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LETMYSILVERGO
26th August 2009, 01:34
http://news.goldseek.com/GoldSeek/1251266760.php

GO TO LINK FOR FULL STORY


The Metastasis of Moral Hazard and its Effect on Gold



-- Posted Wednesday, 26 August 2009 | Digg This ArticleDigg It! | Share this article | Source: GoldSeek.com

By Stewart Dougherty

To those who study the numbers, it is now obvious that America’s fiscal situation is hopeless. Given the country’s current debt and unfunded liabilities of $75,000,000,000,000, an amount growing by at least $5,000,000,000,000 per year, it will be statistically impossible for the United States to pay its obligations unless it repudiates them in large measure, or the dollar is sacrificed on the altar of searing, society-altering inflation.

Congress and much of the nation are in utter denial about the country’s unfolding fiscal catastrophe, as evidenced by federal spending that is actually accelerating, producing all-time debt and deficit records that exceed anything ever experienced by any nation on earth, at any time in history.

Denial is a psychotropic, mind-altering drug that by comparison makes crack cocaine look like health food, and addiction to it shuts down the brain. America’s denial about its out-of-control spending, non-repayable debt, financial sector fraud and deceit, decadent political institutions, epic dereliction of leadership duty, fiscal and monetary immorality, and disastrously dishonest system of cronyism is leading the nation into an economic nuclear winter of desolation and chaos. Aside from Ron Paul, there is not one politician telling the people the truth about their oncoming debt enslavement and impoverishment; nor is there even one sign of constructive fiscal change on the horizon. Our visionless, gutless and greed-stricken leaders have transformed the United States into a cowardly new world.

But these facts are already well-known to the markets. In investing, the unexpected events change the game, causing significant price adjustments, either up or down. Wars, terrorist events, deaths of influential figures, natural disasters, provocations by foreign foes, paradigm shifts, innovations and the opening of commercial, geographic or intellectual frontiers have all, at their appointed times, had meaningful effects on markets. Successful investors need to keep their eyes focused toward the sun, because it is from its bright light that the jet fighters of change appear. Change wants to take us by surprise, and down to the ground. It is a contact sport.

Many are now making the assumption that because the country has been able to sustain surrealistically deplorable fiscal numbers for the past twenty years or more, it will be able to sustain them in coming years, too. Elected officials delude themselves into thinking that they have time to tidy up their affairs before announcing that they will not seek re-election so they can “spend quality time with the family,” and assume they can get out of Washington before the machine flies apart. They expect to collect rich, self-legislated, taxpayer-funded, cost-of-living-adjusted government pensions plus free health care for life, while basking in the glory of such salutations as, “The Honorable,” or “His Excellency.” The odds are growing that things won’t work out this way, as America burns through its borrowed time with a blowtorch. The question is, what is coming that will change the game and accelerate the arrival of the inevitable?

Inferential analysis is now saying that a game-changing trend having the potential to significantly affect America’s institutions, economy and society might be well underway. Inferential analysis is the practice of identifying trends from seemingly unrelated events, and projecting their likely effects on the future. It can be highly predictive, and serves as an early warning system.

In this article, we will examine three contradictions that we think tell a much larger story in combination than each tells by itself. We will then examine the implications of these contradictions on the markets, and in particular upon the market for gold.

CONTRADICTION #1: On February 6, 2009, as it was becoming clear that the $700 billion TARP bailout had failed to achieve any of its promised objectives and as the mood of the citizens was darkening ominously as a result, Pennsylvania Congressman Paul Kanjorski (D), Chairman of the House Financial Services Subcommittee on Capital Markets, was interviewed on C-SPAN.

During that interview, Kanjorski attempted to make the case that the frantic, due diligence-free passage of TARP was necessary because Treasury Secretary Paulson and Federal Reserve Chairman Bernanke had told him and other, select members of Congress that the country was facing an historic banking crisis. Here is what he said, transcribed verbatim:

“On Thursday [September 11, 2008], at about eleven in the morning, the Federal Reserve noticed a tremendous drawdown of, ah, ah, ah, money market accounts in the United States, to the tune of five hundred fifty billion dollars was being drawn out in a matter of an hour or two. The Treasury opened its, ah, ah, ah, window, to help. It pumped one hundred five billion dollars into the system, and quickly realized they could not stem the tide. We were having an electronic run on the banks! They decided to close that operation, close down the money accounts, and announce a guarantee of two hundred fifty thousand per account so there wouldn’t be further panic out there. [He was referring to the FDIC insurance coverage limit increase.] That’s what actually happened. If they had not done that, their estimation was that by two o’clock that afternoon, five and one half trillion dollars would have been drawn out of the money market system of the United States. It would have collapsed the entire economy of the United States and, within twenty-four hours, the world economy would have collapsed. Now we talked at that time about what would happen if that happened. It would have been the end of our economic system and our political system as we know it. And that’s why when they [the Treasury and Fed] made the point that we’ve got to act and do things quickly, we did.”

beach miner
26th August 2009, 03:37
Thank You LMSG: One of the best posts I have ever read. Really takes you backstage and let's us see how the Magicians pull birds out of the hat, saw the lady in half, and make the world as we know it disappear. Gonna do more shopping tomorrow for the neccessities of life. You made me realize how fast it can all disappear. God Bless Ya. See Ya At The Top.

Argyria
26th August 2009, 03:43
Thank You LMSG: One of the best posts I have ever read. Really takes you backstage and let's us see how the Magicians pull birds out of the hat, saw the lady in half, and make the world as we know it disappear. Gonna do more shopping tomorrow for the neccessities of life. You made me realize how fast it can all disappear. God Bless Ya. See Ya At The Top.


When shopping for the necessities of life, don't forget torches and rope. We'll be needing plenty of those.

learjet035
26th August 2009, 07:54
Pitchforks too.....

Speaking of that, anyone have a good list of necessities?

Katwoman
26th August 2009, 11:51
A good fishing pole and lots of hooks
A modern rifle with lots of ammo
A black powder gun
A bow and arrows
A shovel
An axe
A good hunting knife
A good dog
And most importantly a good recipe for squirrel stew....yummmm yummmm yummmmm:)

These are the basic necessities anything else you own is really not a necessity even if you have grown to rely on it and think that it is.

Your cell phone is not a necessity
Your computer is not a necessity
Electricity is not a necessity
Your car is not a necessity
Money is not a necessity
Food is a necessity but remember give a man a fish and you'll feed him for a day teach him to fish and he'll feed himself for the rest of his life

The fact is that most people who have lived in the USA for the past 100 years are so out of touch with the reality experienced by most other humans throughout history that the vast majority of them will be helpless if the USD collapses or even if their SS benefits run out.

Thank God the US has lots of conservation land and a relatively small population which will allow most unemployed people with a little common sense to sustain themselves.

Prepare for the worst and hope for the best.

marinakorp
26th August 2009, 12:54
Agive a man a fish and you'll feed him for a day teach him to fish and he'll feed himself for the rest of his life


sorry.. teach a man to fish and he will sit in a boat and drink beer all day...

skijake
26th August 2009, 14:28
sorry.. teach a man to fish and he will sit in a boat and drink beer all day...

Classic, Well done!:D

ccjoe
26th August 2009, 15:34
Classic, Well done!:D

After Kitty's realistic but get the gun about post, that WAS a classic as in comic relief:)

skijake
26th August 2009, 16:58
After Kitty's realistic but get the gun about post, that WAS a classic as in comic relief:)

I think with all the Doom and Gloom [and I'm a subscriber on alot of it] I will be ready to kill myself when I can't find any humour or anything to laugh at anymore.
I've got to be able to laugh once in a while even if it's at myself.:p

Katwoman
26th August 2009, 18:24
Given the title of this thread it is nothing short of amazing that we managed to find humor in it:p

hiyosilver
27th August 2009, 01:55
.....and I ain't jokin'.........:D

Mister Jones
28th August 2009, 14:55
A good fishing pole and lots of hooks
A modern rifle with lots of ammo
A black powder gun
A bow and arrows
A shovel
An axe
A good hunting knife
A good dog
And most importantly a good recipe for squirrel stew....yummmm yummmm yummmmm:)

These are the basic necessities anything else you own is really not a necessity even if you have grown to rely on it and think that it is.

Your cell phone is not a necessity
Your computer is not a necessity
Electricity is not a necessity
Your car is not a necessity
Money is not a necessity
Food is a necessity but remember give a man a fish and you'll feed him for a day teach him to fish and he'll feed himself for the rest of his life

The fact is that most people who have lived in the USA for the past 100 years are so out of touch with the reality experienced by most other humans throughout history that the vast majority of them will be helpless if the USD collapses or even if their SS benefits run out.

Thank God the US has lots of conservation land and a relatively small population which will allow most unemployed people with a little common sense to sustain themselves.

Prepare for the worst and hope for the best.


I an new to this forum but I have read so much hype and doom and gloom over the years that it doesn't bother me much anymore. A friend gave me a book in the early 1990's. Guess what the author predicted ? A depression, of course. And when would the depression occur ? In the 1990''s !! I am not going to go hysterical about all this fear and nonsense. I am going to sit this one.

ccjoe
28th August 2009, 16:32
I an new to this forum but I have read so much hype and doom and gloom over the years that it doesn't bother me much anymore. A friend gave me a book in the early 1990's. Guess what the author predicted ? A depression, of course. And when would the depression occur ? In the 1990''s !! I am not going to go hysterical about all this fear and nonsense. I am going to sit this one.

I recommend that you just watch the network news and not come on here as these type sites understand about 2 trillion dollar deficits being unsustainable, fiat being worthless in the near future and other such tidbits of truth that the generic populace can't stomach. The truth does hurt.

Mister Jones
28th August 2009, 21:11
I recommend that you just watch the network news and not come on here as these type sites understand about 2 trillion dollar deficits being unsustainable, fiat being worthless in the near future and other such tidbits of truth that the generic populace can't stomach. The truth does hurt.


The real truth may be that gold and silver won't do nearly as well as many here believe will be the case. Just look at the last three years.

Cup-of-Ruin
28th August 2009, 21:32
The real truth may be that gold and silver won't do nearly as well as many here believe will be the case. Just look at the last three years.

As opposed to what? What is the opposition? A bunch of groomed puppet poodles in charge of a printing press, those half baked morons and their degenerate inbred owners! Caligula and Nero could do a better job than these clowns...You can put your faith and your wealth and your time and resourses in with that doomed lot if you like, me I am going for every ounce of the treasure I can get my hands on!

LETMYSILVERGO
28th August 2009, 23:23
Ditto !!


Ihave To Mpore Letters Is This Post As They Willnot Accept It

Katwoman
28th August 2009, 23:58
I an new to this forum but I have read so much hype and doom and gloom over the years that it doesn't bother me much anymore. A friend gave me a book in the early 1990's. Guess what the author predicted ? A depression, of course. And when would the depression occur ? In the 1990''s !! I am not going to go hysterical about all this fear and nonsense. I am going to sit this one.


Are you insane? The CBO and White House are both projecting that we will have close to 20 trillion dollars in national debt within 10 years ( I bet it takes less time than that). It took us from 1971 to 2009 to reach 11 trillion...can you not see the significance of this massive rapid increase in debt and the effect it will have on the dollar and in turn the price of PMs?

fansubs_ca
29th August 2009, 01:31
A good fishing pole and lots of hooks
A modern rifle with lots of ammo
A black powder gun
A bow and arrows
A shovel
An axe
A good hunting knife
A good dog
And most importantly a good recipe for squirrel stew....yummmm yummmm yummmmm:)

These are the basic necessities anything else you own is really not a necessity even if you have grown to rely on it and think that it is.


For anyone that lives in the northern half of this continent I'd probably
add to the list:

-warm clothes
-a way of generating and retaining heat.

Once you are already down to -40 it's _very_ hard to start a fire, getting
it above critical size where it makes heat faster than the surrounding air
draws it off is trickier than it seems. I'm thankfull to live in an era where
electricity and natural gas make heating _much_ easier.

hiyosilver
29th August 2009, 02:41
duney in disguise?

ccjoe
29th August 2009, 04:01
For anyone that lives in the northern half of this continent I'd probably
add to the list:

-warm clothes
-a way of generating and retaining heat.

Once you are already down to -40 it's _very_ hard to start a fire, getting
it above critical size where it makes heat faster than the surrounding air
draws it off is trickier than it seems. I'm thankfull to live in an era where
electricity and natural gas make heating _much_ easier.

Not to worry fan as Mister Jones will let you use his invaluable fiat to keep the fires going:)

ccjoe
29th August 2009, 04:03
duney in disguise?

hity--You're getting paranoid like me as I thought Duney was the sock puppet in the other thread busting APMEX's chops:)
Mister Jones really does sound like Duney as why would someone who does NOT like something>silver in this case, go on a site devoted to the thing he doesn't like? Makes no sense as I told Duney.