Make a Pledge!

Watch the video.  This would be great!  And you are only charged if the debate happens (Krugman accepts challenge).

New FED Accounting Rules

I find this all hilarious.  This should confirm to everyone that Bernanke and FED economists will fight to the end to prove that central banking, and their theories that go along with it, can work.  Anyone who thought they had to accept reality at some point was wrong.  They just keep getting crazier.

The new accounting change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability.  This is convenient and better than the alternative of the FED facing insolvency, better for the FED and the banks that is.  


There is no market, it is simply a thing of the past.  It will not return until the FED destroys itself.  I strongly suggest considering this fact before putting too much money into something that does not reflect reality such as the stock market, a home, and any interest bearing assets.  Someone eventually has to eat these losses, don't let it be you.

Backwardation in Silver / $25-27 will be the bottom

James Turk pointed out in a recent post on the condition of the silver market - backwardation.
You can see this in plain sight. Compare the table below with gold/oil/uranium where those forward month prices are higher.
http://futures.tradingcharts.com/marketquotes/index.php3?market=SI

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Jan 11	27.416
Mar 11	27.427
May 11	27.451
Jul 11	27.465
Sep 11	27.476
Dec 11	27.488
Jul 12	27.539
Dec 12	27.574
Jul 13	27.629
Dec 13	27.666

I believe $25-27 will be the bottom for silver. Once silver breaks $30, we will never see silver in the 20's every again when measured in USD's. $50 silver is not a pipe dream in 2011. The backwardation condition is just the groundwork for a blast to upside. With silver in the 20's, there is no reason not to exchange your USD's for silver from a financial standpoint. I understand that $1341 gold is not affordable for everyone to purchase every month.

It should be interesting, from a dealer perspective, if we see $25-27 silver in terms of premiums increases and delivery delays.

A note on gold. If gold breaks $1300 and tests the breakout price of $1265, I bet all of the weak hands who bought $1300+ in Oct-Jan will throw in the towel and sell…meanwhile the strong hands and smart money will be buying those shares/contracts as they foresee $1600 in 2011.

World needs $100 Trillion in the next 10 Years?

http://www.weforum.org/news/over-us-100-trillion-additional-credit-needed-support-global-growth?ol=1

This sounds like a move towards one world bank and a group that managers each countries debt. I bet the $100 trillion will be in the form of SDR's. The WEF does not mention gold…hmmm.

How is this not inflation???

Percent change at seasonally adjusted annual rates        M1                    M2
----------------------------------------------------------------------------------------------------------------------------------------------------
3 Months from Aug. 2010 TO Nov. 2010                   20.5                   7.2
6 Months from May  2010 TO Nov. 2010                  14.8                   5.4
12 Months from Nov. 2009 TO Nov. 2010                  8.6                   3.3

Source:  http://www.federalreserve.gov/releases/h6/current/

Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases

Go here for more on the late delivery and concern of trust management:

"Frankly, we are concerned about the illiquidity in the physical silver market," said Eric Sprott, Chief Investment Officer of Sprott Asset Management. "We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver."

As someone who frequents websites to see what physical is for sale to the average consumer there has been a strong, scary almost how strong it is, trend of longer and longer wait times for expected delivery of not just coins but bars and even scrap silver (gold too but much lesser of a degree). This is if they even are offering it for sale or it has not already been sold out. It is remarkable that anyone would call this a bubble right now, the laws of economics promise us this will go ape shit to the up side on. All that is needed is the first failure to deliver of physical metals from one of the major exchanges. This will set off a chain reaction of every paper metal holder in the world trying to claim what they thought was being held for them in good faith. It will be a good old fashion bank run on the exchanges and I predict they will be shut down and allowed to deny delivery. When, that is impossible to say. We are approaching the trigger event rapidly. I would be shocked if it makes it another 5 years, but you never know, the white shoe gang can be pretty creative with their ponzi schemes and at robbing the public blind.

Decade of Silver/Gold vs. Fiat

Here are the tables comparing silver/gold to all major fiat currencies from James Turk's recent post http://goldmoney.com/gold-research/gold-rises-in-2010-to-end-a-stellar-decade.html Enough said!