El Dorado Discount Gold Inc.

 

The FED and the Strong Dollar Policy — Henry C K Liu, Asia Times
"A misleading impression has been given by recent press reports that the June 3 speech by Federal Reserve Chairman Ben Bernanke marked a Federal Reserve departure from a long tradition of nonintervention ..."

RBS issues global stock and credit crash alert — Ambrose Evans-Pritchard
"The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks."

The Cause That Won't Go Away — Llewellyn H. Rockwell, Jr.
"So long as government can fund itself by printing paper, it will continue to wreck the economy and our freedom. It is the most critical tool leviathan has, so it is the most important one to take away."

Howling at the Moon — Richard Daughty, The Mogambo Guru

The Case for USD 1,300/oz Gold — John Lee, CFA
"Holding Dollars is like playing musical chairs. When the music stops, the one holding the most Green IOUs, loses."

Why Wall Street Hates Gold and Silver — Howard Ruff
"Wall Street ignored gold and silver during most of the 1970’s hyper-profitable bull market. They were either outright hostile, or acted as though the metals didn’t even exist."

The Twilight of Irredeemable Debt — Professor Antal E. Fekete
"According to this theory the government has the power to create irredeemable debt - debt that never needs to be repaid yet will not lose its value - subject only to a "quantity rule", for example, it must not be increased by more than 3% annually. This idea is so preposterously silly that 'only very learned men could have thought of it.'"

Penny prices pinched by rising cost of metal — Associated Press
"Surging prices for copper, zinc and nickel have some in Congress trying to bring back the steel-made pennies of World War II and maybe using steel for nickels, as well..."

The Great Depression of the 2010s — Darryl Robert Schoon
"Economics is not rocket science. Neither is power. Depressions are monetary phenomena caused by central bank issuance of excessive credit."

Hyperinflationary Depression — Howard Ruff
“Hyperinflation: Extreme inflation, minimally in excess of four-digit annual percent change, where the involved currency becomes worthless. A fairly crude definition of hyperinflation is a circumstance, where, due to extremely rapid price increases, the largest pre-hyperinflation bank note ($100) becomes worth more as functional toilet paper than as currency.”

Why Gold was Hacked Today - and How — Alex Wallenwein
"The market delivered a huge"drubbing" to gold and silver today – or at least that's what thefinancial powers want you to think..."

Liars, Wall Street & Your Gold — Jim Willie CB
"Few seem to remember that Wall Street is not a non-profit community driven by altruism or any sense of service. They would gladly cheat you out of your entire life savings if their actions were legal..."

Gold the best asset over last one, three and 10 years — Hysni Kaso

Chaos on Wall Street — Fortune, Allan Sloan
"The big banks' fear of big losses is threatening to bring down the entire system, with dire consequences for all of us. Here's what's going on, and what we can do about it."

Fed's rescue of Bear halted derivatives Chernobyl — Ambrose Evans-Pritchard
"We may never know for sure whether the Federal Reserve's rescue of Bear Stearns averted a seizure of the $516 trillion derivatives system, the ultimate Chernobyl for global finance."

The Fed's New Tricks Are Creating Disaster — Frank Shostak, Ludwig von Mises Institute
"The Federal Reserve is trying a range of new tricks to push new forms of lending as a means of preventing what they fear may otherwise be a major collapse in financial markets. What all these strategies have in common is an unwillingness to come to terms with the reality that the crisis is based on real factors and can't be merely papered over without grave consequence to economic health."

Gold shines as it tops $1,000 (March 13, 2008) — Globe and Mail

Gold hits record high of $992 as dollar tumbles (March 3, 2008) — MarketWatch

US Treasury to support IMF gold sales — FxStreet
"The US Treasury, in a significant policy shift, has decided it will support gold sales from the International Monetary Fund's reserves if they are part of a package of cost-cutting and other reforms of the way the international financial organization operates."

Investors to push gold above $1000/oz in 2008 — Reuters

Short streaming video presentation by Bill Murphy of GATA by Mining Interactive
Good background information on the work of the Gold Anti-Trust Action Committee

When governments print money, buy gold — Jeff Randall, Telegraph.co.uk
"The price of gold tells us a lot about ourselves. It holds up a mirror to the way we are governed, our economy and its prospects. It reflects not only the physical dangers of floods, famine, terrorism and war, but also the financial perils of systemic addiction to debt and budgetary incontinence."

Anybody Seen Our Gold? — GATA.org
The Wall Street Journal has agreed to run the full page ad for GATA! The ad design is beautiful and asks some tough questions. You may view the ad here and read the background on getting it placed.

US Financial Markets Are Beyond Farce And Becoming More So — Bill Murphy
Mr. Murphy's commentary from January 17, 2008, Le Metropole Cafe.

Fed has little room to keep cutting rates, European central banker warns — GATA.org
"Rumours of an emergency rate cut over coming days by the US Federal Reserve have swept the global markets, setting off a fresh plunge in the dollar. Gold surged to an all-time high of $914 an ounce in New York on bets that the authorities will flood the global system with further liquidity to stave off a mounting debt crisis."

Gold and the Biflationary Depression — Alex Wallenwein
"Watch gold prices continue to rise, even accelerate, as the US economy goes into recession, then depression, while inflationary and deflationary forces will battle each other like two vultures fighting over which one gets to devour the juicier part of the carcass."

Bush can buy time as property bubble bursts — Ambrose Evans-Pritchard
"Bears beware. The New Deal of 2008 is in the works. The US Treasury is about to shower households with rebate cheques to head off a full-blown slump, and save the Bush presidency."

Gold price breaks 28 year record to hit new peak — Sydney Morning Herald

GATA Begins Campaign to Wrest Gold Documents from Fed, Treasury — GATA.org
"On Thursday, December 6, GATA delivered to the Federal Reserve Board and the Treasury Department formal requests for access to all documents in their possession that have been generated since 1990 and mention swaps of gold involving the U.S. government. Such swaps of gold are commonly used by governments to intervene surreptitiously in the gold and currency markets, and in May this year provisions for swaps began to be cited in Treasury Department records of the U.S. government's international financial reserve position."

Who's Afraid of Low Inflation? — Richard Daughty, The Mogambo Guru

Our Diseased Monetary Bloodstream — Professor Antal E. Fekete

Securities Market Rigging Taken for Granted — GATA.org
"The Bloomberg News Service story appended here is remarkable for its taking for granted the market rigging being arranged by the secretary of the treasury, whereby, at the government's encouragement, the county's biggest banks are colluding to fix the market price of distressed securities, violating the most basic anti-trust law."

Ritual dating from 1919 sets price of gold — Reuters
"Twice a day, representatives of five banks pick up the phone to trade physical gold and arrive at the London "fixing" price, which then becomes a benchmark for gold around the world."

Barrick says gold supply to fall faster than expected — Bloomberg.com
"'Global mine supply is going to fall at a much faster rate than people generally believe,''' Barrick Chief Executive Officer Greg Wilkins said today at a conference in London organized by RBC Capital Markets. "'Many of the mines that people are anticipating bringing into production will either not come into production or will be on a much longer timeframe.'"

GATA vindicated in "Gold War" Report — Chris Powell, GATA.org
"Paul Mylchreest, author of the January 2006 report on gold for the Cheuvreux brokerage house of Credit Agricole (http://www.gata.org/node/4270), has updated his research in his new position as an analyst at Redburn Partners in London. Mylchreest's new report, titled "Gold War," cites at length and concurs with GATA's work about central bank intervention against gold and declares that the biggest credit bubble in history will "either be purged in a deflationary recession or inflated away in currency debasement," with gold winning either way."

Ron Paul on monetary inflation with Ben Bernanke (11.08.07) — YouTube

Manipulation Of US Financial Markets Has Gone Bonkers — Bill Murphy
"Is this gold move a big deal? No … $1350 bid would be a big deal. Right now there is little belief, understanding, or enthusiasm over the moves in gold and silver. Most observers are looking cross-eyed at the price rises and remain clueless as to what is happening and why."

Bank revises gold target to $1,050 — David McKay

Caught Red Handed Killing the Dollar — Richard Daughty, The Mogambo Guru

Greg Peel: Citigroup report reignites gold manipulation debate — GATA.org
"In a new essay, Greg Peel of FNArena in Australia notes the small sensation around Citigroup's conversion to the gold manipulation school of thought. But Peel also points out that there long has been plenty of confirmation for those who have wanted to see it."

Central banking's main purpose now is market suppression — GATA.org

In Overdrive to $1,000 Gold — Barron's
"AS FAR BACK AS LAST OCTOBER, John Hathaway believed gold's breakaway performance from other commodities signaled rough times ahead for financial assets."

Citigroup acknowledges central bank scheme to suppress gold — GATA.org
"A major New York investment house, Citigroup, this week acknowledged that central banks have been colluding to suppress the price of gold."

Are 'inflation-protected' bonds really better than gold? — GATA.org
"Many of you already have realized that when one begins looking at the financial world through the perspective of gold, one sees things that cannot be acknowledged by the financial establishment, for gold is the secret knowledge of the financial universe."

Silver and Gold Salvation — Richard Daughty, The Mogambo Guru
"Having the government and the Federal Reserve in cahoots with each other reminds me of a humorous classroom exercise where the teacher had the students complete some well-known phrase. For the phrase fragment, "When the blind lead the blind…", one insightful young student had completed the sentence as "get out of the way" - which is perfectly correct, and damned good advice!"

Fear of dollar collapse as Saudis take fright — Ambrose Evans-Pritchard
"Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East."

Gold highest since January, 1980 — Reuters
"Spot gold prices surged to a 28-year high in European trading on Thursday, as the dollar sank to record lows against the euro and oil traded near all-time highs..."

Gold Rises to Highest Since 1980 as Dollar Slumps on Fed's Cut — Bloomberg.com
" Gold futures rose to a 27-year high after the Federal Reserve cut interest rates, sending the dollar to a record low against the euro and boosting the appeal of the precious metal as a currency hedge."

Exiting dollar, Iran puts 70% of reserves in other currencies and gold —
From Agence France-Press
"Iran has massively cut down its dependence on the dollar in the face of US pressure over its nuclear programme and now 70 percent of its foreign assets are saved in other currencies or in gold, an official said on Monday."

Gold American Eagle sales suspended — Numimatic News
"Sales of some 2007 gold American Eagles were suspended by the U.S. Mint late Thursday, Sept. 13, due to the rising price of gold bullion on international markets."

Britain sees a bank run — Emma Thellwell, The Telegraph, London as posted at GATA.org
"The credit crisis spilled onto Britain's high streets today as worried Northern Rock customers queued up to withdraw their savings. Their fears were prompted by the revelation this morning that Britain's fifth-biggest mortgage lender had to ask the Bank of England for emergency financial assistance."

American Economy: R.I.P. — Paul Craig Roberts
"Hubris prevents realization that Americans are losing their economic future along with their civil liberties and are on the verge of enserfment."

Are the banks in trouble? — Mike Whitney
" That's right; nearly $1 trillion in worthless paper is clogging the system, putting the kibosh on the big private equity deals and spreading panic through the money markets. It's a slow-motion train wreck and there's not a thing the Fed can do about it."

Gold's on a roll -- again — Peter Brimelow, GATA.org
"Well, here we are again. Gold rose $27.40 in New York in the past week. It closed above $700 on Friday for the first time since May 2006. Gold shares were also strong, although unlike gold they did not surpass their July highs. (But this time, of course, the sinking stock market supplied quite an undertow.)"

Gold price needs to close above $710 to prove it has turned up into a rally
— Franklin Sanders, GoldPrice.org
"What a great time to be a silver & gold investor! The bottom of this correction will mark the first major correction of this bull market. Once this correction ends, the most powerful, most violent, longest upwave will begin that will smash through $25 for silver & $1,000 for gold."

The Coming Flight to Gold — Roland Watson
"Panic has seized the minds of many as the shaking of a credit implosion rumbles through the marketplaces of today’s moneychangers. The ground is giving way beneath them threatening to suck them into a financial hell of derivative defaults and dishonored debts. The penalty is eternal death for hedge funds doomed never to rise again whilst for others they escape those searing flames by the skin of their solvent teeth."

Subprime inflicts new damage as banks seek cash -- Reuters
"New evidence of damage wrought by the U.S. mortgage sector surfaced in the United States and Europe on Wednesday while banks demanded a record amount of cash at a euro-zone money market auction."

Financial service firms face flu pandemic -- on paper — Computerworld
"What may be the largest pandemic planning exercise ever conducted in the U.S. is set to begin next month. The dry run will force financial services firms to operate with shrinking numbers of employees -- on paper, at least. More than 1,800 organizations have signed up to participate in the three-week simulation, which is being sponsored by the U.S. Department of the Treasury and the Securities Industry and Financial Markets Association."

Central banking is easy; the challenge is to stay in power — Chris Powell, GATA
"Who needs Bernanke's helicopters? THE INFRASTRUCTURE FOR BAILING OUT EVERYONE IS ALREADY IN PLACE. So why is everyone so worried?"

The Market Price of Roadkill — Richard Daughty, The Mogambo Guru
"[T]he real reason that markets are going so bizarrely up is because excess money and credit are constantly being created around the world, by central banks around the world, and thus money supplies around the world are expanding at double digit rates around the world, and all this new money has to go somewhere, or why would anyone borrow it in the first place?"

FED Chairman: Delusional or Deceptive? — Devvy
" There's no money in the people's treasury. Congress has written just under $9 TRILLION dollars worth of hot checks (as of 7.18.07: $8,888,522,656,747.96.) David Walker, Comptroller General of the U.S. was on a Sunday cable talking head show two weeks ago continuing his effort to try and awaken the indifferent, self-absorbed tens of millions out there about what's coming next year when that first wave of baby boomers retire and the financial tsunami hits over social security, Medicare and the cost of Bush's endless wars for peace based on lies."

Markets dive as FED raises stagflation fears —Ambrose Evans-Pritchard posted at GATA.ORG

Goldman, JPMorgan Saddled With Debt They Can't Sell — Bloomberg reports, "Goldman Sachs Group Inc., JPMorgan Chase & Co. and the rest of Wall Street are stuck with at least $11 billion of loans and bonds they can't readily sell."

Doomsday for the Greenback — Mike Whitney
"It is impossible to fully anticipate the effects of the falling dollar. The dollar is a currency unlike any other and it is the cornerstone of American power—political, economic and military. As the internationally-accepted reserve currency, it allows the Federal Reserve to control the global economic system by creating credit out of “thin air” and using fiat-scrip in the purchase of valuable manufactured goods and resources. This puts an unelected body of private bankers in charge of setting interest rates which directly affect the entire world."

Our "Strong Economy": A Powder Keg Waiting to Blow — Devvy Kidd, NewsWithViews.com
"As I write this column, the people's purse is $8,842,131,926,483.53 in the hole. That's close to nine TRILLION "dollars." Two days ago it was $8,836,852,277,711.67 - a 48-hour increase of over $5 BILLION dollars that doesn't even exist! Those who rely on the nightly "news" don't have a clue about what's coming and the inescapable fact that all the components are now firmly in place for a complete and total systemic financial breakdown."

Show Me the Gold! — Richard Daughty, The Mogambo Guru
"I disagree that nobody but the rich can buy gold. When I see the enormous amounts of money the middle class and the poor spend on pure trash every year, I say 'And you want me to believe that out of all that money, they can't manage to buy a stinking half-ounce of gold a year? Or some silver? Hahaha! Don't hand me that crap!'"

The time for gold to 'go ballistic' approaches — John Embry
“I suspect time will confirm that gold's correction in the summer of 2006 represented the last significant change that permitted investors to buy gold below $600. The new floor is now in that area and the upside potential is at least several multiples of $600.”

Who Is Interested in Gold — Richard Daughty, The Mogambo Guru
“[L]et's take a look at who is interested in gold. The answer is 'Everybody in the world that has two nickels to rub together...'”

Juicing the Stock Market; The Secret Maneuverings of the Plunge Protection Team — Mike Whitney
“ We are reaping the rewards of a lawless, deregulated system which has removed all the safeguards for protecting the small investor. There is no government oversight; it’s a joke. The stock market is a crapshoot that serves the sole interests of establishment elites, corporate plutocrats, and banking giants.”

True State of Economy Not Grasped by Public — John Embry
“Mounting physical demand from around the globe is relentlessly consuming all of the gold being mined, recovered from scrap and disposed of by central banks.”

It's That Damn Terrifying — Richard Daughty, The Mogambo Guru
Total Fed Credit, the magical fairy-dust stuff of which money is instantly made when it is borrowed from a bank, bumped up last week by $4.5 billion, taking us to $851.7 billion. That comes out to about $8,517 for every non-government worker, like me, in the country!

Avoid the Rush — Chris Leithner, Lew Rockwell.com
“Today, positive signs are numerous enough to persuade investors with an optimistic and even neutral view of the world that all is – and always will be – swell. A more sensible stance, it seems to me, is to adopt a general attitude that is sceptical and cautious, incorporate unfashionably dour assumptions into one’s analyses, and rejoice if bad things don’t eventuate.”

The Proverbial Good News / Bad News Situation — Richard Daughty, The Mogambo Guru
“[T]his is not about how another communist/socialist/collectivist benefit program cooked up by a communist/socialist/collectivist government has failed and caused ruinous inflation in desperately trying, and failing, to make it work, but about the lying and blatant fraud to which they will stoop to renege on their end of the deal when their expensive efforts are for naught.”

---

Lost In Translation — Cyd Malone, The Ludwig von Mises Institute
“The Great Depression, more than any other event in the history of these United States, still brings a collective shudder to Americans in the same way the Black Death stills tugs at the fears of Europe. It was, hands down, the most devastating economic crisis in our history.”

The Federal War on Gold — Jacob Hornberger, Lew Rockwell.com
“There are few things that federal big spenders hate more than gold. Why? Because they know that, historically, gold has provided the best means by which people could protect themselves against the ravages of a rapidly depreciating currency.”

Next Stop: DOOMSVILLE! — Richard Daughty, The Mogambo Guru
"The greatest shortcoming of the human race is our inability to understand the exponential function."

What was it that Jefferson said? — Richard Daughty, The Mogambo Guru
“How does that Thomas Jefferson quote go? Something about how if you act like a bunch of corrupt morons and disregard your own Constitutional requirement that requires that money be only of silver and gold, but instead allow the exact polar opposite with a fiat currency and/or zero controls over the actions of the banks (as coordinated by the Federal Reserve to allow them to create too much money and credit) to create an economic system composed of massive government spending and raw, mindless consumption of a parasitic populace, then you will end up as landless, penniless serfs in the very land our fathers gave us?”

Pure Insanity — Richard Daughty, The Mogambo Guru
“Total Fed Credit exploded by another $6.8 billion, another $8 billion of actual cash was released, the banks increased their books of Loans and Leases by $34 billion, foreign central banks plowed another $10 billion into their accounts at the Fed, and, to top it off, the Fed itself bought up $2 billion in government securities!  Enough money was created to allow Total Commercial Paper to jump by $23.7 billion!  All in one week! My God! This is insane! This is freaking insane!”

---

The Only Thing to do is Own Gold — Richard Daughty, The Mogambo Guru
“You can't do anything to thwart the greed of people for a free lunch, and thus you cannot thwart the boom-bust cycle, and thus-  and thus again! -the only remaining option is to (like judo) use their weight and stupidity against them by buying gold and silver, and thus become Filthy Stinking Rich (FSR) when this current popular-and-laughable Federal Reserve economic idiocy and towering incompetence finally destroys the currency.”

The New Deal and Roosevelt’s Seizure of Gold: A Legacy of Theft and Inflation — William L. Anderson, LewRockwell.com
“ While most analyses of the New Deal look at the various programs and policies that expanded government bureaucracies, the New Deal as we know it would not have been possible without the issuance of Executive Order 6102 in 1933. With Roosevelt’s signature, gold as legal money disappeared in the United States, paving the way for the government to engage in near-unconstrained debasement of the currency.”

Subprime Loans Face Trouble — FT.com
“ The failure of a small Californian mortgage lender on Thursrday increased nervousness in the credit derivatives market about the large number of US “subprime” mortgages extended this year.”

Superman Could Pick It Up With One Hand — Richard Daughty, The Mogambo Guru
Cash in Circulation is up $26 billion from this time a year ago, which is about $87 per man, woman and child in America, or about $350 for a family of four. You got yours? Me, neither.

Dollar Falls to 2-Month Low Versus Euro on Central Bank Concern —
Daniel Kruger and Min Zeng
(Bloomberg) “The dollar declined against 13 of the 16 most-actively traded currencies Bloomberg tracks after Zhou Xiaochuan said China will 'stick to the existing policy'' of reducing the share of U.S. assets it holds.”

Why Are The Stock and Bonds Market Rallying — Richard Daughty, The Mogambo Guru
“Mogambo sez:  If you are not buying more gold and silver at these ridiculously-low manipulated prices, then you are making the biggest mistake of your life. And that egregious mistake is why the rest of your life will be spent reading investment commentary, like the stupid Mogambo Guru, instead of drinking champagne at a fabulous luxury resort and hanging out with your rich friends.”

Don't Buy the DOW's New High — Free Market News Network
“This week, the professional stock market boosters, who masquerade as wise market commentators, filled the airwaves with celebratory musings on the significance of a record high Dow. Many spoke of it as the milestone that will usher in a new bull market reminiscent of the one which roared during the 1990s. However, the Dow’s new high is merely an inflationary illusion.”

Eaten Alive by Inflation — Richard Daughty, The Mogambo Guru
“Anyone who thinks that now, for the first time in history, the umpteenth repetition of this stupidity will NOT be calamitous, is truly, truly, truly insane.”

What If? — Enrico Orlandini, Dow Theory Analysis
“We have housing and transportation on the skids and banking may be next. The Fed is desperately trying to keep the wheels on until the November elections come and go and I really don’t think they’ll be able to do it. The market always does what it’s supposed to do but never when you want it to and I don’t think this will be an exception to the rule. The recent lows in the Transportation Index were unconfirmed by the DJIA just as the recent higher high in the DJIA was not confirmed by the Transportation Index. I envision a scenario whereby the DJIA rallies to a slightly higher high, say around 10,507 or a bit higher and then engage in more distribution until finally turning down. I suspect this will occur in October and then things will get interesting. If I’m right, the Republicans will have a tough row to hoe in November.”

Moral Hazard — SiliconInvestor.com
“Moral Hazard. For the last several months I have been doing a good bit of research trying to obtain some insight into inter-relationship between the Federal Reserve, the government, and the large money center NYSE member banks. In my reading I kept coming upon the phrase 'moral hazard'- as in “we want to avoid a moral hazard". I tried to find the definition as they defined within the context of what I was reading - no luck. These guys seem to have their own code words.

Recently I started reading Robert Rubin's book, 'In an Uncertain World'. As Secretary of the Treasury during the Clinton Administration, I thought I would try to get in the mind of one of the principals of the group we call the Plunge Protection Team (PPT). In the book he writes about his service at the White House. The book starts off with the Mexican Bailout and discusses that bailout and those that followed from the perspective of Mr. Rubin. After the first few pages he uses the term and defines 'moral hazard'.

MORAL HAZARD - A problem whereas investors, after being insulated from the consequences of risk by intervention, might pay insufficient attention to similar risk the next time, or operate on the expectation of official intervention.”

Just Trying to Make a Fast Buck — Richard Daughty, The Mogambo Guru
“Load up on gold, silver and oil, as it is guilt-free: How can legally taking money from bad people be wrong?  It teaches them a lesson they will never forget! They should thank you!”

Fiscal Year 2005 US Government Financial Statements — Statement of David M. Walker, Comptroller General of the United States
From the introduction: “For the ninth consecutive year, certain material weaknesses in internal control and in selected accounting and financial reporting practices resulted in conditions that continued to prevent GAO from being able to provide the Congress and American people an opinion as to whether the consolidated financial statements of the U.S. government are fairly stated in conformity with U.S. generally accepted accounting principles.”

The How and Why of Gold Price Manipulation — Greg Peel, FN Arena News
“ The US government's motive for covert gold sales is firstly to keep interest rates low by deceiving bond markets about actual inflation levels. This sets in track the effect of lower gold price = lower inflation = lower bond price = higher stock market. It is also a means of supporting the US dollar, such that lower gold price = higher US dollar.”

Prices Are High! Give Me More Money — Richard Daughty, The Mogambo Guru
Mogambo sez:  Some things never change, and one of them is the Boring Advice Of The Mogambo (BAOTM); buy some gold, some oil, and lots and lots of silver, and you will make a lot of money, or don't and you won't.  It doesn't get simpler than that!

The bankruptcy boom is back — Liz Pulliam Weston, MSN Money
"A tough 2005 law initially slashed the number of filings, but the numbers are rising again because the root causes of unpaid debt were never addressed... Consumer bankruptcies had plunged following the passage of a tough new bankruptcy law last year. By the second quarter, however, the pace of filings had picked up to 2,200 to 2,300 new filings per business day, more than four times the level in November 2005 after the bankruptcy law went into effect."

The Currencies of the Anti-Idiots — Richard Daughty, The Mogambo Guru
“The key event that happened around 1995 is that the fractional reserve ratio was not only lowered, it was effectively eliminated entirely. You read that right. The net result of changes during that period is that banks are not required to back assets which largely correspond to M3 or 'broad money' with cash reserves. As a consequence, banks can effectively create money without limitation.”

A Fall in the Standard of Living — Richard Daughty, The Mogambo Guru
“[W]hen inflation in prices gets so bad that you are forced to buy less stuff, then that is popularly called…" and before I could even finish the sentence the entire class again yells out "A fall in the standard of living!" and then they all high-fived each other and laughed some more.  I sense that my lectures have become somewhat predictable...”

What's the Real Federal Defecit — Dennis Cauchon, USA Today
“The federal government keeps two sets of books. The set the government promotes to the public has a healthier bottom line: a $318 billion deficit in 2005. The set the government doesn't talk about is the audited financial statement produced by the government's accountants following standard accounting rules. It reports a more ominous financial picture: a $760 billion deficit for 2005. If Social Security and Medicare were included — as the board that sets accounting rules is considering — the federal deficit would have been $3.5 trillion.”

Federal Reserve Follies: What Really Started the Great Depression — Antal E. Fekete
“The basic error underlying the Quantity Theory of Money (QTM) is the notion that central banks can command their newly created money to flow to the commodity market, or any other market of their choice. This is the pipe-dream of the Sorcerer's Apprentice. In reality, once the newly created money is off the premises it is no longer under central bank control. It has become a plaything in the hands of speculators.” Courtesy of Le Metropole Cafe.

Record Household Deficit — Is there anything wrong with this picture? — Paul Kasriel
“With the release of the second-quarter advance GDP data and the revisions to 2003 through 2005 data, we can update our household surplus/deficit chart. Based on first-half data, it looks as though households are on course to run yet another record deficit in 2006.”

The Bankruptcy Question — Richard Daughty, The Mogambo Guru
“From AP we learn 'The Labor Department said Thursday that applications for jobless benefits totaled 332,000 last week, an increase of 19,000 from the previous week, exceeding market expectations. The four-week moving average for claims increased to 317,250 from 308,500 in the previous week.' Remember that it was recently considered conventional wisdom that if that number stayed comfortably below 300,000, then there was nothing to worry about!”

Squanderville vs. Thriftville — Warren E. Buffet (Published by FORTUNE in 2003)
“Most governments find it much harder morally to seize foreign-owned property than they do to dilute the purchasing power of claim checks foreigners hold. Theft by stealth is preferred to theft by force.”

A Warning to the United States Government — Richard Daughty, The Mogambo Guru
“The rush [to make a lot of money] will become a stampede, as the stories of the fortunes made in gold and silver will fill the newspapers, airwaves, newsletters and popular magazines.”

AT&T Rewrites Rules — Your Data Isn't Yours — David Lazurus, San Francisco Chronicle
“AT&T has issued an updated privacy policy that takes effect Friday. The changes are significant because they appear to give the telecom giant more latitude when it comes to sharing customers' personal data with government officials. The new policy says that AT&T -- not customers -- owns customers' confidential info and can use it "to protect its legitimate business interests, safeguard others, or respond to legal process.”

Honest Value — Richard Daughty, The Mogambo Guru
“I notice with a grim Mogambo frown (GMF) on my stupid face that Required Reserves in the banks actually went down to the bottom of its range for the last zillion years or so... Now, I notice how my blood has run chilly, and how everything is dark and gloomy. Gaunt buzzards have gathered in the trees to sit and lick their chops as they glare into the deep, dark, dangerous depths of my soul. I realize, in a sudden cold sweat, that the dollar and the banks (as we professional Mogambo economists (PME) say) 'are freaking doomed!'”

US Mint Giving Gold Bugs a new Option — Washington Post
“Investors craving pure gold now have an American supplier: The U.S. Mint plans to unveil today the nation's first 24-karat gold coin at an official strike ceremony at its West Point, N.Y., facility.”

What A Racket — Richard Daughty, The Mogambo Guru
“What a racket! This is the ultimate in fiscal fraud and should all go to prison for it. And if the American government was not filled with (being as nice as I can manage) stupid, ignorant, untrustworthy, lying, corrupt, cheating bastards and whores, that's where they would all go.”

Russian Official Urges New World Financial System Without Dominating Currencies — Moscow News
“Russian Deputy Prime Minister Dmitry Medvedev, who is often viewed as one of President Putin’s possible successors, said on Tuesday, June 13, that the modern world needs a new stable financial system, in which there will be no dominating currencies. Medvedev was speaking at the 10th Economic forum in St. Petersburg.”

Up. Not Down — Richard Daughty, The Mogambo Guru
“ Things are getting back to normal, and by the alarm bells ringing in the Mogambo Stinking Hole Of Fear(MSHOF) in the backyard, I know that the Federal Reserve is back increasing Total Fed Credit. Sure enough, I quickly find out that they created another $4.1 billion last week. This was at the same time as the Treasury printed up, in actual cash, another $4.3 billion, which is fourteen bucks for every man, woman and child in America.”

Calling a Horse a Cow Doesn't Make it A Cow — Hugo Salinas Price
“Suppose you have five horses, and we agree to call a horse a cow; how many cows would you have?”

Collapse of the Petrodollar Looming — Dave Kimble
In his annual State of the Nation address to both houses of parliament on 10 May 2006, Novosti reports President Putin said that work on making the Rouble an internationally convertible currency would be completed by 1 July 2006, six months ahead of schedule. To promote the currency, he announced that an oil and gas stock exchange will be created in Russia, that would trade in Roubles.“The rouble must become a more widespread means
of international transactions. To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for in roubles.”- Putin

Goldilocks is Dead — Richard Daughty, The Mogambo Guru
“Lew Welch in his book "The Basic Con" writes, 'Those who can't find anything to live for, always invent something to die for. Then they want the rest of us to die for it, too.'Bravo! And while he is seemingly talking about war, it is the exact same thing with economics and monetary policy, as the smarty-pants hotshots are not content to merely live their lives knowing economics, but the want to create new economic theory so that they will achieve fame and immortality. But there isn't one, and there never will be. And now we are going to die for it. Ugh.”

What is Driving Up the Price of Gold? — Emile Rutledge, Gulf Research Center, Dubai
In a fast-transforming global economic landscape, it is not really all that surprising that supplies of some raw materials are not keeping up with demand. Similarly, investors seeking short-term profits at a time when other asset classes are comparatively underperforming are bound to put more of their money into gold.

Velocity of Money — Richard Daughty, The Mogambo Guru
“As the severed head lays there on the ground, the camera pans in for a close up, and you note with horror that the head is still alive! Its mouth is saying 'Damn! That hurts!'Panning in
for a closer shot, the talking head goes on to say, 'And what hurts even more is that the loudmouth idiot Mogambo was right! We're freaking doomed!'The eyes in the head start to glaze, and yet with a Herculean effort the severed head startlingly continues, 'Beware! Beware of a massive and massively expensive government, paid for by debt, financed by the Federal Reserve and the banks creating all that new credit...'”

Peak Oil and Peak Gold — Roland Watson
“What can that current debate about oil teach us about gold? Gold, like oil, has been continuously rising in price for five years. Admittedly, its performance has been poor compared to oil, but does this price mechanism also indicate the mining equivalent of reducing "excess spare capacity" and is it also a prelude to "Peak Gold"? My conclusions led me to believe that these two commodities are similar in terms of a Hubbert's Peak analysis and in terms of the effects of a peak in global production.”

What The Price of Gold is Telling Us — Hon. Ron Paul
“The financial press, and even the network news shows, have begun reporting the price of gold regularly. For twenty years, between 1980 and 2000, the price of gold was rarely mentioned. There was little interest, and the price was either falling or remaining steady.Since 2001 however, interest in gold has soared along with its price. With the price now over $600 an ounce, a lot more people are becoming interested in gold as an investment and an economic indicator. Much can be learned by understanding what the rising dollar price of gold means.”

Gold May Rush Higher as Buyers Switch From Bonds — Bloomberg News
“It's going to $600,”said Duncan Cruickshank, an analyst at Commodity Warrants Australia.
“People are piling in. People will make money even if they buy at these levels.”

Gold Set To Become Even Scarcer — Rebecca Bream, Financial Times
“Gold is precious because it is scarce. Twenty years ago the majority of gold was produced by four old world countries: South Africa, Australia, Canada and the US. In the future it will be anything but. Tomorrow’s ounces of gold are going to be in interesting countries.”

Dollar Loses Clout in Bullion Market — Reuters
For years gold was seen as a haven for investors in periods of U.S. currency weakness, with falls in the greenback making dollar-denominated bullion cheaper for other currency holders.

Port In The Storm? The Port IS The Storm — James McShirley
The oft-repeated cliché about gold is that it is a port in the storm. Recent developments may force modifying the cliché to add it is also useful when the storm hits the port.

Collapse of Carry Trade Will Blow Out the System — Executive Intelligence Review
On Friday, Feb. 24, the Daily Telegraph published a blunt admission that the entire global financial system is on the verge of disintegration, as the result of the imminent collapse of the yen carry trade."The 'carry trade'—as it is known—is a near limitless cash machine for banks and hedge funds.

Sanity Check
This all-new Sanity Check website is intended to be an independent news source covering the Market Reform Movement. "Market reform," because much evidence suggests that our U.S. equities market is out of control, and will either collapse under the weight of its own larceny, or be reformed, and operate in a fair and reasoned manner.

Iranian Oil Bourse Draws Little Attention — By Andrea R. Mihailescu UPI
Western media is paying little attention to Iran's oil bourse, which is expected to open on March 20 using a euro oil-trading mechanism. The move will allow investors to buy or sell oil for euros to transact on the exchange, thereby circumventing the U.S. dollar and Europeans will no longer have to buy and hold dollars to secure their payment for oil.

The End of Dollar Hegemony — US Representative Ron Paul, MD
The economic law that honest exchange demands only things of real value as currency cannot be repealed. The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or Euros. The sooner the better.

Forget Iran, Americans Should Be Hysterical About This — Paul Craig Roberts
“Last week the Bureau of Labor Statistics re-benchmarked the payroll jobs data back to 2000.
Thanks to Charles McMillion of MBG Information Services, I have the adjusted data from January 2001 through January 2006. If you are worried about terrorists, you don't know what worry is.”

A Real Washington Scandal — US Representative Ron Paul, MD
Supreme Court nominations, congressional ethics scandals, and insider politics dominated the Washington headlines in recent weeks. But perhaps the most important story, in terms of its impact on average Americans, has gone virtually unreported.

US in Technical Default — Dr. C. H Martenson
“In a shocking development, the Treasury Department website is openly stating
that as of January 24th 2006 our national debt stood at $8,185.3 billion.Yet, the US national debt 'ceiling' stands at $8,184 billion — a full billion less. Although called upon by John Snow, congress has not passed an expansion of the debt ceiling and so the US government is now operating in technical default.”

The Illusion of a Rising DOW — Peter D. Schiff

When Smart Bombs Pop Over Tehran — Derrick Michael Reid
A melt down is on the near horizon, far exceeding that of Chernobyl Ukraine, but this time, will be intentionally done, probably by summer, and gold will pop to over $1000/oz, virtually over night...

What Do Rising Gold Prices Mean? — Dr. Ron Paul
Inflation is nothing more than government counterfeiting by the Fed printing presses.

Bernankeism: Fraud or Menace? — Robert Blumen
In 2002, then-Fed Governor Benjamin Bernanke burst into our monetary consciousness with his printing press speech. His fine work earned him the honorary title "helicopter commander." While largely a background figure since then, his recent appointment to succeed Alan Greenspan as Fed chair makes this an ideal time to review Dr. Bernanke’s views on monetary policy, and to speculate about what his chairmanship will bring. (From LewRockwell.com)

Buy Gold, Silver, and Oil — As Much As You Can Carry! — The Mogambo Guru
Mogambo sez: If you needed any more reasons to buy gold, let me quote Gary North of the Reality Check newsletter for another one. “I think a squeeze is coming that will affect the entire banking system,” he writes. “The madness of bankers has become unprecedented.”

A 'Fiscal Hurricane' on the Horizon — Richard Wolf, USA Today
The Comptroller General of the United States warns of a “demographic tsunami” that will never recede. To hear Walker, the nation's top auditor, tell it, the United States can be likened to Rome before the fall of the empire. Its financial condition is “worse than advertised,” he says. It has a “broken business model.” It faces deficits in its budget, its balance of payments, its savings — and its leadership.

After Monetary Collapse: Strict Reconstruction or More Bork? — Robert K. Landis
The ghastly images of destruction and chaos streaming out of areas hit by Hurricanes Katrina
and Rita held a grim fascination for gold bugs. And why not: what a mother lode of potent metaphor. The hurricanes as a black swan, the long-feared non-linear event that may have set in motion the cascading series of financial crises that will ultimately bring down the global monetary system.

I'm Tom Barrack and I'm Getting Out — Shawn Tully, Fortune Magazine
The world's best real estate investor has made billions in the U.S. market. Now he's cashing out and buying overseas. Should you cash out too?

Great Myths of the Great Depression — Lawrence Reed
This paper was published in 2000. It is an excellent explanation of the sinister events that took place during the Great Depression in America.

It Is Time to Take Seriously a US-led Global Recession — Lau Nai-keung, China Daily
“It is well known that the US is the world's biggest economy, taking up about 30 per cent of global GDP, but it is now also the world's biggest debtor country.”

The Debt-Peonage Society — Paul Krugman
“The bankruptcy bill was written by and for credit card companies, and the industry's political muscle is the reason it seems unstoppable. But the bill also fits into the broader context of what Jacob Hacker, a political scientist at Yale, calls "risk privatization": a steady erosion of the protection the government provides against personal misfortune, even as ordinary families face ever-growing economic insecurity.”

RBA Warns of Meltdown — David Uren, The Australian
The Reserve Bank of Australia — the equivalent of the FED — warned this week that the current calm in financial markets could be the prelude to a storm that could wreak havoc in the world economy.

An Overused Worn Out Cliché — Rob Kirby
“Will the current crop of central planners and market manipulating interventionists be able to build high enough and strong enough dykes [i.e. rig data and the markets] to stem the prospects of a rising tide of global hyper inflation?”

Gold and Economic Freedom — Alan Greenspan
“An almost hysterical antagonism toward the gold standard is one issue which
unites statists of all persuasions. They seem to sense-perhaps more clearly and subtly than many consistent defenders of laissez-faire -- that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other. In order to understand the source of their antagonism, it is necessary first to understand the specific role of gold in a free society.”

Nothing Saved For A Rainy Day — Peter Schiff
“The U.S. economy, which has clearly been a bubble in search of a pin, may have finally found one in Hurricane Katrina. However, if a recession ensues, it will not be Katrina that causes it, but rather America’s imbalanced, savings-starved economy, that left it so vulnerable to such a disaster in the first place.”

StockGate: Is All Heck Getting Ready to Break Loose?

Borrowing, Spending, Counterfeiting — Dr. Ron Paul
Few Americans truly understand how our Federal Reserve system enables Congress to spend far beyond its means, but the cycle of spending and printing money affects all of us. Simply put, the more money our Treasury prints, the less every dollar is worth.

Gold Could Hit $725 On China Demand — Bloomberg
Jewelry demand in China, the world's fastest-growing major economy, rose 13 per cent in the first quarter and investment demand rose 36 per cent, according to the World Gold Council, a producer-funded group. Chinese incomes in urban areas rose 9.5 per cent in the first half and are forecast to surge further by the end of the decade.

Watching The US Economy Crumble — Paul Craig Roberts
Good News! Soon you will no longer need an expensive college education to work in the US

DOOMSDAY: The Final Months of the "Housing Bubble" — Mike Whitney
The banks have lowered the standards for home loans to such an extent that the traditional loan of 20% down and a fixed interest rate is virtually a thing of the past. Instead, those conservative practices have been replaced with “creative financing” schemes that put the entire housing market at risk.

America's Truth Deficit — William Greider
“[The US'] weakening position in the global trading system is obvious and ominous, yet leaders in politics, business, finance and the news media are not willing to discuss candidly what is happening and why. Instead, they recycle the usual bromides about the benefits of free trade and assurances that everything will work out for the best.”

Gold Price Suppression — Ron Lutka
The number one problem facing the world today is not poverty or AIDS or drugs or global warming or manufactured terrorism.

Asset Hyperinflation — James R. Cook
That utter collapse is coming as surely as the sun will rise tomorrow and the government will keep inflating until the bitter end.

Gigantic Glob of Gluttonous Debt — Richard Daughty
“And with future inflation in the cards, perhaps this is the time for me to tell you that you should put down that TV remote and get up off your fat butt and go buy some gold and silver. Lots of it. And any other commodity that you can get...”

THE GLOBALISTS' BEST FRIEND: AMERICANS' IGNORANCE
Steven Yates, Ph.D writes, "...[T]he globalists will be back in Europe, perhaps with a revised EU Constitution, perhaps with something else."

The Financial Endgame Slowly Plays Out — and then... — Nigel Maund
As Yoda says to Luke Skywalker in the Empire Strikes Back, “You're not scared? .....You soon will be! Oh yes! You soon will be!”

Pirates Reprise — Rob Kirby
“To say that today’s news headlines are chock full of reporting about possible hedge fund problems arising from the downgrade of GM and Ford’s credit ratings is an understatement.”

Reject Taxpayer Bank Bailouts — The Honorable Ron Paul of Texas

National ID Won't Stop Terrorism or Illegal Immigration — Dr. Ron Paul
This week marks the American public’s last chance to convince their Senators they don’t want to live in a nation that demands papers from its citizens as they go about their lives.

Derivative Debate — Rob Kirby
“They're back in the news again - a lot lately. Derivatives. They have been mentioned in relation to woes at Fannie Mae, Freddie Mac, G.M. and A.I.G. to name but a few
high profile users of these fandangled tools of modern day high finance.”

America By the Numbers — Michael Ventura
“No concept lies more firmly embedded in our national character than the notion that the USA is 'No. 1,' 'the greatest.' ... In fact, anyone saying otherwise will be labeled 'un-American.' ... [America] must borrow $2 billion a day from its competitors in order to function. Yet the delusion is ineradicable. We're No. 1. Well...this is the country you really live in...”

Petro Dollars — Jim Willie
“The term 'Petro-Dollar' has been bandied about for years. Much has been mentioned in indirect terms about it, with assumptions of its nature and structural significance. It is mentioned often carelessly when talking about crude oil and its Persian Gulf sales. Yet little is written on the topic, and little is easily found to read and learn.”

The Gold Cartel is Dead Meat — Le Metropole Cafe
U.S. Congress and President Bush will stop the International Monetary Fund from selling
its gold, the chairman of the Joint Economic Committee said.The IMF is considering gold
sales as a way of covering bad loans it has made to impoverished borrowers now unable
or unwilling to repay, but Congressional approval would be required.

What is the real state of US markets? — International Forecaster
The descriptions here might surprise you. A MUST READ!

The Death of the Dollar — Jason Hommel
As the way of General Motors goes, so goes the way of the world.

Are Americans Ignoring Complete Financial Disaster?

The Role of Gold in the Unified GCC Currency
This is a MAJOR report by the "Gulf Research Center." It is targeted to ALL of the major Central Banks of the Middle East, as well as other oil producing nations, and the wealthy oil sheiks. It states that "the dollar is unsustainable. Gold will be a suitable means of asset protection. Once the crisis unfolds, the PRICE WILL EXPLODE." This report should be read completely!

Rampant Insider Selling Raises Red Flags
With a special commentary by Michael C. Ruppert
The Associated Press reports some major corporate execs, including some from the
homebuilding industry are dumping stocks. A serious predictor of a coming crash?

As The World Burns — Michael C. Ruppert
When the run on the dollar begins, it will be as if the rest of the world declared war on the United States of America by launching a missile, dropping a bomb, or landing an army at Bethany Beach, Delaware. That this will lead ultimately to widespread global warfare seems certain. This is exactly the way the administration is setting it up to appear to the American people. Think of 9/11 times fifty.

Ignore Danger Signs of Coming Financial
Catastrophe At Your Own Risk -- Part 1 by Devvy Kidd

Ignore Danger Signs of Coming Financial
Catastrophe At Your Own Risk -- Part 2 by Devvy Kidd

Are We In Denial?
Here is another series of articles pointing out the red flags analysts see in our economic
state-of-health. These white papers are posted in Adobe© PDF.

The Great Deluder
Dissonance & Euphoria
Greenspan’s Choice: Scylla or Charybdis?
A Terrible Foreboding
Man The Lifeboats!

Credit, Fiat Currency and Derivatives — March 2004
This series of six articles spell out the perils that we face. Take the time to to read each of the PDF files. Save them on your computer, print them in hardcopy and keep an eye on the teetering house of cards we are living with. This information is vital to you and your family's financial well-being. This material is essential.

Pulling Out the Rug
Living on Borrowed Time
Living on Credit
What is the "Real" Value of a Dollar?
Reading the Fine Print
World Reserve Currency
What Do You Know about Fiat Currency?