Saturday, February 9, 2013

During most of world history, financial assets have been a small fraction of total wealth. But a number of "innovations" over the last one hundred years have created an imbalance that the world has never seen before. Today, financial assets represent 95% or more of the total wealth in the world. In our rigged markets, real productive capacity and resources have been valued at less than 5% of of total wealth. This is an absurd and unsustainable situation. The people (wizards) who can create unlimited financial assets at the click of a mouse button understand that, everyone else (sheeple) do not. In order to hang on the their share of the "wealth", the wizards must convert their wealth. The sequence is as follows:

1) Financial Assets -> 2) Monetary Metals -> 3) Tangible Assets -> 4) Financial Assets
Right now:

The wizards are accumulating monetary metals now, physical bullion.
The sheeple are accumulating financial assets (GLD, SLV).

During the currency crisis:

The wizards will buy tangible assets using their physical bullion.
The sheeple will buy monetary metals using what is left of their financial assets

After the currency crisis:

The wizards will buy financial assets by borrowing against their tangible assets and monetary metals.
The sheeple will buy tangible assets with cash and remain without debt.

There are plenty of opportunities if you understand this. Don't be one of the sheeple.

Financial Assets

Over the counter derivatives
Market traded derivatives
Insurance policies
Government bonds
Corporate bonds
Pensions
Social Security
GLD, SLV, unallocated metal accounts
Money market accounts
Demand deposits
Paper money

Monetary Metals

Closed end monetary metal funds that have the goods
Allocated monetary metal accounts that have the goods
Physical silver
Physical gold

Tangible Assets

Commercial Real Estate
Residential Real Estate
Scrap metal
Unskilled labor
Quality know-how based stocks (technology, manufacturing, service)
Quality resource based stocks (energy, food, monetary metal)
Farmland
Skilled labor

by Vincent Bressler
vincentbressler@yahoo.com
-- Posted Wednesday, 14 April 2010 |

Financial System Will Go Out With A Bang

-- Posted Monday, 4 January 2010 |
By: Vincent Bressler
Like many of you, years ago I became aware that something was horribly wrong with our financial system. For me the awakening was in 2003 and 2004. Back then, this was a taboo subject, even among my family. Now it is a subject that everyone seems to accept and most try to ignore. Meanwhile, my fascination continues.

It is 2010 now, and the internet is full of intelligent (and and also dull) ideas regarding the state of the financial system. My every thought seems to be anticipated, refuted, and played out. But every once in a while I have something new to offer. Today is one such occasion. Here is that thought:

The bankruptcy of the existing financial system will become a reality in one explosion.

If you have studied the current situation, you know that the dynamite for the explosion is already in place. There is simply no way that even five percent of all the dollar denominated debt can find a "real" home. Congress, the Fed, foreign central banks, farmers, workers, social security recipients, unemployment recipients... they all play along with the game because every one else does. This ends with a currency crisis, when everyone decides at more or less the same time that the game is over. I see no alternative to this. Our increasing dependence on Fed guaranteed debt or Fed printed money just makes the situation more inevitable. The one and only thing holding our financial system together is that the dollar is still accepted as payment.

When the explosion occurs, the world will be re-oriented. People will be worth what they can actually produce. I don't think that this will be the end of the world, although it will feel that way to people who thought that they were worth a lot but can not in fact produce much of anything.

Deflationists see the Fed printing money, giving it to JPMorgan Chase and other favored banks who ultimately consolidate most real wealth into their basket. In this scenario, the favored banks pay pennies on the dollar for real wealth and the debt is wiped out. The result is a company with less debt, owned and operated incompetently, by people who have a right to print money, not by people who have their own capital on the line and a plan. Look at GM as a prime example of this. The result is a financial black hole that requires more and more money creation. This is not deflationary in the long run.

Ultimately everyone will realize that they are being paid in monopoly money, and we will have the explosion.

Dynamics of the explosion:

The explosion will be a rapid hyper-inflationary event. Money will race into gold and silver. The GLD and SLV exchange traded funds will at first receive a tremendous influx, and the owners of these structured financial products will make sure that there is always plenty of supply. As people realize that closed end equivalents like CEF that have real gold and silver are appreciating much more rapidly, money will abandon GLD and SLV and pour into CEF and probably the stocks of gold and silver miners. At this point the markets may go into lock down mode, as the authorities sense the explosion and make moves to stop it. Lines will start forming at banks as people try to get their cash out in order to buy physical gold and silver at coin shops. The result will be a bank holiday.

The world will look very different when the banks and stock exchanges open up again.

Vincent Bressler
vincentbressler@yahoo.com
-- Posted Monday, 4 January 2010 |

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GoldSilver.com

The Jebel es Zubleh

If Yemen Falls, so Does the Dollar Reserve?

Saturday, June 04, 2011 – by Anthony Wile

http://www.thedailybell.com/2443/If-Yemen-Falls-so-Does-the-Dollar-Reserve.html

1984 - George Orwell

http://www.george-orwell.org/l_biography.html

also wrote Animal Farm for children

Gadsden Flag

The Gadsden flag is a historical American flag with a yellow field depicting a rattlesnake coiled and ready to strike. Positioned below the snake is the legend "DONT TREAD ON ME." The flag was designed by and is named after American general and statesman Christopher Gadsden. It was also used by the United States Marine Corps as an early motto flag.

Saturday, June 4, 2011

The Journey of 1000 miles begins with a single step

Renaissance 2.0 http://www.csper.org/renaissance-20.html
see 2 links to prereqs on this page - basics of money, 6.3 lessons

Secret of Oz full movie - youtube has a full length version

http://www.youtube.com/watch?v=swkq2E8mswI

The Warning - Frontline - PBS http://www.pbs.org/wgbh/pages/frontline/warning/view/

The Inside Job - new movie, must see http://www.youtube.com/watch?v=JB2_X-RMSHs&feature=fvsr

fora-tv http://fora.tv/2010/07/28/Niall_Ferguson_Empires_on_the_Edge_of_Chaos

Loose Change 2nd Edition - http://www.youtube.com/watch?v=1Yx9NRX37SM

Remember Building 7 - http://www.youtube.com/watch?v=bczNUBxUprk

All the usual suspects - "the Greatest Trick the Devil ever played... "

http://www.youtube.com/watch?v=KnGo6Qm0Wt8

Swordfish - Misdirection "what the eyes see and the ears hear the mind believes"

http://www.youtube.com/watch?v=uuhxfYrWpxs

PBS - The Untouchables
http://www.pbs.org/wgbh/pages/frontline/untouchables/

The Crash Course - Chris Martenson's Peak Prosperity
http://www.peakprosperity.com/crashcourse

Saturday, February 9, 2013

The Only Thing Necessary for the Triumph of Evil is that Good Men Do Nothing

There are those who think it is their duty to go to war against those who are portrayed as evil

-anonymous-

I have seen men and women doing nothing who think they are doing something

- anonymous-

Wednesday, January 30, 2013

Tuesday, January 29, 2013

Tuesday, June 14, 2011

Monday, June 13, 2011

Sunday, June 12, 2011

Friday, June 10, 2011

2013 MV Agusta F4 Preview

Thursday, June 9, 2011

Relativity: What is Physical Gold REALLY Worth?

Wednesday, June 8, 2011

Conspiracy of the Rich

The 8 New Rules of Money

Regional War or World War?

Tuesday, June 7, 2011

Monday, June 6, 2011

How “Social Proof” Helps Smart Investorshttp://www.caseyresearch.com/editorial.php?page=articles/how-social-proof-helps-smart-investors&ppre

Boondock Saints - Kitty Genovese

Sunday, June 5, 2011