Friday, February 19, 2010

Today, Another Day in Bull Land.

Bear Market Charts.



 Dow Jones:



Markets across the board are losing steam as sentiment continues to grow more optimistic, but participation backs off.

Interestingly, many readers emailed expecting major declines in the US markets today as a result of the Fed's decision to raise its emergency loan rate a quarter point to .75% - despite that supposedly market-making/market-breaking decision, the markets are actually up  today thus far.

This is yet another indicator of what I have been saying here at - it's not news that drives markets but the sentiment of existing players - people use news as a justification for decisions already made, which were made with little information and under a highly emotional circumstance.  Of course they will want justification!

However, the market is its own creature, and since everyone and their mother probably expected this to be bad for the markets, guess what - they magically decide to tack a few more points on to the upside!  It will most likely take a sustained drop down for a week or two before this becomes something of "concern" to the average investor, who will by then be looking for a reason to say he sold his stocks.

While there is still some upside potential in most assets the momentum is waning, volume is waning, all measurements of true strength are waning, indicating a top is near.

Anybody feeling particularly bearish right now, watching these markets?  Good - that's when you know you should be...



So today was a fairly consolidated day, especially within the context of the rising wedge formation in the broad indices.

The S&P500 has an even more compelling rising wedge formation as well as a double gap, the second of which has been unfilled and should offer some downward magnetism for stock prices next week.

 The two highest probability scenarios for Monday are that a good sized spike occurs through the top of the wedge to complete the corrective pattern, and price turn down from there.  The second is that negative sentiment already develops over the weekend, resulting in a large gap-down on Monday.  The two minor support levels noted on the chart are good indicators of a resumption of the bear market trend if violated.

At most we expect only 1-2 more days of this correction before a resumption (and a larger one) of the downtrend to take stocks broadly lower.  This will be bad for gold and silver as well, as they have been in tight sync with stock prices, especially since this correction started (a bit of a kick in the shins for those still saying that gold is currently being treated as real money, and not as a speculative asset).

The dollar rally should also resume next week in full force, and the delayed effect on the price of gold should return in full force.

Have a great weekend folks!  I will be spending some time in my office tomorrow sorting through several mountains of paperwork, so if anyone has any questions in the interim I might fire back some replies on Saturday afternoon.  The official website is coming along well and we are excited to be developing products that will cater to precious metals enthusiasts, long-term investors, and traders as well.  Any other ideas (we've had some excellent suggestions from readers already) are always welcome, and can be sent to my personal email at

See you Monday!



  1. Derek Blain... "Silver will go below $8" "Gold straight to 650".

    I check this page just to see how many suckers believe this amateur. It's funny to think after years of holding silver many will sell right at the bottom of W2 of major 3!!! Ha ha....Bwahahahaha!

  2. Hey Derek,
    I for one was expecting a big down day today, especially being I am short the S&P currently as of 2 days ago, in at 1100.50 and my stop set at above the 1117 gap area. I couldnt sleep last nite so I watched bloomberg all night and you could see slowly by slowly the market creeping up from down 90 points to down only 30 points by open.

    Now, the last few months it seems like the bulk of the moves are created in the after hours markets, so I was very surprised to see it be an up day today. But, i still have not changed my position, these markets are extemely over bought right now, I still feel like Dow 9700 will be seen shortly, so it is just a matter of time before this market falls like a rock.... That is just my opinion....

    Thanks again for the blog......

  3. Let's be nice boys and girls.

    Derek's opinion is as valid as anyone's. He may be right and he may be wrong (and there are degrees of each), but this blog is useful when taken together with all of the other great information that is out there.

    Thanks Derek for having the guts to share your opinions with all of us.

  4. I don't know why anyone would complain about free investing advice. Bear markets do not happen overnight. I pay thousands for subscriptions and favor this blog more than my paid subscriptions! Keep up the good work!

    Thanks again,

    Kiley Kuhl
    Wisconsin USA

  5. Kiley,
    It is just a sign of the times in this country anymore...... very sad indeed.

    I am like you, in addition to my own homework on the markets, I enjoy reading Derek's blogs, and other newsletters for that matter.....

  6. There's good advice such as when momma tells you to stop whining in the Walmart or else, and there's bad advice such as when Derek tells you to short a market rocketing to the moon.

  7. Derek is quite talented and nobody gets every call right. I can recognize talent quickly when I read it... and he has it in spades and then some.

    Dave Banister
    Chief Strategist

  8. Derek,
    In your latest post on Kitco, you made a statement that I was pondering.
    It was WHEN the dollar is seen( paraphrased ) as a dying/deaed,fiat currency, and time to flee into Gold, then that's when folks would hit the exits, and go for the Gold...again, loosley paraphrased.

    NOW, my question, WHEN this scenario hits, the dollar will be like 40 on DXY, or worse...

    The cost of ANY precious metals, will be totally beyond the reach of most humanoids.

    So, my qustion to you, since if we wait for the drop to/thru $950.00, is where are we going to get the GOLD/SLVR, because folks will suck it up so fast, it will be impossible to get.

    Now, since that's pretty much what we know will happen, given EITHER of your scenario's, where do you GET IN?..........Buying on dips now, hating to leave $ on the table, but do not want to be left empty handed either.

    To make sure you do not come up needing a transfusion?.



  9. I posted before I read the other threads.
    I have( am a newbie) to Derek's site.........

    I have only followed his last FOUR.............
    He has nailed ALL FOUR.

    The names I see on Kitco all the time, he has consistently hammered.........

    For a very young man,(compared to me) that's a very good track record, IMHO.
    I will put my $$ on his advice, before anyone else on that site, from this point on.

    vhshowdown, I have noticed the same things you have, and I agree, except on the 9700 move, I think it's going much lower.));

  10. @Terry - excellent questions.

    A point to be made about buying and selling behavior of assets in terms of price movements.

    Generally, when prices rise, demand is far higher as price levels increase. As prices fall, demand is much lower.

    If you look at the buying and selling activity of silver and gold through fall of 2008, you will see the open interest fall and supply of physical actually increasing.

    Since we are early in this market you are looking at the purchase of gold and silver through the eyes of one still in a bull run and thus thinking about buying in that context.

    However, by the time this downward move is over, the availability of gold and silver should certainly be greater than in December of 2009, and probably greater than in the fall of 2008.

    That being said, buying dips is not a horrible idea and averaging in on major spikes down wouldn't hurt either. Since I already have many years worth of physical accumulation behind me personally, the urgency to accumulate isn't as high,and I haven't purchased even a dollar more of silver or gold since 2008. However, for one just starting out, even taking a portion of the cash set aside to accumulate physical metals and buying small amounts on downward price spikes (for this type of buying in silver the minimum I recommend is 100oz pieces as the minting premium is not as high and most major direct buy mints offer real time price fluctuations with spot values already containing a built-in per-ounce minting fee).

    You can't go wrong owning gold and silver as money and as a savings vehicle - I've said it a hundred times if I've said it once. So it's just a matter of risk preference - i.e. if you can live with the possibility that you might be able to buy 40% more gold and 50% more silver in 6-12 months than today with the same amount of dollars, then go nuts.

    I am just posting the odds as I see them and using them to my potential gain. You're welcome to follow along if you wish, however your own risk tolerance and priorities are your own and as such treat this as a look at the other side of the coin.

    Thanks again for the excellent questions.


  11. Derek, thank you, I am on the same wavelength as you.......except I did not start purchasing 5-10yrs ago.( Geopolitical issues, and the dollar/fiat currency issues,tend to make one IMPULSE buy),when it's not in their best timely interests...

    Appreciate your time, effort, and insights!.


  12. Derek,

    It looks like a great shorting opportunity exists here. What to do? Short PM's, Banks, SP500, DOW, or specific stocks in these sectors? Or hang in there for a riskier long dollar in the short term?


  13. Good update Derek, did not notice the gap up and gap down thru the same area, interesting. We'll see how the next trading week plays out, but I'm thinking this rally is running out of steam.

    Thanks Terri S. I say Dow 9700 because this market has been whiplash of recent, so I have learned to acknowledge support and resistance areas, then re-evaluate at that area.....

  14. If some (most) of you would spend a little more time in 'SEEING' what is happening, and what is planned, you would not be so puzzled, and keep asking the same questions.

    For example, STOP worrying about the dollar. If it was destined to implode, crash, disappear, or whatever other miserable end has been assigned to it by media analysts, I assure you - IT WOULD ALREADY HAVE HAPPENED.

    The dollar will continue to gain. While this may affect gold in the short term, it won't in the long.

    They can both move in the same directtion together when the time ios ready.

    One of the reasons they are not at present is that people have been conditioned to believe otherwise. BUT THEY WILL.

    I make good money on currencies. I travel a lot, and hold the key ones - all bought at good rates.

    The ultimate destiny for money (don't worry, it's a long way off yet, but we are slowly moving in the right direction) is that the only money we will have, is 'digital'.

    Even a little known American writer well over a hundred years ago saw this, as he saw so many things which have come, and are coming as I write, to pass.

    But there have been others who noted the trends in their day, and extended them with their imagination to see how they would play out.

    Everything man made you possess started with someone 'imagining' it first. And often
    being derided until they brought it to fruition.

    As we move in this direction the key currencies will move together in groups.

    For instance, we are now moving to a closer Dollar, Euro, GBP, relationship.

    Oh, let us get this straight, ignore any media rhetoric, mostly US media, that the Euro, and the EU will collapse. NO WAY!

    The UK will join the Euro eventually.

    There will, eventually be an Asian Union. and an.......let's leave that for now.

    How do I know all this. THEY TELL ME!

    I started buying dollars well over twelve months ago (time flies) when it looked as though it was going to be two dollars to the Brit pound.

    I could tell you much more to convince you, but why should I waste time and space convincing people that the world is roundish not flat. It's there for anyone to see - ANYONE with the imagination to acquire, and use, the knowledge.

    All, I am saying is - LOOK! (outside your box in which they imprison your mind)

    Enjoy your weekend

  15. My lines are saying 10, 650 Dow and 1150 s&P although not as pretty as Derek's. Starting March 1, 2010

  16. You are always wrong about sentiment. Gold top, etc. People are either bullish or neutral on these markets. I no bears in this market. Where you get your stats?

  17. @Anonymous,

    Regarding sentiment towards gold, the point is exactly made in your own statements -

    There are currently no real gold bears right now, especially on anything more than a short time frame. Credit Suisse and all the major players are all forecasting $950 - $1200 / oz gold, most over the $1050 mark.

    This is because gold is being treated as a capital gains asset, not money, and in such a non-bearish way across the board because it was the only asset to rebound and make new highs during this Depression.

    There will certainly be bears by the end of gold's price drop. There really should be now - remember, I'm bearish on gold as a capital gains asset, and believe it should be treated as money only, as savings vehicle. Until that mentality is embraced by the average retail investor and fund manager, its gains are superficial and easily unwound - as we will see.


    P.S. One other thing that gold bugs HATE to have brought up is that all that cash they piled into gold in 1980 (and trust me, if you look at the delivery and physical purchase stats, it was a LOT) is actually DOWN over 35% through the last 30 years.

    That's a long time to lose that much money - if you'd invested in stocks over that time, until sentiment was far too wildly bullish on them, then switched to cash even, you would be up 1000's of %, and could buy 20 times more gold today (if that was your endgame).

    here's a good chart of inflation adjusted gold.

  18. "......P.S. One other thing that gold bugs HATE to have brought up is that all that cash they piled into gold in 1980 (and trust me, if you look at the delivery and physical purchase stats, it was a LOT) is actually DOWN over 35% through the last 30 years......."

    When gold had it big bull run in the late 70's to early 80's it spiked to over $800. This was an aberration brought about by 'gold fever' in the masses towards the end (as always) and those naive, as in non-streetwise (Wall Street) 'would be' bears who could see it was way over bought, but could not get their timing right and jumped in too quickly.

    TIMING is the key.

    It was the same with 'tech bubble' almost to the letter.

    Obviously those who got caught in the trap lost money - as always.

    And this is why, when you take holding the gold price bought in the over exuberance, it would mean that gold was a poor investment.

    Gold IS (spending) MONEY but today, only in Macro economics where the real power players play. Oil is not sold for dollars. It is sold for gold.(Got that!)

    The hierarchy of the oil cartel, i.e., the Arabs, have a fixed ratio for selling their gold. It is approximately
    15 barrels for 1 troy ounce of gold.

    This way, the gold is 'real' money they can trust. The vagaries of the US dollar then affects them little. It is soon adjusted if it deviates, as it will from time to time.

    Of course you do not have to believe me, and most of you won't. especially some of the posters here who wish me to go away, as they have expressed.

    But there are many who come to this blog, as they do others, who do not post, and never will.

    They read, as they do elsewhere, weigh things up in their own free minds, and eventually adjust their thinking as to what makes sense, to them.

    It matters not to me. A person either sees it, or they don't. That's life.

  19. @ Ray Newton

    What is the best way to get started in the currency markets? Any advice?

    Kiley Kuhl
    Wisconsin USA

  20. The sentiment was gear to all markets there is no bears. NOT JUST GOLD!!

  21. S&P 1200 and DOW 11,000 End of October 2010. Then collapse. Market rally set because of super bearishness. All PIIGS countries rebound and won't have a big sell off as the US did in 2008. Starts March 1, 2010

  22. Kiley, You ask

    "....What is the best way to get started in the currency markets? Any advice?......"

    It's a very difficult question to answer simply. Oh, it would be easy to
    tell you how to buy and sell them as it is not much different than the stock market once you get a broker. Except you need a ''futures broker', or, a currency options broker - with options you can only lose what you stake. In the UK we also have 'spread betting' on the forex.

    But, I think you can tell from my other posts that in order for to help you to make the right decisions, and this applies to all the markets, you really need to understand what is behind it all.

    This way you have no false illusions, and are not shaken when things happen for which there appears no rational explanation, and therefore you accept the stupid media comments'

    As you may have observed they can use the same explanation for a market suddenly shooting up, as for it going down. THEY WILL NEVER TELL YOU THE TRUTH - NEVER!

    You see, it is all tied to international economics, and economics are tied to politics. It is decisions made in the corridors of power that cause market behaviour, sometimes sudden sometimes steady. .

    Over four hundred years ago, Shakespeare wrote - 'All the world's a stage.....' And stage plays have to have a script and stage director who direct the actors who merely read and act to the script.

    Hope this is not over your head, or you feel it irrelevant as most do. Because unless you see this, you would be entering a war zone unprepared..

    So much is happening in our world now, and it is happening quickly. Nothing is ever what it seems.

    My best advice would be to OBSERVE what is going on. STOP accepting the media's explanations of events. Get access to some currency charts on the internet, and observe their trends. Some Forex brokers have a platform from which you can practise trading.

    The currency market is huge in comparison to the stock market. It has a daily turnover of over FOUR TRILLION dollars, and operates round the clock.

  23. Derek,

    There is no way silver goes to $10 again right now, because the govts are still in bailout mode. We read this weekend that they will bailout Greece. The mortgage resets in USA are reaching their big lull to peak again in 2011. Gold is ready to break upwards on a huge cup&handle to flag on Euro chart! How can that be a falling gold price in dollars, unless the Euro falls off a cliff. Ain't going to happen because Germany will bailout Greece (that is the assurance being given behind the scenes). We may get another big liquidity crisis, but it is more likely next year. This is similar to 2003-4, where everyone feared the double-dip that never happened.

    This week is critical. If silver pushes past $17, then $14.64 was the bottom. If it repels from $16ish, then we could see $12.50 to $13. If it repels from $17, we could see re-test of $14.50.

    This is all based on a H&S pattern in silver which is detailed in my post today entirled "There were multiple interpretations of the H&S on silver chart" in the "Gold as an Investment" thread of the "Precious Metals" forum at my:

    goldwetrust dot up-with dot com

    What you all think?

  24. I urge those interested in trying to come to terms with all that is happening to digest the following.

    I used the word 'digest' instead of 'read' deliberately. You have to really take in every word, and get your mind to try and visualise what it is telling you.

    This you will find just as difficult as trying to imagine infinity. It blows the mind. Are you ready?

    "...If you spent $1 million per day from the time of the founding of Rome – roughly 2,700 years ago – until today, you would have accumulated about $1 trillion in debt. Now, double that amount. And that's the size of our annual foreign borrowing obligation.

    (That means only about half our national debt which is way in excess of this)

    I believe if the real truth were known it is even greater. And, as yet, it continues to grow.

    Now, if you consider yourself to have functioning, reasoning, minds ask yourself 'How could this happen by chance, or even be engineered on the whole world (as it does affect every man woman and child, yes and even animal, in it. by one or a couple of naive 'bankers' or even elected government officials.

    It did not happen overnight. It could have been stopped by any 'rational' 'responsible' body of men in a really 'free' society long before it got off the ground.

    Those trying to do it would now be languishing in a mental institution, dead from some suspicious cause, or, if in China, executed by firing squad.

    So, does it not occur to you that those behind it are a VERY powerful, international, body of people. And that they are extremely unlikely to have done it to destroy the world - a world that they themselves, and families have to live in?

    Nothing is done, especially on this scale, without a sound, to them at least, valid reason.

    So, what could that be, and where is it leading (rhetorical question).

    Are you really trying to engage in the Financial Markets without seeking some nearer the mark answers to this, seeming to most people, madness?

    Why worry about some simple chart 'prediction' or what some 'analyst' may 'think' without considering the big picture that affects all the small ones you spend so much time worrying about.

    Now, if you wish and it makes you feel better, dismiss me as a 'nut case' and go back to metaphorical (or literal) sleep.
    And may God, G-d, or Allah, be with you.
    You are certainly going to need Him.

  25. Here is the thing:

    1) The major of the people don't follow gold or silver. The are all in Bonds or Money Markets.
    2) Peole Laugh at Gold.
    3) Market entering a blow up top phase to sucker the last of the remaining wealth.
    4) US people are cheering European troubles and always hated Europeans.

    You tell me if you look at the above that we are due for a rally in all markets!! March 1, 2010 might start sooner or a little later but the rally begins.

    Buy Tech, Japan, Utilities, US stocks.

    You can short all Bonds(except international), International(Asian stocks), and Dividend stocks.

  26. Just an observation based on 'fact'.
    I enclose fact in brackets because some enlightened person (Neitzche) once commented that there are no such things as facts, only iterpretations from what is known.

    Against the Foreign Exchange market, The NY stock markets are a 'penny ante' game.

    The Forex market exceeds all combined equity markets around the world.

    (Is this telling you something about what moves our world?)

    In one simple word - MONEY! (?)

    But then what/who 'moves' money?

  27. I'm sorry, Mr. Newton -- stay or go, I don't care, but what's the point? You're always singing the same song; there is an elite in control. Your latest contribution is that money makes the world go 'round. Do you have any further information to enlighten us with or is that it?


    First we have to understand that, today, because of the internet and discount brokers et al, there are many followers of technical analysis.

    There are also many stay at home small time traders.

    The gold market is comparatively very small. so it is easily 'moved' by heavyweight professionals.

    They also know what tech analysis teaches so they have a pretty good idea
    what the amateurs (the mass) will do when certain patterns appear.

    It's a dead give away, especially along with the information they can gain access to (rightly or wrongly) that tells them where the bulk of stops, and shorts are in the market.

    But most of all, though you can be smiling with your lots of small gains, for a time, you can be wiped out in seconds if you are caught short with a sudden rocket upwards in the gold price.

    This will always happen just when it looks like it couldn't as everything
    is so negative.

    Gold is still in a long term uptrend. If it were not tightly controlled, it would be higher now, believe me.

    Never mind that it could fall below $900 in this or any other 'correction'.

    In fact, if those who control the gold market wanted (that is if it were in their interests) they could send gold down to $35. (Don't worry, they won't)

    If you do not understand this, and why, then stay out of the gold market.

    In the same way, if those who control the diamond market wanted, they could make diamonds 'as cheap as chips' as the Brits say. There are huge warehouses full of diamonds. (a diamond does not take up much room) They are kept out of the market to keep the price where they want it.

    The gold price HAS TO BE CONTROLLED because it affects the world's economies - ALL OF THEM.

    If you must short gold, then I would suggest to do it with options. It is much safer. Maybe use the put options as insurance on your long holdings.

    Please do not tell me you can cover your shorting with an on stop. There is no guarantee if the market suddenly moves against you that it will be covered.

    It would be far to difficult to do, and an excuse they couldn't is always valid if they could.

    And, unlike a down turn, with an upshoot - the skies the limit almost, when lots of shorts are scrambling to get out.

    As I have said, the gold market is a tiddler in today's world. And gold is the preserve of, as London mayor Boris Johnson describes (to their face) as 'The Masters of the Universe'.

    They smile because they know it. It is just you that do not. That is why they are where they are, and you (and me) are where we are.

    Take care - great care
    In spite of how you see me, I really mean well.

  29. Anonymous,
    Not sure which one you are, so many of you 'Anonymouses' or is it 'Anonymices'?

    You ask what is my point. Yet you point them out in your brief comment.

    Now if you don't get the point, that is the validity of them, then I know you have a problem. One that I also know must be reflected in your ventures into the market though I am sure you will not admit it.

    You are far from alone. The mass see as you do, and that is exactly why the markets feed off them.

    I accept you are entitled to your opinion, and to have your say. I bear no ill will. And I wish you well.

    Thank you for your response.

  30. Here is the thing:

    1) The major of the people don't follow gold or silver. The are all in Bonds or Money Markets.


    2) People Laugh at Gold.

    Ignorant people do..........

    3) Market entering a blow up top phase to sucker the last of the remaining wealth.

    Yep, just like the last two trips to the amazes me why folks continue to get fleeced, and go back, for another one!

    PURE GREED...........

    4) US people are cheering European troubles and always hated Europeans.

    Americans DO Not hate the Europeans, at all.......why would you even say such a thing?.

    Yes sir, I understand and agree wholeheartedly, there is a WORLD Control Mechanism, ON the Currency Mkts, and the PM you said.

    That aside, and this is not directed soley to you....
    The DEBT that has been run up, continuing to be run up, is going to TEAR the claws off the Beast, that has controlled these mkts.........the Green eyed monster, has finally gotten too greedy.

    The PM mkts, will ultimately be the winner, BECAUSE they ARE so small.

    The Control Factor, while things are peachy keen,is as they want it.
    When the Debt bubbles burst, as they ultimately MUST..........

    They will LOSE control of the PM Mkt's, simply because of the SMALL size...........

    As Anon said, people(in General hate Gold),really they do not hate it, they just see no use for it in normal times, they just as Derek pointed out, can make more money elsewhwere, with other vehicles.

    BUT, and the BIG, when the common folks PANIC, (and they will), the volume of demand and a flight to REAL money for self preservation( of a lifetime of work/savings), will cause the loss of control of that small mkt, (by the Powers that manipulate it as Ray has pointed out).

    Just like DeBeers...........WE all know diamonds are useless, they are as common as stones.No pun intended..............and they CONTROL the entire market, and pricing.
    One of the worst investments on the planet............

    I read in horror, a few weeks back, as the Japanese were fleeing into the diamond mkt for saftey!!!

    That's what WE are waiting on(going to see happen) will happen, there is no way short of a total global default on all debts, that any other scenario can happen, to stop this.

    Then, Armstrong's,and the Sinclair's will have been vindicated...........and WOE unto those with bare PM cupboards.

    This is a rant by a dummy,so take it for what it's worth,and what you gave for's just THE scenario I see being played out...........

  31. Americans DO Not hate the Europeans, at all.......why would you even say such a thing?.

    CNBC negative towards Europe's way of life (Socialism). Which breeds hate towards europe.

  32. Anon,
    The American media is not to be believed 90% of the time.
    Esp CNBC.
    Being negative towards a system of goverance we do not agree with, does not mean hate.
    Socialism here is against our beliefs....if a soverign nation choses it, fine by us, just don't tell us we should have's a matter of idology, and values/mores.

    We are a Republic, we hate Communism, Fascism,and Dictatorships.

    Due to the way the people are, or very limited rights, or choices,voices.

  33. @ Ray Newton

    I understand most of what you are saying and agree. I haven't believed the media for many years now and the spin is a 24 hr a day game now. I always knew the currency market was the way to go. Just didn't know which way to approach it. I have a futures account with Amp. I have been observing charts, but need to know how you picked up the skill of trading and any ideas where I could pick up some training.

    Kiley Kuhl

  34. It looks like if we can hold this level till the end of this week we will have ourselves a nice monthly reversal bar right on time for W3 of major 3 breakout. I feel sorry for the poor shmucks that listen to ill advice on this website and sell their PMs only to try to buy them back during W3 and their is none to be found! A call for $8 silver is a call to sell no matter how you slice it. Since Derek speaks that he follows a contrarian approach i thought i would like to point out that this blog is a great contrarian indicator. Derek , did you notice that most people on this blog agree with you? First lesson of investing: DONT TRADE AGAINST THE TREND, you will be run over!

  35. According to bob brinker(money talk) there is a bill being proposed that would "nationalizle all 401K's and Ira's. In return the Government would give you a monthly annuity.This may sound far fetched but this exact thing happened in Argentina. It would be a way for our nearly insolvent government to help fund future entitlements.What would this do to the price of Gold?

  36. > The DEBT that has been run up, continuing to be
    > run up, is going to TEAR the claws off the
    > Beast, that has controlled these mkts.........
    > the Green eyed monster, has finally gotten too
    > greedy.

    Disagree. The DEBT is how PTB control the situation. You can see how the debt problems of Greece (which were encouraged and aided by Goldman Sachs), are forcing European to huddle together towards a world govt. The nations do not chose to cast off the offenders, instead they march towards more socialism and towards world govt. This is what PTB want.

    I urge you to go to my goldwetrust dot up-with dot com, and then go into the Economics forum, and then read the latest post by me in the Inflation and Deflation thread. Therein I explain how the bankster model works and how this outsize debt is all part of their ratcheting plan to transfer the desired assets to themselves. Gold is just a pawn in the chessboard. They throw us a little physical rope to hang ourselves with. You don't get ahead by holding gold, you just stay even with the fraud, while everyone else falls behind and thus the gold bug is isolated at the end. We will have to sell our gold for the PTB's new currency in order to cash out to the masses. Or we can bury it for 1000 years like they did in the Dark Ages.

    Yeah they won't drive it to $35, because they would be giving away their assets and it would cause problems for them with physical flows. They rather keep it right in the range that accomplishes their goals.

    I know what their power is. And I also know what their weakness is, but they do not know it. I am working on it now. It is software related. Their weakness is related to the power of people to trade outside of their system. They know that, but they don't know about certain technological threats they can not control.


  37. All of you gold bugs who think you are really making a difference by buying physical gold, and that the DEBT bomb is going to blow in PTB's face and that you are one of the saviors, you are falling right into the trap planted for you.

    Gold is for savings, and it will stay ahead of the fraud, but it will not really change the path towards world govt. If you want to change that path, then you have to devise a release value for the masses to turn to, as the DEBT noose tightens around their neck. If you plan to just gloat while they suffer, then you will send them to support PTB and the merging of the nations to aid each other.

    This is also wisdom in the Bible. Read 1 Samuel 8 (we should not have a govt as it will steal evrything), and other versus that explain that wealth nor socialism is the solution. The solution is to do everything you can to help everyone have free markets and free trade without govts. Technology is the only way I can see to make the govt power obsolete and avoid the big move now towards world unification as the DEBT pain drives nations to bail each out. In the end, Europe and USA and China will bail each other out, or we go into WW3. Either fits the plan of PTB. The other way is what I am working on. A release value that lets individuals walk away from the fiat and go on to be prosperous and stick their middle finger to the govt. The more people that can do that, the people for us all. That is the wisdom of the Bible. The PTB can never win against the truth.


  38. Let me tell you a story
    Once upon a time......actually not all that long ago, a tiny island off the coast of Europe which even today has only a population of 60 million dominated the world. It mothered the largest Empire the world has known.

    tts navy swept, and ruled, the oceans. Its empire provided all the raw materials it needed, and also a ready made market for its goods as it became the birthplace of the Industrial Revolution which dramatically changed the world, for ever.

    The country grew rich, very rich. Yet, as it did so, most of its people, the mass, the ones who laboured to create that wealth, and spill the blood to build and hold the Empire lived in poverty - the most atrocious social conditions, at the time, that could be imagined.

    It built the first iron clad steam ships, it invented the train and built the railways. It built the first passenger jet plane, and immediately after WW2 dominated air transport.
    It had many car factories building their own cars, with well known names, including the famous Rolls Royce,

    It designed and built the first tank. One could go on, but this is enough for those with the imagination to see the point about to be made.

    Today, it has no Empire, no really own car, or aircraft, or ship building. industry, in fact it has almost no industry. It's cotton, and woollen mills which helped to clothe the world have all gone, You will hardly see a mill chimney anywhere.

    Now, if this total apparent decline had been predicted at the time of Empire, first it would have been derided, but for those who joined the doomsayers, they could have been forgiven for believing that the famous British Pound would disappear, buried in the rubble of its Empire, or sunk with its navy.

    But, it is still there, and the pound is still a respected currency (yet). But what is more paradox, most of its people live in social conditions that their forebears would not have dared to dream. They not only travel the world, many have second homes in Florida, Spain, Italy among many other desirable places.

    They drive cars built in many nations other than their own. They sail on cruise liners that have never seen any once famous British shipyard; they fly planes built in Europe or the USA, and wear clothes made in sweat shops abroad..........need I go on?

    Its military is still the largest field army that is supporting the US in its ventures. The only one since WW2 we were not alongside, the US lost - Vietnam.

    DO YOU GET THE POINT? This is not about nationalism, If you see it as such, you are way off beam. Nationalism is for the sportsfield, in business its the wrong path and will lead you astray.

    The way to seek enlightenment is to QUESTION. Ask yourself questions WHY? Seek logical answers by clearing the mind of garbage, digging deep, and applying reason.

    There is a reason, there is ALWAYS a REASON. But it is never the one dished up in the soup kitchens of education.

    How can anyone understanding the above think the US, or US dollar, cannot survive? The US is rich in raw materials, its land mass is huge - no shortage of that valuable commodity. If that tiny island, with little or no raw materials, and land at a premium, can survive, and prosper, surely the US can.

    (There is one very deep embedded reason for a particular nations success, and survival, or economic decline - you will either see it, or you won't, but it is on the 'need to know'list, right at the top.

    (Do you see now Kiley why I bought US dollars when they appeared heading for two to the Brit Pound?)

    That is one message from my 'story', but there are many others which will lie hidden to most, but for those who not only 'see' but 'observe' with 'imagination' there is all you need to know about where we are going, why, and who is taking us there.

    If you think the above has nothing whatever to do with the Financial Markets, and you engage in them, then you have either lost a lot of money, are losing money, or are about to.
    Go in peace

  39. Your story is deceiving and thus nonsense.

    All fiats are losing value against gold. Sterling has lost 99+% of its value since 1930s (see the chart at leap2020 dot eu "Towards a knockout victory by gold"). Similarly for all the fiats. They are all in a race to lose value against gold.

    The exponential rate of growth of production, means that humans should have 10 houses each, 100 cars, etc. The PTB is easily able to give Brits a temporary ownership of some plot in Florida, as they stole the other 99% of the productive value of mankind through the fiat.

    And they use the manufactured crisis of debt, to get man to force itself to more socialism.

  40. And lets not forget how that UK empire got its silver back (that it had traded for all the silk and goods from China), by addicting the Chinese to opium manufactured in Afghanistan. The boats would go one way with goods to Europe and then bring drugs back to other way.

    The PTB like to remind us how much better we have it than the medieval kings. That may be true, but it is no where near our potential which is being systemically siphoned from us via the debt money system and the drug trade. You think the UK and USA military is in Middle East only for oil? Drugs.

    And look at UK and USA society, where some significant % of kids are now on presciption medication, many pysche meds. And birthrates are not even sufficient to replace the population absent immigration. They like to tell us lies about global warming, peak oil, and that the productive capacity can not support "go forth and multiply". It is because they are stealing 99% and they want to separate us from our natural capabilities. They want us like dependent cattle, who are fed by a machine and drugged into and out of life.

  41. ".....Your story is deceiving and thus nonsense....."

    There is nothing deceiving in what I wrote. I am a long time student of social history, and not just of my country. I quote only accepted facts as recorded. and from personal experience.

    Britain has been on the gold standard, and off it. It has been through many trials and tribulations of history.

    It endured the very worst of social conditions because it was the first nation to experience the 'ills' of the change from an agrarian society to an Industrial one.

    (however, it is the reasons why this tiny island was 'chosen' that one should seek the answers. Because there lies my real point)

    It is all part of a whole. And the whole is greater than the sum of its parts

    Yes debt has been the most devastating weapon known to man, I have mentioned this many times. But the paradox, and a very strong one is, debt has been, and continues to be the most constructive tool known to man.

    Its a bit like a gun, it can take an innocent life, or bring down your next meal if there is no supermarket on hand. It is how something is used that makes it good or bad. Which is another way of saying it is a person problem.

    I doubt if there is one major business that exists today (or from way in the past) that does not exist without debt, or enjoyed in its start up.

    How many would own, or part own their home, had they not entered into debt?

    Every nation, including China, is in debt. Their only difference is in the size of that debt.

    Debt has been with us for millenniums. The owners of world debt have held that position for most, if not all, of that time.

    It is too late to throw a fit about it now. (I could add, unfortunately)

    The 'creditors' of our world have bottomless purses. Their accumulated wealth is uncountable. Plus they control the world's presses so they can print all the 'fiat' they need.

    If they had no plan, if there was no reason behind it all, except one of pure evil intent to destroy the world (maybe they would if there was another one to run to) then I would be worried, very worried. But then we would not be here, we would have gone - the way of all flesh, long ago.

    Life is one long chain of cause and effect, bringing continuous change. But it is the 'affect' of a effect, which is important to us. That means, " It is not what happens, but how we react to what happens that matters" (Marcus Aurelius)

    Whether the end will justify the means, as they believe, we will not know in our lifetime, unless someone invents a true longevity pill.

    How do I successfully use this 'Knowledge' in the markets(which some of you may believe is a foolish belief) I will explain.

    Most people fail in speculation/investing because they cannot control their emotions. It is your emotions when your money is on, or about to go on, the table that gets you - every time.

    When you do not understand what is happening, and why things happen, that seem unrelated bur affect the market in a negative, to you, way. you become over emotional and screw things up.

    You get upset with your elected government because you believe they are in charge and do things that seem, to you, not in your nations interest. This can make you 'sound off' to your family which creates bad moods.

    Is this the frame of mind conducive to making good judgement in the market?

    I do not have that problem. And that, to me, is worth real money, and, what is more, peace of mind.

    I say you cannot divorce all this from the markets, but you can try, if you must. It's youe money (until they take it off you)

  42. @ Ray Newton

    So what would be your advice to me? As far as financially protecting my family as much as possible for the future. I don't know if you have a family or not but I'm sure you can understand.

    Kiley Kuhl

  43. I not really into arguing about things. I'm a electrical engineer and found if people put there ideas together everyone comes out ahead. Nothing wrong about asking questions and great inventions most of the time never come around by following the herd.

    Kiley Kuhl

  44. Anonymous,

    I know you mean well. All the 'ills' of modern society you mention, and don't mention, are, to me, valid.

    It is the feeling of helplessness which rubs. I know, I have been there and see so many sufferers.

    If it could be changed, it would have been long ago,

    To me, fighting lost causes is a fools game, it is dangerous to wealth and health.

    Please don't engage in nationalistic jibes. These things get out of hand and get no where.

    We cannot change the past, we cannot divert the future, at least that is as I see it, but we can MODIFY it, by making our voice heard, feeble by comparison it may be. After all, we all have to live on the same planet (yet).

    Converting adversity, or crisis, into opportunity can be fun, and test our metal.

    Let me give you an example of why I believe trying to get the mass to see, just one of many.

    I saw a clip on You Tube of a new movie
    from Hollywood. It is an example of the worst of evil that small area of LA
    is pouring into the system as 'enjoyment'.

    There is no point to it except PURE EVIL. but not tongue in cheek stuff.

    Ut is being touted by Hollywood's pimp critics as a must see.

    People could show their contempt for Hollywood's attempt to debase and destroy what good is still left in society, by refusing to put their rear ends on seats. But will they? No way!

    In your heart you know it.

    Good wishes

  45. Kiley,

    First I am very confused with all these
    'Anonymouses' posting. I know, one or two like you add their name. However, why do you head your post with 'Anonymous'

    To answer your question, I would say hold your cash at present. Opportunity big time is coming. Patience is needed now, and do what you are doing - gaining knowedge and weighing all sides. KEEP AN OPEN MIND.

    Ships at one time had to wait patiently for the tide to take them into, or out of port. Timing is the name of the game.

  46. For some reason, this blog changes my words, when I type valve (with 2 letter V), it changes them to value (with 2nd letter U). The reason we reply with "Anonymous" is because when we try to login to our Google account to sign it with that, it causes some kind of error in the posting process. Apparently not all of us experience the same problems or not every time. I will try to remember to sign my posts with "-Shelby", the prior 2 lengthy unsigned Anonymous posts were mine. The other irritating thing about this blog box is I can not copy+paste, so I have to type in this tiny box which doesn't not allow some up or down cursor movements and other idiosyncracies.

    Any way, on to the comment I want to make.

    Ray, although it is true that human nature will always resort to debt, it is in fact NEVER adding to our productivity. Any one with a reasonable understanding of mathematics will be able to prove it. This is why the Bible demands a jubulie (forgiveness of all debt) every 7 years. Kiley, all the engineering was already done and it is all in the Bible, but people think the Bible is about morals, when in fact it is a guide about nature and reality. I suggest you start by reading the outlandish writings (especially the archives) of silverstockreport dot com and even Jason's bibleprophesy dot org. I do not agree with all of his perspectives, but it will give you a good scientific understanding of biblical capitalism.

    If you read Irwin Schiff's Fish Story (the father of well known Peter Schiff), who is in jail for his anti-tax stance, you will learn how capital investment and debt can be similar in effect in terms of return on investment. However, there is a very big difference between the two not accounted for by ROI. Investment means that the person who applies his capital has no guarantee. This is very important because the Bible makes it clear that there is only one guarantee on earth. We are told in 1 Samuel 8 that if we use insurance and seek safety in man's fallacious creations, then we will reach peril. And actually there is a mathematical proof for this. I have written in depth about these matters at my goldwetrust dot up-with dot com. I will try to summarize now to the best of my recollection off the top of my head. I may forget a few key points. In short, almost everything you believe to be true, is wrong. Insurance is wrong, saving in interest bearing account is wrong, trusting government, trusting anyone with your money, dishonest weights and measures, etc.. all are participation in evil.

    Let's get to the math. Human productivity increases about roughly a couple of percent per year, primarily due to technological advances. If the aggregate debt interest rate is greater than that few percent, then it means debt service is increasing exponentially (compounded!) faster than production. This insures that society is transfering its ROI from debtors to savers. On a fiat money system (where all money is debt), this means that savers who save in fiat, are actually giving up this return on investment to the money masters who create the money (debt) out of thin air. Slowly but surely they take everything. I have shown the calculation that on a gold standard in the 1800s, savers retained 33,900% more in 96 years than on fiat standard in 1900s. This is in my "How Deflation Is Inflation" article which is widely published on the web. Just search for it.

    more in next post...


  47. Whereas on a gold standard, the debtors end up giving up everything to the savers, so debt is difficult. Unfortunately because of human nature's desire to use debt and fractional banking, this causes bank runs and depressions which were numerous in 1800s, as the banksters were busy battling the gold standard by giving the masses the debt drug they wanted, and yanking it from time-to-time to cause panic and gradually force the society off the gold standard. Actually Jason Hommel has an error, he claims debt on a gold standard is impossible because the aggregate interest rate compounded would transfer more than all gold every mined away from the people, but he forgets that the people are the savers. The reason the gold standard fails is because the masses are not contented with delayed gratification and they want something for nothing and they want insurance and they want a govt (king) to take care of them (read 1 Samuel 8 at biblegateway dot com).

    Debt also destroys productivity. Actually human productivity may be possible of increasing at much higher rates, but debt misallocates capital. It puts society's capital in the hands of the people who have the least motivation to produce, because for example the saver isn't even paying attention where his capital is being loaned, and the bank will get paid no matter if the borrower defaults or not. The Fed was created to make sure banks can't fail. They just get eaten by the larger banks with the help of the insurance of govt and unlimited creation of money out of thin air.

    Insurance is guaranteeed failure. You can see this for example that 50% of the $1 trillion the unfunded liabilities of the individual States (not counting the $50+ trillion of the federal govt), is medical. Understand that insurance does not make any sense mathematically. The more you pool your money to pay for unintended outcomes, the more market there is to find more unintended outcomes. Socialism (insurance) is a failure. Do you need me to explain this more? If you don't get this point, then you are not even close to moving on the solution.

    In the next post, I will talk about solutions for society and for individuals.


  48. The one argument for debt, is that on gold money standard (or in general for many people with small amount of savings), there is little motivation to employ this capital, because the consistent deflation means the savings is growing in value just by sitting idle. And because without aggregation (by the bank), then it is hard to match small savers to large capital investments. Well this isn't entirely true, because capital investments could be raised via IPOs. And those people who leave their capital idle (even if gaining value in deflation) are losing capital relative to those who employ it, so I really don't see the problem.

    These sort of wisdom was what King Soloman applied and why his kingdom (a real kingdom not imaginary fairy tale) was wealthiest and fastest growth of wealth per capita (relative to technology available then) in history of the world. But the people think they need a good king to guide this result, but actually Jesus said in Matthew 6:5, do not pray in public and in the churches but quietly in secret in your room. Throughout the bible the point is that each individual has to act on his own without a centralized manager and centralized guarantee. Socialism (pooling and centrally managing resources) is a failure. Mathematically this is because as the 1856 law of thermo says (and this does not mean only for closed systems), "the universe is trending to maximum disorder", and disorder in that content means entropy or the maximum division of decisions and labor. It means nature is most efficient when everything in nature is acting autonomously in a free market. I have actually gone beyond this and even proven that infinitely is maximum disorder, etc.. but that will get way too deep. Most scientists don't even realize that we can not measure any thing with 100% surety, because sampling theory (Shannon-Nyquist) tells us that we must take infinite samples in order to reconstruct a signal with 100% surety, because even being "close" means that we could 100% aliasing error. "close" can be entirely opposite of the signal. Any way, that all gets too deep for this blog.

    Let's move on to some practical solutions...

  49. You are interested in protecting your family. Well this is a deep philosophical question.

    Actually Jesus told the rich man, the only way to have lasting peace-of-mind (to enter the gates of heaven) was to give up everything he owned and walk from town-to-town with him. Jesus said else where, "do think God will provide for the birds but not for man?"

    People drive themselves into a frenzy with worry. They worry about things that are not even necessary. Humans can survive (I have done it) on rice and natural root crops that are abundant in warm climates. Humans have the capacity to produce way more food than they can consume. The banksters hate this (because you do not need them), and they will try to destroy your ability to grow your own food. They are constantly attacking the small farmers.

    Actually from such peace-of-mind, when one doesn't need money, it becomes very easy to generate abundance of money. Ray is correct to say that emotions are your enemy when it comes to money, and they is because all of us are whorshipping money. We need it. It is a drug. Our kids can't go to the mall, they can't get their daily fix of material luxuries, etc.. But none of that is necessary, and in fact if you have peace-of-mind, then all of that comes in abundance to you any way.

    So the practical suggestion I am giving you, is walk away from the bankster life. Walk to freedom. I am not saying make a bunker and grow just enough food for yourself. I am saying to simply your life. Produce more than you consume. And put your savings in gold and silver. And try to re-invest your savings with good people who are also willing to produce more than they consume.

    You will be able to identify the good people very easily. They will understand what Jesus wrote and you will see it in their heart.

    It is so easy really. And the bankster hate that. They will try to create war if you become simple and independent. But remember, if we don't enroll our kids in their armies, then they are powerless.

    Walk away from the Great Harlot system. Simple.

  50. One more thing. You can't change the system through politics. When you participate in politics, you are hurting yourself (again read 1 Samuel 8). Walk away from that morass. By walking away from it, you start the sucking sound that destroys that socialism.

    And the software thing I mentioned in passing several posts back, is something I am working on that will help people trade outside of the fiat system. But never mind that as it won't apply to you for a long time still (if I even succeed), you can walk out of the Great Harlot system now. Do not worry, nature will provide for you. Just use common sense.

  51. There is an inconsistency in my writings above. On the one hand, I say to walk away from the "system", yet on the other hand I admit that maximum division of labor is undeniable trend of the universe.

    How can one walk away from the system, if they need to aggregate their expertise and labor with others in order to produce a consumable good?

    Well this is one reason I am working on software to eliminate the centralized control (server-client slave model) over the exchange of information. You see because once people can exchange information with central monitoring and control being impossible, then the experts can simply walk away from the system and the socialism will implode. The banksters debt weapon only works if they can use the masses to force control over all trade.

    So yes in the meantime, it becomes a bit more challenging to trade your expertise outside the system. But you can do it. Just be clever and use all the technology that is out there already.


  52. Thanks for the explanation on the 'Anonymous'. The posting problems I have is that the text will move to the next line sometimes before it has reached the end of a line

    I spent some time at one of the best hallowed halls in the world for Academia's brand of economics - the LSE (London School of Economics).

    I just had to leave as I could not take any more of the drivel that is taught under the guise of Economics.

    It is all pure theory, and everyone has a theory, or their interpretation of a theory.

    However, I learned one valuable lesson - why so many economists get it wrong, and can easily disagree.

    Academic economic theory has little relevance in the real world. Why? Simply because there is no empiricism to the findings - IT CAN BE MANIPULATED, even its basic tenets.

    I agree, much can be learned from the wisdom embedded in the bible, even if one is not religious. You cannot really knock the teachings if one was starting from scrastch with a clean slate in an ideal world. And L use the word ideal in a meanigful way.

    Unfortunately, we do not live in an ideal world, and we cannot start from the beginning with a clean hard disk using the Bible software.

    Mankind had its chance millenniums ago, and flunked it.

    And no one has yet come up with brain transplants.

    I have read many ideas with idealistic solutions, there are some in entertaining novels.

    What we have today is a financial web so intricate and inter twined that, I am convinced those who control it could not unravel it, even if they tried.

    I do not want to go into this too deeply, it is confusing to explain with or without the constraints. And it would be a waste of time.

    Of course there are ills, many of them, to our current system which in its web like intricacies functions even behind all the 'isms' past and present. (Doubt it, anyone? why was Switzerland neutral to all sides during the both wars? While hell raged all around)

    I have spent a lot of time in China, and the area, having worked there. China admitted some time ago, before its success showed, that its system is not their ideal, and that one day it would change when they found one to replace it.But they made it clear that it would not be the American way.

    But I believe this would be more their political system within which the International financial system functions.

    The world's financial system is controlled by the same 'international administration'. It controls all economies. Any variations in the economies of the political systems (the 'isms') have to prosper, or flounder (or fail) according to the dictates pf the financial.
    governing body.

    'Ism's may change, economies change, but the Financial system remains in the same hands - it's a 'family business' that survives the death of a member.

    He who has the (most) gold makes the rules. (no idle cliche)

    Continued below

  53. So I understand what you say, and I won't disparage the idealism. But please tell me how you, or anyone, could radically change the status quo in any way, never mind to one so ideal. That is, given the world as we know it.

    I do not like to refer to religion, especially any particular one, but assuming the New Testament is correct, as I assume a true Christian believes, then 2000 years ago a man was born who believers claim was God's son. According to the accounts therein He saw what was wrong. It incensed Him. He took action and kicked the rascals out of the Temple. Two weeks later, He was executed by the method of the day.

    Is there not a lesson there?

    As for Solomon well, it was his Temple, in that he had it built. And he figures as a symbol in the secret rights of one or two, at least, of the societies with which the Financial Elite are associated in their 'claimed' historical roots.

    It's a very tangled web indeed. And I would not attempt to waste time and effort trying to unravel it. To me, the best approach left is to accept what is, and by effort as it continues, attempt to modify some of the extremes. To be honest, I do not see that as a probability, but only a possibility.

    Understanding, and acceptance allows us to adapt, and prosper by individual effort within the system, whatever.

    Of course, that is just the way I see it. All are entitled to their view

    C'est la Vie

  54. Ray, I agree with most of that. Very lucid.

    I don't care what the cattle do. There will be always be cattle, the key is do we let their system control our individual lives.

    Individually we can change it for ourselves very quickly. It is not impossible for any human being to locate a plot of land and become nearly self-sufficient. Most everything you don't need, even electricity. Colder climates are more challenging.

    But once you go down that thought process, one often realizes they can do even better staying within their own core expertise, but using technology and cleverness to structure their life such that they are drastically out producing more than they consume. Avoid all debt, save in gold and silver, and keep on out-producing. For each person their problem is solved.

    And if even 1% of the people did that, the current tangled financial web will implode. But I don't care if 1% do or not. I need to focus only on my life.

    The problem is that we are always taking their drug. We are always looking for an advantage. We want to take a 2nd on our house, then buy gamble on gold. We buy on margin. We want to short and get rich quick, etc...

    We do to ourselves every time.

    One consistent wisdom from the Bible is the ideal is right there inside our room. We don't need to change any one else. It is all inside of ourself.

    So the practical individual advice was/is, to simplify one's life. Find the way of life where you produce more than you consume. Trade with the world. Plant a whole acre (in what ever expertise you do). Use debt never (even if others are temporarily racing past you with it). The tortoise wins the war, not each race.

    With that simple requirement, you will have a peace-of-mind, and you will be on your way to abundance.

    Then you can pretty much ignore the noise.

    As for protecting oneself against govt theft, etc.. There is no way they will find your gold & silver buried under your house or what ever. As long as you tell no one. But gold & silver and a bunker is not the wisdom I am trying to share. I see that as a trap. I am saying that to simplify life, and produce more than consume. If necessary, move. I moved to Philippines, and my rent is $90 per month. It is ridiculous, since I have earned up to $30,000 per month in past software endeavors (currently no income working on new projects). But I have been at both ends of the sprectrum. I was so broke at one time, I was living in a squatter area surviving off rice and beans or root crops. I remember when I didn't have $1 in net worth.

    continued in next post...


  55. Ditto within USA, a vast land, there are rural (even some midwest cities) places where you can live very cheaply. You try to find a situation that fits your expertise and what you will be producing. Last time I was in USA, I stayed at a halfway house and spent $90 per week. I was too cheap to spend $30 per nite for hotel. I met some interesing people also that way. I guess I will remind you that Warren Buffet says his bathtub is his beach front property. He lives in a very simple house in Omaha.

    People say they want to protect their family, but I think it is sometimes it is loaded with a gambling urge and desire to live beyond one's production.

    Others say the family members are inflexible and set in their ways. Well the Bible talks about how a good wife is one who knows how to be realistic and manage things wisely. I don't know what to tell people who have themselves living with a bunch of socialists who won't change. I do know what I would do. I would talk it out, and if they refuse to change, then it would be time to move on.


  56. And if you live in Europe, there are the Baltic states, you can migrate to USA, etc.. I understand Europe is way over priced every where, but that is just what I hear. But for example, there are the vast forests I think in Finland, where one can live for practically nothing. Again I would prefer a warmer climate, but even then I am not saying to become a farmer if that is not your core expertise. I am just saying there are a lot opportunities to put oneself in a situation where they produce more than they consume. I suspect that people just don't want to take on any changes in their individual life. I think individually we fear what Jesus said, which is to walk naked with him from town-to-town and depend on the generosity of strangers. So we then fear all change. Do not fear change! Relish finding the best opportunities. It makes life interesting.

  57. Do not fear losing it all, on your quest to finding your peace-of-mind. Fear is our weakness. Money is not important. What is important is to produce more than you consume and trade with the world. Nothing in this life permanent. We can't "own" security. The bible is clear, God owns all the land and all the money, we are only stewards. Read the story of the talents. It is what we do with our individual capital that defines whether we will have lasting and increasing talents.

    A house divided can not stand.

    It is all about having a simple life of producing more than more consumes and not letting the capital you have sit idle or be used for useless things (like gambling).


  58. I do not want to save my money in an interest bearing account, because it means I will be creating debtors, or exactly what I am trying to prevent by buying physical gold and silver. There is no way anyone can guarantee a fixed interest rate and not force that fixed rate on a debtor. I would prefer to invest my capital at risk. This is the wisdom of the bible, and the opposite is the evil of debt slavery.