Oldtent Archives 2007 - 2008

Bill,
What do GM, Ford, Fannie and Freddie, the entire banking industry, and the entire homebuilding sector have in common? ALL of them are for all intent and purposes bankrupt or insolvent. Think of that for a moment. The ENTIRE U.S. auto, banking, and housing industries have basically wiped out. Doesn’t that alone qualify as a depression? The spin to the contrary on this calamity is just incredible. The roadrunner hanging in mid-air analogy could never be more appropriate. It’s only when you add up the calamitous events as a whole do you realize how frightening the economy has become.

Physical gold and silver shortages are a HUGE tip-off that big money has been moving into hard assets BIG time. The suspension of Silver and Gold Eagle production is similar in effect to when M-3 reporting was discontinued. They know where it’s heading, better to bust the blinking light. There are thousands of wealthy investors, any of which could tie up ALL Eagle production indefinitely the minute they came back on the market. That may be another REAL fear for the Treasury; they resume production only to immediately have to suspend it again. I wouldn’t be surprised if like M-3 the suspension of both Silver and Gold Eagle production becomes permanent. Even those puny amounts can’t be obtained, and that window dressing scam can’t hunt. If you ignore the phony-baloney Comex prices and keep your eye on the economic wipeout you realize it may already be too late for many wealthy elite to protect their wealth with gold and silver. The window is slamming shut. Remember the gold suppression scheme is not only about keeping unwanted investors from showing up, it’s also about allowing insiders one last chance to get their paper wealth protected. Once Fannie and Freddie become wards of the taxpayer state it may be expedient at that point to just let everything else go. Translated, all hell breaks loose.

Destabilized economies bring destabilized production and civilizations. It’s what I refer to as the molasses economy. Commerce eventually becomes like trying to walk around on a thick bed of molasses. It becomes impossible to make a profit at nearly ANY cost. Airlines, trucking, and many other industries are already there. That’s when the really big shortages occur. Gold and silver are already in short supply, plus it’s becoming increasingly difficult to profitably mine it. With that in mind take another long, hard look at that Comex-denominated price.

Bid/Ask 833.10 - 834.30

Absolutely amazing, eh? It’s still cheaper than in 1980!
James Mc

Thanks for M3 news….I didn’t believe it anyway. But the cabal is testing the elacticity models on metals.
Congratulation to you. ..Your as stubborn as a mule..but always true to your cause

CBGA member gold sales may be lowest since ‘99 - WGC
Wed 20 Aug 2008, 13:44 GMT

LONDON (Reuters) - Gold sales by signatories of the Central Bank Gold Agreement could be the lowest since the pact was signed in 1999, the World Gold Council said on Wednesday.

One analyst said banks are putting increased importance on gold reserves due at a time of global economic turmoil.

Around 319 tonnes of gold have been sold so far by the European central banks that signed the agreement, out of a quota of 500 tonnes allowed in each year.

“Taking account of publicly available information on central bank intentions, it seems possible that net selling in the current CBGA year, which ends on Sept 26, could be the lowest since the first CBGA was signed,” Jill Leyland, economic adviser to the WGC, said.

The Swiss Central Bank is the biggest single gold seller this year to date, having disposed of 113.1 tonnes.

Standard Chartered metals analyst Daniel Smith said the low rate of sales demonstrates the importance of gold for central banks as part of their overall reserves.

“The global economy is going through a pretty traumatic period, and having gold to back up your currency seems like a good idea,” he said.

According to the figures provided by the WGC, the 15 signatories to the accord disposed of 497.2 tonnes of the 500 tonnes allowance during 2004-05, 395.8 tonnes the following year and 475.8 tonnes in 2006-07.

-END-

I had a day  off today but had to run up to the mine anyway , today just got hame and ate supper and saw your post. I have alot of respect for any pilot who can fly the backcountry as I have flown with some good pilots and a couple of them are no longer alive. I have floated the middle fork a half dozen times and worked for a couple of the outfitters taking strings of horses back into their hunting areas, they also flew me in to shoe their horses a few times. The most horses I’ve shod in one day was 16  head up cougar creek on the east side of the river from Mahoney air strip. I can’t even think about doing 2 or 3 any more and thats just for myself.

Hi Bill
Very important from John Williams. It negates Faber’s main source (The English article about a monthly $50B contraction in M3) which supported his fear of deflation.
Best

D.D

August 21st, 2008

FLASH UPDATE - August 21, 2008

JOHN WILLIAMS’ SHADOW GOVERNMENT STATISTICS

FLASH UPDATE

August 21, 2008

__________

July M3 Expanded Month-to-Month, Year-to-Year

Inflationary Recession Continues to Intensify

Broad Outlook Unchanged

__________

Monthly July M3 Gained $81 billion. In the last several days, I have received a large number of subscriber requests for comment on monthly M3 growth, given a popular-media story of a private estimate out in the U.K. of a $50 billion monthly contraction in July U.S. M3 money supply. Based on my regular estimation of ongoing M3, no such contraction took place in the series as traditionally defined by the Federal Reserve (methodology discussed in the August 2006 SGS Newsletter); to the contrary, monthly M3 increased by roughly $81 billion.

As reported in last week’s newsletter (August 13th, page 31), the Shadow Government Statistics Ongoing M3 estimate for July 2008 increased by roughly $71 billion from June, a number that subsequently has revised to about $81 billion, based on the latest week’s Fed reporting. That estimate is for the month-to-month change in the seasonally-adjusted, monthly-average M3. For the month, the largest M3 component increase was in M2, reported up by $38.9 billion per the Fed. The other M3 component that still is published fully by the Fed — institutional money funds — was shy of flat, with an $800 million monthly contraction. Large time deposits, repos and Eurodollars — all modeled to a certain extent with a backing in other Fed reporting — increased for the month….

-END-

US food prices to post biggest rise since ‘90:USDA

WASHINGTON, Aug 20 (Reuters) - U.S. consumers should brace for the biggest increase in food prices in nearly 20 years in 2008 and even more pain next year due to surging meat and produce prices, the Agriculture Department said on Wednesday.

Food prices are forecast to rise by 5 percent to 6 percent this year, making it the largest annual increase since 1990. Just last month, USDA forecast food prices would climb between 4.5 and 5.5 percent in 2008.

Prices are expected to rise by 4 percent to 5 percent next year, lead by red meat and poultry. The forecast, if correct, would be the third straight year where food prices have surged at least 4 percent.

In its latest food prices report, USDA said the increase for 2008 was due partly to higher costs for meat, poultry and fish, which make up about 12 percent of total food spending. Overall, costs for these items are forecast to rise 3 percent compared to 2.5 percent estimated last month.

Prices for fruits and vegetables, which account for more than 8 percent of food spending, will also rise 5.5 percent versus 5 percent predicted in July.

USDA also forecast increases this year of 9.5 percent for cereals and bakery products, a 14 percent surge for eggs and a 13.5 percent hike for fats and oils….

-END-

What makes anyone think this is new policy? It’s been going on for a LONG time. They make it official after decades.

DJ * China Jul Iron Ore Imports 39.63 Mln Tons, Up 18% On Year

DJ * China Jul Copper Concentrate Imports Up 24% At 456,719 Tons

But they Stopped Eating ?

DJ * China Jul Wheat Imports At 373 Tons, Down 63% On Year

DJ * China Jul Sugar Imports Down 89% On Year At 21,910 Tons

Thats Bad for dentists

…..Jeeses…

…..this is not funny anymore !

Why go to all the trouble, work and effort to convict the guilty when the innocent are such sitting ducks !?!?

New Guidelines Would Give F.B.I. Broader Powers

By ERIC LICHTBLAU

WASHINGTON — A Justice Department plan would loosen restrictions on the Federal Bureau of Investigation to allow agents to open a national security or criminal investigation against someone without any clear basis for suspicion, Democratic lawmakers briefed on the details said Wednesday.

The plan, which could be made public next month, has already generated intense interest and speculation. Little is known about its precise language, but civil liberties advocates say they fear it could give the government even broader license to open terrorism investigations.

Congressional staff members got a glimpse of some of the details in closed briefings this month, and four Democratic senators told Attorney General Michael B. Mukasey in a letter on Wednesday that they were troubled by what they heard.

The senators said the new guidelines would allow the F.B.I. to open an investigation of an American, conduct surveillance, pry into private records and take other investigative steps “without any basis for suspicion.” The plan “might permit an innocent American to be subjected to such intrusive surveillance based in part on race, ethnicity, national origin, religion, or on protected First Amendment activities,” the letter said. It was signed by Russ Feingold of Wisconsin, Richard J. Durbin of Illinois, Edward M. Kennedy of Massachusetts and Sheldon Whitehouse of Rhode Island.

http://xrl.us/on7sa

I’m having trouble with TinyUrl again so this short url is from another provider.

I FEEL BETTER  (go Canada)

  A favorable comparison to the Nasdaq bubble?

 http://www.kitco.com/ind/Kasun/aug202008.html

Could only hope for a quadruple.