Review - “Extraordinary Popular Delusions and The Madness of Crowds” by Charles MacKay

Sun, Nov 3, 2013 - 12:06pm

I have a necessary library of trading and market related books, both in printed and electronic form. To do things I believe that you need to allocate resources. For investing, one resource is, obviously, money or capital to invest or trade with.

Other things can be equated with money, for they have difficulty in the getting. Power is one – it can be used to seize money from those who have it. Another is knowledge, for with knowledge money can be made or created. A third primary resource is time. It takes time for all things to happen, time to gain power, even a HFT algorithm requires a small amount of time to carry out it’s instructions, and it takes time to learn knowledge.

I’m talking of knowledge today. This is the first of a series of book reviews which more or less could be called my own Recommended Reading List for Traders and Investors. It’s personal and some famous works will be left out, and I assume some minor works will come as surprises, as the prioritization is my own and based on my personal experiences and thoughts.

I had an inner debate about whether the #1 slot should go to MacKay or Lefevre/Livermore, but MacKay wins out because his work transcends trading, or even markets. It is a study of humanity. I expect everyone would benefit to a certain degree from reading this.

Oh, I should mention – Charles MacKay wrote it in 1841. That’s 172 years ago, 50 years after the French revolution, and 20 years before the American Civil War was to be fought.

I add at this point that I have three volumes of this book in my personal collection: A 1980 facsimile of the original, 724 pages in length, an electronic one, and also a new compact (abridged) hardback edition from Harriman House of 2003, 115 pages, and reprinted several times since. So this is an investment classic and still in very high demand, hence the reprints. The main difference between my two paper editions, apart from weight, is that the recent compact volume contains the financial bubbles whereas the original full text describes these however it also recounts other historical manias not related to finance like Fortune-Telling, Duelling, Haunted House, Poisoning and other manias.

I’ll stay with the compact volume for this review seeing as it will be read by investors and traders in the main. The illustrations are representative of my quirky thought process and not intended to be manipulative or imposing a political view. They are merely chosen to transcend the time of writing of the excerpted texts visually.

So what book written back then could be so pertinent today? I must get out of the way and let Charles MacKay's words speak for themselves. Here are some quotes from the first section about John Law and the Mississippi Bubble. You can judge for yourself.

Early on his wisdom was noticed and discussed in the media:

All the small poets and litterateurs of the day poured floods of adulation upon him. According to them, he was the saviour of the country, the tutelary divinity of France; wit was in all his words, goodness in all his looks, and wisdom in all his actions.”

Real assets were sucked in while paper was issued to acquire these items of value:

... It was remarked at this time that Paris had never before been so full of objects of elegance and luxury. Statues, pictures, and tapestries were imported in great quantities from foreign countries, and found a ready market.

All those pretty trifles in the way of furniture and ornament which the French excel in manufacturing were no longer the exclusive playthings of the aristocracy, but were to be found in abundance in the houses of traders and the middle classes in general. Jewellery of the most costly description was brought to Paris as the most favourable mart;”...

The wealth effect is described so well, as is the link between the Sovereign Ruler and Financier:

“...Thus the system continued to flourish till the commencement of the year 1720. The warnings of the parliament, that too great a creation of paper money would, sooner or later, bring the country to bankruptcy, were disregarded. The regent, who knew nothing whatever of the philosophy of finance, thought that a system which had produced such good effects could never be carried to excess. If five hundred millions of paper had been of such advantage, five hundred millions additional would be of still greater advantage. This was the grand error of the regent, and which Law did not attempt to dispel. The extraordinary avidity of the people kept up the delusion; and the higher the price of Indian and Mississippi stock, the more billets de banque were issued to keep pace with it.

On astute individuals hedging to protect against the inflationary loss this next quote reads like it was written both next year and in the 1930s, some 92 years after Mackay published his book:

“ ... In February 1720 an edict was published,

which, instead of restoring the credit of the paper, as was intended, destroyed it irrecoverably, and drove the country to the very brink of revolution. By this famous edict it was forbidden to any person whatever to have more than five hundred livres (20l.) of coin in his possession, under pain of a heavy fine, and confiscation of the sums found. It was also forbidden to buy up jewellery, plate, and precious stones, and informers were encouraged to make search for offenders, by the promise of one-half the amount they might discover. The whole country sent up a cry of distress at this unheard-of tyranny. The most odious persecution daily took place. The privacy of families was violated by the intrusion of informers and their agents. The most virtuous and honest were denounced for the crime of having been seen with”

And that is just the section about John Law!

I do not wish to spoil with excessive quotation, only two more, but the sections about the South-Sea Bubble and the Tulipomania are just as archaic distant history, and at the same time they describe exactly what is going on around us today in our Central Bank- Politician-Banking controlled present day world.

So to finish this review, I excerpt two short and memorable pieces – first from Charles Mackay’s 1st 1841 edition and another from his preface to the edition of 1852, written 160 years ago: “... millions of people become simultaneously impressed with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first. We see one nation suddenly seized, from its highest to its lowest members, with a fierce desire of military glory; another as suddenly becoming crazed upon a religious scruple; and neither of them recovering its senses until it has shed rivers of blood and sowed a harvest of groans and tears, to be reaped by its posterity.” .....

Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”

And that last passage, Dear Reader, is as up to date as they come. If there is a"required reading list" for investors and traders, this text which has endured nearly two hundred years and still remains so appropriate to modern life's financial intrigues surely deserves the number one position on that list.


Publishers' Page for this book:

Available in printed, and electronic versions

Argentus Maximus


The author posts daily commentary on the gold and silver markets in the TFMR forum: The Setup For The Big Trade. More information about the author can be found here: RhythmNPrice.

About the Author


Dyna mo hum
Nov 3, 2013 - 12:21pm



Nov 3, 2013 - 12:27pm

First! First! First! First! FIRST FIRST FIRSTFIRSTFIRST!!!!


What could be better than cheap silver over the weekend?

How about a FIRST at TF Metals Report!

First, first, first, first first!

Have we all gone mad in the desire to be first?

Mr. Fix
Nov 3, 2013 - 12:31pm


I think most of society is delusional, but of course, most of society thinks that I am delusional.

Time will tell who's right.

Speaking of Time, that magazine cover should be entitled “The committee to enslave the world”.

Thanks, Argentus Maximus.

Have a wonderful day.

Okay Louie , now you're just bragging, and I'm jealous, I missed it by about a second.

If I was first, I would brag too.

Dagney Taggart
Nov 3, 2013 - 12:34pm


"Out of these troubled times, our fifth objectivea New World Order — can emerge..." - George H.W. Bush, 9/11/91

Nov 3, 2013 - 12:38pm

Me four

Market mania got the better of me, 4th!!!!

After FDR did his foul deed, the banksters went to work, and through WWII and through vietam, the US got the "residual" affects of a gold standard, where FRNs deficit spending actually added to GDP, and thus used to "conquer" the world. But a funny thing happened on the way to the printing presses, FRNs got saturated, and no longer have any bang per buck. Argument could be had, that fiat printing served its usefulness. Its time has come. Basic delusions persist, it wont go down easily.

Up Up and Away - Hot air Balloons
Nov 3, 2013 - 12:54pm


New World Order — Major Terror Attacks — Is Something Coming?

9-11-1990 plus 11 years = 9-11-2001 plus 11 years = 9-11-2012

On Sept. 11, 1990, President George H.W. Bush, in an address before a Joint Session of the U.S. Congress on the Persian Gulf crisis and the federal budget deficit, spoke of a "new world order."

President G.H.W. Bush: Out of these troubled times, our fifth objective -- a new world order -- can emerge: a new era -- freer from the threat of terror, stronger in the pursuit of justice, and more secure in the quest for peace. An era in which the nations of the world, East and West, North and South, can prosper and live in harmony.

On Sept. 11, 2001, the 11th anniversary of President Bush's new-world-order speech to Congress, America experienced the first-ever massive terror attacks on the World Trade Center in New York City and the Pentagon in Washington, D.C.

President G.W. Bush: Good evening. Today, our fellow citizens, our way of life, our very freedom came under attack in a series of deliberate and deadly terrorist acts. The victims were in airplanes, or in their offices; secretaries, businessmen and women, military and federal workers; moms and dads, friends and neighbors. Thousands of lives were suddenly ended by evil, despicable acts of terror.


Tuesday, Sept. 11, 2012, will be the 11th anniversary of the World Trade Center/Pentagon terror attacks.

The new-world-order vision President George H.W. Bush spoke of hasn't happened; as a matter of fact, the world is much more dangerous, especially the Middle East -- Israel's neighborhood -- thanks to political decisions of the United States.

Instead of a new-world free from the threat of terror, the United States experienced a massive Islamic terrorist attack on 9-11-2001, followed by two extremely costly wars in Iraq and Afghanistan and President G.W. Bush's nation building and active promotion of democracy in the Middle East. It also enabled Barack Obama to defeat John McCain in the 2008 U.S. Presidential election.

President Obama and Secretary of State Hillary Clinton have been actively involved in the Arab Spring debacle, which is becoming a hard-line Islamic takeover in country after country in the Middle East. This has led to an unprecedented persecution of Christians and the purging from countries throughout the Middle East, while Israel is facing its most dangerous threats in history. Moreover, under Obama's watch, Iran has aggressively accelerated its nuclear development program.

Unbeknown to these U.S. Presidents, their active roles in the Middle East have led to the rapid acceleration of final-day events and the final battle for Jerusalem (Zechariah 12-14).

Will Sept. 11, 2012, be another historical day?


President George H.W. Bush’s new-world order speech to Congress and President George W. Bush’s speech to America


President George H.W. Bush Address Before a Joint Session of the Congress on the Persian Gulf Crisis and the Federal Budget Deficit

White House transcript excerpt: click here

We stand today at a unique and extraordinary moment. The crisis in the Persian Gulf, as grave as it is, also offers a rare opportunity to move toward an historic period of cooperation.

Out of these troubled times, our fifth objective -- a new world order -- can emerge: a new era -- freer from the threat of terror, stronger in the pursuit of justice, and more secure in the quest for peace. An era in which the nations of the world, East and West, North and South, can prosper and live in harmony.

A hundred generations have searched for this elusive path to peace, while a thousand wars raged across the span of human endeavor. Today that new world is struggling to be born, a world quite different from the one we've known. A world where the rule of law supplants the rule of the jungle. A world in which nations recognize the shared responsibility for freedom and justice. A world where the strong respect the rights of the weak.

This is the vision that I shared with President Gorbachev in Helsinki. He and other leaders from Europe, the Gulf and around the world understand that how we manage this crisis today could shape the future for generations to come.

Once again, Americans have stepped forward to share a tearful goodbye with their families before leaving for a strange and distant shore. At this very moment, they serve together with Arabs, Europeans, Asians and Africans in defense of principle and the dream of a new world order. That's why they sweat and toil in the sand and the heat and the sun.

If they can come together under such adversity, if old adversaries like the Soviet Union and the United States can work in common cause, then surely we who are so fortunate to be in this great Chamber -- Democrats, Republicans, liberals, conservatives -- can come together to fulfill our responsibilities here. Thank you. Good night. And God bless the United States of America.



Statement by the President in His Address to the Nation

Transcript: click here

THE PRESIDENT: Good evening. Today, our fellow citizens, our way of life, our very freedom came under attack in a series of deliberate and deadly terrorist acts. The victims were in airplanes, or in their offices; secretaries, businessmen and women, military and federal workers; moms and dads, friends and neighbors. Thousands of lives were suddenly ended by evil, despicable acts of terror.

The pictures of airplanes flying into buildings, fires burning, huge structures collapsing, have filled us with disbelief, terrible sadness, and a quiet, unyielding anger. These acts of mass murder were intended to frighten our nation into chaos and retreat. But they have failed; our country is strong.

A great people have been moved to defend a great nation. Terrorist attacks can shake the foundations of our biggest buildings, but they cannot touch the foundation of America. These acts shattered steel, but they cannot dent the steel of American resolve.

America was targeted for attack because we're the brightest beacon for freedom and opportunity in the world. And no one will keep that light from shining.

Today, our nation saw evil, the very worst of human nature. And we responded with the best of America -- with the daring of our rescue workers, with the caring for strangers and neighbors who came to give blood and help in any way they could.

Immediately following the first attack, I implemented our government's emergency response plans. Our military is powerful, and it's prepared. Our emergency teams are working in New York City and Washington, D.C. to help with local rescue efforts.

Our first priority is to get help to those who have been injured, and to take every precaution to protect our citizens at home and around the world from further attacks.

The functions of our government continue without interruption. Federal agencies in Washington, which had to be evacuated today, are reopening for essential personnel tonight, and will be open for business tomorrow. Our financial institutions remain strong, and the American economy will be open for business, as well.

The search is underway for those who are behind these evil acts. I've directed the full resources of our intelligence and law enforcement communities to find those responsible and to bring them to justice. We will make no distinction between the terrorists who committed these acts and those who harbor them.

I appreciate so very much the members of Congress who have joined me in strongly condemning these attacks. And on behalf of the American people, I thank the many world leaders who have called to offer their condolences and assistance. America and our friends and allies join with all those who want peace and security in the world, and we stand together to win the war against terrorism.

Tonight, I ask for your prayers for all those who grieve, for the children whose worlds have been shattered, for all whose sense of safety and security has been threatened. And I pray they will be comforted by a power greater than any of us, spoken through the ages in Psalm 23: "Even though I walk through the valley of the shadow of death, I fear no evil, for You are with me."

This is a day when all Americans from every walk of life unite in our resolve for justice and peace. America has stood down enemies before, and we will do so this time. None of us will ever forget this day. Yet, we go forward to defend freedom and all that is good and just in our world.

Thank you. Good night, and God bless America.

Nov 3, 2013 - 1:01pm

The new world order is just

The new world order is just the old world order saying to the bankers & politicians "Playtime's over! We're taking our ball back!"

Nov 3, 2013 - 1:17pm

After “Currency Wars” Comes

After “Currency Wars” Comes “The Death Of Money” / By Luis Martin / Sunday, 03 November 2013 01:16

This article was written by Luis Martin and originally published at

“The world is getting closer to that end game every day,” says Rickards, who just finished writing the sequel to his bestselling Currency Wars.

In the winter of 2009, lawyer, investment banker, and advisor on capital markets to the Director of National Intelligence and the Office of the Secretary of Defense, James Rickards took part in a secret war game sponsored by the Pentagon at the Applied Physics Laboratory (APL). The game’s objective was to simulate and explore the potential outcomes and effects of a global financial war. Two years later, Rickards published what would become a national bestseller, Currency Wars: The Making of the Next Global Crisis.

In Currency Wars, Rickards concluded that a dangerous global financial crisis was not only in the making, but that it was inevitable. Based on that financial war game inside a top-secret facility at the APL’s Warfare Analysis Laboratory, a historical analysis of international monetary policy in the twentieth century, as well as his assessment of the events leading to and adopted after the financial debacle of 2008, Rickards laid out the endgame that would result from the global financial chaos of the first currency war of this century; the collapse of the U.S. dollar and the eventual replacement of fiat money with a return to the gold standard.

“The world is getting closer to that end game every day,” warns Rickards, who just finished writing the sequel to Currency Wars, titled The Death of Money, The Coming Collapse of the International Monetary System.

Due out in bookstores next April 2014, The Death of Money picks up on the disturbing predictions outlined in Currency Wars and carries the analysis further into how the international monetary system might collapse and what new system will replace it.


Nov 3, 2013 - 1:23pm

The Hollywood Stars & The

The Hollywood Stars & The Money Changers are also Name Changers ?

The Money Changers are also Name Changers ?

Some of the Hollywood Jews

The Name Changers

The Hollywood moguls long ago decided that it would help them
if they adopted names that blend in with
the dominating community. Thus Samuel Goldfish changed his name to
Goldwyn . Every single one
of the original developers of the movie industry divorced
their wives and married beautiful starlets. This
includes Louis B. Mayer, Samuel Goldwyn, Jack Warner, David O.
Selznick and Harry Cohen. They gave orders to the numerous Actors they
made "stars" to change their names to more english sounding
names. Here are but a few who followed this road to

Adopted Name ..................Real Name

Joey Adams ............................. Joseph Abramowitz
Eddie Albert ............................Eddie Heimberger
Woody Allen............................. Allen Konigsberg
Lauren Bacall .......................... Joan Perske
Jack Benny ............................. Benny Kubelsky
Milton Berle ........................... Milton Berlinger
Ernest Borgnine .........................Effron Borgnine
George Burns ........................... Nathan Birnbaum
Joan Blondell........................... Rosebud Blustein
Joyce Brothers ..........................Joyce Bauer
Mel Brooks ............................. Melvin Kaminsky
Joey Bishop ............................ Joey Gottlieb
Charles Bronson ........................ Charles Buchinsky
Rona Barrett ............................Rona Burnstein
Cyd Chrisse .............................Tula Finklea
Tony Curtis ............................ Bernie Schwartz
(daughter is Jamie Lee Curtis)
Joan Crawford .......................... Lucille Le Sueur
Dyan Cannon ............................ Samile Friesen
Kirk Douglas ........................... Isadore Demsky
(son is Michael Douglas)
Bob Dylan ...............................Robert Zimmerman
Rodney Dangerfield ......................Jacob Cohen
Douglas Fairbanks, Jr. ................. Douglas Ullman
Joel Grey .............................. Joel Katz
(father of Jennifer Grey)
Elliott Gould ...........................Elliott Goldstein
Zsa Zsa Gabor ...........................Sara Gabor
John Garfield .......................... Jules Garfinkle
Judy Garland ........................... Frances Gumm
Paulette Goddard ....................... Paulette Levy
Eydie Gorme............................. Edith Gormezano
Cary Grant ............................. Larry Leach
Lorne Green .............................Chaim Leibowiz
Judy Holliday .......................... Judith Tuvin
Leslie Howard .......................... Leslie Stainer
Buddy Hackett .......................... Leonard Hacker
Jill St. John .......................... Jill Oppenheim
Danny Kaye.............................. David Kominsky
Alan King .............................. Irwin Kniberg
Larry King...............................Larry Zeiger
Tina Louise............................. Tina Blacker
Ann Landers..............................Esther Friedman
(Abigail Van Buren is her sister.)
Dorothy Lamour ......................... Dorothy Kaumeyer
Miehael Landon ......................... Mike Orowitz
Steve Lawrence ......................... Sidney Leibowitz
Hal Linden.............................. Hal Lip****z
Jerry Lewis ............................ Joseph Levitch
Karl Maiden .............................Maiden Sekulovitch
Ethel Merman ........................... Ethel Zimmerman
Jan Murray ............................. Murray Janofsky
Walter Matthau ......................... Walter Matasschanskayasky
Lilly Palmer ........................... Maria Peiser
Jan Pierce.............................. Pincus Perelmuth
Roberta Peters...........................Roberta Peterman
Eleanor Parker.......................... Ellen Friedlob
Joan Rlvers .............................Joan Molinsky
Tony Randall ........................... Sidney Rosenberg
Edward G. Robinson ..................... Emanuel Goldenberg
Dinah Shore ............................ Fanny Rose
Shelly Winters ......................... Shirley Schrift
Gene Wilder............................. Jerome Silberman

Whitecastle123 tyberious
Nov 3, 2013 - 1:31pm

Hollywood Stars

I always knew they were bunch of damn Germans.

Nov 3, 2013 - 1:59pm


"Ultimately, however, Rickards argues that if his predictions come true (and in his opinion it is only a matter of time), the collapse of the dollar would lead to a reset in the world’s monetary system whereby gold would regain its historic role as the standard unit of value. What happens after the end of fiat money would then depend on how each country is positioned in terms of its gold reserves.

Can the point of no return in the path to the death of money be averted?

“The point of no return may already have passed,” says Rickards, “but the consequences have not yet played out.”

In Rickards’ view, it’s a catch-22 situation from this point forward: “the Fed has painted itself into a corner. If they withdraw policy and reduce asset purchases, the economy will go into a recession with deflationary consequences. If the Fed does not withdraw policy, they will eventually undermine confidence in the dollar. Both outcomes are bad, but there are no good choices. This is the fruit of fifteen years of market manipulation by the Fed beginning with the Russian – LTCM crisis in 1998. The Fed will cause either deflation or inflation, but it cannot produce stable real economic growth.”

Nov 3, 2013 - 2:21pm

O/T, but it made me laugh

Meet the Health Sherpa, the website probably should have been. George Kalogeropoulos, Ning Liang and Michael Wasser saw the troubled launch and decided they could do a better health care enrolment website better than the government and, by golly, they succeeded. The Health Sherpa makes it ridiculously easy for anyone to compare health care plans covered under Obamacare in 34 states. (They left out the 16 states with existing marketplace sites, though it seems support for those states is coming soon.) The result is a simple, beautiful, remarkably responsive website that anyone could use.

Nov 3, 2013 - 2:21pm


Yes there is a madness and many have been guided onto that train, headed for the the gas and the ovens. They did not change their names.

How will the economy survive the coming tribulation? There are many old books, written by the seers of times and seasons, however the train just keeps on rolling. It is really all about being "sheltered" in the day of trouble. What can an individual really do to get off the train?

We have traveled down a road of non-recovery. For many of us who are over 65, have seen the changes that are a heartache. We can look at the political system, banking, Wall Street, and everything else on the tube every day. I like to just look at the home life and the schools.

Our kids and grandkids have been home schooled through the eight grades. Yes they missed the mess that the teachers have to deal with in almost every class. This year, two of the granddaughters started classes in public schools. One a freshman in H.S. and the other in college. Both have related the horrible situations within the schools. The 14 year old told me just last night that the school in infested with drugs. She was at a football game and students are trying to sell drugs. She told me the filthy language among the students, especially the girls, is just unbelievable. She said that most of these kids will never graduate from h.s. and their brains are being fried daily. HOW WILL THIS BE RECOVERED?

When I first started grade school in the early '50's, dad knew I was a tough problem. He did not put me on Ritalin, and there was not any A.D.D. but he knew how to fix me up. He put me in a Catholic grade school at six years old. Those old nuns just would take us out of class, across the hall, and fix our problems. Then when I got home, mom had a repeater slapping hand. I was the youngest of seven, mom was the smallest of the family. She would just grab you by the neck, and slap you around the house until you understood that what you had done was not to be repeated. IT WORKED FOR ME. Try any of that today, mom and the nuns would be in prison.

How will the "madness of the crowds" be healed today?

Nov 3, 2013 - 2:26pm
Nov 3, 2013 - 2:38pm


You state:

"I always knew they were bunch of damn Germans."

I suppose you meant that as a joke, however we have many very nice and educated Germans as Turdites.

Although Canadian, I have a Dutch background, so not German as such, however not far off.

If your reference refers to Germans as in WWII people, look at history and see where the US stands today.

Is that why Americans as they are called (incorrectly as it is a continent) are known as damn Americans across the globe.

I say it is time to change this and refer to people and individuals for the character they have and do not affiliate a people with the corrupt immoral governments that have manipulated them for centuries.

As for this Orange Turdite, I welcome people of all cultures, nationalities and beliefs so long as one is respectful to others. Through our actions on the internet we can change the world governed by an elite to one governed by common sense.

Nov 3, 2013 - 2:41pm


I live in Seattle and have been monitoring this very closely!

Me and my wife are ready to bug out!!

Nov 3, 2013 - 2:51pm


With a 95% probability, I would not wait, sell your property while you can, otherwise it's worthless.

At least mortgage it to the hilt with your favorite Bankster and buy a property for cash.

Nov 3, 2013 - 2:55pm

Silver always will be the Elite's vulnerable spot

The TBTF banks are dragons. They are literally devouring the world. From pensions, to 401k's, to bank accounts, to mortgages, to sweetheart tax deals(like in Ireland)....they are a blight on humanity, literally eradicating freedom and wealth.

But, there is hope!

Any fans of Neil Gaiman here? Here's a quote from his great children's story, "Instructions":

“Remember: that giants sleep too soundly; that witches are often betrayed by their appetites; dragons have one soft spot, somewhere, always; hearts can be well-hidden, and you can betray them with your tongue."

These Smaugs of finance and politics have a soft-underbelly. That soft-spot is silver. Always has and always will be. Hot on the heels of Chris Duane's great vid exposing the cowardice/ignorance of Jim Seligman(Sinclair), here's another great reminder of that fact from BrotherjohnF about what the elite truly fear.

This is the reason the GLD is being drained, and the Comex, and the LBMA(while not touching silver stockpiles in those outlets), while nothing is being touched in silver on those outlets. There is a plan for a new faux gold standard, and that plan can only be executed if silver is contained long enough to implement it. There is simply not enough silver for the rich to buy it(even if they wanted to), BroJohnF has shown this. There won't be enough silver in the world for large pension funds and huge hedge funds to buy it, until it's at least $500 an ounce. Sprott and Salinas price are the only wealthy who are publicly buying in size(and they're accumulating it straight from mines and refiners, not from bullion exchanges, because there's not enough).

Member Update 11/1/13 Silver Cowards

He even highlights a passage from FOFOA in their forums, which I agree, succinctly summarizes why the super wealthy aren't jumping into the biggest no-brainer investment of a lifetime:silver. This man lets some rather huge cats out of the bag with the language he uses:

"If the SLA gets carried away with delusions of grandeur, and the silver advocates start to achieve their aims, then the governments and Giants who hold this gold will respond. You can understand that, can't you? The moment that silver presents a 'clear and present danger' to their interests, they will understand this threat. The threat that their gold is soon to become worthless. They will squash the silver-bugs like a bug. Silver would then be a losing bet for political reasons. If the SLA is clearly going to fail, then the silver-holders will be perfectly safe. The gold holders will simply ignore them. Silver will be a safe losing bet until game theory kicks in."

Ok, SLA? You got that? The message is: "You worthless eaters stay the f*** away from silver! The Giants have big plans for you!" These are the people that Sinclair knows exist, and either doesn't have the balls to defy for truth's sake, or is complicit in helping them in their goals.

Whitecastle123 Orange
Nov 3, 2013 - 3:00pm


It was a joke, hope it didn't offend anyone. I am extremely German on both sides of our family or I wouldn't have made the crack in the first place.

transplanted baby TF
Nov 3, 2013 - 3:01pm

It's demolition, man.

Turd, thanks for the post. I have already mentioned this. AND this operation is scheduled to be carried out at the beginning of THIS month! Maybe we don't have to wait for Jim Willie's predictions (which I am listening to in the background RIGHT NOW) we will be milk toast or fried toast before Xmas. Hey, Mr. Fix, if this thing goes south you will only have missed the END OF THE WORLD by about two weeks.

Or maybe everything will come off without a hitch.

Nov 3, 2013 - 3:03pm


We rent! The market here is way to frothy and overvalued. Though we have been thinking of buying a small farm.

Maybe we can grow radiated GMOs! sarc

Nov 3, 2013 - 3:11pm

Putin meets top Chinese

Putin meets top Chinese military official

from The BRICS Post:

Russian President Vladimir Putin on Thursday discussed military technology cooperation with a visiting Chinese military official in Moscow.

The Russian leader and Vice Chairman of the Central Military Commission of the Communist Party of China Xu Qiliang vowed to promote bilateral ties at a time when economic ties have seen a resurgence with a series of billion dollar energy deals signed in recent months.

President Putin said he and Chinese President Xi Jinping have good “working and personal relationships”, and that political trust between the two countries has reached a historic high.

Read More @

Nov 3, 2013 - 3:12pm

More Deception About the

More Deception About the COMEX

[Ed. Note: We love TF Metals Report & always appreciate Turd's analysis of the latest criminal banking cartel activities, with that said, here's an opposing view from Gold Chat's Bron Suchecki.]

by Bron Suchecki, Gold Chat via 24hgold:

The title of this post is a play on this TF Metals Report post. In it TF claims that deposits into JPM’s stocks as shown on recent CME Gold Stocks report “are bullshit. Either completely fabricated and falsified OR simple paper claims. It’s one or the other due to the simple statistical improbability of three consecutive round numbers totaling exactly 10 metric tonnes.”

He then concludes that “this eligible gold deception currently being employed by The Comex is just another indicator” of “the end of the fractional reserve bullion banking system is rapidly approaching. Keep stacking and prepare accordingly.”

I find it interesting that even though TF thinks that “this latest move is so brazen in its audacity” and says that “since no one else is talking about it, maybe I’m just crazy”, he doesn’t think to qualify his analysis. No TF, you are not crazy, you just didn’t bother to do any research before jumping to a conclusion.

Read More @

Nov 3, 2013 - 3:13pm

Asst. Secretary of Treasury:

Asst. Secretary of Treasury: ‘Ignored reality wiping out human race’

by Carl Herman, Washington’s Blog:

“The Federal Reserve could not care less about the US population. The Fed was established for the purpose of protecting and aiding banks. Currently, the Fed, as if America were a Banana Republic which America appears to be becoming, is printing one thousand billion dollars per year in order to support the banks and to finance the federal deficit.”

In an article honestly titled, Ignored reality is going to wipe out the human race, former Assistant Secretary of the Treasury Paul Craig Roberts states that the 99% will take one of two paths:

  1. Ignore reality, and be weakened or killed by 1%-created “projects.”
  2. Embrace reality, and enact solutions.

Dr. Roberts explains and provides links to three 1%-created “projects” (search here, here for additional documentation):

Read More @

Mr. Fix
Nov 3, 2013 - 3:14pm

The 10 Commandments of Government:

Via Doug Ross' Director Blue blog,

I Generally speaking, government always grows -- it never shrinks -- whether times are good or bad.

II In each area it purports to "assist", government attempts to replace individual decision-making with central planning.

III In order to implement its grand central plans and solidify its power, government must take from one citizen to give to another; this is, in effect, lawful theft.

IV No matter how many times central planning fails, the self-appointed masterminds in government assert that "this time is different" and that with only a few tweaks and more money, their delusional plans will succeed.

V Because it uses funds confiscated from taxpayers, self-restraint is no obstacle to government's ambitions.

VI Its fundamental misunderstanding of human nature notwithstanding, government must claim to grant "rights", which require it steal the labors of one citizen to give to another (such as food, shelter, employment, and health care).

VII No matter how widespread the harm it causes, government will never provide an honest and historical accounting -- a report card -- of its failures.

VIII As more individuals and families are harmed by the failures of central planning, government must find suitable scapegoats, must lie to do so, and therefore must also repress dissent.

IX In order to build its network of redistribution and grow a culture of dependency on its services, government must inevitably undermine the family unit, religion, and the notion of God-given rights in order to cow, bribe, or intimidate its citizens.

X As government grows ever more powerful, it must also become increasingly oppressive through compulsion and force. To do otherwise would mean government must shrink, and this it cannot do.

Any of these characteristics recognizable?

Nov 3, 2013 - 3:14pm



from KingWorldNews:

This is the last vestiges of the tail wagging the dog, though, as each time they do this physical buyers take the spot price. They (then) step up into the (London) fix demanding to convert these paper purchases into real bullion. Speaking of London, Eric, the physical market is where the rubber actually meets the road.

Converting so much paper gold into bullion is stressing out (the existing) between 90 – 1 and 100 – 1 leverage of available supplies. This was never, ever anticipated to happen (by the bullion banks or the Fed). The bulk of all LBMA bank accounts are held in unallocated form. It’s amazing how few institutions even realize this.

Andrew Maguire Audio Interview @

Nov 3, 2013 - 3:15pm

PETER SCHIFF: Sound Money &

PETER SCHIFF: Sound Money & Limited Government = MAX PROSPERITY

Peter Schiff, author, host of the Peter Schiff Show and CEO of Euro Pacific Capital joins me to discuss the Federal Reserve, the impending collapse of the United States, and all things Obamacare.

As for the Fed’s recent announcement that QE will continue unabated Peter says, “The Fed will keep blowing air into the bubble until it bursts and the only thing that will stop them is a currency crisis… The Fed has to maintain the illusion and the only way to do that is with the drug of QE.”

On Obamacare and government entitlements Peter says, “We once had a great free market economy that was the envy of the world. People were coming here from all over the world to participate in FREEDOM. We had limited government and maximum prosperity. Even though we had no government benefits at all, the poor people from all over the world wanted to come here. Why did so many poor people want to come to a country with no welfare benefits, no medicare and no food stamps? Because they knew that the best way to get out of poverty was the OPPORTUNITY to work in a FREE MARKET… We had a great country and we screwed it up.

gold slut
Nov 3, 2013 - 3:16pm

Great thread

Great thread AM, you have just filled my Christmas prezzie list for the next few years.

Just a little office story which I thought to share...

Last week a couple of the surveyors I work with were talking about which kind of investments were the best bet. Now you must understand, when ever I hear this kind of conversation, I make a point of keeping my mouth firmly shut, unless my opinion is asked for, which, thank goodness, so far it never has.

However, one of my colleagues mentioned that as a young man, he had been well paid for a particular project he had worked on, and after looking at buying a new car with the money, he had finally decided to get some Krugerrands (I don't know how many).

He went on to say that after tucking them away for quite a few years he had recently sold them and was really pleased that he got back so much more money (fiat) than he had needed to get them. I said all the usual things ('well, you really made a good investment there', etc, etc) and asked what he used the money for. He got a new car.

At this point, I couldn't help myself (I know, I know), and had to point out that at the time of the Krugerrand purchase he had the choice between a new car or bullion. He chose bullion.

Years pass, and he sells the bullion and gets back much more fiat than he originally spent, which is (still) only enough to get a new car, which was the alternative to his original bullion purchase. When I pointed out that he had invested the cost of a new car (or the bullion) and all these years later that value is still, new car or bullion, little has changed or increased, but the amount of fiat needed now to purchase either has increased a lot, showing how much less fiat is worth now to then.

The conversation stopped. You could feel the cogs whizzing around in their heads. I felt a little bad at deflating what he thought was a master-stroke investment, so asked what he would now own of that original sum of money if he had put it in a bank. Later that day he came and told me that it would (even being as generous as possible with rates etc) NOT be enough to get a new car.

I tried to make him feel a little better by saying that his wise choice of bullion had put his money in an inflation-proof bubble, and that he had stored the cost of a new car and was able to get back the cost of a new car, which he seemed happier with and that just putting the money in a bank and letting inflation eat it was not a wise choice.

The way that they were so quiet (and thoughtful) made me feel that maybe, just maybe, another couple of bright minds have had the seeds of reason planted, but I have to say, that they have not spoken with me again since, and I think I may have been put on the 'correct but (normalcy bias upsetting) scary fruitcake' list. Oh well...

Nov 3, 2013 - 3:31pm


10 Corporations Control Nearly Everything You Buy, 6 Media Corporations Control Nearly Everything You / By Mike “Mish” Shedlock / November 02, 2013 12:34 PM

PolicyMic has a very interesting chart that shows how 10 Corporations Control Almost Everything You Buy.

The chart was posted on Reddit as illusion of choice. I could not locate the original source.

PolicyMic explains …

Ten mega corporations control the output of almost everything you buy; from household products to batteries.

These corporations create the chain of supplies that flow from one another. Each chain begins at one of the 10 super companies.

Here’s just one example: Yum Brands owns KFC and Taco Bell. The company was a spin-off of Pepsi. All Yum Brands restaurants sell only Pepsi products because of a lifetime deal with the soda-maker.


Spartacus Rex
Nov 3, 2013 - 3:45pm

Right On. POWER 2 The ORANGES!

We're Fed Up with being compared with (rotten) Apples!

Nolite te Bastardes Carborundorum


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