Daily Digest

Daily Digest 2/17 - The Politics Of Inflation, Peter Stansberry On America And The Dollar, Why Isn't Wall Street In Jail?

Thursday, February 17, 2011, 11:45 AM
  • "The End of America”: Porter Stansberry Sees the Future ... And It's Grim
  • Tips to Protect Yourself From a Worthless Dollar: Porter Stansberry
  • Why Isn't Wall Street in Jail?
  • Daring UsTto Buy Those Dips Again
  • Politics of Inflation
  • Ex-Freddie Mac C.F.O. May Face Civil Charges
  • From Japan: An Interesting Comment On U.S. Economic Planning, the Dollar, and Peak Cheap Oil
  • Futurist Ray Kurzweil Isn’t Worried About Climate Change

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Economy

"The End of America”: Porter Stansberry Sees the Future ... And It's Grim (woodman)

In a shocking video entitled “The End of America”, Stansberry paints a very grim picture of the future of the United States. According to Stansberry & Associates, the Web video has been seen by more than 7 million people since its launch late last year.

Tips to Protect Yourself From a Worthless Dollar: Porter Stansberry (Dana)

Stansberry predicts stashing money will become increasingly difficult in the near future. "There are already laws on the books that go into effect in 2013 that will make it much more difficult for Americans to open overseas bank accounts," he tells Aaron Task in this accompanying video, referring to portions of the HIRE Act that impose a 30% withholding tax on certain types of U.S-source income and gross sales proceeds to foreign financial institutions.

Why Isn't Wall Street in Jail? (jkibbe)

Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world's wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.

Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

Daring us to Buy those Dips Again (Ilene)

UK inflation rose to 4% in January and BOE Governor King now expects the trend to rise to 5% in the coming months. That's not very good for a Central Bank with a target rate of 2%. This MIGHT be a temporary situation because German Q4 GDP was actually 20% lower than expected, at 1.6% vs. 2% hoped for. Europe is still a major mess and the EU finance ministers just agreed to double the "Permanent Rescue Fund" from $332Bn to $675Bn.

Politics of Inflation (Joe P.)

When quizzed about whether his policies contribute to commodity and food inflation, Bernanke argues that the Fed’s policies have only influenced equity prices to the upside, not commodity prices. While that logic is unlikely to convince a preschooler, the Fed chief goes on the defensive to defuse the argument that his policies may actually be destabilizing the Middle East and Asia, where a high portion of disposable income is spent on food. With regimes toppling left and right, Bernanke must feel he is carrying the weight of the world on his shoulders.

Ex-Freddie Mac C.F.O. May Face Civil Charges (jdargis)

Mr. Piszel left Freddie Mac when the federal government placed the two agencies in conservatorship in September 2008. He later became chief financial officer at CoreLogic, a financial data firm.

Energy

From Japan: An Interesting Comment On US Economic Planning, the Dollar, and Peak Cheap Oil (Adam)

I am not quite sure I know the answers about peak cheap oil. But what I think I know is that the challenge to the US is an inability or an unwillingness to think and execute strategically, ie. long term, in non-military matters. I believe this is a result of its system which is heavily oriented towards short term economic incentives, regional military conflicts, and financial speculation.

Futurist Ray Kurzweil Isn’t Worried About Climate Change (Jeff B.)

Most of Kurzweil’s prognostications are derived from his law of accelerating returns — the idea that information technologies progress exponentially, in part because each iteration is used to help build the next, better, faster, cheaper one. In the case of computers, this is not just a theory but an observable trend — computer processing power has doubled every two years for nearly half a century.

Kurzweil also believes this theory can be applied to solar energy. As part of a panel convened by the National Association of Engineers, Kurzweil, together with Google co-founder Larry Page, concluded that solar energy technology is improving at such a rate that it will soon be able to compete with fossil fuels.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

27 Comments

saxplayer00o1's picture
saxplayer00o1
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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

""Any monetary system would show strains and fragilities in the face of such massive structural change," Carney told the Institute of International Finance, a bankers group, ahead of a meeting of G20 finance ministers and central bank governors.

"The French presidency's initiative to put reform of the IMS (international monetary system) on the top of the agenda is absolutely appropriate," he said.

French President Nicolas Sarkozy has called for a "new Bretton Woods" system for the 21st century. One aspect of that reform would be a move away from the dollar's preeminence as a reserve currency and consideration of the longer-term use of the IMF's Special Drawing Rights (SDRs) as a reserve asset."

"New York Mayor Michael Bloomberg will present a preliminary budget for next fiscal year today that proposes reducing the city’s 80,000 teachers by 6,166, including 4,666 dismissals, administration officials said.

An improving economy has helped pour about $2 billion of unanticipated revenue into city coffers, though it’s not enough to avoid personnel cuts, said the officials, who have seen the proposal. In November, Bloomberg said he would eliminate 10,000 of the most-populous U.S. city’s 300,000 workers to close a $2.4 billion deficit in a $67.5 billion spending plan."

"CARSON CITY, Nev. (AP) -- A day after University of Nevada Las Vegas president said the school was on the brink of financial collapse, the chancellor of Nevada's higher education system echoed his message.

Chancellor Dan Klaich told the Senate Education Committee on Wednesday that while declaring financial exigency would be a last resort, the message was realistic.

On Tuesday, UNLV President Neal Smatresk said Gov. Brian Sandoval's proposal to cut nearly $48 million from the schools' budget could force it to declare financial exigency, a move compared to declaring bankruptcy."

"HARRISBURG, DAUPHIN COUNTY — Harrisburg is running out of cash. According to Act 47 Recovery plan Coordinator, Julia Novak, the city is spending money faster than it is taking it in. Act 47 is a state program aimed at helping the city avoid bankruptcy. In the course of developing a full recovery plan, the Act 47 team uncovered a major problem for the city. In a Valentine's Day letter to Mayor Linda Thompson and City Council President Gloria Martin-Roberts, Novak warns that a cash flow crunch could come in about two weeks, in March. "

"Underemployment surged to 19.6% in mid-February from 18.9% at the end of January"

  • Other news, headlines and opinion:

Bahrain Leads Surge in Mideast Debt Risk as Unrest Escalates

Portugal could face double-dip, bailout

Bank Lending from ECB Skyrockets

Spanish Bonds Fall as Country Sells Less Debt Than Planned

Quinn proposes cuts, $8.7 billion in borrowing; speech gets mixed reviews (Illinois)

Thousands march in Wisconsin over proposed budget cuts

Governor's 'Default' Claim Questioned (Maine)

MERS to members: Don't foreclose in our name

Protests Spread to Libya as Unrest Roils Bahrain, Yemen

School District Cuts 778 Jobs, $24.4M In Anticipation Of Reduced State Budget (Long Beach)

1400 City Jobs at Risk of Being Cut (Memphis)

Funding cuts may mean huge district deficit (Wyoming)

$60M deficit makes school budget picture grim (Florida)

City bracing for fed, state cuts (San Antonio)

Schools face more financial woes (Pennsylvania)

Unemployment benefits jump to 410,000

Texas Considers Early Paroles As It Faces Massive Budget Deficit

Downgrades loom for US states

65 St. Louis Police Jobs Could Be Cut

Cotton Rises Above $2 for First Time as Supply Tightens on Chinese Demand

Wheat, Corn, Soybeans, Rice Climb in Chicago Trading on Demand

Banks to be sanctioned for foreclosure violations

 

mainebob's picture
mainebob
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End of America Peter's $49 deal...

I posted the link here on CM two weeks ago:
The End of America - Porter Stansberry Research

http://www.peakprosperity.com/forum/end-america-porter-stansberry-resear...

It is gloom and doom to promote his $49/year product if you wait it out
to the end of the video... or just go to this summary page that comes
up if you try to close the video window:

http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSIM1AJ/PR

While the gloom and doom may be true, I think it would be important
to be clear and transparent up front... "Hey,  I'm gonna paint a gloomy and doomy
picture of the world and then sell you my reports on how you can make grand
profits."

I'm not willing to pay for this "scare monger" product and wonder if
someone who did buy and become a member ("no debit cards" for purchase)
could summarize the answers to the four steps/strategies mentioned in the video:

STEP #1. GET SOME OF YOUR MONEY BEYOND THE REACH
OF THE U.S. GOVERNMENT (it's perfectly legal,
and a lot easier than you think)

STEP #2: HOW TO ACQUIRE THE WORLD'S SAFEST ASSETS,
WHICH ARE LIKELY TO PERFORM BEST DURING THIS PERIOD.

STEP #3: LEARN THE 100% SECRET

STEP #4: MAKE SURE YOU OWN THE ONE ASSET THAT CAN
HELP SAVE YOU AND YOUR FAMILY, NO MATTER HOW BAD THINGS GET

===
I really appreciate CM's approach over this type
of fear mongering.

-Bob

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Re: End of America Peter's $49 deal...

Hi mainebob.

Drives you nuts doesn’t it?. ... a ‘mystery’ :)

I watched the End of America video and simply couldn’t resist subscribing. It was like, £30 GBP or whatever, for me and too much of a ‘mystery’, especially with regards Step#4 not to hear what this guy has to say.

The reports are detailed and well written.

Below is a very brief summary of the points you required clarification.

 

STEP #1. GET SOME OF YOUR MONEY BEYOND THE REACH
OF THE U.S. GOVERNMENT (it's perfectly legal, and a lot easier than you think)

Summary: A very extensive ‘how to’ guide on the following main points.

TIP No. 1: Open a Foreign Bank Account – Soon

TIP No. 2: Buy a Little Bit of Land (Or lots if you can)

TIP No. 3: Create a Trust to Protect and Build Wealth

TIP No. 4: Gold in the Bank (Off-Shore)

 

STEP #2: HOW TO ACQUIRE THE WORLD'S SAFEST ASSETS,
WHICH ARE LIKELY TO PERFORM BEST DURING THIS PERIOD.

Summary:  Very detailed description on secrets of the Gold Market and especially the Silver Market. Indicating companies that are involved in the processing of silver, namely “silver streamers” essentially companies that purchases the silver by-product from base-metal miners and then process the silver to make it ready for refining. A 'middleman' in the silver market that it can’t seem to do without.

(Note: Made a lot of sense, very interesting and potentially, very high yield investment opportunitys and worth £30 in its own right, as a ‘tip’ but i dissagreed with instances where ETF's are mentioned as a possibility, but thats just my own opnion. however Physical Bulion is  stressed as a priority)

 

STEP #3: LEARN THE 100% SECRET –

Summary:  Very detailed description on ‘how to’ trade and sell short term put options – or ‘naked’ put selling...

(Note: Very interesting but I won’t be doing any trading like that because I don’t have the nerve...yet)

 

STEP #4: MAKE SURE YOU OWN THE ONE ASSET THAT CAN
HELP SAVE YOU AND YOUR FAMILY, NO MATTER HOW BAD THINGS GET

Summary:  A detailed description on the fact that ‘Productive land’ has actually outpaced any other asset class especially in times of trouble. Recommends to buy as much productive land (Or land that can easily be made productive) as soon as possible.

 

Thanks to Chris Martenson we already owned a s##t load of physical Gold and Silver and we bought a lot of land recently (I just totally love working on it and I’m probably going to manage it full time)

So I had to laugh after these ‘tips and secrets’ were revealed.

Don’t get me wrong, it was all very validating for me personally,  i have already ‘Done’ most of these fundamental actions.

 

With regards Stansberry & Associates, the information and the ‘Secrets Revealed’ I consider to be a fair exchange. I didn’t mind parting with my money for this because i consider the information disseminated is logical, correct, and i actually learned quite a few things. If people are influenced by  to take these steps they will protect themselves against the financial / social meltdown that is likely to occur. So on the whole the guy is not far wrong.

 

However. I will add, i much prefer Chris Martenson’s approach to dissemination and the Three E’s...

Hope that helps.

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saxplayer00o1
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Fed's Evans again says inflation too low;Foreclosures tie Record

 

"WASHINGTON (MarketWatch) - Inflation is too low and may stay below the Fed's target of 2% growth through the end of 2013, said Charles Evans, the president of the Chicago Fed on Thursday."

"A record share of U.S. mortgages were in the foreclosure process at the end of 2010, matching the all-time high, as lenders and servicers delayed home seizures to investigate charges of improper documentation.

About 4.63 percent of loans were in foreclosure in the fourth quarter, up from 4.39 percent in the previous three months, the Mortgage Bankers Association said in a report today."

 

Link

silver

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

I was watching the Keiser Report.
(http://rt.com/programs/keiser-report/money-forest-oil-dictatorship/)

Greg Palast is a documentary maker and therefore someone of influence.
He said that the world is not running out of oil, but that the Oil Companies are winking and nodding to each other and holding the oil off the market. He further says that the most expensive oil is $30 a barrel to extract.
He says that the markup is great because of the artificial scarcity.
This is the position held by my son.
We politely disagree.
However this is the opposing view held by the majority.
I will not insult my reader by defending this view.
However can it be true that we are destroying the ecology of Canada in order to maintain the fiction of oil scarcity? Are we that perfidious?

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

Whether we are running out of oil or whether it is a conspiracy to create an artificial shortage, if there is money to be made, someone will gladly destroy the ecology of Canada (or any place else).

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

Based on the EIA's Undulating plateau chart, I don't believe we are destroying Canada's ecology over a fiction of scarcity, however, I don't believe we should be destroying Canadas ecology period.  The land base is our very foundation of survival.  We cannot afford to destroy it over ANY resource.  Oil scarcity is real, albeit not widely known and believed.  Nevertheless, we will be better off sooner if we quit destroying the land base and start living within our means:  that which the land base can produce sustainably.  Sustainably is, by definition, that which the earth can reproduce within the timeframe that a resource is used.  Pick a timeframe, any timeframe.

 

dons

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

I read the Kurzweil article.

What a lovely counterpoint to my bleak outlook.

I do hope that he is right and that I am wrong.

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

 

"I don't believe we should be destroying Canadas ecology period "

I am at one with you there brother.

Further we should have the choice of wether we live off planet or not. If Kurzweil is right then that choice is coming soon. Pretty fantastic notion.

It looks to me as though several asymptotes are reaching a climax at the same time. We are witness to a race by several exponential curves to infinity.

And we will bear witness to this? Wow These are infinitly special times.

This is the best evidence that I have that the whole "Reality Show" is for my benefit alone. This is a real page turner. I am enjoying it.

Thanks Author.

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

Here's an interesting article, appearing in Bloomberg of all places:

http://www.bloomberg.com/news/2011-02-17/jamie-dimon-s-biggest-disaster-is-waiting-commentary-by-simon-johnson.html

Quote:

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., has harsh words for Fannie Mae and Freddie Mac. They are “the biggest disasters of all time,” Dimon told the Financial Crisis Inquiry Commission last fall, according to his just-released interview.

Along with others, Dimon greatly exaggerates the role Fannie and Freddie played in the financial crisis, a theme my MIT colleague, Daron Acemoglu, has written about with great clarity.

Too many bankers assert some version of the refrain: Fannie Mae made me do it. As the FCIC’s report makes clear, it was the private sector that led us into the financial crisis by making massive subprime bets and then using complex derivatives deals to magnify the downside risks.

Nevertheless, Dimon makes a good point in the sense that Fannie and Freddie became too powerful politically, had too little equity relative to their debt levels and took on reckless amounts of risk. They blew themselves up at great cost to taxpayers.

Who are the government sponsored enterprises today? Which entities are too big to fail, in the eyes of lawmakers and regulators, and therefore are receiving implicit, no-cost government guarantees?

The answer is our largest bank holding companies such as JPMorgan, the second-biggest U.S. bank in terms of assets behind Bank of America Corp. This point is made in the latest quarterly report from Neil Barofsky, the special inspector-general for the Troubled Asset Relief Program.

Flawed Metrics

Who has an incentive to increase debt relative to equity in really big ways? Again, it’s the largest banks. The executives in these companies are paid based on their return on equity -- and the easiest way to increase that is to add leverage. Of course, this increases returns only when times are good. It also increases the potential losses when markets tumble. In other words, greater leverage increases risk.

But the global executives who congregated at Davos, Switzerland, a few weeks ago were uniformly optimistic, and further encouraged by cheerleading from Dimon and his financial industry colleagues.

The government’s best intentions notwithstanding, there is no way bank executives will ever be compensated on a properly risk-adjusted basis. In fact, research by economists Sanjai Bhagat and Brian Bolton shows that top private-sector bankers know when to cash out: before all the suckers get crushed. And it is cash that bank CEOs get -- the chief executives of the 14 largest U.S. financial companies received cash inflow worth $2.6 billion between 2000 and 2008.

High Leverage

If shareholders are protected from being wiped out by the implicit too-big-to-fail guarantee, they should welcome the arrival of additional leverage as the economy improves. In fact, as the latest quarterly earnings results appear, the financial press has started to ask Goldman Sachs Group Inc. and other banks why they don’t increase their leverage even more.

Top bankers are also pressing hard for the right to increase dividend payments. That’s effectively a transfer from creditors and taxpayers tomorrow (because of the guarantee) to shareholders today.

Dimon also wants JPMorgan to become more global, especially by expanding more into emerging markets. U.S. Treasury Secretary Timothy Geithner endorsed this approach in an interview he gave to the New Republic, effectively arguing that we should want big, highly leveraged U.S. banks to make large bets on highly volatile emerging markets.

With Geithner firmly entrenched at the Treasury Department and with Bill Daley, former senior lobbyist at JPMorgan, now Barack Obama’s chief of staff, Dimon has all the political cover he needs.

No Progess

Dimon himself has argued that we can’t deal with too-big- to-fail until we have a way to manage the orderly liquidation of big banks. Yet even with the Dodd-Frank overhaul enacted, we still have no process for handling the failure of a big cross- border bank like JPMorgan.

There is no framework -- either through the courts or directly between governments -- to deal with such a collapse, other than through a Lehman-type bankruptcy. So when a big bank next gets into trouble, the choice will be between allowing a meltdown, with presumably awful financial consequences, and providing a bailout, which can have big fiscal impact.

It's really good to know that we learned our lesson.Yell

Doug

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

To set the scene.

Chaos Theory shows that the boundry between two stable states is chaotic. As time passes stable state "A" prevails for a while until stable state "B" flicks in.

A practical example of this is the flickering of a flourescent tube as it dies. It has one stable state, On and another stable state, Dead. The point being is that the transition is gradual for a while( the flouro fades), but then it becomes binary. It is either on or off.

Escher. He is good.

Further chaos theory discovered "Strange Attractors" that make conditions "orbit" a point.

 Well, not only do you have these chotic boundries but we also have this race between exponential infinities coming together at the very boundries. ie Will Earth become a Venus or not?

"Most interesting". (Comment by the Last Samurai as he observed the dying process of his opponent.)

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

Doug,

Why does a scene from the movie Dune spring to mind?

At the end of the movie the "Surdarkar" march into the anti-chamber if the grossly defomed human powers and unceremoniously kill them.

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

On foreign bank accounts. While my investments in India are small, I have been able to renew a time deposit for 1,000 days at 9.5 as a senior rate at The State Bank of India. My next renewals in July appear to be in the 7.5 range for 1 year. I have simplified my food needs and hold to a shopping list that repeats basics. My rainfall ground tank is in and I've discovered flat hose that will suffice for the next monsoon season for the first gutter I will be able to afford and a second outflow pipe fitting for a roof veranda that fits the hose and can rapidly fill a portable 2,000 ltr. tank. Temperatures are in the 90s now with my next month's purchase a bore well pump for the months of April and May with temps. up to 115. So far the dollar is holding at 45+ but I am following reports of a worldwide change in which currency is standard.

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Re: End of America Peter's $49 deal...

TIP No. 1: Open a Foreign Bank Account – Soon
TIP No. 2: Buy a Little Bit of Land (Or lots if you can)
TIP No. 3: Create a Trust to Protect and Build Wealth
TIP No. 4: Gold in the Bank (Off-Shore)

In my Opinion, These tips are terrible:

TIP No. 1: Open a Foreign Bank Account 

1. I don't moving money oversea is a smart decision. The same problems in the US are also the same problems overseas. The US the anchor of the global economy. When it breaks most large economies and currencies will take a severe tumble. For instance, many large countries rely on exports to the US, or have substantial money in US in treasuries, or assets (in the case of Japan, Honda and Toyota have factories, and distribution centers). When the dollar tanks US consumers won't be buying there exports and it will almost certainly take a toll on their economies. Many of those countries will probably follow Bernanke's policy of printing money.

2. I think there is a good chance that foreign banks will seise your money in their accounts after the US dollar tanks, either because foriegn nations will have a liquidy problem, of foriegn gov't prevent money from leaving there borders. They might rule that its your money, but you have to spend inside of there borders, let won't let you transfer money out of the country.

 TIP No. 2: Buy a Little Bit of Land (Or lots if you can)

When the Dollar tanks, Home and Land prices will tank. Simply because no one can afford to buy a home or new land. Land only makes sense if you plan to live there and be able to produce something of value from it, such a agraculture, or perhaps timber for firewood since energy imports will probably disappear or be very expensive.Although, I doubt their will be much of a demand for lumber. You need to produce non-discretionary items using your property. Don't forget about rising property taxes. Better have some cash to pay the tax man, or your loose your property.

TIP No. 3: Create a Trust to Protect and Build Wealth 

This is difficult since it will very difficult to see which business will survive and which ones that won't be nationalized. I suspect that as the dollar tanks, the Federal gov't will insitute price controls to slow the rise of non-discretionary items (food, energy, etc). This will limit profits for most businesses. Other Businesses selling non-discretionary items will likely go bankrupt.

TIP No. 4: Gold in the Bank (Off-Shore)

In my opinion this is the worst option:

1. Gold in foriegn banks will be seized global currencies move away from fiat currencies to currencies based upon commodities. Good luck on getting your money back from them. Not to many people will travel overseas to fight a court battle. You sill have to prove ownership and when it comes to PMs and foreign gov'ts, possiesion by the gov't is 99.9999% ownership. They might just declare your ownership has fraudlent, or you failed to pay a tax or some other fraudent charge.

2. Its likely that the US gov't will pressure foriegn banks to turn over all information reguarding americans with foriegn investments, much as the US gov't did with UBS, Credit Swiss, and other Swiss banks, using that Americans are trying to hide from tax laws. You won't be able to hide your gold from Uncle Sam.

3. Your money will be thousands of miles away, and you may lose complete access to it. Its impossible to know how events will unfold, and you could very well be complete stranded from your overseas gold holding.

 4. Banking fraud. Since you can't see or touch your gold, How do you know that the bank is actually in posession of the gold your bought? I doubt that the PM ETFs really buy the amount of physical metal to back it up.

5. What if the bank lends out your gold, and it never is returned, because the borrower defaults? (ie JPM, and other banks offen use gold lending with the federal reserve - to effectively short gold). When the dollar tanks all gold shorts will fail, leaving lenders of gold (via gold leases) using your gold, in default.

The bottom line is that there is no true safe heaven from a collapsing US Dollar. There will always be risks, and moving money overseas will increase the risks of losing it all, not isolate you from it. PMs should be keep close. If your worried about it, bury it in the backyard and spread ballberings to defeat metal detectors. Buy other PMs such as Platium and Pallidium which are treated as industrial PMs and are less likely to be made illegal.

Another problem is that people like Stanberry are making money by charging fees on the information they have. If they had really good investments, they would already be rich and would have provided the information for free on a website. Buyer beware.

 

 

 

 

 

 

 

 

 

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Gold and silver demand

 

 

"The US Mint sold 6.4m ounces of silver American Eagle coins in January, 50 per cent more than the previous record month, and have already sold 1.7m ounces so far in February."

"Gold investment in China jumped 70 percent last year and consumption by the jewelery sector gained to a record as investors stepped up purchases of the precious metal as a store of value, said the World Gold Council.

Investment demand jumped to 179.9 metric tons last year, surpassing Germany and the U.S., as buyers sought out gold bars and coins, according the London-based industry group. Demand from the jewelry sector was 400 tons, it said."

........................China Gold Demand Skyrockets

.......................China sees 'explosive' investor demand for gold

"Higher consumer prices in the U.S. and unconfirmed reports that China is seeking to beef up its currency, the yuan, by backing it with gold bullion helped move gold prices higher Thursday.

Gold for April delivery gained $10 to settle at $1385.10 an ounce at the Comex Division of the New York Mercantile Exchange. The spot gold price was adding $8.50, according to Kitco's gold index."

 

 

Silver prices hit 31-year high as coin sales rocket

Gold demand in India rose by 66% to 963 tonnes in 2010: WGC

'Physical' gold is new flavour for pensions (UK)

 

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Re: End of America Peter's $49 deal...

TechGuy;

Your points are spot on.   FWIW, no need for me to go into my thoughts on Stanberry's guidance, because you summarized them perfectly.

 

 

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

Thanks guys for the additional info on Stanberry; I take exception to some things he said too.  My purpose in noting the techticker piece was just as a gauge of what is appearing in the more mainstream media and how general perceptions may be changing.

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

I afraid futurist Ray Kurzeil may not be considering exponential growth is only part of the common curve in nature, e.g. for bacteria:

"Exponential growth cannot continue indefinitely, however, because the medium is soon depleted of nutrients and enriched with wastes."

http://en.wikipedia.org/wiki/Bacterial_growth

 

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Arthur Robey
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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

This is my favourite graph from Limits to Growth.

This is the standard run or Business as Usual.

 Things to note.

  1. There is a nice gentle downslope for population. (Attempts to "fix things" result in a much steeper down slope. Not good.)
  2. In subsequent (not good) runs resources are presumed to be double. ie we manage to "fix things" by finding more resources like oil.
  3. I like the business as usual run. It is the least worst scenario.
  4. With more resources we end up with more pollution. Which is intuitively correct. Pollution mitigation measures  were implimented in other runs with mixed success.
  5. Capital will have to be withdrawn from industry into agriculture, as the per-capita calorie intake plunges. I guess that would make a lot of sense to the Egyptians.

I urge you to get a copy of Limits to Growth and read it. It is similar to Darwins Origin of the Species. No-one has read it but everyone has an opinion. The greater the ignorance the stronger the opinion.

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

http://www.huffingtonpost.com/2011/02/17/republican-budget-amendment-cza...

A little cold water on everyone who was a little cheered by Obama's appointment of Elizabeth Warren to the new Consumer Financial Protection Bureau.  One of the very few decent things to come out of the financial mess.  Thanks a lot, whack jobs in Congress.

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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

http://www.huffingtonpost.com/2011/02/16/mike-beard-natural-resources-god_n_8243\
12.html

http://fb.me/vSD0vq5y

GOP Lawmaker Mike Beard Claims God Will Provide Unlimited Natural Resources

Mike Beard, a Republican state representative from Minnesota, recently argued
that coal mining should resume in the Land of 10,000 Lakes, in part because he
believes God has created an earth that will provide unlimited natural resources.

"God is not capricious. He's given us a creation that is dynamically stable,"
Beard told MinnPost. "We are not going to run out of anything."

Beard is currently in the midst of drafting legislation that would overturn
Minnesota's moratorium on coal-fired power plants, an effort that he backs due
to his religious belief that God will provide limitless resources while ensuring
that humans don't destroy the planet trying to get them.

Drawing on his family's childhood property in Pennsylvania, Beard explained to
MinnPost his belief that while resource extraction might cause temporary
agitation to the landscape, the effects wouldn't be longterm.

"Our farm was mined for coal three times," Beard said. "And, now we stand on a
point and look over barley and wheat and pines. Did we temporarily disrupt the
face of the earth? Yes, but when we were done, we put it all back together
again."

This observation appears to be indicative of Beard's larger religious belief
that God acts as the tireless custodian of the planet.

"It is the height of hubris to think we could [destroy the earth]," Beard told
MinnPost, before saying that even devastating nuclear events shouldn't cast
doubt on his theory that the earth can always be repaired.

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Arthur Robey
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Re: Daily Digest 2/17 - The Politics Of Inflation, Peter ...

"It is the height of hubris to think we could [destroy the earth],"

Let us use his own language.

"Do not test the Lord thy God".

 

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71gear
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porter stansberry

Porter Stansberry is not a reliable source for information. He has been convicted and fined by the SEC for defrauding investors through his subscription newsletter.  Google it. It is a detriment to the credibility of this blog that his name and ideas are mentioned in any seriousness.

KRJ

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Damnthematrix
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"Beard told MinnPost, before

"Beard told MinnPost, before saying that even devastating nuclear events shouldn't cast doubt on his theory that the earth can always be repaired."

Given a couple of million years.....!

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lucky-jerry
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Eery

His message (and style?) are  eerily similar to CM's... Follow the links, pay $50 or so, and I'll let you in all all the SECRETS... (CM has not been busted by the SEC, however, and has a much more trustworthy background.)

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Megapril
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Great Critique - Even a couple of years later

It's funny, I tend to be a wanderer of the web, but today is the first time I came across this Stansberry Research video... Seems you folks were on to it a while ago!

Anyway, Tech Guy, I found your take on the whole thing to be quite enlightening... Though the video and narration can be "captivating", even alarming, I am by nature a bit cynical and always wonder what the catch is.  But after reading your thoughts and points, it turns out it wasn't simply the sales pitch one needs to worry about, but in fact that the actual advice could put you in a very poor financial position instead of strengthening it! I totally agree, and was thinking along the same lines on the subject of having your wealth and investments overseas where who knows what the holding country could decide to do with what you believe to be your own property. And how, once you traveled there, you could possibly win a case to get it back!

Your alternatives were well thought out, and I plan to check them out further. As a single Father and Parent to three children it is my duty to protect their future as well as my own, I obviously want to be in a position to assist them by whatever means for as long as I am alive, financially or otherwise. I must be able to place myself in a position to do that, and I want to get ahead of it now rather than be desperate later. Doing things in desperation rarely ends well and since I am just over 40, and my kids in their teens I believe I still have the opportunity to do things the right way, with planning.

i found all of your points to be spot on, and two years later from your original post I say Thank You! As a new member I will look forward to finding more of your comments...

I hope to enjoy and even possibly contribute to the rest of this site as well, I'm quite glad I ran across it today. Again, funny that I would stumble across this site while simply trying to find if this Stansberry fellow was on the "up and up".  Thank you!

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Stan Robertson
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If you can't jail 'em maybe you can fail 'em

This is an obtuse way of injecting some sanity into the financial system, but some public support might be helpful.

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