Archive for January, 2009

Ron Paul On Fox, Gold Standard Returns?

January 31st, 2009 10:02 pm  |  by  |  Published in Free Market, gold, gold standard, Money, Ron Paul  |  Comments Off

Ron Paul was interviewed by David Asman on FOX Business Channel on Friday. They discussed the possibility of returning to some form of gold standard.

Ron Paul argued for competing currencies backed by gold or silver. He makes a point to say the currencies should not be controlled or mandated by any government. The idea is that rather than returning to a gold standard or sound money instantly, a more stable method would be to legalize competing currencies and eventually the fiat money would fall out of favor.

Watch the discussion below.

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Silver in Backwardation! Has the Last Contango Been Danced in Washington?

January 31st, 2009 6:50 pm  |  by  |  Published in Commentary, gold, Investing, Liberty, precious metals, silver  |  Comments Off

The LBMA Silver Mid Rate goes negative AGAIN!!!! Read on to see why I used 4 exclamation points.

by Jake, the Champion of the Constitution
Originally published Friday, January 30, 2009 at

silver[In case you do not yet understand futures markets, “backwardation” means that silver to be delivered today is now being priced higher than metal to be delivered later in the London Bullion Market Association’s futures market in London, England. For more details on backwardation, please refer to my five-part December series which starts here “The End for the Dollar and all Fiat Currencies (1/5)“. Contango is the opposite of backwardation and exists when futures price is higher than the spot price as I explained for those new to futures terminology here “The Money Matrix – What the Heck Are Derivatives? (PART 10/15)“. [As you read, please also note that I am NOT a commodities trader, I am just an engineer by trade, so feel free to help me out with my analysis or mistakes.]  ( Photo) (2)

As we learned in “The Significance of Gold Backwardation Explained (4/5)“, backwardation is a sign of a very tight market, and a market that will be tight for sometime into the future either 1) current supply is very tight, 2) future supply is projected to be very tight, or 3) there is a severe distrust in counterparties that the short positions can deliver the goods on time per the contract, or vice versa that the long positions will not have the cash.]

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Is it time for us to bail out of the U.S.?

January 30th, 2009 12:56 pm  |  by  |  Published in Bailouts, Banking, Big Government, Debt, Economics, Federal Reserve, gold standard, government spending, inflation, Liberty, Market Regulation, Money, national debt, Politics, Taxes  |  Comments Off

When you’re in a boat with a hole in the bottom, and your efforts to plug that hole have failed miserably, at some point the prudent thing to do is get out before you sink to the bottom with it.  Paul Craig Roberts has posted a scathing review of the current financial situation and our inept government’s responses.  Here’s a little snippet to tempt you to read the whole thing:

The stock market decline has destroyed about 45% of their IRAs, 401Ks, and other equity investments. On top of this comes the decline in home prices, lost jobs and health care, lost customers. The realized gains in mutual funds and investment partnerships, on which Americans paid taxes, have been wiped out.

The government should give those taxes back.

Americans who have seen their retirement savings devastated by complicity of government regulators and lawmakers with financial gangsters should not have to pay
any income tax when they draw on their pensions.

The financial damage inflicted on Americans by their own government is as great as would be expected from foreign conquest. While Washington “protected” us from terrorists by fighting pointless wars abroad, the US economy collapsed.

How can President Obama even think about fighting wars half way around the world while California cannot pay its bills, while Americans are being turned out of their homes, while, as Business Week reports, retirees will work throughout their retirement (which assumes that there will be jobs), while careers are being destroyed and stores and factories shuttered.

Americans are facing tremendous unemployment and hardship. Obama doesn’t have another dollar to spend on Bush’s wars.

Taxpayers are busted. They cannot stand another day of being milked by the military-security complex. The US government is paying private mercenaries more by the day than the monthly checks it is providing to Social Security retirees.

This is insanity.

Go on.  Read the entire article.

GATA’s Message on Gold and Silver Manipulation to Barack Obama (PART 2/2)

January 30th, 2009 1:29 am  |  by  |  Published in Big Government, Free Market, gold, Liberty, Market Regulation, precious metals, silver  |  2 Responses

“Surreptitious market manipulation by government is leading the world to disaster.” – GATA, the Gold Anti-Trust Action Committee in a $264K full-page color ad in the Wall Street Journal, January 31, 2008

by Jake, the Champion of the Constitution
Originally published Thursday, January 29, 2009 at

“Gold is Money, and Nothing Else.” – JP Morgan before Congress, 1914.  Notice he forgot to mention silver.  GO GATA!

In Part 1, I meandered a bit but one point I belabored was that the United States under Obama will refer to China as a “currency manipulator.”  In this article, please also me to meander again, but if you care to research any of the links I will introduce, you might agree with me that first Obama and “Turbo Tax” Tim have to defend my claim that America is itself a “currency manipulator.”

libertyThe Gold Anti-Trust Action Committee was organized in January 1999 to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.  GATA opposes collusion against a free market in gold, other precious metals, currencies, and related securities.  Their main theories center around demonstrating that governments, central banks, bullion banks, and even some major miners have colluded to suppress the price of gold.  By doing so, they make their own fiat currencies appear stronger. ( photo) GATA’s evidence is summarized here and an 25-minute introductory movie is here Part (1) (2) (3)

My first two pieces of evidence are taken from a very upbeat letter celebrating the 10th anniversary of GATA written by Bill Murphy of  You can read the full version here.  First is a description of Obama’s “new” Clinton-era, anti-gold central planners.  Second is a 1961 Federal Reserve document found by researcher Elaine Supkis that clearly outlines secretive currency manipulation as standard operating procedure for America’s quasi-private central bank.

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Ron Paul: Socialism or Freedom?

January 29th, 2009 12:28 pm  |  by  |  Published in Activism, Bailouts, Big Government, campaign for liberty, Civil Liberties, Constitution, Economics, Federal Reserve, Free Market, Individual Responsibility, inflation, Liberty, Money, Philosophy, Politics, Ron Paul, Ron Paul Republicans, rule of law, Socialism  |  2 Responses

Ron Paul appeared on CSPAN’s Washington Journal this morning for a very nice 30 minute segment. Much of the first half of the interview centered on much of Paul’s own philosophy in our current economic and political climate.

The first few callers were of the (perhaps typical) “crazy sounding” variety that CSPAN tends to attract.

The final caller, one which I wish was taken first had a woman accusing Ron Paul of believing in an “absurdity” when it comes to free markets.

Paul replied with a simplistic yet profound answer:

“You are for socialism and a I am for freedom.” (paraphrased)

Indeed that one sentence sums up the current political debate in America. So, are you for socialism or are you for freedom? They are mutally exclusive. I choose freedom.

Watch the interview below:

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Ripped Off and Ready For the Revolution

January 29th, 2009 12:10 pm  |  by  |  Published in Activism, Economics, globalism, government spending, Gun Control, Individual Responsibility, inflation, Lew Rockwell, Liberty, Maven Commentary, Money, Philosophy  |  Comments Off

Gold sovereigns and a Krugerrand

Image via Wikipedia

“We are being ripped off!” “There’s going to be a revolt in this country!”

These are the words of Gerald Celente on the latest Lew Rockwell podcast. Celente certainly has a sense for the melodramatic, but the interesting thing is that so many of the  predictions found in his Trends Journal newsletter have come true.

He claims that the panic of 2008 will become the collapse of 2009 and there’s going to be “the worst living conditions that we’ve ever faced in this country.” These words are quite scary and almost unthinkable for most of us.

I include myself among those skeptical of such claims, but every time I look at the writing on the wall it becomes more difficult to remain skeptical.

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The Scam Bill

January 29th, 2009 11:41 am  |  by  |  Published in Bailouts, Big Government, congress, Debt,, Economics, government spending, Liberty, national debt, Politics, Taxes  |  Comments Off

D o w n s i z e r – D i s p a t c h

Quote of the Day: “I think this is a case where Freddie Mac and Fannie Mae are fundamentally sound. They’re not in danger of going under. I think they are in good shape going forward.” — Barney Frank (D-Mass.), House Financial Services Committee chairman, July 14, 2008

Subject: The Scam Bill

The House passed an $819 billion “stimulus” bill yesterday, 244 to 188. All 177 Republicans, plus 11 Democrats, opposed the bill. This doesn’t mean the battle is over. The Senate is considering a different variation of the bill and both chambers will have to vote again on a unified version. We must continue to fight.

We cannot make this point often enough. The new Democratic majority is doing exactly what the Republicans did before them, exploiting a crisis to perpetrate a scam.

We must repeat this constantly, to ourselves and to everyone we meet . . .

* President Bush exploited the 9-11 tragedy to try to re-engineer the world
* Now the Democrats are exploiting the financial crisis to re-engineer America

The evidence is piling high. The so-called stimulus bill is really a grab-bag of corporate welfare and social engineering projects.

Perhaps you’ve heard about the $200 million to buy condoms (and pay for other birth control projects). Is that really supposed to stimulate the economy, or something else? We think it’s Democratic social engineering, pure and simple. Democratic politicians want to see Americans behave in certain ways, and they’re willing to steal a trillion dollars from the productive economy to fund their pet preferences.

Here comes another one . . .

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House Passes The Progressive Patriot Act

January 28th, 2009 6:52 pm  |  by  |  Published in Bailouts, Big Government, Economics, government spending, Maven Commentary, Money  |  1

The House passed Obama’s Stimulus bill or as I call it the Progressive Patriot Act on an almost straight party line vote. Not a single Republican voted for the bill, and only 12 Democrats voted against it. So much for Obama’s efforts at bipartisan support.

NEW YORK ( — The House passed an $819 billion economic stimulus package Wednesday on a party-line vote, despite President Obama’s efforts to achieve bipartisan support for the bill.

The final vote was 244 to 188. No Republicans voted for the bill, while just 12 Democrats voted against it.

The Senate is likely to take up the bill next week.

In floor debate, House Democrats offered near-unanimous support for the bill, touting the package’s ability to quickly create jobs and jumpstart economic growth.

“One week and one day ago, our new President delivered a great inaugural address … which I believe is a great blueprint for the future,” said House Speaker Nancy Pelosi, D-Calif. “With swift and bold action today, we are doing just that — with this vote today, we are taking America in a new direction.”

That’s right folks… and that direction is left left left left. I will bet all the gold and silver I own that this stimulus bill will do nothing to help our economic woes. In fact it will only make things worse. It will do nothing to put America on a new path. It only solidifies lobbying and special interest power in DC. They will all be lining up for government money, which is to say, our money.

Cross your fingers and pray that the Senate has more sense than the House and votes against this bill.


January 28th, 2009 2:16 pm  |  by  |  Published in Commentary, Constitution, crime, Foreign Policy, Liberty  |  Comments Off

Acts of piracy whether committed by Somalian nationals in desperation or by nation-states like the United States are still acts of piracy!

by Jake, the Champion of the Constitution
Originally published Tuesday, January 27, 2009 at

jollyWell, technically I suppose if committed by the US it could be called privateering.  (photo)

I am sure that most are familiar with the Somalian pirates, who have taken over quite a few merchant vessels in the Gulf of Aden over the past few years with the aid of a few assault rifles and motorboats.  These criminals are mostly concerned with obtaining a ransom, and have kept ship crews and cargo hostage for fairly lengthy periods of time.  I am under the general impression that these pirates are more concerned with their ransom booty and do not really intend to take their hostages’ lives.

What some may not know is that Blackwater, an American private mercenary and security firm is preparing to start a new “business” in protecting Gulf of Aden ships from these rascals.  That should bloody the waters a bit, but probably few would claim that these pirates are anything but armed robbers.

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The Year of the Ox Arrives in China, Land of “Currency Manipulation” (PART 1/2)

January 28th, 2009 2:10 pm  |  by  |  Published in Banking, Commentary, Constitution, Economics, Free Market, government spending, Liberty, Money  |  1

A few interesting contrasts between life in China and life in the United States as I ramble from the Chinese Yuan to Fireworks to Freedom of the Press to Global Warming

by Jake, the Champion of the Constitution
Originally published Tuesday, January 27, 2009 at

As a disclaimer of sorts, I have been based in Shanghai for the past 3 years. I rarely write about China (even though I have quite strong eco-political views) since it does not cross too much into this column’s purpose, namely to end the War on Terror and bring about Honest Money. Here are a few of my thoughts as Chinese New Year begins. I hope these contrasts spark a few thoughts for those who do not live here. However, I do not mean to insinuate in any form or fashion that China is “freer” than the United States.

Part 2 will reveal a recent discovery concerning the Federal Reserve’s manipulation of FOREX markets from 1961.

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