Oldtent Archives 2007 - 2008

There are none so blind as those who will not see!

By Adrian Douglas

I was astonished by the pompous attitude of Dennis Gartman as reported in the Friday Midas as follows

QUOTE

Interestingly, the FT reported yesterday that the US Mint has again suspended sales of one of its popular coins: the one ounce “Buffalo” gold coin. The Mint said Wednesday that due to unprecedented demand for the coin, it has had to suspend further sales until such time as it can replenish its inventories. This happened a short while ago to its “Eagle” gold coins, which the likes of GATA and the other “Conspiratorialists” pointed to as a sign that there was some vast conspiracy afoot regarding gold that was now being exposed. We take the Mint at its word, however; demand for its gold coins has indeed been historically high and it has almost certainly missed the market in this regard. “Buffaloes” and “Eagles” will be available to investors again in the future as the Mint gears up to meet demand. The Mint is like any other retail operation; it makes forecasts of demand for its product; it buys raw materials as necessary to meet those forecasts, and it hopes its forecasts are accurate. If demand is higher than expected, short term shortages result, and if demand is weaker, inventories rise. Let us not read more into this than that. To do so is to waste one’s time that can be put to far better use elsewhere. Thus, we may be bullish of gold, but we are not bullish because the “Buffalo” is “dead:”

END

Does he not realize what happened in September 2008? There was a tectonic event that happened that has changed the landscape forever. The Administration admitted that the “financial system” is insolvent! Paulson is not requesting 700B$ for a specific company that is in trouble. It is to aid financial institutions in the system in general! This is a world first. Never has so much money been requested to bail out institutions that have not been identified. Through fractional reserve banking 700B$ can be turned into $7 trillion with 10% reserve requirements. We have learned this week that the FED discount window has been lending at 188B$ per day on average in the last few days!

We have seen spectacular corporate collapses…Bear Stearns, Fannie Mae & Freddie Mac, Lehman Brothers, AIG, Washington Mutual etc. Hasn’t anyone noticed anything strange? In economic recessions it is the small companies that fail first. This is why the large companies have been around for so long. This is why mergers are sought because it gives financial strength and stability. So how could the biggest fail first?

If we take Dennis Gartman’s approach we would say that the reason is “sub-prime mortgages”…and “Let us not read more into this than that”!!! When is it going to be clear to the likes of the willingly obtuse Dennis Gartman and the public that the sub-prime mortgage problem does NOT bring down the biggest financial market and economy in the world? That is simply preposterous. It is ridiculous. Subprime mortgage defaults are at most only 5% of the US economy. What financial system or economy can not take a 5% hit? It is people like Dennis Gartman who have taken everything at face value who are responsible for the financial “meltdown” we are facing. No one asked any questions. No one asked why 3 US bank were growing derivatives on their books in excess of 100+ Trillion dollars when it was openly reported by the OCC every quarter. No one asked why gold derivatives were growing to be many times bigger than the gold market itself, even though it was openly reported by the BIS each quarter. No one asked how the total derivatives market could grow to be 20 times bigger than the total liquidated asset value of the entire planet! No one asked how short sales in companies stock could exceed the total number of shares outstanding. No one asked how day after day counter-intuitive moves happened in the market. No one asked how the US dollar could gain in purchasing power while the most promiscuous period of currency issuance of modern times went in to overdrive, and how the “strong dollar policy” was implemented. No one asked why the Federal Reserve stopped reporting M3 because it was apparently too expensive to collect the data! No one wonders why COMEX gold and silver futures have declined in price while the physical metal supplies have all but dried up in the retail market!

Nobody that is except the thinking people in GATA and a few other astute observers.

Even the SEC today has admitted they failed in their oversight function (as if it were not obvious!!)

www.nytimes.com/2008/09/27/business/27sec.html?em

How has all the regulation failed? If we don’t read anything more into it than what we are told as Dennis would suggest we could just be content that regulators are all over-paid incompetent idiots. Yeah, right! When things fail on such a massive scale there has to be fraud and complicity on the part of people in authority. Dennis you will just have to “grow up” and come into the real world where corruption and “conspiracies” are rife and pandemic. All these failures did not come about because of one lone nut “rogue trader”, Lee Harvey Bear Lehman! More than one person acted in concert with others to make this happen. And Dennis, that is the definition of a conspiracy. So Dennis get out of your Nursery and stop sucking your thumb and realize the world is full of evil and greedy people and if people like you are always willing to look the other way and “not read anything more in to” their behavior than face value then we get to the edge of the Abyss.

You have said that the Brain Trust of GATA would be more usefully employed looking for a cure for cancer. I beg to differ, we have been engaged in the most important work to mankind…trying to stop the total destruction of the Global Financial system, but people like you remain clueless and just turn up the volume of your radio.

This week the President, the Chairman of the FED, The Treasury Secretary, the Chairman of the Senate Banking Committee and a few others all told the public that the American Financial System was days away from collapse. These are not people who are recognized as “conspiracy nuts”. This is the government speaking! They are saying the same thing that GATA has been saying for 10 years! The Administration has told so many lies maybe people don’t believe them, but the body language of these people tells me that we had better believe them. This is our Soviet moment. This is the system on the brink of failure. Gold has always served as the warning indicator of financial calamities. We have been told that the engine room is on fire yet the Gold Fire Alarm is reading a chilly 32 Deg. A hurricane of CAT 6 (yes one category over the maximum!) has hit Wall St and the gold weather detector tells us it is warm and sunny! An earthquake of 10.0 on the Richter scale has hit the financial system and large companies are being shaken and are collapsing. Yet the gold seismic activity detector tells us that all is quiet in the ground below us! Dennis how is this possible? How can the futures price of gold and silver not be reacting to these CONFIRMED Armageddon scenarios, while nearly all retail physical metal has been bought up and none is available in quantity? How can this be? Would it be worth just reading a “little bit more into this”? If you do then there is only one logical conclusion.

One other thought about an important aspect of health that can sometimes get overlooked is intracellular hydration.  It’s not a direct correlation with the amount of fluid you drink, not at all.  I drink like a fish but have to work at getting hydrated where it really counts.  This is always important, but especially so when a body’s ailing.

Did you get my email sent on the 26th?  We need to pick a date, time & place.  If anyone’s restricted to meeting only on a weekend, then it needs to be the 11th or 12th.  The silverboomers are in, so is Zilifant.  Haven’t heard from the ee bros yet.

No the shortages are not in your area. But they are all over the southeast Moggy has a hard time already and many stations are closed. It goes back to all the posts on the tent about the media hiding the true damages of the two hurricanes that hit. Just so many things going on it is blinding.

No shortage here, none that I have heard of anyway. But what the hey…..I figured I should go top off anyway today. What it cost me I could have bought a half dozen Eagles……if there wasn’t a shortage…….

http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/09/28/do2801.xml

Your gas shortage articles make me feel like I made a good choice here. I have wells pumping 35 miles away and a new little refinery just opened down the road…so they say enough to take care of 35% of Belize.

Well what I meant to say was ..tie him up and light fire to his underwear until he says he is coming……soon we must give you an alphabet list to choose more acronym’s….haa

but don’t forget what you are dealing with here…….a serious case of CRS complicated by OFS.

Ah…Now I remember reading that when first posted. As they say….time will tell, but I got to say that I think that is the mother, father and uncle of all spin!! It is interesting and fun to contemplate but so is winning the lottery! HA I think the truth is ‘on his sleeve’ ….he sold his soul to the Debel.

http://tinyurl.com/3kyzhe

Remind Silverboom I need him for a vote in Belize when you see him…what an outfit..haaa..
Deadeye just hit the nail on Obamas old skeletons back in Illinois.
And would you believe that those big pearly’s in Obamas face were buffed up by Goldrunners tooth cleaners…Haaaa

Thanks, I do appreciate the information! 

You betchum, we are going to have a good get together !! And with Silverboom and his beautiful wife moving here I think our get togethers will become more often. Did you here that Goldballoon is also going to be in the area at that time? Yep, gonna be fun and informative. You are right about SOEE having a good head on him, but I must say all tenters that I have met have great minds and good hearts! To steal a line from you……What a outfit!! I am so far behind the curve of knowledge held within the Tent that I just consider myself lucky and privileged to be associated.

Sorry to offend the bleeding heart Democrats here but Floradagold wanted it:

Investor’s Business Daily:

IBD article on the Pork: www.ibdeditorials.com/IBDArticles.aspx?id=307321604674409

Election ‘08: Democrats want to use profits from the bailout as a slush fund for liberal activist groups, even those involved in vote fraud to help elect Barack Obama.

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Read More: Election 2008

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Prior financial bailouts, or “rescues,” such as those involving savings and loan failures, and Chrysler, have over time actually made money for the government. It may be the case here as well, as assets bought by the government at bargain prices return to marketable values and are auctioned off.

One of the sticking points in resolving the crisis was a poison pill in the Dodd/Paulson compromise that would move 20% of profits from the bailout into the Housing Trust Fund, a slush fund for political action groups such as ACORN (the Association of Community Organizations for Reform Now) and the National Council of La Raza.

Sen. Lindsey Graham told Greta Van Susteren of Fox News that Democrats had other priorities than just solving this crisis: “And this deal that’s on the table now is not a very good deal. Twenty percent of the money that should go to retire debt that will be created to solve this problem winds up in a housing organization called ACORN that is an absolute ill-run enterprise, and I can’t believe we would take money away from debt retirement to put it in a housing program that doesn’t work.”

Groups such as ACORN and La Raza lobby to secure government-funded services for their members and seek to move them to the voting booth. The housing bill President Bush signed in July contained a similar funding mechanism for the HTF — a tax on mortgages backed by Fannie Mae and Freddie Mac.

The tax was designed to channel upwards of $600 million annually in grants for developing and restoring housing, mostly as low-income rentals, available to ACORN and other groups. ACORN gets 40% of its revenues from the American taxpayers and not all of it finds its way into housing.

A new whistle-blower report from the Consumer Rights League claims that ACORN routinely commingles funds from its housing arm into political projects such as voter registration and get-out-the-vote drives. Money is fungible. Any taxpayer money that ACORN gets for housing makes it easier for the group to put its other funds into voter drives.

“These are taxpayer funds, in an indirect method, being used to subsidize political activism,” says Rep. Jeb Hensarling, (our Congressman) a Texas Republican and chairman of the conservative House Republican Study Committee. “I’m sure they’re not going out and registering any Republicans.”

Obama cut his community organizer teeth with ACORN. As a young lawyer he represented the group in a suit against the state of Illinois, which was concerned that postcard registration and a new motor voter law might invite fraud. ACORN later invited Obama to train its staff in leadership seminars.

ACORN has a political arm that endorsed Barack Obama for president in February and has stepped up its registration efforts to help elect a future benefactor. The Obama campaign admits to failing to report $800,000 in campaign payments to ACORN. They were disguised as payments to a front group called “Citizen Services Inc.” for “advance work.”

Consumer Rights League official Jim Terry says: “ACORN has a long and sordid history of employing convoluted Enron-style accounting to illegally use taxpayer funds for their own political gain. Now it looks like ACORN is using the same type of convoluted accounting scheme for Obama’s political gain.”

A major part of ACORN’s sordid history is vote fraud. ACORN has been implicated in voter fraud and bogus registration schemes in Missouri, Ohio and at least 12 other states. Last July, ACORN settled the largest case of voter fraud in Washington state history, involving nearly 2,000 bogus voter forms. In Ohio in 2004, ACORN submitted forms for the likes of Mary Poppins, Dick Tracy and someone named Jive Turkey.

ACORN uses taxpayer money to elect people like Barack Obama who will work to get them more taxpayer money. Democrats are willing to rip off taxpayers in a national crisis to make it happen.