Busted…at LAST!

Silly Holder, busted at last…never mind the voter intimidation case his DOJ refused to prosecute.  L. Christian Adams, the Prosecutor who handled that case and who left the DOJ after that debacle, has just released his book about it– “Injustice: Exposing the Racial Agenda of the Obama Justice Department”

Documents that prove Holder lied to Congress about his knowledge of the Fast and Furious operation have now been found. http://theulstermanreport.com/2011/10/04/breaking-document-makes-direct-link-between-holder-and-fast-and-furious-debacle/ He stated that he had heard about it last Spring when in fact documents prove he knew about it as far back as 2010.  There’s even a site dedicated to getting him prosecuted for lying to Congress, http://paracom.paramountcommunication.com/hostedemail/email.htm?h=dd5dbbd6b6eb90b82177ec88e548e648&CID=9997085638&ch=C18DA1296B29F7072D9D45B0D7B55E21

A copy of the house judiciary letter requesting a special prosecutor to investigate here:  http://theulstermanreport.com/2011/10/04/house-judiciary-letter-requesting-special-prosecutor-investigate-obama-attorney-general-eric-holder/

The *fast and furious*  efforts to cover up nearly everything that happens in this administration are at best pathetic and at worst just plain criminal.  In its continued meltdown, reported the Weekly Standard’s Mark Hemingway,

CBS News investigative journalist Sharyl Attkisson — who’s been covering the scandal from the beginning — says in an interview on the Laura Ingraham Show today that the White House and Justice Department have taken to screaming at her for reporting on the story.

She went on to say that Eric Schultz from the White House and Tracy Schmaler from the DOJ screamed and yelled at her [respectively] for covering the F & F story.

Ulsterman’s tips from his Insider source continue to inform us about what is really transpiring in our White House and it is NOT pretty.  In fact, it makes the Watergate coverups look like high school pranks.  The sheer illegality, criminality and incompetency of it all boggles the mind.  And, what a surprise– someone finally reports the facts about what is actually going on in that madhouse in our capitol.  http://theulstermanreport.com/2011/10/04/white-house-insider-obama-%E2%80%9Cisolated%E2%80%A6ignorant%E2%80%9D/

Sadly, there are millions of us that tried, unsuccessfully to warn about the dire consequences that awaited us, notably Bettina Viviano, Gigi Gaston, and so many others.  www.wewillnotbesilenced2008.com

Many thanks to Ulsterman and his Insider source for this and all information they have so bravely and patriotically shared.

Racist of the day:  Janine Garofalo


When the going gets tough, the Loser plays Victim.  Never has this been more relevant than now, as Obambisoetoro, grasping at straws for another four years of party time at our expense, seizes the Victim role with gusto.   Given his position–being both illegal and illegitimate, coupled with the rancid state of affairs in our once great country, it is the only strategy that makes sense–and that could be the ONLY landmark decision that comes of this administration of misery, catastrophe and clustermuck.  For, more than anything, Americans love an underdog.  They will root for the little guy every time:  David over Goliath, Overstock dot com over David Boies and Wall Street, Joe the Plumber over that big moneyed, small brained candidate.  And so, the only strategy left for this guy in our White House is that of the Victim.  Lord knows, that Hopey Changey thing fell flatter than yesterday’s flopped souffle, so this is it folks: The Underdog story.  They’re already bouncing it out there, trying it on for size, trying to get a little Underdog Recognition going out there, a la Truman.*

But that was then and this is now…not to mention the fact that that was Truman and this is…well, we’re STILL not really sure just WHO the individual residing in our White House is.

The fact is that Americans don’t trust Soetorobambisoebarkh or whoever he is and Townhall columnist John Ransom explains why:

The outlines of the Obama reelection strategy are becoming clearer.

The campaign will try to mirror Truman’s fighting tour against a “do nothing” Congress that is preventing the president from taking steps to rescue the US economy.

All that’s missing for Obama is a platform on the back of a high speed train from which he can harangue crowds.

For a guy battered and bruised by Congress and demoralized by his base, Truman’s strategy offers a glimmer of hope.

But don’t count on Americans to be gulled by Obama’s strategic argument with or without an assist by a magic bullet train. Obama’s no Harry Truman.

People wanted to believe that Truman was the straight-talking, guy-next door. And he was.

But no one would mistake Obama as a straight talker.

Fast talker? Yes.

In point of fact, the biggest single obstacle that Obama faces in getting reelected is that Americans don’t trust him anymore. Nor should they, based on results, history and the false premise under which he was elected.

Wanna know what Obama’s going to do in the future? Look at what he’s done in the past.

He might be the only president in the history of the country to vote “present.”

People wanted to believe in the hope-and-change hype; they gave Obama every opportunity to live up to the promise of a post-racial America.

They gave him the Congress, they gave him the money. They gave him the time. They even gave him a Nobel Prize in anticipation of his great, healing accomplishments. But he fell far short of the braggadocios, walk-on-water, presidential campaign that practically amounted to a confidence swindle out of a Mark Twain story.

That’s why the harder Obama campaigns, the less likely people will rally to his support.

Faux outrage by Obama will only serve to highlight how Obama fumbled his opportunities to cut some Gordian knots, politically.

Here are ten other reasons Americans don’t trust Obama to save the economy:

10) People have seen the president as disengaged from his job as president. Now according to Ron Suskind’s book, we have proof that Obama really is disengaged.

“His body language during these scenes is passive. He looks on and sits back as Summers, a master debater, hashes things out,” reports Bloomberg. “During one particularly acrimonious debate in March 2009, Obama leaves to get a haircut and have dinner with his family.”

9) Obama has no fixed principles on which the mass of Americans agree.

I can’t think of one policy the Obama administration has put forward which breaches the partisan divide.

8) The president comes across cocky, not confident on issues.

I think many voters have come to believe that they know more about economic issues than Obama does. And they would be right about that.

For a self-professed policy wonk, he sure seems to rely on advisors rather than his instincts. I think Americans suspect that the policy wonk talk is hyperbole designed to cover for his insecurity about his lack of knowledge.

7) He seems to always be hostage to some special interest. Whether it’s healthcare, bank reform or stimulus spending, Obama comes across either as a dupe or a known associate of a partner in crime.

He either doesn’t understand the implications of his policies or he fully understands them.

Americans will pick which is worse as they sit in a voting booth.

6) Obama tends to “double down” on problems rather than recognize something isn’t working. For example, rather than taking care to act outraged over Solyndra, Obama rushed to approve even more loans to companies as the loan deadline expired.

This is not an administration that the public thinks is a very good steward of money. And once again, they’re right about that.

5) The economic plan he’s tried hasn’t worked. The only things he’s changed are the excuse he uses.

Remember when he stopped talking about creating jobs and started talking about saving jobs instead? Remember how he told us all the economy was recovering in the first half of the year?

The American people will put up with sleight of mouth tricks like that for a bit, but will crucify you later for it. Read my lips, no new excuses.

4) Americans admire business success. That’s why we put guys like Warren Buffett and Bill Gates on such a pedestal and listen to them to the point of practically drooling over what they say.

Obama’s not promising the opportunity for unlimited success; instead he’s promising to everyone a limited type of security in lieu of success, which is alien to the American strive-and-succeed story.

3) The president’s base is hostile to the economic ideas that foster growth and reward merit, which are really the same thing.

The progressives believe in a top-down, centrally-planned economy with rewards doled out to favored groups based on a social outcome, rather than rewards based on economic merit.

Americans are sophisticated enough to understand that while a utility infielder may be overpaid at $1 million per year, that’s what the market will bear. They don’t necessarily begrudge the infielder his money. At the same time, they support a baseball owner’s right to make whatever profit he can.

This is the American way. Americans just want the right to be that infielder or major league owner based on merit.

Another example would be the administration’s attempt to create an electric car market in the US. Policies supporting the electric car market with government-created artificial incentives end up as constraints on the economy rather than incentives in the economy.

Americans want that car, like a utility infielder, to succeed on merit.

2) Obama won’t take responsibility for his failures.

It’s not just that he won’t take responsibility verbally. It’s that he won’t take responsibility policy-wise.

After enacting the stimulus plan that has contributed to the worst post-recession economic performance since the 1930s, Obama has back peddled.  But he’s also contributed nothing new to the debate besides trying to enact a smaller stimulus package.

Why would something that didn’t work previously work now because you are using a smaller version of it?

And lastly:

1) Obama lied about________________________________________ {fill in the blank and then report it to AttackWatch.com}.

And so it goes…as the old proverb says, “The dogs bark but the caravan moves on…”

*Truman’s famed Whistlestop tour included campaigning from the back of a train as it stopped at stations along the way, proclaiming his down home, honest image, and it worked. Against all odds and an already printed newpaper story proclaiming Thomas E. Dewey the winnter, Truman was the winner, leaving the Chicago Tribune with egg on its face and a morning paper with an incorrect headline.


To those of us who grew up in the post war expansion comfort of a strong Dollar, it is difficult to conceive of things devolving the way they have in the last decade.  It is only through doing our own Due Diligence–reading, researching, heeding those whose expertise and research we trust and respect–that we can hope to obtain an objective view of what is really happening–and what will, most probably, happen in the future.  We who were blessed with the gifts of wide open opportunity, economic stability and endless potential for expansion grew up  believing that those comforts would remain ever-present in our lives.  Those who came to America willing to work hard could and did achieve wealth and success in the land paved with gold.  So it is particularly frightening–and indeed, surreal–to be facing issues the like of which dominate our lives in the early 21st century.  That which we thought could never happen has happened…and then some.  Things we believed were immutable have evaporated before our very eyes.  What was once sound advice about economic growth, investing, saving and The Market is now obsolete.  All we know is that, for those of us who are brave enough to be realists, things are different now, perhaps never to return.  We must forge ahead with new, and often unfamiliar rules, into unfamiliar territory, with nothing to rely upon but the wise words of some of the realistic sages and periodic reviews of history to guide us.
Thus I present for your edification some different ideas, predictions, and approaches for the months and years to come.
It is impossible to call the exact time that the U.S. dollar will collapse; I would be a fool to try. But I will tell you that I think our fiat monetary system is approaching the end of its lifespan right now. I certainly didn’t read the signs which predict hyperinflation until now. The signs that a hyperinflation is coming are detailed here. To qualify this post I will tell you that I am an avid reader, and I have a Masters Degree in administration, and a Bachelors Degree in history with minors in psychology and economicsI believe that a monetary collapse is fast approaching. I have been studying economic history to figure out how the U.S. could possibly have asset deflation when hyperinflation is what I was betting on. It seems counterintuitive that deflation could be occurring (cheaper assets) when liquidity is flooded into the economy from Federal Reserve policy.The problem with economies is that they are not machines. An economy is not controlled by the monetary policy of governments or central banks. Evidence of this is QE1 and QE2: the liquidity did nothing to free up credit markets. The QE did not work because, fear has taken center stage. People are not buying homes because it is hard to catch a falling knife-they are scared of depreciation and they are not secure in their jobs. Economies are controlled by people within the economy. People spend fiat when they are sure of their job security, and they have faith that the future will be secure. Fiat works well when people are secure. Machines do not have desires, and fears about the future. If the economy were a machine you would only have to give it gas and it would run faster. But when you gas an economy, you can never be sure of the result. In trying to re-inflate the housing market Ben Bernanke has caused inflation in other areas. Bernanke’s sworn enemy is deflation, and he will fall for the deflationary head fake very soon.What I discovered is that before hyperinflation there is always a period of asset deflation and a fiat currency rally. We are seeing that fiat rally in the U.S. dollar right now. Even gold and silver (both assets) are deflating as people clamor for U.S. dollars and U.S. Treasuries. This is one obvious sign of the impending fiat collapse. What is not disputed is that when people get scared, they raise cash or flee to the next best sure thing: U.S. treasuries. Cash is king: but this is only for a short time.

Federal Reserve has created money as a back stop to take the moral hazard out of every bad investment for some time. That easy money from the fed is “scared money” trying to find safety. Institutions now find it too risky to loan money to the American consumer. Americans have been losing their jobs and swimming in debts for years. The jobs that left are simply gone-and they are not coming back. These bailed out institutions can’t believe their good fortune and they pay their employees and executives with the easy money from the fed. People who would have lost their jobs when their institutions failed are also bailed out. But, these employees are not certain of the economy so they hang onto their money. They do not buy a bigger house, or a new car, and they spend less. They keep their money in U.S. dollars and treasuries which they believe are certain to be a store of value. The institutions freeze pay, and refuse to hire new employees or invest in job creation.It is all about the flow of capital. This is how it looks when money flows into the pyramid during credibility inflation. Picture this upside down pyramid as “credibility inflation” which has been occurring for the past forty years. Money flows into those investments which have “credibility”.This pyramid gets inflated over forty years by the Credibility Inflation. It is important to note that this money is mostly easy credit so risk taking is amplified by the availability of this easy money. You will notice that the dollar is at the bottom of the pyramid, right above gold. For the past forty years people inflated all manner of bubbles and asset classes with easy credit. Think: dot com bubble; think real estate bubble; think commodity bubble. So now with credibility gone the deflation has been occurring in: stocks, real estate, commodities, crude oil. Now as capital exits the assets, businesses and derivatives it flows down and the U.S. dollar certainly sees a rally. But the rally in the U.S. dollar will be short lived. You see, the dollar is not the true foundation of the pyramid and it is neither an asset nor real money. It is merely a “symbolic currency”. And as such, its value can be EASILY controlled by the Fed. It is not decades away, it is happening right now. Sure, it is true that people need dollars to pay off their debts. That is because it is legal tender. As the higher levels on the pyramid have simply become too dangerous for storage of wealth there is really only one place for capital to flow to and that is the U.S. Dollar-and eventually Gold!
Although gold is experiencing deflation now (I know it is counterintuitive) it makes perfect sense that all assets deflate before a hyperinflationary period. You can take comfort in the knowledge that this is indeed a buying opportunity and maybe your only chance to dump fiat. The flight to quality will certainly end up in gold-and there is not enough gold to accommodate the conversion of all fiat. Right now capital is racing to safety….

Countesy of FOFOA-All fiat currency is a short position on gold.
Notice the bottleneck at the bottom of the pyramid? That is because there are not enough U.S. dollars or gold to supply everyone who will want them. This sounds wrong doesn’t it? Well you should know that the U.S. holds 90% of the money supply in reserve. Only about ten percent of the U.S. dollars are actually in circulation. Most of the money supply actually only exists in the form of zeros and decimals in bank computers. When people rush to banks to get their fiat, there will have to be a bank holiday to get fiat to the banks. And after that rush to fiat, when fear chases people out of the dollar there is not enough gold in the world to convert the trillions in fiat which will seek conversion from zero value paper. All of the gold in the world has a value of about 9 trillion dollars. The debt of the U.S. alone is almost twice the value of all gold in the world.
Don’t ask me to lock down an exact time that this will occur. In every country which experienced hyperinflation it was like lightning had struck. What I have done is researched what actually occurs directly before a period of hyperinflation.Here is the progression which confirms the hyperinflationary direction.
1. Monetization of bad debts is the beginning-bailouts, car and home buying subsidies-buying all bad debts and FDIC insurance-nobody loses
2. Deflation of assets is the second stage-as people become fearful of investing; also fearful banks invest in safe assets-like cash and treasuries
3. A rise in the value U.S. dollar will follow-(happening now) up 13% since flirting with 71.
4. Next is the collapse of the dollar when fear takes over and the dollars will immediately seek conversion to valueIt is only after #4 in the progression that the Federal Reserve will resort to printing money in greater quantity to meet their obligations. The fear is what causes the hyperinflation: the fear of holding dollars which are supposed to be a store of value. Businesses will demand cash and reject checks and credit cards before the hyperinflation takes hold. Fiat currency is king since you can theoretically redeem fiat for living expenses. Fiat is all people know-they have been taught to trust it from all of the talking heads on CNBC; and from the promises of their government.

You see most of this has started already. It has begun and yet the fear has not gripped the public yet. They have not recognized the deflationary head fake. When people do suddenly realize what is happening it will be too late to preserve your wealth or gather what you need to sustain you through the hyperinflationary time.

Zimbabwe didn’t have billion dollar notes when hyperinflation started. They only had Z$100 notes just like the US. The million and billion dollar notes followed the onset of confidence collapse as the government printed to survive.

The next chart is the “deflationary head-fake” (Argentina) right before the onset of hyperinflation as the private bank credit money disappears…

So first comes hyperinflation, then, and only then, comes the massive printing as the central bank tries desperately to keep the government functioning. So don’t look for massive printing to see hyperinflation coming. Look for the monetization of bad debt (already happened) and the first signs of real price inflation (we are seeing it now in food and health care 10%), even in the face of apparently deflationary forces.

I could not possibly say it better than our very own Karl Denninger’s Market Ticker blog.  Make him a fave, read him each and every day.  He is one of the few who tells it like it is.

What Is Risked When Prosecution Is Absent

I have long mused, in fact since the beginning of this blog, about one primary question:

What happens when the people discern that the government is nothing more than a band of felons instead of the cops?

Many considered this a rhetorical question. Those on the left sneered, those on the right looked at the argument and scoffed: Oh no, look, we busted Marco over there for drug running last week.

Ah, you did, but Wachovia you did not “bust” in a criminal sense, even though they admitted in court that they ran drug money for criminal cartels.

There was no prosecution. Instead there was a “deferred agreement”, and the screaming in the media started only once it expired and criminal charges could no longer be brought.

The Ticker, on the other hand, covered it long before that time. Few others did, and there was no mainstream coverage and demand for prosecution at all.

The danger, as I have repeatedly pointed out, in the government’s willful, intentional and repeated refusal to put an end to these abuses is that there is a point at which the people have had enough and will simply not sit for it any more, nor will they believe they can vote for a change and actually receive that change.

How many people voted for “change” in 2008 yet did not receive it?

Once that point is reached civil order can be lost, perhaps irretrievably so.

Government, for its part, always seems to believe that this day will never come, no matter the severity of the abuses they tolerate by the rich and powerful, the favors they grant or the screwing they either mete out themselves or allow others to perform in exchange for some renumeration in campaign contributions. The King of England didn’t think the people would snap. Neville Chamberlain was quite sure that we could have “peace in our time” through appeasement of bad acts by others, in his case Adolph Hitler. In the more-recent past there was Hosni Mubarak, among others.

Likewise, both President Bush and President Obama have taken this same approach, and have even said in public that we must “move on” and not look to what happened, but to what we can do in the future.


Will this willful refusal to hold people to account for their ponzi schemes in the interest of “Wall Street” and continued pretension that we’ll “muddle through” be proved correct in the fullness of time?

Or will, as this video states, the simple fact that once there is nobody left to screw an ugly reality will face those who have been doing the screwing: The man who you have screwed out of everything — the man with nothing left — has nothing left to lose.

I do not look forward to the day being proclaimed and looked toward in this presentation. There is no reason for our political and justice system to have allowed the financial******of our nation and her people, not to mention that of the rest of the developed and developing world.

Please remember, ladies and gentlemen, that the Bush Administration sued states that attempted to put a stop to predatory lending — a major part of the housing bubble. Did President Obama reverse these decisions and go after the banksters? No — instead he has tried to “settle” the fraudclosure robosigning and predatory lending of the 2000s rather than prosecuting wrongdoers, despite sworn, under-oath testimony regarding intentional sales of loans that did not conform to claimed standards and over 100,000 withdrawn affidavits that appear to clearly document pervasive and outrageous acts of perjury.

Should you or I attempt to run a pyramid scheme as the banksters and government have, or screw little old ladies out of their retirement income we would be sitting in prison serving a just sentence. Charles Ponzi was prosecuted and jailed, as was Bernie Madoff. But those who ran the below claim of “prosperity” for 30 years — including but certainly not limited to Alan Greenspan, Ben Bernanke and the political elites in both Democrat and Republicans parties, which is just as mathematically impossible as what Charles did — walk free.

One can only hope that, one day soon, the *hogs* will get *eaten*…and that the protests against Wall Street bail outs, beggaring the Public, and perfidy with impunity end, once and for all.

Every once in awhile, a blow is struck for the Good Guys–those law abiding, honorable souls who spend their lives trying to live by the rules and conduct honorable business.
Apropos of what has transpired on Wall Street–and, consequently, in our country–I came across the piece below, written by the Chairman and CEO of the famed Overstock.com, who has done a noble job of fighting tirelessly to cage the cretins who nearly ruined his business through illegal and heinously nefarious stock manipulation.  The Dame has watched this kind of criminality permeate the Market and began working more than ten years ago to alert media and the American Public to these nefarious and dangerous practices, designed to enrich the perpetrators by beggaring legitimate businesses.  No big surprise there–lo and behold, none of the media, not even financial reporters from WSJ, WaPo and the NY Times would deign to investigate the proof we had…fast forward to 2011, read yesterday’s post, and today’s news of GM stock devaluation and you have the whole story in a nutshell: criminals have been running amok with impunity for years, beggaring businesses and their shareholders and laughing all the way to the banks…until now.
Patrick Byrne, Overstock’s CEO has been fighting these despicable creatures for years now, and winning.   Lehman is gone, BS [Bear Stearns] and Merrill Lynch–you remember them, going Bullsh*t  Bullish on America–sold at fire sale prices and Goldman Sachs and Merrill, and parent company Bank of America will be in court this December, continuing the fight.

O.co aka Overstock.com vs. Goldman Sachs: A True David & Goliath Story
Patrick M. Byrne
Chairman and CEO
For six years Overstock.com has waged a war to expose Wall Street mischief. We did not go looking for a fight, but our company wasattacked, and we learned we were not alone: the same manipulation-for-profit tools that Wall Street had deployed against us had also been deployed against many American companies, harming job creation, innovation, and economic growth. We knew that if left unchecked and unexposed, Wall Street’s games could ultimately damage U.S. capital markets.
So in 2005 and 2007 we filed two lawsuits. The first case was against a hedge fund (Rocker Partners) and hatchet-job-for-hire research team (Gradient Analytics), both with ties to Jim Cramer. The second case was against a group of eleven Wall Street prime brokers, culminating in Goldman Sachs. The hedge fund in question (Rocker Partners) hired famed lawyer David Boies, and the prime brokers showed up with an army of the most prestigious law firms in America. Our lawyers were Dore Griffinger, Ellen Cirangle, Jonathan Sommer and Catherine Jackson of Stein & Lubin, a small but excellent San Francisco law firm.
We won the hedge fund case against Gradient and Rocker, extracting an apology, a retraction and over $5 million in cash (it felt good to beat David Boies’ firm). In our prime broker case, one of the Wall Street banks (Lehman Brothers) has gone under (two, Bear Stearns and Merrill Lynch were sold at fire sale prices), and another seven paid us millions to let them out.
That leads us to the main event this coming December, when Overstock.com will square off against Goldman Sachs and Merrill Lynch (and Merrill’s parent, Bank of America) in a San Francisco courtroom. Recently, in the prosecution of this case, we uncovered evidence of collusive action between Goldman Sachs, Merrill Lynch and other Wall Street bad guys, in a scheme designed to fool regulators and profit illegally at the expense of Overstock.com. As a result of this discovery, in December 2010, we added a Racketeer Influenced and Corrupt Organization (RICO) Act claim and requested treble damages under this RICO claim. We firmly believe the conduct of Goldman Sachs and Merrill Lynch were “racketeering” and “corrupt.” We are moving forward: trial is scheduled to commence this year, on December 5, 2011. At trial we will hold Goldman Sachs and Merrill Lynch accountable and expose a slew of illegal Wall Street practices to the public.


BRAVO, Patrick Byrne, and godspeed in your fight against Wall Street crime!  You’re striking blows against the criminal empire, not only for your company, but for all those millions of investors, both large and small, who have been defrauded and robbed by the criminal element.

…and THAT’S not even the half of it, folks.  It is indeed looking more and more like there’s no gold in that pot at the end of the rainbow–just a pile of worthless paper.  The Swedes no longer accept the American dollar and [H/T to Bones for bringing to light Seeking Alpha’s “Seems Like Mexico’s Purchased 110 Tons of Gold That Didn’t Exist, by Avery Goodman] apparently, Mexico’s attempt to bolster their position with the purchase of 110 tons of gold purchased from a British bullion bank have failed disimally, leaving them with only a faint promise of any hope to collect their purchase. The problem is that they did not take physical delivery, and thus subjected themselves to one of the oldest scams in the history of humankind:

They now own nothing more than a gold “bond” issued by a commercial bank. They have been tricked into buying a debt instrument that will never pay one penny in interest. They’ve been sold a “pig in a poke”.

It is, on one hand, unbelievable that this kind of major fraud continues to be perpetrated in this day and age, when people–and governments, one would think–should be more circumspect.  But, sadly, fraud and corruption have become the operative words in the current world, where, now more than ever,  criminality with impunity apparently rules supreme.

Avery’s article is most notable because it has a silver lining–one of illumination, and of another truth telling hero in the army for transparency:  one

Guillermo Barba…[who] posed a number of questions to the Mexican Central Bank about the gold purchases… Mr. Barba is apparently very persistent and, finally…they gave him the answers he sought.

In essence,

the Bank of Mexico has become an unsecured creditor of the bullion bank that sold them on the deal. Like so many other institutional and private investors, Banxico has made the mistake of trusting the London bullion bankers. It was duped into buying what is essentially an unsecured “bond” giving a claim not on gold, but rather, merely upon the general assets of the selling bank.

Selling imaginary gold to an emerging market central bank in a quasi-fraudulent unallocated storage scheme is a gutsy move. By doing so, the bullion bank defeated the very purpose for which the Bank of Mexico was buying the bullion. Instead of owning a valuable asset (gold), free of counter-party risk, Mexico owns nothing. It appears to merely be an unsecured secured creditor of a London mega-bank that is probably insolvent like most of them.

Many of the LBMA banks were kept alive solely by the grace of bailouts from their headquarters’ national government. If one of these banks eventually does officially go belly-up, they will all go belly-up, and Mexico’s gold will be lost forever.

The only way to be sure of ownership is to take physical delivery, and as a central bank, Banxico should certainly do that. Mexico should tolerate nothing less. Once it is clear that someone has misled you, you don’t give them a second chance if you’re smart.

Clearly, Mexico–as well as many, many others who sought solvency through the purchase of precious metals–fell victim to the ultimate fraud by not insisting upon physical delivery.  Make sure you do not do the same.  And, do not make yourself a victim of the pernicious plethora of *gold buyers and sellers* out there.  Do NOT send your metals to someone who advertises on television by promising to send you a check if you send them your gold; do NOT purchase any metals from any entity that does not guarantee physical delivery.  If you’re in doubt about whom to trust, Colorado Gold is, IMO, the best company with which to deal.  Discreet, personal service, guaranteed physical delivery and the utmost of integrity are their bywords.  Their site also has real time price and currency updates.  www.coloradogold.comThe President, Don Stott, has been in the precious metal business for nearly 40 years, and writes a twice weekly column, the most recent of which is the Sept. 27 piece–a good commentary on what COMEX*  is up to,  how metal brokerage works, and what has been happening recently in the precious metals market.   http://www.coloradogold.com/archive/The_COMEX_Did_It_Again-1094.html

So, take heed, Mexico–caveat emptor!  (You should have gone with Colorado Gold;)

Stay awake, pay attention, listen and learn, do your own Due Diligence and only deal with REPUTABLE businesses–in ANY sector!

Yrs in liberty,

The Dame

P.S.  Go for the Gold,

but C# or you will Bɓ ;))

* a gold trust owned by iShares

Not a pretty visual, folks…but the majority of informed opinion indicates that not only is *it* hitting the proverbial fan, but that it is deep and getting deeper.  Lamestream media shills’ pathetic efforts to convince us that we are *now* in a “Double Dip” are no less than shameful; EVERYONE knows that we are in a BAD Depression and have been for a few years now, despite all efforts to cover it up, placate the masses with loud, inane television projects designed to distract, confuse, obfuscate and totally misinform the viewing public.  All reliable sources–from brilliant  Gerald Celente to Logistics Monster to Warren Bonesteel–have been telling us the same thing for awhile now, and we ignore them at our peril.

I implore you all to plan for whatever future there might be; give the moment your full attention; live your lives as well as you can; and listen to the wisdom instead of the wizards of wile.  AND take a look at Blacklisted News: Nervous Breakdown? 21 Signs That Something Big Is About To Happen…and read everything you can find that has been researched and written by the Big Three abovementioned.

%d bloggers like this: