U.S. Elephant

Series: Economic Recovery is a Bunch of Lies Pt. 3

2009-12-18T06:14:00.000-08:00

China is Dumping the Dollar:

According to RBS, it appears that China is dumping the Dollar, and Dollar denominated assets. For more information on these green shoots, including great graphs, click the link below.

http://www.businessinsider.com/china-is-unloading-us-dollars-rapidly-2009-12

Climategate

2009-12-17T09:24:00.001-08:00

There are a lot of rumors swirling about, and there is a lot of information to be digested, but I wanted to interject one more piece of information. Many people may have already noticed this, and it is a very simple observation. In a world where we use acronyms and abbreviations even in our speech, we tend to gloss over the meanings of these terms as they have simply become names moreso than meaningful phrases.

What is in a name?
One name that is being tossed around a lot is the name of the institute that is at the center of this "climategate." The name of this institute is the "Hadley Center for Climate Change." Now, there are many accusations with supposed proof from each side, but the simplest observation can help us to immediately understand the motive. Their name is "Hadley Center for Climate Change." This indicates that their sole existence is to prove climate change and its effects.

There are a few reasons why I would suggest this. On their website they are quite clear that they believe "Climate Change" (which is a fairly new term introduced being that the term "global warming" blew up on them, so I will use Global Warming throughout the rest of the article) does exist and has already been proven. This can be extrapolated by phrases they use such as "A simple guide looking at the facts and impacts and history of climate change" and the images they use such as a smokestack with smoke spelling out "CO2" not to mention a desolated area of the earth.

One problem that I have with this is that most of the time they spend examining data seems to be so they can prove that "global warming" is occurring. How can scientists objectively approach their research when the outcome, in their eyes, is already decided? So, naturally, data must be skewed to fit their hypothesis.

Where's my motivation?
I can't say factually what the motivation is, but these scientists are being paid and have steady work. If they disproved "global warming" then they would be out of work until the next job. Now, you can think a little deeper and consider that there is government motivation. After all, this is a government organization that clearly already believes that "global warming" is a proven fact. It seems slightly suspect that an organization of the government would declare "global warming" to be so factual with clearly inconsistent data and so many dissenters if they didn't have political motivation.

What possible political motivation can arise? Taxes, permits, new businesses, control over industry, and the sky is the limit! New companies that regulated CO2, audited CO2 emissions, and sold credits would be created. Imagine if politicians, that have a vested interest in some industries, could levy a massive tax on their competition? They would either be making money off of them or put them out of business. It would open up a whole new level of control never before seen by man.

Conclusion:
Using basic logic, you can clearly see:

Their name & website clearly suggest a steadfast belief that "global warming" exists.
They get paid for an indefinite period of time assuming they don't disprove "global warming"
There is a lot of political opportunity available if "global warming" is proven true such as large tax increases, new permits, and new business opportunities.
The leaked emails help to contribute to this conclusion.

The name, the motivation, and the disposition all point to an organization that has a goal, and a motivation to push their idea without consideration that they may be wrong. Someone is wrong in the Climategate argument, there is no in-between. But with the current slew of information, and a basic analysis of the source of "proof" it is easy to see through the situation.

Why You Shouldn't Listen To Ben Bernanke Pt. 2

2009-12-17T08:28:00.001-08:00

As a follow up to my post on "Why You shouldn't listen to Ben Bernanke" I showed you an interesting video that shows him denying bubble's in the housing market before it popped, and the horrific stock market crash that occurred. Now, I don't expect people to have a crystal ball, but if a news reporter asks what he thinks about a possible housing "correction" I'm pretty sure this guy already knew it was coming. Now, why am I restating all of this? Because Time magazine, laughably, named him "Person of the Year."

Not to say I would want his job, but if your idea to save the economy is: make money cheap so banks, and the federal government run up their credit and hope for the best, then that is not very inventive. That is basically what every low income family that has lost their job is resorting to, and it only makes problems worse. It will work similarly on the micro as it will on the macro! Now, I understand that the Time magazine award is for people who have affected the world "for better or for worse." But it sounds like they think it is for the better.

Don't get me wrong, Bernanke seems like a cool guy. I would most certainly hang out with him, but person of the year? We haven't even begun to see the effects of his decisions. This is like giving the award to a person who has the intention of going back in time. I think that in a few years we'll be able to look back on this and realize how big a farce this is. At least, I hope we'll have that ability assuming cataclysmic destruction of our economy does not ensue. Do I hope I'm wrong? OF COURSE! I hope that in a few years Bernanke can call me up laughing saying "You remember how you said I didn't deserve man of the year? I guess you were wrong."

But everything in me looks at what decisions are being made, and what the logical outcome may be, and I just think that the decisions are being arrived at for the short term outcome, and the long term is not being considered.

Series: Economic Recovery Is A Bunch Of Lies Pt 2

2009-12-17T08:12:00.000-08:00

This story came in last night. Apparently the Federal Government breached its debt limit so the house approved an emergency $290 billion limit increase. This sounds like we are living at the top of our credit card limit... recovery is on the horizon!

"The ceiling was set at $12.104 trillion dollars.
The latest posting by Treasury shows the National Debt at nearly $12.135 trillion. "

To read more about these green shoots follow this link: http://www.cbsnews.com/blogs/2009/12/16/politics/politicalhotsheet/entry5987341.shtml

Series: Economic Recovery Is A Bunch Of Lies Pt 1

2009-12-17T07:46:00.000-08:00

This will be a very simple series where I will provide excerpts and links to articles in the media that demonstrate just how smoothly this recovery is going. Let's start with a report from New York. Governor Patterson had this to say:

"I can't say this enough:
The state has run out of money.
We are $1 billion short..."
-New York Governor Patterson

To read more about these green shoots you can find the article here: http://www.nydailynews.com/ny_local/2009/12/13/2009-12-13_untitled__2gov13m.html#ixzz0ZxgA0CtB

Why you shouldn't listen to Ben Bernanke

2009-11-30T09:38:00.001-08:00

URGENT: GOLD & SILVER SHORTAGE UPDATE

2009-11-25T12:05:00.000-08:00

If this account is accurate then it appears that the shortage isn't with Gold, but our ability to meet demand in a timely manner.

We have some damage control information from Forbes.com:

"Gold Coin Shortage
Heather Struck, 11.25.09, 12:15 PM EST
Don't worry, there's not a shortage of gold, just of equipment for coining it in the U.S.

The United States Mint has a gold problem. As demand for precious metal in the futures indexes and in physical gold bullion coins increases as the dollar weakens, there's been a run on the Mint. Don't worry, there's no shortage of gold. It's just that the Mint doesn't have the resources to make it into coins due to outsourcing and budget cuts decades ago.

The problem lies in manufacturing the blanks. The blank planchets are not made at the Mint, which hasn't had the production capacity for this stage of the minting process since the budget cuts of 1981. The Reagan administration began using private companies, which process and ship the blanks to the Mint's West Point, N.Y. site for stamping and engraving. Today there are three refineries that supply planchets to the Mint: VennerBeck Stern Leach in Rhode Island, Sunshine Minting in Idaho and Goldmark in Perth, Australia

Though some have taken the shortage of gold coins to mean a shortage of gold in general, folks in the industry say it's not a worry. The Gold Bullion Coin Act, which put the coin programs in place in 1985, stipulates that the gold must be mined in the U.S. Johnson Matthey ( JMPLY.PK - news - people ), the London-based company that refines most of the gold that is mined in the U.S., says, "there is no shortage of gold" coming out of the ground these days.

The Mint's Oct. 6 announcement that it would not produce any gold "proof" coins this year is testament to its diminished capabilities. Even 5,000 proofs for the 2009 edition of the American Eagle coin series would offer a limited number to collectors that would still be a particularly rare year for the coin. When questioned by Coin World, a collectors' trade publication, about what would be the first skipped year in two decades for the American Eagle gold coin series, the Mint responded that they were just following the law, which is "to produce bullion coins in quantities sufficient to meet public demand."

The demand for gold bullion being 860% higher than it was a year ago, the Mint has found itself filling that demand with all the gold blanks that it can get its hands on. It is difficult to say how many licensed coin dealers are telling their customers they don't have what they need, but earlier this year, Ute Wartenberg Kagen, executive director of the American Numismatic Society, said she was asked by an investor how one could buy 10,000 coins (they are sold in ounce quantities and three fractional versions below that, at a price that is slightly above market value).

Gold bullion coin prices are normally nothing near the rare coin trade, in which the right coin can sell for anywhere between $50,000 and $1 million, but this year Treasury's business coin program is already selling at the explosive rates. In 1986, nearly 1.8 million ounces of gold bullion were sold. The Mint reports having sold 1.1 million ounces by the third week of November this year."

URGENT: GOLD & SILVER SHORTAGE UPDATE

2009-11-25T11:52:00.001-08:00

Letter From APMEX:

Dear XXXXX,

The United States Mint has suspended sales of gold and silver yet again. 2009 has seen an unprecedented demand for the 2009 Gold American Eagles and 2009 Silver American Eagles as investors have clamored to secure their assets and protect their wealth against the rising tide of inflation.

This suspension in sales is temporary as the U.S. Mint continues to produce these highly sought after coins. At APMEX, we have a very limited supply of both 2009 Gold American Eagle and 2009 Silver American Eagle coins in stock and ready to ship. Buy your gold and silver bullion coins now while they are still available in the marketplace.

Mint shortages have traditionally caused a significant increase in premium – however, at APMEX, we still have these coins available at very reasonable prices. Buy your gold and silver coins today before market conditions change more and prices are driven up from excessive demand.

The news from the U.S. Mint comes on the heels of the recent news of gold's all-time highs. It seems like every day, gold reaches a new high! Already this morning, gold reached $1,186.30 per ounce as investors continue to react to major financial news about gold.

News like this will only drive demand and prices higher, and supplies lower. Get your 2009 Gold American Eagle and 2009 Silver American Eagle coins at APMEX while we still have a supply to meet our customer's needs.

Buy your gold and silver online today at www.APMEX.com!

Respectfully,

David McCarty
Director of Marketing
American Precious Metals Exchange

URGENT: GOLD & SILVER COINS MAY BE IN SHORT SUPPLY

2009-11-25T11:27:00.001-08:00

The extent can't be estimated very well but there are reports rolling in that Gold Krugerrands are in short supply and wholesalers are waiting on the South African Mint to ship out more and the US Mint is either out of or having huge difficulties keeping up with demand of Silver American Eagles.

From the US Mint Webpage:
"Update: Due to the continued, sustained demand for American Eagle Silver Bullion Coins, 2009-dated American Eagle Silver Uncirculated Coins will not be produced." (link)

Krugerrand Sources:
Gold Krugerrands Run Out

We will keep you posted as more information comes in.

BullionStacker.Com - A Growing PM Trading Community

2009-11-25T10:35:00.000-08:00

Many people are wondering how they can get into the precious metal market, many people want to know how they can sell their holdings of Gold, Silver, and Platinum; and others just have an interest and want to talk about it. This can all be done at one place, and I must say that it is outstanding.

BullionStacker.com is a fairly new community formed by a group of friends that got tired of how a lot of other forums were managed. It was started with the idea of having a place for people that are serious and passionate about precious metals and give them a no-hassle place to buy, sell, and trade their Gold, Silver, and Platinum. I became a member a few months after it was founded and I have completed many successful trades/sales and have not yet had a problem outside of the USPS being slow, and unresponsive.

What sets Bullionstacker.com apart from other forums? Their main rule is to use common sense; meaning that they don't have a rulebook thicker than your precious metal holdings, they don't charge you for buying, selling, and trading, they have a feedback system in place, and they have a very active membership base. The members will also keep you alerted to hot deals found on eBay, other websites, and in magazines which has provided great buying opportunities, some of which were under spot!

If you are looking for a great precious metal community to learn, to grow, to buy, to sell, to trade, to teach, or to just hang out be sure to check out the guys at BullionStacker.com.

Disclosure: I receive absolutely NO compensation in any way by writing this article, or endorsing the forum at all. I am just a member of the forum that wants to share the opportunity.

A Case For Stockpiling: Should Food Be In Your Portfolio?

2009-11-24T21:18:00.000-08:00

I know, it sounds weird to think about but should you consider food in your portfolio? Not companies that produce food like Conagra and Kraft, but actual literal, bust open the can and heat it up food. I am being slightly facetious as I know it is not considered an investment by any orthodox standard, but think about it. It has all of the fundamentals stacked against it: Increasing wages, increasing transport cost, increasing population, scarcity, susceptible to natural disaster, inflation, and the slightest disruption in the supply chain and the price shoots up nearly over night!

Consider: very few cities are well equipped for food production. Nearly the entire population depends on large truckloads of food to be delivered to super markets on a daily basis! Consider all of the above examples such as scarcity, susceptibility, and it is a surprise that crises do not occur on a daily basis in the same places. What am I getting at? Well, in case you have been asleep at the wheel, America is not getting more stable.

Just yesterday the FDIC admitted to being in the red by 8.2 billion, droves of people watch FDIC.gov every Friday to see if they have won the "How many banks will fail tonight" bet, Eliot Spitzer just called the Fed a ponzi scheme, China is angry at our fiscal policy, senators are calling for Timothy Geithner to step down, California is basically printing their own currency, Iran and Israel are going at one another like Spy vs. Spy, Gold is at new highs, 14.1% of ALL US mortgages are either in foreclosure or delinquency, and half a million Americans lose their jobs each month. If you think that sounds stable then I will have a drink of what you're having.

So, by stocking up on non-perishable food, you could avoid inflation, the additional transportation cost (fewer grocery trips), panic buying during disaster, waiting for trucks to bring stuff in, and a few other things that make this proposition look mighty tempting. It is just an idea to consider.

FDIC: You're Money Is Insured, Really It Is!

2009-11-24T20:18:00.000-08:00

The FDIC is officially broke (not much of a surprise) with -8.2 billion dollars. This just after Sheila Bair made this video assuring everyone that their money is safe and sound. To be fair, at the time of that video the FDIC had roughly 10.4 billion in their fund. So, let's assume that the fund rate of decline would continue at 50% of that amount over the next year. The fund would roughly have: -26,800,000,000. So, this should have you wondering: how is my money insured? Any rational person would surmise that they are backed by the full faith and credit of the US Government!

That doesn't sound like an unfair shake, and it's true too! So all is well right? Wrong. What is the full faith and credit of the US Government worth? Treasury Direct has that answer: -12,011,838,881,463.68. That is negative twelve trillion dollars. So if the FDIC is insuring your money but they are out of money, and the US Government is backing the FDIC, but they are out of money, then that begs the question AGAIN: how is MY money being insured? I can't answer that question for you, and I'm sure few others could provide a correct answer.

ICE Cancels "Impossible" DXY Trades

2009-11-20T17:12:00.000-08:00

So ICE cancelled 4,000 contracts earlier this morning (11/20/2009) but they also cancelled similar contracts that occurred on 11/3/2009. Specifically they cancelled 8,000 on 11/3/2009. I find it ironic that two sets of "impossible" trades occurred this month. Could it be that the investors on 11/3/2009 got shut down so they tried to sneak in under the radar at half the number of shares?

Could this be a sneaky way for some traders to spread a broader message of what is going to happen in the future (I know, wishful thinking)? All I know is that the cancellations that occurred cost people money, and we should continue to watch this story as it develops because there could be a lot more meaning to this then is first apparent. Tread carefully my friends, there are some mighty big forces at play here.

Zero Hedge: ICE Cancels DXY Trades After "Impossible" Action Moves Index 9% Higher, $ Plunge Enforcement Team Arrives At Crime Scene

Gold Can Make You Poor! (This Guy Is Serious)

2009-11-20T03:51:00.001-08:00

So this morning I had the pleasure of reading one of the worst articles written about how Gold can make you poor. He speaks of buying at the peak of the Gold price and being poor for the next 20 years. Earth to Ian McGugan: you lose money when you buy at tops, and especially at artificially created tops. You might want to research Nelson Bunker Hunt, and you might want to consider an artificially strong dollar tends to do that to commodities.

The problem with Ian McGugan's myopic post is that he approaches the subject like he is a Wall Street Investor, he prices everything in dollars. The problem is that most precious metal volatility is due to currency swings. Why is Gold setting records all the time? Because our currency continues falling in value! Gold isn't supposed to "make" you money in the long run, it can in the short run, but in the long run it is supposed to give you an inflation adjusted equivalent.

But Ian, you can have your paper. The chart below indicates that 77% of fiat currencies have failed in history, but Gold is still here. And the stock market that you champion so much is back to the same levels it was at in the late 1990's. So you'd still be waiting 10 years, or we can play your favorite game and say that if you bought at 14,000 you'd have lost a ton of money now!

Just remember Ian McGugan, many commodities follow a similar pricing pattern, and it is no secret that commodities have had it rough because of the Dollar's strength. If you can't see value priced beyond Dollars then I agree, you should stay as far away from commodities as possible because you will likely lose your butt. Here is a little something to think about, I bet all of the people who invested in Enron would have gladly taken half of their holdings in Gold, the same with Bear Stearns, Lehman's Brothers, Linens n Things, Circuit City, Bernard Maddoff, and hundreds of other companies that have failed in the last two years.

No one, in HISTORY has ever lost 100% of their money buying real, physical Gold. So, on that note I declare:

PAPER CAN MAKE YOU COMPLETELY, 100% POOR!

http://www.financialpost.com/story.html?id=2245143

H1N1 Watch: N95 Masks Are In Short Supply

2009-11-19T06:21:00.000-08:00

There are reports coming in from around the country suggesting that N95 masks, which are considered to be fairly effective at preventing the spread of H1N1 (Swine Flu) may be in short supply. Due to the continuing reports of increased infection throughout the world people and hospitals have begun to stock up in the event of a much larger outbreak. It looks like you may want to stock up while Wal-Mart, CVS, Walgreens, and various other stores still have them!

http://minnesota.publicradio.org/display/web/2009/11/05/n95-masks/

H1N1 Watch Articles:
Florida Forced Quarantine
President and NY Declare State of Emergency
Retired Chief Medical Officer Speaks Out About "Vaccine"
Over 50% of US Adults Say No To H1N1 Vaccine

H1N1 Watch: Over 50% of US Adults Say No!

2009-11-18T16:40:00.000-08:00

According to CNN.com over 50% of US adults have said they don't want, nor will they take, the H1N1 vaccine, and with good reason: They are scared of side effects. Who wouldn't be worried when there's Mercury in them? I mean, we aren't even allowed to have thermometers with Mercury in it, let alone having it injected in us. Apparently Mercury is only no poisonous when CDC and WHO say that it is safe to be injected in you. Cheers to all who have awoken to the scam that is the H1N1 "vaccine." As far as we're concerned, this vaccine will protect you from one thing and one thing only: A longer life.

CNN Article: http://www.cnn.com/2009/HEALTH/11/18/poll.h1n1.vaccine/index.html

H1N1 Watch Articles:
Florida Forced Quarantine
President and NY Declare State of Emergency
Retired Chief Medical Officer Speaks Out About "Vaccine"
N95 Masks May Be In Short Supply

Fake Gold: China and Ethiopia. Could You Be Next?

2009-11-18T16:16:00.000-08:00

Apparently, the latest fad hitting the Gold market is shipping fake bars. This has been encountered in two countries that we're aware of and, make no mistake, many other countries are most likely standing in their vaults right now looking. The first report was from Ethiopia last year and the second report is about London Good Delivery bars shipped from the United States to China (Cite). Ethiopia had shipped bars to South Africa, and received them back. South Africa claimed that these bars were Gold plated Steel (Cite)!

Ethiopia had located another stash of bars they have that are also Gold Plated steel and I'm sure many more may have been found throughout the world. I'm willing to bet that all of China is wondering about their "Good" Delivery Bars. One can only begin to speculate at the depth and breadth that this scam encompasses. And it probably makes most investors wonder: Is my Gold real?

We'd be quivering too if we were sitting on shares of the GLD ETF.

The Precious Metal Investor Paradox

2009-11-17T16:58:00.000-08:00

I made this flowchart for any newbies that may not understand how purchasing precious metals works.

Cash4Gold And The Class Action Law Suit

2009-11-13T11:27:00.000-08:00

A class action law suit was filed in California against Cash4Gold because their jewelry was either "lost in transit" and only insured for $100.00 or their checks were mailed too late for them to get their Gold back. This sounds awfully similar to the 10 Confessions of a Former Cash4Gold employee. Feel free to review an article we wrote previously exploring the question: "Is Cash 4 Gold a Scam?" We can't say whether it is or not. But like many Grandfathers once said "If it walks like a duck, and talks like a duck, then..."

More Info on the class action suit:
http://www.israelidiamond.co.il/english/News.aspx?boneId=918&objid=5980

Does Your Mansion Cost You $74,000.00 a Month?

2009-11-11T09:31:00.000-08:00

If your name is Mark Yaffe then the answer to that question is: yes! You might know Mark as the embattled President of National Gold Exchange (NGE) A rare Gold and Silver coin dealer, but his multi-million dollar mansion is embroiled in dispute by his bank. What is the monthly upkeep of this mansion? If you guessed $74,000.00 you're correct. The $25 million dollar mansion is 29,000 square feet and contains 13 bathrooms and 14 fireplaces, because that is exactly what you need in 85 degree year-round Florida - 14 fireplaces. For pictures and more information you can view the below link.

View Picture And Story Here

Healthcare Watch: House Passes Healthcare Bill H.R. 3962

2009-11-08T04:54:00.001-08:00

With a vote of 220-215 the US House of Representatives passed the Healthcare bill. It's sad to see that more than half the house wants to further destroy our country. How do you pay for a healthcare program when you have no money? I hope this bill dies in the senate or God help us all. I can't imagine trying to pay for yet another beastly program when we're having to request debt ceiling raises! Not to mention that Pelosi wants to send you to jail for 5 years if you don't comply. What kind of socialist garbage is that? This is the land of the free, this is the country where you should be able to decide. But no longer my friends, no longer can you choose. You must stand in compliance to the socialist gun that Pelosi holds to your head.

http://www.foxnews.com/politics/2009/11/07/house-passes-health-care/

A Break From All of The Bad News

2009-11-07T08:54:00.000-08:00

This is a video to remind us of the simple things in life that make dealing with a lot of the garbage that we see everyday worth it.

H1N1 Watch: Retired Chief Medical Officer of Finland Says H1N1 is "Rubbish"

2009-11-07T07:24:00.000-08:00

This is a very sobering video of Dr. Rauni Kilde stating that H1N1 is pure "rubbish," that it's being perpetuated by "big pharma," that it is meant for "depopulation," and that there appears to be a split in the Bilderberg group over the plan and not everyone agrees with Kissinger's opinion of the "useless eaters." You can watch the video below and you can also view the 1974 Kissinger report (NSSM 200) that talks about over population and the need for bringing it down. Without further adieu, here is the video of the Former Finnish Chief Medical Officer:

H1N1 Watch Articles:
Florida Forced Quarantine
President and NY Declare State of Emergency
Over 50% of US Adults Say No To H1N1 Vaccine
N95 Masks May Be In Short Supply

AIG profitable?

2009-11-06T10:51:00.000-08:00

According to Money.CNN.Com, AIG is Profitable again! I'm glad to hear that happy days are here again, except... wasn't AIG "profitable" just before the credit default swap debacle? So this supposed "great news" lends me to wonder: What parlor tricks could they possibly be using to try and keep the very charitable, big raise giving, drunk on their too big to fail status, throw a party after the tax payers bailed them out AIG going?

From CNN.com (commentary added by us):

"The troubled insurer said it continues to benefit from stabilization in the housing (what housing stabilization?) and credit markets (you mean the ones that are so frozen that small and medium sized businesses still can't get loans?), but future quarters will continue to be volatile (at least a little truth)."

http://money.cnn.com/2009/11/06/news/companies/aig/index.htm?postversion=2009110609

Obama Unemployment Would Not Exceed 8% With His Plan

2009-11-06T10:33:00.000-08:00

The stimulus passed and where are we? 10.2% Unemployment! Any who believed in Obama's change I hope has woken up. He is just like all the other politicians. Just watch some of his videos like this one below. To save you the time just skip to 1:10 in it so you can hear him say that without his "stimulus" unemployment would reach double digits. Well the stimulus passed... WE'RE HERE!

We are without jobs, we are without a balanced budget, we've got banks falling left and right, we've got an insolvent FDIC, we've got record foreclosures, we've got the Fed monetizing our debt, we've people dumping the dollar (Most notable recently is Warren Buffett buying the railroad and China buying tons of Gold and Copper.), we can't raise the rates because of all of the ARMs that are resetting. America: WE ARE PAINTED INTO A CORNER.

If we don't raise interest rates we will have inflation, if we raise interest rates we'll have another housing crisis. If you aren't preparing for the worst then you will be sorely dissappointed in the future my friends, because we haven't seen anything yet!