It takes a Ponzi to know a Ponzi...have a read and see how fraud flourished

http://nymag.com/news/features/berniemadoff-2011-3/

The Madoff TapesBy Steve Fishman
...
...The SEC,” he says, “looks terrible in this thing.” And he doesn’t see himself as the only guilty party on Wall Street. “It’s unbelievable, Goldman … no one has any criminal convictions. The whole new regulatory reform is a joke. The whole government is a Ponzi scheme.”

If this was a 3rd world country we would be laughing -

How do you like your toast?...Golden!

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/2/26_Jim_Rickards.html

Mr Rickards always puts a well thought argument together...listen to his thoughts about a global currency (liquidity) via SDR’s (special drawing rights). Note, how countries are coming up with arrangements to settle trade outside of the USD and put 2 and 2 together.

The USD is toast...(all currencies are) - the transition to the “new world” will not be orderly!

The Australian Government - a beacon of knowledge

http://www.theaustralian.com.au/national-affairs/climate/julia-gillard-fends-off-accusations-she-has-broken-a-promise-on-a-climate-tax/story-e6frg6xf-1226011792834

JULIA Gillard has braved hostile interviews with two of Australia's toughest radio hosts, confronting head-on accusations she broke an election-eve promise not to introduce a carbon tax.

Mining tax, Carbon tax, Fat tax, … these guys are looking after us! All hail our insightful leaders!!

Oil price...UP UP and AWAY!

The devaluation of currency (a result of the inflation) continues. Our purchasing power declines but those in the third world (with a higher share of income going towards food and energy) are feeling it more. Thus the middle east undergoes a potentially transforming event. A region where the US held some power, may see that power/control decline. Implications?

Lock in higher oil prices. Higher gold prices also!

How does this happen?

 Taxes (theft) by government leads to this...

In New York City, the No. 2 guy in the fire department retired on a pension worth $242,000 a year. In New York State, a single official holding two jobs and one pension took in $641,000. A lieutenant with the Port Authority police retired with an annual pension of $196,767, and 738 of the city's teachers, principals and such have pensions worth more than $100,000 a year. Their former employer, it goes almost without saying, is steamed. Their former employer is me. 



Source: http://www.washingtonpost.com/wp-dyn/content/article/2011/02/21/AR2011022103775.html

The Central Bankers are now on board...one by one they all will be

Fed's Hoenig: Big banks too risky, rates too low

"You shouldn't tell the market that you will have very low interest rates for an extended period of time because it invites speculation," he said. The Fed has said it expects to keep overnight borrowing costs, which are close to zero, "exceptionally low ... for an extended period."

hmmm...you shouldn't, but we have...but we shouldn't have...

source: http://www.reuters.com/article/2011/02/23/us-usa-fed-hoenig-idUSTRE71M4T020110223?pageNumber=2

Tonights comments from Mr Jim Sinclair (Mr Gold)...Gold at $1,412 (USD)

Gold is strong against a weak cyclical background which assures you that as the cycle changes an explosion in price will definitely occur.
$1650 is in the bag.
Respectfully,
Jim

http://www.jsmineset.com/

America is broke! - Gold knows it!

Greg Hunter knows it! He's telling his citizens. Not everyone is going to like what they hear!
Additional debt over the next 2 years is probably around $3TRILLION dollars. The Piper will be paid in one form or another. Gold knows it!

http://usawatchdog.com/national-debt-america-is-broke/#comment-37628

By Greg Hunter’s USAWatchdog.com (Revised)

Saturday, the House of Representatives passed legislation with more than $60 billion of budget cuts.  It is the proverbial “drop in the bucket” when compared to the $14.1 trillion (and counting) outstanding federal debt.  Soon, this ever increasing national debt will eclipse the Gross Domestic Product (GDP.)   That means America will owe more than all the goods and services it produces in one year.  When you owe more than you make, isn’t that a sign you need to change course?  The new Speaker of the House, John Boehner, said this just after the budget cut vote, “We will not stop here in our efforts to cut spending, not when we’re broke and Washington’s spending binge is making it harder to create jobs.” I think it is ironic Congress wants to cut $60 billion today and then turn around and consider raising the debt ceiling $1 trillion tomorrow.  This is crazy, but that is exactly what’s going to happen because if we don’t, Treasury Secretary Tim Geithner says it could cause, “catastrophic damage to the economy.”

When you measure things in a constant currency...the true nature is revealed

There are various possible targets for the Dow/Gold ratio - a trend which shows the true nature of the GREAT EQUITY bear market - anything under 5 is a guess for me and really a function of government and bureaucrat stupidity




source: http://marketthoughtsandanalysis.blogspot.com/2010/05/update-on-dowgold-ratio-and-few-more.html

one more rally while the USD heads south...on the way to a long bear market

USD hangs on...a close below 76.80 and the gold party goes techno!

Sometimes the brutal is a lot clearer - Over to you Karl!

Bernanke, You Stupid Bastard

Karl Denninger
Market Ticker
Feb 22, 2011

Yes, you.
And Trichet, and the rest of the Central Bank fools.
But especially you, Bernanke.

http://www.321gold.com/editorials/denninger/denninger022211.html

An article worthy of your attention!

"And the great owners, who must lose their land in an upheaval, the great owners with access to history, with eyes to read history and to know the great fact: when property accumulates in too few hands it is taken away. And that companion fact: when a majority of the people are hungry and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed." - John Steinbeck - Grapes of Wrath

http://www.marketoracle.co.uk/Article26299.html

The turmoil in the middle east has more to do with this than "democracy"!

Dear Friends,

The “greek debt crisis” which morphed into the European Debt Crisis gave us an insight as to what is to come in the next 3 to 5 years.

The world is awash with massive and excessive fiscal and monetary imbalances. The piper will be paid and the stresses will eventually play out across all countries. Currency turbulence, I suspect will be more pronounced.

The market wills (in the end) impose discipline on politicians and bureaucrats (i.e. Central Bankers). Do not make the mistake of assuming this is your “run of the mill” crisis. The explosion of derivatives and leverage within the system has created a much more fragile (Yes Alan, nothing was dispersed) system.

Markets and economies are dynamic. They will adjust to the new reality. The question is where will the opportunities arise? To understand the problem is to understand how to position yourself. If you think you can just “buy the market” and all is good from here, you are making a big mistake. Be much more discerning (as you should always be).

It is no co-incidence that GOLD is making all time highs during this period. The average investor still laughs when you raise the topic - oh, you are one of those guys?

Ask the question, who do you think has been buying the gold to raise the price from $260/oz(USD) 10 years ago, to the price is it today? Not joe average! Only those with serious money. Phase 2 of gold has commenced, where the legendary fund managers buy it (not gold-bugs). They can see what is coming.

The children of the bull market (ie 1980s onwards) are missing the full picture.

The system (mainly in the west) needs to be cleaned out. The only solution available to the officials is inflation! The ONLY palatable one. Debt destruction through re-structuring is not considered feasible by the politicoans and bureaucrats.

Thematically, it makes sense to own some or all of the following:

-        Gold & Precious metal shares

-        Agri-commodities

-        Energy

-        Companies with clean balance sheets and quality dividends

-        For Australian Investors quality global companies

Silver explodes to the upside

Silver traded as high as $34USD on late Monday Aus time. Tonight, (Tuesday) it's coming off a fair bit -down over a $1.50.

I don't know much about the expectations of silver other than the likes of Eric Sprott have much higher expected prices (over $50USD). Who's buying silver? Rumours are circulating about a short squeeze and James Turk has been highlighting the recent backwardation. Something is up!

Introduction

Hopefully this will be the start of regular blogging. I have buggered this up in the past. Let's see how I go! Good luck to all.