BIGPISA Britain, Italy, Greece, Portugal, Spain, America.

BIGPISA Britain, Italy, Greece, Portugal, Spain, America. A few more could be added. Australia is one of them, we have 4 major Banks up to 60% invested in Real Estate, 40% of that being financed from abroad.

I enjoy hearing Gerald Celente’s & others. ‘Reality Shots’ on FSN,Financial Sense Newshour with Jim Puplava some people are absorbing and reacting, though not enough to reverse the inertia the Powers That want to Think For Us have set in motion.

Its now almost 10 years since I watched the WTC crumble into a neat hole, we still don’t know who put the Shorts on the Airlines, and about 500 other unanswered questions. The people might be angry, yet they are also in Denial. A deeply held addiction to keeping this Blind Faith in Government. AE911Truth.org

I know all about Addiction & Denial, its power overcomes the Will, even when standing in the rubble of their lives only about 5% ever escape. Hence the possibility of a Third Party / Popular Movement that can succeed against ‘The Syndicate’ is a very low order of chance.

Both in Europe and USA the rights enshrined in concepts of Freedom, Free Markets, Speech have already been quietly removed. Democratic / Republican
/Liberal / Labor makes no difference. The Patriot Act… how they must have laughed when that one went through. It matters not to the Legislators, they all think they have a Golden Ticket, when the inevitable System Failure, Blue Screen of Death pops up the Syndicate will let them stand to fulfill their last function in Government.

Their role as the front men getting punished , Pilloried on CNN etc. While the ‘White Shoe Boys’ as Celente calls them head out for their prearranged safe spots. (Probably Underground ).

The boys won’t wait for a ‘Black Swan’ to crash it all, its always better to be in control, the next event will be a Lehman Bros collapse of Sovereign level, either the UK or Japan. America will have its Guns out, if we can’t print a Quadrillion Dollars ..F U.. try to get it out of us. Bye the Bye we have a War to expand and a Nation under Martial Law.

China and the other players left holding Trillions in worthless paper will be worrying about keeping their 1.5 Billion people from getting out of hand.

The aim since WW1 has been Global control, not of Government but of money, our paper money will be replaced over a long Bank Holiday, the fear stricken, hungry brainwashed masses will praise these new false Money Messiahs. They saved the World. The Internet has been the primary reason they have so far failed. We are dealing with Fascists,



I hear voices calling for Censorship of the Internet. One where we don't even know who's on the list. Why? To protect the Children. This is not confined to Australia. The Net is the last Bastion against those who are determined to destroy the Worlds Currency, that and Gold Buyers.


Its always been the same old story, the ‘plot’ started 400 years ago, the methods are thousands of years old. Finance both sides then come in with Carpet Baggers.

I know people, I have seen how easy it is to Shepard them. I started buying Silver & Gold at the start of 09. I have bought some Bullion mostly but now thinking in Coins, the markup sucks but I figure an ounce of Silver in a negotiable quantity / clearly real Silver is possibly best now. A 1 oz Silver Coin under $30 AU is still cheap, buying Silver is a Long Game.

When the final Act of the ‘Program’ plays out the Paper Money of Europe, UK, USA & Australia will be worthless, Regardless of a Housing Crash sooner or later. I bet early 2012 for that, the Big Players will take their winnings of the table first. The US$ is doomed, that is almost Logically undeniable, if it goes, so do the other or Visa Versa.

I believe in times to come; 10 or 15 or even 20 years away. Silver will be as valuable as Gold, disruption of the Global System will trash exploration and the mania for real assets will have people looking to preserve their wealth, who gives a sh*t about investing in rigged games, wealthy people and average awake individuals will also come to the conclusion that the greatest Financial challenge in the 2010’s will be preserving what is yours and being able to pay for what you need in a real money.

95% of Investors are not in that mind set yet, many will be to late. We will know the winds of disaster are blowing by the flight to Gold Silver Platinum and eventually Palladium. ) + Other REO;s. Low volume on stagnant Exchanges, a slow awakening by the Western World that the Recession is not over, the Depression just beginning. And an inkling in the minds of some that they have lived through the greatest Con Job ever pulled over the perception of Humanity and what was really going on behind their back as they waved their 2 Party Flags.

Good Luck to All. Nothing is how it seems, you think Economics is the only branch of Science & History that needs Debunking? Do you understand how a Skyscraper can collapse at close to Terminal Velocity?

Regards David > Melbourne > previous resident of Texas USA

One last PS: 'They' are not fools, its about Power not Money, they still have a Card up the sleeve, that's best left for another day.

GOLD & FRACTIONAL RESERVE BANKING OF UNALLOCATED BULLION.

GOLD & FRACTIONAL RESERVE BANKING OF UNALLOCATED BULLION.

I have listened to "The Great Gold Debate" on the Financial Sense Newshour with Jim Puplava & try to draw a reasonable conclusion from the statements of both Adrian Douglas and Jeffrey Christian. The paragraphs below are direct quotes from articles written by each. The Debate: http://www.financialsense.com/fsn/2010.html

Adrian Douglas: How much imaginary gold has been sold?


In the last 14 years the supply of dollars has increased from $4 trillion to $15 trillion (+275 percent) while the gold price has risen from $400 in 1995 to $1,000 in 2009 (+150 percent).


….”There has to be an alternative massive supply of gold to make the price rise slower than the influx of dollars.”

……. “When the GLD trading characteristics are applied to the OTC daily trading volume, it gives an implied minimum inventory stock level of 64,000 tonnes. Given that the actual inventory cannot be more than 15,000 tonnes, this tells us that 49,000 tonnes of imaginary gold has been sold. That is to say "unallocated gold.”

…………….”This lends credibility to at least the ballpark level of our estimate. It means that about 50,000 tonnes of gold has been sold that is in excess of actual real stocks. This does not include all the lookalike scams of pool accounts, gold certificates, unallocated brokerage sales, ETFs, etc., which might be another 10,000 tonnes.



So the order of magnitude of the net short position of gold in the world is 60,000 tonnes. This is against a total possible claimed gold supply of 30,000 tonnes from all central banks, a figure GATA believes is now less than 15,000 tonnes."
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CPM Group Jeffrey Christian's Final Response to GATA



…..However, “Gold also is a financial asset that is banked. In bullion banking jargon, this is called an unallocated account. Just like cash deposited in a checking account, the bank represents that it has enough assets to service the expected volume of withdrawals, but it doesn’t necessarily have enough bullion to allow all the depositors to withdraw all their gold all at once. many gold “certificate programs” are unallocated bullion accounts.”


“This is well understood by professionals in the industry and by most investors involved in these assets. Again, it should come as no surprise to anyone with bona fide credentials as an expert of any kind in the gold bullion marketplace. Yet GATA has tried to portray the fact that banks are required to hold only a portion of their gold assets, as they do money, as somehow being scandalous."

(Emphasis added, David) "END QUOTES"

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CONCLUSION:

To my non-Accountant mind, Christian states that Banks treat Unallocated Gold as they would ‘unallocated money’, the probability of Fractional Reserve Banking of Gold is 100%. The question remains one of what the ratio is 4:1, 12:1 or would they be even more irresponsible based on past experience.

I find it hard to believe Bankers could resist the temptation to exploit the asset and use the paper to manipulate prices when opportunity arises.

Personally I bet its about 12:1 or 180,000 Tons. 5,787,134,382 Billion Oz @ $1000 per Oz that’s ah? 5.7 Thousand Billion or $5.7 Trillion give or take a billion.

Thinking from the Banks point of view, would it be logical that the ‘Paper’ funds deposited with the Bank for unallocated Gold the money received from the Investor would be added to the Banks bottom line of assets. From that point on the paper for the Gold turns back into a Ledger entry. The Banks lend money based on their Capital multiplied by the Fractional Reserve method over time.

The Banks are not doing anything out of the normal from their point of view, keeping only enough Gold to meet Allocated Redemptions and a few demanding customers would be sufficient.

This lends credence to the theory that Banks act to suppress the price of Gold to:

1) Discourage people from redeeming Physical Bullion not in existence.
2) Keep the price from costing their bottom line by having to pay more to meet redemptions. (Do they act in a manner that stretches the Law or is their no Law to prevent them using the Gold on their books as they would with a cash deposit.
3) Prevent a feedback loop in the Gold price if Gold was considered a ‘Hot’ investment and the demand on their supply of Physical Gold was to escalate.

Plenty of logical reasons that explain how both parties believe they are right and the primary questions are.

??: IS ‘FRACTIONAL RESERVE GOLD BANKING’ REAL AND DO THE BANKS AND FUNDS ACT ILLEGALLY TO MANIPULATE THE MARKET BY VIRTUE OF SIZE AND OPACITY?

At 12:1 and $5 Trillion at stake, greed might allow standards to slip a bit? Even at 2:1 its about a half a Trillion. The Banks have a lot of motivation to keep a nice balance of incoming funds for Paper Gold, a slowly rising volatile price to keep the funds coming and allow for big profits regardless of the Market direction. Meanwhile investing the Trillions of Funds Assets into other profit markets.

As always please check my Math and post re any false assumptions I may have made.

The Ultimate argument in favor of holding Gold and Silver is the evolution of the GFC , now a 'Sovereign Debt Crisis' soon to become a 'Global Currency Crisis'. This will occur when people who have spent lifetimes accumulating wealth see no safe haven, Cash is only as good as the country behind it. Real Estate is on a downward sloap, Bonds, Stocks etc all have uncertainty and the fear generated by uncertainty.

Sooner than later investors will go to basics, almost a racial memory of holding the only real store of wealth. (Forget profits just holding your wealth will be #1 priority). Gold and Silver are the only investments that make any sense.

Considering the fundamentals of Silver (low supply above ground, critical Industrial use, perception of value as currency. Personally I believe Silver will reach $100 an ounce in 3 to 5 years. Depending on how long the Financial System can keep standing on ever increasing amounts of paper money.

With a Quadrillion of Derivatives floating around and Trillions of created money entering the system an end is inevitable. What we avoided after Lehman Brothers will come back as a Credit Crisis of Global Proportions. Not only will Banks not trust each other, they won't trust the paper money from the USD to the Euro or UK Pound.

Now will the average person, finding themselves at closed ATM's, or more probably restrictions from Government on withdrawing your money. We will have an Inflating Currency

parallel to a Deflating Economy the real Economy separating from the paper backed and Electronic systems.

The Kaos will be proportional to the time it takes to purge the system and create a new one backed by a basket of real assets.
World Governments have been doing everything they can to push the time further down the road. Like a Bulldozer pushing soil it will take more to move less.

What mystifies me is that there are intelligent people in Government that must know where this will lead (Quantitative Easing, Stimulus etc) we cannot attribute it to Keynesian and Austrians thinking a bit differently. I would propose the Powers That Be are simply sucking the system dry while they can, robbing the Museum during the War no ones able to see past the smoke.

When they have taken all that can be got...they walk away and leave the world to sort itself out. If you don't believe Conspiracy Theory relating to the Financial world and the evolution of systems to remove Legislation and oversight, create the federal Reserve Banks, all to enable the very few to exploit the majority. You would be ignorant of a long history of these events.

There has been no fundamental improvement of the Human Nature, we are in WW3 and have been since 911 when the present unending War was created. "Beware the Military Industrial Complex" Eisenhower was telling us something, he knew that few would listen.

$51,055,587,000,000 Outstanding Debt Means No Recovery

I Hope I Have This Wrong……

In my efforts to self educate on subjects Economic I have spent a lot of time reading Newsletters of various perspectives. Majorities are from Analysts offering their services in making money in ‘Bear’ Markets. Peter Schiffs “Crash Proof & Bob Pretchers ‘Conquer the Crash’. Both Authors have one clear prediction for the future and it matches any horror story I have read in terms of provoking thought born of fear.

I understand from simple observation that no one bar the most deranged individuals believes a recovery is actually happening. The story is easier to believe living in Australia where the “Greatest Financial Crisis in History” hardly affected us. Yet I know that around the time of Lehman Brothers collapse and the days following it was quite possible I might have woken up to find the ATM offline and the entire Global Banking system in ruins.

I have read the story of Lehman’s (‘A colossal failure of common sense’) I know at the time they were leveraged at something like 44:1 in Derivatives they were entangled with and a Stock price that went from $80 to nothing. I can understand that a lot of Shareholders lost a lot of money. As with Bear Stearns. I quote Ellen Brown of Global Reserch “Before it collapsed, Bear Stearns was the counterparty to $13 trillion in derivative trades”.

My question is what about the Derivatives ? Lehmans and Bear were not the only ones pumping these instruments through the system for the years leading up to the Crash.

I have recently read that over 74 Trillion in Derivatives are still out in circulation; the Author quoted his information from the Bank Of International Settlements. 74 Trillion is several times the Worlds GDP. Its also the lowest estimate I have heard; others claim as much as 140 Trillion is closer to the number.

I went to the BIS Web Site and most of the PDF Tables were unintelligible to me. I did find one that showed Developed Countries at $20,679,877 & Europe with $13,100,908 in Millions of USD these two alone = $33,780,785 Millions of Dollars if I add the appropriate 6 Zeros we get $33,780,785,000,000 throw in the “Other Exposures” $51,055,587,000,000 The number is staggering. The few Trillion of of injections by World Governments hardly even scratch a number that big.

I have to conclude that at present these debts are being circulated around or being kept out of the real Economy by a sort of Financial Musical Chairs the missing chair being provided for by similar forces that created the 14 Digit Number.

A person does not need much Economic knowledge to figure that it would take only a small hiccup and we will wake up to the disaster that was so brilliantly averted by our leaders. What seems to be happening now is the markets are moving sideways, virtually everyone is aware of the Elephant in the room but would rather stay in that most Human of all states when faced with a chronic problem, Denial…..

I will attempt to include one of the tables here, I had to use a Screen shot as they are in PDF and not separate images. The question I would like help with here is for some of you more educated in the subject to have a look your self’s and please tell me I have got this all wrong.

David

#“All of that seems right to us so far. The deflationary argument depends on the collapse of both the shadow AND the real (deposit taking) banking system. The shadow banking system is the murky world of credit, securitisation, and derivatives which currently supports and/or holds some $600 trillion in assets. Yes that's trillion with a T.”

#The Daily Reckoning Australia (Dan Denning)

The Power Of Denial in Market Psychology

The Power Of Denial in Market Psychology



A great deal has been written about Denial in the treatment of addiction, Alcohol, Drugs, Food and Gambling to name a few. Out of 100 average individuals presented with unpleasant or repugnant probabilities; i.e.: “You will die if you continue this behavior” 90 percent of people switch off. They may listen and even agree with the statement, however taking any action, breaking an entrenched habit is not going to happen.


How many Economists and Traders when presented with the information about a possible breakdown of the Worlds Financial System back in 2006, stopped and dispassionately considered the facts and took appropriate action? There were people a very small percentage making the point and presenting the arguments logically even writing books on the subject.


Human Beings do not want to listen, they will ‘Hear’ but they will not listen. While you talk, they are thinking of the their next statement. The majority of people in charge of the Worlds largest Financial Institutions and the bulk of individuals involved are not stupid. They are generally well-educated intelligent people. Yet accepting and acting upon the unpleasant realities that the future held in 2006 was unacceptable.


Only about 20% of the population has recognizable Addictions, Obese people know what they are doing to themselves yet Denial enables them to eat just one more slice of cake. “I will exercise it off tomorrow”, the Alcoholic thinks “Just the one and I will go home” The Gambler is the same. Those of us without these recognized problems believe that the thinking is confined to just that group of people. This is not the case. Most of Humanity shares the same thinking process. How many wealthy people ignore the rising Blood Pressure and the Ulcer or the disintegrating Marriage? They could quit today but habits are hard to break.


It is with this understanding of the ability of Humans to ‘Rationalize’ their behavior we can understand the failure of so many educated and informed people to keep doing the same thing everyday expecting a different result. When the thought pattern breaks is when the individual is faced with an undeniable situation that in its magnitude and personal implications the person is forced to accept the reality of hitherto possible outcomes. The GFC was such an event. A very few people escaped its effect because they had recognized it prior to the event and took action to protect themselves.


The GFC as with the Great Depression was foreseeable, Climate Change is foreseeable, most people accept Climate Change, most Alcoholics know they are Alcoholics. In Economics the thinking and beliefs of the majority drive the Economy. At this moment in time there are a few voices predicting unpleasant events are yet to come because we are still doing the same things expecting different results.


We call them ‘Contrarions’ because they are in the minority and hold views nobody wants to accept. They predict that more pain is ahead, a disaster worse than the one we just experienced. The majority of these few voices are saying that adding more Debt, sustaining Deposits in the Trillions, supporting Companies & Countries that should be Bankrupt will bring down the Worlds Economy.


Many of us ‘Hear ‘ them, very few are listening. Even fewer are acting. If Investors were acting we would see a run to solid assets, paper money would be devalued or worthless depending on the country. How many of you with incomes over 50K have enough food stored to last 6 weeks? I bet you have Life Insurance. Do you have a Generator? With Natural Disasters as frequent events now?


The above are simple “Insurances” cheap ones compared to buying Burglary or Third Party, or Funeral. I bet that most of you do not even have decent First Aid kit.


Right now a lot of people could save themselves a lot of possible future pain and probably if you take a good had look at where unsustainable Debt is taking you, your family or your country. You would take pause, not have that slice of Cheesecake and promise to work it off tomorrow because that is what we collectively are doing. We are waiting for Tomorrow and for some deeply embedded reason the Human Mind is geared this way. If it was not; then the Dow would be at 1000 not 10,000.