OIG Special Agents include criminal activities such as fraud in farm programs; significant thefts of Government property or funds; bribery and extortion; smuggling; and assaults and threats of violence against USDA employees engaged in their official duties,”
One must imagine the USDA is threatened and harassed repeatedly to need such a massive stockpile of weapons at their disposal to counter threats...

OIG’s Investigation Development bulletins show in the last year, there have been only three incidents in the last year that involved firearms and two in which USDA agents were verbally threatened.

That's it..

Most of their enforcement operations surround white-collar fraud of government programs, often involving SNAP programs (Supplemental Nutrition Assistance Programs).

Always funny how individuals are not allowed to possess these weapons but the government can..  Wonder if it has anything to do with government not wanting its citizenry to put up a fight when such weapons are aimed at them and their children?
Are semi-automatic weapons now needed to instill agriculture fines?

And who are usually the target of such heavy-handed tactics?

Certainly not the Big-Boys..  Usually its the small, locally owned farm that's just barely surviving and whom the USDA feel can be bullied the easiest to conform and heel..

Or is it kneel?

So if everything is honky-dory with the economy and all is going peachy-keen with this lovely little recession, why is it so many government agencies and sheriff's departments are seeking to arm themselves to the hilt with advanced weaponry?
Remember, no government fears its populace when times are good..

Just like few seek to just spontaneously buy a gun for self-defense without something occurring in one's personal life or neighborhood to spark the concern

If you personify government and its agencies, they're like an incessant bully with a deep inferiority complex, a small cock n' balls and enough weapons or strength to compensate who will never allow anyone else one-up him...

He has to be King Bean and will go to his maker if need be while doing all he can to hurt you in the process..
~ In this photo, the role of the US Govt (and its agencies) will be played by Ray Rice; the role of 'we' is played by Rice's wife

The bully Must be #1..   The bully must instill fear and pain..

You must be afraid and respectful at all times; humble and demure.

This is your government and its agencies; this is your police and military

This is America.

Thursday, September 25, 2014

Kids & Child Labor in America:1906-1914

In yesterday's post, we expressed how the family as a cohesive unit was better in 1914 vs the present, especially when it came to the purchasing power that one income provided to raise a family in comfort vs presently..

But to be fair, we didn't seek to imply that 100% of every aspect of life was better off 100 years ago vs the present..

Life is always a yin & yang; an ebb & flow
And for every thing we've lost as individuals or a society over time due to the steady march of 'progress', there's also been great improvements which can not be ignored even by those with the deepest longing to return to what was overall better days..

One such example was of child labor..

As we did yesterday, we're going to post some photos, all taken between 1906-1914 and make comments as needed
A pic of newsboys of 'newsies' who were the main distributors of newspapers to the general public from the mid-19th to the early 20th century in the United States.

They were usually homeless children that worked until very late at night and earned around 30 cents a day
The boys did not work for the newspapers but instead acted as independent agents, buying the papers they were to sell for that day and anything unsold, was on them to take the loss.

As one newspaper writer of the late 19th cent wrote about them, "You see them everywhere.... They rend the air and deafen you with their shrill cries. They surround you on the sidewalk and almost force you to buy their papers. They are ragged and dirty. Some have no coats, no shoes, and no hat."
Shoe-shining was another common occupation for children especially in urban areas..  They, like the newsies were usually homeless and self-employed.

The profession is still very common around the world today, especially in very poor parts of the globe where governments have tried to regulate by charging license fees for the children to work.
It was also very common for children to work in the coal mines as coal breakers which an exceedingly hard and dangerous job.

For pennies a day, crouched over the chutes, the boys would sit hour after hour, picking out the pieces of slate and other refuse from the coal as it rushes past to the washers.
From the cramped position they would have to assume, most of them become more or less deformed and bent-backed like old men and lived what ever shortened lives in that physical position.

Coal being physically hard objects, accidents to the hands, such as cut, broken, or crushed fingers, were common among the boys.  Sometimes they suffered worse fates than a mere broken hand or limb.
Children worked in all industrial businesses..  Here are boys and girls working side by side at a textile mill..
While boys were used predominantly in coal mines and newspaper delivery, girls were often hired as seamstresses, laundrettes and other domestic capacities..

The above pic shows these girls have had a very hard day and from their faces, a very hard life

We're pretty sure if they saw the modern teen girl with her typical laziness and refusal to do any physical exertion if it didn't involve looking 'fit' and constant phone texting, the 1914 girls would give the modern girls some hard slaps and slugs to the jaw..
The boy in middle is chewing on a cigar; we're guessing he's probably between 12-14 years old..

In today's society, the legal smoking age is 18 which while good because tobacco is addictive and causes cancer, is done because we don't think the modern teen is responsible or mature enough to use the product..

For better or worse, teens back then were not treated like children which most today are, and we're sure those boys in the pic were tougher and more mature than most 20 to 30-somethings today
Back in the 19th and early 20th century, it was very common to see whole families, especially immigrants working together at the same factory from dawn to dusk making enough combined to subsist and survive..
Children were not only exploited in the cities but in rural surroundings too..

These girls are picking berries..  It was also common to see them pick cotton, plow fields and work every aspect of a large farm like the slaves used to do..
In fact, it was much more cheap and profitable to have kids work then blacks because the slave owner  of days gone by had to pay to feed, clothe, shelter and provide medical attention to his chattel.

Free labor was never really 'free'.
The child laborer got a few pennies a day, their survival was their responsibility and like his/her sharecropper parents were as replaceable and disposable as a common AA battery

A lot of the pics are a bit on the shocking side compared to how we see and treat kids at present but you can see in many photos, these children are not soft like most are today..
 We as a society decided to make child labor illegal in 1938 with the Fair Labor Standards Act which overall was a good thing, but then we kept flipping the pendulum the other way..

And post World War II, every generation particularly males have become softer, gentler, more emasculated and in some cases unable to do their own laundry or cook their own meals without 'Mommy' to the rescue
The children of 100 years ago dealt with a lot of adversity and suffering but they also were rarely if ever bored..

Certainly they would have tried to get a drink to deal with all the tensions but we can't see the child of 1914 lazily spending his or her day smoking weed, eating munchies and watching cartoons or playing PlayStation..
And while it is good that child labor does not exist in this nation, we've gone too far the other way to the point where we regulate sex, marriage, cigarettes, alcohol, etc as if seventeen yr olds were still seven

Its been advantageous for modern society for whatever reason to keep the youth sheltered, stunted and absorbed in constant recreation and mental diversions.
Many of these children in these pics will ultimately become the parents of the youth that ultimately suffered through the Great Depression and served the nation in World War II

Collectively you had tough n' rough people, hardened by real life, raise their children to be equally tough n' rough which builds character
 And that can not be discounted as to why this nation grew and prospered and dealt with the biggest crisis tests in our nation's history..

And as for today's teen.. the one we cuddle and mollycoddle; and insulate from anything real..
They grow up and take the mantle like the drug addicted 50's & early 60's beatniks then late 60's hippies followed by the 80's shopping mall and 90's Nintendo generations..

And its difficult to harvest something vibrant when we plant bad crops.


Wednesday, September 24, 2014

The American Family- 1914 v 2014

Most people, even those who may economically not be too well off look at the present with fondness and positivity.

And even if 2014 isn't one's cup of tea, there's the belief that 2015 is only a few months away and that will surely be a better year..

We see life through a different prism; one where 'new' i.e the future doesn't in itself mean anything will be 'better'
And with certain exceptions, the past is better than the present.

The biggest reason we feel this way has to do with family, both on a personal level and in the greater abstract.

We know today here and now at this moment who is alive and those same people were here in the past, albeit a little bit younger..
Tomorrow or Next Week or Next Month?  Who's to say..

Cold but its true.

And the family itself..  Today it is more overall fractured and incohesive than ever before with adult children at great distances from their parents; brothers/sisters detached from each others' lives except for the yearly phone call..

All the photos in this posting will be from 1914..  They're not famous people..  Just family portraits we located on the internet which we felt demonstrated what life was life for people 100 years ago and we will make comments as necessary..
In this portrait you have three generations represented..

We will go out on a limb and say the furthest thing on their minds is going shopping and buying the latest styles to keep up with the Joneses while accruing massive personal debt for vanity

Also we will make the deduction that they all live in close proximity and thus are an emotional and economic support system to help one another and rally round in times of need vs the modern family that is scattered about like autumn leaves off a tree
We are going to deduce the mother in this photo does not work but the positive being she does not Have To do so because he father like most men back then were able to generate enough income to raise a family of 5 or 7 without the Need of a second breadwinner..

If a woman wants to work, that's great but we believe in real women's Choice as opposed to the political game of reproductive 'Choice.'  Since the 1970's. married woman have been Forced to work along side their husbands..

For most of US history prior to the 1970s, the only married women who worked outside the home were immigrants and the poor..

In today's society even among the upper middle class and well-to-do, married women go to work simply to help keep the economic plates spinning and not illusions or delusions of feeling independent.
One can easily tell this is a rural family and probably accustomed to much financial struggle..

There also is a hierarchy in the photo that is very evident and lacking in most modern families..

We live in an age where there's little to no respect between children and their elders; where teens seek to rebel every which way possible from illegal things they ingest or inject into their bodies to silly, superficial nonsense like tattoos and piercings..

Now look at the photo..  Who is the leader?   Can you honestly imagine any of the kids telling their parents to 'Shut up', or act up or rebel in any way many immature youth of the past few generations do..?
Here we have another family with five children where the woman is the homemaker as the man is fully able to support his family on his one salary..

Do they look like the kind of family that constantly curses and seeks to identify and mimic the base gutteral aspects of society or make political correct statements by socializing with peoples they have zero in common with?

Does this look like the kind of family that couldn't care less how their kids did in school or completely oblivious to where their children are during the day or what time they come home at night as they stay home and milk the system?
Notice how they are dressed.. They may not be wealthy but there's dignity in themselves and how they dress.. No backward baseball caps.. No hoodies or "wife-beater" T-shirts and pants draped down to their hips so you can purposely see their underwear..

The women may be a little bit on the plus side but they are not gargantuan rotund with thick fat asses from sitting all day doing little but watching TV and eating processed crap..

You can tell they all want a better life and are focused on working as hard as possible to obtain that goal...
This is a photo of a Jewish-American family..

How many of them can you imagine selling much less using recreational drugs or becoming addicted to alcohol or other vices to escape reality?

How many of the women in this portrait can you imagine taking nude 'selfies' of themselves, or engaging in lewd or deviant acts that would degrade themselves and their families, all for the sake of a little hedonistic fun?

Some may say we're unfairly stereotyping..
Sorry but, we're not..

Life nor families were not perfect 100 years ago but the 'Great War' aside, both were far better than life today..

Yes we have technological innovations that allow us to talk to people 5,000 miles away and machines that cook whole dinners in seconds, etc..

But back then you didn't have loved ones needlessly 5,000 miles away and more families actually sat and ate dinner together without distractions like radio, TV and texting at the table..
We are trained to poo-poo traditional families by secularists and those who try to politicize it which is moronic because Democrats seek happy, loving homes as much as Republicans

Truth is most people live out alternate variations of 'family' which we understand is better than no family at all

But also inexcusable to suggest everyone rushing home from work at 6p with someone placing a bucket of to-go fried chicken or other fast-food bag of burgers on the table for all to engorge upon, is the same as family circa 1914..
Its not..

And its the fault of this System we live under which makes everything more expensive than it needs to be while consciously depressing the wages to squeeze more 'juice' out of every worker 'grape' at the expense of family cohesion

And our fault for embracing the changes instead of fighting them.