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Just an interesting anecdote

An economics professor at a local college made a statement that
- he had never failed a single student before,
- but had recently failed an entire class.
That class had insisted
- that O'barmys socialism worked and that..... no one would be poor and no one would be rich,
(& everyone could holiday or play golf for half their life like him)
- a great equalizer.

The professor then said, “OK, we will have an experiment in this class on O'barmys plan”.
- All grades will be averaged
- and everyone will receive the same grade
- so no one will fail and no one will receive an A….

After the first test, the grades were averaged and everyone got a B.
- The students who studied hard were upset
- and the students who studied little were happy.

As the second test rolled around, the students who studied little... had studied even less
- and the ones who studied hard decided they wanted a free ride too.... so they studied little.

The second test average was a D!
- No one was happy.
- When the 3rd test rolled around, .....the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings
- and no one would study..... for the benefit of anyone else.

To their great surprise, ALL FAILED
- and the professor told them that .....socialism would also ultimately fail
- because when the reward is great, the effort to succeed is great,
- but when government takes all the reward away,
no one will try or want to succeed

.....................................................................................................................


These are possibly 5 sentences ...... applicable to this experiment:

1. You cannot legislate the poor into prosperity
- by legislating the wealthy out of prosperity.

2. What one person receives without working for,
- another person must work for without receiving.

3. The government cannot give to anybody anything
- that the government does not first take from somebody else.

4. You cannot multiply wealth.... by dividing it!

5. When half of the people get the idea that they do not have to work
- because the other half is going to take care of them,
- and when the other half gets the idea - that it does no good to work
- because somebody else is going to get what they work for,

That is the beginning of the end of any nation.

...................................................................................................................

Perhaps pertinent if you come accross...anyone who thinks that
- over 100 million Americans
- on some sort of nutritional support programme (food stamps etc)
- and half the people in the US
- receiving some sort of government handout
...is okay.

Have stocks peaked against $Gold?... The timing would at least be consitent with the bullish seasonals for the metals...



Although we need to be cognisant of the 'Wedge' Ojective...



And a reminder of the Stocks to Miners ratio...



S.

Jeff Nielson's latest - Gold, Silver, and Hyperinflation

http://www.bullionbullscanada.com/gold-commentary/26290-gold-silver-and-hyperinflation

On a completely different note.
Saw this on sky news yesterday and just couldn't believe what I saw ..... on the MSM.

Some fat parents claiming that they couldn't afford to feed the kids during the school holidays... that is funny bit as these people clearly are thinking about their own tummy's first .

An ex-Iraqi war hero driving a bus with meals for the kids. He is honest in his views that the US is losing it's battle with the recovery.

http://news.sky.com/story/1121307/hungry-in-america-huge-demand-for-free-meals

Miners are meandering still and may wish to move on up without the re-test?/...



Whereas SLV has yet to get above the green average let alone the blue one...



If we get a confirmed breakdown here watch for a retest of the low, and potentially lower prices still.

Remember the end of month on wednesday and the FOMC meeting. Where talk of reducing QE could be the outcome?/

I will be looking to hedge my 20+% profits on the mining positions if we dip below the $26 area.

S.

Wars and rumours of wars!!

Chinese Rear Admiral Zhang Zhaozhong warned unequivocally. “China will not hesitate to protect Iran even with a Third World War,”

Russian General Nikolai Makarov said: “I do not rule out local and regional armed conflicts developing into a large-scale war, including using nuclear weapons.”

'Washington will attack Syria and Iran with lethal biological weapons'

Dutch virologist Ron Fouchier revealed it. He discovered that five avian flu virus mutations spread far more easily. Doing so makes them the “most lethal killer(s) of mankind ever invented.”

http://www.globalresearch.ca/russia-and-china-prepare-for-global-war/5344041

Remember the plagues foretold of in the bible?

Do not be troubled. This must take place, but the end is not yet. Mark 13:7

Of course some of us here know there are no opposing sides really. They all do the work of their masters. Just as was the case in the 2nd world war, where Churchill Hitler, Stalin and Roosevelt were all high ranking freestonecutters.

dpuf
Peace is "counter-revolutionary" since it is war that paves the way for revolution. - The Red Symphony -
http://henrymakow.com/000275.html

http://henrymakow.com/2013/07/hitler-played-the-dupe-in-ww2.html


S.

Ooor Wullie (Jim)
- has said a few times of late that Deutsche , Citi Bank & ...Barclays are on daily life support...to keep them afloat
- Max Keiser has also added that Deutsche Bank is ..on suicide watch

And I earlier pointed out that Barclays - lasy year were being investigated
- for ...allegedly..m'lud...lending it's money to the Quatari's & Japanese
- who then....
- gave it back to Barclays...to bail them out
(& avoid the strings & straight-jacket a goverment bail ot would bring - plus a ...look at the books)

Drm Roll Time (again)

Main stream media - now reports -

BARCLAYS will be tapping the market for lots of billions....because
(please do not laugh)........
- a black hole in it's balance sheet re the PPI mis-selling payouts
- and....bringing forward (lol)...increasing capital adequacy....called for under Basel III

(play "The laughing policeman track"....oh ha -ha -ha -ha - ha ....repeat for 3 more mins)

Sahara / Snurkle

I will preface this link - with a WARNING
- I FELL .......into this site on & off over the weekend
(& from 11pm - 3am on... both saturday ..and Sunday Night)

It's a wealth of....really ought to know information
- I have pencilled in my diary....
- spending the worst of the inclemancy... of the winter months...there ! - lol
(Can't afford 3m in the Canaries)

Much of what is there I, & no doubt you, will be aware of - but - it documents it
(very well)
- and much of it also , supplements what I already knew
- but there is oodles of....new to me... stuff too
(plus recommended books too, extracts from books as well as, the articles)

The menu's,,,,, open up sub menu's,,, and so on.

So beware - but here goes - add it to your - sitting at the airport etc - "dive in list"

http://www.thirdworldtraveler.com/index.html

(scroll down the page - pick a blue link - and off you go just down the menu's)

Example of a sub/sub/sub... menu

http://www.thirdworldtraveler.com/Banks/Secrets_Federal_Reserve.html

Sahara

(from the Rothkiddies extracts from Mullins Book)

This may be of interest - on two points

- the manipulated - war - aspect (which you are well versed in)
- but do you spot anything in there .....that has a ring of...The Protocols of the elders of Zimon.... and his mates
(would be interesting to read the full...25 items alluded to)


p55
According to William Guy Carr, in Pawns In The Game," the initial meeting of these ex officio planners took place in Mayer Amschel Bauer's Goldsmith Shop in Frankfurt in 1773. Bauer, who adopted-the name of "Rothschild" or Red Shield, from the red shield which he hung over his door to advertise his business ... was only thirty years of age when he invited twelve other wealthy and influential men to meet him in Frankfurt.

His purpose was to convince them
- that if they agreed to pool their resources they could then finance and control
- the World Revolutionary Movement ......and use it
- as their Manual of Action

- to win ultimate control of the wealth, natural resources, and manpower
- of....... the entire world.

This agreement reached, Mayer unfolded...... his revolutionary plan.

The project
- would be backed by all the power that could be purchased with their pooled resources. By clever manipulation of their combined wealth it would be possible to....

- create such adverse economic conditions that the masses would be reduced to a state bordering on starvation by unemployment...
- Their paid propagandists
- would arouse feelings of hatred and revenge against the ruling classes by exposing all real and alleged cases of extravagance, licentious conduct, injustice, oppression, and persecution.

They would also invent infamies to bring into disrepute others ....who might, if left alone,
- interfere with their overall plans...

Rothschild turned to a manuscript
- and proceeded to read..... a carefully prepared plan of action.

1. He argued that LAW was FORCE only in disguise. He reasoned it was logical to conclude 'By the laws of nature right lies in force:
2. Political freedom is an idea, not a fact. In order to usurp political power all that was necessary was to preach 'Liberalism' so that the electorate, for the sake of an idea, would yield some of their power and prerogatives which the plotters could then gather into their own hands.
3. The speaker asserted that the Power of Gold had usurped the power of Liberal rulers .... He pointed out that it was immaterial to the success of his plan whether the established governments
- were destroyed by external or internal foes
- because the victor had to of necessity ask the aid of 'Capital' which
'Is entirely in our hands'
4. He argued that the use of.... any and all means to reach their final goal... was justified
- on the grounds that the ruler who governed by the moral code was not a skilled politician because he left himself vulnerable and in an unstable position.
5. He asserted that 'Our right lies in force. The word RIGHT is an abstract thought and proves nothing. I find a new RIGHT... to attack by the Right of the Strong, to reconstruct all existing institutions, and to become the sovereign Lord
- of all those who ....
- left to us ......the Rights to their powers ......by laying them down to us in their liberalism.

6. The power of our resources must..... remain invisible
- until the very moment when it has gained such strength that no cunning or force can undermine it.

He went on to outline........... twenty-five points.

Number 8 dealt with
- the use of alcoholic liquors, drugs, moral corruption,
- and all vice to systematically corrupt youth of all nations.

9. They had the right to seize property....... by any means, and without hesitation,
- if by doing so they secured submission and sovereignty.
10. We were the first to put the slogans Liberty, Equality, and Fraternity ....
- into the mouths of the masses, which set up a new aristocracy. The qualification for this aristocracy is WEALTH which is dependent on us.

11. Wars ......should be directed so that the nations engaged...... on both sides
- should be further in our debt.

12. Candidates for public office should be servile and obedient to our commands, so that they may readily be used.

13. Propaganda
-their combined wealth would control....... all outlets of public information.

14. Panics and financial depressions would ultimately result in

World Government,
- a new order of .........one world government."

(Looks like another book - on the must read list :o)

http://www.thirdworldtraveler.com/Banks/House_Rothschild_TSOTFR.html

As can be seen from the above links on the site are
- concise....and cuts to the chase of conveying
- the salient parts of what would ogten cover....a shelf of books
- in just a few link pages

(enter at your own risk....lol)

Worth watching (ignore title)
- slide time bar to approx 13 min in

Max's guest - explains with clarity that the smash down in gold
- probably took around 1,300 tons
- so who had the clout to supply that ??
- strangely enough a new "app" on the BofE website
- discloses a drop in "custody gold" of.....
- 1,000 x 400 oz bars from....Feb 13 - Jun 13
- which equates to.....approx....1,300 tons

The BofE itself only has 400 tons
- but it has lots & lots - in custody
(eg other central banks gold)
- like the Bundly Bank ...And Austria - who recently confirmed.....
- it had been leasing some of it's central bank gold - into the market......
-to offset....high BofE.... custody/storage charges
(Much more on that....in the youT)

Well worth just 13 min (ie second half from 13min onwards)....of your time
imo

Gaz, what a fabulous site.
Like yourself, I will be spending many wet autumn and cold winter days trawling through that lot. It's library in itself.

As for Max K, I posted it last saturday, but really worthwhile watching it again as it was a very interesting episode. With this episode in mind Bill Holter wrote the following article that related to it.

http://blog.milesfranklin.com/lots-of-questions

The only thing about his and other people's theory that I question is that when you see gold going even faster out of stock after the take down than even before the take down, why not stem the flow by yanking it back up. I know we've seen a small turn around, but keeping it at these levels hasn't stopped the bleeding. Will it make its demand go even stronger if they were to up the prices by say $100 a month for the next 6 months?


This of course would make all the negative MSM spin look even more foolish, but it served its purpose.
Also Gartman has already said to go long gold .... ..... this is written tongue in cheek

From David's Desk

David Schectman

Why All the Pessimism? We've Seen This Before.


The other night we had guests over for dinner. During the evening, the question came up, "What is going on with gold?" That's the question most people are probably asking, especially those who don't closely follow the industry, or read our newsletter. I replied, "Nothing special. This is normal." He gave me a funny look - to be expected.

I added, "The same thing happened in the summer of 2008 when gold plunged from over $1,000 to below $800. The drop was around 30%, similar to what we have now, and people were as frightened, disillusioned and ready to proclaim the bull market over then as they are now. Then gold reversed course and moved back up to an all-time high of over $1,900 over the next 36 months. There was joy in Mudville!"

"We've seen this before. More of the same old, same old - and the current drop of around 30% is not out of line. People are once again disillusioned and ready to proclaim the bull market is over. And it will reverse course and set new highs just like before."

It's the age-old case of freezing up and not being able to buy at the bottom. Human nature screams at you to buy at the top. (Stocks are a perfect example now. They have to deal with unemployment numbers that are signaling no real growth; housing numbers that are signaling a downturn; interest rates that are straining to rise. None of this is positive for strong growth but the stock market is priced to expect it). So what do most investors do? They buy stocks and avoid gold. Some things never change. And I have to answer the same question to my friends, "What's wrong with gold?" I wonder what they would say to me if I asked them, "What's wrong with the stock market?" Which of these markets could best be described as on the verge of "Irrational Exuberance?" The echoes of the Maestro are still haunting us.

Do you watch the price of gold all day long? I do, I'm addicted. But there is a reason I tell you that this short-term day to day up and down is just "noise." Only someone with a rabbits foot that actually works, or a deep-pocket hedged fund with insider information or sensational day traders can make any money in this market. There are easier markets to trade. Why even bother with gold or silver, which are manipulated at will by JPM and a few buddies.

Look at Friday's chart, as a perfect example. It can make you paranoid and crazy if you watch it all unfold.






(Green line) Gold is up in the after market (after the Comex close when the trading volume is light and it is easy to move the market up or down without much effort or capital), starting at 6:00 (EDT) gold rises until after midnight in Asia. Then there was a sell-off that continued through the London market, into New York and then it fell some more. Things were not looking good. Suddenly, for no apparent reason, gold started to rise, before noon, and continued to rise throughout the rest of the afternoon. At last glance it was back over $1,330. That's about where it finished yesterday, but what a roller coaster ride to get there. Up, down, up and in the end, nothing. All in one day. How can you trade this? Well, you can't unless you love to lose money. Gold is not a short-term trading vehicle. It is a long-term hold, not necessarily for profit, but as insurance for the certain loss of buying power with the Fed's debasing dollar policy (QE).

Also of interest, gold fell all day Friday while the dollar was also FALLING. The Cartel usually uses rising gold to smack down gold, but a falling dollar rarely adds much juice to the move up. Anyone who thinks gold trades freely is lying or living in dreamland, unwilling to see the facts.

But that is not a negative. Gold has had to deal with this kind of crap since it was $250/oz, all the way up. The message is simple, manipulation DOES NOT WORK over a longer period of time. It is only effective short-term. They really cannot do this much longer. Too much physical demand, at prices below production cost, to allow it to. Most of you will not pay any attention to these facts and will wonder why they didn't see the light - after the fact, when all the Johnny come lately analysts and newsletter writers jump on the bandwagon. At $1650 or higher.

You know my philosophy. I don't sell my (physical) gold! I accumulate gold. For me, it's not a buy and sell investment; it's a long-term hold that I keep for an emergency, retirement or to pass down to my kids. I might change my mind in a few years when latecomers are offering me $3,500 or $5,000 an ounce for it. I might sell some of it; but it depends if, at the time, there is something else that is a better choice to replace it with. Those kinds of decisions we make at the time, not before the event.


Sincerely,

David Schectman

For those of you not familiar with this article, Bix has an interesting theory with regards to the silver supply.

http://www.roadtoroota.com/public/135.cfm?awt_l=5eEZ2&awt_m=3Wgm5saosR4C85B

The King of Silver and Gold Flees

By Adam English | Monday, July 29th, 2013


J.P. Morgan has finally bowed to the masses and will abandon its throne of silver and gold.

Bearing the modern equivalent of pitchforks and torches, a handful of outspoken whistleblowers, investors, and journalists have begun shedding light on the highly questionable manipulation of markets and commodities by J.P. Morgan and the other megabanks.

The whole fiasco is the result of a lousy patchwork of half-baked laws.

The wall between banks, investing companies, and commodities was dismantled when the Glass-Stegall Act was dismantled in 1999. As a result, Morgan Stanley (as it was called at the time) and the Goldman Sachs Group, Inc. aggressively moved into both sectors. At the time, the law allowed them to keep their commodity businesses — as long as they were in place before 1997.


The Federal Reserve made the situation worse in 2003 by broadening the rules. The Fed thought commodity trading was complimentary to financial activities and, as a result, a logical sector for banks to enter.

The results have been disastrous, with the evidence against the banks and this law piling up higher by the day.

The Fed began reviewing the implications of its decision last week.

The unintended consequences and implications of misguided laws and regulations have become the defining aspects of the commodities market. Politicians can no longer ignore this situation, and are now openly questioning in Congressional and Senate meetings why banks are in the commodities market in the first place.

Just last week, I was compelled to point out the manipulative exploits of J.P. Morgan in the silver market. HSBC and Goldman Sachs were also mentioned.
All of the megabanks have jumped into commodities futures, warehousing, and high-frequency trading of paper gold and silver. This is in addition to holding shipping companies, operating power plants, and managing pipelines, electrical grids, and other basic infrastructure. Any market large enough to distort was turned into a profit center.

But the track record of the banks has been abysmal. J.P. Morgan in particular is behind a number of misdeeds and a good deal of deception...

Repeat Offender

One look at J.P. Morgan 's resume, and you have to wonder who in their right mind would let them near commodities to begin with.

Of course, this is an article and not a book, so we'll just stick to recent history...

We'll start when J.P. Morgan inherited a massive amount of silver shorts priced between $20 and $21 from the Bear Stearns bankruptcy deal the U.S. Treasury Dept. approved. Together with HSBC, the two megabanks covered 85% of all silver shorts.

If the free market was allowed to set the price of silver during unprecedented monetary easing would turn the acquisition into one of the worst deals in its history... So J.P. Morgan made sure that didn't happen.

By maintaining the massive short position and utilizing high-frequency trading, JPM could buy up silver at a discount and artificially induce others to sell and keep the price low. Same with gold.

However, that started to change this year, and J.P. Morgan threw gold investors under the bus to further its strategy... 99.3% of the physical gold sales at the COMEX between the beginning of February and the end of April was from J.P. Morgan alone.

At the time, it looked like just another power play in the market to capture gains and force others to panic sell until a better entry price was available.

Since then, selling has not subsided. J.P. Morgan even removed 66% of its COMEX-eligible gold from the market a couple weeks ago, leaving just 46,000 troy ounces when it had over three million in the market two years ago.

Now things look a bit different — but just as manipulated. This massive reduction, coupled with COMEX-eligible gold for delivery across the board and massive demand from Asia, is driving a huge wedge between the reality of physical gold prices and paper trades through exchanges.

The physical gold J.P. Morgan will retain after removing it from the sale rack is poised to skyrocket in value. If it is getting out of the market, it might as well bolster its holdings in the process. If it destroys the market at the same time, so be it.

The Warning Shots
In the last month, we've seen a massive fine handed to J.P. Morgan and renewed interest in revoking the rules that allowed J.P. Morgan and the megabanks to dominate commodities.

The $400 million fine for giving false information to state power grid operators and collecting money for not running power plants was the first real hit J.P. Morgan has taken for manipulation in years.

Reuters just reported that the Department of Justice has sent letters to at least two firms seeking information for a preliminary inquiry into complaints that companies involved in metals storage may have inflated prices earlier this week.

Bart Chilton, head of the Commodity Futures Trading Commission, has even publicly stated that silver prices are subject to "fraudulent influences," and the parties behind it should be prosecuted. On July 25th, he said:


This whole area of banks owing the physical, warehousing and delivery mechanisms of commodities is one that policy makers need to thoughtfully consider, and soon. Banks getting back to being banks and making loans to businesses and individuals seems like the best course of action. Perhaps that will happen without any policy changes, although I have definite doubts.

You and I have heard plenty of talk from legislators in the past, and we're starting to hear it again about this situation...

We have no reason to think it'll come to anything (consider the number of the bankers jailed for causing the Great Recession...) when they rattle their sabers in front of a camera. But when J.P. Morgan positions itself to get ahead of the curve, well, that's different.

The company's move shows that it believes the politicians won't like what they see. There is no other reason for them to abandon what has been a source of massive profits.

The 10 largest Wall Street banks generated about $1 billion from physical commodity units in 2012, and about $5 billion from commodity derivatives and financing.

J.P. Morgan has the daunting task of unwinding $6.7 billion in total positions.

Going Forward

If everything goes as planned (or as publicly stated), J.P. Morgan will be out of the commodities business within a couple of years.

And we'll know within weeks or months if the other megabanks will follow the first rat off the sinking ship.

What that means for you and me could be a whole new world... It could also be nothing different.

The U.S. government can only legislate and control a portion of the global markets, and it has a terrible track record rife with unintended consequences. If the move is entirely voluntary, the demand for legislation will subside and it's likely nothing will happen. The door will stay open for the megabanks as well.

One thing we can count on is tightened liquidity in commodity markets. It could be negligible if J.P. Morgan and the other megabanks just spin the business into new firms. If they sell their commodities desks and positions to other firms or close up shop, it'll sap the market of liquidity for months or years.

In my opinion, we should welcome the potential for short-term pain if it means a truly free market.

We'll all be better off without being subject to the whims and decrees of the self-appointed kings of commodities — along with the heavy taxes they collect from us through their schemes and manipulations.

Take Care,

Adam English

PS sorry for all the above without links. They were from emails

From Ed Steer

The U.S. Mint had a very decent sales report yesterday...and if one uses the past as prologue, this may be the last sales report of the month. They sold 10,500 ounces of gold eagles...4,500 one-ounce 24K gold buffaloes...and a very chunky 950,000 silver eagles. Silver eagles sales this month so far total 4,406,500. Only 65,000 ounces of gold eagles/buffaloes have been reported sold, so that puts the silver/gold ratio for mint sales at just about 68 to 1. That's the biggest sales ratio number that I can remember posting.

Silver Vault for 200 Tons Starts in Singapore as Wealthy Buy

http://www.bloomberg.com/news/2013-07-28/silver-vault-for-200-tons-starts-in-singapore-as-wealthy-buy.html

From Ed Steers colum

A (Photovoltaic) Silver Bull in China

Early this month, big news came out of China. It may have gone unnoticed by some investors—and there's really no reason why it would have been covered extensively by mainstream media—but it's important if you're a silver investor. China raised its target for solar generating capacity to more than 35 gigawatts (GW) by 2015, a stunning increase of 67% above the previous target.

China's State Council announced on July 4 that installed capacity for solar electricity would grow about 10 GW per year until it reaches the newly set target. The country's previous target was 21 GW; installed capacity in 2012 was about 7 GW, so this would translate into a 400% increase. Moreover, if one looks at the rate at which it keeps raising the target, we may well see even more solar capacity by 2015—and quite possibly two times that by 2020.

Why does this mean to us as precious metal investors? A simple answer would be that growing demand could crimp supply and push on prices. But let's take a deeper look to see if that's the case…

I've already posted a couple of news items in this column during the past week about this issue...and here's a fresh look from Jeff Clark over at Casey Research. It's a must read.


http://www.caseyresearch.com/articles/a-photovoltaic-silver-bull-in-china

Nice links as usual - More bed time reading.

Have you noticed the chunky moves in some of the uranium plays lately?///



S.

OOops!!...



We can hope for a false break, but would want to see a reversal straight away.

S.

Meanwhile Miners may be about to lose a line in the sand unless it can recover from it...



S.