Lining Silver

Anyone with half an eye on markets has noticed that gold, silver and platinum have shot through the roof.  In fact, all commodities are running for the Moon since they are priced on world markets in US dollars, and the dollar is dying a slow and public death.

The death of the dollar is not the whole story, though.  Especially when it comes to silver, there is a much deeper and darker secret that is driving prices faster than the PTB/W can beat them down.

Around the world, there are things called 'bullion banks.'  These are basically secure warehouses where gold and silver money is stored to back various things, like currency and futures trades.  In a perfect world, if I buy 100oz of silver on contract, then some bullion bank accepts and stores 100oz of silver with your name on it.  It's the oldest form of banking on Earth.

The way paper money came into being was as treasury warrants or certificates that showed that I had an amount of gold or silver stored in a vault, and if I gave you my warrant, you could go to that bank and claim your metal.  All US paper money used to be gold or silver certificates, and if you went into a bullion bank, you could claim the equivalent in metal coins.

The oldest banking scam became playing the odds.  The banksters noticed that people liked to leave the metal in the bank and carry the lighter and more convenient paper.  Because of this statistical trick, they could lend out a chunk of your metal for interest while you weren't looking.  If you came into the bank to claim your metal, they played the odds that they could cover with other people's metal, thus making it look like all your metal was there.  Thus was born fractional reserve banking.  The banksters only needed to keep a small amount of real metal on hand to cover for withdrawals, and the rest they could farm out and make money on interest from your money.

The only real danger was if the customers of the bank lost 'confidence' and showed up in significant numbers to claim their metal.  If the bank couldn't cover the claims, the owner was marched out and hung.for fraud and theft.  Of course, it's all 'legal' now (Federal Reserve), but they still need to measure Consumer Confidence to make sure you aren't getting ready to hang them.

So anyway, back to the bullion banks.  They've been running a scam for decades now.  Let's say you buy 100oz of silver on long-term contract.  You take delivery of the metal at a bullion bank and they issue you a certificate and charge you a storage fee, either monthly or yearly.  Here's the trick.  Of your 100oz, they only really put 1oz in storage and lease the other 99 from another bank or owner.  The bullion bank makes money for storing something that isn't there, and the lessor of the 99oz makes money by leasing his metal to several other banks, as well.

Now comes the Perfect Storm.  Inflation has driven the nominal price of metals up very fast.  This made people sit up and take notice.  Gold being very expensive put it out of reach of most people, but silver was still at reasonable levels.  So a lot of folks started buying.  What's worse, those who had metal in the bullion banks wanted to take delivery of the physical metal.  That put an immediate strain on the system.

As sales increased, the price rose, more people got interested, which drove up prices even more, which made more people interested, which drove sales, and the whole thing became a self-perpetuating cycle.

The banks are desperate.  They are scouring the Earth to collect all the silver they can get their hands on.  The are so desperate they falsely convicted Bernard von NotHaus, of Liberty Dollar, on trumped-up charges so they could confiscate his $7 million worth of silver, even though that amount is just piss in a bucket to save the system.

One solution they are trying is massive short buying on COMEX.  This has the effect of driving the price down, albeit slightly and temporarily.  It also has the effect of digging their accounting hole even deeper.  They are still playing averages, statistics and 'confidence' in a world that is quickly only trusting the real thing in hand.

When this thing unwinds, the price of silver will shoot through the roof.  When it does, probably sooner than later, then gold and platinum will unwind, as well.  In short order, the prices of the Big Three will soar to levels that are most likely double, if not more, of today's prices.

The math doesn't lie.  It can't end any other way.  It is written in stone and is as unavoidable as tomorrow's sunrise.  The first victim will be JPMorgan, which has a massive short exposure to silver.  When Morgan collapses, most of the major banking houses worldwide will follow, because they all have short exposure to metals.

This scan has been perpetuated for decades by playing a game where the financial world poo-pooed gold and silver, and played down the investment value of the metals.  They had to maintain this stance in order to keep people for looking too closely at the shell game they were running.  On top of that, they were making massive profits renting empty storage, and leasing the same pile of metal over and over again.  It's a great living, if you can keep it going.

Many people are becoming aware of the scam.  Many more don't know about the game, but they see the nominal value of the metal running away, while the purchasing value of their paper drops precipitously on a daily basis.  Even the Wally Mart CEO is saying publically that inflation is killing his business.  And Wally Mart made its fortune selling cheap goods at low prices to people with no money.  Now, even their market is drying up.

The death throes are obvious.  The whole system is collapsing.  And really, the value of the metals is not rising.  They have been the same for thousands of years.  It's the amount of paper it takes to hold some of that metal that is changing.  One ounce of gold has bought a fine, custom-tailored suit for hundreds of years.  But, the price of the suit in paper bux has risen dramatically, especially in the past decade.

The real interesting thing to watch is what will happen when JPMorgan starts to catch fire.  They've already raided the Treasury (your pocket), and there's not much left to take.  They'll be piles of 'too-big-to-fail' talk coming from the mass mind control.

The Big Question is how much shit will the American people put up with?  Do they have any fight left, or are they completely fluoridated and Xanaxed into submission?
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By July, most of us won't recognize the world as we've come to know it.  The PTB/W, in the guise of corporations (their current sheep's clothing), are making a play to take it all off the table.  But, they are teetering on the edge.  Their current actions belie a sense of desperation.  They have lost control in some key area(s).  They are flailing around trying to keep people from looking behind the curtain and see that having the whole system is NOT the end of the world, but actually the beginning of global peace and liberty.

They can't stand to have that happen.

It's a very important moment.  It's one of the pivotal points of history.  What remains to be seen is if they can pile enough weight on the backside of the Titanic to keep it afloat, or will the ship snap in two and sink despite their greatest efforts?

If you love liberty and want to live like a free person with the ability to amass real wealth and pursue happiness in your own way, then you have a very simple and readily available weapon against tyranny.

Buy silver.  Buy lots of it.  And only accept real, physical metal in your hand.  (oh, and this is NOT financial advice...just telling what I like to do for a hobby).

The Big Crash is not the end of the world, it's the beginning of a new one.

Guts, Guns or Gold: Nobody Rides For Free

Looking back at my e-mail records, it was October 12, 1999. I had sent out an e-mail to my family and friends, admittedly a wild-eyed, but none-the-less valid. Contained within the long-winded reasoning behind the message, I advised everyone to get out of the stock market immediately and buy physica gold and silver coins.

If it weren't for the laughing, there would have been dead silence. Just Ol' B going off again on one of his tirades. After all, the Dow was pretty danged close to its all-time high in absilute value (factoring inflation and all), gold and silver were around $260 and $4, respectively. The precious metals hadn't been much of a concern since the 80s mania. Hedge funds and tech IPOs were the order of the day. Clinton had deregulated banks, happy days were here again, and we were all going to skip to the bank with armloads of money.

Some lone nut preaching, "The end is nigh," sure wasn't convincing a lot of folks. I did, however, put my money where my mouth was and cashed out my 401(k), sold out my options and stocks, and bought up all the gold and silver coins I could afford.

Sitting here 11 years later, I see that the Dow has only hit an all-time high once since then, in both absolute and notional value. Gold has risen better than 500%, silver has shot up almost 600%, and the markets are set to drop in the crapper yet again, taking the last of everyone's life savings with them.

So, was I right or what?

In July of 2001, some guy nemed George Ure, whose site about long-wave economics I had been reading for about a year, started twisting off on some new technology he was pimping for a guy named Clif High. It came out that Clif, while working on a way to predict future market moves, had hit on something much deeper.

Clif's theory was that future events could be predicted by people's current expectations, and that their expectations could be discerned by parsing the words that they chose when posting on internet fora and bulletin boards. He would send out small programs called 'bots' to search for a pre-determined set of 'hot' words, and when the bots found them, they would sample a bit of the text around the words and send the whole package home.

Clif could then read the hidden subtext of people's thoughts by fermenting the results with his own algorithms. The product was, what I imagine to be, a 3-dimensional scatter-graph that he calls model-space. Certain hot concepts form a cloud in this space, surronded by various adverbs and adjectives that modify them. Those descriptors are given numerical weights based on the emotional value of the words. The clouds are connected to each other through various relationships, and the whole thing overshadowed by the meta-data layer, which holds the archetypes that people use to manipulate the world within their minds.

Model-space can be rolled back and forth over time to see how and when these concepts develop and their relationships evolve. Clif takes this view and puts into narrative form and releases it as occasional reports (formerly called ALTA, and now called (SOTC)

All that was build-up to the summer of 2001, when George and Clif started releasing warnings that some major, world-changing event was in the offing. The details were a bit vague, but it involved a hugely emotional event that Clif called a 'tipping point,' before which the tension values of words were increasing, and after which they decreased rapidly. This point in time was pegged to happen in the Fall and there was some talk of buildings and changing attitudes.

Sure enough, on September 11, 2001, a lot of things changed.

By now, I can just picture you, dear reader, scratching your head and asking, "What is this nut going on about now?" Glad you asked.

Point number 1: If you're been watching the price of gold and silver lately, you have noticed that they are running up the ladder like nobady's business. My nose is twitching, telling me that there is more distance to cover before this run finishes, if my spasming nose is anything to go by. Past episodes would seem to indicate the positive. I especially am watching silver, since supplies are tighter than gold, deliveries have been very slow and Clif's work indicates that it has a big leap to make in the near future. Just today, the story is the (hahahahahaha) Federal Reserve may inflate the crisis out of existence. If you've been paying attention, that started a while back, say around 1933. The (NOT) Federal (NO) Reserve is acting like they just discovered it. HAHAHAHAHAHA! What a maroon, as Bugs Bunny might say.

The second point is this: Clif's and George's work is pointing to a time in November when there will be a tipping point that is orders of magnitude greater than 9-11, and has been showing up for several years in model-space. Now, normally I would put future predictions in the category of 'here comes the apocalypse' fantasies, which have predicted the Second Coming daily for 2,000 years. Hey, it's going to be right one of these days, que no? (snicker) However, I have watched the bots' output hit the mark repeatedly: the shuttle disaster, the NE blackout, the Banda Aceh tsunami, Katrina). Granted, on some of the smaller things, it's been a bit of a stretch to say that the bots have hit their mark, but on the Big Ticket items they seem to be batting 1,000.

So what to do?

Well, if you are still in the markets, then there's no hope for you. You are brain-dead and no amount of talking will convince you to save your own ass. However, if you've cashed out and are looking for somewhere to park it, gold and especially silver are your best bets, I think. The only thing better is farm land, since you can't eat metals, but you can sure use the land to feed yourself.

The next thing to do is strap yourself to the mast, because a storm is rising and the seas are going to be mean. I have little to no idea what to expect other than to expact the unexpected. If you are ready for that, then you should be able to ride out the storm.

Check out Clif's site and if you can part with $10, buy the latest report. Also, give his blog a read, as he spells out a little information there with regars to what's coming.

As with all dire future predictions, no guarantee or warranty. You're on your own. But, an ounce of prevention is worth a pound of cure, and anything you do to prepare will still have value, even if the sun keeps shining.

If Buddha is right, which he sure seems to be about a lot of things, then we make our own future. After you prepare for the worst, then envisioning some good things for Life As We Know It sure can't hurt matters.

Every little bit counts.