Dot Connecting

Even Helen Keller, Stevie Wonder and Ray Charles could see, hear, smell and feel this one coming from a mile away.

If we're going to be connecting dots, we might as well fall back upon my favorite organizational device, the dot chronology.

  • I'm just a Turd. I don't have an MBA or a PhD. I'm not a Global Financial Strategist or a Senior Economist. I live in Flyover Country USA, not New York, London or Singapore. However, even this Turd can plainly see that the current global financial/currency system is ending. We have reached the point where debt is unsustainable and, as we know, that which is unsustainable cannot be sustained. Now, if I can see this and you can see this, is it safe to assume that the leaders of China, Russia, India, Turkey et al can see it, too?
  • On Friday, ZeroHedge released a powerpoint presentation from Raoul Pal, one of the most successful hedge fund managers of this century. I found it so important that I included it in two, separate posts as I wanted to ensure that as many as possible saw and understood it. Here is one of the links: Yesterday, even Glenn Beck picked up on the story. I'm posting the video below because he does an excellent job of putting it into "english". (Please remember: It's the message, not the messenger.)

It's coming, everyone. It's coming very soon. The current global financial system that has existed for nearly 70 years is coming to a dramatic end. Preparations are clearly being made by those who will dictate the terms of the next system. That system will, undoubtedly, use gold as the basis for international trade settlement. You must prepare for this event. Those caught unprepared will see their life savings lost or depleted. Those with foresight and a willingness to prepare will be spared. They may, in fact, even prosper. The end of The Great Keynesian Experiment and, with it, the current global financial system is upon us. Continue to prepare accordingly.


p.s. Maybe Stevie Wonder could "see" it coming, after all?

p.p.s. You're probably looking for some current charts, too, so here you go.




Eric Original's picture

OK, magpie

Your obvious love for the precious made me take you off my ignore list.  I was impulsive and wrong on that, and I apologize.  Just caught me at the wrong moment on that whole thing I guess...

murphy's picture

German banks

Another Jim Willie call coming to fruition.

jrobb316's picture

Lewis Black has it right on.

Lewis Black has it right on.  That was good.

Magpie's picture

@EO...voter fraud happening

On WMAL’s The Chris Plante Show today a Michigan resident by the name of “Mike” called in to discuss how he had infiltrated a Michigan Union’s organized bus convoy, en-route to vote in the Wisconsin recall election for Democrats.

The caller claimed that Michigan’s “Democrat Unions” had organized a convoy of 4 buses, filled with Michigan Democrats, with the intention of voting for Tom Barrett in the Wisconsin recall election.


another incident:

Bugzy's picture

@Hold over

Ermm : you mean 200 and not 2000. (2K)

You are not new to the forum (36 weeks)

You do understand that the paper price is manipulated?

What is your question again?


Eric Original's picture


Dem voter fraud fearmongering? Ok, now you go back ON my ignore list!

No, just kidding, lol!!

stephanie's picture

@bardian - Beck and Paul (and Ann Barnhardt)

You wrote: "GB is a warmongering muslim murdering neocon.   He has stated that he'll take anyone for president except Ron Paul."

Sorry to be the Beck apologist here today, but I feel it's important to clarify his real stance on this:

1) Glenn Beck has said numerous times on GBTV that he is 100% behind Ron Paul on fiscal issues. He simply disagrees with Ron Paul on foreign policy (he thinks Paul is naive). I'm kind of halfway between Ron Paul and Glenn Beck on the issue of fundamentalist Islam and its threat to the West.

2) Beck recently had a liberal Muslim leader on his show talking about how hardline Islamic fundamentalists have taken over many pro-Muslim organizations in the US. He's not anti-Muslim...just anti-fundamentalist Muslim.

Now, Ann Barnhardt, darling of the precious metals community, on the other hand, has full-on called Ron Paul an anti-Semite for his lack of support of Israel: 

There's a whole can of worms I really don't want to get into here in regards to this convergence of Christian conservatism and pro-Israel sentiment, and the flip-side sentiment of anti-Zionism among many conspiracy theorists. Let's not get into an argument about that here...we can certainly talk about it in the forums though, if you wish.

Maximus's picture

Short Squeeze

For me the day trading predictive powers of the PSLV NAV turn NFG during a short squeeze.  Found out the several times it usually takes me to learn a lesson.  

Save_America1st's picture

Alex Jones say Bob Chapman is not dead at this time...

Bob Chapman is still ALIVE not DEAD - Alex Jones

Bob Chapman needs your prayers he is still alive but ill , unlike what some media reported that he passed away , the Bob Chapman that died is a soccer player with the same name ....we will keep you updated with any new info ... 
Alex Jones audio at link:

Hold over's picture

Ermm : you mean 200 and not

Ermm : you mean 200 and not 2000. (2K)

Errrrrrrr, yeah. (Yeager)

Yeah I get it but you would think the market would be forced to respond to massive buying of physical metal. 

kn33bar's picture

Election tonight

If Scott Walker wins tonight, I think the Obama campaign may take it as a sign he is  going to have a little harder time in November.

I would bet that if Walker wins, Obama pushes for QE to goose up the economy prior to the November election.

Grigeo's picture

Ann Barnhardt

"Ann Barnhardt, darling of the precious metals community, on the other hand, has full-on called Ron Paul an anti-Semite for his lack of support of Israel"

Life must be good when you consider anyone who disagrees with you a wimp / anti-Semite.  In this world that is a really disgusting accusation to throw at someone.  And Ann knows it and apparently does not care.

As Ann considers herself a Trad Catholic, it would have been nice if she could have given Ron Paul the benefit of the doubt here, if only based on Pope Saint Pius X's response to Theodor Herzl.

In 1904, Theodor Herzl, the founder of modern Zionism, was granted an audience with Pope St. Pius X. His purpose in meeting with the Pope was to gain support for the founding of a Jewish state in what was then known as Palestine. As Herzl recorded in his diary, the Pope gave an unfavorable response, saying: “We are unable to favor this movement. We cannot prevent the Jews from going to Jerusalem – but we could never sanction it. The ground of Jerusalem, if it were not always sacred, has been sanctified by the life of Jesus Christ. As the head of the Church, I cannot answer you otherwise. The Jews have not recognized our Lord, therefore we cannot recognize the Jewish people. And so if you come to Palestine and settle your people there, we will be ready with churches and priests to baptize all of you."

There are a great many Catholics that would consider Ann's accusation of anti-Semitism an act of public slander.

The Death Ceiling's picture


Linked below is a short report from the bbc about a new EU plan to protect taxpayers from failing banks, wait till you get to the last line in the report, a wonderful bit of comic timing....

Bugzy's picture

@Hold over

What do you think will happen if all these players keep taking Gold off the market going forward?

Can we print more Gold perhaps?

Is the supply finite or infinite? (ok no clever answers here)

So if there aint any left and so the only way to get it would be to say - buy a contract and stand for delivery and if there is no Gold to deliver and............

The price of Gold is always the physical price.

At the moment, the paper price can dictate what the physical price is. This can only happen as long  too many do not stash all the physical. At some point the physical price will dictate the paper price. 


Mickey's picture


don't look now but gold is up by over $10, silver 20 cents.

Its a bit of everything--europe, everything here,

Airgead's picture

Ann Barnhardt

I wouldn't put much weight on remarks of said lady about religion related matters: here ideas on these matters seems slightly, just a little bit strange.

Perhaps she is just a little bit too enthusiastic in these matters, just saying. 

bam's picture

Precious metals catching a bid.... far do they let them go?

murphy's picture

Face Plant

That didn't take long. Which underling at MS will take the fall?

The lawsuit accuses Mr Zuckerberg, Facebook and several banks led by Morgan   Stanley of hiding the company's weakened growth forecasts ahead of its $16bn   initial public offering.

The defendants are claimed to have concealed from investors during the IPO   marketing process "a severe and pronounced reduction" in Facebook revenue growth forecasts.

bam's picture

@ The Death Ceiling

LOL!   That actually made me laugh.    Good lord, that's awful.

BTW I'm offering shelter from Hurricane Katrina for anyone who wants it.  Just let me know via PM.

The Death Ceiling's picture

Oh, and....

From time to time I read comments by people who just seem intent on dividing us.

Some of us just stack, others believe in the miners too.

Some of us believe currencies will once again be backed by gold, others believe that just won't happen.

Some of us think the paper price of Silver will rise, others that it will fall.

That Gold is the best move, or that Silver will outperform it.

That one Turdite is more 'loyal' than another.

Don't we all just want to protect ourselves and those around us? If you are convinced you know how all of this will play out then you don't know a lot about chaos.

Big Buffalo's picture

OK Folks

Hey, you remember in December of 2011, Gold was $1560ish and Silver was $26.50ish...

and you didn't (I know I didn't - no $$) buy because you thought it would get cheaper.

Then, in Feb 2012 - you swore - "if only gold could get down in the $16xx's, I'll buy" or "man if it gets a $15xx handle, I'll buy"

Well, you remember the last couple weeks we were presented with the great Euro gift, and Gold was $1550ish and Silver was $27.50ish.

DID YOU BUY? (what you could at least), ARE YOU WAITING for it to go back to $1525, $1550, $1575, $1600? ARE you waiting for silver to go to sub-$24?

It may or may not go back down or up. And we can buy at $1700 / $30, and it would be a pretty good deal there too, but wouldn't it be nice to have a few more ounces of both at these prices?

stealthbear's picture

Bob Chapman

It seems that Alex is wrong on this....there is a short obituary on the Ott-Laughlin Funeral Home website. They are in Auburndale, Florida.  Someone provided a link to this site earlier this afternoon.

gatortrader's picture


Heavy resistance above there. I see a selloff coming around 3am,hmm,  don't ask me why. Ill have my finger on the trigger for a brief dip under 1610 tom come noon-4p. And some more powder ready the Bernakster on thur.

Bugzy's picture

@ the death ceiling

Perhaps if we all spoke in one Borg like collective voice you would feel better?

Maybe a cult mentality would be more to your liking?

What exactly would you like it to look like, please explain. Perhaps you could choose say between Silver or Gold and we can all just line up behind you.

Actually, I appreciate your thoughts and I think that we are a fairly close and healthy bunch considering the amount of free thinkers here.

Take Care.


Edit: As for Ann Barnhardt. Very intelligent and loopy and articulate = pretty damn scary = one hot chic. 

opticsguy's picture

61-38% with 23% in (WI)

This should be a stock market positive, and I agree that the pressure will be on Bernanke to try something to help his boss.  Maybe the $3K handout gets kicked up to $5K.

stephanie's picture

Ann Barnhardt

Ann Barnhardt has made a name for herself in part for saying offensive things other people are too afraid to say. I think she actually got her original 15 minutes of fame for burning a Koran on YouTube. She's nuts, but she's also pretty darn smart for a crazy lady. When she talks about stuff like MF Global, she's right on the money. When she talks about "Musloids," and then gives out her address to anyone who wants to pay her a "visit," I just roll my eyes and laugh at the absurdity. You have to give it to her - she is pretty darn tough.

I guess I just take people with a grain of salt in general, and try not to let them upset me too much. :-)

California Lawyer's picture

Paul Craig Roberts - Assumptions Assure Analytical Absence

Paul Craig Roberts penned a nice piece here.  I really like his analysis, but he there are some holes.  

The opening argument is below:

"In other words, financial deregulation leading to Wall Street’s gambles, the US government’s decision to bail out the banks and to keep them afloat, and the Federal Reserve’s zero interest rate policy have put the economic future of the US and its currency in an untenable and dangerous position. It will not be possible to continue to flood the bond markets with $1.5 trillion in new issues each year when the interest rate on the bonds is less than the rate of inflation. Everyone who purchases a Treasury bond is purchasing a depreciating asset. Moreover, the capital risk of investing in Treasuries is very high. The low interest rate means that the price paid for the bond is very high. A rise in interest rates, which must come sooner or later, will collapse the price of the bonds and inflict capital losses on bond holders, both domestic and foreign."

I have to take issue with his reasoning.

First, I do agree with the opening sentence.  It is factually accurate, and his conclusion that we are in a dangerous position is spot on.  

However, he claims that "[i]t will not be possible to continue to flood the bond markets with $1.5 trillion in new issues each year when the interest rate on the bonds is less than the rate of inflation."  Oh yeah?  Says who?  How did that much get funded THIS  year, then?  Of course there can be a flood of new bonds. So long as there is a buyer, the flooding can continue indefinitely.  Why would an interest rate differential matter when the FRN's are conjured out of thin air anyway?  See the flaw here?

I quarrel with this: "Everyone who purchases a Treasury bond is purchasing a depreciating asset."  Wrong.  He did not account for the FED doing the buying.  What if the FED conjures up FRN's out of thin air and uses the freshly minted FRN's to exchange for the US govt bonds?   If you or I use our savings of silver or gold to exchange for govt bonds, then yes, we are trading for a depreciating note payable, and are exchanging something of value with no counterparty risk [silver, gold] for FRN's, which are just notes payable, and which bear counter party risk.  The counter party risk is that the counter party will debase the note payable by printing up more notes, thus debasing the value of what is to be repaid.  Plus, there could be a default.  So, he misses the analysis here.

I quarrel with this, too: "Moreover, the capital risk of investing in Treasuries is very high."  No, it is not, if the FED does the buying.  How can magically-created bankster paper bear any risk at all, when the FED can just create more at a whim?  

"The low interest rate means that the price paid for the bond is very high."  Not if the FED does the buying, since they can just create more FRN's at will.

The conclusion is thus, flawed: "A rise in interest rates, which must come sooner or later, will collapse the price of the bonds and inflict capital losses on bond holders, both domestic and foreign."  Wrong.  Who says a rise must come sooner or later?  How can interest rates rise without an immediate collapse?  Why would rates ever have to rise now that the FED is monetizing the US govt debt?  The only limit on this mass printing of FRN's is the world's confidence in the dollar.  If confidence in the dollar fails, the system collapses.  Period.  Further, any capital loss would just be met with fresh FRN printing by the FED.  We have seen that since 2008, and that kept the system alive, and we will see it happen from now on out until the system collapses.

So, interest rates cannot, and therefore, WILL NOT rise.  I am so certain of this that I have staked my entire net worth on it.  I hold NO paper, NONE, except for immediate cash flow needs.

The system is unsustainable now, and there is just no ability for interest rates to rise. If they rise, then more US govt borrowing will have to occur, which will make rates rise even higher, etc., and thus the spiral occurs, collapsing the system.  Either the US undergoes a miraculous productivity transformation, and economic growth diminishes the problem, or there will be declining economic productivity, interest rates will stay artificially low for the prolonged time frame, and the US muddles along in and out of deflation for decades. 

Wait, does that not sound like Japan [credit MISH for calling this at least five years ago, by the way]?

But, nonetheless, he gets it TOTALLY RIGHT, towards the end:

"Fed chairman Bernanke has spoken of an “exit strategy” and said that when inflation threatens, he can prevent the inflation by taking the money back out of the banking system. However, he can do that only by selling Treasury bonds, which means interest rates would rise. A rise in interest rates would threaten the derivative structure, cause bond losses, and raise the cost of both private and public debt service. In other words, to prevent inflation from debt monetization would bring on more immediate problems than inflation. Rather than collapse the system, wouldn’t the Fed be more likely to inflate away the massive debts?

Eventually, inflation would erode the dollar’s purchasing power and use as the reserve currency, and the US government’s credit worthiness would waste away. However, the Fed, the politicians, and the financial gangsters would prefer a crisis later rather than sooner. Passing the sinking ship on to the next watch is preferable to going down with the ship oneself. As long as interest rate swaps can be used to boost Treasury bond prices, and as long as naked shorts of bullion can be used to keep silver and gold from rising in price, the false image of the US as a safe haven for investors can be perpetrated."

This is a great piece, worthy to read and study.  It says a lot.  But, understand some of the flaws.

Steinbacken's picture

GB Hates Thomas Jefferson

Thomas Jefferson was one of the most brilliant writers in history.  GB said repeatedly on his FOX show, "Thomas Jefferson was an idiot." and he didn't have his 'I am being sarcastic' look ever when he said it.  Instead, he had his 'I really hate this guy' look.

Not sure what a GB world would look like, but I don't think I want to be there, either.

I might change my mind if I could get one of those teary-eyed he-brewing bribes hanging off of his beck pocket.

Dr Jerome's picture

Evening buyers

We haven't see these evening buyers in a long time. I wonder who is bidding metals up?

3am may be interesting.

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