Unemployment, Education and the Cultivated Victim Mindset

Thu, Jan 23, 2014 - 1:22pm

One Wall Street adviser recently stated that actual unemployment is at 37.2%. I don't doubt this. Certainly, a lot of blame is warranted towards the top, but am I the only one who is thinking that America is just giving up on herself? Where is the spirit of entrepreneurship? Where is the can-do attitude?

It's dead in the water. People would be rather just take whatever money they can from the government than try to fix their lives or their communities.

I have noticed more and more that Americans are living in learned helplessness. They can't seem to pull themselves up by their bootstraps, and many don't want to. It's not just the younger generation - I know people from my generation (X) whose main goal in life seems to be just to throw their hands up and quit trying.

Now pardon me if I delve for a moment into politics, but an unrepentant gold digger is running for governor in my state, Texas, and she's illustrative of some huge perception problems we must overcome if America is going to return to any sort of sanity.


Wendy Davis built up her pro-choice credentials with a sob story about how she struggled as a single mother. Only, it turns out that she wasn't actually single for that long, and she had a wealthy older man pay for her college tuition, including her Harvard Law School payments. She dumped him the day after he made the last loan payment, and then saddled her kids with him (he got full custody) while she went off to pursue her political dreams.

I am a woman, and women like this make me furious! I know I am not the only woman who feels this way. Women such as myself, who did not prostitute ourselves to sugar daddies or sacrifice our children for our careers, have little love or sympathy for a sociopathic social climber like Wendy Davis.

But Wendy Davis will still get a lot of support, and part of it will come from people blinded by the abortion issue, and part of it will be from people who make a false assumption that a Harvard degree actually makes you smart and insightful.

I've read various comments on Wendy Davis stories in the past few days, and in a few of them, Sarah Palin has been called by Davis supporters a "moron" who needed to go to a variety of colleges prior to graduating. And yet, what bright ideas has Wendy Davis put forward, other than she believes in late-term abortions? Where are her brilliant solutions to our problems? I don't see any.

Yet, she went to Haaaahvard, so she's "qualified" to rule the rest of us. According to some.

Sarah Palin, on the other hand, is considered to be worst kind of "white trash" - in part because she isn't trying to become an elite. Sure, Wendy Davis used her husband's 401K money to pursue her Harvard ambitions, but, well, that's OK, because it's Harvard, you see, and don't women need a hand up to go there? Rationalize much?

Palin, however, did not work her way up on Todd Palin's money. When she was younger, she fished alongside him on salmon fishing boats in the cold, dangerous waters off of Alaska.

Whether or not you like the political viewpoints of a Davis or a Palin, it's clear that Davis will automatically get more "cred" because of her Harvard degree. She will also get more forgiveness for her blatant gold digging because of it. I don't think these biases are good for the future of America.

I see a scary trend towards denigrating blue collar work, ironically from people who claim to be pro-poor. These days, someone who comes from an actual blue collar background would not be considered good presidential material, because they aren't seen as "smart" enough. Yet, someone with an Ivy League degree and no real-world experience would be just fine. If you run a construction company, you would be passed over by someone who didn't actually run a business, but went to Harvard and stayed there to teach for a little while before running for office.

Now, let's say the Zombie Apocalypse actually occurs. You have a choice of joining two bands of survivors. One team is led Wendy Davis, and the other by Sarah Palin.

Which team would you choose?

 Now, some of you may respond "neither!" - but for the sake of this exercise, if you had to choose, and you had a half a brain with your head, you'd choose the woman who knows how to shoot a bear and isn't worried about mussing up her fake blonde hairdo.

If you haven't seen it, you must see the episode of Sarah Palin's Alaska where Kate Gosselin goes camping with Palin and her family. Miserable Kate has a hissy fit and selfishly drags her kids away when clearly they were enjoying themselves. Kate Gosselin on camping: "Why would you pretend to be homeless? I don't get it, I just don't get the concept."

Kate Gosselin freaks out in "Sarah Palin's Alaska" - episode 5

Kate Gosselin is a product of learned entitlement and victimization. She's utterly helpless and frozen without modern conveniences to protect her from the elements. 

We need more determination, and less victimization. We need more can-do instead of cannot. We need to make a shift away from "education" just for the sake of education to teaching real-world, applicable skills. 

Even here in Texas, things are bad. Here in Austin, certain sections of the city are coveted by parents who want to make sure their children are raised in the "good schools." They aren't there to learn farming or animal husbandry, but to be prepped in a very competitive environment for Ivy League universities. All the children get iPads. They start taking SAT prep classes before they even get into high school.

These kids are dumped into as many extra-curricular activities as possible so they have that something "extra" to put on their "resume" for the competitive college market. And while I certainly feel there's value in after school sports and music programs, none of these kids are learning to do anything hands-on. Wood shop? Metal shop? Forget it. That's not only not going to get you into a good college, it might be a strike against you. Those tracks are for the "dumb" kids going to vocational schools someday.

You may have heard of Common Core. I will state plainly: Common Core is evil. This is the insidious new standard being pushed from the top. It's caused a lot of outrage, in no small part due to lessons such as this one, where small children are taught to be activists and use "emotional" words to pressure their parents to get a new park:


 One of the main problems with this type of indoctrination is that it subtly teaches kids to be subservient victims of an elite class that must be petitioned in order to get what they want. And this is how the elite want it. They want you to believe that you can't do it yourself, that you must ask them for favors.

An empowered, entrepreneurial spin would teach the children not how to use propaganda techniques to try to get what they want, but how to set up a lemonade stand to raise money themselves for a new park.

But oops! Can't have a lemonade stand without a license these days!

This is one of the reasons why education just for the sake of education is problematic. Kids who don't learn how to do stuff learn the useless skill of over-analyzing the injustices of "the system" - and this impotent outrage is then utilized by organizations with agendas to shift public policy. Instead of creating a generation of can-do entrepreneurs and self-sufficient citizens, victims are made.

This victim-type thinking is so prevalent today that most young activists don't even realize they've fallen for it. To whit, the recent petitions by the Black Student Union at my alma mater, the University of Michigan. They all scream "we have no power and we must petition the elite to give some to us!" Let's go through a few of these victimized statements:

 Victim Statement #1:

  • We demand that the university give us an equal opportunity to implement change, the change that complete restoration of the BSU purchasing power through an increased budget would obtain.

Empowered Rewrite:

  • We recognize our inherent power as human beings and we don't need you to do anything for us because we can do it ourselves. If we want more money to spend, we will raise it ourselves.

Victim Statement #2:

  • We demand available housing on central campus for those of lower socio-economic status at a rate that students can afford, to be a part of university life, and not just on the periphery.

Empowered Rewrite:

  • We intend to help low income students by starting our own low-income housing co-op that will purchase and lease property to students in need.

Victim Statement #3:

  • We demand an opportunity to congregate and share our experiences in a new Trotter [Multicultural Center] located on central campus.

Empowered Rewrite:

  • We will raise funds to create a new multicultural center located on central campus.

And on and on. What utter, naive fools these kids are! Being put into a mindset that you must "demand" things from others puts you in a permanent state of arrested development. It is the mindset of a child. No wonder Wendy Davis is so aggrieved by her critics. She, too, has the entitled mindset of a child. She is a victim of her life, not a creator of it.

Clearly, our education system is one of the main proponents of this victim thinking. It will take a lot to shift from this sort of toxic philosophy to a better one. Here are a few of my suggestions as to what I'd like to see from schools:

1) All children should take classes in business and have hands-on experience starting and running a business in school.

2) More focus and emphasis should be placed on real-world skills for children of all economic groups, skills that can empower people to live independently, including gardening, home repair, sewing, carpentry, auto repair, plumbing, and other useful crafts.

3) Teachers who teach for a living should be supplemented by people in the community offering classes in their areas of expertise. Teachers should also be required to take sabbaticals where they apprentice with local businesses and take on real jobs for a while.

Well, I'm a dreamer, aren't I? Wouldn't it be nice if people complaining about lack of jobs actually started their own business and created something of value instead of helplessly expecting the system to fix their lives for them?

But life is probably going to force a shift back to reality for people very soon - a massive economic collapse is going to make real-world skills much more desirable, and the ability to navigate an iPad much less useful. In the meantime, I believe it is very important to start the conversation and get people thinking differently.

What would you do to fix education?

P.S. Mike Rowe for President!

Stephanie blogs sporadically at a number of websites, including Freeople and Free Thinking Christianity.

About the Author


Havenstein · Jan 23, 2014 - 1:26pm


Thank You Stephanie and everyone that makes this place world class.

ag1969 · Jan 23, 2014 - 1:50pm

"Where is the spirit of entrepreneurship?"

Where is the spirit of entrepreneurship?

In an epic battle, the entrepeneurs were overun by the free shit army, whom they financed!

Maryann · Jan 23, 2014 - 2:12pm

Great post, Stephanie

As a fellow Texan, I think you covered all my current frustrations too! smiley

pickaxe · Jan 23, 2014 - 2:29pm

Big Gov. Breeds Discontent

Great post, echoes what we've all been feeling through this alleged recovery. I'm not convinced that the true unemployment rate is 37%, but I suspect the true underemployment rate (unemployed+part timers+those forced to take menial jobs well below their education, training & experience) is probably higher than one-third of the working age population. This holds true for the entire Western world and calls into question the value delivered by our Gov. supported educational institutions, in my mind.

· Jan 23, 2014 - 3:01pm

Open season on entrepreneurs

With all this cheap money sloshing around the big banks, my wife's business is having a difficult time refinancing some higher interest loans.

I have a friend with a fairly successful real estate business who is being targeted by the EPA over lead paint issues in older homes. The EPA inspectors drive down from Chicago to inspect his renovation projects to be sure he is following the hundreds of rules (which he does) and drive right past other renovation projects by people who are not even certified to do the work. The fined him 30K after finding a few lead paint chips under the porch from an earlier scrape and paint job by a previous owner. He has stopped renovating and has cut back his work force.

Entrepreneurial regulations are simply killing small business.

Thanks Stephanie.

I Run Bartertown · Jan 23, 2014 - 3:28pm

Not "what" but "who"

Land, flags, anthems are nice... but the defining characteristic of any nation is her people.

America 2014 is not America 1964 primarily because the demographics are unrecognizable. Thanks to Ted Kennedy for being the face and front-man liar:

"…our cities will not be flooded with a million immigrants annually. Under the proposed bill, the present level of immigration remains substantially the same … Secondly, the ethnic mix of this country will not be upset … Contrary to the charges in some quarters, S.500 will not inundate America with immigrants from any one country or area, or the most populated and economically deprived nations of Africa and Asia. In the final analysis, the ethnic pattern of immigration under the proposed measure is not expected to change as sharply as the critics seem to think.",

but the treason was authored by Norbert Schlei.

Those bred from 1964 and prior 'founding stock' are not much different than their grandparents. They just represent a much smaller fraction of what they used to in terms of defining a nation.

ancientmoney · Jan 23, 2014 - 3:28pm
abguy4 · Jan 23, 2014 - 4:01pm

Ag - You you want entrepeneurship?? Chk this~!

Nations Largest Cocaine Smuggler Revealed: The DEA

For decades, it has been rumored the United States government was secretly sponsoring the smuggling of cocaine into the country. It's not a rumor anymore. See video above.

And then recall, in the last episode of "Miami Vice", in the fall of 1987, Crockett and Tubbs are accosted and have their lives threatened by the DEA when they corner a large drug king pin. They are told that they are trespassing on DEA 'territory' and it's special retirement cash fund. The writers on that series said from the beginning of the series that they were getting ALL their stories from the local drug 'officials' themselves~!!!!!! Furthermore they said they actually "toned-down" the drug dealing details in the series, upon request of the City of Miami~! The biggest TV series of the '80's actually came out with the revelation that the DEA was the biggest Cocaine dealer in the USofA. And exactly how many sheeple actually picked-up on that????????????

The DEA agents dealing drugs. MY-O-My that must be Heaven on Earth. Who da Hell is gonna arrest ya??................................................. NO ONE!!!!

Hell, the CIA runs the Heroin trade. They sure ain't gonna say shit~!

Like Bob Dylan told us long ago;"To live outside the Law, you must be Honest."

benque · Jan 23, 2014 - 5:03pm

Whats with...

...the shake up of the US nuclear weapons forces announced today. After earlier posts describing "nuke" related theories, I find today's news very disturbing.

Bollocks · Jan 23, 2014 - 5:40pm

EXCELLENT post stephanie!

"One of the main problems with this type of indoctrination is that it subtly teaches kids to be subservient victims of an elite class that must be petitioned in order to get what they want. And this is how the elite want it. They want you to believe that you can't do it yourself, that you must ask them for favors."


"Instead of creating a generation of can-do entrepreneurs and self-sufficient citizens, victims are made."


Absolutely right. And only a massive shock to the whole system is going to change what must be changed.

My mother was a teacher for some 40 years until Alzheimers took her mind away a few years ago. She watched as the those she was teaching became less and less inquisitive - and she always said it was because of small changes being made each year or so to the curriculum.

This dumbing-down has been going on for decades, one step at a time. She noticed it had accelerated substantially in more recent years. One thing she noticed, apart from the dumbing-down changes to the curriculum, was that pass grades for her pupils were going up - yet she knew that pupils would not have got those grades in previous years.

Pupils (in general, not all of course) were feeling that they were 'intelligent' because they had passed their exams - yet what they were 'intelligent' about was being manipulated.

This allows them to be more easily controlled later in life because they have no real mind of their own having been moulded to accept what they've been fed (and continue to be fed) - and just as importantly to feel good about it - because they've been rewarded for it with a certificate.

If you want to control someone manipulate the ego and pat it's back regularly.

"What would you do to fix education?"

Nothing. A natural re-set is coming, it's inevitable. The truth - the intelligence of life itself - cannot forcibly be held in a box for much longer. The natural desire to learn and learn from experience (rather than from emotion - which the manipulators target, to manipulate) will then be restored. But, like many who come here, I think it's going to be a painful transition.

· Jan 23, 2014 - 5:56pm

Good post, central problem

No Child Left Behind = teaching to the lowest level/common denominator + test-taking skills vs. REAL skills & knowledge. Kids are taught to use netbooks but not handwriting/cursive script. 5th graders without command of multiplication table. No real history, geography or natural science curriculum. One of the top 20 school districts in the nation. This is increasingly 'harmonized' with policymakers across the world upon whom the US exerts direct or indirect influence. Idiocracy 2020 - Camacho for NWO Prez! EDIT: @ Bollocks: ditto. My mom trains teachers, and has bemoaned for the last 5-10 years that her students are in many/most cases functional illiterates, without text comprehension or critical thinking skills. The only people applying for teacher training in college are those rejected from more lucrative business/medical/legal programs. And seeing as these folks will be 'edumacating' the next generation, things do look quite hopeless until incentives are fundamentally changed, I.e. System reset.

Bollocks · Jan 23, 2014 - 6:15pm


Check out Mike Ruppert. He revealed that the CIA were were involved in cocaine smuggling many years ago.

"Former narcotics investigator Mike Ruppert, and author of "The Truth and Lies of 911", was forced out of the LAPD in 1977 when he exposed evidence of drug trafficking by the CIA. This is one of his first appearances caught on Video in 1997 at the Granada Forum in Tarzana, CA. Topic is "CIA Drug Running"


Lots of presentations on youtube by him. Well worth checking out.

Sandiaman · Jan 23, 2014 - 6:40pm

Wendy Davis being Swift Boated

Dallas News to the rescue. Being an ex- Texan I can remember when The Dallas Morning News was a Conservative newspaper. The Dems want Texas at any cost.


Mariposa de Oro · Jan 23, 2014 - 7:41pm

road blocks for small business

He Stephanie,

Good article but I disagree with one point. It's not that most people are trained in learned helplessness. I find that our masters/owners, have put so many obstacles in the way, that most intelligent and capable people decide it isn't worth the effort. For me, I would literally be a criminal if I tried to have a small business in either sewing or gardening because of the rules. I live on an overseas Army base. Everything here is government property and there's no escape. The base is an island. No driving off post to do your thing at the end of the day. I could have a brisk little produce business but I'd be using government reclaimed water and running a private business on government leased land. The military post office is for personal mail only. If you get caught using it for a profit, you're in for some serious penalties, including removal from the base and your job. So sewing supplies must be brought in by barge at a ridiculous cost. Oh, and anyone who decides to have a personal business must get permission and agree to all the politically correct BS or you're shut down. Are you a political conservative? Do you prefer not to do business with an unreasonable customer? Better hope you aren't accused of racism, sexism, offensive speech or some such. I could go on but won't unless someone wants to discuss further, but you get the idea. I COULD have a small business inaddition to my regular job but it just isn't worth the bother here because of the government rules.

Marcus · Jan 23, 2014 - 7:44pm


Why does the media cut Wendy Davis slack? Because she's a liberal and the media is predominantly liberal. It's partisan bias, plain and simple (never mind that the real choice is not between left or right, it's between liberty or tyranny).

On having a Harvard degree, big deal. I've met more than my share of people who have a degree and quite a few of them are "educated idiots" as far as I'm concerned, their PhD being an acronym for "piled higher and deeper".

On the victim mentality, a lot of people engage in it as they would a narcotic. It's addictive, gives momentary pleasure and separates the so-called "victim" from reality (John W. Gardner is the source of this insight). Besides that, the victimhood industry is big business. It won't be easy to dismantle.

I Run Bartertown · Jan 23, 2014 - 7:59pm

On the University of Michigan

Great piece, Stephanie!

With regard to the University of Michigan thing, I'd like to point out two points. One, they will NEVER stop demanding :


"After climbing a great hill, [Nelson Mandela] once said, one only finds that there are many more hills to climb. That is the work of developing a diverse inclusive campus. It is ongoing, one victory at a time, with more hills to climb,” Coleman said..."

and, the racial "GibsMeDat" game is all predicated on violence:

“… Without action, alternatively, we will be forced to engage as an entire community in ways to implement the changes we request. We will allow the university seven days to end negotiations and come to conclusions on our seven demands. If negotiations are not complete we will be forced to do more, beginning to increase valiantly our activism for social progress and take physical actions on the University of Michigan’s campus.”

· Jan 23, 2014 - 9:26pm
· Jan 23, 2014 - 9:30pm


Radicalism is nothing new at U of M. I myself got swept up in some of it when I was a young, naive student. One event I got sucked into was a "sit in" protesting the decision of the University to let security guards have guns on campus. I didn't plan on attending, like most of my "radicalism" at college it was more of a happened-to-be-walking-by-with-friends "Oh hey look a protest, let's join in!" sort of thing. 

After the sit in, I went to the meeting of the group that organized it. Had no clue it was a total communist group until I got there. Should have known with a name like "Revolutionary Worker's League." The guy who spoke was such an insane, hateful nutjob I left and never came back. That still didn't cure me of my young idealism...it took many years of dipping my toe in and experiencing the "crazy" before I woke up to the fact that most of these extreme activists are seriously screwed up people. :-P

abguy4 · Jan 23, 2014 - 9:49pm


You mean to tell me that the poor DEA has to compete with the CIA for a piece of the Cocaine business? Is there no peace anywheres in this world? Geessus~! The CIA has all the Heroin trade out of SE Asia and Afghanistan. But NO, those greedy mobsters, they aren't happy with that? That's not enough for them. They gotta squeeze the poor DEA rat bastards on the Cocaine business too? The damn CIA is starting to look like the Goldman Sachs of the drug business. I wonder how they decided to portion-out the action. I'm thinking of a scene in the "Godfather" where they slice-up the drug market....

Video unavailable
Patriot Family · Jan 23, 2014 - 10:39pm

Sourcing Loans Has Been Difficult

Gotta agree with some of the comments here about the difficulty of doing business when you can't get the financing. We started a family business last year. I went after a small loan to boost my inventory. I can turn my inventory over 4 times a year with an average 28% margin. I was willing to back the loan with assets including PMs, plus I had skin in the game backed with a substantial salary from my full time job working for the largest Internet seller globally (so I KNOW this business space well). Solid credit rating. Couldn't even get loan officers to talk to me. I was offered credit cards at a decent interest rate but what I really needed was a line of credit or lump sum cash loan. Unfortunately no matter what I did we could NOT get even $10k. My efforts to explain that the loan would be triple backed by inventory, personal assets and a fallback on my salary to guarantee payments fell on deaf or plain ignorant ears. However some yahoo with a criminal record and no assets to back him gets a "community loan" to go forth and fail. So until the banks begin lending to entrepreneurs with small scale businesses all you have is stagnant established businesses and they aren't expanding all that much in most areas. And the SBA resources locally were essentially useless.

I'm now looking at crowd sourcing and also private hard money lenders and that looks promising and the money available is what we originally wanted. One way or the other we'll make this work. I'll have enough to self fund this endeavor by December anyway. Just would have liked to have gone in much bigger since our model seemed to be successful.

There are plenty of people out there like me.

Fred Hayek · Jan 23, 2014 - 10:44pm

Stephanie, here's what I would do

I would take a page out of the book of the town of Holliston, Massachusetts.

What's so special about the school system in the Town of Holliston, Mass.?

Holliston (not where I live or grew up, by the way) gives parents a choice of what kind of curriculum their grade school child will have. They have a traditional style curriculum or a french immersion program or . . . . . . . Montessori. Yes, parents in that town have the option of sending their kids to a Montessori style school without having to spend the many thousands of dollars extra each year that it normally costs parents who want a Montessori education for their kids and have to send them to a private school for it. 

I'm a big proponent of Montessori schooling because the basic principle of it is that children want to learn and that their curiosity and desire to learn should be the ally of a school that also wants them to learn and not a teacher's enemy as in a school that has arbitrarily decided that on Thursday January 23, 2014, fourth graders MUST know the gross domestic product of Canada. They MUST. And seeing as no kids in the typical class will likely give a shit about the gross domestic product of Canada on this precise date, we will force them to learn it against their will. Because forcing people to learn things against their will has such a great track record. 

The Montessori school respects each kid and mostly lets him or her choose what he or she will be spending his or her time on that particular day. If the kid couldn't give a shit less about the gross domestic product of Canada on Thursday January 23, 2014 but is very interested in snakes, the Montessori school will let him read about snakes with the understanding that he'll retain much more when he's actually interested in a subject and that his curiosity will inevitably help him branch off into greater understanding of multiple concepts in biology and zoology. 

I think the Montessori school style of education is much more fitting for creating happy, productive free adults. For one, like the real world, kids of all ages mix in the classroom. For another, accustoming kids to be somewhat self starters is much wiser than the stupid ass "create a good mill worker" system we mostly use now.

And I like very much the idea that the system used in the Town of Holliston lets parents choose. Maybe parents know something about their kids. They might even know things that the -gasp- educators don't. At the very least, having them make the choice of curriculum gets them a bit more involved.

P.S.--Any school system could present the same option to parents. The Holliston school system spends the same per pupil as the towns surrounding it which don't give parents that same choice.

cliff 567 · Jan 23, 2014 - 11:12pm

thanks Stephnie And sorry for apropo post

Burt Reynolds / SRS

Submitted by cliff 567 on January 22, 2014 - 8:52pm. Hat Tip! 5

What A pleasure to read. Both of you.

I recommend this conversation to be elavtaed to the top row.

And Burt, do you really believe this thread is dead Now? Good luck with that.


SRS - You Need to Check Facts



Please continue my education brothers.


DayStar · Jan 23, 2014 - 11:20pm

Harvey's Up! (TFMR)

  • Mark O'Byrne: The People’s Bank of China website reports China’s gold reserves at the end of December 2013 were 33.89 million fine troy ounces, the same amount when they last reported gold reserves in April 2009. China is probably the world's third largest holder of gold after the U.S. and Germany.
  • GoldCore: The U.S. Mint has sold 3,969,000 ounces of silver coins so far in January. At that pace, total sales for the month would be 5,705,438 ounces, down 23.9% from a year earlier. Data on Thursday showed activity in China's factory sector contracted in January for the first time in six months as new orders declined, confirming that a mild slowdown at the end of 2013 has continued into this year.
  • Harvey: The bankers were set to whack gold/silver last night trying to our two precious metals huge demand of late. However news from China that they are contracting in their economy plus news of a possible default in one of their trust funds plus news of a bank run on some of its Co-ops banks (Farmer's Co Op) sent gold propelling northbound and it never looked back. A breakout over $1270 /oz will be a huge catalyst. The gold/silver equity shares rocketed higher as well today.
  • Reuters: Gold's decline comes despite weakness in equities as some traders were worried that demand in China - the world's biggest buyer of bullion - would be hurt by a slowing economy. Gold normally moves in the opposite direction from equity markets. [B]DS:[/B] Where did the idea that Chinese demand is waning? We have just seen record demand from China, and last night Koos Jansen revealed a hitherto unknown major internal gold trade in China that is filling the interest gap left by the flagging banking system. There is a much larger internal "scrap" trade than was even known, and that is fueling even more internal demand in China as their banking system weakens. 
  • Jae Hur and Ichiro Suzuki: Gold sales by Japan’s biggest bullion retailer surged 63 percent to a five-year high as prices slumped and investors sought refuge from Prime Minister ShinzoAbe’s campaign to stoke inflation and weaken the yen. Sales of bars to local investors by Tanaka Kikinzoku Kogyo K.K. soared to 37.3 metric tons in 2013, from 22.9 tons a year earlier, the Tokyo-based company said in a statement today. Sales exceeded purchases for the first time since 2004. “Gold has been very attractive to individual investors as a hedge against inflation,” said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co. in Tokyo. “Investors became concerned as Abenomics weakened the yen.”
  • Lee Boyce on capital controls: A strange thing has happened in the last few days. I went to withdraw £10,000 cash from my HSBC account in Swindon which is in credit by about £50,000. However, HSBC will not let me take out anything over £1,000 cash over the counter. I gave them warning, but they say they must know what I will use it for - they want to see evidence of hotel bookings etc. In short, they refuse to give me my cash. HSBC say it is new internal rules to help prevent money laundering. But for example, what if I want to buy a £5,000 car? It said I’d have to put down a deposit and show them the receipt first.
  • Tyler Durden: Sonia Gandhi - widow to Rajiv - appealed to the government asking for a cut in the record import duty on gold and for other restrictions to be eased. Judging by the spike in gold on the news, two things are apparent: Gandhi may just get her wish granted, as nobody buys the official story scapegoating gold as the reason for the relentless Indian trade deficit. Second, India may soon regain its role as dominant buyers of gold, after massive pent up demand by Indian retail buyers is unleashed on the world, sending the price of gold soaring.
  • Reuters: India is not planning any changes to its record import duty on gold and other restrictions on imports until the current account deficit is firmly under control, Finance Minister P. Chidambaram told CNBC TV18 in Davos. "Until we have a firm grip on the current account deficit I do not contemplate any roll back in any measure. We will have a full idea of the current account deficit only when the budget is presented and when the year comes to an end," Chidambaram said.
  • Harvey: Russia adds a monstrous 700,000 oz to its official reserves (21.77 tonnes). It now stands at 33.3 million oz or 1036 tonnes of gold. [B]DS:[/B] Russia is almost even with what China officially claims to hold. 
  • James Turk: This is the breakout we talked about when we spoke on Monday. We are breaking above $1,250 on gold, and that’s been the key resistance now for several weeks. We should see more follow-through tomorrow, before the weekend, and we should be off to the races. As I described on Monday, gold is like a rocket getting ready to go to escape velocity. Once gold shows it is going to stay above $1,250 for two consecutive trading days, with a little bit more upside momentum, that’s going to be the signal to the major entities in gold that the downtrend which has been in place for the past two years is over -- the mid-cycle correction is over. This means the traders will have to start playing gold again from the long side. 
  • Tom Fitzpatrick: Gold is beginning to look quite good technically. We’ve had the double-bottom around $1,182. Coming out of those lows gold posted a bullish weekly reversal which seems to have set the base, at least for the moment. After coming off of those lows, today gold is having a solid bullish ‘outside day.’ We are coming into some resistance in the area at current levels between $1,262 and $1,268. This was the level that was the high in December of last year. So gold is attacking that level right now.But if gold can clear this $1,270 range, that should create a quick $100 surge in gold. The big level we remain focused on is the August high at $1,434. If gold closes above that key $1,434 area, we would have a very strong completion of a double-bottom target -- somewhere in the range of about $1,675 to $1,700.
  • Andrew Hoffman: Elke Koenig, the President of BaFin, Germany's top securities regulator said last week, the manipulation of precious metals "is worse than the Libor-rigging scandal." Let's explore just how much "worse than LIBOR rigging" Precious Metals manipulation actually is. Everyone has been negatively affected by the past decade-plus of gold and silver suppression; or, more accurately, four-plus decades of substituting them with fiat currency, purporting the former to be "barbarous relics" and the latter money. By covertly suppressing gold and silver prices down TPTB sentenced all but "the 0.1%" to generations of inflation, economic stagnation and financial serfdom.
  • Bill Holter: Here is my point, if central banks (namely the NY FED) have sold major portions of their physical hoards (and that of other nations that they were entrusted with the safekeeping of), did that temporarily add to the "supply?" For every buyer there is a seller, but the natural question would be "seller and buyer of what?" Really, what are they trading? And if it is not "really" gold then why should it have any effect on the price of gold? Wouldn't this divert much of the demand (that thought it was "real demand") towards something that in reality has nothing at all to do with the "real supply" of gold? 
  • Bill Holter: We are a week away from having a fairly good idea about how much will stand for delivery. Last year if you recall, 40 tons or nearly 1.3 million ounces stood for delivery. Could this year be a repeat? The open interest with a week to go is still nearly 14 million ounces...yet the registered category has (net after a completed Dec. delivery) less than 200,000 ounces. "Not to worry" we are told because the "eligible" category has over 7 million ounces and with the "flip of a switch" (or twist of an arm?) much of this gold can be changed to eligible and then delivered. "They" had better hope so because very little "new gold" entered the "registered" vaults for ALL of last year.
  • Bill Holter on what matters: The lack of "shock" is a worldwide phenomenon. Why aren't German citizens going crazy regarding their gold? Because no one cares anymore. Our lives have become so rigid and regimented that as long as a paycheck (private, public, retirement or entitlement) comes in the mail ...cashes ...and spends, no one gives a rat's about anything. I think that what will end up being "the shock" is when "control" is lost. People today say to any negative scenario "the government will never let that happen", can you imagine the shock when it turns out that there are no more easy solutions and no, governments did let it happen because they couldn't stop it? Markets have ALWAYS been bigger than governments. 

All this and more on...

The Harvey Report! angry



Urban Roman · Jan 24, 2014 - 12:28am

Hey Stephanie, maybe the

Hey Stephanie, maybe the reanimated zombie Reagan corpse will come and help you out with that apocalypse thingie.

Did I ever tell you what a douchenozzle he was?

Anyhow, it's a good thing you like 'Reagonomics', because you are soaking in it.

Urban out

AlienEyes · Jan 24, 2014 - 12:48am

@ Stephnie

Another great post ! yes


As for Wendy Davis, I'd hit it....but I wouldn't vote for it.

· Jan 24, 2014 - 1:46am

@Urban Roman - what on earth are you talking about?

You wrote: Anyhow, it's a good thing you like 'Reagonomics', because you are soaking in it.

HUH?!! Did you even read the entire article? Or did you get stuck somewhere in the comparison of Wendy Davis to Sarah Palin? 

Nowhere in this article I did mention Reaganomics or any sort of "trickle down" from an elite to the masses. (Not that this is an accurate description but what I think you mean by Reaganomics.)

The call to end victimization is actually quite the opposite: it's about BOTTOM UP, not top down. It's about people doing for themselves, not expecting the elites or "trickle down government" to save them. 

Maybe try reading to the bottom of the article next time. :-)

AlienEyes Stephanie C · Jan 24, 2014 - 2:05am


I think it's about time to put down the bong and have a nice lie-down.

Anonymous · Jan 24, 2014 - 2:32am

Removed comment

Removed comment.

turnoffthewater abguy4 · Jan 24, 2014 - 3:01am

Re:Ag - You you want entrepeneurship?? Chk this~!


Can't remember where I found this vid but I believe the US drug trade started a looongtime ago. It is rather long but was very eye opening for me. https://www.youtube.com/watch?v=KxmK3-r54yQ


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