Weekend Assignment

Sat, Sep 29, 2012 - 12:02pm

If you can spare a few minutes this weekend, please check out this video.

You may recall that, last month, I recorded a podcast with David McAlvany of McAlvany Financial. Here's a link in case you missed it: https://www.tfmetalsreport.com/podcast/4131/tfmr-podcast-26-david-mcalvany-mcalvany-financial-group. I had met David earlier this summer at FreedomFest and had come away impressed. Here was a guy...an actual investment advisor...who seemed to "get it".

As part of their marketing plan, McAlvany Financial is producing three videos this year that attempt to describe and summarize some of urgent financial issues that are bubbling just below the surface. The first video, which dealt with the ongoing financial crisis in Europe was released back in the spring.

The Fuse is Lit | European Perils | Part 1

Just this week, they released part 2 of "The Fuse Is Lit" series. This one is entitled "Asian Ascendance". For my part, I agree with almost all of David's conclusions here and I highly urge you to watch the video. The only area in which my opinion differs from David's is regarding a collapse/bubble in treasuries. I don't think this is imminent, at least not likely in the next 3-5 years. Perhaps because QE∞ was announced post-production, David may have since re-evaluated his position. I'll have to check with him to see. Regardless, this is definitely worth 25 minutes of your time.

The Fuse Is Lit Part 2 Asian Ascendance


That's all for now. Have a great weekend!


About the Author

turd [at] tfmetalsreport [dot] com ()


coatrackbox The man who stole a leopard
Sep 30, 2012 - 8:46pm

Hyper Inflation

That was in depth and I thank you for the effort! I have read most of the articles you listed and am aware of past histories with hyper inflation. What I was searching for was if someone had made a tipping point formula using M2, debt, VOM, or any other combination of variables that one could extrapolate out using USA data. Granted since dollars are a world reserve currency this would introduce many more variables than a simple Zimbabwe one nation model.

tmosley El Gordo
Sep 30, 2012 - 8:47pm

Gordo,If you want to fix it,


If you want to fix it, get rid of the Fed. That is the only option. But a bandaid is to regulate what the GSEs can do. Such action is what has allowed the US to survive for the last 98 years. I never said it was optimal or that it was desired. I'm an anarchocapitalist, for fucks sake.

No-one in power is interested in addressing the real problem, but it would be helpful to the rest of the market to tell these guys they can't do "X", just like it is best to get rid of government granted monopolies, but if you aren't willing to do that, you have to tell them they can't just charge whatever they want, and they must provide at least some quality of service.

You have to understand the implications of the existance of the Fed, and the consequences of unbridled action by them. THERE IS NO MARKET while the Fed exists. How can a market that doesn't exist fix anything? END THE FED.

The man who stole a leopard
Sep 30, 2012 - 8:48pm

RE: clarification

Thanks punchbowl, I found this handy reference...

Sep 30, 2012 - 8:48pm

cost of milk in great depression versus now

That story on California diaries made me think.

I'm a life long California citizen. I hope California lawyer sees this story because there's probably really good dairymen in IE going under right now. Katie Rose's posting really told me alot too. Katie if you see this set of posts, I'm totally praying for you and every other small farmer in the Western US. If you can't make it, I'm going to be very hungry this winter. And, I can not sustain myself on NFL Football and beer alone. Heck the barley and hops going to Coors/Molson might be making the six pack get pricey too, right?

Anyways going back to the story of the milk.

I located a story on Western dairy men who were suicidal over the economic situation in California two years ago. https://westernfarmpress.com/alfalfa/depression-driving-some-dairymen-su...

Here's some numbers.

Milk in the Great Depression was 14 cents per quart according to wikianswers. So, for our purposes, let's say it's $0.60 per gallon.

Recall that $1.00 was roughly one ounce of silver in the 1930's (silver dollar).

So, one gallon was worth roughly a half ounce of silver (I know it's rough, but make the math easy).

Silver is $35 per ounce today.

That would mean a gallon of milk should be $17 but it's not. The gallon of milk is roughly $15.00 ($4 per quart) in our area.

Get it?

You're not in silver as a money maker. It's a long-term wealth preservation tool. When short term economic shocks impact the value of US dollars and they print more dollars, the ripple effects are extremely challenging for the small or medium sized businesses to handle. This includes the diary men, the farmers, the independent small business, and even the small professionals (doctors, accountants, and lawyers).

Green Lantern
Sep 30, 2012 - 8:50pm

Re: Sai Baba and Gold Lingham

Ok this isn't about Jim Sinclair and his spirituality. I don't care. Consider this a lesson in culture and gold related.

Ever since the Beatles went to India in 1968 to study Eastern religions, it became quite a popular thing among musicians. I was a fan of a famous jazz musician who also was a devotee under Baba but I guess he quit later in life. He used to come on stage with these HUGE necklaces of precious gemstones that he purported that Sri Sai Baba manifested out of the eithers as a gift. There are many stories of this guy manifesting gold, rubies, emeralds, diamonds and watches out of his mouth. In Hinduism, this is called Lingham. Most often he manifests this dust that his followers wear on their forehead.

So here he is producing a gold ball from his mouth. I'd guess that sucker has to be at least four ounces of pure gold. If I were an elite mining executive, I'd kidnap him and tell him to start producing about 100 of those balls a day.

SAI BABA :: Lingam - Mahashivarathri 2006

My guess is that there probably isn't one hindu among us. Alot of people from Judeo Christian backgrounds, athiest and agnostics. My point is go easy with the jokes out of respect. That way when you tell a Hindu that your savior walked on water, cured lepers, and came back from the dead, they will respect your believe. It's just a gold story

Sep 30, 2012 - 8:51pm

Crumbs. Turd is gonna be

Crumbs. Turd is gonna be disappointed with The Ryder Cup result but what a day ! The Europeans put on an terrific performance largely motivated by Seve (who sadly passed away last year for those who didn't know). A wonderful golfer full of fire and love of the game.

Severiano „Seve" Ballesteros Highlights (* 9. April 1957 - † 7. Mai 2011)
Sep 30, 2012 - 8:56pm

One other thing to say here

The Commodities market is supposed to help these diary men protect their long-term financial stability.

The problem is that they can not use the market to protect themselves without gambling their future production. Instead of being able to live with peace of mind, they end up distorted by the criminal short selling stacked against them in the futures pit.

CFTC may be focused on the precious metals.

I'm more interested in the grains and food pyramid.

This CFTC problem has implications for farmers across our nation. Whether you look at MF Global or PFG or GoldmanSachs, these derivatives are sucking the life out of real people and real businesses in favor of delivering that capital to the hands of a thief.

We discussed Katie's observations of alcoholic and drug dependent thieves in her area sucking capital out of her farm.

Unfortunately, the alcoholic and drug dependent traders in NYC are also sucking the life out of our nation. They are liars in the same fashion and are thieving the future of our nation in the same way. It's just that the theft of Katie's physical metal is more clear.

But, the longer term theft of our nation's farmers and farms is highly unacceptable.

It's to a point that the people should be rallying with the Western Farmers to demand changes in California agricultural policy. If said changes do not eliminate short interest speculation, we will not eat!

Sep 30, 2012 - 8:58pm

Not on my watch

Wall Street's Judicial Corruption

Posted by Derrick Michael Reid on Sunday, September 30, 2012 8:40:23 PM

Wall street not only has the politicians in their pocket, the judiciary is corrupt as well. Concentration of futures positions is PER SE criminal manipulation, but judiciary just folds to wall street interest. Wonder how much was pocketed on this one.

(Reuters) - A U.S. judge handed an 11th-hour victory to Wall Street's biggest commodity traders on Friday, knocking back tough new regulations that would have cracked down on speculation in energy, grain and metal markets.

Judge Robert Wilkins of the U.S. District Court for the District of Columbia threw out the U.S. Commodity Futures Trading Commission's new position limits rule, and sent the regulation back to the agency for further consideration.


Any fool in the commodities markets knows that JPManipulator is a RICO firm criminally fleasing small spec's, day in, and day out, getting "flushed", for years, but gets a pass, less the metal markets explode and reveal the true extent of the dollar dire position.

NOT ON MY WATCH, is the watch word.

This of course will help extend the bull, longer and higher. Just get some popcorn, take a metal position, and kick it ....

Strongsidejedi Green Lantern
Sep 30, 2012 - 9:02pm

@Green Lantern

No joke, I saw that same golf ball on sale at my local coin shop. It's silver inside and gold plated outside. I forget how much he wanted for it.

And, for the guy posting the comparison between cats... I don't think I quite see the differences. Can you post more of the cougar in particular? :)

Sep 30, 2012 - 9:05pm

Iron Man

Video unavailable

Iron: The Core of the Developing World

Iron has been extremely useful to mankind for more than 3000 years, and now accounts for 95% of all metal produced annually. Iron ore is now the world’s second largest commodity market after oil and is essential for developing nations to build infrastructure and to modernize.

China’s rapid industrialization in the last decade has caused huge increases in global iron demand. In fact, China is responsible for all the growth in steel consumption since 2000. Because China relies heavily on iron ore imports, this surging demand has placed huge strain on the global iron supply.

This has pushed iron exploration into untapped regions and iron price has risen steadily until peaking in 2011. While the price of iron has softened as of recent, the long-term outlook for iron is strong.


Sep 30, 2012 - 9:06pm

But Jim Rogers

says that farmers will be the next group to own Lamborghinis and Ferraris. He says we should invest in farms, so what are these Californians doing wrong?

Sep 30, 2012 - 9:07pm

CA Lawyer, so it boils down to...

First, thanks for the recap. Makes me crazy just seeing the language used. Is it not an insult to all that is common decency and good sense?

Seems it just boils down to: The CFTC is working in concert with the banksters, the judges, the politicians and TPTB, by doing everyone a favor by dissent among the "watchdogs" themselves and by planting an ambiguous 'poison pill' in the ruling itself. Maybe it was Chris (got mine, buh bye) Dodd and Barney (never met a frank I didn't like) Frank that inserted the ambiguous language that they knew would be impossible to resolve.

No doubt good cop Bart (Class Clown) Chilton will come out next and say that he is disappointed in the ruling and will stay the course to make sure that all investors are protected, Gary (the weasel) Gensler will hide in his office, on the phone with his Goldman Sachs masters until his Cartel bosses tell him to come out, make nice with the public and fine another bank a few million in chump change for stealing billions in something or other. All for appearance mind you.

We are entering the deepest territory of the Wild West here, where the rule of law is no more than who has the most guns and the largest gang. There will be figurative blood. The markets will dive violently until the good guys wearing white hats ride in and snap up all of the physical gold and silver (since there are now no position limits). This could happen very quickly after the first waterfall, but WDIK?

Taking it further, then we might see the Cartel wish that they had left well enough alone and concede position limits for the "good of the country" or such. Maybe they'll retreat to Fort Knox with the Fedskies before declaring Force majeure and claim, by decree, all paper assets (IRA's) of pensioners and all the physical that they can re-hypothicate from the weakest links in the chain of the bankster usurpers.

At that point I expect the King Rats to flee the country with their personal stashes, where they will live in the lap of luxury... until the posse shows up at their seaside villas to bring them to justice. But not in the way that we currently view justice.

Maybe I've misinterpreted the whole thing. Legal documents do tend to make my eyes cross. In my heart I just know that, at some point, the paper price of gold and silver will only mean something to those that hold paper and think they have it. They don't. It won't be pretty when they find out.

Sep 30, 2012 - 9:08pm

I sat next to that cougar at

I sat next to that cougar at lunch in Trattoria del'Arte in New York many years ago; when she was still a fox.

Torpedo Fish
Sep 30, 2012 - 9:13pm

@Torpedo Fish

"Sinclair is a Sai Baba devotee"

Seriously? It that is the case he has lost all credibility as far as I'm concerned.

Sep 30, 2012 - 9:14pm

Random Govt. Archive: 1974 - Forcible Entry

"TRAINING FILM: Demonstrates situations in which police are excused from compliance with statutory knock and notice requirements when forcibly entering premises. Explains exigent circumstances, emergency situations, consent to enter, and police trickery to gain entry." Film placed in the National Archives by the FBI, produced by the California Department of Justice.

Public domain film from the National Archives

Video unavailable
TexasStacker Strongsidejedi
Sep 30, 2012 - 9:34pm

@California dairies

funny, when i lived out there all the tv commercials talked about how the milk came from "happy cows." Cows may be happy, doesn't sound like the farmers are.

GS_PHYS Green Lantern
Sep 30, 2012 - 9:38pm

GL,I am from India and still


I am from India and still living in India.

Mainstream Hindu's don't consider Sai Baba to be more than just a magician. On many times Sai Baba in his lifetime was challenged to do these acts of magic in front of others (and not just his devotees), but he never did for the risk of exposure of his magical art which has nothing to do with the Hindu religion .

He has no acceptability, although Santa has fallen for him, but not many of us.

Any religion is much bigger and complex than these tricks from a man who died with Kilos of gold near/under his bed. But he could not carry his gold and other precious belongings along with him in his last abode. Only in death he could part with his wealth. Which is so much against Hindu teachings. At the time of his death and his age, he should not have been attached to his wealth the way it appears thru news reports.


muscrat Strongsidejedi
Sep 30, 2012 - 9:38pm

The problem is not

The problem is not derivatives, the problem is fraud and that the banksters don't play be the rules everyone else has to. When used properly (putting up margin, being listed, marked to market, etc.) derivatives basically get a person 10 to 1 leverage. That's not that big a deal.

William James
Sep 30, 2012 - 9:52pm

Jim Sinclair

Re: Jim Sinclair


First! Post, that is.

There are many varieties of religious experience, and an even greater variety of thoughts about those experiences. But there are no thoughts in Silence, where Truth abides. Those who know It, point to It; those who don't may feel an intimation, and seek. Those who identify with thoughts see mostly thoughts, and miss the Silence for a bit longer.

I think that gold reminds us of the incorruptible silence we come from. Ultimately, I think we value it because it is ironically a derivative that reminds us of true value.

So I am not surprised that Mr. Sinclair is a seeker of Gold.

And I suspect that many here are alchemists but don't know it.

This is an amazing place.



Sep 30, 2012 - 9:52pm

The cows don't look too happy

in Northern California when you drive up Interstate 5 from SoCal.

Sep 30, 2012 - 10:11pm


I was going to go off on a long rant about voting, but it's just not worth it.

Let's bring it up again about a year from now and we'll let all the voters here tell us how well it worked out for them.

Here's my prediction:

Whoever wins...

1) The Fed will still be printing money,

2) The drones will still be flying,

3) Millions of people will still be in prison for non-violent, victimless crimes

4) And between federal, state and local governments I will still be forced at gun point to give up almost half my income to pay for it all.

Anyone want to bet an ounce of silver that I'm wrong?

The argument that the two parties should represent opposed ideals and policies, one, perhaps, of the Right and the other of the Left, is a foolish idea acceptable only to the doctrinaire and academic thinkers. Instead, the two parties should be almost identical, so that the American people can "throw the rascals out" at any election without leading to any profound or extreme shifts in policy. - Carrol Quigley, Tragedy and Hope
Sep 30, 2012 - 10:11pm

How It's Made: Gold/Silver

Gold - How its made
How its Made - Silver
meddle magic
Sep 30, 2012 - 10:15pm


Did you perviously work for Fido in Dallas?

Sep 30, 2012 - 10:16pm

Removed comment

Removed comment.

Patriot Family
Sep 30, 2012 - 10:16pm

Biochar - I drove around

Biochar - I drove around Bellevue for a couple of days when I was visiting the Seattle area for a job interview. Nice city. Didn't see any panhandlers there or in downtown Seattle, but then again it was the Labor Day holiday weekend and the police were out in force. I did visit a coin shop next door to a Chipotle restaurant where I bought a sheet of silver bars, and 95% of the customers were selling.

Katie Rose - my wife and I constantly talk about barter items and what we should stock up on. We've considered going heavy on the ammo, extra long term food items, basic necessities. My wife has been very adamant that we need to stock up on clothing, especially warm clothing and boots. No idea why but it's a constant theme for her. Good Will stores yield some excellent bargains in this regard, and military surplus offers excellent bargains on boots, technical warm and cold weather clothing, as well as goretex and very tough work clothing for around the farm (BDUs). I can buy three sets of BDUs in great shape for about $45, and then dye them so they don't look like military stuff if needed. They last for years and flex to fit my waistline as I gain/lose weight.

Outside of barter items, I am trying to think through a trade where I can set up a production facility in a small shop in my home or on my property. Just need to see where we settle in, and what kind of neighbors we would have along with a ready market. There is a difference between surviving and thriving. We'd rather thrive!

El Gordo
Sep 30, 2012 - 10:18pm


Is that the one they call "mother's little helper?"

Sep 30, 2012 - 10:19pm

a littel math work

OK--so we have a cash flow deficit in the US of $1.3 Tril to 1.5 Tril.

Add to that the 1 Trill run rate of Fed buying Treasuries with money from heaven.

Then we have the guarantees of agencies like Fannie and Freddie.

So what have we gotten from our nearly 3 Trill in deficit spending.

Not much.

Certainly not a better economy (yeah yeah--I know the mantra--it would have been worse without the deficit spending).

But we take in 2.2 trillion in taxes and still have the 3 tril deficit. And thats cash flow accounting and not accounting for entitlement unfunded liability.

This is going to end badly with either wrecking the currency or collapse--or both. Default in there somewhere.

Dyna mo hum Anonymous
Sep 30, 2012 - 10:25pm


Moderation in all things......... LMAO

treefrog Puck Smith
Sep 30, 2012 - 10:35pm


"Sinclair is a Sai Baba devotee?"

don't know either way. he WAS a sai baba follower, but he's been remarkably silent about it for a couple years. i'm not sure about the timing, but he may have been silent since the pedophilia reports surfaced.

there have been a lot of sincere people who have been disillusioned and shocked by the depraved behavior of their spiritual leaders. catholics come to mind. the response of many catholics has been shocked, saddened, and silent.

i'm willing to give santa the benefit of the doubt.

Sep 30, 2012 - 10:37pm

Excuse me Xeno,

The judge knew exactly what he was doing when he ruled in favor of the gov's ability to manipulate for paper.


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