Thoughts on Markets

Wednesday, November 09, 2011

Judgment Day Will Come! - Silver Wheaton - IAMGOLD - Dollar Up - Metals Down - Taxation of Corporations? -

We must always remember that we cannot trust governments which are run by men who are ignorant of the Law-Word of God or fail to apply it to all of their service in government. Men are forever changing while the law of God is forever the same. 

When people, families, churches, or governments ignore the law of God contained in both the Old and New Testaments, the result is chaos. So called "New Testament Churches" often ignore the application of God's law as passe except for the Ten Commandments. It is very difficult to apply God's law without the insight of the Old Testament examples of civil laws and corresponding punishments for violations. We cannot please God without having Godly law for civil governments as contained in the Old Testament. Much of common law and even the aborted laws of today reflect these in principle. 

King Jesus rules and is through His body, the church of today, is taking dominion until all the nations are under His foot. Then He will deliver them to the Father and we shall all appear before the Great White Throne of judgment. We must praise Him daily for reconciling His people with the Father before the final day. Rejoice in the Lord always, and again, as Paul wrote, rejoice!

Town Hall:

Ignorance Exploited
Walter E. Williams
Virginia has a car tax. Does the car pay the tax? In most political jurisdictions, there's a property tax. Does property pay the tax? You say: "Williams, that's lunacy. Neither a car nor property pays taxes. Only flesh-and-blood people pay taxes!" What about a corporation? As it turns out, a corporation is an artificial creation of the legal system and, as such, a legal fiction. A corporation is not a person and therefore cannot pay taxes. When tax is levied on a corporation, who pays it? HERE.

Kit Co News:
Jim Wyckoff A.M. Kitco Metals Roundup: Comex Gold Sees Modest Selling Pressure As EU Debt Crisis Escalates
09 November 2011, 8:00 a.m.
By Jim Wyckoff
Of Kitco News
Comex December gold futures prices are modestly lower in early U.S. trading Wednesday. It’s a “risk-off” day in the market place so far Wednesday as European and U.S. stock markets have sold off sharply amid an escalation in the European Union sovereign debt crisis. Despite being a safe-haven asset, the gold market is succumbing to the selling pressure seen across the commodity market spectrum so far Wednesday. Some profit-taking pressure from recent solid price gains is also occurring in the precious yellow metal. December gold last traded down $6.00 at $1,793.20 an ounce. Spot gold last traded up $7.00 an ounce at $1,792.50. December Comex silver last traded down $0.378 at $34.775 an ounce. HERE.


UPDATE 1-Silver Wheaton Q3 profit jumps; raises dividend
Silver Wheaton Corp reported a 96 percent jump in third-quarter profit, driven by strong silver prices, and the company tripled its dividend for the current quarter.
The company has linked dividend payments to operating cash flows in the prior quarter and will now pay a dividend of 9 cents per share in the fourth quarter. Another of my core holdings among silver miners. HERE.

Mine Web:  

Have gold stocks really underperformed bullion?
Major and mid-tier gold stocks have mostly kept up reasonably well with the rising gold price over the past three years, but the market wants more, so will this come about with the big earnings increases now being achieved. HERE.

Gold falls on strong dollar, Italy debt fears mount
Gold fell from Tuesday's high of $1,802.60, its strongest since late September, on Wednesday as the dollar strengthened and doubts about Italy's ability to tackle its debt problems persisted. HERE.
Gold to average $2025 an ounce during very volatile 2012 - HSBC
HSBC analyst, James Steel says the group expects the yellow metal to trade between $1,700 and $2,300 next year as safe haven buying returns and the risk on, risk off scenario continues. This is certainly quite possible. I still look for gold to be about 2000 by year end. However, it continues to struggle against intervention and profit taking, so it could miss my expectation. HERE.

IAMGOLD reports 182% in 3Q11 adjusted net earnings
IAMGOLD announced that its adjusted net earnings for the first nine months of this year increased 186% as 3Q11 adjusted net earnings rose 182%. Another core holding. HERE.

Miners from Scottrade:

Currencies from Kit Co:
Metals Prices: Gold up 1.20 to 1786.30 and Silver down 0.44 to 34.46. Silver is beginning to see more retail buying of the metal. It is the "poor man's gold." Can it be that some of the masses are seeing the light? Gold demand remains strong, too.

Best to each, Doug

Tuesday, November 08, 2011

Are immunizatons dangerous? - Look to the true Messiah, not the fake messiah of states & banks -DOW & Metals Down a Bit - Miners Holding in a Narrow Range - West Discussing Selling Gold - China Buying Gold


There is a lot of news from Europe and the Greek and Italian fiascoes. This has impacted the price of gold as many investors are beginning to see that gold and silver are the true safe havens. Why they generally run to the dollar and treasuries is a puzzle except for the fact that these are quite liquid and the world have become accustomed to the dollar. However, would they, as is beginning, to look behind the curtain to see the "Wizard of Oz" pulling the levers at the Federal Reserve, they would be searching for true value and not just what they have done for decades since WWII.

We must remember that true security only rests with King Jesus. The state and banks are fake messiahs. They are governed by men, all of whom are damaged by sin. Our Sovereign God has all truth, all wisdom, all creativity, all power, all knowledge, and is all in all. The great I Am wrote the entire bible to reveal the Triune God to the world and to point men to the only true Messiah: Jesus Christ the Son of God. It also is a complete operating manual for all men. There is no way to please our Lord and Savior except by the way He desires as written in the bible. Prayerfully study it daily after seeking the Holy Spirit's guidance. Then be a doer, not just a reader/hearer of the Law-Word of God. Praise our Triune God daily and give thanks in everything you have or do. He provides all that we have and are. 

He also provides peace and hope to His people as we learn to trust and rest in Him amidst the storms of life. Bless His holy name and be grateful in everything at every time.

Town Hall:
Numbers Games
Thomas Sowell
One of the things that has struck me, when I have gone on luxury cruise ships, is that most of the passengers look like they are older than the captain -- and luxury cruise ships don't have juveniles as captains.
The reason for the elderly clientele is fairly simple: Most people don't reach the point when they can afford to travel on luxury cruise ships until they have worked their way up the income ladder over a long period of years.
The relationship between age and income is not hard to understand. It usually takes years to acquire the skills and experience that high-paying jobs require, or to build up a clientele for those in business or the professions.
But those in the media and in politics who are currently up in arms, denouncing income inequalities, seldom mention age as a factor in those inequalities. This reminds me of the approach of the communist. Their plan has always been to create unrest and set people against each other. The same is going on with much of the sit ins around the world and in America today.  HERE.

The Venom in Feds' Vaccinations
Chuck Norris
While most mainstream news media cover presidential campaigns or economic conditions, the feds are going under the radar and your skin -- literally -- with something that could be detrimental to your and your children's health. News just broke about their cover-up, but few, if any, agencies passed along the wire.
According to the Centers for Disease Control and Prevention, 1 in 110 children have autism spectrum disorders, which is strikingly more than just two decades ago. (ASDs are a group of developmental disabilities that can cause communication, behavioral and social challenges.) The National Autism Association calls the 644 percent increase of ASDs among U.S. children since the early 1990s "a tragic epidemic of autism."
Many attribute the increase in the rate of ASDs to children's being exposed to significant quantities of thimerosal, a mercury-based compound that has been used since the 1930s as a preservative in certain vaccines and pharmaceutical products to prevent bacterial and fungal contamination. A freedom of great value is to be able to decide about individual health care. Obamacare has and will remove many choices from the people and result in a major loss in God-given freedom. Dr. Eva Snead wrote a great deal about the dangers of mass inoculations. Read the article HERE

Poltics of Personal Destruction II
Cal Thomas
In 2007 when she was running for president, Hillary Rodham Clinton told a fundraising event in Carson City, Nev., "I sure don't want Democrats, or the supporters of Democrats, to be engaging in the politics of personal destruction. I think we should stay focused on what we're going to do for America."
Clinton's husband, the former president, used the phrase at the time of his impeachment proceedings for lying under oath about a sexual dalliance in the White House.
The politics of personal destruction is nothing new. It has been around from the beginning of the country when worse things were said about presidents and presidential candidates than have been alleged against Herman Cain. HERE.

It Can't Happen Here!
Pat Buchanan
 Friday, thousands in Moscow, giving Nazi salutes and carrying placards declaring, "Russia for the Russians!" marched through the city shouting racial slurs against peoples from the Caucasus.
In Nigeria, Boko Haram, which is Hausa for "Western education is sacrilege," massacred 63 people in a terror campaign to bring about sharia law. Seven churches were bombed.
Sunday, The New York Times reported that Uzbeks in Kyrgyzstan are suffering "horrific abuse" following last year's pogrom.
Ethnic nationalism, what Albert Einstein dismissed as "the measles of mankind," and religious fanaticism are making headlines and history.
Welcome to the new world disorder.
What has this to do with us? Perhaps little, perhaps everything. HERE.

Mine Web:

The more gold the West sells the more China is buying
China is buying gold as part of a long term strategy to position itself ultimately as the global currency of choice and to the benefit of its citizens who it has encouraged to buy precious metals. The Chinese seem to use more intelligence than the West. They must be looking ahead to the demise of unbacked paper currencies. On the other hand, the West seems determined to perpetuate the fraud of paper currencies to protect their monopoly on "money." HERE.

Gold headed for near six week highs, Italy debt fears weigh
Gold remained firm on Tuesday and headed for near six week highs, with investors holding onto the safe haven asset due to fears that the euro zone debt crisis might engulf Italy. Gold is the way to preserve wealth amidst the flood of paper "money." Virtually all nations are facing a high level of debt with the U.S. way ahead of the rest of the world. Thus, gold is bound to be headed much higher as a true safe haven. HERE.

The big debate: gold equities or bullion?
Many investors are struggling to decide whether gold bullion or equities provide the best route through which to navigate the current global financial storm, for Julian Phillips, the answer isn't a simple one. In my opinion it is a decision based upon the purpose of the holding. Bullion, and I would include both gold and silver, is for preserving wealth. The mining equities are for the final blow off in metal prices when they have in the past well outdistance the price of metals. My first priority is to hold the metals and then look to the miners. HERE.

Gold, a Hedge Against the Financial Predators
For David Levenstein, the yellow metal is the only protection one can get against the chaos and corruption that is running rampant in the global financial system. HERE.

Kit Co News:
Jim Wyckoff A.M. Kitco Metals Roundup: Comex Gold Trades Near Steady; Fresh News Regarding EU Debt Crisis Awaited
08 November 2011, 8:23 p.m.
By Jim Wyckoff
Of Kitco News
Comex December gold futures prices are trading near steady in early U.S. trading Tuesday. The market is pausing as traders await fresh developments from the ongoing European Union sovereign debt crisis. The precious yellow metal is flirting with psychological resistance at the $1,800.00 level. December gold last traded up $1.00 at $1,792.10 an ounce. Spot gold last traded down $5.10 an ounce at $1,791.00. December Comex silver last traded down $0.023 at $34.805 an ounce. HERE.


Credit Suisse asked to hand over U.S. client data
Credit Suisse will hand over details of wealthy Americans with hidden Swiss accounts to the Swiss government, bringing U.S. authorities one step closer to obtaining names of alleged tax cheats. Big Brother reaches out well beyond his borders to limit freedom of citizens. Tax cheats is an alleged excuse. More control is the true aim. HERE.

Miners from Scottrade:
Currencies from Kit Co:

Spot Metal Prices: Gold down 6.90 to 788.70 and Silver down 0.29 to 34.69 (Must have been capped a bit?)

Best to each, Doug

Monday, November 07, 2011

Greek - Italy - France - Gold, Silver, and Miners Sprinting - Fortuna Good News.

Isn't it amazing that the news about the financial fiasco that we are facing in America is given little attention while the focus is on Europe >> the PIIGS. Greece is moving toward a "solution," and now we are exposed to Italy and France taking center. Folks, there "is trouble right here in River City." (Remember Music Man?) 

Ours is much worse than almost the rest of the world put together. We have an obscene individual, business, and national debt which continues to grow. We have a Congress and White House on the greatest spending binge ever seen for the 4-7,000 years since the world's creation by our Sovereign God. There seems to be no end in sight for either the end of the debt or a slowing in the spending. Our unemployment is very high and is having a severe impact upon any hope of recovery.

Nevertheless, Europe takes center place in the news and receives the criticism, because they do not put more fuel (debt) on the fire created by debt. Who really believes that more of the cause will solve the debt problem? Of course, the heart of the matter is the unbacked paper currencies of the world and the fractional banking system which so easily creates "new money" at will.


Papandreou’s Gamble on Greek Democracy Sours as Vote Plan Leads to Ouster
George Papandreou took a gamble on the most ancient of Greek traditions: democracy. Unlike his past success in extracting European bailout packages that avoided default, this idea helped lead to his departure.
During his two years in office, Athens became the nucleus of the European debt crisis and the Greek prime minister was its public face. While his legacy may be that of a man who tried to save the euro, he leaves his country struggling to maintain the needed flow of foreign aid. Now the interest is turning to Italy. At least, Italy is turning more into the news item. The Greek situation will still have to play out. HERE.

Berlusconi Struggles to Keep Power Before Key Votes
Prime Minister Silvio Berlusconi struggled to hold on to power and prove he can implement austerity measures pledged to European Union allies as reports of his imminent resignation sent Italian stocks surging.
News agency Ansa said Berlusconi denied a report by Giuliano Ferrara, his former spokesman and editor of newspaper Il Foglio, who wrote today that the premier would step down “within hours.” Berlusconi will likely resign next week in return for support in a vote on the austerity and economic- growth measures, Ferrara said in a phone interview after his initial report.Update on Italy. HERE.

France Unveils $9.6 Billion in Taxes, Spending Cuts to Defend AAA Rating
France unveiled tax increases and spending cuts amounting to 7 billion euros ($9.6 billion) for next year to defend its triple-A rating as growth slows and Europe’s debt crisis deepens.
The country will increase some levies on large companies, push up the lower end of its range of value-added taxes and curb welfare spending, Prime Minister Francois Fillon said today. And France, too. HERE.


Gold up as euro debt crisis intensifies
Gold climbed more than 1% on Monday as investors piled into the traditional safe haven asset as Europe's debt crisis intensified on worries about political instability in Italy and Greece. HERE.

30% year on year price growth for gold as economic instability continues
The latest economic news out of the Eurozone is hardly conducive to light at the end of the global economic imbroglio and thus gold and silver would seem likely to continue a steady upwards path overall. HERE.

KitCo News:

Technical Trading: The Week Ahead - Gold Bulls Charge Out of Starting Gates

07 November 2011, 10:37 a.m.
Mon Nov 7—The bulls charged out of the starting gates Monday morning and propelled Comex December gold futures to their highest level since September 22. The near term technical pattern has turned solidly bullish and momentum is trending higher, which is supporting healthy gains in early Monday action.
After spending much of October in a sideways consolidative pattern, gold bulls seized control of the near-term trend on October 25 and the market has been climbing higher in a new pattern of higher highs and higher lows. Daily momentum tools including the relative strength index (RSI) and the slow stochastics indicator are pointing higher in a bullish position. HERE.


A ‘sweet little deposit' in Mexico drives Fortuna Silver's growth
Production is on the up for Fortuna Silver Mines with a second mine in operation now; and with near term plans for expansion Fortuna Silver eyes doubling silver output. A nice report on one of my core holdings. HERE.

Silver is up, too, but not faring as well as gold. It may have received some more intervention, but the demand remains high. As usual, the apparent intervention is in the paper futures markets for the metals and not in the physical spot metal markets. 

Massive increases in Q3 gold miner profits but no re-rating yet
As gold companies continue to announce strong results from this round of quarterly earnings, dividends continue to be a hot button topic for analysts. HERE:

Miners from Scottrade:

Currencies from KitCo:
Metal Prices: Gold up 28.30 to 1782.30 and Silver up 0.55 to 34.68.

Best to each, Doug

Friday, November 04, 2011

Iran and Nuclear Weapons - SLW - Gold vs Silver - Miners Holding Well - Your trust is well placed in the Law of God, rather than the ever changing law of men

King Jesus is confusing our markets as a judgment against us. The volatility is from more than just the Greek fiasco. The bucket of currencies is being stirred for more than can be observed from the latest news.

See particularly the video from Gold Money, below. Gerald Celente has a good bit of insight into problems of the world today. Of course, he does not attribute them to our Sovereign God, but you should find it of great value. He clearly tells us we cannot trust government by men.

Governments which are run by men without the benefit of God's Law lead to chaos in every nation. Men are always changing based upon whims or reactions to events. Thus, they are without consistency. Of course, consistently bad could be considered consistent. However, we should much prefer the unchangeable Law-Word of God. Scripture reports that God is "the same yesterday, today, and forever." That we can rest assured of His perfect consistency.

The Telegraph:

Iran: the damning nuclear evidence 
Iran is attempting to engineer and test nuclear weapons at a series of banned production sites in defiance of United Nations sanctions, according to a report to be released next week. HERE.

The Daily Mail: 

UK and U.S. 'draw up joint plan to attack Iran': Evidence of nuclear programme raises tension in Middle East
The UK and U.S. are drawing up plans to attack Iran amid growing tensions in the Middle East, it was claimed last night.
Barack Obama and David Cameron are preparing for war after reports that Iran now has enough enriched uranium for four nuclear weapons. HERE.

Gold Money:

Gerald Celente talks to Alasdair Macleod
Watch and listen to the video on HERE.

King World News:

Eveillard - Good Reasons Not to Trust Governments Today 
With gold and silver trading strong, today King World News interviewed legendary value investor Jean Marie Eveillard, who oversees $50 billion at First Eagle Funds.  When asked about his thoughts on where we are today, Eveillard stated, “I think the long-term secular case for gold is still in place.  Some people say after an eleven or twelve year bull market, aren’t we in a bubble?  There is nothing to say that after twelve years the bull market is over.  Look at the bull market in Treasury notes and bonds, it’s thirty years old.  So there is no particular length of time that implies that a bull market or bear market is over.” 
When asked about the continued money printing, Eveillard replied, “To a large extent it makes the case for gold as a substitute currency because all currencies have become suspect.  The Americans are printing, the European Central Bank also has been printing and the Swiss National Bank has been printing by trying to fix the Swiss franc to the euro.  Japan may print money. HERE.

Uncommon Wisdom: 

Don’t Be Afraid to Invest in Silver
Rudy Martin | November 4, 2011 
Listen to the Pod Cast HERE.

King World News:

Robin Griffiths - Silver is a Ten or Twenty Bagger From Here 
With gold and silver and mining shares rallying strongly, today King World News interviewed one of the top strategists in the world, Robin Griffiths of Cazenove out of London.  Cazenove Capital is the appointed stockbroker to Her Majesty The Queen.  When asked about the recent strength in gold Griffiths responded, “The ‘Indian Festival of Lights’ and wedding season have contributed to this rally in gold.  The other issue right now is the referendum in Greece.  Is this just another way of defaulting and leaving the euro or not?  Regardless of how this all pans out there is going to be more paper money around and gold hedges that.HERE.

Miners from Scottrade: These are holding very well even as the metals are more volatile.
Currencies from KitCo:
Metal Prices: Gold down 9.40 to 1755 and Silver down 0.32 to 34.16.

Best to each, Doug


Thursday, November 03, 2011

Silver Lagging Gold a bit - Gold Strong - Miners Up - Dollar Down - Rare Earths Becoming More Challeging as China gobbles them up

Historically back to creation by our God, the world has seen gold and silver as valuable. It has been used as real money since the need for a medium of exchange began to replace the barter economy. Our biblical patriarchs used gold and silver by weight and then as coins of fixed weight of the metals for all commerce. 

While the war on gold still continues, more investors are beginning to see these precious metals as a store of wealth in place of the unbacked paper frauds we today call "money." More folks are beginning to climb on. Hence, the demand pushes the prices back up after each round of profit taking or capping. 

Comparing gold and silver, we find that silver is again lagging behind gold. Therefore, I believe that silver will catch up with gold in the not too distant future. Perhaps, by year end. 

We must always remember that true security rests with King Jesus for His people. We cannot depend upon our wealth, strength, health, or any other resource to provide total security. Even though we do all we can using our resources and strength, nothing except the saving work of Jesus Christ on the cross and the power of the Holy Spirit can provide eternal security. Praise the Triune God for His providential care.

Seeking Alpha: 

VIX ETFs Come Back To Life
 Exchange traded funds that track CBOE Volatility Index futures have rallied this week on renewed fears of a disorderly Greek default.
The VIX shot higher by 16% on Tuesday as markets were surprised by Greece’s leader calling for a referendum on the latest bailout. The move raises uncertainty over whether the financially troubled country will remain in the European Union.
Wall Street’s “fear index” has spiked after falling below 25, “generally considered the dividing line between a worried market and a not-so-worried market,” reports’s MarketBeat. HERE.


One Man's Mission: Building the World's Safest Bank
One Canadian entrepreneur may well be forging an innovative path to changing the global banking landscape - for the better. And in the process he may build the world's safest bank.

Eric Sprott, the billionaire resource investment guru, is buying 51% of Ontario currency trader Continental Currency Exchange Corp., with the aim of making it into a financial institution that, refreshingly, will not make loans.

That's not a misprint. This is an interesting endeavor. Read it HERE.


Anonymous vs. Zetas Amid Mexico's Cartel Violence
The online activist collective Anonymous posted a message on the Internet on Oct. 31 saying it would continue its campaign against Mexican criminal cartels and their government supporters despite the risks.
The message urged inexperienced activists, who might not be practicing proper online security measures, to abstain from participating. It also urged individuals associated with Anonymous in Mexico not to conduct physical pamphlet drops, participate in protests, wear or purchase Guy Fawkes masks, or use Guy Fawkes imagery in their Internet or physical-world activities. Guy Fawkes was a British Roman Catholic conspirator involved in a plot to bomb the British Parliament on Nov. 5, 1605. The British celebrate the plot’s failure as Guy Fawkes Day each Nov. 5. In modern times, the day has come to have special meaning for anarchists. Since 2006, the style of the Guy Fawkes mask used in the movie “V for Vendetta” has become something of an anarchist icon in the United Kingdom and elsewhere. HERE.


Global manufacturing PMI tanks!
Posted by Prieur du Plessis under Economy This is a world wide recap of the statistics. I listened to get the jest. There are several other articles of interest for your viewing. The Pod Cast is HERE


The questions resource investors should be asking - Michael Berry
Dr. Michael Berry looks at the impact of the EU crisis on the gold market and the types of questions that investors should ask before making decisions. A Gold Report Interview. HERE.

Town Hall:
Cal  Thomas
Cal Thomas
Herman Cain's Gauntlet

When it comes to sex, the media apply different standards to Republicans and Democrats. This is a recap of past escapades and points to the different standards. HERE.

 What's Wrong with 'Tolerance'?
Robert MorrisonRobert Morrison

First Things journal published an article recently titled “The Islamic Case for Religious Liberty.” It was written by a Muslim scholar from the University of Melbourne in Australia. Abdullah Saeed’s article is an eloquent expression of the need for greater openness within Islam. He concedes that the strong case he makes for religious liberty is not observed in Muslim majority countries today.
Prof. Saeed is right about that. Freedom House, the respected U.S.-based organization that monitors the status of freedom throughout the world, shows only one country in the entire Mideast that is “free.” That tiny sliver of land is called Israel. Not one Muslim majority country in the Mideast or North Africa is listed as free.
We who live in freedom have a right to ask pointed questions about the broad swaths of “not free” regions. Of the 192 nations “represented” in the UN General Assembly, most are not free. If the PLO is given a voting membership in the UN, it will join dozens of other dictatorial regimes whose votes outweigh the free states’ delegates who vote there. Extreme tolerance gives us politically correct multiculturalism, pluralistic religion, non-profiling when searching for terrorists, and other questionable concepts and actions. HERE.

Resource Investor:

Rare Earths, No Easy Substitutes 
Hard Assets Rare Earths Investment Conference 2011 Online Preview   
Published 11/2/2011

Light, strong rare earth elements (REEs) revolutionized the digital era and changed the face of our everyday lives. Even as shortages loom and companies scramble to find low-cost solutions, these critical materials cannot be easily replaced, nor can opportunities in this sector be dismissed. In this special for The Critical Metals Report, Gold Stock Trades Editor Jeb Handwerger calls attention to mainstream media's shortcomings in its REE sector coverage and profiles one company already making headlines. HERE.

Kit Co News:

Jim Wyckoff


03 November 2011, 10:44 a.m.
By Jim Wyckoff
Of Kitco News 
Gold Extends Early Gains on ECB Rate Cut, More Safe-Haven Demand  We should be seeing more movement toward precious metals for this reason >> conservation of wealth in the face of depreciating unbacked paper. HERE

Miners from Scottrade:

Currencies from KitCo:
Metal Prices: Gold up 19.30 to 1756.70 and Silver down 0.14 to 34.13. Both holding well in spite of capping or profit taking.

Best to each, Doug

Wednesday, November 02, 2011

Democracy Discussed - Markets Rebounding - Miners are up quite strongly - Precious Metals climbing ahead


Below are two articles on Democracy. While our founding fathers gave us a republic, it has become a democracy over time as the Constitution was disassembled. Ben Franklin, said when asked what kind of government was founded, "A republic if you can keep it."

The republic form of government is based upon the Scriptural form of church government in which elders are put forth by the session (Apostles in Jerusalem), the ruling body and the people elect them to rule the local churches. Historically, the Presbyterian churches have this form of government. The elders rule on the basis of God's Law as representatives of the people. It is not a democracy.

Democracy is fundamentally a government which rules on the basis of what the majority desires apart from any higher law. Thus, the mobs elect those who will reward them with the greatest benefits. Or more correctly, those who through numerous sound bites promise them the electorate the most. Of course, seldom does and elected official keep his promises to the people once he gets into office. 

De Tocqueville warned against a democracy in which the majority can decide the law and vote to achieve greater benefits for themselves. Through our history,  we should have heeded his warnings after fully obeying Scripture. 

The two articles which follow are written by learned men.


Democracy Versus Mob Rule
Thomas Sowell
 In various cities across the country, mobs of mostly young, mostly incoherent, often noisy and sometimes violent demonstrators are making themselves a major nuisance.
Meanwhile, many in the media are practically gushing over these "protesters," and giving them the free publicity they crave for themselves and their cause -- whatever that is, beyond venting their emotions on television.
Members of the mobs apparently believe that other people, who are working while they are out trashing the streets, should be forced to subsidize their college education -- and apparently the president of the United States thinks so too. HERE.

Democracy Is Impossible
Walter E. Williams
Walter E. Williams After Moammar Gadhafi's downfall as Libya's tyrannical ruler, politicians and "experts" in the U.S. and elsewhere, including French Foreign Minister Alain Juppe, are saying that his death marked the end of 42 years of tyranny and the beginning of democracy in Libya. Sen. Chris Coons, D-Del., said Gadhafi's death represented an opportunity for Libya to make a peaceful and responsible transition to democracy. House Speaker John Boehner, R-Ohio, said, "Now it is time for Libya's Transitional National Council to show the world that it will respect the rights of all Libyans (and) guide the nation to democracy." German Chancellor Angela Merkel said that "Libya must now quickly make further determined steps in the direction of democracy." It's good to see the removal of a tyrant, but if we're going to be realistic, there's little hope for the emergence of what we in the West call a democracy. Let's look at it. HERE.

Mine Web:

The speed of gold's bounce impresses
Gold prices remained steady in morning trade in London despite the ongoing turmoil in Greece and analysts have been impressed with the speed at which gold has returned to the $1,730 level. HERE.

Gold to rally to new record in March - analyst forecasts
According to a new survey of gold analysts, gold is likely to rebound from its biggest monthly plunge since 2008 and reach a new record by March because economic growth is stagnating and Europe continues to struggle. HERE.


Einhorn Bets Gold Mining Companies Will Beat Bullion
Hedge-fund manager David Einhorn is betting that gold-mining companies will outperform bullion, reversing the trend from the past six months.
“A substantial disconnect has developed between the price of gold and the mining companies,” Einhorn said today in a conference call discussing results at Greenlight Capital Re Ltd. (GLRE), the reinsurer where he is chairman. HERE.

King World News:

James Turk - What You Need to Know About Gold Suppression
With central bank intervention in gold becoming widely accepted as reality around the globe, today King World News interviewed James Turk out of Spain to get his take on central bank interference in the gold market.  Turk started by giving a brief lesson on the history of these failed manipulations,Yeah, it’s an important part of monetary history.  It (the London Gold Pool) was established in 1961 by central banks around the world in order to try to make the Bretton Woods system, which had been created near the end of the Second World War in 1944, it was trying to make that system work.” HERE.

Miners from Scottrade:

Some Prices: Gold up 16.90 to 1736.80 and Silver up 0.70 to 34.15. Both are resuming the upward climb.

Best to each, Doug


Tuesday, November 01, 2011

A Time to Arm for Self-Defense - 2 days of DOW Disaster - Currencies Up Against the Dollar - A Cataract Experience - Malinvestment Must Work its Way Before a Recovery


I have had a marvelous experience with cataract surgery. First, the surgery was a piece of cake with no ill effects. The following day, the pirate eye patch was removed and within about 30-40 minutes, my vision in the left eye had remarkably improved. For some eighty years, my left eye was the lazy one, so I used my right eye virtually all the time. The brain is a marvelous creation by our Creator God. Without my consciously doing it, the brain immediately began using the "new" left eye and leaving the right eye to oblivion. The right eye is scheduled to be made new on November 10th., and I am looking forward to that for certain. Colors are brighter and I now have 20/20 vision in the left eye which I have never had before. I praise the Lord daily for another blessing of His providential care. I can now see!

The Federal Reserve, the United States Government, and others are pushing Europe to solve the debt problem of the PIIGS with more debt. Ask yourself, how can increased debt which caused the fiasco in the first place can solve a debt problem. No rational person can believe that is the correct solution. The malinvestment must be allowed to rectify with even great pain before a true and lasting recovery can begin. 
Malinvestment due to easy paper "money" and debt creation must, first, be worked out of the entire world. The malinvestment caused individuals, businesses, and governments to over spend to support the consumerism of the world, and to provide politicians with the opportunity of over spending to gain votes. This must be corrected!

Vision to America:

Sheriff: Time For Citizens To Arm Themselves
The Spartanburg County Sheriff is known for speaking his mind, and at a news conference on Monday, he didn’t hold back his anger and frustration after a woman was attacked in a park over the weekend. HERE.

KitCo News:
Jim Wyckoff P.M. Kitco Metals Roundup: Comex Gold Ends Slightly Lower But Well Off Daily Low On Bargain Hunting
01 November 2011, 2:36 p.m.
By Jim Wyckoff
Of Kitco News
Comex December gold futures ended the U.S. day session modestly lower but nearer the daily high as bargain hunters stepped in to buy the lower price levels seen earlier. Some fresh, bullish European Union news headlines at midday also lifted the precious metals markets and many other markets off their daily lows. December gold last traded down $4.40 at $1,720.80 an ounce. Spot gold last traded up $4.30 an ounce at $1,720.00. December Comex silver last traded down $0.959 at $33.38 an ounce. HERE.

Mine Web:

Greek referendum call hits gold and silver - but for how long?
Greece's decision to hold a referendum on the bailout package created Eurozone uncertainty and raised the dollar with gold and silver falling back as a consequence. All the attention has been diverted to the PIIGS, particularly, to the Greek Fiasco. However, we should recall that the entire world has a financial fiasco situation with the failing paper currency system. How long can governments and their banks hold on to the fraudulent, failed system? HERE.

Gold mining stocks: going sideways with small and microcaps doing well
An analysis of the performance of gold mining stocks vs the gold price shows that those which look to have performed best in the year to date are small and microcap pure gold plays. The miners have been following the general market, but not suffering like the general market on the down side. HERE.

While neither the HUI nor the DOW are showing an severe over sold condition, the HUI seems to be moderating while the DOW continues on its merry way downward.  

Back to Mine Web: 

Royal Canadian Mint's new gold ETRs program challenges gold ETFs
The Royal Canadian Mint is taking the gold ETFs head-on with the introduction of the new Canadian Reserves gold ETR program aimed at eliminating the middleman in direct gold ownership. This could become even better than my preferred CEF. HERE.

Gold could be poised for a big move
The latest move from Greece, which has put the whole Eurozone Greek rescue package in doubt again, could have a dramatic effect on the gold price. I cannot believe that the Greek situation is the cause of all the change in the price of gold or silver. There are other factors in addition to the intervention. The whole world is in with Greece bogged down with overwhelming debt. Perhaps China, Singapore, India, and some other Asians do not have the extreme problem, but they have some of their own in malinvestment. HERE

Eurozone debt ‘resolution' hasn't seen gold and silver plunge. Why not?
You might have thought a ‘resolution' to the Eurozone debt crisis would have caused gold to tumble, the euro to soar, and the dollar to fall - perhaps with the gold price in the dollar steady. So why is the price of gold behaving as it is? Answers?? HERE.

Make sure you hold some gold as Government ‘Ponzi Schemes' escalate
As governments continue to perpetuate the chaos that is already occurring in the currency markets, the advice is make sure you own some gold - the oldest form of sound money. Amen! HERE.

Currencies from KitCo:
Closing Metal Prices: Gold up 4.80 to 1719.90, and Silver down 0.79 to 33.45. Both are holding quite well after the severe capping and/or profit taking over night.

Best to each, Doug