First gold nugget EVER SEEN on CNBC

CNBC snowjob team headline this video as “Invest in Ancient Money”. Ancient money? Wouldn’t you rather own ancient money than obsolete money like euros or USDs? Only the first 10 seconds of this useless video are interesting. Gold or bonds? Neither pay any dividends but which one has credit risk?click here

More gold snowjobs again on CNBC. Here at “gold parties” woman of Orange County sell bling for cash. What do these woman do with the cash? Who knows, but more gold just moves into stronger hands and likely out of US hands. click here

Has the deflation/deleveraging theme worn itself out?

Corresponding with near universal boredom of the deflation argument, the base metals have been showing symptoms of selling exhaustion. Pesky, unpatriotic hedge funds who ran up commodities in the first place are finished meeting nasty margin calls demanded by TARP-approved brokers. Whatever damage the paper world has inflicted, be sure creditor nations like China are furiously swapping USDs for hoardable metals. Not to be converted into electronic trinkets and plasma screens for western markets, but for domestic infrastructure with longer term focus. Most base metals are sitting at or below production costs so clearly anybody with money to burn is going apeshit over deals down at the LME. Why bother to mine it at all? Self-fulfilling as it is, capital eating up REAL metal supply is capital NOT spent on exploration and mining.

With little fanfare, or with all available fanfare being used up focusing on Team Hope, China has stopped buying US debt and is pouring zillions into internal stimulus programs. Of course the implications of this are enormous but lets continue to ignore what effects us most and instead, focus on what effects us least.

Teen tot mom killers anyone?

So here are some fascinating base metals charts put together by Richard Shaw on SeekingAlpha
click here

All roads lead to gold

Don’t be so sure to call a short term top in gold just because some hedge fund bought on grandpa’s recommendation. Private sector funds are furiously swapping paper for safe havens before the iceberg bid from Team Hope is pulled. After the grand mugging of 2008, the master financial planner of working class America will have levered their future with insolvent firms and fraudulently valued paper. So while the public’s wages of tomorrow are tied up in this ingeniously malicious buy-and-hold, financial institutions position themselves and their new-found liquidity for the final take down. They have backed up the truck and are loading up on precious metals WITH YOUR MONEY!

Team Hope is set on a course of feel-good inflation. Equities, real estate, and wages may eventually rise but lost purchasing power will be devastating, more than offsetting paper gains in 401Ks. The desperate attempt to shore up equities is an act meant only to quell civil unrest. The banking elite know how difficult it will be to enjoy their booty when their cleaners, drivers, chefs, and groomers are setting the streets ablaze.

Educate yourself and don’t be a fool. If the elite control gold they control you.

More fraudulent accounting turned into law

Give it up for Team Larceny

First, some background courtesy of wikipedia:

Robert Edward Rubin (born August 29, 1938) served as the 70th United States Secretary of the Treasury during both the first and second Clinton administrations. Before his government service, he spent 26 years at Goldman Sachs. His most prominent post-government role was as Director and Senior Counselor of Citigroup, where he performed ongoing advisory and representational roles for the firm[1]. From November to December 2007, he served temporarily as Chairman of Citigroup.[2][3] On January 9, 2009 Citigroup announced his resignation, after having been criticized for his performance.[4] He received more than $126 million in cash and stock during his eight years at Citigroup.[4] In January 2009, Rubin was named by Marketwatch as one of the “10 most unethical people in business”

Making money and managing money are two entirely different professions. What this guy Rubin is really saying is that when these firms are directed by law to properly value their assets it’s a real drag on earnings. Much better to show big profits so the banking elite can keep raking off massive compensation for “performance”.

From Bloomberg:
“I spent my whole life at Goldman Sachs believing in mark- to-market accounting, and having said that, if you look at the experience from the last two years, I think mark-to-market accounting has led to terrible vicious cycles in asset prices,”more here

Battle of the Gurus

Although Marc Faber and Jim Rogers have pretty good track records, I gotta say Faber’s latest comment that gold is overvalued relative to other commodities is absurd. That’s really like saying the USD is undervalued relative to other commodities and NOBODY is saying that! It’s equally absurd to toss in gold with the rest of the commodities. This is the only commodity NOT consumed.

Faber, the original gloomer, must have screwed up a trade or two recently and now can’t get back into gold. Rogers on the other hand won’t budge on his losing long bond trade, but ultimately he will be proven right.

Faber talks here