Dumping the Banksters

Tue, Aug 12, 2014 - 9:43am

I have a close friend since 1977, rooming with him before married life and keeping in touch over the years as our careers have moved us all over the nation. He was attempting to purchase an older home in Ohio using a realtor and a bank, like we are all supposed to do. But things got screwy. After verbally accepting his offer of 52K for a foreclosed home, the seller (a bank) demanded that he use a particular mortgage broker instead of the bank that had pre-approved him (I smell a kickback). After some discussion, my wife and I offered to help him with our real estate business. We cut out one realtor and limited the power of the bank. He got the home for 20% below an already low asking price, has lowered his housing costs by 35%, and paid for the renovation of the house by just cutting the bank out of 50% of this deal.

But perhaps the more significant thing that happened was that we just had a taste of how good life can be without banks. Damn, they run up the costs! Then they front load the credit contract so that the majority of interest is paid up front over the term. If you buy & sell every 3-5 years, you hardly pay down the principal and build equity. But all-y’all know this, so I’ll end the mini-rant. My problem is that I have contractually obligated myself to them by purchasing real estate with their fiat. And the system has not collapsed as I was expecting it to a couple of years ago when I bought my home. Moreover (controversy warning), I am beginning to think it is foolish to count on an economic collapse to get me out of the contract. It has been my plan all along to pay off the home with silver proceeds, putting extra fiat into metals instead of paying down loans. Perhaps that is not the most sure plan either.

And now all this has me thinking... Can I pay off the house I currently live in, regardless of whether silver goes to the moon this year or not? (We have recently sold two of our seven business-owned rental homes—hopefully to be sold out by year’s end).

Now, I am not saying anything here you already did not know, but I seem to need to revisit this issue of the timing of system collapse and bank obligations, and perhaps you do as well.

Banks cost me a lot of money! I live in a modest little home (too small) by American standards. But last year I paid over 10% of my income to the bank in interest. They also required me to buy private mortgage insurance, and to buy title insurance when I bought the home, piling the costs even higher. We could have sold our stack and bought a cheaper home outright, but my fear of imminent collapse caused me to hold onto my stack. With my perfect retrospective vision, I can see that I could have paid for a home outright and rebuilt a respectable stack by this time. I think my fear of immanent collapse has handcuffed my finances and kept me in bank bondage far longer than necessary.

How long will this current system last?--perhaps longer than we think. California Lawyer made a coherent argument last week that it will last until the banksters have their hands on all the retirement funds in the US, which could take a number of years. Click here to read—and give him a hat tip!

I am convinced CA-Law is right! I have suspected for a while now that this system will continue quite a while, but I could not figure out how they would do it. The huge retirement pile of fiat is how—can you see those banksters lustfully slobbering as they gaze at it? Meanwhile, my employer schedules meetings with retirement advisers a couple of time a year where they encourage us to double down in mutual funds to ensure a comfortable retirement. Smells like a trap!

If I could only be free of this bankster contract I have signed, I might feel even more security than my stack provides.

So my wife just started working again after 23 years of raising children. For the first time in our 27 year partnership we have two incomes. Now she is earning nearly what I earn and we must decide what to do with this fiat. We have been debating (politely arguing) whether to pay down our mortgage or buy more metals. I am being persuaded by her arguments to pay off our house more quickly.

Firstly, I want to keep a stable marriage. Helping her feel long-term security keeps her happier, and having a paid off home does that. Secondly, we can pay off this house surprisingly fast if we set our sights on that goal—perhaps within three years! And if I try to earn some extra fiat, we can pay it off even faster. Will this system last until 2017? Good question! If it does, it means metals will continue to be suppressed. If not, we already have a modest stack and a lot where we can build a new self-sustaining life.

At this point, I see risks and rewards to both sides: stacking more vs paying off the bank.

If I stack more, our reward could mean we are filthy rich one day instead of simply rich. But we run a risk that metals go to zero first, that holding metals is “outlawed” at some point, or that it becomes dangerous to sell to the LCS, with people following you home to see if you have more. But really, there is not much risk in stacking more.

If we pay off the home instead of stacking more, our reward would be freedom from banks, solidifying the budget with a paid off home, and a very happy, secure, wife. But we run the risks of home devaluation in another real estate pullback, or that the system collapses and we could have had more metal, but did not.

If Barney Frank and other liberals have their way, as they usually do, banks will start lending to any living person again and we will have another housing bubble.

When I weigh all the data, all these risks and rewards in the scale, given the likelihood that this system continues for more years that I can imagine, the scale tips toward home payoff.

Staying on the same page with the wife with regard to prepping and the future is invaluable. Her perspectives are different than mine, valuing security over potential wealth and my higher appetite for risk. And I have already noted several comments by some participants of this site of trouble between prepping perspectives of husbands and wives as this delay in the collapse continues. Losing one’s family while being well-prepared doesn’t sound like what anybody would want—avoiding that scene sounds like a good topic for a later post…

If I knew for sure that collapse was immanent, then metals would be the way to go. But I am not so sure anymore. If the system is going to continue another few years, then the payoff option is a no-brainer and I will come out way ahead. We may not even need to touch our stack. My wife will be happy and our marriage strengthened!

Helping my friend provided me with a small taste of life without banksters. It reminded me of how much money they scalp from you in home ownership and purchasing. And I should not even need to discuss credit cards and other credit purchases here…

Of course I don’t write all this just to tell you about my personal life, but because I figure I am a lot like many of you, facing the same challenges and decisions about the future. Some of you may consider giving any money to banks a baaaaad idea, that I should simply stack, pick up another home when housing prices deflate again, and plan to move. Please expound. I spend my time here because I want to know how everyone weighs in on these issues of system longevity and how to best prepare for the future.

About the Author


Aug 12, 2014 - 4:40pm

Wasting Assets

Houses like cars are a wasting asset. Inflation makes them appear to increase in value but one has to compute the deflation in the value of the currency. Houses require maintenance (roofs, painting, repair and/or replacing appliances, yards, fences, etc.). They require water and energy. They are a sitting duck for politicians and their agents, tax collectors and if your city goes "St Louis" or "Detroit", the apparent value evaporates. Holding a mortgage is a leveraged bet that inflation will continue and your neighborhood remains desirable.

Aug 12, 2014 - 4:44pm

more regarding silver and gold charts decoupling

How do I refer to a kitco.com article without feeling the deserved public humiliation from (at least just this once!!) having actually read a kitco.com article? Well, what's done is done.. https://www.kitco.com/news/2014-08-12/Silver-Prices-Decoupling-From-Gold... ---- Having posted earlier that (imo) the manufactured decoupling could be an excellent sign for Silver Stackers, i agree with virtually nothing that Deb says in this article. But as it may indicate the "system" is decoupling the charts, there it is. Now to go take a shower!!

Joseph Warren
Aug 12, 2014 - 4:49pm

Many of us . . . .

especially PM investors, can relate to this.

"If only we had known . . ." we would have made different decisions.

But, no one has a crystal ball. We make the best decisions we can with the information available to us. Some believe that the current system may be able to go on a lot longer than we originally thought. There's a lot of money, including pension funds, out there for them to grab. Maybe it will go on for a long time and maybe not. I think it more likely that there is some kind of Black Swan out there that no one is thinking about, that will catch most by surprise.

As for predictions, I have no idea what's going to happen. I still watch charts, - mostly out of habit.

Aug 12, 2014 - 4:55pm

if this were the 1970's

if this were the 1970's and interest was at 18% with no end of the system in sight, then YES, get out from under long term debt. but today, with interest at nothing and the system coming unglued? debt+metals to the degree that your comfort allows. i.e. for the beginning and duration of the voyage on the Titanic, take the First Class Parlor Suite. At the end, take the uncomfortable wooden bench on one of the life rafts. And we've already hit the iceberg.

Aug 12, 2014 - 4:58pm

Re: Katie Rose's Post


"Make your wife happy. Pay off the mortgage. Watch what happens to your body when the mortgage is paid off."

So, that's the key!!

pailin SS121
Aug 12, 2014 - 5:02pm

Yeah but 18% was to save the

Yeah but 18% was to save the system, so the end was very much in sight then too. 18% was the cure. Why else gold and silver at 850 and 50...hmmm? It took 18% to coax money away from hard assets (of the many kinds, not just metals). Not 17, 16, 15, 14...et al. And they would have gone higher too if they'd had to. It's never obvious until after the fact. When they start raising rates dramatically again, then you know it's time to re-evaluate if the stack is high enough after all! And double up on the food supplies too. I hear FEMA food is not so yummy :)

ancientmoney SS121
Aug 12, 2014 - 5:05pm

SS121 and Kitco article . . .

There is a reason that silver has the largest concentrated short position of any material known to man. As Bill Holter said, silver is the Achilles' Heel of the banksters.

Silver is a very tiny market, and very little money is needed to "break the (silver) bank." Doing so would open the doors to termination of the western financial system.

This is why JPM acts on behalf of the Fed/Treasury/OneBank--letting silver trade freely would destroy the system they so strive to maintain. So, they throw everything, including the kitchen sink at silver to keep people away.

transplanted baby
Aug 12, 2014 - 5:21pm


Dr. J, I was in the same boat. A friend and I had bought homes in the same area at the same time. This was back in 2000. He took out a 30 year, I took out a 10 year fixed rate. He is still paying his loan back, but with the lower monthly payments has found the extra money to put solar on his house. I looked at how much I was going to be paying in interest and said to hell with that. I threw everything I had at the loan and paid it off in six years. 2000 was the about the low in gold. I could have thrown everything I had into gold, rode the price up, sold, and paid off my loan and still had money left over for solar. I did not pick the low in gold-although my wife had suggested it (why is she always right?!) So what to do today? Hard to say. We, watching this site, are waiting for the big inflation. But it has not yet happened. IF it does happen, gold will go way up and the “value” of your mortgage will go way down. The question is “Is this big inflation going to happen and when?” Got me. But I remain warily hopeful that it was right to stack.

Aug 12, 2014 - 6:04pm

Great Article !

Thanks, Dr. J !

Aug 12, 2014 - 6:24pm

The end of the system- theater vs reality

Let's say the 'system', with it's charts, reports, reported debt, media channels, media sites, interest rates, indexes, etc. is a 100% complete scam/hoax.

For the system to portray "The End is Near" with their charts, reports etc is one thing.

For people to realize that the whole thing is one big zillion-layered lie, is "The End"

Scams end quickly, and whenever their true nature is exposed.

The 18% interest of the 70's, that they used to shift the people's focus back to paper, was do-able because the people all believed that the dynamics were those of legitimate entities and factors.

Even the manufactured 2008 "crisis" that was done to politicize and create the perception that QE and bailouts were demanded by the people ...whether for against, everybody thought that the dynamics in play were at least real.

Today it's different. People are turning to Silver and Gold because they are realizing the system is fake.

Look at this post by Dr. J for example. Are he and his wife stacking because of mining industry analysis or patterns on a chart somewhere? Nope, he is realizing that the system is a Bernie Madoff deluxe.

Not everybody is 'waking up' all at once, and each discern the reality from the theater at their own pace, but that's what is happening. It's a Monetary dynamic, the ending of the system. Where everything before (within the system/theater) was what the system teaches people to call "economics".

I realize that this doesn't resonate with folks who still think that the system is at least legitimate, albeit with "manipulation", and this is not meant to be offensive or alarming. But from the perspective that it's all a scam that the people are evidently waking up to, THIS IS DIFFERENT.

And these things end much much more quickly than "economic cycles".

Green Lantern
Aug 12, 2014 - 6:30pm

Right on Palin! Good to see

Right on Palin! Good to see you here. But don't you know it's the American Dream to own lots of thing before you have the cash to truly own it? AFter all, a man's house is his castle and everybody wants to be king. We cry foul when government uses the same tactics but it's ok if we dabble in the debt game especially when it's not productive debt. The system exists for one reason, we allow it. NO other reason. They only have more power because we give it to them.

YOu all need to marry a Korean or Chinese woman/man because these Asian communities at least in my neck of the woods don't play this game. They work their tails off until they have the cash. 10 and 12 hour days and they stash it ALL away. They fill their suitcases up walk into the private garden estates and drop on the table. And we are not talking white collar executives for the fortune 500, we are talking people who work and own small business's, nail salons, restaurants, grocery stores etc...


And often once they get that house, it's too big for their needs so what do they do, split that sucker up and charge rent. Koreans abhor the banks in my neck of the woods. They get together and pool their resources and help you start your business and all you have to do is pay it forward back into the pool for the next generation to be able to the same. Suffice to say that the Chinese and Korean communities are the fastest growing area's with thriving economic communities. They single handedly put the Italian and other European immigrant communities out of business by selling better quality for less. Using their own shipping network, growing their own vegetables etc..

I can't speak for the younger generation but my observation and interaction with the older generation Asians is it's all about savings.

They don't buy shit with credit cards. They own their cars outright and often their houses.

There was not one founder that supported the idea of personal or government debt. If every person here had read and lived the words of Ben Franklin, A Way to Wealth, NOBODY would be in this predicament having to make a choice. We have all sorts of fancy philosophies on monetary policy, the nature of currency but in the end how many can follow the most basic simple rules of good personal finance when it conflicts with their programmed need to own shit? It's convenient to label everybody else "the sheeple" until you take a good look at at just how much of your behavior is driven by external sources that want and do everything in their power to ensure you have debt that is not productive.

boomer sooner
Aug 12, 2014 - 6:59pm


Good to see you around. Miss your commentary, post more! As to you renting vs own. Just one of my rentals practically makes my 15 year mortgage payment on my residence. This is why I do not like renting. I currently rent my warehouse and it drives me nuts. For what I am paying in rent, 15 years it is mine, less gov and insurance. I constantly look for property that I can purchase and rent out, then build a warehouse on same property for my own use. Current prices prohibit this, but eventually I will find, hence sitting on cash. I move slow, but make decisions for future very deliberately. Palin, wish I had an eye for art like you do, but being color blind, a frickin stoplight gives me problems, if laid on its side.

Aug 12, 2014 - 7:13pm

The end is near!...

All the lies & manipulation...will soon be finished!...Karma is a bitch!!!...

Bag Of Gold

Aug 12, 2014 - 7:13pm

RE pros

I don't fault anybody making their productive business IN real estate (with or w/o debt), most likely it's your passion and you're friggin' good at it, yeah? No different than what I do, culling the very best art that walks in for my walls :) But that's not for everybody and so not everybody is a successful art dealer or playah in RE. But what are you a playah at? Nothing but paying bills, mostly interest at that? Hmmm. Time to re-think, methinks :) :)

sierra skier
Aug 12, 2014 - 7:27pm

Nice Art BOG

You did however miss one of my senators who is not much better than my other two shown female politicians in DC.

Green Lantern
Aug 12, 2014 - 7:50pm
Aug 12, 2014 - 8:55pm

Dumping the Banksters

Great article, I identified with your dilemma. In my case, I worked it out slowly over time converting my retirement funds into a small stack while at the same time paying off my mortgage. What made me decide to begin and eventually pay off the mortgage was a passage I read an article by John Williams at Shadowstats. In one of his yearly hyperinflation special reports (2012 I think), he describes what happened at the end of the Weimar Germany hyperinflation. All mortages were readjusted or "recast" into the new currency. This included mortgages that were payed-off during the hyperinflation. I couldn't find the article on John's website, however. It sure sounded like something the banksters and government would conspire to do. I figure it wouldn't take much from CONgress to pass a law, or an Exective Order to make it happen. I was also little concerned about being sent off to a FEMA camp or something for reprogramming some day. This would leave my wife with mortage to deal with. So, I bought a little peace of mind too. Good luck

Fred Hayek
Aug 12, 2014 - 9:06pm

Beating the banks on a mortgage might not work

Someone once sent a link to Andy Hoffman to a description of a law passed in Germany after their hyperinflation was over.

The bottom line was that if you had a mortgage on a house in Berlin in 1923, you didn't get to pay it off with hyperinflated currency. A year or so after that was all over they simply passed a law saying that if you owed X,000 marks on your mortgage in 1923, you now owe (0.9)X,000 Rentenmarks (the currency that followed the hyperinflation) on your mortgage.

If the big banks exist at all after the collapse, don't count on them being unable to screw you over one more time.

So, yes, just as you have to worry that they'll change the rules and try to confiscate your metals or make it very difficult to spend them, you have to worry that you won't be able to get ahead on your house, either.

Aug 12, 2014 - 9:19pm

What's wrong with this picture?

GLD, the largest gold ETF holds 795 tons of phyzz (at least so they say). SLV, the largest silver ETF holds 10,101 tons of supposed phyzz. That is about a 13:1 silver:gold ratio At the comex, the total gold in dealer and customer accounts is 9,740,000 ounces. Again at COMEX, total silver is claimed to be 175,000,000 ounces. That is a ratio of about 17.6:1 silver:gold ratio So, the major physical storehouses we hear about have ratios that approach nature's ratio of 14 or 15:1. There are also the sovereign gold holdings of some 30,000 tons of gold compared to essentially zero tons of silver. This makes the ratio what, maybe 1:1? Yet, the price of silver:gold is 65.8:1 Why would this be when silver is much more important to modern life than is gold? How about a gigantic concentrated, illegal short position by JPM and one or two more TBTF banks? Yup-that'll do it.

Aug 12, 2014 - 9:47pm

Mortgage and bankers...

Mortgage and bankers... caution! watch out who you sleep with!


what the hell, the world is full of possible shit scenerios...ducks, lsd, rock n roll....

come on over to BOG's art world; Dr. J in the house, box houses everywhere, diamond drillers per square foot more than in South Africa.....

49 errs, Cariboo madness, Yukon Puke, Ural Placer review...shhhhh, it's just starting to turn; long necked spotted deer.

5 Amazing Giraffe Facts - Science on the Web #51
Green Lantern
Aug 12, 2014 - 10:07pm

Go back to I think the last

Go back to I think the last thread and read 57Goldtops post on Canadian Living Will. The banks aren't going to collapse without taking you down with them. It's now a law in Canada. The banks are more important than the people. The banks might collapse at some point, but the owners will remain the same. They are planning on it and transferring their assets into a new system.

The institutions might fail but the bankers don't die. Since Babylon, they have been the one constant bridging civilizations. Once one civilization decays, they move onto the next. Kind of like reincarnation.

Anybody ever see the movie "The Red Violin" Famous violin makers wife and child dies in labor and he uses her blood to varnish the violin. It's life spans four centuries. Many owners and many civilizations. Whoever comes in contact with somehow meets their demise. As it enters the new time period, there are no memories of times past. Kind of like societies memory of the history of the banksters

The Red Violin Official Trailer #1 - Carlo Cecchi Movie (1998) HD
Aug 12, 2014 - 10:19pm

Harvey's Up! 

Harvey's Up! https://www.tfmetalsreport.com/comment/621788#comment-621788

  • Mark O'Byrne: Gold popped higher today as equities fell on news that a Russian aid convoy is heading to Ukraine and on signs that the new deepening tensions and risk of conflict with Russia is hurting confidence in the euro zone economy. The Zew think tank in Germany reported a drop in investor confidence to its lowest level since 2012 due to the risk that economic sanctions pose to fragile economies. This helped push European shares and the euro lower, while boosting German bunds and gold. Gold has climbed about 9% this year, mostly on geopolitical tensions between the West and Russia over Ukraine, and violence in the Middle East. Gold is seen as a safe haven investment to hedge riskier assets such as equities. Many market participants are surprised that gold has not seen greater gains and is flat since February.
  • Harvey: Gold started to rebound after our usual whack at 3 am this morning by our banker friends. Gold then shot up noticeably to hit its zenith at $1318.00 However, silver refused to join in the festivities as this metal was down 10 cents while gold was up $8.00. It seems that the bankers were quite nervous to see gold close to the $1320 level as they did not want to see any excitement which would have caused gold to pierce this hugely resistance level. However it seems to me that the target is really silver. The bankers have a huge derivative exposure to silver and that is what is keeping a lid on this metal. Eventually, the bankers will be buried. Gold finished down 50 cents an ounce and silver declined by 14 cents. The main story of the day is still Russia and the Ukraine. Russia has sent "humanitarian" aid towards the Ukraine but Poroshenko will not let these trucks into the country. Putin responded by holding more war exercises. The Ebola manifestation is causing alarm bells all over the world where the CDC just called the alert a Category 1 (the highest). The virus is now in 5 countries. The virus is airborne.
  • GoldCore: Work on the use of the resolution mechanisms set out in the Dodd-Frank Act, based on the principle of a single point of entry--though less advanced than the work on capital and liquidity ratios--holds the promise of making it possible to resolve banks in difficulty at no direct cost to the taxpayer. As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding--this cushion is known as a "gone concern" buffer.” Fischer’s comments that the U.S. is “preparing a proposal” for bail-ins is at odds with Federal Deposit Insurance Corporation (FDIC) and Bank of England officials who have said that bail-in legislation could be used today. The U.S. already has in place plans for bail-ins in the event of banks failing. Indeed, the U.S. has conducted simulation exercises with the U.K. in 2013 and again this year.
  • Neil Hume: There are just three trading days before the new, electronic replacement for the 117-year old silver fix goes live and there is still considerable uncertainty over who will be participating on Friday. Since there is no centralised clearing for precious metals markets, the initial users of the new benchmark are expected to be the 11 market-making members of the London Bullion Market Association, which include Credit Suisse, JPMorgan, Goldman Sachs, and UBS. But so far no one has publicly stepped forward to say they will be involved even though testing of the system has gone without a hitch. The CME Group, whose Comex exchange offers the biggest silver futures contract, is providing the electronic price platform and the algorithm that will be used to set the auction's opening price. Thomson Reuters will take care of the governance and administration. Peer pressure will help. The banks that do sign up -- and several are rumoured to have indicated willingness -- could simply refuse to process orders for those who have not bothered. This could place the laggards in the potentially embarrassing situation of not being able to execute a trade for a large, important client of the bank.
  • Sridhar Natarajan and Alastair Marsh (Bloomberg News): Derivatives that helped inflate the 2007 credit bubble are being remade for a new generation. JPMorgan Chase & Co. is offering a swap contract tied to a speculative-grade loan index that makes it easier for investors to wager on the debt. Goldman Sachs Group Inc. is planning as much as 10 billion euros ($13.4 billion) of structured investments that bundle debt into top-rated securities, while ProShares last week started offering exchange-traded funds backed by credit-default swaps on company debt. Wall Street is starting to return to the financial innovation that helped extend the debt rally seven years ago before exacerbating the worst financial crisis since the Great Depression. The instruments are springing back to life as investors seek new ways to boost returns that are being suppressed by central bank stimulus. At the same time, they're allowing hedge funds and other investors to bet more cheaply on a plunge after a 145 percent rally in junk bonds since 2008. "The true sign of a top is when you have these new structures piling up," said Lawrence McDonald, a chief strategist at Newedge USA LLC.
  • Bill Holter (Miles Franklin): Russia has retaliated to US sanctions by banning all food imports from the U.S. and Europe for 1 year. In dollar terms, the food import ban is not huge and will only "nick" U.S. and European farmers and producers. It could be argued that the import ban will only hurt Russia as they import much of their foodstuffs, I tend to disagree. If nothing else, this is symbolic. I think Russia is saying "we can survive without the West". It is interesting also that ExxonMobil is beginning an arctic drilling plan with Russian partner Rosneft in direct defiance of U.S. sanctions, will business win out or politics?
  • Bill Holter on Silver: In my opinion the "final financial shot' which leads to live financial fire (collapse) will be in either the gold or silver pits of the Comex... or ultimately both. For example, total Comex inventories of silver are 175 million ounces, the registered category is only 60 million. At $20 per silver ounce it would take only $1.2 billion to crack that market open like a watermelon. For a pittance of money in today's world, "trust" in the entire financial system of the West can be shattered. There is "trust" required in everything because the money itself is fiat which means it is not real or "backed" by anything. This is where the phrase "backed by the full faith and credit" comes from. Now, let's look at the silver market and forget about just the "registered" category, let's look at the entire inventory of 175 million ounces. This is $3.5 billion. $3.5 billion is roughly equal to the amount of QE that we were printing EACH DAY at the beginning of the year. If silver futures suddenly and collectively stood for delivery in one month, the inventory does not exist to deliver.
  • Tyler Durden: Itar-Tass reported that some 3,000 paratroopers will be airlifted in two districts of Russia’s north-western Pskov region as part of command and staff exercises of the 76th air assault division starting on Monday, Airborne Force spokeswoman, Major Irina Kruglova said. As a reminder, Pskov is located right next to the Baltics, bordering Estonia and Latvia, both of which have been on a rather belligerent diplomatic track with the Kremlin, and thus will likely result in a substantial escalation in Russia-Baltic tensions, not to mention Ukraine as well.
  • Zero Hedge: The Central Bank of Ukraine has intervened 3 times this week... demanding the market listen to it that the Hryvnia is under-valued. However, with UAH reaching record lows over 13.5 this morning, it appears they are going to need more USDs to sell.
  • Zero Hedge: Sadly, the Spanish missionary priest who became infected with Ebola treating patients in Liberia has died in hospital in Madrid. As AP reports, Father Miguel Pajares died despite receiving the experimental drug ZMapp, and is one of 3 patients to receive it (the American doctors in Atlanta being the other 2). This morning the WHO confirmed the use of "experimental, unproven" Ebola drugs such as ZMapp was ethical in this situation, as the death toll tops 1000 in what WHO called the "most severe and most complex outbreak of Ebola virus disease in history." Perhaps most concerning of all this morning is news that China is quarantining 8 of its West African nurses (as the death toll among health workers surges). Pajares, who was treating people with Ebola at the San Jose de Monrovia Hospital in Liberia when he became infected, was evacuated to Spain on Thursday. He worked for the San Juan de Dios hospital order, a Spain-based Catholic humanitarian group that runs hospitals around the world. Perhaps even more concerning is China's quarantining its West African nurses (as the death toll among health workers surges): Eight Chinese medical workers who treated patients with Ebola have been placed in quarantine in Sierra Leone.

All this and more on...

The Harvey Report!



Aug 12, 2014 - 10:36pm

I just dumped my bankers

Like many here I wrestle with the burden of fiat debt slavery. Our decision was to get out from under our mortgage and use the recent spike in RE prices in my area to "cash" out while we could pull a decent chunk of paper profit. We are now renting for the foreseeable future. Rent is locked in for 12 months, so we will have to see where we are in a year and assess options at that point. This has allowed us to pay off debt. It is a good feeling to not owe anyone. I take that back, I have two car loans, one is 0% for 5 years w/ a little more than 2 years left, the other 1.9% for 5 years with 4 years left. These rates are so good I do not mind making monthly payments and keeping the fiat where i can use it if need be.

The real reason I wanted to post was A. Dr J. slam dunk once again, and B. to share the conversation I had w/ my escrow officer when i went into sign the closing docs. I asked her, "If rolls were reversed here and I was the buyer could I exchange 300 oz of GOLD Bullion for this property?" Her first question of course was, "what is gold bullion?" Once we got that cleared up she said, "I do not know. I have never had anyone in my 20+ years working here ask me that question." She said she would try and find out.

When she returned she said, "Yes this is possible. As long as the seller does not have a mortgage and holds the deed to the property they can accept anything as payment." She also said you would not even have to go through escrow or use RE agents. You would only need a Notary Public to document the signatures and exchange.

So there is hope my metal minded friends. You will have to find a seller who owns their property out right and is willing to accept metal in exchange for their RE, but according to this lady, it is a legit option. In my case, not having to pay the 20K in fees to agents/escrow/hoa/whoever else is getting in my pie/ and taken metal in the exchange for the property would have made this transaction much more profitable. Alas, this option was not available to me as I did owe about half the sale price to my lender. If there is a next time purchasing residential RE, you can bet for sale by owner properties will be on the top of my search list.

F the banksters and their paper ponzi.

Aug 12, 2014 - 11:17pm

Russia and China's Helium-3

Russia and China's Helium-3 Conquest Russia and China's Helium-3 Plan for Fusion Flanks Obama's World War Bluster and Worthless Anglo-American Financial System Over the past 48 hours China and Russia have both announced their concrete plans for industrialization of the Moon and mining of helium-3 for earth export. Lyndon LaRouche on Monday described these bold initiatives as “an impressive and an exact winning alternative to anything being offered by the British and Obama.” Lyndon speaks at August 8th Webcast Watch Lyndon LaRouche's August 8th Webcast These initiatives closely follow Lyndon’s Friday webcast on August 8th. LaRouche, Dennis Small, Jason Ross, and Ben Deniston engaged in an intense discussion of the production of helium-3 from the Moon as the critical element of response to the British and Obama led war drive against Russia and China. Helium-3 provides the most efficient means for producing fusion power - the most critical component in creating a renaissance for humanity and consigning the present deadly monetarist system to history’s dustbin. These developments mean that unless the United States population causes the impeachment of Obama and rids itself of its related decadent belief in monetarism, it will become irrelevant to future history – having sealed its own fate. LaRouche notes that Russia and China are answering the British-Obama bluster about economic sanctions, austerity, and World War III with actual war preparations, making their economies self- sufficient and putting them on an advanced scientific and technological platform. With the mid-July BRICS summit in Brazil in mid-July, placing almost half of the world’s population on the side of a new world economic order, China and Russia are well-prepared to do this while the London/Wall Street nexus sinks under the weight of their new speculative financial bubble. China, Russia, and Helium-3 https://listmail.larouchepac.com/t/t-l-jlhuvt-wtrkhldr-y/ China’s State Administration of Science, Technology and Industry issued a statement Sunday that the next Chang'e 4 mission will be to launch an orbiter to circle the moon and then return to Earth - a vital step in establishing the capability for transporting Helium 3 from the Moon back to earth. Simultaneous to the announcement of the revised mission plans, a Chinese Science publication, Kejishun, published a brief report on their lunar program headlined, “Helium-3 on the Moon Can Provide Mankind’s Energy Needs for the Next 10,000 years.” Over the weekend, Izvestia received and published portions of the draft new 10 year plan for the Russian space program – reporting that they will be developing key elements of a Moon base. Unlike the period preceding Sputnik, the U.S. has largely abandoned its space program, its fusion program, and its industrial base under the dictates of Wall Street, monetarism, and Obama. Continued American defense of Wall Street and the City of London, with the amateurish and genocidal freak show which has been Obama’s foreign policy, while our corrupt politicians of all stripes cower and continue to go along to get along, will ensure this nation’s destruction, LaRouche warned.

Karankawa sierra skier
Aug 12, 2014 - 11:19pm

The ONLY way to win.

Is to not PLAY THEIR game.

boomer sooner
Aug 12, 2014 - 11:22pm

Time on your hands?  Maybe

Time on your hands? Maybe forecast of what they will do.

July 2014, No. 14-14

A Simple General Equilibrium Model of Large Excess Reserves

Huberto M. Ennis

Our Research Focus: Inflation and Monetary Policy, Financial Markets and Institutions


Banking Markets, Monetary Policy

I study a non-stochastic, perfect foresight, general equilibrium model with a banking system that may hold large excess reserves when the central bank pays interest on reserves. The banking system also faces a capital constraint that may or may not be binding. When the rate of interest on reserves equals the market rate, if the quantity of reserves is large and bank capital is not scarce, the price level is indeterminate. However, for a large enough level of reserves, the bank capital constraint becomes binding and the price level moves one to one with the quantity of reserves.


boomer sooner
Aug 12, 2014 - 11:33pm

LCS, get it while you can.

Dealers close down in Minnesota By Pat Heller August 11, 2014 To summarize, the new law does little to address the problem of Minnesota-based marketers of high-priced (relative to what most dealer charge) collectibles. It does serious harm to Minnesota and non-Minnesota dealers who are not engaged in the objectionable marketing practices. It is already reducing the options for Minnesota collectors to visit local coin shops, coin shows and to deal with out-of-state dealers. Ultimately, it is the general public in Minnesota that will suffer from the impact of the newly effective coin dealer law in that state. Perhaps the scariest news is that legislators in another state, one of the most populous in the country, are already considering the adoption of this Minnesota law in that state. To protect the identity of my source, I will not identify this state. Unfortunately, there is a risk that, if the Minnesota law continues in its current form, this could be a precedent for similar laws in other states. https://numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=27786

boomer sooner
Aug 13, 2014 - 12:07am

Is Gold About to Stage a

Is Gold About to Stage a Massive Breakout? Graham Summers August 12, 2014

Quietly, and with little fanfare, Gold has begun to make some very interesting moves… The precious metal has been in the doldrums sine 2013, moving sideways throughout the last 18 months. However, today Gold looks like it wants to move higher: This is a multi-year triangle formation. We’ve had numerous touches on the trendlines, so it’s a well-established pattern. And more and more it looks like Gold wants to breakout to the upside. Indeed, we get additional signs of bullishness from the mining sector. There, miners as a whole look to have bottomed and are on the verge of a large breakout to the upside. https://www.gold-eagle.com/article/gold-about-stage-massive-breakout

AlienEyes BagOfGold
Aug 13, 2014 - 2:16am


That one was one of your best yet. Loved it !

nixy pailin
Aug 13, 2014 - 4:01am

Agree with pailin, Dr J.

Those holding banker debt are bankers' friends. Those who don't are not.

Be rid of debt FIRST, then, and only then, acquire real assets with NO borrowing.



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Key Economic Events Week of 4/15

4/16 9:15 ET Cap Util and Ind Prod
4/17 8:30 ET Trade Deficit (Feb)
4/17 10:00 ET Wholesale Inventories
4/18 8:30 ET Retail Sales (March)
4/18 8:30 ET Philly Fed
4/18 10:00 ET Business Inventories (Feb)
4/19 8:30 ET Housing Starts and Building Permits

Key Economic Events Week of 4/1

4/1 8:30 ET Retail Sales (Feb)
4/1 9:45 ET Markit & ISM Manu PMIs
4/1 10:00 ET Construction Spending (Feb)
4/1 10:00 ET Business Inventories (Jan)
4/2 8:30 ET Durable Goods (Feb)
4/3 9:45 ET Markit & ISM Services PMIs
4/5 8:30 ET BLSBS

Key Economic Events Week of 3/25

3/26 8:30 ET Housing Starts (Feb)
3/27 8:30 ET Trade Deficit (Jan)
3/28 8:30 ET Q4 GDP final guess
3/28 10:00 ET Pending Home Sales (Feb)
3/29 8:30 ET Personal Income (Feb)
3/29 8:30 ET Consumer Spending and Core Infl. (Jan)
3/29 9:45 ET Chicago PMI
3/29 10:00 ET New Home Sales (Feb)

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