January 22, 2021 

Gold Enters Major Bull Market


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 By bluejay

10/29/2008  5:58PM

Last on gold is $766.30

The following in an eye-opening article concerning China's future and our worsening status in the eyes of the world.

I'm fed up to the ears with old men dreaming up wars for young men to die in.
– George McGovern

Source: antiwar.com
October 28, 2008
A Win-Win Situation for China

by Sascha Matuszak
China currently stands alone in its ability to weather virtually any storm the banking crisis in the U.S. whips up. With almost $2 trillion in foreign currency reserves, China can afford to be unconcerned about an economic decline in the West that spreads throughout the world, hurting dependent and emerging economies from Pakistan to Panama.

China is not completely insulated from the economic crisis – a slowdown in orders from abroad and a credit crunch at home will hurt the Chinese economy like it hasn't been hurt before – but the difference is preparation. China is prepared, socially and economically, for a slowdown. The U.S. is not.

The calls are beginning for China to step forward as a responsible stakeholder and shore up the currencies and liquidity of the Asian economies and help ease the pressure on European banks as well. China, in turn, assures the world that it is "seriously" considering its options and the proposals of near-desperate bankers hoping that China's 20-year economic rise will help defuse the West's 20-year economic decline.

China is now in a position of power that it may have been enjoying for years, but it is now becoming even more apparent. The talk of China taking over the world has always been a "what if" scenario accompanied by calls for social and political reform and sidelong glances at the U.S., still considered by many to be the preeminent power in the world. The next few years will see more and more nations gathering under the umbrella of Chinese solvency and leaving the Coalition of the Willing(ly Misled) behind.

For now, China is taking care of its own through land reform that should give peasants in China the freedom to "lease their land use rights to other individuals or companies, such as big farm contractors, or to exchange them" and send hordes of country folk flocking toward the cities with their loot looking for fortune. This is the latest in a development, started after Deng Xiao Ping took over in 1979, that will bring the peasants of China into the social fold and eventually urbanize the nation.

China hopes to protect its domestic and international interests through increasing the sophistication of its military. In the final frontier, the U.S. is "apoplectic" over the success of a Chinese space program that has now "changed the game" with the recent Shenzhou manned space mission and the addition of a surveillance satellite that passed within 30 mi. of the International Space Station. According to the Richard Fisher in the Asia Times:

"By the middle of the next decade the PLA [People's Liberation Army] will have a robust surveillance satellite network that will allow a many-times daily target tasking on a global level. It will also have the ability to perform 'information operations' by being able to give a range of clients updates on global U.S. military activities multiple times a day."

China might be getting those rushes of adrenaline one gets when victory is nigh and your opponent lies struggling in your dust trail. America's irresponsible, immoral leadership in the White House, on Wall Street, and by extension throughout the world has finally come home to roost with this economic crisis. Now, with the giant of the 20th century down and in trouble, all of the nations in the world that have suffered under America's benevolent hegemony are looking for somewhere to hide.

This is exactly what the Chinese leadership has hoped and prayed for and most likely expected: the return of China to the center of the world.

Supposed allies of the U.S. are looking to China for help in these days of crisis, with Thailand's deputy prime minister, Olarn Chaipravat, who is attending the Asia-Europe Meeting, stating in the Sydney Morning Herald:

''The message of this initiative is for China to consider whether or not China would open up its banking system and allow the strongest currency in the world, which is the Chinese yuan, relative to anybody, to be the rightful and anointed convertible currency of the world."

Pakistan's President Ali Asif Zardari just finished a visit to China in which he declared that he would be ready to "visit every three months" and that Pakistan's economic and security crises are best solved through cooperation with China, not with the U.S.

The whole Asia-Europe Meeting is a sign of times to come. Nobody trusts U.S. leadership anymore, and despite China's list of thuggish buddies (Burma, Sudan, Iran, North Korea, etc.), protest-strangling Great Firewall, and tendency to sell counterfeit and/or tainted goods, world leaders are choosing China. What an incredible statement about the influence and reputation of the U.S.

The bailouts engineered by the central banks of Europe and the U.S. represent the desperation of thieves caught in the act together, not sympathy and goodwill between two staunch allies. The collapse of Wall Street is the last act in the tragedy of America's fall from leadership in the world.

So What?

What we will see is the decisive triumph of the merchants in the low-level battle over what to do with China. Many of the campaigns to halt human rights abuses in China will migrate to the fringe of U.S. policy, if they haven't already, and the tone will ease.

The U.S. will not be able to confront nations with the arrogance of a world leader and the righteous indignation of a moral compass. For many of us, this is a development that has been a long time coming, but for most of America, it will be something very new.

What Americans lack more than anything is a concept of history. It is absolutely natural and normal and desirable for a nation to go through hardship and struggle and eventual transformation. The era of the American Imperium, dependent on historical ignorance and determined action, is over.

What is needed now is a domestic revival and a more nuanced and intelligent approach to international relations. This means talking with people before we bomb them. This means an emphasis on cooperation, not obedience.

China's sound economy and pragmatic, if despotic, leadership make whatever happens in the coming American election into an opportunity to gain political capital or financial assets. It's a win-win either way.
 By bluejay

10/29/2008  11:59AM

Gold $754.00 Up $10.20
Silver $9.83 Up $ 0.64
Gold/XAU Ratio 9.53
Gold/Silver 76.70

Gold is higher today as it has pushed above some recent daily resistance in the $745 area. Gold reached higher into the vicinity of the previous important low spike reached some weeks back at $675 where China was reported to have taken gold from two failing hedge funds. Reaching this level awoke the bear element in the market as the attack dogs were unleashed chasing the buyers and driving the price back down to about $752. Hopefully, the $745 level holds which is now short term support.

We read in the paper that every asset has been effected by margin calls, failing hedge funds and fearful selling but never is it mentioned in the general news that there are entities out there that have agendas for twisting people's minds concerning the banking industry by trashing gold and silver. Sure, it's reported that the public is leary of banks these days but no reports concerning the US Treasury's efforts to depress the precious metals prices.

It's been the belief here that all along that a great transfer of wealth is taking place from the public into the hands of connected people or entities and foreign countries, especially China. One just has to take note of all the shenanigans that have taken place to force all the gold and silver related stocks down to the bottom of the pit.

Unbridled savage attacks of the exploration sector in Canada have left that group devastated with percentage declines of 80% and more common. The naked short sellers have been ravaging shareholder's assets as if they were prey locked in a cage. What has been permitted in Canada says very little of the country's regulators. The regulator's up there run a "so-called" honor system with the naked shorts, they just have to state that they have intentions to deliver sold stock and THAT IS IT. One would have a difficult time proving that the regulators weren't crooks themselves.

In this country the SEC has allowed the gold stocks to be pummeled unmercifully by naked short selling, effecting lower prices without delivering any shares. Not many in Washington care to admit this. The gold and the gold stock shelling is working on the minds of the public and is putting money into the pockets of thiefs.

The trading norm of the relationship of the XAU Gold & Silver Index to gold was, with a few minor exceptions, 3 to about 6. Each time the Index reached the neighborhood of 6 the gold stocks were a buy and when they returned to the 3 to 1 ratio with gold it was time to sell them for followers of this intermediate to long term trading approach.

Last week the Index hit 11.50. Where did this come from? It's all the naked shorts looking for more and more of the investor's blood. Hello, Mr. Cox are you there? Cox is the head of the SEC and is the worst do-nothing Chairman of all-time.

Jim Rogers has said other guys in government along with their handlers, the banks, have messed up the system far more than the average person comprehends. Like Jim Sinclair says, no one wants to talk of OTC derivatives. They are all sucking the system dry in their final attempt to make off with all the silverware before their day comes to an end with disgrace and a lot big money stuffed into their pockets.

Unfortunately as has already been established from the Blanchard-Barrick lawsuit in New orleans the governement and their agents are immune from prosecution, how convenient. So that just leaves the banks and certain connected people to answer.

Jim Sinclair has said that the massive OTC derivatices disaster can't be remedied. All the Treasury can do is hide the problem and hope that it goes away. Fat chance! The Fed buys the junk contracts in exchange for more taxpayer debt and the banks get a free pass with massive infusions so they can start over again. This is the biggest crime of the century, all at our expense. Even the banks have influenced their buddies in government to lower generally accepts accounting standards to put a value on all the worthless derivatives that they still hold.

In Japan the banks did the samething 18 years ago with all their junk real estate loans. Banks that lie about their real worth are known as "zombie banks."

In this country all the banks are basically bankrupt. Why do you think the government is giving them all this money, our money? There capital has evaporated with 28 years of declining interest rates as Mr. Antal Fekete has so brilliantly described in past articles.

Golden Sachs and J.P. Morgan recently reclassified themselves as banks and now the both of them are in line with the other banks milking us of our long term financial security as a country.

When this mess finally ends, if ever, all these criminals will be holding gold, silver and all the related companies and they will have secured them at fire-sale prices that they, themselves, created. That is why it is important to just tune out from all these temporary, ridiculously low prices.

What do you do when a burglar approaches your home at night? You lock all the doors and windows, hunker down and be prepared, you most certainly don't run away crying in hysterics.

On another note, the Chinese have been recently more vocal with their thoughts on our continuing meltdown. The "People's Daily" the official newspaper of China's ruling communist party recently stated the following, "Growing chorus of Chinese disdain for Washington's economic policies and financial dominance in the wake of the credit crisis." "The U.S. has plundered the world's wealth."

China is quite worried and with the recent strength of the dollar inspired by financial unrest in Europe who could blame them for quietly reducing their masssive exposure to the dollar. This is one significant reason that the recent strong rally of the dollar is doomed and gold's rebound is near.

One reason that Fannie Mae and Freddie Mac were temporarily saved is that China holds one fifth of their total agency debt. This amounts to $447.50 billion as of June of 2008. China also for the same period holds $502 billion in US treasuries.

One thing the Treasury doesn't want and that is a panic out of the dollar of which China would not really want to be part of. China is more of a methodical buyer and seller. It would be quite naive if anyone would assume that China is not buying gold, silver and many of the bigger precious metals companies along with base metals and their producing companies and relieving themselves of their excessive dollar holdings.

Go Gold!
 By bluejay

10/27/2008  10:23AM

Last on gold is $741.30.

A link is provided to the December 08 commodity chart where you can get an idea of trading volume in the most popular month. This does not include the electronic market.

It is difficult to pinpoint volume. Dan Norcini does a commitment of traders volume chart about every week at jsmineset.com with comments.

 By Hans Kummerow

10/27/2008  6:06AM

Over here in Europe Gold is trading at US $ 720,00 per ounce right now.
The traders say that Equity Funds are unloading large amounts of gold to cough up cash for withdrawals and to meet stiff margin calls.
As far as I can see, Scoop, no purchases are possible at US$ 600,00. Not yet - at least.

10/24/2008  10:36AM

Please, please, please, Bluejay or someone with the access to and the brains to figure this out. What amounts of gold in ounces(volume) are trading to set these lows. Shocking to see $600's. Who were the lucky stiffs who now own it and how much was available at that price?? Can we get this from future contract sells and buys? Scoop's not too flush right now but Gold in the $600's, who could resist if we knew how to get gold at that price?
 By bluejay

10/24/2008  9:30AM

Last on gold is 745.60. We may have hit bottom today.
 By bluejay

10/24/2008  9:24AM


Gold is currently higher at $736.50 substantially above an early morning low of $680.30.
 By bluejay

10/22/2008  6:23PM

Last on gold is $721.50.

It wouldn't surprise me with the storm of storms hitting the precious metals and especially their stocks that the manipulators eventually someday will all be behind bars.

The following attachment is must reading for those that continue to hold part or all of their wealth in Treasury bonds.

 By bluejay

10/22/2008  10:18AM

Gold $735.00 off $34.90
Silver $9.38 off $ 0.65
Gold/XAU Ratio 9.58(This figure indicates that gold stocks have never been cheaper compared to the last in gold)
Gold/Silver Ratio 78.36

The suspected secret meeting to assassinate the precious metals and their stocks between the Plunge Protection Team and bankers, plus possibly some select hedge funds, that took place in late June continues unchecked.

As Hans has pointed out physical gold is more fun. Well, this paper party that is permitted to persist by the SEC with the shares along with the CFTC's and their controlled paper exchanges is becoming disheartening to all believers in honest money.

In July the banks went wild shorting gold and silver in an unaccustomary manner. By requesting their help to join in on the raid the Treasury and the Fed thought it a good idea to build up their dwindling reserves a little at our expense.

The psyche of short sellers significantly hinges on massive destruction and pain. So, has the plan not accomplished their goal?

A government's role in manipulating gold and silver has always been the same: destroy competition when our fiat currency system starts to falter. Stalin did it to silver years ago when the people hung on to their coins as that currency's value was collapsing. Stalin even executed his collecting agents when they didn't acquire it fast enough from the poor people and even some clerks who were tallying up how much had been collected. Following, the people fearing for their lives relunctantly turned it over.

Are we not almost in the same position today as fear of declining prices scare us into either selling or contemplating it? In 1931 when the gold was called in by FDR there were also threats extended to the people that scared them to part with it. If you didn't turn it in you would be fined and possibly sent to jail. Fear is the name of their game. Today in modern times, it's instilled fear through manipulation of rapidly falling prices to hold a faltering malignant currency and keep our funds in a suspect banking system to save their asses.

So, when any fiat currency starts to falter, as is the case now from increasing astronomical debt, the SCARE TACTICS have surfaced boldly once again. If you and I tried this scheme why wouldn't we expect to be incarcerated? Manipulating the precious metals and stocks is no less than a crime against the public.

History will always be our guide: Who did it benefit and who did it hurt to part with the gold and silver during financial upsetting and confusing times? The answer is clear.

In the months and years ahead severe price inflation as the result of mounting monetary increases will result. The true time and tested wealth protector will mostly be in holding gold and the companies that produce it. There will no other way around this. Eventually, gold will be the victor not some debt ridden paper factory.

It's important to accept that the prices being reported on gold, especially, is just a vain attempt by scared public officials to remove the threat by the people against their imploding mismanaged US dollar. The sad part is that certain closely associated private entities are greatly benefiting by the use of inside information being supplied ahead of time by criminals that work inside our government and their friends.

The friends are the banks and the two remaining big brokerage firms that are now calling themselves banks plus some suspected loyal hedge funds. Hedge funds? Believe it or not, some hedge funds have actually attended meetings of the Plunge Protection Team consisting of the Treasury, the Fed, the SEC and the CFTC. And who controls the PPT? It's our commanding chief.

The good news for holders of gold and their gold stocks is that this man's family is long gold through their interest in the powerful Carlyle Group. The Carlyle Group holds the majority of the remaining long sides of many gold hedges that producers continue to hold.

If history is any guide, time will not wait much longer for gold prices to turn abruptly higher and the lofty artifically pegged dollar much lower.
 By Hans Kummerow

10/21/2008  11:13PM

Whilst trillions of US-Dollars and Euros are handed over to the financial markets by the Feds of this world we should remember where all this money comes from:

I is not coming from tax-increases because everybody is talking about tax-cuts.

I is not coming from saved gov't expenditures because additional gov't spending is encouraged anywhere on this globe during the crisis.

Money is created as book-money garanteed by the people who have the authority to print the money on real paper if the markets won't believe in their books.

And as far as the physical markets and the paper markets for gold are concerned - let's stay physical. It is more fun anyway.
 By Michael Miller

10/20/2008  3:16PM

Massive selling or selling pressure usually drive prices down faster than massive buying or buying pressure. True or false?

Short selling, naked selling or selling what you do not have but either have a source for delivery or a source for borrowing influences driving a price down. True or false?

Owners or keepers of a commodity usually are more reluctant to sell the commodity when they believe the current price will increase in the days ahead. True or false?

In order to gain insight about spot price fluctuations of gold, one needs data about the volumes of outstanding: short sales, pledged supply, daily or monthly new mine production, sources of supply (the more the better), coin sales, bullion sales, central bank exchanges, and……more.

Facts are important for gaining a worthwhile opinion. Next comes a useable formula. Then a good market statistician well versed in computer programming could set the gold speculation world aglow. Are you out there? If so please write this FORUM. I would be one of many interested gold players.
 By bluejay

10/18/2008  11:29PM

Last on gold is $782.90.

Posted On: Sunday, October 19, 2008, 12:10:00 AM EST

The Bullion Market Versus The Paper Gold Market - An Explanation

Author: Jim Sinclair

Dear Friends,

It is axiomatic that the most leveraged gold market most often (95 percent of the time) sets the price of any cash market. First derivatives (listed futures) commands price.

This remains true as long as the COMEX warehouse of gold is NOT meaningfully depleted by long gold contracts by taking delivery from the exchange warehouse.

As long as an exchange maintains a warehouse that historically overwhelms historical demand for delivery the first derivative, The COMEX listed gold future, will be the primary cause of price.

Taking delivery from the COMEX warehouse is not an easy process as the system is designed not to violate your contract but to be a world-class pain in the ass.

The COMEX requires re-assays, assuming you wish to re-deliver. This then places another raving pain in the ass in your way.

The COMEX market is effectively an international 24-hour market as there is no location where you cannot buy or sell a COMEX clone.

Cash bullion gold as opposed to the semi cash markets that non-USA banks trade is the only totally private means of buying and selling gold.

As currency problems increase, first the knowledgeable public such as you clean out the coin market.

This is the first time that the international coin markets have been cleaned out everywhere. This did not happen globally in the 70s.

Large gold bars are still available in major markets but the backup inventory is getting low.

As long as the COMEX warehouse remains adequate and large bars still are available, the paper market, the leveraged COMEX market, will rule the price.

Only with a decline in COMEX warehouse inventories and a run down in large bar supplies of the cash market will the cash bullion market command the price of the COMEX futures market.

It was not the buying by the Hunts that caused silver to move above $30 into the $50 area, but rather the universal belief that they would take delivery, which would deplete or exceeded the COMEX warehouse supply.

The War between paper gold and bullion gold is a war to determine which will take command of the price of gold, nothing more, nothing less.

There will be no two markets trading at different prices.

All this battle is about is IF the bullion gold market is going to take the lead in making the singular price away from the traditional axiom that the most leveraged market makes the price. I believe the bullion, in these most unique conditions, will command the one gold price making it hard to impossible to manipulate the gold price via the paper gold market, as is the practice every day.
 By bluejay

10/18/2008  9:21AM

Last on gold is $782.90

The following link is to an article that clearly details what is occurring to our financial system and the corruption behind it.

Owning physical gold in this environment makes perfect sense.

It's an enigma how folks can sleep at night with their savings entrusted to any financial institution.

 By bluejay

10/17/2008  10:02AM

Gold $778.90 off $25.40
Silver $ $9.26 off $0.49
Gold/XAU Ratio 8.94
Gold/Silver 84.11

Gold Stocks Make Historical Bottom

In what everyone thought farfetched when gold breached the magical level of $1,000 the precious metals and the precious metal shares following were abosultely thrashed. They were taken behind the barn, severely assaulted by the powers to be and whooped by the media in an unprecedented attack that left us all shell shocked and dizzy.

This vicious storm was inflicted on us all by the western bankers who still believe they control the financial world whose fiat controlled systems were coming apart at the seams and continue to unravel. Their motto through the years has always been the same, eliminate the competition, destroy gold.

We are all aware of the trickery they have employed to dislodge us from the only real money, gold.

Around the world, believe it or not, there is a counter-balance of smart people that consistently make money on the antics that bankers use against precious metals and their shares to mold public opinion.

Aside from the gold follower's predictions and forecasts concerning this group, many have errored in understanding the bankers capabilities, including myself, over the years in commenting on the short and intermediate directions of the metal. Basically, gold continues firmly in its bull market but the bankers have used unbelievable resources in an attempt to disturb our confidence.

Today, is just a continuation of those underhanded efforts of propaganda by selling paper gold contracts at the CRIMEX(COMEX) market in New York. One has to wonder where all this gold is coming from. During president Reagan's administration he once considered going on a gold standard. Unfortunately, when an audit was completed of our gold holdings at Fort Knox none was found. It seems that the privately run Fed was holding all of our gold as collaternal for all of the country's debt. What a great invention, create a currency out of "thin air" and end up with gold. The Fed was greated in 1913 when only a few Senators were present for the confirming vote.

In the constitution it clearly states that the our currency will be managed by the US Treasury. The Fed is an illegal entity that is privately run for the bankers that comprise that institution. Ownership of it is a closely guarded secret with its chairman appointed only by the president.

The Fed has done such a miserable job at managing our currency that the Treasury recently had to bail it out because it went bankrupt(not reported in the press for obvious reasons). Has the Fed been selling the country's gold? If not, where is it??? A major point is the Fed will do anything to preserve its illegal power and that means selling the so-called collateral held by them against US debt.

Gold's contrived weakness is a total sham to protect the Fed against this dangerous truth and they are not in it alone. One of its co-members of the Plunge Protection Team is the SEC. The SEC has blatantly allowed the precious metal shares to be savagely beaten down by the connected bullion banker's stock trading divisions. These cohorts have been allowed by the SEC to sell precious metal shares they don't own and can't even borrow. For them, this is a currency that painly does not exist but the bullion banks are allowed by the SEC to practice this fraud upon share holders and destroy their wealth.

In the history books of the future this price manipulation scheme will be discussed as one of the greatest financial crimes the world has ever known.

Aside from all the dirty players and their tactics, the current values of gold, the rest of the precious metals and their shares is not going unnoticed by the big players that know value.

A person would have to be really "out to lunch" not to conceive the idea that with China holding its massive reserves of dollars that the Chinese are now and have been recently exchanging them for the precious metals and shares at these fire sale prices.

Some years ago a commentary discussed on these pages stated that gold had breached its long term 5000 day moving average line and had entered a new major bull market at around $350. These long term averages are quite potent and hold siginificant forecasting abilities.

In the last few days the Philadelphia Gold & Silver Index(XAU) has crashed into its 5000 day average, sold through it at 90.00 or so and has hit a low of 82.01 today with a last of 87.03. Even though the mark was penetrated its significance still holds until such time that it starts presenting resistance problems.

These long term averages hardly ever get eliminated by severe drops from higher levels over short periods of time. On its last major advance the XAU Index hit nearly 210. Current trading levels represent at drop of 61%. All probabilities infer that a MAJOR low has been established in the Index today.

If anyone has any money available or can convert some assets into cash it is suggested that core assets of gold stocks be added to with the following three stocks:

Agnico Eagle at $35.92

GoldCorp at $20.04

Royal Gold ar $30.44

The Original Sixteen To One Mine shares continue to be one of the best perpetual call options available in today's market waiting patiently for expected firmer gold prices in 2011 which will be considerably higher that these current Alice In Wonderland prices for precious metals and their shares.
 By Mark R

10/17/2008  4:51AM

Gold up/oil down? Seems a fair amount of moneyed folks must think the dollar's been inflated and the U.S. economy (oil demand) is going to go down far enough to increase oil supply. W & W (the new firm of Washington and Wall St) are stealing from our great great grandkids.
 By gfxgold

10/16/2008  4:34PM

It's truly amazing how, in just a few hours, when things look promising, it can all just fall apart.
They refer to people as cattle and sheep. This really applies when it comes to the markets. Something spooks one of them and all of a sudden you have a full blown stampede. Today, it looks like the "herd" decided to play musical chairs with some commodities and drove the price down on just about everything that is used in industry. Just because somebody is predicting that the U.S. economy is going to take a big dive and industry will not be needing such a large supply of those commodities. So, it's sell now before it's to late. The upside to this is, If you wish you had bought some of those commodities when the price was lower, like gold and silver, now might be the time. The platinum group metals have taken a big hit and may be worth a second look. The one good thing about palladium being at a lower price is that maybe now, the meth heads will slow down on catalytic converter thefts.
 By Michael Miller

10/16/2008  12:42PM

People are writing and talking about the shortage in gold in one form or another. It is not so much of a shortage as it is a mismatch of a classical chart on supply, demand and price. We studied those charts in Economics 1A and later in upper division classes. Unless the holders of physical gold need the liquidity of cash, why would they be inclined to sell their gold inventory for a price that seemed below its present and future worth? They would not sell and apparently many will not sell physical gold until the supply/demand lines cross at an acceptable price.

Perhaps an owner of gold has pledged it as collateral for a loan of cash and cannot sell; however the economic rule above still applies. Gold miners must sell gold for their production to pay labor, supplies and other costs to mine the stuff.

Another point worth pondering is the current relationship of gold and oil. This relationship goes back at least forty years and has been written about in numerous publications. BUT now gold is rising while oil is falling in price. Any comments?
 By bluejay

10/15/2008  5:56PM

Last on gold is $840.80.

Another great educational article:

 By bluejay

10/15/2008  10:36AM

Gold $843.00 up $8.40
Silver $10.39 down $0.57

The government continues to be in a franctic effort to save the present failing financial system that they, themselves, permitted to befall upon us.

According to the following article by Darryl Schoon presented on Kitco.com today we have all been used as pawns, suckers, for the sake of private bankers in their quest for more and more until they broke their own rigged game.

Now, to satisfy governement and our elected officials they command us by directives to bail them out at our expense. This scheme of trickery clearly indicates, in one form or another, that the government present and past(Greenspan, Rubin, Paulson, Bernanke etc.) are all on the bankers payroll to financially deceive us.

Losers in the Casino of Paper Money

By Darryl Robert Schoon
Oct 15 2008 10:43AM


When the Dow soared 936 points on October 13th, its 11.1 % rise was its best percentage advance since 1933—an advance which had occurred during the Great Depression.

Five years after its 1933 historic advance, the Dow Industrials were down 90 % from its highs and in 1953, the Dow was still down 75 %. When speculative bubbles collapse, the losses are staggering and prolonged.

The 936 point rally on Monday will not be the only rally in this falling market. There will be more. There will be also more lows. We have not yet seen the bottom. We’re not even close. That’s not the fat lady singing that you hear. It’s the sound of your stock broker throwing up.


I know exactly what investors felt after Monday’s rally. I felt the same false optimism when the Banker’s Bailout Bill was initially rejected. Previously, I had cynically predicted the Bailout Bill would pass and when it was rejected, I was elated.

My elation, however, was premature. In the end, my cynicism proved correct. The $700 billion bank bailout bill was approved and signed within the week as I had predicted. The capitulation of public government to private bankers was now complete.

In 1999, a $300 million lobbying effort by banks and insurance companies had overturned the 1933 Glass-Steagall Act, an act specifically designed to prevent another Great Depression.

Now, because of its repeal, banks and insurance companies were again allowed to bet the savings of Americans in their drive for profit without regard for consequence; and not surprisingly, in less than a decade after its repeal, America is again on the verge of another depression.

By their repeal of the Glass-Steagall Act, the Democrats and Republicans sold out America; and, now in three weeks, on November 4th, Americans will again go to the polls and again vote for the same parties and politicians that sold them out.


In advanced, sic failing, democracies such as America, both political parties are owned by the bankers who control the government and the nation by controlling the flow of credit. Although the will of the American electorate was overwhelming opposed to the bank bailout bill, the President, congressional leaders of both houses and both parties, and the two presidential candidates were united in their support of the bailout bill and were consequently united in their opposition to the will of the people.

Democracy, n. Government of the sheep, by the shepherds, for the wolves.

L.A. Rollins, The Devil's Lexicon.


Our present economy is best understood as a casino. In the casino, house chips in varying denominations, e.g. dollars, euros, pounds, pesetas, pesos, yuan, yen, krona, drachma, won, etc have been substituted for gold and silver.

This is because the casino is run solely for the profit of the bankers; and through control and issuance of their paper chips, the bankers are able to control much of what happens on the casino floor.

The bankers make sure that the governments who issue the paper chips do so at the direction of central banks. Through their influence over the central banks, the bankers control the flow of chips without which the patrons cannot play.

Question: Who are the patrons and what role do they play in the casino?

Answer: The patrons are the producers, savers, and entrepreneurs without whose activities the casino would come to a halt. In the casino, they are known as marks, suckers who provide the on-going profits of the casino.

The casino’s hidden skim: Through the constant issuance of paper chips, governments insure the value of previously issued paper chips will fall thereby forcing patrons to gamble their earnings at the casino tables in order to preserve their paper savings and to perhaps gain by so doing.

The casino’s hidden advantage; While the casino patrons, sic marks, can only bet their earnings and savings on a 1:1 basis, in the private gaming rooms upstairs, the casino owners are able to draw on house credit and leverage their bets by 20, 30, or even 40 times their original sum.

What went wrong: After 1999, the casino owners began betting the savings of the downstairs patrons (bank savings deposits and insurance investments allowed by the repeal of Glass-Steagall) and bet this money on subprime CDOs, credit-default swaps, derivatives, emerging market equities, commodities, etc. and used house credit to leverage their bets far beyond the original amounts.

At first, winnings skyrocketed driven by the vast amounts of leveraged money available from the repeal of Glass-Steagall, providing even more incentive for the casino owners to borrow and wager even more. But, in 2007, the luck of the house changed

Even in rigged games, if the sums bet are large enough, the losses can be staggering and can break the bank, sic the house/casino. With bets leveraged 40:1, a fall of only 2.5 % completely wipes out the bettor. A fall of 100 % takes out not only the bettor but the enormous amount of credit extended to the bettor by the house.

Some of the losses incurred by subprime CDOs are as high as 90 %. The losses on Lehman’s bonds are over 90 %. The reason why financial markets are in such trouble is the trillions of dollars in credit extended by the banks is now gone and, as a consequence, almost all banks are bankrupt.

With the casino now broke, governments have announced that they will guarantee the value of all paper chips issued by the casino. Governments do not want bettors to cash in their paper chips because they know the banks are broke and do not have the cash to cover either their bets and/or the chips they issued.

Now the casino patrons are being forced to subsidize the casino while their governments are frantically issuing more chips hoping that by so doing the now terrified patrons will return to the now empty tables and continue to bet what little they have left.

Good luck.


The failure of our credit based capital markets and our democratic process is symptomatic of the changes taking place on our planet. The bankers’ system of paper money has so undermined all commercial activity along with our political institutions that the flaws of both are now obvious to all.

The bankers’ system of credit and paper money began in England in 1694, was moved to the US in 1913 and from there spread to the rest of the world, much like STDs. Debt and worthless money like sexually transmitted diseases are unintended results of initially pleasurable activity, in this case, economic expansion.

Unfortunately, there is no penicillin that can cure our ailing economy; and the ones responsible, the bankers, are mistakenly hoped by many to have the answers. They don’t. They made the problems and will only make them worse. Wait and see.

At the end of eras, institutions are found incapable of providing the solutions and answers they once did. Capitalism, which drove economic expansion for 250 years, is now stumbling and has fallen on its own sword, debt, which it once used to enslave others; and, democracy, previously the hope of mankind has become a caricature of the hope it once promised.


The end of eras are always succeeded by the beginning of another. Endings, however, are meant to clear away the old in order to make way for the new. We are seeing the collapse of that which is familiar. It has been an extraordinary era and its ending will be no less so.

Buckminster Fuller in his introduction to The Critical Path in 1981 wrote:

Twilight of the
World’s Power

Humanity is moving ever deeper into crisis—a crisis without precedent.

First, it is a crisis brought about by cosmic evolution, irrevocably intent upon completely transforming omnidisintegrated humanity from a complex of around-the-world, remotely deployed-from-one-another, differently colored, differently credoed, differently cultured, differently communicating, and differently competing entities into a complete integrated, comprehensively interconsiderate, harmonious whole.

Second, we are in an unprecedented crisis because cosmic evolution is also irrevocably intent upon making omni-integrated humanity omnisuccessful, able to live sustainingly at an unprecedentedly higher standard of living for all Earthians than has ever been experienced by any;

...that humanity now—for the first time in history—has the realistic opportunity to help evolution do what it is inexorably intent on doing—converting all humanity into one harmonious world family and making that family sustainingly, economically successful.

In 1981, Fuller predicted our present crisis. He also predicted its successful outcome. We are now in the crisis he predicted. You will not survive by hanging onto the old. You will survive by letting go. Buy gold, buy silver, have faith. Better times are coming.

Darryl Robert Schoon
blog www.posdev.net/pdn/index.php?option=com_myblog&blogger=drs&Itemid=81
 By bluejay

10/14/2008  1:34PM

Last on gold is $834.60.

The following is a report from David Icke's newsletter from October 12, 2008.

Mr. Icke's thoughts might freighten you some but they are well worth consideration.

The David Icke Newsletter, October 12th 2008



Hello all ...

Well, well, well. What a couple of weeks. It is a strange and surreal feeling to watch your books of nearly two decades unfold before you on the TV screen and I can confirm that it gives you no satisfaction at all.

'I told you so' is far less the reaction than 'What are we going to do about it?'

I have been banging out year after the year the two key coordinates that we need to understand to get a fix on what is truly happening in the world. These are (a) where those in control wish to take us and (b) the methods they use to get us there.

Put the two together and a world of apparent confusion, chaos and complexity takes on crystal clarity.

This is the structure of global tyranny that the bloodline families and their masters have been working for thousands of years to install:

There may be a few other elements, like a Middle Eastern Union, but this is basically it. In the end even the nation states would go as units of government to be replaced by smaller regions to disperse any unified response to the edifice of power above.

The main technique that is used to advance this agenda is what I call Problem-Reaction-Solution, which goes like this: Create a problem covertly and blame someone or something else for what you have secretly done; tell the people through an unquestioning and pathetic mainstream media the version of the problem you want the masses to believe; then openly offer, through changes in society, the 'solution' to the problem you have yourself created. This 'solution' is always the installation of more centralised control.

Take these simple coordinates and apply them to the events of the last few days and weeks and everything morphs into focus.

The banking 'crash' has been coldly designed to create the 'problem' that can lead to the 'solution' - a massive centralisation of power in the 'private' and 'government' banking systems, both of which are owned and controlled by the same network of families.

Look at that chart above and you will see 'World Central Bank', the body the Elite want to impose to control the entire global financial system. As a result of the economic turmoil, we are now seeing this being proposed to 'solve the problem' of the banking chaos and to 'make sure it never happens again'.

They have not yet, to my knowledge, used the term 'World Central Bank', but that is precisely what they mean when they talk about a new structure to police the global banking system. This theme was summed up in a headline in the UK Daily Telegraph: Global financial crisis: does the world need a new banking 'policeman'?

How appropriate that Britain's Mr. Sleeze, Peter Mandelson, the man behind Tony Blair, was brought back into government this week by Prime Minister Gordon Brown as 'Secretary of State for Business, Enterprise and Regulatory Reform and President of the Board of Trade'. Note: Secretary of State for 'Regulatory Reform'.

He's been brought back at just the right moment to secure UK support for a global body to control the banking and financial system. He is not an elected Member of Parliament, but that's no problem in a 'democracy' like Britain. Instead he's been made a 'life peer' which secures him a seat in the unelected House of Lords and thus qualifies him to join the government.

Mandelson, the son of the advertising manager at The Jewish Chronicle, came back into government after serving four years as Trade Commissioner (unelected bureaucrat) with the European fascist dictatorship, sorry 'Union'. His two previous roles in government ended with him being forced to resign over allegations of corruption.

This Illuminati gofer was installed just in time to deliver his 'solution' to the banking crisis: a new 'machinery of global economic governance', as he calls it. Gordon Brown himself said that global regulation was 'urgently in need of modernisation and reform' and the head of the International Monetary Fund has also called for a global organisation to police the financial system. We will see this theme constantly promoted.

As the Telegraph article said:

'So, as the world's central bankers gather this week in Washington DC for an IMF-World Bank conference to discuss the crisis, the big question they face is whether it is time to establish a global economic “policeman” to ensure the crash of 2008 can never be repeated.'

Classic Problem-Reaction-Solution.

But the banking crash has many other elements. These people rarely, if ever, do anything for just one reason. This is why connecting the dots across a vast series of subjects and events is so important to exposing the game.

Another coordinate that I have been stressing since around 1997 is China's role in all of this. China is a massive centre for the conspiracy and in so many ways mirrors the global society these sick people seek to impose.

China has been incubating for hundreds of years being prepared for its role as a key player in these times we are now experiencing. I was told by an insider many years ago to watch for the emergence of China as an economic and military power because then the action would really start.

Well, here we are.

China's 'economic miracle', based on slave labour that undercuts production costs across the world, has produced a mountain of money which has been used to buy foreign debt. It holds in excess of one trillion dollars worth of US Treasury bonds (debt) and debt of the US government mortgage lenders, Fannie Mae and Freddie Mac, recently saved from collapse by political intervention.

But even this trillion dollars doesn't nearly tell the full story because it doesn't include Chinese investment in private US corporations and the use by the Chinese government of third parties to hide the extent of its holdings.

Put it all together and China is gaining ever more control of the US economy and it can use this power to destroy what is left of the American financial system. If it sells its massive dollar holdings the value of the 'mighty dollar' will plummet and if its debt is not repaid it can claim American assets, yes government assets, just as a bank forecloses on your house if you don't make the payments.

And the United States is now ten trillion dollars in debt with more being added by the minute. The 'superpower' is essentially bankrupt and at the mercy of its overseas creditors - especially China.

Given that the plan is for a war involving North America, Europe, Russia and China this takes on even greater significance, as does the involvement in the trillion-dollar (open chequebook) 'bail out' of US Treasury Secretary Henry 'Hank' Paulson. Who is picking up that debt?

On April 3rd this year, investigative reporter, Wayne Madsen (waynemadsenreport.com), highlighted a secret document detailing the sequence of events leading to martial law and a possible war. Madsen's report said:

'WMR has learned from knowledgeable sources within the US financial community that an alarming confidential and limited distribution document is circulating among senior members of Congress and their senior staff members that is warning of a bleak future for the United States if it does not quickly get its financial house in order. House Speaker Nancy Pelosi is among those who have reportedly read the document.

The document is being called the "C & R" document because it reportedly states that if the United States defaults on loans and debt underwriting from China, Japan, and Russia, all of which are propping up the United States government financially, and the United States unilaterally cancels the debts, America can expect a war that will have disastrous results for the United States and the world. "Conflict" is the "C word" in the document.

The other scenario is that the federal government will be forced to drastically raise taxes in order to pay off debts to foreign countries to the point that the American people will react with a popular revolution against the government. "Revolution" is the document's "R word”.'

They sure as hell know that a war is coming, as I have highlighted myself so many times. See my newsletter, The Policeman Was Right ... Only 'The War' Is Still To Come in the subscriber newsletter archive.

Paulson: China's man?

Treasury Secretary Henry Paulson has major connections to China and he is also the bankers' representative in government. Until 2006, Henry Paulson was the head of Goldman Sachs, a major influence in the 'sub-prime' mortgage debacle that is the official excuse for the 'Credit Crunch'. Now, as Treasury Secretary, he is handing out trillions to the banking system he represents and no doubt will return to when he leaves office. He has even appointed another former Goldman Sachs executive, Neel Kashkari, to decide on who gets the money. For 'Goldman Sachs', by the way, read 'Rothschild'.

Neel Kashkari, or 'Cash Carry' as he has now become.

Paulson is extremely close to the Chinese elite and, according to the Daily Telegraph, has visited China more than 70 times. All these connected facts are not coincidences. There is a plan unfolding here and it is happening on so many fronts.

This week the Bank of China announced it is buying a stake in the French bank LCF Rothschild and it says the two will develop private banking and asset-management services for China's newly rich. Oh, I think there is just a little more to it than that.

China and other foreign interests increasingly own America and, as I have been saying for ten years or more, the idea has been to use America to destroy America, both militarily and financially.

The United States has long been employed to fire the bullets, financially and literally, but the gun is being loaded elsewhere, mostly in Europe. America has been brought to its knees through war and financial mayhem and that is exactly what was meant to happen.

Why? Look at that global government structure again. A world government, world army and world central bank cannot have total control if there is a 'superpower' with the political, military and economic strength to say 'no' to its decisions. America had to be destroyed and that is what Boy Bush was installed to secure by saying and signing anything he is told to.

Unfortunately, those programmed by the vision of 'John Wayne America', Democrat voters as well as Republicans, have been too blind to see what to some has been so blatant.

American financial and military power

Just before I left America this week, I heard how those opposing the trillion dollar (open chequebook) 'bail out' of US banks were threatened with martial law if the bill did not go through. US Representative Brad Sherman of California said:

'... Many of us were told in private conversations that if we voted against this bill on Monday that the sky would fall, the market would drop two or three thousand points the first day and a couple of thousand on the second day, and a few members were even told that there would be martial law in America if we voted no.'

The structure is now in place for the military to police the streets of America when martial law is declared and then a whole list of presidential executive orders are triggered into action that will mean the very fascist dictatorship that some of us have long warned about. The same is planned in Britain and elsewhere when the people take to the streets in protest at what is happening.

Then there is the world army. I said in And The Truth Shall Set You Free, written in 1994, that the world army would be a fusion of the UN 'peacekeeping' forces and NATO. This week the Russian Foreign Minister Sergei Lavrov revealed his 'shock' that the UN and NATO had secretly signed a cooperation agreement without all UN member states reading the draft.

This agreement declared that the two secretariats would work together with the common aim of 'maintaining international security on the basis of the UN Charter and certain international directives'. Now, er, what could that mean?

Under the radar, at least the mainstream radar, so much has been going on while the masses watched the latest game or soap. How frustrating it has been to see the warnings ignored and ridiculed as today became ever closer.

Go to sleeeeep ... stay asleeeeep ...

This comatose public indifference has allowed the structures to be prepared to play out the agenda so fast once the button was pressed and the veil lifted. There was always going to be a time when all that has been hidden had to break the surface as the 'new world' was installed as a tranformation of global society.

It has been like gathering an army under cover of darkness and once dawn breaks the targets are attacked from all directions at the same time. 'Where did all this come from?', the targets cry, but it didn't 'come' out of nowhere in that instant. It was prepared long before the strike came - while the people were sleeping.

The attack, in terms of the one now facing Planet Earth, has been in the making for thousands of years. The people have been unaware of this and, even when the warnings and supporting information came over the last 20 years, most either laughed or looked the other way.

Now the chickens are coming home and they are wearing jackboots.

Are we going to grasp the opportunity to act now that the game is being revealed by daily experience? Or is the human race so detached from consciousness that it will still close it's eyes or freeze with fear?

We'll soon see.

I sit here now utterly exhausted after five weeks of almost non-stop travelling and talking in Europe and then America. It is amazing how hard it hits you once you stop. But come Monday morning, and a couple of nights sleep, off we go again with renewed efforts. This is no time to tire, no time to give up on freedom in the face of the challeges we are now facing by the day.

Quite the opposite.

Yes, this is a time of challenge, but it is also offers a wonderful opportunity - IF enough backsides and sofas are willing to part company.

I'll address just that point next week.


'A society whose citizens refuse to see and investigate the facts, who refuse to believe that their government and their media will routinely lie to them and fabricate a reality contrary to verifiable facts, is a society that chooses and deserves the Police State Dictatorship it's going to get.'

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