BLOG:    2009-2010 Archive BLOG


BLOG Archives 2007-2008

BLOG Archive 2006

BLOG Archives 2000-2005


We've all seen some of those other sites; their 'blog' started about six weeks ago and has maybe 12 posts. 

Well, they've to start somewhere...


Here at the CoinMine, we've been analyzing things in quite a bit of detail for the past nine years; and we've been

spot-on more than a random roll of the dice would indicate, since 2000!.  Browse below through a few hundred pages of

observations, picks, calls, diatribes, rants, and raves and mine your own nuggets.



12.30.10    Metals Performance for the Year

2010 Metals performance.

Gold                %27.74

Silver              %80.28

Platinum         %18.08

Palladium       %96.77


12.29.10    Shovel Ready Jobs in NYC!

Plenty of SHOVEL jobs available in New York City. Too bad the sanitation union (the ones that run snowplows on garbage trucks)
has ordered a work slowdown! This ensures they get more OT for shoveling snow (while they are letting the garbage pile up).
When the snow melts, they then get more OT to pick up the rotting garbage! Union tactics at their finest!

12.29.10    Money Laundering = Coin Cleaning

 And the Vatican cashed in on the action:


12.29.10    On Cleaning Coins as a Public Service

“Quarters look like sparkling silver bits.” 

Cleaning clad pocket change is fine, but NEVER clean your old silver or copper coins.

Scrubbed clad (coins with no silver) don’t have any collectible value.  However, old coins that contain silver – especially those before
WWII has collector premium – called numismatic value.

A cleaned coin removes the natural patina, or original skin, off the coin – leaving a much less desirable piece of numismatic history. 
Numismatic coins that have extra value due to rarity and condition can lose up to half their value immediately once improperly cleaned.

You can find much more about the nature of coin cleaning and conservation here: 


12.29.10    Chromium 6 hubbub, this will drive up Mining costs in NA

The EPA is moving toward regulating Chromium +6 per both Safe Drinking Water Act and Clean Water Act. 
The US Army, via Corps of Engineers, has spent TENS of MILLIONS fighting Cr regulations b.c. it is near impossible to differentiate native
(background) Chromium from that created via industrial process.

The EPA will promulgate Maximum Contaminant levels per Safe Drinking Water Act. This will cost water purveyors to add further remediation technology, which will simply be passed on to potable water customers.

This story had gotten traction in the trade.


What is even more disturbing – and NOT getting the deserved press/discussion - is the current effort to establish numeric standards for Cr and other metals via the Stormwater regulations. Specifically, NPDES elements for municipalities via Phase II.  Cities, and everyone conducting work in the cities (contractor) will need to monitor (physical chemical samples) in impacted areas to ensure metal content is not above arbitrary standards.

The mining industry works in areas that are, by definition, rich in metal-bearing soils.  How much extra money it will take to comply with Cr+6 monitoring is just a guess at this point, but will be a real/fixed/increasing cost.

12.29.10    Brigus Gold Sell Off (BRD:AMEX)

Was off over 6% earlier.  Seems overdone IMO; now coming back up. No real news that I can see.  Strong support @ 1.88.  Think it should continue up to 2.35ish or so before a real possible decline…

12.29.10    Continental Army Depreciation Certificate

“This 6 percent interest-bearing note was meant to account for the depreciation of pay soldiers received while serving in the Continental Line. The note offered the soldiers inflation protection, as the value of the note would be set against the value of corn, beef, sheep wool and sole leather if the value of continental currency dropped.”

Sometimes the NEW note isn’t a better note…

The note was tied, in part, to the increase in the price of beef and leather.

(see bottom of page)


On aside, anybody catch the WSJ article two days ago regarding the death of the pork belly futures market? Interesting piece!

12.29.10    Cost of Christmas - 1960


A few lessons:

*Should have kept a silver dollar, now worth over $30 FRN; an increase of 30:1

*Should have bought the used 1951 Willys station wagon jeep for $150. TANGIBLE ASSETS maintain value.  Try to buy a 1951 Willys wagon now, TOUGH.  On ebay right now, there is not even one 1951 available.  You can buy  1953 wagon for between $1,700 (not running, parts car) and $6,500 (about the condition of a used 1951 wagon would have been in 1960!) An increase of 43:1

Using the ration of 30:1 as the standard cost of theft via inflation, one can measure the increase in Cost and Value for a fairly wide range of goods.

Interesting stuff…

*Train set, Lionel, "Santa Fe," 5 car with diesel engine, 24.66/est

This did not increase at the inflation rate, over time.  I just priced an equivalent train set last month, cost $400 for only a 16.2 x factor increase.

12.29.10    question authority?

Remember, if you question the TSA charade (especially from a vantage of professional knowledge and training), they will come to your house, steal your possessions, and throw you in jail.  This is why they hate us for our freedom!


12.29.10    How Tax Hikes Destroy Jobs

Pretty hard to argue with this in-depth analysis:


12.17.10    Sold Corn for a nice profit.

12.21.10 Gifts to Kids - Not the GirlScouts Administration

This year I stopped my support of the Girl Scouts.  They had sent a mailer highlighting how they taught girls ‘environmental activism’ and a number of other dubious pursuits, none of which aligned with their mission statement.

I excoriated their philanthropy lead, and copied a third of their corporate board.  Only the philanthropy lead responded, with a half ass ‘that isn’t what we meant’ garbage trough.

Forget them.

Better and more deserving organizations out there!

Better off donating to a local alternative school

Kinross Gold, actually, has been making some very nice donations to education causes over the last couple years. No fanfare, no press releases, very classy KGC.

I am rather impressed with their company they have built over the past 5 years, from many disparate parts.

12.17.10 Sold GoldCorps (GG) at about $44.45

12.3.10    Mono Lake Discovery - Bacteria that Live on Arsenic

More than that, they've built As into their DNA!

Scientists (but not reporters) have known for years about the existence of bacteria that make a living on Arsenic.

This article from 2003 notes there are at least 16 different bacteria that digest As.


For at least 25 years there has been evidence that certain bacteria along the ocean hot vents were making a living off arsenic and heat.

One of the four largest remnants of ancient Lake Lahontan which covered most of Nevada.  These lakes, like the rest of Nevada (and parts of Ca, Ut, Or) are part of the Great Basin.  This means there are no rivers which flow to the ocean, all waters flow into basins, and evaporate.  All these lakes are outstanding places (Great Salt, Pyramid, Walker, Mono).  Tahoe is in the great basin, but is actually an alpine lake, since water flows out of Tahoe (and ends up at Pyramid (and formerly in Lake Winnemucca).

Mono is one old body of water (three quarters of a million years+) with an amazing salt soup.  There is a hot spring along the water’s edge.  Closed to humans, saved for the wildlife. (I’ve been in it but not a great spot; especially with so many other awesome soaks nearby).

The colors of the adjacent Sierra Nevada ridge at sunrise and colors playing upon the water at sunset are unsurpassed.  Great place to take a walk, beauty extends for miles.

The lake’s unique chemistry and resultant water color, and mountain surroundings provide for some particularly beautiful plays of light.

So many photogenic scenes along the lake that for many years there was an Ansel Adams photography studio on the lake. Closed down six or seven years ago.

For many years an old motel chalet and lodges stood empty, decaying across the highway.  That was my dream property. Was going to fix it up, put a wife in each cottage!

Someone else fixed the place up eventually


The Lake had been dying. All five streams that feed her were diverted to L.A.  About 10 years ago the city and natural groups and the state finally came to an agreement to keep enough water flowing into the Lake so that the island in the middle could remain an island.  (When the water level gets to low the land bridge allows coyotes to reach the bird preserve).

Tuolumne Meadows (Yosemite); Mammoth, and a host of other outstanding areas (and mining history) are within 30-60 minute drive.

Definitely worth spending a couple days there, if you have never been.

12.3.10    Two More Nevada Mining Towns will Return to Dust (gypsum dust, actually)  


Gerlach is the gateway to the Black Rock Desert.  Great place to get some space!

12.1.10    Sold Half my UXG

12.1.11    The senate passed BY VOICE VOTE the newest set of burdensome regulations

These were specifically designed to hamper the small/local/organic farmer at the expense of the large agri-corps.  

Yes, the new law WILL make it harder to collect seeds, and penalize those that do not purchase GMO seed.  Read here why Monsanto, Archers Daniel Midland, and those adding the GMO and poisons to your food SUPPORTED this bill and paid off the Senate to pass.


11.24.10    When a Corporation Controls too much of Its Supply Chain

From what I have seen a corporation that controls/owns their vendors and suppliers can prosper over the short term, but lose over the long term.

If a corporation controls the vendor, the corp will ensure the vendor supplies EXACTLY what they want, to their specs, on their timeline, to fit their needs only.  Since the corp gets what they need, they improve efficiency and profit.

However, if that vendor does not supply any other firm, how will the vendor learn the advances in the sector/industry?  They won’t! 

Also, if the specifications are rigid, how will the vendor introduce changes that will improve the project? They won’t!

So in the long term, the vendors and corp are on the same boat. No new thinking, no new developments, no breakthroughs – just groupthink.  Looks like part of what took down GM/ACdelco.

Good idea to learn how to value corporations. Lots of successful fundamental trades made by comparing stock price to underlying corp book priced.


11.21.10    TSA Molestation of the Citizenry

Remember how TSA stated in public releases that the body scans COULD NOT be released because they would not be saved?


(Well, at least *I* remember that)


They lied about this, just like they lie about every thing else.


For a start, here are 100 saved and released images:




Hey, you ever wonder why Israel DOES NOT DO THIS?

Don't they have a bit more experience with this terrorism thing?

How come they aren't setting up a complete police-state apparatus?

Answer: Because the system is NOT designed for safety, it is designed to keep you compliant with the military-security police state.

And the fools clamor for more!

'Give us Iris Scans for expediency'
'Molest our children for safety'
'Perform cavity search on my wife for our freedom'

NOW you know what it feels like to live in Germany, 1938 or Cuba 1958 or China 1966. The people cried out for even more government control and they reaped what they sowed...


11.21.10    One of the Largest Gold Nuggets in the US Sold



Hope the new buyer allows visitation rights!


Read what the doofus casino manager says - 'Wasn't drawing the public interest anymore'.


Yep, that's because the Casino kept the same small, obfuscating, display case since the 1970s.  The Golden Nugget is located next to a gold-coin focused coin store and across the street (sorta) from the Carson City Mint (Museum).  A little marketing could have gone a long way to drawing traffic and public interest.  Too bad, I always enjoyed viewing this collection on my way to the craps table.  They neglected the collection so badly, never even cleaning the class so one could take a decent picture.


Regrettably, poor management has been driving this casino into the ground.  I give them another 18-24 months before they close their doors.


The other largest gold nugget collection in the US, displayed at the mineral museum in Mariposa, really is worth the visit on your way into Yosemite.


11.20.10    Interesting survey on expats living abroad, satisfaction with new host country


USA actually ranked much higher than I thought!  For as bad as america has declined

I can't get past the fact that immigrants are still arriving here FROM other place. Sure, the pace has slowed down from what it was six years ago, but the pace of inflows has always varied.

I've known quite a few expats that tried Nicaragua, Belize, Ireland, Thailand, Mexico, Australia, Vietnam, France, Germany, Scotland, Costa Rica, Argentina, Caymans and Jamaica.

I do know US expat community still growing in Brazil, Panama, Chile and northern Italy. But the flow of volume still comes this way.

Rather dour to consider as bad as it's getting here for many folks, it's even worse most everywhere else...

One of the hardest factors for Amercians to adjust to abroad is that the expats miss ice cubes and bowling

BINGO! They miss the CULTURE, high or low.

Fact is, the US is the dominant culture.

IF you examine your life and surroundings, as obviously you have done, THEN you will change your values much faster than the dominant culture.  As such you will no longer fit that culture and seek another more to your new value system and liking.

That search typically proves unfruitful, the grass is always greener, etc..

I spent two months in Belize in 1991.  One of the most beautiful places I have been, that barrier reef, the Cockscomb mountains, the savannah plains rolling to Tikal…

But I missed not being able to have a cold drink, or play a game of pinball, or 1,000 other little conveniences that we take for granted every day.  Eventually I realized by the previous dominant culture (Mayan) died off: their surroundings were unforgivingly brutal.

Also, as corrupt as we are – many folks still uphold the rule of law.  I have not found that the case through much of Latin America and Asia.  Even in 91 cocaine money ruled Belize.

About five years later a family I was close with moved to Belize, sold everything in Ca and ‘moved for good’.  I gave them five years.

They lasted three.

Switzerland, eh?

Ya!  If you have been given a year to live before dying of terminal cancer, move to Basel.  Boredom will kill you in six months, saving you hospice…


11.20.10    Lincoln to Disgrace the US Dollar Coin



Why not, he disgraced the republic. Only fitting he should represent the value of a dollar now being worth one cent!


James Buchanan, Franklin Pierce and Millard Fillmore ALL KEPT THE UNION Together.

None of them saw fit to instill martial law under some bs pretext. Buchanan proved himself an incredible statesman, as a little research proves.


Poor Lincoln, a soul so tortured he still roams the presidential suite...

And every time I get the chance to provide a mini-lecture on US financial history, he gets his comeuppance.


11.19.10    The End Result of a Fiat Fractional Reserve Banking Debacle


11.19.10    The Jobs are NOT Coming Back




Why is the investor money no longer flowing to the US?


Because the US governments dissuade investment via unreasonable environmental regulations, red tape and taxes.


Pretty basic...


11.18.10    40 Years of Fraud, Theft and Lawbreaking

And Charlie Rangel gets a 'censure'. This means he loses the nice parking spot at the capitol building, seriously.  The man had 3Million$ in legal bills! How does this happen? Well, he takes his campaign finance money, gives it to his lawyers (who skim 20% off the top) and the rest goes to chuckles bank account in the Bahamas.  This is how politicians get rich...


11.17.10    So you Want to be a Real Estate developer?

Sometimes you have to skip past the first couple intro chapters to see where all the hard work is eventually leading. That is, rather than always focus on the baby steps sometimes good to hear the big picture from one that has ‘been there, done that’.

I found this talk rather enlightening; interesting that he *starts* with architecture and occupancy rates…

Fast forward through the introduction and start at minute 11 when the presentation begins.



11.17.10       Metals and Stocks


kept selling off Monday and Tuesday, as I mentioned they should.  Silver is still the more bullish of the metals, did not have the bearish divergence that gold did.

Still see silver going down to 23 (convergence of the 50 day EMA and the middle rail of the current trendlines); or $22.10 (bottom rail) or $19.25 (200 DEMA and bottom band support).

Still see gold to $1,325; maybe more, with today as a sucker buy

But you never know, staying in cash instead of metals has been a very poor strategy for the past decade…

My sells had much better margins of safety than the two spec buys; the buy volume has been anemic.


11.16.10    The Political Favors Get re-paid

You get the shaft.  Here is just the start of union groups and special interests with a 'waiver' from the 'Health Care Act'




11.15.10    Google will get you to think what THEY want you to think!



Really, I found a while back a need for a decent glossary that ties monetary, mining, coins, trading together.

For example, if you just google (or use a better search index like dogpile or ixquick that doesn't track and sell your queries) 'banjo', you will find all kinds of 4 and 5 string entries.

Now don't get me wrong, I love the plectrum world and have an Orpheum Number One banjolin myself, but google refers you to another cesspool of lazy thinking - wikopedia.


The wiki agents have another mandated limited view of the world.


The reality is, banjo also has three mining/geotechnical meanings.


You could spend useless hours trying to get wikipedia/google to tell you that.

So, I made my own useful glossary ( always a work in trial).


Hope you find it useful...



11.15.10    On Trading Rules

1. Monetary Philosophy determines a trading Philosophy

2. Trading Philosophy determines a Trading Focus (industry/sector)

3. Trading Focus determines the Trading System

4. Trading System Determines Trading Rules

The trader eventually and constantly tweaks and adjusts these rules to fit their own predilection and experience.  These rules morph into decision points, mechanically implemented yet continually back tested.  The underpinning philosophy may change over time, demanding a change in the focus (and in turn the systems and rules).

Here is a nice collection of various trading rules:


Note that these rules generally flow from the two original trading rules list.  The first appeared in 1923, based upon Jesse Livermore’s experience as published in Reminiscences of a Stock Operator by Edwin Lefevre:


Of all the speculative blunders, there are few greater than trying to average a losing game.

Always sell what shows you a loss and keep what shows you a profit.

You cannot try to force the market into giving you something it does not have to give.

The courage in a speculator is merely the confidence to act on the decision of his mind

A loss never bothers me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocketbook and to the soul.

The man who is right has two forces working in his favor – basic conditions and the men who are wrong.

The trend is evident to a man who has an open mind and reasonably clear sight. It is never wise for a speculator to fit his facts to his theories.

In a narrow market when price moves within a narrow range, the thing to do is to watch the market, read the tape to determine the limits of prices, and make up your mind that you will not take an interest until the price breaks through the limit in either direction.

You watch the market with one objective: to determine the direction of price tendency. Prices, like everything else, move along the line of least resistance.

In the long run, commodity prices are governed but by one law – the economic law of supply and demand.

It costs me one million to learn that a dangerous enemy to a trader is his susceptibility to the urging of magnetic personality combined with a brilliant mind.

Have a profit – forget it! Have a loss forget it even quicker!

It was never my thinking that made the big money for me. It was my sitting, my sitting tight.

There is only one side to the stock market and it is not the bull side or the bear side, but the right side.

The second major list was developed by W.D. Gann in 1942:


Never risk more than 1/10th of your capital in one speculation. ( * )
Use Stop Loss orders
Don't overtrade. ( * )
Never let a profit run to a loss.
Don't buck the trend.
When in doubt, get out.
Trade only in active stocks. ( * )
Spread risk among 4-5 issues - not just one.
Never fix your price, trade at market. ( * )
Don't close positions without a good reason.
Build an emergency fund.
Never buy to get a dividend.
Never average a loss.
Never get out because you've lost patience with a position.
Avoid taking small profits and big losses.
Never cancel a stop order once you make a trade.
Avoid getting in and out too often.
Be just as willing to go short as long.
Never buy because a price is low, or sell because a price is high.
Be careful about pyramiding at the wrong time.
Select stocks with a small volume of shares outstanding to pyramid on the buying side, and the ones with the largest volume of stock outstanding to sell short.
Never Hedge. Get out instead.
Never change a position without a good reason.
Avoid increasing your trading after a period of good trades.

Notice that these two canons of trading rules are actually rather different!


Different Philosophy and thus different Focus (Stocks vs. commodities).

11.12.10    It Starts as a Cartoon


But becomes nightmarish reality in just days...



They Hate Us for Our Freedoms...





11.12.10    Metals Markets

Gold and Silver should correct quite a bit more IMO. If not, the next move up could be very impressive indeed!

Gold has next decent support at $1,325. Gold outperformed most all the other metals today, showing relative strength.

Silver can fall all the way to 23ish and still be in the powertrend up.

Same for both the DJIA and SPY, both are re-testing the very long term trendline, from below. IF it turns down, turns down hard, if it breaks through – potentially very impressive gains.

Sentiment and internals have turned down, though:

Copper is at a triple top.

XAU is at the top of a trendline going all the way back to 1990! Quite bearish. Similar to the hard metals, if it breaks through Katy bar the door.

Note the weekly XAU printed ANOTHER higher high. Stokes and candlecharts point down whereas macd and aroon in the positive.

My guess is momentum fades and XAU falls to 195ish, maybe lower BUT if it breaks up through the trendline ANOTHER major buy signal.

IAG has that gap that will set resistance.
Hecla Insiders selling the crap out of it, just one example of many:

GSS (tanked this week on earnings) and CORN (not even close to the run that Sugar and others have had) look the best here from a risk/reward perspective, if you have cash to deploy IMO.

I have begun to sell a little more than usual for the short term, but the long term should be up for hards, softs, equities due to Quantitative Easing II…


11.11.10    Recent Change to California Regulations

Require that life insurance companies notify customers that if the policy holder is considering a change in their policy, to consult with a licensed insurance or financial advisor.


So, does this work in the Insurance Company favor or not?


Depends on if you consult an insurance advisor (salesperson) or advisor - who should give quite different answers!


Politicians need to be seen as 'taking on' the insurance industry over the past year.


Could be that the large NY brokerage houses are funding this 'advice' to shield heat from their obvious criminal activity?


11.10.10    The Joys of Silver

Humans have used silver for the past twenty centuries because it is an effective antibacterial agent.  Remember silverware?

Silver cutlery replaced lead since silver (Ag) is also non-toxic to humans (unlike lead) except in ultra high doses, typically via intravenous injection or abnormally persistent oral doses.

Today physicians use Silver sulfadiazine and various nano-silver applications in bandages and burn creams for the antibacterial/antifungal properties.  There are dozens of other medicinal applications.

Alcohol will lyse a bond (kill a bacteria) but is of incredibly short duration since it will evaporate within a minute; whereas silver delivered as a cream, gel or mist is persistent enough to prevent bacterial colony growth after the initial germs are killed.

It took us 2,000 years – but we are back on track understanding the medicinal applications of silver.  In large part, the major pharma companies have demonized simple medical applications in favor of their monopolistic patents.  Their stranglehold is fading though they pay a large array of admen to post illogical and incorrect hit pieces on natural remedies proven over the past 100 generations of humanity…

11.9.10    Solid Propellant Missile Launched From Sea 35 Miles off Coast of Los Angeles

And the military/government ask us to believe

a) They don't know what it is (but nothing to worry about!)

b) Just common contrails from a plane (since you won't believe the first B.S. answer)

Note: contrails do not occur at such low altitudes, one way to tell the difference between chemtrails (or propellant exhaust) and vapor trail


11.5.10    Hope That False Flag Bomb Attack doesn't go Off Tomorrow Like Planned in the Simpsons Cartoon!


11.3.10    Ron Paul vindicated.

I first voted for Ron Paul for President of the USA in 1988.  If only a few more citizens were awake then we may have been able to prevent some of the massive fraud and decay in our country. Alas, the blind snickered and giggled, but usually just asked 'who'?  Most folks could not even name the six or seven  parties that typically make every major ballot.


Time marched on, and the country further swirled down the toilet.  But Ron's stature grew.  They realized he wasn't flashy, and not even that great a politician. Just an honest man, doctor, husband father and patriot.  One that could explain the complicated financial madness in layman's terms.  By 2006 Ron Paul led many republican straw polls for president. He actually won the more than one states' presidential nomination when he ran again for president in 2008 His following grew immensely.


Today he was named chairman of the House Monetary Policy Subcommittee.


Vindication at Last!


(p.s. His son was elected US Senator yesterday, if you needed just a little more proof!)


11.3.10    The Nevada Election Was Fixed


In Nevada the state regulators have access to software that controls the slot machines; non-registered software is illegal.  The diebold voting machine software is 'proprietary' information.  Guess who services the Diebold machines? SEIU technicians!


Nv Gaming inspectors have immediate and mandatory access to NV slot machines.  They can shut down malfunctioning or broken machines on the spot.  The state electoral commission has  NO ACCESS to the diebold machines.


Slot machine manufacturers are subject to background checks and employees are investigated for criminal records.  Diebold programmer are anonymous!


Slot machines are certified by a public agency, all data subject to sunshine laws. The diebold machines are certified by private for-profit corporations who release no mandatory data!


In Nv, if there is a handling dispute on a slot machine payoff the Casino MUST contact the government regulatory board who investigates machine function and payout record.  When the voter complains about a fixed diebold machine, THERE WAS NO MANDATORY INVESTIGATION.


Read about the voters in Las Vegas who claimed Diebold electric voting machines would register Reid before they even voted!!


The election was fixed. 9:5 true odds.


(And here's the kicker.  Guess who certified the vote in the most populous county in Nevada?


Rory Reid, Harry's son!!


11.3.10    Meet the New Boss

Same as the Old Boss


11.2.10    How to Calculate Price per Earnings per Growth:

2010 Annual Earnings (Current Year ending Dec 17): 6.30
2011 Annual Earnings (Next Year Dec 18): 7.49
Projected Growth (1 Year): (7.49-6.30)/6.30

 = 19.62% growth year over year.

Note: Just because the numbers that you calculate don’t exactly match stockhouse or  yahoo or etrade, so what?  Yahoo et. al gets its data feed from more than one source. One feed will provide one # and another source feed will have a different one.

Think how many different data points Yahoo has every day? Even if they are only wrong 2% of the time that is a VERY large number of bad datum points.

PEG is a good metric for retail sales, not so much for other industries (such as mining; other aggregate, etc).

In retail sales, there is even a better forward indicator IMO – PES Price per Earnings per Sale. Also like Price per Sales and Revenue per Sales. Nothing happens until a sale is made. 

For example, retail restaurant chains are so flash in the pan (about a three year sweet cycle) that you need to know if the sales continue to grow. If not, WATCH OUT.  Remember Boston Markets? Yeah,  they were REALLY hot for three years. Now Bankrupt.  Black Angus Steak House? Same thing.

Look at the sales curve for those restaurant and add Applebees, PFChang's, Round Robin, etc.

Now overlay for the restaurant chain you are currently analyzing...

10.31.10    Rare Earth Metals – A Short Primer

Rare Earth Metals (REE) are elements, typically metal, that are required for high tech development and manufacture of electronics, aerospace, military and similar products.

Some examples include:










Different analysts include varying example in their REE basket.  For instance some would include Uranium while others would not.

Since REE are required for military applications, the mineral stocks are strategic store – a very competitive market exists for the rarest REE.

Extraction of these rare earths are similar to precious metal mining with a few notable differences.

  1. Whereas precious metal ores have been sought out for a few thousand years, the REE have only come into demand in the last 70 years (some of these elements were only ‘discovered 100 years ago).   This means that the mining infrastructure (power, roads, water, and human resources) do not exist where the ore bodies exist.

  2. The mineralogy may require different engineering and technology than have usually been utilized on precious metals mines.

Some of these extraction scenarios produce many more tons of overburden (waste rock) than precious metal mining. This is a social and environmental aspect that demands significant personnel resources and goodwill capital.

Here are a few popular blogs to read about REE.



NOTE: These sites may receive financial subsidies by manufacturers/miners for product placement and write-ups.

How to Invest In REE

Option One – Speculative: Stock Picking.

This option requires the most amount of due diligence and time and will typically only pay off for the savvy. You will need to focus on a sector within the industry. For example, if you look at the Uranium slice of the REE pie, you might find choose to stick with the larger producers such as Denison, Cameco (CCJ), etc.

Or, perhaps you want to allocate some very speculative wagers into micro firms that may be on to the next bid ore body and determine that Ucore or Fronteer, Uranerz (NYSE:URX) or Paladin have promise:

When you become familiar with current producers, and learn their ore bodies, at that point you can begin to extrapolate from that ore body and predict which explorers in nearby areas have higher likelihood of production.  For example, Uranium City in Saskatchewan might provide a more likely source of future uranium deposit discovery than Chicago, right?

Option Two: The Funds

Pinetree Capital, PNPFF, has multiple uranium stocks and is one of the very few funds with exposure to the rare earths; the fund also holds potash and precious metal portfolio.


Option Three: ETF

The Rare Earth Metal Fund (REMX) just started trading.


(and I will buy REMX tomorrow)


10.29.10    Happy Nevada Day

The Nevada Miners lived in some far away places, for the time, and built civilization amongst the alkali sagebrush scrub.  Austin was just such one example:

[IMG SRC=http://i295.photobucket.com/albums/mm146/weepah/postcards2/AustinNvcirca1908jpg.jpg]

Once in a while, the miners needed something to take their mine off another 10 hour shift under the earth.  They left a clue, a token, from one of their favorite past times; this one from the greatest gold camp on the planet – Goldfield Nevada!

[IMG SRC=http://i295.photobucket.com/albums/mm146/weepah/Tokens/TheDen125centtokenRSmall.jpg.jpg]

The camps of Goldfield, Tonopah and Beatty were roaring in ’06. 

In Rhyolite the miners flew their flag high, showing their strength in numbers:

[IMG SRC=http://i295.photobucket.com/albums/mm146/weepah/postcards2/RhyoliteMinersUnionMarchjpg.jpg]

Alas, they overplayed their hand in Goldfield following the panic of 07.

The owners Wingfied and (Senator) Nixon called upon their friend, Governor Sparks who sent in troops.

The Wobblies (union) were broken forever!

All that Nevada dore (gold)

Ended up somewere.  Maybe a piece in your pocket.

Before that stop, the gold took a breather in the basement of the San Francisco Mint:

[IMG SRC=http://s295.photobucket.com/albums/mm146/weepah/?action=view&current=SFMintCoinShow11609007.jpg.jpg]


10.29.10    Original Charlottes Web Cover Art Sells for over $150,000

Estimate was only $20-30k




10.28.10    This Site has a Good Coin Melt Value Calculator



10.28.10    Will the US Treasury Take the Nickel out of Circulation?

Or will they debase the coin, to plastic or zinc?


Nickel currently has about 7.5 cents of metal.


We've been selling rolls of 1940's and 1950's nickels for a premium!

Even then, we are selling less than the intrinsic value...


10.28.10 Will the Fed Give up on Paper Printing

and will the US accept a plastic dollar bill?


Many countries use polymer notes:



10.28.10    Federal Reserve Delays Release of Redesigned $100 Note

they can't even get the scrip right!

A problem with the paper creasing during printing has delayed the release date of the redesigned note.

On October 1, the Federal Reserve Board announced a delay in the issue date of the redesigned $100 note. This new design incorporates cutting-edge, anti-counterfeiting technologies and the Federal Reserve imposes strict quality controls to ensure that users of US currency around the world receive the highest quality notes.

The Bureau of Engraving and Printing manufactures Federal Reserve notes and has identified a problem with sporadic creasing of the paper during printing of the new $100 note, which was not apparent during extensive pre-production testing. As a consequence, the Federal Reserve will not have sufficient inventories to begin distributing the new $100 notes as planned.

The Bureau of Engraving and Printing is working to resolve this problem, and the Federal Reserve Board will announce a new issue date for the redesigned $100 note as soon as possible. The originally scheduled issue date was February 10, 2011.

Source: Bureau of Engraving and Printing

10.26.10    CA State EPA Perpetrates Fraud, once again

The California Air Resources Board (CARB) has belatedly disclosed that its scientists have overestimated state diesel engine emissions by 340%. CARB is the powerful state agency charged with researching and regulating air quality standards. These diesel pollution estimates were the basis for costly 2007 regulations.....

.....Worse, last year members of the CARB learned that the author of critical studies on diesel engine pollution, Hien Tran, had falsified his academic credentials. Tran admitted his deception, and accepted a CARB demotion. However, Tran’s analyses remained the basis for the aforementioned pollution regulations imposed upon operators of trucks, buses and other diesel-powered machinery" ....


10.21.01    Tweets Precognize Stock Market Action?!?


The general mood among Twitter users can predict the rise and fall of the stock market almost a week in advance, a new study has found.

A computer scientist in the US has discovered that the correlation between the Dow Jones and the collective public mood was almost 90 per cent accurate.

The link raises the startling possibility that stockbrokers may one day be able to make bets on the stock market based purely on how people are feeling on Twitter and blogs

Read more: http://www.dailymail.co.uk/sciencetech/article-1322133/How-monitoring-Twitter-users-feeling-predict-stock-market-days-advance.html#ixzz1303watsm

10.21.10    The English are taking copper out of the 5 and 10 pence coins

Will used nickel plated steel.

The British govt figures it will save 10M lbs a year.

But, the net result will actually be a loss to economic production since the changes to vending machines, parking meters, etc will cost over 40million lbs.

10.21.10    Is There a Difference Between 440 and 528 Tuning?

Someone stated:

“nearly all modern music is recorded in A440 Hz, which was identified by the military in the 1930s to cause mass hysteria and nervousness in humans...it soon became the standard everyone uses to this day.”

To Which I replied:

No, music is recorded in a key, not in Hz.  Granted, many guitarists tune to A440 but that is only b.c. tuning to center C C523.3 (Piano) is a major pain!  Guitarists just picked up from where violinist and other strings left off. 

Today many folks tune to open D or A flat, especially when they are going for mass hysteria! Lol.

In fact, 440 was only standardized b.c. some Germans who invented the tuning fork were able to standardize a typical production run at that Hz.  The original tuning fork was about 20 Hz below 440.

Pythagoras used 256Hz for the basis of his intonal scale.

The note that really causes human discomfort is The Brown Note, har!

Actually, the subsonic range (infrasound) below 20Hz does cause human discomfort.  There have been numerous studies of infrasound effects on the human system (we are an electromotive field ourselves).  Germans studied the effects going back to the 1920s.

Many researchers have concluded that paranormal activity is actually caused by repeated infrasonic waves, reported as a general uneasiness. More pointed, repeated exposure to the 17-19 range can actually affect the peripheral vision, causing the brain to ‘see’ slight objects in the far fields of vision where none actually exist.

That phenomena of a repeated infrasonic wave causing reports of paranormal observations originally occurred in factories where machinery would hum at a constant.

When the cause for the phenomena was discovered, it was given a name: “Ghost in the Machine”

10.18.10    Found Out I Bought  Counterfeit (altered) Coin

1932 Quarter with added D Mintmark.  I bought it in a collection, and was rather suspicious of the mark. Glad I sent it in rather than try sell it!  Been pretty lucky, actually. First counterfeit coin I've purchased. (Well, there may be another one or two I picked up on purpose for a specimen piece).  No chinese fakes, yet...

10.17.10    What deflation feels like, the story of Japan


10.15.10    MERS Mess

The mortgage market is beginning to lock up.  Heard quite an interview on the radio today.  Here is the site of the radio host:



Today's show should be up there soon as an archive. The segment was with the second guest.


Last week Wells Fargo, Bank of America and a couple other government-financed crime enterprises announced a moratorium on their foreclosures.  Note that a full 30% of the US single family housing stock are foreclosed homes.


The lawyers smell blood and have initiated a feeding frenzy.  Why buy a house under this dark cloud?


Here is another take:



Bob Chapman speaks to the subject beginning in minute 7.  Says the mess will take years to unravel.


Big Mess


10.4.10    History Leaks Out




WASHINGTON (AP) - American scientists deliberately infected prisoners and patients in a mental hospital in Guatemala with syphilis 60 years ago, a recently unearthed experiment that prompted U.S. officials to apologize Friday and declare outrage over "such reprehensible research."

Just imagine the studies they are currently conducting on you!


10.3.10    The Incumbent Love Fest Didn't go so well

Look at the large patches of grass on either side of the reflection pond.

AFL/Move On can import all the Section 8 housing freeloaders they like, but the real working class stayed home.


MSNBC really embarrassed themselves this time!




Image: A woman and man make peace signs as thou


10.2.10    Asset Rich, Cash Poor = Production Land

The first case I heard this term, and still believe it really applies best, is in regards to farm/ranch land. Sometimes these large parcels of land have been held in the family for generations and, as towns and cities grew up around the parcels, the land has grown greatly in value.  As a result, the taxes on the land have also gone up.

However, the property does not cashflow any more than it ever has.  Hence, the underlying asset is worth large $$, but the land is illiquid. Furthermore the sellers may be very reluctant to sell the family parcel that has been held in one name for 150 years; something akin to selling the birthright.

We know dairy farmers in California and Ranchers in California/Nevada who are in a very tough spot right now.  Milk and beef have not experienced the same boom that many other hard commodities have experienced in the past 10 years. This fact is compounded by price fixing by the government. (In California, Department of Food and Agriculture sets the price of milk).

More regulations, especially the Concentrated Animal Feeding Operations section of the Clean Water Act have really squeezed dairy operations. 

Of course, the mom and pop farmers also have to compete against an increasingly consolidated corporate farm.  Mom and pop don’t have the array of lawyers that Monsanto, Con Agra and Archers Daniel Midland have.  SO, the small family unit has become squeezed out of markets.  If you are forced to use GMO seed, and the market for such if falling, you lose market share. This compounds the problem of increasing price of supplies (especially fuel and seed).

Rather than sale the land outright, some of the mom and pop family farmers have put their land into conservancy land trusts.  Depending upon how the trust is set up (through either the Williamson Act or Farmland Conservancy Program), this trust either freezes the tax rate or may even pay a large one-time cash payment in return for keeping the land farmed ‘in perpetuity’. In essence the state puts a conservancy lien (‘easement’) on the property.

Nevada faces different challenges to land value and illiquidity.  Some of these factors have been quite recent due to major land deflation across the state (and a very challenging water rights environment).

Naturally, the political machinations have set up some very nice means to profit from the scenario via special tax districting...

10.2.10    Estate Sale Today

The guy selling the stuff, after I asked about the coins, started asking me about gold.  He had just started researching the fed reserve, read Jekyll Island, etc.

He asked if I thought gold would still go up.

I asked, in turn:

Have you bought any yet: “no”

Then gold will still go up.

I asked: Do you trust the banksters;


Then gold will still go up.

I asked: Do you trust your politicians?


Then gold will still go up.

He volunteered he was buying/selling tube transistors, communications equipment.

I thought that was great, especially considering my belief the next hot war theatre will involve use of EMP weapons and I brought up Tesla.

Then the other guy in the room started mentioning some of Tesla patents….

Folks ARE waking up.

And, California decriminalized marijuana yesterday – definitely a chink in the private prison movement.  They haven’t even been able to criminalize being underwater in your mortgage yet, so the prison trade took a big hit.

Look for bad news, that’s what you’ll find.

Actually talk to folks, you might be surprised…

10.1.10    Beginning of the Fourth Quarter, 2010

Things should get interesting! 

Market Health

Getting harder to unload larger coin/bauble collections, whilst demand for bullion coins is still quite high.

The demand for better mining/railroad scrip; obsolete and confederacy notes, etc continues to strengthen.


9.26.10    Why forced diversity never worked:



9.26.10    A Decent Read



9.26.10    Do believe that PCGS will eventually need to change their slabs,

ala NGC,

to allow for visibility of the edge.

9.24.10    Johnny Cash: Hurt

Song written by Trent Reznor, recorded by Johnny just a while before he passed on. Song written about a junkie, sung by a recovered one. 

The scenes with the memorabilia were filmed at the John Cash museum, started by his mother, which had been defunct for 12 years. 

At the scene with the banquet table, the producer said - John, this is our last scene go ahead and throw all the food off the table or whatever you wan't to do to add some drama.

John was at the banquet table alone. He poured out a glass of wine all over the table.  He was alone b.c. of the loneliness he created from the booze and drug addiction, and from all those who passed on before him.


9.24.10    market technicians association


any decent content?

they held their conference in San Francisco Sept 17th; same day as the SF Mint Coin Show. I went on the 18th to the coin show. Traffic was not nearly as good as the first show last spring, but much better than the show last fall.

9.24.10    Tour of the SF Mint well worth it.


The guy that gave the tour this time was an architect and former Mint Museum employee.  The mint stopped production at that facility in the 1930s, but reopened a Museum and administrative functions in the 70s only to shut down again in the 90s.

Learned that the mint foundation was re-engineered based on the October 1872 earthquake. Did not previously know that. The dolomite foundation is built upon a bed of sand. The entire bed of sand is meant to float, like a surfboard, during soil liquefaction. Had they actually tied the mint into the bedrock, the foundation would have fractured and the facade and floors would have collapsed in the 1906 SF quake. Instead, the mint only experience surface damage to the facade from the FIRE, not the earthquake. The fire burned so hot (all the buildings around the mint burned to the ground) that the water vapor in the sandstone caused the sandstone facade to literally explode. 


The mint superstructure was saved because the building courtyard was built directly over an artesian spring, which was turned into a well.  Since the mint had backup power, they could pump the well and direct the hose onto the sandstone to prevent even more of the facade from collapsing.  Since the mint made it through the earthquake and fire relatively undamaged, and since the mint had its own water source, the building became a sanctuary and then center of re-building government in the downtown SF financial district.


9.21.10    Fall Equinox: Beautiful site in the sky, a Full Moon flanked by Jupiter


9.20.10    All the Financial Bubbles: A comparison

More outstanding work by Sharefin!



9.20.10    Tom O'Brien Track Record on Gold Price Action this year = Terrible

Not sure if he is trying to downplay gold so that his listeners on TFNN simply give up and send in their precious metals to his 'Tiger Club' which buys metal below melt value, or if he really is that poor of a chart reader/fundamentalist. 


Now, I have only been listening to him for about a year, since our local financial station just picked up his 'show'; but in that time he has called for gold to experience a large price correction multiple times now, only to be wrong at every juncture as gold price makes new highs in dollar terms.  Hope his jewelry trade pays the bills, b.c. his gold trades sure don't!



9.18.10    Commodity prices + wages + transportation = prices for finished goods

Since the lows of 2008 the prices for silver, copper, gold, wheat, corn, rice, soybeans, cattle, hogs, sugar, cotton, coffee, cocoa have all surged.

Cotton prices alone rocketed up 28% in just the past 8 weeks. Cotton is now at the highest price level in 15 years.  This will guarantee higher clothing prices down the line.  When combined with major wage inflation in China, US stores will be forced to pay higher wholesale amounts, since other countries (Indonesia, Vietnam, etc) will be able to increase their prices.  American shoppers should see unprecedented rise in clothing prices within the next 6-9 months.


9.18.10    Plenty of Ways to 'make a buck' on Government Graft

Sure, there will be plenty of ways to make a buck on this one. 

Start a ‘minority/owned’ front company to land a government contract via typical channels of nepotism and fraud.  Take the $500,000k authorized in the RFP and deliver 38% to the people who are supposedly protected by the bureau. The other 62% is agency overhead (vehicles, office space, promotions, ‘health care’, workers comp fraud, lawsuit settlement, overages, standard theft) and ‘profit for services rendered by contractor’.

One issue I SELDOM see discussed regarding all the ‘OPPORTUNITIES’ for making a buck on “Health Care Reform”, ‘Consumer Financial Protection’, Clash for Clunkers, ‘Police Actions’ or any of the other bureaucratic boondoggles is business ethics; especially in relation to standard economic theory/underpinnings of micro capitalism.

In essence, some folks see no ethical difference between profit made via inventing a cure for disease vs making a buck from police action (illegal war) profiteering. 

My parents and grandparents (and probably yours) made an honest living on a spread between the value added by their labor/education and what the product realized on an open market, triple net.

That work ethic is not lost in all of us, but has obviously become a point of ridicule for a large swath of the public, many of them reliant on taxpayer largesse or defaulting on their promissory notes

Secondly, the point initially made, albeit briefly, is that new fees/taxes/licenses do NOT accrue to GDP.  These are a drag on the economy, not a lifeboat. 

The bureaucracy DOES add costs to the business process. A case study on this exposition relies more accurately on national economic development studies over the past centuries rather than a string of posts in an ephemeral thread.

Denying such via reliance on an argument that others making the point are ‘whiners’ or ‘complainers’ does little more than immediately bring down the economic/business debate down to the lowest denominator of ad hominem sophistry.

Submitted most respectfully, all $/Dollar are not made equal.


9.17.10    Kinross merges with (acquires) Red Back Mining


According to the supplemental Kinross (KGC) circular mailed out this week.


The arrangement provides Kinross with exactly the type of early production property they have shepherded well in the past several years.  Also provides important exposure to the bourgeoning west africa lodes. Looks good to me


Mauritania and Ghana Proven and Probable (PP) reserves are currently at 5.9M oz AU.

5.9 PP x $1,200/oz AU (9,17.2010)= $7,080

$7,080M of PP/ 256 M shares outstanding (7.1 M float)

= 27.6$/share per PP AU

Kinross (KGC) paid $21.3/share USD (warrant price)

21.3/27.6 = 77%

.77 x $1,278 oz = $986 per oz paid per PP.

BUT, the Feasibility Study for Tasiast wont even be completed until 2011.

Expect quite a bit of inferred reserves to roll into the PP column then…

So, the $950 quote for deep storage is about right for Proven and Probable, but WAY high for ALL resources (including inferred).


Large reserves (5M+)just waiting around to be plucked don't appear quite lying around waiting for a pluckee anymore.

That, and cost of mining in Nevada and Austrakua don't exactly look to be going down any time soon...

9.17.10    Made up DC gun death rates

Non-factual hyperbole which actually works against gun rights defense.

C’mon, you really believe DC has over 3,000 gun deaths every year?!?


Kinda reminds me of the ‘tea partiers’ who generally seem motivated to equating public dissatisfaction with government to racism/extremism.

Thinly veiled provocateurism, but that’s what sells at Walmart these daze…

9.17.10    Great Coin Show Sept 17&18, San Francisco Mint

This is an awesome place for a coin show.  Nice group of dealers, too.

Worth going, for sure.

Here is a coupon:


9.17.10    September 17, Interesting Day.

Founding of the Presidio of San Francisco, the oldest military base on the western coast of North America. The Presidio was an active base under three flags: Spanish, Mexican, US.  The base closed in 1995 when the local politicians decided they would rather have the place serve as a real estate slush fund to support their re-elections and pet projects.

Constitution Day, US

Battle of Antietam (US Civil War), still the bloodiest day, in terms of loss of American life.

9.16.10    Silver Broke through price of $20.67

There wasn't any real technical resistance there, but there did exist one interesting fundamental point:

100 years ago the price of GOLD was fixed at $20.67 by the US.  We actually had the power and reserves to keep the price fixed.

Oh, how the mighty have fallen...

9.9.10    Buy PGE?


PGE made a high just the day before, so technically it will probably break down from here.  I would wait a few days. BP went down for weeks after the oil spill b.c. liability wasn't fully known. Same with PGE. There are media reports that folks smelled gas for a few days.  Wait a few days to see the action, i think it will go lower BUT provide a very nice buying opportunity. PGE controls so many crooked politicians, and is such a great monopoly, they can't lose long-term.


9.7.10    Bring the Kids to Burning Man?

This year at BM one of my quests was determining if I should bring my children, currently 2 and 4.

Since 1984 I have been visiting the Black Rock/Smoke Creek deserts and understand the logistical and medical challenges.  Those are generally ameliorated by having Black Rock City infrastructure present (multiple paramedics, ambulances, and air-evac available; medical tent, and numerous trained and staffed professionals available.) Currently there are epi-pens. Ventilators. Sterilized equipment, oxygen, saline lines, and various other medical support that are generally not available when you go camping anywhere else during the year.

 The time it takes to get to a hospital emergency room from BRC is actually less than the time it takes to get there from many other smaller Nevada towns (Tonopah, Ely, Yerington, etc).

I interviewed perhaps 100 people this year regarding the topic, about 70 people with children and 30 people w/o children.  Found that the folks w/o children were split about 50/50 whether or not it was a good idea to bring a child.  My sense was that split generally mirrored their ideas on having a child AT ALL, BM or elsewhere.

The parents, to a tee, stated their kids loved BM.  I generally saw the children really enjoying themselves EXCEPT when the weather turned sour (extreme calm heat or extreme dust storm).

The ideas on what ages were best/worst are varied.  Many people did not feel an infant was able to properly adjust to the dust and was prone to dehydration (ore verbalize their needs).  Other folks felt strongly that tweens/teenagers could have comprehension problems regarding what they saw.

Kidsville grew into a VERY organized and functioning camp. Their first year, 2001, was actually the last time I was at BM.  Kidsville organized itself to meet the demands of the playa and the event. The number of semi-structured events and activities proved surprising and comforting.  When I entered the camp (there was really only one major entrance) I immediately saw folks looking at me (a single male) much like a neighborhood watch program.

Initially my perception was that the parents with children must have deliberated for quite some time on the pros vs cons of kiddies at BM.  Overall, I found that was not the case. The parents intuitively knew their children could not typically follow voice command or would have problems with the weather were staying with grandparents/babysitters (stayed at home).  Most other parents were just of the mindset that the children were part of the family unit, they went where the parents went, good times or bad, penthouses or camping camping.  The parents I interviewed provided really illuminating answers;  they had thought through both the philosophy and the logistics.

Here was the consensus on the best methods for bringing children:

  1. Wait until they can speak (tell you their physical needs).  Personally, I will wait until the kids are 4 and 6.

  2. Bring a trailer/RV and camp in Kidsville.  You can shelter from the sun/storm in an RV in ways you cannot in a tent or other vehicle. In our RV this year we had AC/Power/private sink-toilet-shower, clean facilities, refrigerator, etc.

  3. Go to BM with another couple you already know and trust so that you can watch each other kids for 2-3 hours while parents go for the NIGHT party.

  4. The days are very enjoyable for children if THEY DON’T HAVE TO WALK.  The two best methods for child transportation are: A) A shaded/vented bicycle trailer where the kids sit that are powered by mommy/daddy pedaling. B) A mutant art cart (four seater golf cart tricked out).  This allows you to strap the kids in the back seats and take the children EXACTLY to the art pieces you want them to see while speeding past the more ‘adult’ camps/domes.  Also allows you to get back to the RV at the first sign of developing dust storm.

In sum, most respondents were supportive of children and with the mitigation/management techniques presented above.

The BM experience, like the rest of life, is different with children. Seeing the event and art through their eyes presents unique rewards and challenges.

 I am comfortable bringing my children when the youngest is 4 years old.

See you there…


8.30.10    Why the Banking Act of 2010 is Only designed to spark further Class Warfare




8.29.10    Thanks to you, our Customers!

Our sales have done really well this summer, traditionally the slow time for precious metals and coins.

In part I know we are benefitting from larger trends: the precious metals have generally out performed every other market for a solid decade.

Was nice to be right about that one, eh?


8.24.10    How to Devalue a Currency

Step One: Take the specie backing away.

Status: Completed in 1913/1964/1971

How Fallen Empires Devalue their Currency, leading to collapse

"Silver coins were a basic medium of exchange during the empire, and one of the major Roman coins, a denarius (plural, denarii), equaled four of the smaller silver coins called sesterces. During the reign of Augustus (circa 30 B.C.), a silver denarius weighed 5.7 gm (.20 oz) and was 99 percent pure. By AD 193 it had dropped to 4.3 gm (.15 oz) and was only 70 percent pure. The deficit spending of later emperors nearly halved the silver value of the coinage.”

The soldier-emperors who followed the Severan rulers continued to treat the military generously, but as tax collections fell and silver mines were exhausted, imperial funds disappeared. The treasury melted down available coins and issued new money that had less real value. By 270 the silver content of the coinage was only 1 percent. This devaluation of the currency soon had a terrible effect on Rome. As money became worthless, much of the empire was reduced to a barter economy. The state collected food, animals, and other supplies instead of tax money. "



The marketplace last devalued paper relative to metal in 1964 and 1965. According to Burton Hobson in International Guide to Coin Colleting, [First Edition. New American Library. New York. 1966]:


"..we had a coin shortage so severe that commercial banks at one point were forced to offer a few cents' premium for every dollar's worth of coins turned in, so that payrolls could be met and change made to the penny."

Step Two: Remove Larger Denomination Currency so that all Transactions Must go through a Central Clearing House (federal reserve system).

Status: Check.  Completed via removal of the $10,000 $5,000 $1,000 and $500 dollar bills, in 1934.


Step Three: Eliminate Coinage

Status: Almost complete.

Should the penny be removed from commerce?



A one ounce gold American Eagle has a denomination of $50

whereas the market value is roughly $1120.


Is this a problem?


Um, yep.


But don't take my word for it...


Let's see what Charles Jenkinson had to say about the general subject in A Treatise on Coins of the Realm:


"A difficulty then existed, and continues to exist, which must necessarily be removed, before any plan can be adopted for the improvement of the silver I have already observed, that silver and gold, in reference to each other, are estimated at Your Majesty's mint at a different value or price, than these metals are generally sold for at market. As long as this difference subsists, both of these metals will not be brought, in a sufficient quantity to the mint to be coined: that mineral will only be brought which is estimated at the lowest value with reference to the other: and Coins of both metal cannot be sent into circulation at the same time, without exposing the public to the traffic of one sort of coin against the other; by which the traders in money would make a considerable profit, to the great detriment of Your Majesty's subjects.


And this mischievous practice, and the frauds committed in carrying it on, are the more to be apprehended in  this country, where the Mint is free: - that is: where every one has the right to bring gold or silver to the mine to be converted into coin; not at the charge of the person who so brings it, but of the public: for,...the charge of coining Gold  and Silver has been born by the public; and, contrary to the practice of most other countries,  no seignorage has been taken.


To prevent this evil, it is necessary to determine, whether there must be a standard, or superior Coin, made of one metal only;  and whether the coins of other metals must not be made, and take their value, with reference to this standard Coin, and become subservient to it; - and, in such case, of what metal this standard Coin, to which the pre-eminence and preference are to be given, should be made."


Now, substitute copper for silver (or metal - such as it is, for paper notes) and talk about removing the modern cent from circulation...


In the 1950's, Japan introduced aluminum coinage into circulation for the first time in her history.


Source: Coins through the Ages. Laurence Brown. Bonanza Books. New York. 1961


Don't take my word for it, Part II:


The Silver Dollar Epitaph

Born - 1794

Died - 1935

Buried - 1964


- William L. Graham Jr.


The Silver Crisis.  Hickory Press. Lake Forest. Il. 1964. 134 pages. Softcover.


"At the end of February, 1933, just before we went off the gold standard, there were in the United States a little over 8 Billion Dollars of money (aside from that held in the US Treasury). Of this sum about two-and a third billion dollars consisted of gold coins and gold certificates."


- Edwin W. Kemmerer.

Kemmerer on Money. John Winston Company. Chicago. 1933. Hardcover. 197 pages.

 With the following inscription:

-Dedicated to the Memory of Grover Cleveland: A fearless and valiant champion of sound money.

No wonder Cleveland is seldom mentioned in the top five presidential rankings...


"The evil effects of such decline (silver and gold against available commercial monetary expanse) were enormously increased by the shortsighted, crafty manipulation of currency by the european rulers. ..and by the inability of the age to understand, or even to perceive, the hidden working of two metals see-sawing against each other -acting as levers against each cutting each others throats. The discovery of America corrected the fall of prices and saved europe, but it left her rulers as deadly ignorant as before of the workings of bi-metalism to give a name to what they had not even perceived as a phenomenon, much less system."


The History of Currency: 1252-1896. W.A. Shaw.

Step Four: Establish a two-tier currency system, one for international settlements and one for internal trade.

Status: Partially completed via the Bank of International Settlements.  The next step will be to establish one currency for trade and one currency for day to day transactions.

The day to day currency (a newly introduced red-back) will immediately plummet in value and continue to erode until, eventually, the public will abandon it all together.

The currency for international trade (the greenback) will be backed by actual US assets. This has already occurred to some degree via locking up western BLM-managed lands containing mineral ores for eventually hand-off to the Chinese.

A better solution, but politically unpalatable, is for the US to call a spade a spade and devalue the US 'dollar' (the Federal Reserve Note) by one significant digit. At one point a (large) cent could buy a loaf of bread. A loaf of bread nowadays is $3. So, = knock off two digits from the dollar, and that FRN would be worth what a post 1982 cent is worth today - one cent.  Although, you would still need 3.5 cents to buy the loaf of bread, look at it this way, now the loaf comes with slices so it is 'value added', part of the productivity daydream nightmare that has allowed flawed logic to devalue the dollar some 97%.


At some point the Red Note FRN will circulate outside the country at some discount, or premium to, the domestically traded greenback. We may as well position ourselves for this eventuality and influence its due course to whatever degree possible.

Step Five: The greenback stops trading. Most citizens readily accept the Iris scan and carbon credit allocation system.  For those that won’t (religious objection or those in rural environments) the Government takes, instead of your useless scrip, actual material such as ammunition, food, stored goods, etc.

The way this is introduced is by first eliminating, or more likely, making non-palatable, any non-government spending accounts. 

For example, Phil Grande played a great obama quote yesterday, to wit: “I don’t have a problem with folks that have money in IRAs”.  Well, isn’t that benevolent of our dear leader.  Of course, next quote will have the modifier (..provided they are already fully invested in the government IRA/MSA/HAS/MEDPLAN/ first”.)

nah, Could Never Happen Now/Here…


8.24.10    Today's Lousy Housing Numbers

Real Estate: Single Family Home


Started looking again for a SFH to buy/re-hab/rent.

last two properties I have penciled up and then called the listing agent already had multiple qualified offers (*and they didn't want anohter offer!).

Neither were on the market more than 60 days, both had significant problems to boot.


Real Estate: Commercial/Industrial

Helped out a local water district looking to rebuild a water reservoir.  Some of their quotes look like they are coming in AT cost, just to stay afloat.


Not good...


Water operators becoming scarce.  This year the State of California dropped its standards on who can disinfect/treat water from a Treatment License to a Distribution License.  Much easier qualifications.  Of course, the state only offers the written test in English, so the qualified applicant pool, even for the minimum license, keeps dropping.


8.24.10    More regulations, eh? 


The regulations we have are not enforced, or are unenforceable.

The regulatory bodies we have vary between corrupt and incompetent.  Harry Markopolos provided the Securities and Exchange mathematical proof why Madoff was running a ponzi shceme.  Harry pursued the case FOR 9 YEARS; SEC refused to even begin an investigation.

Furthermore, Congress just shoveled another 1,500 pages of ‘financial reform’ down our throat – the largest expansion of financial bureaucracy in over 70 years.  Yah, that’ll help.

You really wanna change things? Starve the beast. Pull your $ out of the bank and put into a credit union.

8.24.10    Check out Monday’s Kitco podcast with my fave crush Alexis:


She has on Phil Streible, Senior Analyst with Lind-Waldoock.

Seriously, the guy looks about 28.  WTF does he know, a paid for degree and nepotism based job? How many articles have you read that he’s written over the past decade? Was he right? Go to the JVs and prognosticate about GOOG.

Pretty faces and prettier words

Blunting the take of sharpest swords

8.23.10    SilverBourse.com


Makes the scene.  They have some good information here on Australian mint silver coinage production for the past ten years:




8.21.10    International Mine Water Association



Conference in Nova Scotia, Set 5-9


8.20.10    $50k historic gold bar stole via smash and grab?!



8.20.10    Make your own: metal casting in the back yard




8.20.10   Public Perception and Political Environment for Mining, worldwide



Perception and support in Canada declines dramatically.

Only Botswana improving...


8.20.10    High Denomination U.S. Notes Remain Popular With Collectors
By Kathy Lawrence

Three of the four highest prices realized for notes in the recent Heritage ANA Signature Currency Auction, part of the official ANA World's Fair of Money auction in Boston, were high denomination notes. The top selling note was a Fr. 2221-B $5,000 1934 Federal Reserve Note PCGS Very Choice New 64PPQ. That note realized $103,500 with the 15% buyer's premium. A Fr. 2231-A $10,000 1934 Federal Reserve Note PCGS Extremely Fine 45 brought $69,000. Another $5,000, this one a Series 1928 example from the Atlanta district, a Fr. 2220-F $5,000 1928 Federal Reserve Note PMG Very Fine 20 crossed the auction block for $63,250.

Per Heritage Collectors New, August 19. 2010


8.20.10    Southern Nevada Bank Ratings


The pressure is still on, and how.

8.20.10    The Administration to Give more Money to the Banks (your money!)

Because that’s what the administration does best!



8.20.10    Electronic Frontier Foundation TO Verizon


EFF's open letter urges Cybertrust, a division of Verizon, to evaluate whether the trusted SSL CA certificate it issued to United Arab Emirate-based Etisalat should be revoked. Etisalat recently threatened to discontinue service to BlackBerry users after Blackberry developer Research in Motion refused to provide the UAE government with surveillance back doors in its encryption services.


This follows a mislabeled firmware update to approximately 100,000 UAE BlackBerry subscribers that contained malicious surveillance software in July 2009.
For more information and the full text of the letter go to:


8.20.10    How your shopping cart spies on you:


8.20.10    Leon, Mexico: The trial run for the complete surveillance state


What life under the North American Union will be like in 10 years:




8.19.10    Cool Website: IdahoNationals.com

Indeed the mining west produced treasure that we can still mine!

Wallace Id is one of my favorite mining towns in the country.

Here is a nugget mined near that district, from Murray:


murray id nugget

Looking around this page you may just find the miner that dug up that nugget, and the mine from whence it came:


Old mining town postcards are fascinating.  Photo techniques, real post cards, boomed with the Idaho and Nevada boomtowns in the glory years of the 1880s-1910s. 

As one example, Rhyolite sure is an interesting place, even today.  My favorite piece of mining ephemera is from Rhyolite, actually, a sweepstakes entry. 

The drive down Titus canyon from Rhyolite into Death Valley proves one of my favorite back routes.  The bottle house, the railroad depot, the modern metal artwork all provide quite a scene against a beautiful colored palette desert backdrop.

Here the Mining Union marches in the glory days, just before Teddy Roosevelt sent in union troops to break up the union for real.

Miners March in Rhyolite

Alas, the Nevada National notes produced by the banks of these mining camps do not come cheap (minimum 2,000 +, for just a good/very good).  I’ve run across Reno, Elko, Ely at coin shows, etc, but prefer to put my collecting money into the postcards, mining scripophily, ephemera and trade tokens.

Regarding national notes, the next book I plan to purchase is:

The Nevada “Sixteen” National Banks and Their Mining Camps.  Melvin Owen Warns. 1974.


8.19.10    Daybar Study: Average Investor Returns unperform the market




8.19.10    Mining Magnates built the west.

  The minerals produced steel which formed the railroads and steelyards.  The gold and silver built the Comstock, and the Comstock built San Francisco.  The period of 1870s-1890s was THE single greatest period of wealth and expansion in US history, bringing forth the singular societal phenomenon called the ‘middle class’.  This middle class in turn built out our fine Republic into the pinnacle of political achievement, education and scientific advancement   Those were the days built upon principle, by men of vision and drive, financed only by true specie: gold, silver and copper; the blood of a healthy capitalistic society.

William A. Clark, the Copper King of Montana


The cancers of today’s bailout mentality, deficit driven dereliction, declining middle class and all the other ubiquitous signs of decay and societal decline you see around your community are not by chance.  The bankers drove out honest legal money, installed a corporate controlled fiat debt mechanism, and now hold you and your kin and neighbors in debt over dozens of trillions of ‘dollars’ (federal reserve notes). 

Long live the honest miners, those who traded a day’s wage for an honest dollar.

Not all of us have forgotten, nor given up…

8.19.10    Nanosilver disinfectant under review by EPA

EPA is announcing a 45-day public comment period for the draft document "Nanomaterial Case Study: Nanoscale Silver in disinfectant Spray" (EPA/600/R-10/081). The document is being issued by the National Center for Environmental Assessment within EPA's Office of Research and Development.

The draft is intended to serve as part of a process to help identify and prioritize scientific and technical information that could be used in conducting comprehensive environmental assessments of selected nanomaterials. The 45-day public comment period begins August 13, 2010, and ends September 27, 2010. POC is Office of Environmental Information Docket; telephone: 202-566-1752; facsimile: 202-566-1753; or e-mail: ORD.Docket@epa.gov (Federal Register: August 13, 2010 [Notices], Page 49487-49489).

8.15.10    Gold Coin Market sees continued Strength

Per the witness of Doug Winter, upstanding and longtime nice gold piece purveyor:

Early date (i.e., pre-1834) gold was almost non-existent. Even the low end, overpriced stragglers that had been overhanging the market seemed to have disappeared. I can’t remember an ANA at which I saw fewer early gold coins nor a major show that I purchased fewer.

There was extremely strong demand for Type One double eagles. The coins that nearly everyone seemed to want were common and somewhat better dates in AU50 and up, especially in the $2,000-7,500 price range. Demand was also strong for interesting Type Ones in the $10,000-20,000 range. Its hard to say what demand was like for expensive, really great Type Ones as there were almost none to be seen at the show.

Branch mint gold also was in demand. I bought and sold a few interesting pieces of Dahlonega at the show and had quite a few people come to my table with specific wants. I searched through dozens of dealers’ inventories in a Quest for Crust and was unable to find more than a handful of truly DWN-worthy coins.


Nice gold coins are rarely hard to sell...

8.15.10    Mainstream Media Valuation

Last week newsweek sold for 1$. Basically completely bankrupt and void of value. The liabilities far exceeded what 'worth' the company had. Only reason the rag is still propped up is to float negative press about your countrymen.

I suppose someone (just one person on the planet) was still willing to pay 1$ for newsweek's opinion.

Remember in highschool when my lame history teacher made us buy both Time and Newsweek to keep up with 'current events'. Took about three weeks before I realized they ran the same exact story, with the same exact spin, just a few pictures taken from different angles.

Pretty convincing evidence for this 15 year old student that the Powers That Be had locked up the press tight as a drum. Voluble lesson, served me well, thanks lame ass teacher for that unintended teachable moment.

8.14.10    Skeletons in the 'Health Care Bill' start falling out of the closet

I have been following this one closely because it will add new requirements for me. 

1) There are No New Taxes

There are no new taxes (almost everything is already taxed.  What currently is not taxed will be taxed soon after Obama’s tax writing committee [official doublespeak: US National Debt Commission] comes out with their proposal right after this fall’s election.  A central plank to ‘reduce the debt’ will be the creation of the Value Added Tax). 

The VAT - a tax on every transaction - will be a central plank, count on it, no matter how it is couched.

You will be forced into the position of monitoring other's financial transactions and acting on behest of the IRS.

The IRS does not need to be ready to enforce regulations.

Like all rules and regulations, they were not designed to be universally followed - only SELECTIVELY ENFORCED.  You will carry the water for the IRS at the threat of CRIMINAL and CIVIL PERSECUTION (or, as is more standard, threats of such).

The 2011 and 2012 provisions are setting up a mechanism whereby we all report on each other to the IRS. This process and mechanism is a rollout pre-ceding the VAT.

The IRS is already preparing for the brush back from the small business owners in the US (i.e. the new dinosaurs).


2) The Liability is on the Buyer

THE BUYER is required to file the 1099 for YOUR purchases.  Purchase covered are anything over $600.  If you try to make more than one serial purchase of $595 to get under the trigger, that will cause you a fine also (Just as the current reporting cap is $10k and serial financial deals to avid that amount are a federal crime, called ‘structuring’, just to catch al Qaeda dontch know.)

That’s right, now YOU must acquire ‘personal information’ (social security number{SSN}) from anyone that sells you something over $600.

And when you buy…Sure, you WANT to give your SSN to dozens of merchants every year, RIGHT?

SURE THEY WILL ‘change’ the LAW.

You think WalMart or Apple or Microsoft is going to have to follow this provision? HAH har!, funny.

No, the burden IS ON YOU; the citizen small business owner.

Big corporations have lobbyists and lawyers to avoid this type of thing. 

That’s what your tax dollars go to, new regulations that further increase your paperwork burden.

3) The Burden is On YOU

The burden of being up to date on tax law is placed on the tax payer.  That is why those in the tax industry fight so hard (e.g. write new legislation via their lobbyists on K street) for new incomprehensible regulations, so that you then must hire a ‘professionals’ to sift through the garbage and render a ‘tax strategy’.

Of course, the IRS loves new regulations, especially poor ones.  Nobody writes regulations so that you can effectively follow them, regs are written so they CAN BE SELECTIVELY ENFORCED.

Rule of Law no longer exists; unevenly enforced regulations replaced that old relic canon.

4) The Law Impinges upon the Small Business in Favor of Big Business

Since you don’t give much to the political campaigns, you are simply an unnecessary waste of resources.  

Mom and pop vintage stores, ebayers, pocket vest coin dealers, antique store, pawn shops, will be CRUSHED because THEY must collect SSN from Everyone that sells over $600 in one year (less than HALF a one ounce gold coin!).

Oh, BTW, the $600 figure is CUMULATIVE over the year.  You can’t sell a quarter ounce now and a quarter ounce later to avoid the trigger.

Big businesses typically only buy form 10-20 vendors/distributors, so its not like they can’t have their CPA and accountant send out 20 more forms on top of the stack of paperwork.  How many accountants work in your business that are staffed to collect SSN for a few hundred buyers off the street so that them may in turn send a 1099 to the IRS for that same purchase?  (Oh yea, keep those files for seven years in a separate box when THAT audit comes knocking).

The American Institute of CPAs already put an objection into the rule making deliberative process b.c. they don’t want every useless citizen calling them up and asking questions.

6) Don’t like the 10% VAT?

Good, because they govt wants you to pay 28% instead!

See the National Taxpayer's Advocate paper criticizing this law.

(28% ‘withholding tax’ (same as capital gains rate, go figure) applies if the seller does not provide a valid Taxpayer's Identifying Number or SSN).

5) Of course they will REPEAL some sections for the ‘hardworking american families’.  Specifically, the caring politicians will write in these exemptions before the presidential election to show how much they care:

- Gas
- Groceries at the market
- crap you buy at chinamart for Christmas presents

Let’s face it, when you can ONLY afford those luxuries, you aren’t worth the bureaucrats time.

Because, fact is…


OH, you haven’t noticed that gold and silver performance has essentially out=performed ALL other investment classes EVERY YEAR FOR THE PAST DECADE? 

Well, some other folks have notice, I can assure you of that.


1)   The government hates competition which is why counterfeit is heavily penalized

2)   Substitute competition against the Federal Reserve Note debt instrument issued by their friends and cronies at the Federal Reserve Corporation will not be tolerated (that is, specie)

3)   The IRS and TREASURY do not want you to understand how and why species has been THE currency for 6,000 years.

4)   Too many folks who bought UNTRACEABLE gold and silver at ¼ of today’s prices AREN'T paying the 28% tax; that will change.

One major intent of this law is to kill the gold and silver trade by requiring the SSN and 1099 for most purchases.

 Obama’s health care proviso to require a 1099 tax form for any gold sale over $600 is designed to kill the trade.
Gold has always curried favor in part b.c the trade is anonymous, this provision, requiring the buyers and sellers of gold to provide a SSN number and receipt to theirs for every purchase of ½ once or more removes the anonymity of gold.

The government hates anonymity of the citizenry.

Right now in California you MUST provide a THUMBPRINT, SSN and PHOTO ID to recycle aluminum cans for a few bucks. 

Just wait to see what else will be required for gold and silver transactions.


(especially the little people)

he he, eh?

8.12.10    Food Freedom: Grow your own while you still can


"There is No Right to Consume or Feed Children Any Particular Food; There is No Generalized Right to Bodily and Physical Health; There is No Fundamental Right to Freedom of Contract." ~ US Dept of Health & Human Services and US Food & Drug Administration, 2010


8.13.10    Goldman report is not a good sign for price of gold!


Remember when Goldman Sachs said price of oil was going to $200 a barrel?

Yep, look at the price now...

When they say you should buy, their the ones selling it to you.

8.11.10    30 year T-bill yield, down over 20%!!


yah, that's healthy...

8.8.10 Jack DeSangelis puts a sell call on gold

DeSangelis has traded commodities since the 70s and has been pushing gold for the past decade. (He is a front for Legend National Gold Exchange, a moderate pressure boiler room gold pushing operation).

His reasoning is that Obama’s health care proviso to require a 1099 tax form for any gold sale over $600 will kill the trade.

Gold has always curried favor in part b.c the trade is anonymous, this provision, requiring the buyers and sellers of gold to provide a SSN number and receipt to theirs for every purchase of ½ once or more removes the anonymity of gold.

He believes that silver purchases are a substitution trade.

Personally, not sure the 1099 will really affect gold purchases that much...


8.8.10    Best/Healthiest Cookware?

We use stainless steel with copper base cookware

Looked at more expensive stuff, but really:

The Kirkland set made in Italy sold at Costco is a nice deal, IMO.

Stainless and Copper are both relatively non-corrosive and non-reacting. Sure, you'll get a little bit of Iron and Copper in your meal eventually, both are essential elements needed to properly function.

I have seen NO study that shows Iron as a toxin at these micro levels. Copper at these micro levels is only a toxin to certain salmonids, barely.

IMO and study.

8.8.10    Real Estate Development Opportunity

On the interchange off I-10, So.Cal, Thousand Palms Ca

The actual address, too new (?) to appear in Mapquest, is 105 Conchita Road, this is the cross avenue


Across the highway from the Aqua Caliente band Casino. Was pretty packed when I was there two years ago.

Will be auctioned by Hudson and Marshall (CB ELLIS), the auctioneer outfit I bought my SFH from, August 18th in LA.

There’s a RE deal/play there somewhere, what would you do?


8.5.10    How Fallen Empires Devalue their Currency, leading to collapse

"Silver coins were a basic medium of exchange during the empire, and one of the major Roman coins, a denarius (plural, denarii), equaled four of the smaller silver coins called sesterces. During the reign of Augustus (circa 30 B.C.), a silver denarius weighed 5.7 gm (.20 oz) and was 99 percent pure. By AD 193 it had dropped to 4.3 gm (.15 oz) and was only 70 percent pure. The deficit spending of later emperors nearly halved the silver value of the coinage.

The soldier-emperors who followed the Severan rulers continued to treat the military generously, but as tax collections fell and silver mines were exhausted, imperial funds disappeared. The treasury melted down available coins and issued new money that had less real value. By 270 the silver content of the coinage was only 1 percent. This devaluation of the currency soon had a terrible effect on Rome. As money became worthless, much of the empire was reduced to a barter economy. The state collected food, animals, and other supplies instead of tax money.



8.3.10    Inside Fix

All the US Presidents, except one (not the one you think), share the same ancestors.




7.30.10    How Can the Japanese Suffer a Twenty Year Deflation

When they have such an intrepid citizenry such as this?



7.30.10    California Bans Lead in Toys = Chinese Pick a Different Poison


So, the law of intended consequences (artful dodging of regulations + general legislative banality) =


China increases level of cadmium in children's toy.




7.30.10    Tangible Assets Sought out by Millionaires


And that group of millionaires INCREASED between 2008-2010




7.30.10   Predicted Short Term Price action in Metals Markets

I vote the seasonals trump this year.

The gold and silver positions I sold in May were at higher levels than here.

Bought back most the positions last week.

Often I am early, price likely remains weak next couple weeks, but I see the higher seasonal trends kicking in.

A rather standard year in equity and metal prices all in all.

One thing that could drag the metals down is a large fall in price of oil, if seen as proxy for the commodities.


The oil inventories are rather high right now.  Should traders exit long positions the drop in price could snowball.  Recent price action and chartage on XOM, as already mentioned, may foretell this trade.


Then again, two separate market timing radio shows on the business network y-day posted their view on going short XOM, so that trade maybe getting crowded already


That said, I also lowered my equities exposure a bit based on Arch Crawford's Cardinal Climax call. 


Just in case...


Dat's a rap.


7.30.10    When I entered negotiations on buying an existing business I learned five things:

1)      Many businesses keep three sets of books

a)      one for the IRS

b)      one for a potential buyer

c)      one for themselves

2)      It is easier to agree on price rather than terms

3)      Goodwill is rarely worth what the seller believes

4)      Depending on the business, inventory and/or customer lists are worth the majority of the firms valuation

5)      Make sure you are only buying the assets, not the liabilities

I decided to start my own business instead of buying an existing one...


7.24.10    Long Term Gold and Silver Price Performance

The best resource on the internet for financial graphs was developed by Sharefin.  Here is his site.  You have to subscribe now.  Will take you a while to find everything.


A good place to start initially is with the first graph on this page (The 600 year silver chart):


also hosted here:


FWIW, I think this chart is actually incorrect in that the ratio for silver actually shows as too overweight during the middle ages based on other data I have seen (the 2,000 year charts).  The comparison gets difficult because silver traded day to day as currency whereas Gold typically only exchanged hands for large land swaps or political deals.

Governments throughout the globe have attempted to fix the price of gold since government began.  They actually achieved some success about 1,400 a.d. to ensure relative stability amongst economic pacts between each other.  Silver had been allowed to float for many centuries (and thus become debased), whereas gold was only allowed to float beginning in 1973, more or less. 

This silver devaluation trend continued even moreso after the Polosi Strikes by the Spanish in the Andes in the 1500s.  Silver became the de-facto currency over most the trading world, and eventually the value was debased.

Here is a good study on the value of silver, as paid for working me wages, over the past 500 years (start on page 37):


You can see silver became cheaper, compared to hours labor necessary to procure, after the precious metals strikes in California and Nevada in the mid 1800s. 

Silver became so cheap, relatively, that the bankers could no longer make a profitable spread to suit their tastes.  Hence, they engineered the panics and depressions  of the 1890s and 1907.  The US presidential election of 1896, to large degree, was based on the battle between whether Gold (Republicans) or Silver (Democrats) should be the coin of the US realm.  Gold won.

Just ten years later the bankers were no longer satisfied with the Gold carry trade, and they instituted fiat currency via the 1907 panic and the resulting Federal Reserve Act six years later.

You can find some more long term price comparisons here (Long term Inflation in US and UK):

http://www.measuringworth.com/inflation/    and  http://www.measuringworth.org/gold/

There are a few thousand gold/silver ratio and price performance charts that go back 30-100 years.  There are a couple hundred good charts/graphs that go back to the middle ages.

Since I started looking in 1999 I have only seen five or six decent 2,000-4,000 year charts, and regrettably can’t locate at the moment.

Of course, most folks only have a two year time horizon anyway! LOL


7.24.10    Gold to Silver Ratio

 Another Interesting Ratio along these same lines is the Gold to Silver.  Historically the Ratio has been about 16:1.  The price of Gold has recently extended his dominance and the ratio is now about 70:1.

For that reasons some folk have been stocking up on Silver.

However, they may not be aware that twice in the past 100 years the ratio has gone as high as 100:1, during times of extreme financial imbalance.

Furthermore, when one looks at the LONG term ratio charts, you can see that silver had traded at a much higher premium for several centuries in the Roman period and in the Middle Ages, at times breaking the 10:1 barrier.

As with any other financial play, it all comes down to time horizon.

 7.23.10  Someone asked: Which debt is better to pay off?

Here is the Theoretical Example:

 Let's say you have 2 debts,

A). Rental Property 2nd Mortgage Fixed, 7% interest over 20 years -- You owe $30k

B). Credit card 10% -- You owe $30k

Which do you make extra payments on first?

His answer to his own question was:

"The conventional wisdom might say to pay off the credit card, because the rate is higher. 

 However,  if you pay off the Fixed 2nd mortgage on the rental house, then you would have additional cashflow which you could put towards paying off the CC.  This is a case of using leverage, other people’s money via rent, to increase your financial position. 

In the end you would have more equity in your property from your efforts, instead of just paying off a CC that has no collateral attached to it and no benefits, other than interest, in paying off the debt."

Here's Our Take

Sure, That is the conventional first analysis.  But a deeper look will show that what hasn’t been mentioned, but should, is RISK, LEVERAGE and OPPORTUNITY COSTS.

Paying off credit card is zero risk return.  Can you safely net over 10% somewhere else without taking more risk?  Probably not, nearest sort-of safe yield today is in non-tradable REITS only at around 7%.  So in this case risk/reward confirms the previous answers to pay off the CC.

 However, the RISK analysis also must consider Margin of Safety.  That is, has temporary market conditions now rendered the house temporarily undervalued?  Maybe the neighborhood average price is off 50% in the past three years.  If so, your Margin of Safety has decreased on two accounts:

  1. The Bank has effectively decreased their share of the investment; leaving you more exposed to disaster to the property; and

  2. Your Return on Equity has decreased.

 Remember the mantra of value investing; DO NOT LOSE PRINCIPAL. 

 Which leads us to LEVERAGE.  How can we Leverage the Principal for Greater Yield?

 IF the property ‘value’ has decreased 50%, you equity may have increased from a previous 10$ of the house value to now 30% to %50.  Should all the other numbers remain similar (cash flow from rents, etc) you are now in the position to use that Principal as a Collateral for a loan that allows you to put money into another rental that triple nets 12% 

 Bingo.  No opportunity cost lost, but cashflow increased.


 Another way to analyze the scenario is simply from a money velocity angle.

 If you think the house will increase in value, why pay off the mortgage at all?  IF you think it will continue a steep decline, then pay it off.  A nasty deflation is not the time to be in hock on depreciating assets, bc. Now the Opportunity Cost is working AGAINST you.  The money sunk in the principal continues to lose value against what else it could buy tomorrow.  Just my two pence.

 Opportunity Costs.

 If you pay down the interest card, you gain no equity, just perhaps a few extra credit score points.

Someone else pointed out that LIQUIDITY trumps all.  Here was my response:

So, what is the best type of liquidity?

I’ve come to the conclusion that you need diversity in your liquidity as with any other portfolio.

Frankly, a bunch of FRNs could become greatly devalued in a very short time period.

Hence the metals. Yet, as previously discussed here, 1-oz gold or bullion coins won’t work for the day to day items, hence silver.

But, you can’t eat silver.

Thus, I came to the conclusion that I’d better stock up on WHAT I NEED.

And accordingly, have stocked all kinds of goods and supplies.

Mostly as insurance, but also could turn into a financial play as well due to THE COMING VALUE ADDED TAX!

Right now the US National Debt Commission is formalizing their proposals. The VAT - a tax on every transaction - will be a central plank, count on it, no matter how it is couched.

You will be forced into the position of monitoring other's financial transactions and acting on behest of the IRS.

The IRS does not need to be ready to enforce regulations.

Like all rules and regulations, they were not designed to be universally followed - only SELECTIVELY ENFORCED.

If you have the means and the space, buy the essentials now. Only one of two possibilities:

- They will become more expensive.
- They won’t be available.


7.17.10    Why you should not keep your precious metals 'on deposit' with a bank:




7.17.10    "Financial Reform"



- Increase the cost of borrowing


- Politicize the mortgage industry.  There will now be 'commissions' to determine if you should be allowed to purchase a car, house or business. A VERY dangerous situation. Your success now depends, not on your ideas and hard work, but on the whims of selected political teams.

- Availability of Capital will tighten, which will drive capital out of the US


- There is NO reform of the criminal activity at Freddie Mac and Fannie Mae. These two 'pillars' of the US housing industry are now discredited penny stocks!


For the first time EVER the banks now own a larger percentage of residential equity than all the homeowner equity combined:




- US will become less competitive in financial markets.  Remember how the powers that be convinced you that we would ship our domestic production industries overseas, that we didn't need those dirty 'ol 20th century factories. Remember how the financial and other 'service' industries were the new path?


How's that working?


Let's look at a few metrics:


Fact is, the legislation will only INCREASE the powers of the folks that lead is into this financial debacle in the first place.  The legislation INCREASES the back-room powers of the federal reserve instead of providing visibility and sunshine.  The legislation does NOTHING to address:


The number of American's on the public dole is at RECORD levels.  Almost 40 million americans are on food stamp assistance.



Percentage of homeowners who have missed a mortgage are at record highs:



Even worse, the foreclosure filings are at RECORD high levels:




7.16.10    Mandatory financial education for all citizens:


Why the banking industry and US Treasury Department WANT you to short sale your home or get foreclosed:


And if you think that’s bad, wait ‘til you see what is in the massive 'Financial Reform' Law passed by the Senate yesterday!

From your paycheck straight to Government Sachs…

7.15.10    The Administration Aims to Shut Down America's Energy Independence


Six month moratorium on drilling. What, exactly, will that accomplish?  You think the fraud, waste and abuse at the Minerals Management Service will get cleaned up in that time?  Nope.  Only thing the moratorium does is force drilling rigs and operations to leave the Gulf of Mexico.  Heck, we're losing production rigs to the Congo!




After tens of thousands of dollars in expenses, and weeks of travel, to move and re-set the rig, think they're coming back any time soon?


7.10.10    Arch Crawford warns on Cardinal Climax planetary alignment; time to get defensive on equities




Although I rarely trade based on astronomy, Arch has been WAY to accurate over the years not to pay some heed.  Time to get defensive and SELL into this increase in equity market value over the past week IMO.


7.4.10    Independence Day

The last several years, more like fifteen, I had become somewhat despondent on the fourth of July, even when celebrating with friends and families.  As I have documented here, our civil liberties have eroded quite severely in this timeframe and numerous unpleasant events have unfolded that threaten our great constitutional republic.  However, I am now quite convinced that the electorate has finally woken to the domestic enemies.  Although the hour is late, the cause still proves just - all these decades after 1776.


7.2.10    Metal Leverage Programs

In these programs they function as a brokerage, more or less. Commission on sliding scale btw 9-15%.  You provide the money and they provide you a receipt with how much metal you own in a warehouse.  Steve Kramer, of Leland (he has his own podcast in partnership with Jack DeAngelis) serves as principal.  He wouldn’t provide a prospectus or contract up front and stated that the industry hasn’t done this in 35 years. Only the receipt of funds would fully disclose the terms [percentage and points (?)] of any particular principle trade.

 I imagine the players have generally remained the same but the firms have changed names over the years given the vagaries of the gold market since 1980.

7.1.10    Major US Banks Admit and are Proved to Support Latin Drug Cartels

Hope this doesn't surprise you:


6.30.10    Why the Gold Price was hit Yesterday

Big decline on the Dow this week.   Folks who manage mutual and trade funds need to close out the second quarter books which end June 30.  In order to ameliorate their losses, they need to sell their winners. IN this case, gold was that winner, having traded very near all-time highs.  You need to sell the winners to pay for the losers.


6.29.10    World’s safest table saw – stopped by one finger!



6.29.10    OilCano spews more Disinformation

 How about this Gem:

“A report prepared for prepared for President Medvedev by Russia’s Ministry of Natural Resources warns that "a greater danger involving Corexit 9500...is that with its 2.61ppm toxicity level, and when combined with the heating Gulf of Mexico waters, its molecules will be able to "phase transition" from their present liquid to a gaseous state allowing them to be absorbed into clouds and allowing their release as "toxic rain" upon all of Eastern North America”

Serious time out/red flag here.

Just as I have felt an obligation to witness honest money and teach finance, so too shall we spread our light unto the scientifically illiterate.

a)      Corexit isn’t that toxic in the scheme of solvents. 

b)      Moreover, toxicity has nothing to do with propensity for ‘phase transition’

c)      Author needs to know that the heat does drive the reaction.  Yet, according to  Clausius–Clapeyron it is a non-linear function.  For that matter, the Gulf is a MAJOR thermal mass which will control the exothermic reactions. 

d)     Hello authors, Vapor Pressure ring any bells? This is the ‘scientific concept’ they reached for, and strained a brain muscle.

The Corexit MSDS CLEARLY states the product has, actually, a VERY LOW vapor pressure. Below water even!  Yep, just a matter of checking a few facts and basic science.

Both increasingly in short supply, alas.

6.28.10    2005 Merck Vaccination causes seizures in Children

according to the journal Pediatrics, released today.


Funded by Kaiser Permamente out of Oakland. Best thing to come out of Oaktown since Zito and boys set the AL record for win streak in '02.


6.28.10     Can Recommend Two Brands of Freeze Dried Food

Thrive (the Costco brand) and Honeyville Farms.

Honeyville has the most variety, but does cost more. I have tried the red wheat and two types of fruits. All three were of excellent taste and quality.

For bulk, the Costco brand provides a good option. I have only tried the onions but they were quite good.

The quality of today's freeze dried food, compared to the dehydrated swill of 20 years ago, is amazing.

Keep an eye on the Costco for sales. Typically they sell a years supply of food for one person for about $1,000. ON a sale we got the deal for $800. Probably the chepest insurance on the planet. We supplement the bulk with selected Honeyville farms orders and fresh vegetables and fruit that we grow ourselves.

Now have: Lemon, Lime, Tangerine, Orange, Apricot, Plum, Blueberry and Raspberry.

[Also have a persimmon, but turns out might not be the fruiting variety, drat].

Learn to dehydrate and vacuum pack.

ain't rokett science...


MREs take up too much volume IMO


However, the new generation has the ability to heat itself.  This feature provides a good morale source and saves heating fuel/time down the road.  Might be an option if you have extra space.


Food is good, but more important is a secured and sanitary water supply.  Lock yours in NOW!


6.28.10    Went Camping for a few days with Family

Beats the computer, for sure.


6.25.10    Why the Media Got it Wrong on McChrystal

Pointedly, McChrystal was not 'fired', indeed he submitted a timed, planned, articulated and well-publicized resignation, via letter to Rolling Stone.

Mc clearly laid out the reasons why he feels Afghanistan is the disaster it has always been, why the action cannot be won and who is responsible.

Mc clearly understands the situation and will not allow himself to be pegged with the defeat and took an offensive action to early retirement while maintaining his face and respect of the staff.

The Commander in Chief has not been able to do any of this and has led our forces and nation to defeat and ruin, with plenty of help from the career criminals that comprise the executive and legislative branches

6.25.10    Today's pop in Metal Prices

Possibly a reaction to the banking deal in the US.   Gold says "get yer stuff off the books now before we confiscate".


6.25.10    Gold Coin - One of Only Five

And it sells for melt value alone. Definitely NOT a sign of a bottom in the market!


"VIENNA, Austria -- A Spanish precious metals trading company bought the world's largest gold coin for 3.27 million euros ($4.02 million), its exact material worth, from the estate of an insolvent investment firm at a rare auction in Vienna on Friday.

The 100-kg (220.5 lb) piece, one of only five Canadian $1 million Maple Leaf coins the Royal Canadian Mint has ever produced, was snapped up immediately in a written bid from ORO direct, a gold trading company based in Madrid"


6.20.10    How the Sun Sounds


This is awesome:




Reminds me of a couple of grateful dead shows, the middle part, from my misspent youth.



6.20.10    The Oil Spill


National Response Center names all federalized spills. For platform spills under MMS jurisdiction they simple assign a code and date to the particular block where the lease is booked in MMS system.

There are dozens of examples of spills named Mississippi Canyon Spill OCS-XXXX or similar. They all follow the same nomenclature.

The unofficial spill name is:

Mississippi Canyon 252/ Deepwater Horizon BP Oil Spill

The official report will have a number very similar to:

Mississippi Canyon 252/ Deepwater Horizon OCS G 32306-XXXXXX 

The last six digits are to keep it straight in the USCG/NRC oracle database.  Currently the database query is not functioning.

The actual NRC report has now been completely scrubbed from the web AFAI can tell.  

However, I have seen it once.

Here is what the NRC spill report looks like


Here is one of the block exploration plans:


6.20.10    Woulfe mining co, received operations permit last week

only western mining firm operating on Korean peninsula. Rare minerals and proximity to China.


a winning plan???

6.20.10    Apollo and Linear Gold to Combine Companies

What other nuggets does the Apollo Gold Management team provide in their special circular that they hand delivered to me regarding the deal?:

Apollo crows about their flagship mine, the Black Fox. Sure, like they're going to brag about the disastrous results at both Florida Canyon and Montana Tunnels?

Right, what great examples of management malfeasance.

[Ok, one could make the case that the highwall instability at the Florida Canyon property was not their fault, that due diligence of a geologist could not uncover this 'differing site condition', fine. But what about the lousy safety record and other operation problems?]

What about the continued inability to produce at Montana Tunnels?

Not a good thing when the highest ranked search query for the Montana Tunnels project produces this:


Seriously, why not a search query that shows:

- "Montana Tunnels exceeds production, creating new jobs", or
- "Montana Tunnels receives environmental and safety record", or - at a bare minimum,
- "Montana Tunnels meets production levels".

Is THAT too much to ask? For this management team, the answer proves a sad if resounding YES, too much to ask...

Instead, the only reference to the mine is by a hit firm that doesn't even understand the current ownership regime. Don't know who to address the complaint letter to? Hey, so how are those negotiations going?

Might make one wonder if they are actually intent at all on correcting a real situation on the ground, or disseminating the typical anti-mining pro-taxation claptrap scripted by a hidden/controlling organization. Nah, couldn't be... Just another case where folks spend hundreds of hours developing a website and can't figure out basic material facts.

Of course the Black Fox property is a great resource (even if the last drilling results were a little disappointing; somewhat offset by better drilling figures at the Linear Box property), that's the ONLY reason I hold the stock.

All of their production property and Linear's most promising projects, are now in the most mining friendly country - Canada. [Ontario and Saskatchewan] South America, USA and Australia have all made incredibly poor decisions regarding federal 'management' (e.g. taxation and outright nationalization/distribution) of their mining sector.

Canada retains its historic support that has allowed the industry to thrive up north. A wise and strategic play, IMO. Canada is one of the eight nations (along with Russia and Norway) poised quite right to gain from increased mineral exploration and extraction from the North Pole. [Russia has eight ice-breakers, USA has two, and one of those is under repair for the next 48 months!]

Ok, both Apollo and Linear has promising properties in Mexico, but neither of those are even in the pre-feasibility stage yet.

Black Fox has over 32 million tons of reserves grading about 2.0 grams/ton.

Explanation of Mining exploration and production stages:

The real story, naturally, is that the Apollo board and management has run the company into the ground, underfinanced, under capitalized and in massive debt.

Circular Page 51 provides a great insight into capitalization rates as measured against gold equivalent resources - the Adjusted Market Capitalization (AMC).

From this table one looks at the great job that other firms such as Minefinders and Alexis Minerals have done to marshall gold reserves on a shoestring.

Apollo has the gold reserves, and even a producing mine. The problem is they are out just about out of cash and deeply in debt.

Hence enter Linear. Linear has two things Apollo does not: cash and a decent management team.

The main reason that Apollo need Linear is that the firm realizes that shareholders have grown impatient (including your truly) and are not currently predisposed to forking out more dough in shelf offerings and the like. So Linear can immediately alleviate the current cash flow issues. Apollo points out the dream that only, if only, they had the Linear cash - then the future is rosy gold indeed. Point in fact, page 27 in the circular is the Selected Unaudited Pro Forma Consolidated Financial Statement ('fantasy numbers land').

Should they actually meet that target - a profit instead of unending parade of quarterly cash abortions - then the marriage will prove a success indeed. Proof will be in the pudding - producing children (the baby mines in N. Canada and Mexico.)

And while on Linear, what is up with their parent corporation name formed to hold the Box Mine property? 7153945? For real? Were all the seven-digit prime numbers already taken? Even worse, the moniker is ALREADY taken! Some goof has a perfume with that unit number. Personally, the US patent number with the same digit configuration holds my main interest. Alas, why do I have to come up with the great mining marketing angles...

My bright shining star appears early on in the script, page 14. The Apollo board, namely, realizes it has screwed the pooch for the last time and will finally bring in someone with a better track record (shoe store, lemonade stand, whatever - anything will be better at this point!) R. David Russell - the Apollo CEO/President will finally, if belatedly, find the exit door. The new management team should find better direction, and hopefully thrive, under the new CEO Wade Dawe (currently head of Linear).

Like all modern management teams, they are projecting out just a few short quarters. Mercury takes the long view and sees incredibly potential down the road for the under explore and under producing Goldfields Region in extreme northern part of Saskatchewan. The aptly names Uranium City serves as the mining town in the region.

Heavy equipment for the Goldfields region, and the Linear Box mine in particular, are brought in by barge. Mercury highly approves. In fact, I bought my house in a city that previously relied on water transportation and believe that water transportation will again regain the popularity and obvious utility that has reigned for millennia. The age of short haul petro-powered routes is playing out, as all rich fantasy veins eventually do.

Of course exploration and production has been hampered in the region for decades due to terrifically horrible weather and remoteness. Nevertheless, the future glide path is just that, extreme arctic exploration and production. Canada at large, and this new Brigus Gold Corporation (gag) are positioning themselves primely for that glorious golden future.

Perhaps Apollo management saved their very best card for last after all.


6.18.10   CDE shuts down the Martha Mine, Argentina


"BUENOS AIRES (Dow Jones)--Idaho-based Coeur d'Alene Mines Corp. (CDE) has tapped out its Martha silver and gold mine in Argentina and plans to shut the site down while it considers further exploration or a sale."

Oh yeah, plenty of buyers lining up for a shuttered mine, played out of assets, with environmental/social liabilities yet untapped!

 hey, whadya know, Mirasol Resources broke $25K in volume today!



6.18.10    Tom O'Brien was decidedly bearish on Gold

and has been for a few days; states gold will be down next week.

He points out that this rise has been on declining volume, a triple top, and based on fear.

I agree on the first point; second remains to be seen (a triple top is, after all, a failure of a double top) and completely disagree on the third point.

This market has had complacency creep in.


VIX has declined all the way to the 200 DMA today.


6.17.10    Apollo Gold (AGT) about to change their name to Brigus Gold?


Are you friggin kidding me?!?


They're going to dump a great name like Apollo Gold for Brigus?

Geez, how many different ways can this management team screw up???


6.18.10    Apollo and Linear Gold to combine companies

What other nuggets does the Apollo Gold Management team provide in their special circular that they hand delivered to me regarding the deal?:


Apollo crows about their flagship mine, the Black Fox.  Sure, like they're going to brag about the disastrous results at both Florida Canyon and Montana Tunnels?  Right, what great examples of management malfeasance.  [Ok, one could make the case that the highwall instability at the Florida Canyon property was not their fault, that due diligence of a geologist could not uncover this 'differing site condition', fine.  But what about the lousy safety record and other operation problems?]


What about the continued inability to produce at Montana Tunnels?


Not a good thing when the highest ranked search query for the Montana Tunnels project produces this:




Seriously, why not a search query that shows:


- "Montana Tunnels exceeds production, creating new jobs", or

- "Montana Tunnels receives environmental and safety record", or - at a bare minimum,

- "Montana Tunnels  meets production levels".


Is THAT too much to ask?  For this management team, the answer proves a sad if resounding YES, too much to ask...


Instead, the only reference to the mine is by a hit firm that doesn't even understand the current ownership regime. Don't know who to address the complaint letter to? Hey, so how are those negotiations going? Might make one wonder if they are actually intent at all on correcting a real situation on the ground, or disseminating the typical anti-mining pro-taxation claptrap scripted by a hidden/controlling organization.  Nah, couldn't be... Just another case where folks spend hundreds of hours developing a website and can't figure out basic material facts.


 Of course the Black Fox property is a great resource (even if the last drilling results were a little disappointing; somewhat offset by better drilling figures at the Linear Box property), that's the ONLY reason I hold the stock.  All of their production property and Linear's most promising projects, are now in the most mining friendly country - Canada. [Ontario and Saskatchewan]  South America, USA and Australia have all made incredibly poor decisions regarding federal 'management' (e.g. taxation and outright nationalization/distribution) of their mining sector.


Canada retains its historic support that has allowed the industry to thrive up north.  A wise and strategic play, IMO.  Canada is one of the eight nations (along with Russia and Norway) poised quite right to gain from increased  mineral exploration and extraction from the North Pole.  [Russia has eight ice-breakers, USA has two, and one of those is under repair for the next 48 months!]


Ok, both Apollo and Linear has promising properties in Mexico, but neither of those are even in the pre-feasibility stage yet.


Black Fox has over 32 million tons of reserves grading about 2.0 grams/ton.


Explanation of Mining exploration and production stages:



The real story, naturally, is that the Apollo board and management has run the company into the ground, underfinanced, under capitalized and in massive debt.


Circular Page 51 provides a great insight into capitalization rates as measured against gold equivalent resources - the Adjusted Market Capitalization (AMC).


From this table one looks at the great job that other firms such as Minefinders and Alexis Minerals have done to marshall gold reserves on a shoestring.


Apollo has the gold reserves, and even a producing mine.  The problem is they are out just about out of cash and deeply in debt.


Hence enter Linear.  Linear has two things Apollo does not: cash and a decent management team.


The main reason that Apollo need Linear is that the firm realizes that shareholders have grown impatient (including your truly) and are not currently predisposed to forking out more dough in shelf offerings and the like.  So Linear can immediately alleviate the current cash flow issues.  Apollo points out the dream that only, if only, they had the Linear cash - then the future is rosy gold indeed.  Point in fact,  page 27 in the circular is the Selected Unaudited Pro Forma Consolidated Financial Statement ('fantasy numbers land').  Should they actually meet that target - a profit instead of unending parade of quarterly cash abortions - then the marriage will prove a success indeed.  Proof will be in the pudding - producing children (the baby mines in N. Canada and Mexico.)


And while on Linear, what is up with their parent corporation name formed to hold the Box Mine property?  7153945? For real? Were all the seven-digit prime numbers already taken?  Even worse, the moniker is ALREADY taken! Some goof has a perfume with that unit number.  Personally, the US patent number with the same digit configuration holds my main interest. Alas, why do I have to come up with the great mining marketing angles...


My bright shining star appears early on in the script, page 14.  The Apollo board, namely, realizes it has screwed the pooch for the last time and will finally bring in someone with a better track record (shoe store, lemonade stand, whatever - anything will be better at this point!)  R. David Russell - the Apollo CEO/President will finally, if belatedly, find the exit door. The new management team should find better direction, and hopefully thrive, under the new CEO Wade Dawe (currently head of Linear).



Like all modern management teams, they are projecting out just a few short quarters.  Mercury takes the long view and sees incredibly potential down the road for the under explore and under producing Goldfields Region in extreme northern part of Saskatchewan.  The aptly names Uranium City serves as the mining town in the region.  Heavy equipment for the Goldfields region, and the Linear Box mine in particular, are brought in by barge.  Mercury highly approves.  In fact, I bought my house in a city that previously relied on water transportation and believe that water transportation will again regain the popularity and obvious utility that has reigned for millennia. The age of short haul petro-powered routes is playing out, as all rich fantasy veins eventually do.


Of course exploration and production has been hampered in the region for decades due to terrifically horrible weather and remoteness.  Nevertheless, the future glide path is just that, extreme arctic exploration and production.  Canada at large, and this new Brigus Gold Corporation (gag) are positioning themselves primely for that glorious golden future. 


Perhaps Apollo management saved their very best card for last after all.



6.15.10    Obama's Oil Spill Speech: Another Major Problem

His credibility is shattered and now his self confidence has evaporated; a truly dismal performance.  I never wanted the guy to succeed in his agenda (I love political stalemate) but I never wanted him to fail this miserably either.  The country will be profoundly worse off with another three years of this Nero at the helm.


6.15.10    Daniela Cambone vs Alexa Steele

For the Kitco cheesecake correspondent bake-off!

Alexa Flashes the golden smile and pulls hard ahead out of the trading pit gate but Daniela lands a CEO interview and the RACE IS ON!

Good summer show Bart…

6.14.10    I have but One Comment on Last Week's Primary US Elections

The one criminal/career-politician I have hounded most, Nevada Governor Jim Gibbons (Rep.) lost his seat (following episodes of divorce, cheating, multiple assault reports, mis-conduct ad nausea).   All of this occurred against a macabre background - Nevada's worst economic collapse since the 1880's.


By the way, it is incredibly rare for a sitting governor to lose his own primary party election.  But Jimmy deserved it.  I have pointed out his rather large and obvious dark side, criminality, negligence, sociopath and other assorted qualities since the first time I met him - when he ran for a lowly office in 1988.


To bad it took the good citizenry of Nevada 22 years to figure it out, the damage has been near incalculable.


6.13.10    Bilderburger 2010




6.12.10    Understand this is a Good Fundamentals Database

Daily Graphs by IBD


Please do write with any comments on the product, good or bad.

6.11.10    Source for some good precious metals widgets:



6.8.10    Precious Metal Profiling

Our last 4 sales on ebay of 1,000 Mercury Dime lots:


- Marketing Executive, Large Expensive House, Wilmington, De

- Flower Farm, Washington State

- Insurance Executive, Connecticut

- Unknown career, Large House On Lake Michigan 


The buyers aren't right wing survivalists.  These are savvy business executives who have a pulse on the US economy and the bottom line.


6.8.10    Silver/Gold Ratio Reaches new Historic Levels


Just because the silver/gold price ratio is out of whack doesn't mean it will change any time soon unless the FUNDAMENTALS for such change. At one point the Ag/Au ratio was 16:1, now almost 70:1.

We got lucky and turned some platinum profits into cheap silver a couple years ago. But generally, I think it is easier said than done.

Like right now, what is the better buy, Ag or Au?

Au has better strength. It has HAD better strength for most of the past decade. Reversion to the mean is a great long term concept but a tough short term trading strategy.

What, EXACTLY, prevents the ratio from going to 100:1?

Unless some country monetizes silver again, which looks unlikely now, why will the spread in the ratio now suddenly reverse course? Just b.c. you want it to and placed your bets accordingly?

The only thing that I see might change is another country decides to take on the pharmaceutical cartel and allow silver to again become ubiquitous in medical applications. But, I won't hold either my breath or investment dollars until that wind changes direction...

6.6.10    How to Start in Coins as an Investment

(this is how I got started):

1. Begin with junk coins, bags of 100 or 1000 mercury dimes or walker halves, for example (focus on a series or two so your education hours are not watered down too much).

2. Now, your ‘investment’ is just the junk silver cost.  The downside is limited to a) fluctuation of bullion price.  Bullion has been in a 10-year uptrend.  This could end at any time, but there is still an intrinsic value nevertheless; and b) the spread, about 3-4%.  Hence, your downside risk is limited.

3. Look at EVERY ONE of the 100 or 1,000 or 10,000coins. Figure out which dates are more rare, learn the varieties in each date, understand the minting/coinage/metallurgy issues that influence/create varieties.

4. Now you have begun to learn the art of ‘cherry picking’.  Many of these varieties may sell at a premium in higher grades.  These, along side the better dates/mintmarks you pulled from the junk lots, provide upside to the investment WITH NO ADDITIONAL RISK, just an input of time (which creates another dividend called ‘education’).

5. When you have competency in one series, then expand your coin universe to other niches.

Most of all, have fun!

6.4.10    The New Jobs Numbers are Abysmal

Almost 95% of new jobs are Census jobs (and many of them are cooked up)

Yet dear leader is sufficiently alienated enough to declare this a victory, an economy that can only produce drones which spy into your personal like fits his vision of social progress.


6.3.10    How to Get Rid of Mold

This will be a growing problem as more of the crappy chinese wallboard blooms and festers.

The only way to kill mold in porous surfaces is by alternating ultra-violet (UV) and Ozone (O3) disinfecting treatments with Borax treatments.   The UV and O3 will kill mold while the borax surface treatment will prevent the mold colonies from expanding.   Reason you need to alternate the UV and O3 treatments is because the success is highly dependent on pH of the porous surface.   Hence, some treatments will be more successful than others which requires repetition and alternating disinfecting. 

BE CAREFUL, Borax is toxic and PETS like the taste.  (You may not be able to use this treatment).  The borax is a mold inhibitor and is used to prevent spread of colonies which can successfully spore.

Sometimes the best method to deal with a mold infestation is to move and ensure the new place is dehumidified.

Good news - you can kill mold colonies.

The bad news is that some mold SPORES are effectively good as eternal (you won’t kill 'em all).

When they opened pharohs tomb, dormant mold spores in there for millennia began to bloom with moisture from new air entering the tomb.

My suggestion for your consideration is throw away anything you can, and focus alternating UV/O3 disinfection only on what you really need to save. Keep everything segregated in airtight plastic so you can begin to isolate spores.  When you recognize something won’t clean up, probably too many spores – throw it away to prevent the spores from infecting what you might be able to actually clean.

[NOTE: There are some applications where you can either burn (full combustion) or deep freeze dry (with complete dewatering/desiccation) but this is effectively impractical for a household situation.]

[NOTE: You can kill spores with strong solvents, but these will basically destroy any porous surface except maybe some jewelry and other metals.  Even rocks such as limestone and marbles and karsts are rather soluble/porous].

Furthermore, you need a really effective air purifier, not just a HEPA fan.  The cleaner MUST have at a minimum a GAC/ activated carbon component AND a UV lamp AND HEPA and most preferably an Ionizer.


6.1.10    We closed our short position on BP today. 


(Sold the news). Had a really nice run!

Today’s action on BP was based on POLITICAL grandstanding and populism, and not much else.  Moratorium on drilling, ‘get those responsible investigation’, blah blah blah window dressing for those that still believe there is a difference in the political parties.

For those trying to conduct FUNDAMENTAL or TECHNICAL analysis on this stock, good luck with that. There is a new field of stock price analysis called POLITICAL analysis. Frankly, the political populism, cronyism and cult of pull trumps the real numbers.  That’s the downside when you, as a country, move away from rule of law.

Anyway, a bit on political stock analysis:

Politician Buy/Sell Indicator


Furthermore, much of the price action no longer is driven by the old standards of Price/Earnings PE/Growth, etc. because HUMANS no LONGER make the trades, computers do most the volume nowadays.

High frequency trading volume


Anyone entering BP last week was a sucker trade, see how the price bounced right off the 13 Day EMA.  Momentum (political) play here trumps FA and TA.

What is actually most worrisome is the decline in stocks THROUGHOUT the sector; those not affected by the moratorium. Apache (APA:NYSE) is a great example. Look at the juicy fundamentals and technical’s on THAT bird. Wooo.  Setting up a potentially nice buy here if you can get in a little cheaper, hopefully upper $70’s.  Look for support near $75 (a complete Fibonacci 50% retracement of the move from the lows in last July to the high last month).  Look at the 300 D EMA as major resistance.  Probably will find major resistance around 98$, which is where the 20D EMA sliced the 300D EMA support and where the 50D EMA will test the 300D EMA.

Yes, even the Political pivot points will eventually face the math.  Of course, pivot points are nothing more than societal constructs themselves (now adopted by mechanized trading platforms).

Funny stuff!


5.30.10    Remember the Heroes


Many heroes never wore a uniform.


5.30.10    Dispersant Used in Gulf: Corexit



The PLUME is there because the DISPERSANTS are working as designed.


How Do Dispersants Work?


How do oil and water mix? Not very well.  However, I be you have used some 'Italian' salad dressing (water soluble vinegar and non-water-soluble oil).  Note that due to specific gravity, the oil floats on the vinegar (or water).


Before using the dressing, you shake well.


This physical action DOES NOT:

- change the composition of the dressing;

- change the chemical characteristics of vegetable oil or vinegar (including the specific gravity)


Thy physical action DOES 'disperse', or spread around the heterogenous mixture more evenly within a closed system.  So now, instead of all the oil at the top, the homogenous oil sheen has been broken up into droplets, surrounded by vinegar.  Same concept with oil (a series of hydrocarbons of various lenghts from CH4 to CH 28, more or less) in water (ocean).


Dispersants work by creating emulsions.  An emulsion is a a suspension of one liquid in another. You can suspend solvents in a water when separated by differences in cohesion constants.  This is what the dispersant does. The corexit surrounds and dispels clumps of oil initially (and individual oil molecules eventually) and forces them apart. This is intended to create more surface area around each individual oil molecule. When the oil molecules are separated from each other, and surrounded by water, then the microbes (bugs) will eat the oil molecule as food.  True!


Nalco produces Corexit


The exact formulation is a trade secret, but the product is simply a combination of SOLVENTS and SURFACTANTS


The solvents will ABSORB hydrocarbons while the SURFACTANTS will ADSORB (a different work, note the d) hydrocarbons.


A solvent, another hydrocarbon chain, will absorb other hydrocarbons into on homogenous (sort of) mixture.


You know surfactants more commonly as 'soap'.  The surfactant surrounds (absorb) each individual oil molecule and SEPARATES it from all of it's other oil molecule friends.


A surfactant has a hydrophilic (water-seeking) chemical chain on one end of the compound and an oleophilic (oil-seeking) compound on the other end.  This allows each compound to stack upon each other like aligned magnets.   One end of the compound is attracted to the other.  Water works this way, too.  The surface tension between individual water molecules determines the  exact orientation of the water body.   Surfactants grab the oil molecule by the arm and the water molecule by the leg, keeping each separate like a parent referee breaking up a fight by two kids acting like kids.  It is the difference in surface tension (which can be manipulated) that changes the compounds orientation to each other (degree of separation)


The DISPERSANT WORKS and CREATES the 'PLUME' by design.  Oil molecules are physically separated from each other so that the microbes will begin to break them down.


A microbe is the smallest being that can be measured (so far) that has the required suite of chemicals necessary to conduct and replicate all life processes.  These microbes, no more than one-micron in size (and some smaller) possess the necessary enzymes to break down oil and other organic matter


If you have understood that so far, keep reading:


Absorption means that the one substance has fully entered (internal phase) into another.  Really, it is a physical process whereby one molecule 'sticks' to another.


The dispersant absorbs through the functions of colloid chemistry. A colloid is simply a homogeous  mixture of two liquid state compounds. 


The salad dressing started out at heterogeneous, oil floated on water.  By shaking up the bottle, you are using PHYSICAL energy to drive apart the layers, creating a now homogenous mixture of two separate compounds.  Colloids are physically separated compounds evenly spread throughout another liquid compound.  The dispersant actually drives these small units of oil away from each other, further down in the water column, creating the 'plume'.


The dispersant's surfactant chemical and physical properties are father aided (actually, dwarfed by) the oceans chemical and physical properties.  As this great energy drives apart the medium from each other, in a continuous phase, you now have another degree of separated colloids knows as a DISPERSED medium.


The ocean constantly churns the water column through advective and chemical processes.  In turn, this also drives apart the oil compounds.  This is a good thing.  The surfactants will eventually break apart.  Since the lighter hydrocarbon compounds (e.g. benzene) are now gone (they break off the molecule more easily and were also adsorbed by the solvents) and the oils will eventually combine again, through physical mixing and churning, into tar balls.  These balls then can by mechanically removed off a beach surface. 


That is basically how it works folks.


(for my fellow remedial scientists - yes, I know - some implications were presented for the lay person)


Hope this helps.


5.30.10    NALCO (ticker symbol: NLC)

Try to drive the snow back to virgin, it is inorexably contaminated by chemicals.  Dioxin is present throughout the world in parts per trillion, should one believe the literature.


POLITICS drive the equities. The decisions and policy determine which group of favored criminals benefit from public policy.


Look at that NLC chart.  Variable as a teenage girl.  You can plot the highs and lows DIRECTLY to the way the political winds blew regarding should/could dispersants be used on the oil spill.


We might like to think that WE control our economic fate in the equity markets by knowledge, discipline, slight, diligence, and sheer determination.


That was true when the equity market existed, unimpaired.   Now, just a casino.  Right or wrong.  (Computer driven trade on AMEX now exceeds investor-placed orders).


One can make the case with five hundred other ticker symbols plotted against the political vagaries.


Thankfully, some markets are larger than political machinations (Presidents Working Group on Markets - The "Plunger Team" established after the 1987 crash to prop up the stock market).


One can still build true equity in tangible assets and real estate via diligence, ingenuity and sweat.


5.29.10    Twitter Trends Map



5.29.10    For the Hardcore Doom and Gloomers of which I am not one)


A minor treatise

Why do the hardcore doom and gloomers never allow that the collapse may not be universal, and that there may be pockets of collapse, and beneficiaries elsewhere.

Fact is there are very few ubiquitous collapses in written history.  For example, plague/middle ages in Europe benefitted Arabic cultures.  Collapse of Ottoman Empire benefitted central Europe.  Etc.

Sure Roman empire collapsed. SO WHAT! Italy has had over 40 governments since end WWII.  Rome has only improved, STILL one of the most vibrant/alive/relevant cities for 2,000 years running.

Now, you could say the last MAJOR collapse wiped out written history before 9,000 b.c

For instance, Plato wrote of the destruction of Atlantis by her technology used unwisely (and he was not a fiction writer elsewhere).

Nevertheless, where is your cognizance that even the Americans have begun to awake in the past several years?

-          Most US was dead asleep during the ‘good’ years of Reagan/bush1/Clinton. Now MANY understand the existence of the shadow government. Look at the outrage against the major parties, even by those who still support such. Look at the rise of the independents, etc

-          What about the neo-survival movement, back to basics, frugality, belt-tightening, green energy demand?  People do change, sometimes for the better.

-           What the doomers consider ‘paper-overing’ by the Powers That Be, throurgh mass printing of fiat to stave off economic collapse, may in fact be eclipsed by a change in mindset by the populace. Folks are creative and adaptable. That has been the history I have read.

Fact is, our country is on better footing now in many respects than we were 5, 10, 20, or 20 years ago.

I am in better shape now than ever before, there are many others on similar tangents.

Why deny the pockets of improvement?

[p.s. boiling weeds takes a lot of energy. That energy better served by stocking away PROTEIN, which is what becomes real scarce real quick-like.]


5.28.10    Is the Mississippi Canyon Oil Disaster a Biblical Event?


Kinda interesting...


After careful consideration, I've come to the conclusion that if we blow the nuke at the well, it will solve one problem. If we blow the nuke in DC it will solve MORE THAN ONE PROBLEM.

Of course, other problems will be created either way, but so what. That is the beauty of a 180 day event horizon used by our world leaders.



5.28.10    Oil Spill Portfolio


The numbered bullets were my thoughts/suggestions/ideas for the oil spill play on May3rd.  Commentary below the bullets written today.


  1. Invest in Dawn (Proctor Gamble -PG)


PG went immediately up, but came back to where is was on May 3.


  1. BP is down 15%.  Buy the bad news? Haliburton/WEL also immediate plays.


BP is now down just 10%, and half of that was on today's action alone.


  1. Who will SUPPLY the FOOD for all the cleanup crews on the south coast? Get a part of that.


SYY is flat, MCD is down 5%, YUM is up about 5%.  This was against the backdrop of the worst May equity performance in several decades.


  1. Increased government and BP contracts for the typical hazmat response firms, especially those in SE USA.


VE is down 5%, CLH up 5%


  1. Will Price of Oil go up or down? What about the substitutes? Make a play on both the underlying substituted commodity (e.g. play nat gas via ETF UNG) or buy the solar/nuclear equipment manufacturers.


UNG up 8%


  1. Consultants will get a payday heyday.  Both the big firms that do env response design (URS, TTEK, Bechtel, CH2M etc)

URS down 9%, TTEK is flat, of course Bechtel and CH2M are privately held, but the industry ETF: FLM is flat.


  1. Who makes the booms, pads, pigs, nitrile gloves, scrubbers and other gear (hint Dupont makes TYVEK! )

 Just a few ideas for your further rumination…


Dupont (DD) is up about 8%.


Overall, not bad performances within what has otherwise been a very poor equity market this month.


5.23.10    More Stock Buy/Sell Ideas

LHCG @30.31

Veolia (VE) is a BUY @ 25.97

[As of last week there is only one Class-I Hazardous waste Facility left in the State of California). Beginning last year there were three left. In 1986 there were 23!

JUST ONE LEFT! VE (facility in S. Oregon) will be a beneficiary of the quagmire (until waste management pays off whatever politician sunk the permit at Kettlemen City). American Ecology in Beatty, Nv another beneficiary]

Northern Tiger Resources NTR-V @ .20


Buy Siemens (SI) on pullback


SELL Half Position of AEM and MFB

Sell all GFI


5.19.10    Went Long LLEN under $9.50

Lots of hot money chasers and traders pumped this dolly full of hot air when it was trading at 12 and 13 just a couple weeks ago.

Now I'll begin to buy what they're selling scared.

And I'll share a secret with you posted NOWHERE else.

Chinese just signed financing on an Iron Ore deposit in middle Nevada several days ago.  They will build a $50 million dollar mine where currently there is, literally, nothing.  In fact, their Title I design requires power infrastructure that doesn't even yet exist.  True that.

5.19.10    Alexa Steele podcast on Kco

Looks like she had a rough night.  

Do believe the periwinkle blouse means neutral rhodium whilst the left leg crossed over the right one means go long GLD with a 3% stop. 

However, possibly mixed signals here.

Must do a more in depth study...

5.19.10            Bought back GLD in Coverdell#1
What a difference a day makes!
More pull to 1165 than 1315, but interesting enough to take a seat at the ring.

5.18.10    Sold GLD in Coverdell Account #1


Had bought this position @ 733 do believe.

Either the seasonal begin to kick in (with metals headed lower),
or i will have to get back in

still long boatloads (ok, mini-subs) GDX, HUI, SLV 15 miners in trading and Roth accts.

 AND, just bought DBA.

5.18.10    And yes, the oil spill certainly will affect US gold production…

… in ways not currently ascertained. The MMS sister agency, Bureau of Land Management (BLM), plays a major permitting role in most all US mining precious metal operations.  Don’t think for a moment that the scrutiny currently heaped on MMS graft fraud and waste won’t result in more ‘regulations to protect the earth’.  Should each of these operations now require an Environmental Impact Statement instead of the current Env. Assessment under NEPA, costs will rise significantly for US mining operations.

Moreover, the psychological impact of the spill, and the clockwork  pol refrain to increase a revenue tax so the resource extracting sector ‘pays its fair share’ will only underscore serious efforts in Australia and Nevada to dramatically increase miner’s revenue. 

Of course, instead of complaining about the gold vs non gold post ratio, you could have posted something useful regarding the sector.  There is always that opportunity.


5.14.10    Continued Fraud, Waste, and Abuse at the Minerals Management Service

The administration rubber stamps drilling permits, sometimes allowing drilling before the permit is even done. 


So says the NY Times:




Gee, that is exactly what the internal investigation found LAST YEAR. Guess what the administration did then?



5.14.10    Nobody ever makes the point, so allow me:

The 1980 spike in Price of Gold (POG) was the first leg.

Something I NEVER see anyone mention is thus:

The rise from $35 in 1971 to 2nd Primary Wave Low in 1999 (at $255) is basically an order of magnitude move in 30 years.

The previous time required for prices to move an order of magnitude in the gold as money era (as measured by price of hourly wages, homes and automobiles, primarily) was 40 years. (1930 to 1970).

So, it took 40 years for the price of stuff to move up 10x.  It took 30 years for the next 10x move (a house cost 30k in 1970 cost 300 in 2000; a car cost 3k in 1970 cost 30k in 2000).

Very well could happen, the next order of magnitude will only take 20 years.

2000 to 2020.

Here is a comparison of the most recent large bull markets over the past 30 years:


Note two very important items within those bar charts:

1. The gold bull described above (1971 to 1980) is not even mentioned, and

2. The Bond bull is the ONLY one that hasn't crashed (YET!)

5.14.10    Sold Half of B2Gold Today

Around 1.73. Stock chart looking crappy.


5.13.10    1st hand account of BP blowout


5.12.10    Went long QID

...this morning. Timed it well, through luck and circumstance.

5.11.10    Head of Nevada Department of Conservation and Natural Resources (NDEP), Allen Biaggi, retires


30 Years worth.  Nice guy, known for being respectful and full of integrity. Rather young still, wonder why he wants out now??...??




NDEP functions as one of the major permitting bodies for new and existing mines in the State of Nevada.


Here is a list of the minimum permits required for new, operational or abandoned mines:




Fact is, it can take up to a year for some of these permits to work their way through the state and public processes.


Better timeframes require the permittee understand the process, the basic resources, the environmental and safety aspects of mining operations, the issues of concern that arise from resource 'taking', the socio-economic factors impacted by resource development, the technical aspects of mining development and operation, and the permitting and public review process.  Few are those that can handle every one of these regulatory slices.


The most effective and efficient timeline requires that each of these separate permits be phases such that they aid and assist, rather than hinder, each other.


Any one of the permitting requirements can take on a life of their own, full of idiosyncrasies and challenges and quests none can imagine upon inception.


Your property might be a great resource, but if the minerals lie within ancestral homelands, as does Mount Tenabo, the fight could drag on long, expansive and expensive.




Your resource may have previously been considered economically viable, but how will that change due to new state grabs into the miners purse bags through increased mining revenue taxations?





5.7.10    Even an English Teacher can figure out Real Economics:


"Tomatoes and Cheap Labor


This should make everyone think, be you Democrat, Republican or Independent

From a California school teacher - - -

"As you listen to the news about the student protests over illegal
immigration, there are some things that you should be aware of:

I am in charge of the English-as-a-second-language* department at a large *second language??
southern California high school which is designated a Title 1 school, should be the only
meaning that its students average lower socioeconomic and income levels. language
Most of the schools you are hearing about, South Gate High, Bell Gardens ,
Huntington Park , etc., where these students are protesting, are also Title
1 schools.

Title 1 schools are on the free breakfast and free lunch program. When I say
free breakfast, I'm not talking a glass of milk and roll -- but a full
breakfast and cereal bar with fruits and juices that would make a Marriott
proud. The waste of this food is monumental, with trays and trays of it
being dumped in the trash uneaten.

I estimate that well over 50% of these students are obese or at least
moderately overweight. About 75% or more DO have cell phones. The school
also provides day care centers for the unwed teenage pregnant girls (some as
young as 13) so they can attend class without the inconvenience of having to
arange for babysitters or having family watch their kids.

I was ordered to spend $700,000 on my department or risk losing
funding for the upcoming year even though there was little need for anything
my budget was already substantial. I ended up buying new computers for the
computer learning center, half of which, one month later, have been carved
with graffiti by the appreciative students who obviously feel humbled and
grateful to have a free education in America ..

I have had to intervene several times for young and substitute teachers
whose classes consist of many illegal immigrant students, here in the
country less then 3 months, who raised so much hell with the female teachers
calling them "Putas" (whores) and throwing things, that the teachers were in

Free medical, free education, free food, free day care etc., etc, etc. Is
it any wonder they feel entitled to not only be in this country but to
demand rights, privileges and entitlements?

To those who want to point out how much these illegal immigrants contribute
to our society because they LIKE their gardener and housekeeper and they
like to pay less for tomatoes: spend some time in the real world of illegal
immigration and see the TRUE costs.

Higher insurance, medical facilities closing, higher medical costs, more
crime, lower standards of education in our schools, overcrowding, new
diseases etc., etc, etc. For me, I'll pay more for tomatoes.

Americans, We need to wake up.

It does, however, have everything to do with culture: It involves an
American third-world culture that does not value education, that accepts
children getting pregnant and dropping out of school by 15 and that refuses
to assimilate, and an American culture that has become so weak and worried
about "political correctness" that we don't have the will to do anything
about it.

CHEAP LABOR? Isn't that what the whole immigration issue is about?

Business doesn't want to pay a decent wage.

Consumers don't want expensive produce.

Government will tell you Americans don't want the jobs.

But the bottom line is cheap labor. The phrase "cheap labor" is a myth, a
farce, and a lie. There is no such thing as "cheap labor."

Take, for example, an illegal alien with a wife and five children. He takes
a job for $5.00 or 6.00/hour. At that wage, with six dependents, he pays no
income tax, yet at the end of the year, if he files an Income Tax Return, he
gets an "earned income credit" of up to $3,200 free.

He qualifies for Section 8 housing and subsidized rent.

He qualifies for food stamps.

He qualifies for free (no deductible, no co-pay) health care.

His children get free breakfasts and lunches at school.

He requires bilingual teachers and books.

He qualifies for relief from high energy bills.

If they are, or become, aged, blind or disabled, they qualify for SSI. If
qualified for SSI they can qualify for Medicaid. All of this is at (our)
taxpayer's expense.

He doesn't worry about car insurance, life insurance, or homeowners

Taxpayers provide Spanish language signs, bulletins and printed material.

He and his family receive the equivalent of $20.00 to $30.00/hour in

Working Americans are lucky to have $5.00 or $6..00/hour left after paying their bills and his.

Cheap labor? YEAH RIGHT!"


5.6.10    Turns out, not only are the anthropogenic global warming fanatics wrong,

there is now a clinical diagnosis for their compulsive, erratic and obsessive behaviors:




5.5.10    The Collapse of Our Nation

i.e. Obamacare

Read it and weep...




5.5.10    Biggest Oil Spill ever will Destroy Wildlife Refuges and National Parks

Meanwhile, the head honchos for both national parks and wildlife refuges had better things to do then prepare the coast for an environmental onslaught.


They went river rafting, down the Grand Canyon.




And when that started to look in REAALLLY bad taste, even for lifer pols, the taxpayers paid the helicopter to pick them off the river and deposit them back into the limelight!


Good job guys!


5.4.10    Crestmont Research goes on a limb,

predicts a minimum of 0.50 bbp increase in fed funds rates within 6 mos!



5.4.10    BLM Nevada to put over 100 geothermal parcels on the auction block.


Live registered bids.


5.3.10    DOI pulls BP Safety and Environmental Record

That's right, the MMS (part of DOI) had planned on presenting BP a safety and environmental award this week!


Actually, the deep sea oil extraction sector HAS had a very good safety and environmental record over the past 30 years. Safety record rates are tracked by hours lost time per hours worked. The DEPARTMENT of INTERIOR has an INCREDIBLY POOR safety and environmental record. This DOI safety lost time record has historically been one of the worst in the administration, with safety losses MULTIPLES higher than the industries it regulates.

Try a little research before denigrating the honest men and women making a living supplying the petro and minerals you demand as an integral part of your daily life.


5.3.10    Remember this one, an oldy moldy, all the way from a WHOLE YEAR AGO?






Ah, nothing to see here folks, just the bureaucrat/criminal class trading SEX and DRUGS for Mineral Leases and then MISSAPPEARING (Theft) the money for personal benefit.


You know, the ones 'regulating' BP operations in the Gulf.


Yep, we sure got a good deal on THAT one?


You know how many MMS folks were fired for this, by either administration?




Here is comes....


000 ZERO 000 SERO 000 CERRO 000 ZERO 000 NADA 000 NILCH 000 0 0 0 0 0 0 0 0 0 0 0 0 0 0


But don't worry, Salazar and cronies are RIGHT on TOP of the spills response, and getting paid by the hour, overtime, on your account.


Look what a great job they've done so far!



5.3.10    How to Make Money on the Oil Spill...


So, what ARE YOU GOING TO DO to get a piece of the pie?


Based on experience from the last oil spill in San Francisco Bay (Cosco Busan), there will be LOTS OF EASY money flowing from the admin and BP in the gulf.


What is your plan to siphon a bit off the top?


  1. Invest in Dawn (the BEST oil spill dispersant, anywhere)


No, that is often a guess of the newbies.  The reality is that Proctor and Gamble are a VERY large consolidated materials conglomerate. Soap is a small piece of their pie. Moreover, there is ALWAYS an oil spill somewhere – so the actual amount of soap produced is not as you might think.  However, makers of ALTERNATIVE cleanup/remediation technoliges often get a shot in the arm.  One example last time was makers of cleanup absorbents made out of human and other animal hair (it actually works pretty well).


  1. BP is down 15%.  Buy the bad news? Haliburton/WEL also immediate plays.


  1. Who will SUPPLY the FOOD for all the cleanup crews on the south coast? Get a part of that.


  1. Increased government and BP contracts for the typical hazmat response firms, especially those in SE USA.


  1. Will Price of Oil go up or down? What about the substitutes? Make a play on both the underlying substituted commodity (e.g. play nat gas via ETF UNG) or buy the solar/nuclear equipment manufacturers.


  1. Consultants will get a payday heyday.  Both the big firms that do env response design (URS, TT, Bechtel, CH2M etc)


  1. Who makes the booms, pads, pigs, nitrile gloves, scrubbers and other gear (hint Dupont makes TYVEK! )

 Just a few ideas for your further rumination…





5.3.10    Most folks in type-before-you-get-a-degree-or-understand-basic-principles-of-the-subject land

talking about the spill have no clue what they are blogging about.

The reality is you CAN plug a deep hole. BP will need to drill a series of wells (not just one that you hear in the corporate schmedia) that will tie into the existing tap.

Pressure is a function of volume. Increase the capacity of the delivery vessels and the volume decreases. At some point - though BP doesn't know it at the moment - the pressure will decrease to the point they can cap the well, via insertion of heavier than oil/water weighting agents (barium cement, for example) and blockers (layers of various urethane foams and plastic plates).


Read more: http://www.sfgate.com/cgi-bin/article/comments/view?f=/n/a/2010/05/02/national/w064854D77.DTL&o=4#ixzz0mq59PerH

Read more: http://www.sfgate.com/cgi-bin/article/comments/view?f=/n/a/2010/05/02/national/w064854D77.DTL&o=4#ixzz0mq59PerH

Read more: http://www.sfgate.com/cgi-bin/article/comments/view?f=/n/a/2010/05/02/national/w064854D77.DTL&o=4#ixzz0mq59PerH


2.10    Essential Toolbox Contents

This is a great list, well a start...




...for beginners, anyway.


AND some very wise posts in this thread.


Please allow me to note:


Only one person mentioned a welder!! (semi-genius)

Only one person mentioned a puller!! (semi-genius)

Only one person mentioned solder !! (semi-genius)

[Solder now in the US cannot have lead. The new stuff doesn't really work]


NOBODY mentioned:

Basin wrench

Tap and Die set!!!

Drill bit sharpener

Hand Drill!!! (what will you do without power, eh?)

Drill bit extender


Pipe cutter

Metal detector

Metal (paint) scrapers


hydraulic or scissors (or both) Jack

Block and tackle

House jack (seriously, you may need to lift a wall, or portion thereof, to repair a foundation)


...and I won't even start on about machine shop tools.


I have been gathering up tools for five years now at auctions, garage sales and estate sales.  (I started basic house rehab on the side).  Above are really rather basic and essential tools, nothing fancy.


Essentially, there is very little quality stuff made in north america anymore.  Almost anything I have bought from Asia in the past 10 years has been absolute garbage in fancy plastic packaging and a colorful label.


Thankfully for me I live in a town where the very old military base shut down.  The government workers would often steal tools, entire shops actually, and bring them home.  As the old men die off their foolish heirs sell the tools at a song.   Most of these tools made in Chicago, Cleveland and Detroit in the 1920s - 1940s STILL work.  I literally have broken 'tools' recently bought at Home Depot, Harbor Freight, Sears etc that have broke upon first usage!  Some of the older tools I have I don't know their usage, and I still can't find anyone who knows.  I have PERSONALLY witnessed 10 different men try to repair a boiler made in the 1960s.  Not only are decent tools getting scarce, but the *industrial knowledge* base in now fading.


Wish I had better news here. The bright side is some industrial arts co-ops are starting to form, to teach these lost crafts/arts.


Bottom line: Stock up NOW.  Some of these tools are starting to become rare, and even basic tools of high quality are getting scarce in some series.



5.1.10    2010 NorCal Coin Shows




5.1.10    Makes Sense to Me

From one who voted for the Arizona legislation, why and how and who:


I'm Arizona State Senator Sylvia Allen. I want to explain SB 1070 which I voted for and was just signed by Governor Jan Brewer. Rancher Rob Krantz was murdered by the drug cartel on his ranch a month ago. I participated in a senate hearing two weeks ago on the border violence, here is just some of the highlights from those who testified.

The people who live within 60 to 80 miles of the Arizona/Mexico Border have for years been terrorized and have pleaded for help to stop the daily invasion of humans who cross their property . One Rancher testified that 300 to 1200 people a DAY come across his ranch vandalizing his property, stealing his vehicles and property, cutting down his fences, and leaving trash. In the last two years he has found 17 dead bodies and two Koran bibles.

Another rancher testified that daily drugs are brought across his ranch in a military operation. A point man with a machine gun goes in front, 1/2 mile behind are the guards fully armed, 1/2 mile behind them are the drugs, behind the drugs 1/2 mile are more guards. These people are violent and they will kill anyone who gets in the way. This was not the only rancher we heard that day that talked about the drug trains.

One man told of two illegal's who came upon his property one shot in the back and the other in the arm by the drug runners who had forced them to carry the drugs and then shot them. Daily they listen to gun fire during the night it is not safe to leave his family alone on the ranch and they can't leave the ranch for fear of nothing being left when they come back.

The border patrol is not on the border. They have set up 60 miles away with check points that do nothing to stop the invasion. They are not allowed to use force in stopping anyone who is entering. They run around chasing them, if they get their hands on them then they can take them back across the border.

Federal prisons have over 35% illegal's and 20% of Arizona prisons are filled with illegal's. In the last few years 80% of our law enforcement that have been killed or wounded have been by an illegal.

The majority of people coming now are people we need to be worried about. The ranchers told us that they have seen a change in the people coming they are not just those who are looking for work and a better life.

The Federal Government has refused for years to do anything to help the border states. We have been over run and once they are here we have the burden of funding state services that they use. Education cost have been over a billion dollars. The healthcare cost billions of dollars. Our State is broke, $3.5 billion deficit and we have many serious decisions to make. One is that we do not have the money to care for any who are not here legally. It has to stop.

The border can be secured. We have the technology we have the ability to stop this invasion. We must know who is coming and they must come in an organized manner legally so that we can assimilate them into our population and protect the sovereignty of our country. We are a nation of laws. We have a responsibility to protect our citizens and to protect the integrity of our country and the government which we live under.

I would give amnesty today to many, but here is the problem, we dare not do this until the Border is secure. It will do no good to forgive them because thousands will come behind them and we will be over run to the point that there will no longer be the United States of America but a North American Union of open borders. I ask you what form of government will we live under?

How long will it be before we will be just like Mexico, Canada or any of the other Central American or South American countries? We have already lost our language, everything must be printed in Spanish also. We have already lost our history it is no longer taught in our schools. And we have lost our borders.

The leftist media has distorted what SB 1070 will do. It is not going to set up a Nazi Germany. Are you kidding. The ACLU and the leftist courts will do everything to protect those who are here illegally, but it was an effort to try and stop illegal's from setting up businesses, and employment, and receiving state services and give the ability to local law enforcement when there is probable cause like a traffic stop to determine if they are here legally. Federal law is very clear if you are here on a visa you must have your papers on you at all times. That is the law. In Arizona all you need to show you are a legal citizen is a driver license, MVD identification card, Native American Card, or a Military ID. This is what you need to vote, get a hunting license, etc.. So nothing new has been added to this law. No one is going to be stopped walking down the street etc... The Socialist who are in power in DC are angry because we dare try and do something and that something the Socialist wants us to do is just let them come. They want the "Transformation" to continue.

Maybe it is too late to save America. Maybe we are not worthy of freedom anymore. But as an elected official I must try to do what I can to protect our Constitutional Republic. Living in America is not a right just because you can walk across the border. Being an American is a responsibility and it comes by respecting and upholding the Constitution the law of our land which says what you must do to be a citizen of this country. Freedom is not free.


4.30.10    May Day, May Day


Obama appoints Janet Yellen to Fed Board of Governors.  She had been on the San Francisco Fed for years.  Her main accomplishment there was to oversee the complete collapse of the economies of Nevada and California.  Great job Janet, time for a promotion in the administration!!



4.30.10    hell, at least bush visited NOLA during Katrina

"nice job brownie!"

remember that one?

(Bush patting the incompetent bureaucrat on the back as the city drowned with fraud and disaster).

He should still be cleaning mold out of the 9th ward, would there be justice.


4.30.10    Major Environmental and Economic DISASTER

One of the Largest Oil Spills in Gulf Coast History.

Caused by an EXPLOSION of UNKNOWN reason.


But nope, not errorism, nope. Only white 'militia' and tea partiers and Muslims on airplanes are terrorist!!


During Cosco Busan in 2007, the coast guard swore up and down that 480 gallons leaked. They didn't change their story until the next morning, when they said it was over 50,000 gallons. The Coast Guard actually TURNED DOWN mutual aid request from Port of San Francisco emergency vessels during the first (critical) two hours of the spill.  The original Incident Commander WALKED OFF THE JOB!  The Rapid Response Team WAS GETTING BOMBED IN LAS VEGAS at the time and waltzed back.


You know how many govt officials were arrested, reprimanded or docked pay?



4.30.10    Don't worry, the government will send a team out to determine how the well and platform failed/blew up

in the gulf of Mexico.




Hope they don't send the same one that 'investigated' WTC7, government-produced anthrax sent to the senate, flight 93, and the destruction of the banking system...


It's OK, I think OJ still has that crew on retainer looking for Nicole's 'real killer'


4.30.10    The Genesis Lake EIS has provisions for activities planned out until the year 2350.

240 years from now.  Our country isn't even that old.  The geologists and planners think out centuries.

The politicians think out until the next budget fight or election cycle, whichever is closer (nevermore than 12 months away). 

From the Genesis EIS:

"The Genesis Pit lake is not expected to begin forming from the rebounding regional water table until about 2130. When groundwater levels reach equilibrium at an elevation of 5225 feet amsl, the regional groundwater flow system will flow from the Genesis area north toward the Betze/Post Mine area. The amount of groundwater flow from the Genesis Pit to the regional groundwater flow system is predicted to be low (one to two gpm). Model predictions show that 90 percent of the pit lake infilling would be completed by 2350."

4.30.10    BLM, Elko District, Currently has three Environmental Impact Statements

Under public review for expansion of gold operations in the county.




Good stuff!


4.30.10    Bank robbery foisted by man with concealed weapon




Gee, how come AP/MSN/CBSwestinghouse/NBC/ABCcapcities didn't break the story, much less carry the news...


4.30.10    Uh huh. Oil up another buck

But the geothermal and nat gas sells off…


4.30.10    As anyone who has participated on an oil spill response already knows...

There is no glory, press, or funding for actually PREVENTING the oil from hitting the shore.


The reality is the administrations NEEDS the oil to hit the land, so there is an ecological disaster, so that

...the camera crews are there in force

...the politicians have a nice photo op for grandstanding

...the government agencies get more pull in demanding 'additional federal funds' to prevent the next disaster

... the local agencies get 'cleanup' and 'restoration' monies


That's the way it works, from one who has been there.


4.29.10    Even Bill Clinton is a gold bug.

Just before the two minute mark billy goat lets the state secret slip: our country has been swimming around the toilet bowl since going off honest money.




No honest money = no honest politicians.


The power produces an aphrodisiac that requires constant higher doses. These doses are available only for the kingmakers, and they demand complete fealty and service.


Today the current puppet -in-chief enacted an executive directive lowering the flag, at some sites, for some two-bit political whore, now discarded.


He should have honored this honorable american who woke up, albeit late: John Farmer


From Publishers Weekly

"(John) Farmer, senior counsel to the 9/11 Commission, updates the commission's report in this thorough and bipartisan analysis. Drawing on newly declassified records and recent investigative reports from the departments of defense and transportation, the author concludes that the failure to detect and prevent the attack lay in the [bureaucratic] nature of modern government. ... Farmer faults the disconnect between decision-makers and operational employees, concluding that leadership was irrelevant on 9/11 and the official version of events was almost entirely, and inexplicably, untrue. ..."


4.28.10    Today, an inside day on the S&P 500

Means range bound action until it breaks either way.


4.25.10    Buckminster Fuller - One of America's Greatest Philosopher-Scientists


Should be mandatory reading for every american:



4.24.10    Worth a Read, How Phases of the Moon affect Human Behaviors, including Investing and Stock Markets




4.23.10    What the new Financial Regulations mean


Goldman Sachs already has Obama working for them.


Now they want you to fund their risk mitigation division.


True story!




Reality is we don't need new regulations, we need someone to enforce the multiple and myriad regulations on the books.


Problem here is the corrupt politicians don't have the spine and the administration is so corrupt that the 'regulators' spend more time surfing the internet for porn than they do building cases for prosecution.




NONE of those abusers was fired! Government efficiency on your behalf - prime example.


Quick, can you name 10 high profile prosecutions by the SEC over the past decade? How about ONE?


Nope, but I bet you heard about Elliot Spitzer...


So, now to turn that prime example of government efficiency to the healthcare fraud:





4.21.10    The New Federal Reserve Note




Note the 'gold' 100 imprint.  The fed know that confidence in their fiat ponzi scheme is plummeting, so they grasp onto whatever shred of respectability and stability they think they can get past the public.  But the public ain't buying it anymore...


4.21.10    The World's Top Five Holders of GLD - the Gold mimic Exchange Traded Fund




4.21.10    Quadra Produces almost 50Million Ounces of Copper in ONE QUARTER.


Takes the entire state of Nv to produce that much gold in ONE YEAR.




The most interesting part of the article is the last two paragraphs (by then most folks stop reading?)


Quadra working with Chinese Military to develop copper deposits.


So that they can develop ware materiel to use against us after we stop paying on our debt...



4.18.10    Gasoline costs up 41% over the year.   


But the March Consumer Price Index reports no inflation!


4.18.10    More Geothermal Investment in Northern Nevada


Vulcan Energy from Oregon invests in Fernley property:




4.15.10    Tax Day

Is it going to the causes YOU support?


Sure, roads and bridges - right.


For every dollar spent on a  bridge, over $350 is spent on endless war, now lasting twice as long as WWII!


4.15.10    More on Hawaii Land Prices




Not even the decent parcels are selling.


4.13.10    Interesting Read




The videos of Meade and Spears go a little beyond infortainment...


4.12.10    BLM Trying to Decide/Public Meeting on American Flat Mill, Virginia City


The largest concrete mill (precious metals) in the US.




This was always a great place for a party. Take a mushroom and walk along the exposed walls 50 feet off the ground!


Ah the stupidity of youth.  A better shade of gold than the stupidity of middle age!


The Interior Department (BLM) received a cash infusion via the 'stimulus bull' to 'properly abandon' the many adits, mills, holes left scattered throughout the desert.



4.8.10    Chuck Prince and Bob Rubin dog and pony show.


These parasites were televised presenting their schtick to congress this week.  Fact is, the televised event of their indictment, public hearings and prosecution for fraud and treason would have provided the only meaningful inquiry.


While the plebes were disinformed by the 'news media' regarding the geometry of Monica's stained dress, Bob Rubin engineered the repeal of Glass Steagal Act - which directly contributed to the meltdown of the banking sector.


Further, he recommended that Fannie Mae and Freddie Mac insure the packaged dreck foisted as Mortgage Backed Securities (alter to be known as Collateralized Debt Obligations; later to be called "Toxic Assets", now called packaged foistable dreck.


Moreover, after he did the dirty work for the clinton regime Bob was then hired as the 'risk advisor' for Citibank.  So what did Bob do?  Why, he recommended that Citibank tank on even MORE risk on JUNK mortgage bundles (now known as toxic assets) pushed by the new brokerage-banking houses (thanks to Graham/Leach/Rubin/Clinton). 


AIG, for it's part meanwhile, was writing insurance UNCAPITALIZED insurance against these assets ('synthetics').  This insurance was in place specifically to bailout the small banks that bet the wrong way on the mortgage pools.  What actually happened is that the meaningless insurance was put in place so that Goldman Sachs could SHORT the mortgage market ('credit default swaps').  GS was betting that the loans they were underwriting (the mortgage you were taking out on your dream house) were going to DEFAULT.


Goldman was right, your mortgage and financial health COLLAPSED.  And it was all engineered to happen by the same people who engineered the scheme.


Rubin and his friends should be doing life with our parole.


Who actually took accountability for the mortgage meltdown: NOBODY.


Who actually went to jail for the worst financial fraud scheme in written history: NOBODY


Think of the next time you get pulled over for a traffic ticket of fined for some b.s. bureaucratic infraction 



4.8.10    Great interview this morning by Bloomberg Radio this morning with Roger Lowenstein. 


Roger authored “The End Of Wall Street" and explained the financial crimes committed by wall street and the criminal senators with 'oversight'.


4.7.10    Chinese Coin Counterfeiting


Here is a good series of pics about a Chinese counterfeit coinage ring:




I've never once purchased something from China that wasn't a compete piece of crap...


Sure, America's morals are in decline and her fortunes are falling as a result.


But China?  Not like they've ever really had much going for them in the past 5,000 years.


Now they are in peak production, and cheap crap is the legacy they'll leave behind (for a shelf like of a few years anyway)


4.4.10    Nevada vs. Delaware LLC


Nevada still has no income taxes, but they are raising fees and taxes elsewhere.  For example there is now a $200 dollar fee on Nevada LLCs for a ‘business license’, on top of the previous filing fee.

Personally, I think Nevada is now cutting their throat.  All those folks that bought on the dream of a Nv LLC to somehow protect their businesses will eventually even migrate moreso to the better Delaware LLC.

Delaware series LLC is better than Nv LLC b.c. you can  safely hold more than one property in just one LLC, all protected from each other  Each  separate property is an individual series. They function similar to a subsidiary within other corporate formations. . 

In addition Nv is now considering taxing labor costs on services

Apparently Texas is now doing the same thing.

No free lunch.

 Especially when they regulate the soil, water and air; oversee what is organic and not; administer the poison and sewage poured on the crop; regulate the transportation of the food; inspect the packing plants; regulate the kitchen, oversee the staff serving the food, tax the business serving the meal; and then charge for the pleasure of tanking in some nourishment. 

The bureaucracy will eventually consume all oxygen in the room until we kill the parasite…


4.3.10    Remember the push for the 'Know Your Customer Act"

The one where they wanted to track every one of your financial transactions?


Well, what we really need is a "Know your Banker Act".


The one where you can track the criminals running the show.


Here's a start for you:

Troubled Banks


4.1.10    Looking for a technology to vacuum medium grained sand, sandstone parent.


We want to vacuum dredge (super sucker) in a four inch cone, if possible, up to depths of 20 feet and using sampling core of 15 feet; conducting metals analysis at two foot intervals.


Please do forward your latest field example report.


Most obliged.


4.1.10    Nevada Mining Tax increase on the fast track




When they start to amend your constitution to change the wording from a MAXIMUM tax rate to a MINIMUM tax rate, be afraid.


Be very afraid!


4.1.10    This is terrible! One of my favorite bars in the great state of Nv, CLOSED.




Any of you who sat at the watering hole once held tight by Frank and boys, amid antler encrusted ceiling with a view over the deep blue azure knows exactly of what I bespeak.


4.1.10    The bestest most newest Gold Bug for our Viewing Pleasure


Forget Nadler at Kitco, we pegged his shill gig rightly.

The more important piece for analysis is one lovely Alex Stiele:


Sure, she doesn't actually say ANYTHING in her four-second treatises, but it is HOW she says it that corrals my interest.

3.31.10    PCGS, the largest coin grading company, releases their super-hyped Secure-Shield product.


(Collectors Universe is the parent company)


Yawn.  Methinks PCGS just jumped the shark.


3.29.10    Iamgold Corp Started At Neutral By HSBC Securities 
Mar 29, 2010 08:42:36 (ET) - (END) Dow Jones Newswires


Now, how is it that a securities firm has enough interest to begin following a firm, but not enough interest to proffer an opinion on the companies fortunes one way or another?




3.27.10    In 1923 the Bank of Nevada Savings and Trust Company

Paid 5% interest every 6 months on a 1,500 deposit.  The firm was established by mining magnate George Wingfield (still the company president in 1923) and was well capitalized at $140,.000.  At the time and in addition to healthy interest rates of return, banks would still send out Anniversary Greetings or Christmas cards to express grateful sentiment to all beneficent supporters.


Now, instead of thanking supporters, they rape 'consumers'.



3.27.10    Martin Armstrong's Latest




3.26.10    Went Short Japanese Yen

Sold GDX


3.26.10    Aetna Poses quarterly loss

But the big story is they were actually able to open a mine in California!




3.26.10    Nice list of Geology Software

And they don't even have Runge, Netpath, Surfer, Vulcan etc...




3.26.10    Tungsten exposure causes leukemia?

interesting article and comments:



3.26.10    California to Legalize Marijuana via ballot

About time (err, 50 years late actually).

Next ballot initiative in 2011 will overturn Prop 13. That will drive the boomer parasites to suck off another state medical system and allow the working families to finally buy housing at the historic 1.5 annual income ratio.

3.26.10    EUR/Germany/Greece SNAFU

Well, Yalta Conference was just about 65 years ago.  At the time the three big dicks, US/GB/Russia were arguing  about Greece. Russia said, go ahead US, you take em.  US said, no, you go ahead and take them, please. So, US/Russia foisted the bastard stepchild on GreatBritain/Germany. Stroke of genius, really.

 GB’s descent into totalitarian irrelevancy surprises many.  Germany is THE economic engine of Europe, as it has been for the better part of 400 years.  The problem NOW, is that Germany cannot escape its own shadow of the past 90 years. In the latest chapter of fetid  greek corruption Germany SHOULD have stepped up to the plate, at claimed EUR as their charge –sphere of control. Instead, they spoke out only for their own fadderland. This played right into the US/Russia ballgame of the past 65 years. Germany will accrue the debt and shoulder the spoils in gilted guilt.

 Major strategic misplay. And this amid a background of seriously shrinking GB and Israel. Germany had the ring in their grasp and settled for silver yet again; copper if it really wants.

 3.25.10    Trust Us, We the Regulators are to Keep YOU Honest

Chair of the California Regional Water Quality Control Board allegedly failed to disclose her husband is a lobbyist for water dischargers.



chairs the Central Valley Regional Water Quality Control Board. It alleges she failed to disclose her husband's ties to wastewater dischargers

Read more: http://www.mcclatchydc.com/2010/03/22/90846/water-regulator-failed-to-disclose.html#ixzz0j9oRR2Bb


3.24.10    Great Basin Mining Watch Attempts once again to Destroy Nevada Mining Industry


They are rather like acorn. Fail, go bankrupt, get booted and simply fold up chairs, change name, and re-appear with the same old agenda.


Like a fungus.




3.24.10    Great Financial Sector Heat Map




3.24.10    Why did Forced Health Registration Legislation Take so Long?


According to ranking member Dingell, it took that long to build an administrative platform meant to 'Control the People'.


Of course, that has been the goal all along, this and every other legislation passed in the past 100 years. 


3.23.10    Bought UNG at @7.46

Right AT a 52 week 50% retracement; down 25% from when I last sold.


In that same time period the geothermal producers (ORA, HTM) are also down sharply, again about 25%.


Against that decline in gas and geothermal price of oil is up 4 or 5%.


Beware of trying to catch a falling knife and all that...no major wager, majeure. Just a minor liner, miner.


Some of the discrepancy between nat gas, oil and geothermal lies squarely with next major US senate action: pass the Carbon Credit Scam.


Perhaps time to sell healthcare sector (which rose early yesterday against other sectors falling in price, and anchored the rise higher in DOW), because the certainty (sort of) in the medical/health care sector is now IN?  And the paired trade is sell the utilities and buy air monitoring equipment until that fix is IN?


3.23.10    Read and Understand


3.23.10    Against massive public outcry and bi-partisan opposition

Herr Obamao signs 'healthcare'


As predicted, they had to sign something - a piece of junk lined with mirrors.  Frankly, not much will change for me.


What actually happens?


- Those with absolutely nothing, no education, no ability or common sense, and infinitesimal odds of making something of theirselves (i.e. 'democrats) get 'free health care'.   That is, they must pay up to 2% of their gross income or face a penalty up to $2,000.  What actually happens is that they will pay the fine up until it is time to deliver a child out of wedlock and/or they face massive health care issues. AT that point they will sign up for the 'free program' and dump the system as soon as they are treated and/or give birth.


The quality of 'health care' they receive will increasingly become sub-standard, as better care is forced (and has been for some time) outside the system.


The state of Massachusetts has recently show the above examples to a tee.


Don't worry, there is something in there for 'republicans' too. The IRS will expand by a full army Division of tax 'collectors' to put your health data in a database, onto the 'Health ID card' which you must carry, and exert for tribute to the state. All under the 'penalty of law'.  Thankfully the IRS has always employed the bottom of the barrel.  The local office here has one Wackenhut guard, in his 60's, blind and near deaf.  Frankly, we would rather see the local group of incompetents live their live to their dreams. Ultimately they turn against each other any way - the demonstrated threat.


3.21.10    Good Article on Structural Unemployment

The 'Jobs' are not coming back, ever.


Of course, the article is only good and not great, because it flat out lies about the reasons for structural unemployment. Namely, this has all been engineered by your 'leaders' so that the poor will eventually tire of the 'ills of capitalism' and choose something else altogether - one world government.




The "Health Care Bill" and other garbage in the wings, viruses yet to be unfurled, will ensure that!


Time to rethink...many things.


3.20.10    Red Chip radio, interview of John Nadler of Kitco.com by Brad Klein.


Nadler calls the 'equilibrium price' in Price of Gold between 680-880.

He says the current 'price premium' is fear based.

Three years of fear?

Why stop now; outbreak of hope on the horizon?


3.17.10    Back from a couple weeks in HI. 

 State budget and private economy an absolute shambles from what I could tell/saw/was informed.  And I had believed IL/CA/NV/AL/PA were in trouble. 

 HI drought getting worse, not better. On top of that the state is actually getting involved in wastewater issues. HI has developed quite a bit more water regulation in just the last three years. Of course, the state is in it just for the check; not like there is much groundwater to actually regulate. The state would butcher water management anyway.  For proof, look at how poorly the natural resources have been managed by the state/homelands on Kahoolawe over the past couple hundred years (and the isles of Nihoa and Necker over the past 5000 years). 

 An enterprising sort of folk with a PE could make decent coinage by arbitraging the Underground Injection Control regulations against the state’s promulgation thereof.  HI has reciprocity on PE (engineer) stamps with other states.  $350 for a site visit, another $350 for a couple page stamped report. Two hours or so all-in.  Makes for some surfing time.

 During the whole trip Not Once did I hear a shred of financial radio.  No local radio at all – just import of the most base mass media over the airwaves.  Found HI local TV quite GOOD, but again nothing on the financial realm.

 Still, I was amazed how cheap property now is on Hawaii, Molokai and Maui.  None of that will help the local economy in the medium term. Long term how will the Isles develop a production-based local economy? Better hope the price of shipping across the ocean stays low; guess that’s an economic plan.  And of course, the new “Homeland” government should also streamline everything. (insert smiley winky face).

Though personally I imagine they will take the easy way out and allow gambling. Why produce anything (except more bad law and politicians) when you can coax the Asians to leave a few quid on the table!?!

 Maui does have a Winery


 Of course, they must import about 80% of their grapes from California (they only have 25 acres of vineyard).

 Personally, I found their white’s from Pineapple a little sweet for my taste, though the blanc was serviceable. 

 And of course, Maui also had an Internment Camp

It’s just that very few of them ever heard about it.  You won’t see it mentioned by many reports on the subject by ‘the experts’.


But a few still remember the Internment Camp that was outside Pa'ia (Ha’iku plantation).  Even a smaller subset know that the Japanese actually fired on Maui in WWII.  Mama’s used to have a newspaper report of the incident posted on the bathroom wall but apparently the local Japanese historical revisionists were successful in removing such yellow press affronts.

 Maui doesn’t have a coin store that I could tell.  JM Coins out of Vancouver does appear to have a retail outlet to move local rocks to the tourist trade plying Lahaina.  The local paper dealer only had maps, no financial ephemera whatsoever. (HI financial paper is quite hard to come by in volume. The Hawaii’n are more vocal than literate and the paper suffers mightily from the black mold over time.  Best paper dealer in the Sandwich chain is on Kau’ai.

Had hoped to have a better scoping report this time around. (looked at land on Maui, Hawaii and Molokai), just wasn’t meant to be.

 I did find the Maui folks friendlier this time, not sure how that happened.  Suppose a decent depression helps dive away the hubris a bit. This time was able to drive along the coast from Kihei (last time the road was closed at Kipahulu). Frightenly beautiful and not near as crowded as the other roads.

 Overall a nice trip for the enjoyment and relaxation, just not as productive as I had hoped.  Perhaps anathema??? 

3.17.10    Colorado Ski Trip

Should’ve stayed local for the ski trip. Colorado snow was poor to moderate, though we did have some minor fresh powder.  Vail/Beaver Creek was crowded and conditions were poor.  Of course, locally Tahoe has had a banner year, some of the best snow on the continent from all sources, along with Utah.  You saw the misery Banff/Vancouver endured this year. Taos had been near dry. 

As a point in fact had a great afternoon on Ski Spooner outside Leadville. Better snow than vail and few people clogging the decent runs. Locals in Leadville set me up with the best rental equipment I ever had (right now I am down to just three pairs of cross country skis).

Had hoped to write up a blurb on the National Mining Museum in Leadville. Perhaps some year. WORTH THE TRIP, nuff said for today.

Pretty down too, did not expect to see the painted ladies (Victorian Houses, folks; other ladies moved on to ply their trade in Denver). Denver Mint tour also interesting, worth the time alone for the propaganda spewed by Treasury. Quite entertaining, actually. But SAVE YOUR DOLLARS for the SF Mint Next month; Scott is organizing another coin show at the Old SF Mint; the one last fall was a fan favorite, hence the redux.

Unfortunately the very bad drought on the Colorado Plateau will continue.   Colorado River will sink even lower, raising water and power costs on the west coast.  But even that lower river opens new possibilities. Believe one can now hike into the Hopi fortress from the Tanner trail. I understand this was not previously possible (and certainly did not appear easy when I went down the trail last March; even then the river was only 13,000 CFS – was 39,000 CFS ten years ago). 

Few months ago a water man from Hawai’I went down the length of the Colorado River in the Grand Canyon STANDING on a long (paddle) board. First time this has been done in written history (okay, 300 years). The guy dedicated the journal to the fight for water rights by the indigenous everywhere.

Water, lock yours up NOW…

3.17.10    Metal.com

Just recently sold for $165,000

3.17.10    Regal Gold Coins

In our experience they've done everything the told us they would do.

http://www.regalgoldcoins.com/ Buy Gold Coins

For those considering a Rollover IRA might be worth giving them a call.

Great website too...

3.16.10    Very (really) Basic (beginning) Intro to Counterfeit Coin Detection - The Date:


 In a related note, NGC (mercury’s preferred Coin Conservation Company) opens a Grading Office in Hong Kong. Now they can get the counterfeit slabs made using LOCAL examples…

3.17.10    Of course, the Chinese now counterfeiting Hawaiin Coinage

Do yourself a favor and peruse:

Hawaiian Coins, Token and Paper Money.  Maurice M. Gould & Kenneth Bressett. 1960 45 pgs

 …Before dropping a dime.

 3.16.10    Whoever Asked About Stained Currency,

Not easy to remove.  If the gunk is on the surface, you can use various treatments repeating solvent applications and steaming.  If the problem is truly a stain, you have a chemical issue.

Should the stain be very recent, the best choice is to freeze dry the paper (do not have the paper in the liquid phase whatsoever).  Use dry Ice (nitrogen) in a vacuum to enduce sublimation in the paper  (water in the paper goes form solid-state to vapor-state without every becoming a liquid.

There are more expensive freeze dry chambers that can be utilized but if the currency is actually worth something, suggest using one of the tope ‘conservation’ firms to slab/authenticate the piece.


 Perhaps you've entertained the idea of learning the ways of paper restoration and curation.  Here are a few subjects that would come in very helpful:

 Math (geometry and algebra)


Chemistry 1a

Chemistry 1b

Chemistry 1c

Atmospheric Science

Brief Organic


Physical Chemistry or BioChemistry

Textiles, Dyes and Fabrics



Paper Artistry

Should obtaining a four year science degree not appear in your likely life path, you could simply focus on fixing a problem without necessarily understanding all the chemistry and physics underlying the problem.  For your edification here are but a few sample problems you will likely encounter with collectible paper:

Removal from facing, backings


pH adjustment

Removal of foxing and acid staining


Alkaline and metal salt application 

Tape Removal

Stain removal

Hole, Rip and Tear Repair (Joining)

Archival Patches and Backing

Laser Use

Flood and Fire water damage

Paper Restoration Machinery


Paper Restoration with LASER


Proper Paper Care 


Eucalyptus oil. Widely available in California and Australia; carried by some department and hardware stores.

Peanut butter to remove labels.

On nonporous surfaces (glossy paper, etc.) consider Neutrogena Sesame Body Oil.

Avon Skin So Soft is another product that removes certain gummy glues well.

Olive oil, especially for use on metal.


WD40 removes labels off of metal well. Hairspray will remove many stickers.  As with all solvents, can leave a stain. 

Goof-Off works well on sticky paper backings. The same manufacturer also makes a product which removes labels from glass called Painters Pal. 

Citrus is an acidic solvent. Citrus based products such as  Goo Gone work well removing paper from wood.  This product is combustible.

Acetone has its applications, but it's such a highly flammable material that only specialists should use it. 


United Label [Unitedlabel.com] makes a product called "At-Tack" which feels like oil but won't leave residue.

Bestine can be found in art supply stores. Although both finicky and expensive, practice  will provide applications that prove very useful.  (Labels off newspapers, etc.) Use cotton, such a Q-tip to apply.

Scotch tape: Put over the unwanted sticker, press firmly, remove quickly.

A Good View on Paper Document Restoration Philosophy:


3.16.10 What’s up in Gulf of Aden?

Didn’t you hear that chick on CoasttoCoastAm two nights ago? She explained very carefully that HAARP accidentally opened a hole in the ozone layer and is letting in dark energy 4th dimensional beings in the general area! Explains everything!

She laid out a couple other nuggets, but don’t want to ruin the suspense in case you planned on listening to the podcast…


2.26.10    MERS Gets Neutered?


For OpEdNews: Ellen Brown - Writer

A landmark ruling in a recent Kansas Supreme Court case may have given millions of distressed homeowners the legal wedge they need to avoid foreclosure. In Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, the Kansas Supreme Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure. MERS is an acronym for Mortgage Electronic Registration Systems, a private company that registers mortgages electronically and tracks changes in ownership. The significance of the holding is that if MERS has no standing to foreclose, then nobody has standing to foreclose " on 60 million mortgages. That is the number of American mortgages currently reported to be held by MERS. Over half of all new U.S. residential mortgage loans are registered with MERS and recorded in its name. Holdings of the Kansas Supreme Court are not binding on the rest of the country, but they are dicta of which other courts take note; and the reasoning behind the decision is sound.

The rest at: http://www.opednews.com/articles/LANDMARK-DECISION-PROMISES-by-Ellen-Brown-090921-894.html



2.23.10    Canadian Premier Leaves Canada and Seeks Health Care in US

Pretty funny, and accurate.


"An unapologetic Danny Williams says he was aware his trip to the United States for heart surgery earlier this month would spark outcry, but he concluded his personal health trumped any public fallout over the controversial decision".


Canadian Press. Tara Brautigam. 2.22.10


2.22.10    Let me google that for you.

The company finally comes out with a semi-useful app (the only one I've used so far):


2.23.10    As much as I love piling on...

Even I can't believe Toyota practiced their craft so poorly as to not put out a manufacturer bulleting rather than a forced position requiring another recall, this time of the Avalon.  Are there ANY Toyotas not recalled in the past 24 months?


2.17.10    Great Site that Documents Inflations Past




The big one hasn't yet hit, get prepared now...


(and the big one may well be an even worse spell of deflation than we have just experienced!)


2.14.10    Global Warming Fracas Continues to Unravel


IPCC Pushed Known Falsehoods as part of their propaganda campaign:


Supposed Data that showed Anthropogenic Global Warming in now 'Lost'



2.14.10 mmmmm

Chocolate covered strawberries!


2.12.10    Nevada Geothermal Sector


Ram Power, of Reno, signs 20 year production deal with NV Energy.




Valuation in micro cap power companies must take into consideration their upline contracts. Just Wednesday NV energy announced a 20-year agreement with Ram Power Corporation of Reno, Nv. Now that adds stability to a revenue stream!  Anybody give you a 20 year guarantee lately?

One cannot conduct valuation only on production potential. A revenue is only as good as the forward looking P/E ratio.

That said, I am long Ormat and HTM.


2.9.10    Major Ruling to Shake up 60 Years of Nevada Water Rights




And, a Decent Overview of the California Water War taking Shape




Even operation of the pumps is matter of federal oversight:




What a mess.  At least we have had a decent water year; that will stave off anarchy for another 24 months...


2.9.10    As the Nevada Economy Plummets


The scavengers look to grab whatever is left - Mining Tax Increase battle coming up next.




All the fools that moved to Vegas in the last 6 years will vote in the tax, and won't stop until the last sector of the last industry leaves the state.


2.8.10    Toyota Finally cops to the garbage called a Prius


Acknowledges brake failures; a week after I posted about it here!


2.8.10    What the Grocery Store Looks Like After Three days

without deliveries




Virginia, 2010 snow storm.


THAT PICTURE is the reason why you NEED to prepare now!


2.8.10    And the Press reports NOTHING


About the Large Scale Financial meetings between international bankers and Treasury Secretaries that have occurred in Switzerland and Australia over the past couple weeks. These meetings are developing the financial New World Order.  


2.4.10    Head Start Impact Study Final Report


The largest program in our public education proves a complete unmitigated disaster and waste of resources.  And none of the major new outlets will even urn the story!




2.3.10    Give money to family?


1st They probably don’t really need it; and would rather take your money instead of actually work a second job/sell something/garage sale/pawn.

2nd They probably don’t deserve it.  Did they already pawn/sell everything? Really, everything? Did they spend 85 hours last week trying to gain some extra income? I doubt it.  So that leaves CHARITY.

Charity does start at home.

But first go look at the children burn hospital in Galveston or Fresno or the children’s cancer unit at your local hospital.

And then figure out which family could really use a break...

2.3.10    Toyota Blows Another


Rising customer complaints about the brakes:




You've gotta love the Toyota QA/QC department.  They're not having problems with the windshield wipers, or radio, or dome headlight.


Nope, the accelerator sticks and the brakes fail!


1.30.10    Compressed natural gas (CNG) DOES work for large scale transport


The largest civilian organization fleet in the US, the United States Postal Service, ran a fleet of almost 215,000 vehicles predominantly on CNG from 1979 through 1996. At that time they began phasing CNG out b.c.:

1) Gas was cheap
2) b.c. gas was cheap, the public and other commercial users began moving away from CNG.
3) the economy of scale was lost,
4) 2 of the 3 domestic manufactures of conversion kits closed up shop

Then the fools called Congress forced the ethanol production scam.

Now, the USPS is looking to re-tool the fleet back to variable or fixed alternative fuels.

Lessons learned from the previous 15 year operational history are that CNG does work and has about the same efficiency, cost and scale parameters as gasoline or diesel.

The major drawbacks of CNG are:

1. Increased flammability of the fuel and associated risks
2. Ford never quite perfected the upper end of the engine regarding suitability for transfer FROM gasoline to CNG. Service costs as a result remained high.

Right now Ford is producing some of the best cars on the planet, with a very strong management team.  Last I researched Nissan was the best overall car manufacturer but Ford was just a hair behind, in second place. (Toyota was no longer even in the top 5).

Ford only NOW should be up to the challenge to produce sound retrofit kits and/or CNG cars off the assembly line.

Those are operational facts.


1.27.10    Guess What Else is Prohibited


Getting your money out of Money Market Funds:




1.27.10    State of the Union Address: Had me in Stitches

Funniest charade I've seen in quite some time!  My favorite part was when he said he would double US exports within five years!(*)


(* Subject to 'National Security Concerns)


That's right, NATIONAL SECURITY (crony contracts) trumps bilateral trade - you heard it straight from the horses ass.


In other words, see my post two below where the US Treasury Department is REFUSING INVESTMENT IN US MINES as a matter of policy.


And then they panned on the fugly-soul commissar.  Hey did you hear about how the guy working for TSA who planted white powder on an innocent bystander last week 'as a joke' was brought up on charges?


No,  Me neither...


1.27.10    Thousand of Toyota Car Customers Left Holding the Bag and in the Dark




Frankly, I am surprised how many tools actually still buy Toyota.  Just a cursory amount of decent research will show that this brand peaked years ago, and has been riding on outdated sense of quality ever since.   I don't plan on ever buying another one given the fiascos we had with our last one - a true piece of junk.


The last two cars we have purchased have been Nissan.  They have both been EXCELLENT cars, no problems at all. Our due diligence had us looking at Ford as a second choice, for both cars. Ford was just a little lower than Nissan when we looked in 2002 and 2006.  I have been looking again and hope to by a Ford next.  My favorite care so far was a Ford.


1.27.10    Toyota is also shutting down a US plant, ramping up this week


The NUMMI plant was a joint venture with that other giant of waste -GM. Large employer in Fremont, Ca. Drove by last Saturday and the place was on skeleton staff. This week they held an advance canning session captured on you tube. Showed ignorance on all sides.

Oh well, lost another major factory. No biggie. Kids today who become FEDERAL POLICE will not have to pay back their college loans according to dear leader this evening.

Who needs a factor job? Not nearly green/national security enough...



1.25.10    BIG PROBLEM in US Mining


Nobody is carrying this story, so I will...

There is not much domestic capital or credit available to small and midcap US mining companies. It takes large amounts of money to fund a company that has explored and discovered economic mining deposits and turn those deposits into a producing property. Mills and processing units require large amounts of power, water and CASH.

The Chinese have actively been buying up property in Nevada and have recently begun to fund producers.

One such line of credit was extended by the Chinese, to the tune of almost $300M USD, to the firm First Gold.


However, the US Treasury Department has DENIED the investment transaction based upon UNSPECIFIED ‘National Security’ concerns.

Nevada is in the midst of a depression (not a recession) based upon dozens of economic statistics and elementary analysis. Nevada needs increased employment and a decent tax base. The US needs to minimize its trade deficit with CHINA. One way to do this is to accept their cash (return of US Treasuries) to develop POWER and MINING Infrastructure. In turn the state and the US will be able to export physical gold to the highest bidder (which has been the Chinese for the past several years).

Do not allow domestic enemies in the US Treasury to derail domestic infrastructure and manufacturing.

Senator Harry Reid’s office is aware of this negative development but NEEDS TO HEAR from You.

Further, the Nevada Lieutenant Governor, Brian Krolicki, has worked to reverse this block against domestic gold production.  He is the one who signed the Memorandum of Agreement with the Chinese.

Brian also announced a Run against Harry Reid. At that point the Nevada Attorney general started an ’investigation’ against B. Krolicki. Of course the empty parade could only carry on for so long, and the NV AG has dropped the charade.

However, the damage has been done. The UST has not released the block against First Gold line of credit offered by the Chinese.

Let your UST representative and your Majority Leader, Senator Harry Reid, know that this unilateral action by the Treasury department is not supported by the citizenry.



1.24.10    Video of Market Street Streetcar, San Francisco, 1906 - couple days before the earthquake


Great video!




1.23.10    San Jose Coin Show Today


San Jose Coin Club did a GREAT JOB with this show.

They heard the comments on the poor fairgrounds locale and did something to address the concerns.

T'was a nice location, albeit a little tight space-wise. When I arrived around 12:30 the walkways were packed and was hard to move around. Also, bourse manager – PLEASE put a little longer ramp over the electric wire bundles, a few older folks were obviously tripping over such.

Word was that though traffic was good, the dollars weren’t quite jumping out of pockets – not completely surprising. Met a new (to me) dealer from Saint Louis, Mark Reid; nice guy with some nice stuff I picked up at a great price (financial paper).

Also spent some time at Mac’s collectibles. Had never bought from them before and enjoyed the pleasant transaction with Dale. Other nice interactions and transactions, as always with Locke, Griffin, Braga and some of the other N.Cal regulars.

More positive props for Sal Falcone.  A great asset to the community; tried to convince a couple of us browsing his table to set up tables of our own next time (not that we could get a spot); so he offered consignment.  On top of that he remembered a coin (ok, a token) he sold me last time he now wants to buy back HIGHER. Now THAT doesn’t happen every day (at least to me).

[oh, Insert shameless plug here for next San Francisco Mint show in April].

One thing I did notice different this show versus all last year was reluctance to take some gold bullion I had in trade. Seems that folks who snapped up every fractional piece and salivated while doing so Last Year, now don’t want more bullion (and this after a healthy $1,000 correction which makes it more affordable.

Go figure...

1.23.10    Loss of American Factories

Stark reality

per Richard McCormack

Since 2001, the country has lost 42,400 factories, including 36 percent of factories that employ more than 1,000 workers (which declined from 1,479 to 947), and 38 percent of factories that employ between 500 and 999 employees (from 3,198 to 1,972). An additional 90,000 manufacturing companies are now at risk of going out of business.


1.23.10    Obama Opens his Mouth on US Economy


His 'plans' send the stock market down large three days in a row...


1.23.10    Today 800$/oz USDollar is average production cost.


This serves as the floor, just like $250 USD was double floor.

Ca mines may be impacted by revision of California NPDES permit (clean water act); construction Notice of Intent.

Pretty onerous can of worms, that one, shifting responsibility from certified contractor to company official (prelude to a regulatory sector assault IMO)


1.23.10    Cartier Resources. 


Explorer/Property play, worth a very small speculative gamble on pullback to @ 0.22 (if it gets there) CDN IMO.




10M CDN microcap; burn rate 40k winter to 160 k summer.


Not yet discussed anywhere...


1.23.10    Stillwater (SWC) Looks Stinky


Still overbought, MACD peaked, long way down to 50 Day EMA@10.25; sell volume declining but STILL over average volumes (three days running).


1.22.10    Bought HL @5.32


1.21.10    Important article - How the Fed Robbed the Middle Class Blind




1.19.10    Nice to see 1 Million Massachusetts Citizens piss on Teddy's Grave


A befitting tribute of legacy.  My sense is the guy who stopped leaving flowers and cognac at Edgar Allan Poe's grave after almost 50 years will start leaving the voting results and a Boston Globe Headline "Health Care Dead" on teddychappy's grave...


1.17.09    Went to the local Coin Store today


Shelves were rather bare.  Nobody buying OR selling coins.


Folks are holding out, keeping what they absolutely must and jettisoning the junk.


I picked up a little gold.


Been averaging up for 10 solid years now.  Still don't have enough, and gold still looks cheap.


Go figure.


1.17.10    Great to see 1million Mass citizens


piss on teddy's grave - a befitting tribute of legacy.

My sense is the guy who stopped leaving roses and cognac on Poe's grave will start leaving the voting results and Boston Globe headline "HealthCare Dead" on teddychappy's grave.

at least a start...

1.12.10    Today – There is No Federal Estate Tax

The Estate Tax Expired January 1st.

Previously, there had been a 3.5 Million (7) United States Dollar (USD) exemption, per person, per estate.  So, if you and your wife have a 7 M estate (in a community property state), then you HAD 3.5M exempted from federal estate tax and she had 3.5M exempted so long as you had a properly drafted bypass (A=B) trust.  What actually had been the best strategy is that upon your death 3.5 million goes into the Bypass (B) portion of the estate, left for the benefit of your children.  Your wife then controls Part A of the trust, living on that 3.5 million (which, in turn, can be passed along to heirs).  Money above and beyond was taxable up to a maximum rate of 45%.

As of TODAY there is NO USDollar exemption.  You can die with 100M USD and not pay any tax.  However, don’t put antifreeze in papa’s oatmeal just yet.  There is very little likelihood that a US congress dedicated to lowering your standard of living will not provide some goofy ‘fix’ that reaches back retroactively.  The reality is when Congress is in session they will concoct whatever is best for their lobbyist friends; anything is possible, and the worse case scenario is the most probable. That is why there is an entire industry devoted to ‘tax preparation. The regulations were designed such that YOU must pay money to an industry to ‘properly file’ your taxes. That industry, in turn, provides kickbacks to the same crooks who write the impossible regulations.

As currently stands in regulation for 2011, according to existing regulations, the exemption will go to 1 Million (closer to 1.3M with fine print [step up in basis adjustments]) with a top cap of 55%.

Even more troubling is the sunset of previous guidance regarding step up in estate basis.  A complete mess brought to you by the same fools so actively working behind closed doors to ‘FIX’ health care for YOU!

In other words the rich get richer.


-          Do you have more than 1.3M USD in assets?

-          Do you have an existing bypass trust

If so, time to fork over more ‘crooked congress tax’.

Bottom line: Do you have any money?


Give it to your masters (or don’t let them know you have any).

1.11.10    Are you converting an IRA into a ROTH IRA ('ROTH Conversion), maybe?


Maybe not a bad idea, maybe... 


(Or: Why the stock markets may face a major retraction in the next 24 months).


If you are converting 100k, for example, from a traditional IRA (and assuming relatively stable income history and claimed deductions) then that 100k is taxable.  However, the regulations are such that not all that 100k will hit your return this year as taxable income.  Some of that taxable income will be rolled back into 2011 and 2012.  Half is added to the 2011 income and the other half (50k in this example) hits the 2012 income return.  So, for those close to the 25% marginal income rate, this is an opportunity to minimize your taxable income for two years on part of that taxable income (the converted traditional IRA).


One potential drawback:


That 100k, in this example, rolled from the Traditional into the ROTH IRA is now fully characterized as 100k ROTH money.  What if, between now and the end of 2011 (or 2012), the 100k that you put into the ROTH IRA was entered into stock market (or bonds or whatever) and the stock market tanks?  Well what happens is this: Your account may go down in value, lets say down by 30% (such as was the case for may in 2008) and now your account is only worth 70k. How3ever, you still will have to pay taxes on that fully characterized 100k, even though you only have 70kleft!


Not far fetched at all, in fact you only need to go back 10 years to see that this was EXACTLY THE CASE with the last Traditional to ROTH window in 1998.  (At that time you could spread the rollover over four tax years).  Folks that ran 100k after the go-go stock market runup in the 1990s lost, in some cases, 40k in the 2000 NASDAQ crash.  So, they had to pay income tax on phantom gains.


Same as it was last couple years with folks who enacted short sales on their real estate.  Some folks could no longer make their mortgage payment on a 300k mortgage when the house was now only worth 200k. The bank accepts a short sale at 200k, and the IRS hit them with a bill for taxable income of 100k.


The law of unintended consequences.


Or, as some have pointed out: Just another scam engineered to separate you form you money and force your pawnage onto the largesse of the nanny state..


There is a strategic move here, file a tax extension so that you can push back your filing until the middle of October, after you have another six month window into stock market performance.


1.11.10    IRS Commissioner Does not understand IRS Code, uses Tax Preparer


The goal of any regulation is to make it so suspect, so complex, that the average person cannot understand. This provides the option for the bureaucracy to randomly charge anybody they choose (and not charge their allies).  I call this it the Tyranny of Random Enforcement.

Of course the Commissioner does not understand the IRS code, for that matter, neither does any most of his staff.

Depending which source you believe, the IRS interprets their own regulations incorrectly between 20% and 48% of the time:


More penetrating, is the admission (only when caught) by the IRS Commissioners Boss, Mr. Tim Geitner (US Treasury Department head), that he did not pay required IRS tax.  Hey, why pay it if you cannot understand it?  Great precept (and a great precedent, Mr. Geitner).

In fact, do believe that precedent was developed by Hammurabi and followed by most courts of flaw on this planet for the last several hundred years.

Time to follow his lead?

1.10.10    Treasure Hunters Mega Show Gold Coast Jan. 22-30 1,000. Las Vegas, N.V


1.10.10    Gold, Peace and Prosperity

Written by the Hon. Ron Paul, M.D.

True more today than yesterday...


1.9.10    The euro ain't what it used to be (the 'never was')


Romanian family throws out shoes full of cash


(gypsies play w/ gypsies)




and as usual, the comments are better than the story...


1.9.10    One Man's Trash is Another Man's Treasure


Wasn't that long ago that gas, oil and mineral explorers would hit hot water on exploration wells.  They would cap it, move on, declaring a loss.


Now companies are coming in LOOKING for those hot water sources.


Be careful what you declare a loss.


Blue Mountain Geo-Thermal drilling a success




Of course, there have been a lot of folks dumping land around Blue Mountain and Eugene Mountains in the last 18 months, as low as $250 acre.  Sand dunes and rock, mostly.


Get out under another pumper's cover, eh?


1.9.10    New Long Canyon results - AuEx hits one


"Fronteer Development Group on Wednesday announced new step-out drilling results show the strongest high-grade, oxide gold mineralization encountered to date at Long Canyon in Elko County.

AuEx stated that an updated resource estimate for Long Canyon is expected at the end of the first quarter, using results of the 2009 drilling campaign.

Vancouver-based Fronteer has an exploration office and warehouse in Elko and has two other advanced exploration projects in Nevada, Northumberland and Sandman.

Reno-based AuEx is also involved with Agnico-Eagle in another exploration project in the Pequop Mountains and with NuLegacy Gold at Wood Hills west of the Pequops, and has other exploration projects in the state."  — By Adella Harding

1.9.10    Pumpers: silver and silver miners

the lesser gurus and pontificators been pushing lil sister silver into this run.

'undervalued compared to gold'
'over performing in this correction vis a vis gold'

dumping the lesser quality onto the greater quantify of masses, while they rotate into white metals.

the smart money rotating out of white metals into water and energy production, conveyance and rights business.


same as it ever was...

1.9.10    This beautiful work of art is worth 8 minutes of your life.

pay attention at the beginning...


YouTube - Kseniya Simonova's Amazing Sand Drawing


1.9.10   GG muscles out ABX on El Morro.


Nice to see the majors begin to outbid each otherover existing properties.

They are investing forward. Miners can only develop certain properties. Unlike real estate where you can always develop some crap housing suburb over a garbage dump, fill, in the boonies etc.

Look for the energy transmission research, development and operations sector to boom over the next ten years.

Along those lines, environmental document out regarding El Paso energy proposal for a 1.5$ Billion pipeline to transport nat gas from Wyoming to Nv and Or.


My understanding is that per capita, Wy is actually the fastest growing state right now.  Will be interesting to see if the 10 census bears that out...


Indeed, the smart ones with a little cash are buying up real estate.

The smarter ones are buying up transmission providers.

The connected ones are swapping lesser parcels of land for those in Right of Way of future transmission lines.

The smartest ones have already bought out the water rights associated with those parcels (e.g. Nevada has a five year abandonment period).

The corrupt ones already had water rights 'given' to them via legislative fiat decree.


You can lookup your favorite N. American minor water rights here:




It all comes out in the rinse and spin cycles, watch it go around...


1.9.10    A hearse delivering a body to a funeral caught fire Friday afternoon

when sparks from a front tire flattened in a collision sparked a blaze.


The driver was later arrested on suspicion of driving drunk.




And you didn't think undertakers had a sense of humor!


1.8.10    Very happy w/ NGD and IAG


They both have developed good properties and turned into efficient and smart mid-tier producers. 


Exactly the sweet spot of the smart market (wild speculation notwithstanding).


1.8.10    Bought ORA @ 37.00

Triple bottom support short term.  Up 2% after hours (don't know why). Have not been in the stock for over 1 year (I prefer HTM).


Longer term, possibly in wave IV (down) with more downside to come.; long term trend support is all the down in the mid 20's.


Each of the previous two wave IV primaries have penetrated the 200 day EMA to the downside.


1.8.10    What the full body scanner Actually shows, vs. what the govt says it shows:




And you aren't outraged?


1.5.10    Must Reads


Some great stuff...







1.3.10    Don't Give up the Good Fight

Pharting against the wind – I don’t think so!


In early/mid 1980’s I and a few like minded souls campaigned against marijuana prohibition.  Partly b.c. I was a smoker (but knew I would eventually quit, which I mostly have) but MORESO b.c. I saw the ‘rules’ on prohibition allowed the govt to confiscate cars, houses and other assets for simple possession – an use those assts against the citizens.

I saw the song Reagan and the Rubes used ‘Just Say No’ to further the police state and limit personal freedom and responsibility.  AT the time, in Nevada, ANY measurable amount of THC was a FELONY.  The Reno PD would PLANT on someone to get a conviction/confiscate property.

At this point, the DA will no longer prosecute for possession. The NV vote for medical Marijuana was VERY close last time; prohibition will likely end next vote.

The tide turned.

I knew what I was up against at the time.  Myself and a very small band persevered, the tide turned, now victory is at hand.

Precious Metals

In the late 1990’s I, and a few like minded souls, pushed for gold as honest money and a method for preservation of property and liberty. Most provided blank stares, a few scoffed (especially during the most-recent housing ‘boom’).  Now the  people, in numbers not seen in generations, are turning to precious metals.

A Prepared Populace

Few years ago I, and a very small band of fellows, began pushing personal and community preparation (gold, guns, grub and WATER). Most laughed. Now the trend is known as the Prepper’s, having acolytes in every community.  In some stores WalMart has a preparation section. Folks are planting gardens, stocking away ammo, and otherwise PROVIDING for a COMMON DEFENSE against Domestic Enemies.

An Honest Electorate

I’ve been hounding the current Governor of Nv for 23 years now.  Few listened in the 80’s and believed what they needed. Now the fool is pilloried on all fronts. The populace learned the hard way, but they indeed are learning. Walked door to door for the Libertarians beginning in 1988.  Fact of the matter is R. Paul WON the Nv Caucus in 2008.

Citizenry are now nearing the point of putting his son in Congress, and near-honest men as Schiff.

Every tide has undercurrents and back eddies.

If you THINK you don’t make a difference, you probably don’t…

1.3.10    Of course, we’ve lost a few…

As of two weeks ago, there are no more slot machines in Northern Nevada that pay in silver dollars.  They pulled the last just before Christmas, had been losing $ with every payout.  As recently as 2002 there was a slot machine that paid bonus in gold coin (American Eagles)

1.3.10    A Sustainable Economy

Is a local economy.

New Balance still makes shoes in the US (some models)


1.2.10    The Spanish Established Potosi, Bolivia, to Mine Surrounding Silver Ores


By the time Potosi was only just 30 years old, it was the third largest city in the world, after London and Paris, supposedly.



1.2.10    Why Chertoff pushes the scanner




(Hint: He will make a buck off your half-naked grandmother cowering apostate in front of the security goons)




Just imagine the garbage that 'big sis' will push once they shove aside her fat incompetent ass...


1.1.10    What Does Martin Armstrong Believe the year will hold?


Interesting as his March 2009 date basically served as the bottom pivot in the US equity markets. Reverse polarity?

1.10.10    Brimelow's report on worst 11 newsletter performances of 2009:




12.29.09    New Study: Percentage of Carbon Dioxide in the atmosphere has not increased in 160 years




12.29.09    Interesting Blog


12.29.09    According to Plan: The Council of Rome


Things have mostly gone according to plan, if not exactly on schedule in 2009, as the Powers that be have designed:

-      Limits on population

-      A created ‘environmental problem’ which requires global governance

-      Enslavement of your children via unpayable US debt

-      A contrived reduction in the standard of living for western countries


12.29.09    Why the Cover up over the Christmas Day attempted bombing of flight 253?



So many distractions and evasions according to standard spin doctors and misinformation outlets - basically more cover for another clear false flag operation.

1. Why the discussion on CIA or TSA and NOT a discussion on the firm that supplies the security check at AMSTERDAM?

ICTS is that security firm historically responsible for security at Schiphol Airport . You know, the one that put the bomber son of a banker on the plane without a proper Visa:


So who is ICTS?

This article from 2003...
" AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD.  ICTS International NV has formed a partnership agreement with ICTS Europe Holdings BV, an unaffiliated company, to provide security services at Amsterdam's Schiphol Airport. The partnership - named ICTS Netherlands Airport Services - has been awarded two contracts. From:


2. BTW, ICTS was also responsible for security on the WTC flight.  What a coincidence!


(Gee, you ever wonder why NOT ONE of the ‘mainstream’ news media printed this little fact? Nah, me neither…)

Funny this - Norman Mineta, former Secretary of Transportaion (and one of the lucky ones in the bunker with 'shooter' Cheney on 911).


3.Napolitano’s first reaction is to confirm that the ‘system worked’.  Only later has she backtracked and covered up her original utterance.

Obviously a false sense of terror, repeatable false flag operations, and a cramp down on the citizen’s right to peacefully assemble and travel is exactly what the ‘system’ is designed to do.  Why?

Because it allows her to… 

4. Put in place (previously developed plans just waiting for a ‘trigger event’) to:

- Emplace full body scans

- Prevent citizens from moving about an air cabin to use the bathroom

- Expand the ‘no fly’ database, including more of your personal information (at your time and expense) to ‘prevent this from ever happening again’;

- Enhanced inspections at security checkpoints

- Increased pat-downs

- Increased bag searches

- More explosive detection canine teams

- More air marshals

- More behavioral detection officers; and of course

- Allow full body and cavity search on their personal whim

Which goes without saying:

- Allow Obama to state he will review the system so that “it can be strengthened”

Question: None of the existing measures worked. So why expand a fatally flawed system

Answer: The system is not designed to protect you, rather there are other drivers.

Desire to test that thesis?

Simply research the number of methods and materials that can cause an explosion aboard an airline that are not on a trained dog sniffers list and cannot be identified via a scanner.

There are many…

12.29.09    Bought GDX 

12.28.09    On the so-called 'financial transaction tax'


The increasingly common economically illiterate political foot soldiers increase the volume on their drone drumming for a financial transaction tax.




Of course, the seeds for such a tax transaction are already law.  They were sewn in the TARP bill. Why do you suppose so many banks are now falling over themselves to pay back the TARP funds?  Namely, they want out of the system, having just now read the fine print.  The idiots clamoring for the tax do no possess enough financial acumen to even comprehend what is already law!




A bill has already been introduced in the house to expand the tax sphere:




Basically, the rubes are doing everything they can to destroy the country.  First they destroyed the family farm in the 1970s and 1980's via environmental and tax regulations, pushing ownership of American food production into a handful of bioengineering and chemical manufacturing firms.  Then the forced the industrial economy out of the states with further draconian environmental regulations and 'free trade'. The only think left is the service industry, and government. Guess which will be the last one standing?


12.22.09    Peak Oil a problem? nah.

The larger problem facing geologists is that they were preceded by astronomers,

whose convention considers oxygen, silica, and almost everything else, a metal.

12.22.09    The Census Long Form.

 An acquaintance just received their long form in the mail and noted that failure to reply, or giving wrong answers, was a $5,000 fine.

 Why would you let the bureaucracy outsmart you? That is, why on earth would you feel bound to provide self-reported numbers that are 100% accurate?  One third of your responses could be near true, another third half-truths and the other third completely made up about your neighbor.

 Census does very little real data verification.  Very few qualified people work at Commerce Department.

 Here’s how it was explained to me when I worked for Commerce on the 2000 census.

 The manager told the surveyors that their function was to simply ask the questions and write down what the respondent said, without question or editorial. In other words, if someone responded “white”, even if they looked like Richard Pryor, than you checked the white box.

 Of course that manager, and everyone else I have met that worked for Commerce, regularly lied to the pint I never felt any of them could discern the truth, much less tried.

 My experience was that most the ‘data’ was made up in advance to support various political aims, and the actual census was just a formality.

 Now it worse than ever, given that bureaucracies tend toward corruption over time.

 They ALREADY have all that information on you and are using YOUR labor to either

A)    Qa/Qc their database, or

B)    Incriminate yourself.

 Let me ask you something.

 You ever pull your CLUE or APLUS score?

 Ever check to see what Intelius or ChoicPoint has on you?

And that’s just for starters...

How many people have you ever read about, much less heard of, much less actually known - that were successfully prosecuted by the Dept of Commerce for fibbing on a cenus form?

Remember, laws (codified regs and EOs) aren't made to be followed.

They are made to be selectively enforced, set an example and scare the rest.

Don't get scared.

Other wise - YES. The Dept of Commerce needs to be re-arranged, improved (dismantled).

Ask Ron Brown how it worked for him!

12.22.09    You Hear it and Think it True

Doesn’t mean it will always be true.

“You can only see two things from space” and “There were more trees 100 years ago” were both true statements at one time, the early 1980s, but are no longer true today.

Things change.

For instance, we have more satellites in space with better technology (cameras, imagery software).  More things are now visible. More has been built, also.

Trees are a little more complicated.  

In 1980 the statement was more likely true b.c. there was a HIGHER INTENSITY of USE in 1880 than in 1910.  The slopes of the Cascades and Sierra were practically deforested in many counties to support mining, railroading, city building and other industrial pursuits of the Manifest Destiny being fulfilled during the period of reconstruction and US industrialization between 1865 and 1895.

The modern practices of reforestation were not in place in 1880, but were in place this century.

So, there probably were more trees in 1910 than in 1880, the level of intensity dropped incredibly during those years, and has flatlined since. Which actually means there probably are NOTE  more trees now than 100 years, ago.

Furthermore, number of trees is not a great measure/metric/indicator.  You can’t compare different ordered forests with each other.  First generation growth is not the same as mature old growth.  And fact is, neither of those likely support a higher diversity than a middle aged forest.  More on Intensity of Use here:


12.22.09    We all have something to lose

  • A security camera should have two systems. One is a rather cheap – visible - camera. The perps will disable that one. A better – hidden - system captures their activity through a live video feed.

  • Be careful what you post on line.  Don’t keep a high profile on the internet, linking a picture of yourself, your name, to your belongings.  Make sure your WHOIS links to a POBox, not your street address.  Make sure there is very little Personally Identifiable Information out there that you aren’t aware of.  Try to throw off Intelius, ChoicePoint et. al. by putting some INCORRECT information out there on the web.  At least create a few little false leads…

  • Sandbag, sandbag, sandbag. Make a criminal WORK for that score. Slow them down, most professionals only want to be inside your house for under five minutes, if that.  Don’t put your stuff in one place, put it in 30 places.  And, the non-professionals can be fooled with substitute/look-like fakes and lesser merchandise.

  • There is a CLUE score for both you and your house.  Try to find your current score and consult with someone in the insurance biz, if possible, to determine what size claim is possible w/o messing up the CLUE score to badly. Read more here: http://www.privacyrights.org/fs/fs26-CLUE.htm

  • You might sit down with your insurance agent and discuss other types of insurance that fit your situation, some may not hit your scores.

  • Consider trying to appear that you don’t have much money.

    And most importantly, your stuff is replaceable, your life is not.  IF it comes down to it, let them have a few cents.


    12.21.09    In California, 90% of the abandoned mines are gold mines.

    90% of the current mines are aggregate.

    Shows some type of debasement, no?

    (Guess 90% of mines next century will be for lint, or garbage, or gold.)


    Gold reserves play out quickly, aggregate does not.


    That is why 90% of abandoned mines are Au and NOT aggregate.


    Hard to go out of business selling rock. Not too many abandoned gravel mines on the side of the road.

    Home depot sells sand for 3$ a bag - for the junk stuff.

    Around here 3/8 pea gravel retailing for almost $50 a yard.

    The oldest operating business in town is the gravel mine.

    In San Francisco, ocean sand will set you back over $100/yd (if you can find it).

    gold is rare, rock aint...


    12.21.09    In Ca/Nv most the shallow mines have collapsed


    About 25% of the deeper and timbered mines have been closed off (bat gates) by the BLM.

    Perhaps another third still in private hands.

    The BLM had been welding angle iron/bars over the mine entrances. Then they switched to polyurethane. Now they've switched back to metal gates.

    Mostly, so they say.

    Fact is, the location of many of these mines are lost to records and primarily known by the locals.

    At the last gun show, I bought some pictures of a gold mine circa 1907-1911.

    26 pictures in all. Really neat stuff, very rare.

    Most likely the best photographic collection of that mine in existence.

    Very few folks even knew the mine existed.

    The only other photographs I could find that sold on the internet were misidentified (wrong county). And that was by one of the eminent mining historians in the US.

    At one point was the largest employer in Shasta County.

    Nothing left, can barely tell it was there.

    The smelter is now under a reservoir, the deep part.

    Mammoth Mine, Shasta County, California.


    12.21.09    Amazing amount of crops failing in California's central valley

    including many mature orchards.

    The state shut off water to agriculture earlier in the year to 'save' a non-endemic species in the sacramento river. (actually, they are forcing a point so the peeps support the peripheral canal).

    Die-off in orchards just now becoming readily apparent


    12.20.09    Poor legislation (has there been any other kind in the last 50 years?)

    Provides a very poor substitute for education and understanding.


    In fact, invariably more confusion, fraud, and inaction results.


    Given recent history, 'Bank Finance Reform' will probably come down to this:


    You are required to keep your money in a bank. If not, you are breaking the law and must pay fines until you comply.


    12.18.09    Internationalists Embarrass themselves at Copenhagen Farce


    Their science is a sham, they can't agree how much to tax each other, the politicians vilify them selves and their shrill global warming alarm is drowned out by cold and snow.




    Give 'em only enough rope to hang themselves and their horse with the same loop!


    Chavez had the best line, "Nobel Prize of War".  Of course, he should have said "Nobelbamba Prize of War, part II"


    It was sold in Copenhagen that the euro queens, third world wanna-be despots, and globalsocialists had to keep their hands in their own pockets!


    Took a year but I am starting to 'warm up' *(get it?) to Obama. He has completely destroyed the repub-democratic agenda, brought unprecedented interparty and intra party bickering and gridlock to D.C., made himself a lame duck in his first year, not signed any real legislation, pushed back the globalist plans indefinitely and will help increase the largesse impasse after the 2010 elections.

    NO other candidate could have done better, way to go!

    12.17.09    San Francisco - the City that Can't - Worst Run Large City in the US




    And, regrettably, from personal experience I can tell you things are even worse than the debacle outlined in the article...

    12.17.09    Bought IAG @ $16.94


    12.16.09    COFFEE, one Lump or Two?


    One of those rare groups actually fighting for YOUR privacy, rather than for a leviathan world government that owns you and every thing you produce:




    12.13.09    What Carbon Trading is Really Designed to Do


    Remove jobs from the west.  Here is how the mechanism works:


    "The real gain to Corus(steel) from stopping production at Redcar(UK), however, is the saving it will make on its carbon allowances, allocated by the EU under its Emissions Trading Scheme (ETS). By ceasing to emit a potential six million tonnes of CO2 a year, Corus will benefit from carbon allowances which could soon, according to European Commission projections, be worth up to £600 million over the three years before current allocations expire.

    But this is only half the story. In India, Corus's owner, Tata, plans to increase steel production from 53 million tonnes to 124 million over the same period. By replacing inefficient old plants with new ones which emit only "European levels" of CO2, Tata could claim a further £600 million under the UN's Clean Development Mechanism, which is operated by the UN Framework Convention on Climate Change – the organisers of the Copenhagen conference. Under this scheme, organisations in developed countries such as Britain – ranging from electricity supply companies to the NHS – can buy the right to exceed their CO2 allocations from those in developing countries, such as India. The huge but hidden cost of these "carbon permits" will be passed on to all of us, notably through our electricity bills.

    Thus, at the end of the day, Redcar will lose its biggest employer and one of the largest manufacturing plants left in Britain. Tata, having gained up to £1.2 billion from "carbon credits", will get its new steel plants – while the net amount of CO2 emitted worldwide will not have been reduced a jot.

    And the connection with Dr Pachauri? Directly there is no connection at all. But it just happens that Dr Pachauri's other main job, apart from being chairman of the IPCC, is as director-general of the Tata Energy Research Institute, funded by Tata, which he has run since 1981."


    12.13.09    More damage from Climategate




    It's sometimes OK to underestimate your audience's intelligence, such as when you are writing for government bureaus or the AP, Gannet, etc.


    But when you are writing for a scientific audience, the words better match the graphs, and the graphs better match the data.


    Otherwise you are only as ridiculous as you can be of your own accord.


    Tony Blair, war criminal turned wanna-be president of the world, acknoleges climate science flawed, but the world needs a carbon tax/world government anyway.




    Rather like, no - exactly like, when he went to war against the Iraqi people based on lies. 


    12.12.09    From the US Congressional Record, Oct 11, 1940


    S844 : An act  to simplify the accounts of the Treasurer of the Unites Sates, and for other purposes.


    Makes you wonder what those 'other purposes' were.


    The passed that damn same law every single congress to simplify the Treasury Accounts.


    Why, just look how simple it all is today!


    Way to go congress, good work...


    12.12.09    To graduate (with honors) from Lisk-Wilmerding High School in 1918,

    One had to pass the following subjects:




    History: History, Medieval, Modern and US (Govt)

    Algebra: Theory and Elementary

    Plane Geometry


    General Science

    Electrical Theory

    Mechanical Theory



    Drawing and Instruments


    Forge Work


    Machine Shop

    Sheet Metal

    Auto Shop

    Electrical Shop


    But hey, today the kiddies know about Chad with Two Dads; Global Warming; Scales and Bling; Sexting and Computers (with lab); Consumerism; and English.


    Long live progress!


    12.12.09    Back in the 1920's People were very Familiar with Metal Prices


    The  Nevada State Journal posted metal prices on Page One, Header.  On April 6, 1926 A bar of Silver was 65 5/8 cents; Copper (dull) was 1c on the Electolytic spot and futures; Lead was spot $8.20 ask $8.30.


    Can you guess what the unit weights for those prices were?


    They weren't posted in the paper, because people knew.


    They weren't posted in the paper, because people knew - automatically.

    In the 1920's Reno public high schools taught common law.

    People knew the law and metal and money, automatically.

    It's kind of like today, people know who Tiger's major sponsors are. Same thing, really.


    12.12.09    Dear Stockholder October 12, 1931

    It has been some time since you have received a report of progress.  The last two years have bee trying ones.


    Yep, the president of the company called the great depression "trying".


    Today, we call these 'Difficult economic times".


    Putin. last week, called the situation a 'crisis' and 'perfect storm'


    What do you suppose the main difference is, between 'difficult' and 'trying'?


    Well, trying is an action verb; you are DOING something, slowly, methodically, with varying results.


    'Difficult' is a situation. Something HAPPENED to YOU. Not your fault, no - of course not. How were you to know, afterall?


    What, they didn't teach you that in Chad with Two Dads; Global Warming; Scales and Bling; Sexting and Computers (with lab); Consumerism; and English.


    Poor baby, you...you... victim.


    12.12.09    ClimateGate - you can't whitewash the facts:


    Don't think for a minute this is about 'saving the planet' or any of that.  It all comes down to control, complete control, over you by un-elected 'authorities':



    12.11.09    McAleer, registered with a Press Pass in Copenhagen

    asks Professor Schneider, on the panel taking questions, a climategate question.

    Schneider starts into the talking points package of lies, immediately stumbling badly, before security shuts down the panel.




    Is this the freedom of press you support?

    Is this what Al Gore means when he states "The debate is over".




    12.11.09    Why buying green makes you a jerk

    "Holier than thou" syndrome documented by researchers.




    Kinda makes sense, many of the folks I know who drive a Prius are first class A-holes.


    12.10.09    What to buy: Food or Gold


    One of my faves is how he accepts the Nobel Peace Prize for escalating a war that can't be won in Afghanistan.  Afghan war will expand, by design to Pakistan. American involvement in this war has already lasted longer than WWI and WWII combined! And for what?


    The reality is he is committing thousands more to serve in vain, because he knows there is no way they will be able to find jobs in their hometown. Bait and switch...


    Consider yourself lucky if you have the luxurious problem of not knowing what to buy with an extra $2,200 - two ounces of gold or a years supply of food.


    $2,200USD will purchase over 35 boxes of freeze dried food.  That is about about one year food (a little less) for a family of four (little kids, not teenagers).

    Not everyone has that kind of storage space, or security. Only those with a home, securely.

    On the other hand, twenty 1/10 oz gold pieces offers portability, no?

    True - when it gets really tough you can't eat the coins.

    Most freeze dried (not dehydrated) today is very high quality and will last 10-15, easy. Some speculate up to 25 years for grains.

    The crap my parent bought at insistence of Howard Ruff in 1979-1980 wasn't very tasty, it was dehydrated. But the dehydrated foods made great strides in the 1980s and 1990s. I just recently had some dehydrated food that I know was at least 12 years old. Salty but edible.

    The freeze dried is much better quality and will last longer than dehydrated. Honeyville is high quality, we have not had a problem with what we have sampled so far.


    Honeyville Grain has a 10% off deal starting today..

    Also, I just bought a Costco lot. Have only tried the dried onions so far, but very tasty.

    Quality food is incredibly cheap priced in gold.  Gold holds its purchasing power over very long term time periods, and actually increases purchasing power during times of debt repudiation, as which we are now witnessing.

    BTW, there is something more important that food: Water.

    Not so easy to store a years worth either...


    12.8.09    Someone asked - "Did anyone actually ever listen to your rants on economics?"

    Well, most folks faded me at first (1999-2003), then derided me in the housing stratosphere of 2005.  But over the last 5 years, perhaps half have come to me asking financial advice, if only as an aside.

     That is just among my close and somewhat-close circle of friends.  Of course I have evangelized against big government and a debt-financed totalitarian state to many thousands of folks, to varying degrees, since 1988.  Impossible to track my success there. 

     One point - a single conversation I had with an old woman in Ohio in 1987 generally changed my worldview, although we knew each other and spoke for no more than 30 minutes.  My supposition is that she never thought of me again, and now has passed on. But I think of her every week of my life. You never know what will take root in someone psyche, soul or heart. 

    As to your success rate, that largely depends on your attitude (and accuracy of previous speculations!)   


    12.6.09    More Attempts to strangle the last successful industry in Nevada (mining tax)




    12.06.09    The fool who developed TARP builds a uni-bomber cabin, loses 20 pounds




    He should be working off those pounds in a federal prison, for treason.


    Instead he works on his ax handling on San Juan Ridge, defaming the honest meth-cookers, dope growers, born-again hindus and failed 60's artists living around the area.


    12.06.09    ClimateGate is an abortion on so many levels


    Understanding Climategate’s Hidden Decline

    By Marc Sheppard The American Thinker
    Close followers of the Climategate controversy know that much of the mêlée surrounds an email in which Climate Research Unit (CRU) chief Phil Jones wrote about using “Mike’s Nature Trick” (MNT) to “hide the decline.” And yet, 17 days and thousands of almost exclusively on-line op-eds into this scandal, it still seems very few understand exactly which “decline” was being hidden, what “trick” was used to do so, and why Jones’s words have become the slogan for the greatest scientific fraud in history..............

    ......First and foremost — contrary to what you’ve likely read elsewhere in the blogosphere or heard from the few policymakers and pundits actually addressing the issue, it was not the temperature decline the planet has been experiencing since 1998 that Jones and friends conspired to hide. Certainly, the simple fact that the email was sent in November of 1999 should have allayed any such confusion.

    In fact, the decline Jones so urgently sought to hide was not one of measured temperatures at all, but rather figures infinitely more important to climate alarmists – those determined by proxy reconstructions. As this scandal has attracted new readers to the subject, I ask climate savvy readers to indulge me while I briefly explain climate proxies, as they are an essential ingredient of this contemptible conspiracy..............


    12.06.09    Only 30 years ago the government pushed the story about the New Ice Age boogeyman




    12.05.09    Classy Band




    12.5.09    End of Global Warming


    12.5.09    Barrick actually received a very favorable ruling


    Had they been ruled in violation of native rights, that is a potential deal breaker. But, an administrative violation is always just a delay, easily papered over with money and politicking. Just a matter of payola changing hands and enough time to pass such that most forget about the issue as the respite brings up myriad other distractions...


    12.3.09    MineFinders



    Trades as ticker MFN on the Amex; also trades on the Toronto Exchange.


    Listened to an interview with President and CEO, Mark Bailey last Sunday.



    Fifteen year mine life. Hope to increase production with additional mill in a couple years to move up to 24k tons per day.  Two drills currently in action and they are exploring options for underground works.


    They have focused on Americas with property in Az, Nv, and Mexico.  Looking at South American for possible.


    Labor costs are up due to heavy interest and activity in the mining sector; good people are demanding and justifying higher wages. (One of the very few sectors with wage push).


    Dolores Mine in Mexico is currently in production.


    Per the Open Pit Mine Plan, Proven and Probable Reserves

     - Gold Resources 2.4 Million Gold

     - Silver Resources 127 Million oz Silver


    Currently in Proven and Probable study phase.

    Of course, being acquired by another larger firm is always a possibility.



    Bailey believes fundamentals are bullish for silver due to historic gold/silver ratio currently out of kilter and b.c. the demand for silver as a water treatment agent will increase.


    Market Cap: 65 million shares currently out, about 650

    The currently trade about 100$/ proven and probable oz . Industry average



    Trading at about 1.0 Net Asset Value (NAV) whereas sector trading mostly above 1.3 x NAV

    They have 90 million in working capital; up from previous quarter/year.

    He never discussed burn rate and I haven't had time to find out this figure yet, but it is always an important one.

    They will pay off 60M line of credit this year and pay off convertible debt in 2011 (some of it financed up to 24%).  Credit is reportedly still available to the sector for both operations and constructions.


    Analysts Coverage:

    About twelve bank and broker analysts currently include Bank of Montreal, CIBC, etc.


    My Position: currently out but looking in


    Could their valuation increase soon now that Minefinders is in production?  I think so, and again am looking for an entry point - most likely lower..

    I had last bought in February around 5$ and sold too early, at a little under $8, when I thought the 50Day EMA would prove stronger resistance than it actually had. At this point I imagine the price will back down to where the 50 and 200 Day EMA merge around $9.35 later in the month, setting up the next buy.


    12.3.09    The Obama Job Summit Fails to Get Hired


    As Yet Another Manufacturer Opts Out of U.S.A.

    "On November 11, David N. Farr, Chairman, CEO and President of Emerson Electric Co., announced at the Baird 2009 Industrial Conference in Chicago that President Obama has succeeded in chasing his multi-billion dollar industry right out of the U.S.A. Why? Onerous regulation, high taxes, and the over $1 trillion Obama debt should be reason enough for any business to consider shutting down U.S. facilities and seeking greener pastures overseas says Farr.

    The federal government is “doing everything in [its] manpower [and] capability to destroy U.S. manufacturing,” says David Farr, chairman and CEO of Emerson Electric Co., in a presentation at the Baird 2009 Industrial Conference in Chicago Ill., on Nov. 11. In comments reported by Bloomberg, Farr added that companies will continue adding jobs in China and India because they are “places where people want the products and where the governments welcome you to actually do something. I am not going to hire anybody in the United States. I’m moving. They are doing everything possible to destroy jobs.”



    12.2.09    Went Long UNG

    Just below 8.70.  Looks good for a swing bet.


    12.2.09    juniors certainly outperforming


    majors and mid producers.

    And THAT is a sign of either a top in the metal has occurred or will soon.


    12.2.09    Sold GG on Monday (the 30th)

    This rise in mining shares, and Goldcorps, is against declining volume today and what I consider a disappointing dividend.

    Cripes. The dividend is up less than 40% in 7 years whilst Price of Gold QUADRUPLED!

    miner leverage my a$$.

    Physical and NUMISMATIC over- performed in same time period.



    11.30.09    Coin Photography for Internet Sales

    All coins are very unique, you may have to try something new for each coin.

    As already stated, use the macro lens. That input stays the same so the thing that changes is the camera distance from the coin (most in focus) and camera angle and the lighting. For lighting, strongly suggest you purchase or build a d Desktop Photo Studio with a copy stand.

    The studio is essentially a box with three white sides and a white top. The side facing you is empty/open. The copy stand is basically a flexible tripod; the camera attaches to the copy stand. You won’t be able to hold a camera still enough to take a very good picture of a coin. You can use two other copy stands or tripods to hold two lights. Using just one light will cause a shadow. We have had most luck using non-natural lights, specifically the ‘daylight balance’ florescent bulbs.

    Copper is best photographed with a black background. Use plain, single color background (white or black) with no designs/patterns for silver coins. Gold coins work better with a plain white background.

    We host photos through Photobucket. Ebay pic hosting has had problems. They've gotten better, but cost money. Photobucket is free (a few ads) and works fine.

    Frankly, if you aren't going to do this on a regular basis you might consider consigning with someone with established procedure, feedback and following - you could get a better price that way.

    11.29.09    Remember the Romer-Bernstein chart?

    Obama used that graphic when he 'gave his word' that unemployment rate would not exceed 8 percent so long as we spent $900Billion of our grandchildren's money on graft, fraud and abuse.  The pols and their talking heads call this 'The Stimulus Bill."


    11.29.09    Why Climate Gate is the crime of our generation:



    11.25.09    More Fraud amongst the 'Global Warming' Alarmists:

    Adjusting and tweaking data and applying more fudge factors.


    “NIWA’s official graph (done originally by Dr Jim Salinger, who features also in the emails leaked from the Climatic Research Unit of the University of East Anglia) shows considerable warming, which they give as 0.92°C per century, saying this is consistent with global warming over the 20th century. But the actual temperature readings taken from the thermometers show an almost flat trend for 150 years.

    This one is even better. As the alarmists see public tide turn against their fear campaign, they reach for ever more desperate images and stories - most of them fake.  One Australian outfit takes on the farce of the poor stranded polar bears:


    The facts, using uncorrupted data, show that New Zealand's temperature has remained steady for the past century.


    11.22.09    Global warming scam facts are getting traction



    "If they ever hear there is a Freedom of Information Act now in the UK, I think I'll delete the file rather than send to anyone"


    Illegal and inexcusable.  And THIS is what the global carbon tax on you and your children is based on ?!?

    Some other takes on the disaster:




    11.21.09    Worth a look at this the paper titled "Gibson's Paradox and the Gold Standard". 


    The author details an historic inverse relationship between gold and real interest rates.

    The only way centralized federal banks to wholly control interest rates is when they demonize gold in the minds of the middle class – mostly buy artificially supporting the price long enough to ‘prove’ a claim that gold returns no value to their holders. 

     Read more at GATA's web site:


    CoinMine supports the good work of GATA.


    11.20.09    Another Vaccine Poison Pusher - Sid the Science Kid

    entire episode the other day all about why vaccines are good and why children should make sure they get one (or more)!


    11.20.09    British Petroleum loses one.


    They will end up paying for this (contamination in Mason Valley, Nv, drinking water wells):




    11.20.09    A New Alliance

    This has taken decades, but for the first time ever

    Many of the environmental organizations have joined together with the true land managers, ranchers and farmers, against the tyranny of the state regulators.


    A great example is Defenders of Wildlife.  Their anti-agriculture stance has turned around 180 degrees.  Just one example.


    This is a recent development, you have not read about it anywhere else.


    11.20.09    America IS Alive

    There are wonderful movement afoot all over the place.

    This group started replacing asphalt with trees on Los Angeles area playgrounds. They are gaining traction. The president is an electrifying speaker.



    11.19.09    America

    Died young but left a beautiful corpse.


    11.18.09    Energy From Sugar Beets

    First Time Every  that I’ve seen a US firm, at least in print, expressing interest in producing energy from sugar beets. As you may already know, Brazil has been doing such for years.

     Of course, given the politics here, the experiment would probably go along the lines of the recent ethanol fiasco.


    11.16.09       Today's 'Environmental Engineers'

    Just Friday night the city of San Francisco held a stormwater charette where they invited about 75 stormwater experts to advise city planning.  (Basically a good way of getting free consulting time).  One of the individuals at my table was not even familiar with the term hydraulic head!

     That is the level of excellence many in the ‘green’ movement provide.  Style over substance usually. Too many lawyers and ‘environmental policy experts’ with no real understanding of the carbon, nitrogen and sulfur cycles, and no hopes of meaningful employment, create ‘ideas’ and ‘solutions’ with no regards for basic environmental science, hydraulics, plumbing or feasible physics.

    The political carnies gobble it up!

    And ‘carbon credits’ come out the other side of the sausage-making machine.

    11.14.09    Instead of Saluting, like the other Men

    The POTUS checks to see if he has any balls left (he doesn't)

    And you still pretend to 'never knew' that O won't respect the flag during the national anthem, much less salute a fallen soldier on Veteran's Day?!

    gee, how come you didn't see this picture on CNN/ABC/NYT/GANNET/NEWSCORP/MSNBC.

    HMMMmmm, maybe it's because they all receive the same news feed?

    nah, couldn't be...

    11.12.09    Pretty Funny Shit



    11.10.09    Going into Veterans Day - Not easy for Those at Fort Hood

    What was massacred, mostly, was the truth - the first casualty of any conflict.  How does super-shrink take out 40+ military men and women without any of them taking him down?  Either they are a bunch of pussies, or the story is a crock.  Remember, the first stories that come out are usually the least cooked/booked and most accurate. Namely, the first stories stated there were more than one shooter. That is likely.  Otherwise, the shrink had three handguns, each with a banana clip, and not one other soldier was armed.



    Who do you think is lying, Sgt. Major Jamie Posten or the military/press?


    11.6.09    Coin Show at the Old San Francisco Mint Today and Tomorrow

    November 6 and 7 (today and tomorrow)

    On 5th Street Between Mission and Market Streets

    San Francisco, Ca

    Includes free tours of the Old mint.  Drawings and door prizes.

    The Bay Bridge is open with no restrictions.

    Look here for more information:


    See you there.


    11.3.09    Geothermal Drilling Team hits Magma in Boring

    At a depth of 6,900 feet a geologic drilling team exploring geothermal resources in Iceland hit molten rock. Only the third known time this has happened on a geothermal investigation. The team had hoped to drill down to 11,5000 feet. (Source: UCDavis Magazine, Fall 2009)


    11.3.09    Five Wave Gold Count (from Nov. 2008)



    11.3.09    Las Vegas on Hard Times

    But even worse than the hard times, are folks inability to grasp the how and the why.  For example, here is an awful article on Vegas woes by Der Spiegel:




    Agree that article on vegas was terrible?


    More superficial than the city itself.

    Gee - Der Spiegel goes ALL THE WAY back to 1980 for context.

    Guess thy forgot (read: never learned) about the boom/bust cycle that has defined Nv since 1864.

    Going back further one can see the valley was farmed and booming in the 1910-1920's (abnormally wet), only to go bust at the end of the decade when the mojave desert dried out again. BUST. Then the graft flowed again with the WPA/CCC building Hoover Dam.

    Going back a little further, through the archeology data, the Fremont Indians farmed S.E. Nv for a few thousand years, always off and on. Eventually they gave up a couple thousand years ago.

    Haven't read Der Spiegel in a while. Are their articles usually now this poorly written?

    Sure, the accompanying der spiegel charts only go back three years...

    but those were THREE YEARS IN A ROW!

    like, with no breaks in between.

    wow, what insight - what research -what a contribution to society.

    more brilliance from spiegel


    "snowmaking machine helps ski resort battle global warming"

    what absolute genius!

    I had no idea Bundesbank had access to this type of penetrating analysis!

    no wonder the duetchmark is at all time new highs!

    11.3.09    Some Banks won't Let You Turn in Large Volumes of Coins


    I've heard similar stories about banks instituting 'nickel and dime' policies intended to increase their operating margin.

    Those stories caused me to short the bank shares (only the publicly traded companies, of course)

    The strategy has worked rather well.

    The banks can scheme up 'profits' by taking toxic assets off their books.

    However, the traders can still see reduced operating losses (which is why the banks put in new methods for sqeezing a few more $ from the customer) and the smart money shows the way before the big money (institutions) get involved.

    I call BAC two days before I want to get a brick/box of coins.

    I spend the coins at the toll booth. The toll booth people don't like that! So they give me small bills and change in return, never realizing that is what I am offer - I use the toll booths to break 50$ bills if I don't pay in change.


    11.3.09    Collapse of CIT, the most Devastating US Bank Closure in Decades


    And nary a peep from the mainstream press. This collapse will ripple through the US economy, colluding with greater amplitude at credit nodes, and creating bigger waves crashing over the community economic landscape.


    Small businesses, once the lifeblood of our national financial structure, have been intentionally starved for credit.  The predatory Federal Reserve strangles the small business man and crowds out honest banking competition while seeking supreme monopoly.  They are one step closer today.  Now they will vacuum up small corporate assets, while purging debts onto the citizenry.


    The bank failures have turned serious.


    Bank of America is quite possibly the next big one, in 2010.


    (coincidentally, gold makes all time new highs against USdollar)


    11.2.09    India Buys 200 Tons of Gold From IMF

    Smart India...




    Now you know what the large banks of the world are doing with THEIR money, what are you doing with your?

    10.31.09          Turns out the Nv Republican Party ‘Found’ the ‘Lost’ Ron Paul Ballots

    And actually counted them this time, rather than lock them up in a safe.

     Also turns out that Nv ‘should’ have sent three delegates in for the Honorable Doctor Ron Paul.

     Instead, the delegates went in to support yet another fraud.


     HO Hum.  Top two Nevada Republicans have been mired in ethics and fraud probes.  Gibbons and Ensign certainly represent, as impotently as possible, the fraud that got them there.

    The voters get what they deserve (granted, many of the voters are imported for other states for this direct and expressed purpose).


    9.3.08    Nevada republican party

    Essentially in a state of collapse. the ron paul organization is better run in that state, by a mile. believe it or don't.

     1.19.08    Can't believe Ron Paul polled 14% in Nv.

    When I waived his flag in '88 (I actually canvassed northern Nv. door to door) we could only convince in 2.5% of the electorate.  Not sure what it means.  Sure, the candidates are 500% worse - believe it or not - but either folks are waking up or the election process has devolved into such a parody that now money and hacking the results are on even par footing.


    We stood a chance had 15% of the folks believed in the cause 20 years ago.


    But at this point in the game...



    10.28.09    Looks like a Good Time to Short Copper Right Here


    10.28.09    In addition to the Mining Indices, and Housing Builders,

    The Banking Sector is getting crushed.


    LYG, Lloyds Banking Group, might be worth a little of your due diligence time.


    10.28.09    WIP World-Inflation Protected Security ETF

    Never see much discussion on this play, maybe worth a peek.



    Inflation vs Deflation on a worldwide scale, why not.

    How complicated could that conversation anyway?


    10.25.09    Resolute Mining reported a good quarter.

    Au production up 10% and costs down.

    Of course, they announced a need for another $35M in financing so they better put up some hopeful numbers.


    10.25.09    Alaska Miners Convention and Show Nov 2-8

    Look at the Lyman's nugget on their nugget page. Jeez, I'd spend a few weeks in the bush and mud to pull out that bugger from my pan!


    10.25.09    Rocky Mountain Mineral Law Foundation


    Mine Closure and Reclamation Conference.  First week of November.




    10.25.09    Ontario Amends Mining Law


    "Potential prospectors must also now undergo "awareness training" before obtaining a prospecting license."


    That made me giggle.




    10.25.09    Northwest Mining Association announces November Conference

    At the Nugget in Sparks, Nv.

    As an added bonus, they are having a contest to vote for which miner has the goofiest looking logo:



    10.25.09    Metal Companies Expected to Lower Exploration Programs

    for first time in seven years:


    [Hint: that does NOT signal economic recovery].


    Doug Hornig of Casey’s International Speculator Pushes rare earth.

    "...more than 90% of the world’s (rare earth) supply coming from China".

    Now, China has just started their strategic supply. Nevertheless, if that figure is right (and I have my doubts) whole lot of somebodies are indebted to China.

    Heck, almost one quarter of all Idaho mining is just one rare earth metal: Moly B. Denum is her name.



    and Murkowski gets on rare earth bandwagon:



    too little, too late?


    When politicians notice the trend, the trend is at an end.


    However, the US - unlike most countries - actually has a strategic metal supply.  Look at Tantalum, for example:


    The US Tantalum supply is 3 years, although it isn't being replaced very fast:




    10.25.09    Chinese purchase another miner: Felix Resources




    10.25.09    Another tip for Mining Due Diligence

    Look at the old drilling programs and log books.


    Some of those well's which had un-economic ores may have not been dry at all.

    In fact, many of those wells may have had hot water under pressure.


    Those wells are being snapped up by Ormat, USGeothermal, NvGeothermal, et. al


    10.25.09    How to get the Hardrock Miners Handbook




    10.23.09    Why Commodity Stocks Could go Down


    basically, the other sectors have cut capacity and storage. This has not been the case with commodities and mining stores.  However, it could be if industrial demand does not begin to pick up:



    10.25.09    Geological Society of America met Last Week

    Topic on Living with dynamic landscapes (volcanism)




    I would be interested in seeing any notes from sessions on geothermal...


    34th Mineral Law conference is next week



    10.23.09    Itronics makes forward progress


    Clean Technology and all that!


    RENO, NV, Oct 22, 2009 (MARKETWIRE via COMTEX) -- Itronics Inc. (PINKSHEETS: ITRO) (FRANKFURT: ITG) (BERLIN: ITG) announced today that its wholly-owned subsidiary, Itronics Metallurgical, Inc., has been informed by its distributor that GOLD'n GRO 9-0-0 Iron Man Z has been registered for sale in California, the Company's largest market


    NGD strikes again (er, at least swings the bat)


    10.22.09    Mining Costs: Water and Fuel

    If clean water is going to get cheaper, than so is electricity/fuel


    and hence production costs for the miners shall decrease.

    seems unlikely from this chair...


    If the fuel and water inputs forecast a decline in price of such, then the junior producers should out-perform the market.


    Indeed they have over the last year. Compare GSS/KGC/IAG to GFI/NEM/ABX, for example.




    The smaller producers HAVE outperformed the larger ones over the past 52 weeks. And the large miners have benefitted further from cheaper labor.


    However, that was looking back over a year. The smaller producers appear ready to turn over, performance-wise, against their larger cap-brethern. Just in time for oil to break out, imagine that!


    And - just looking at that one chart

    (perhaps simplistic, perhaps broad-brushly accurate)

    Regression to the mean demands the minors and majors catch up to each other. 


    My supposition is that the minor producers fade a bit, as physical gold looks it may want to re-test 1,020.


    And generally the physical should remain stronger, as the Larger season of paper generally fades into winter of discontent.


    10.22.09    Didn't you hear the NPR (national radio) this week?

    Believe it was tues or wed. Topic: Toxic Waters

    All about why drinking water will increasingly need more regulation and become more costly.

    They typically run these pieces as the state water commissions meet to set rates (hint: usually up).


    10.19.08    Went to the Gun Show Again

    Code of the West, same promoter/circuit as usual.  Now I had heard, from here and else where, that the ammunition shortage has abated.  Wasn't my experience today. Granted, I showed up rather late, about 1pm on Sunday.  The only 9mm ammunition available was five boxes (50 rounds ea./20$box) and a few re-loaded boxes (10-12$ each).  Mostly the tables were completely empty - sold out of ammunition.


    Turns out the day before, Saturday, four mexican guys came round with two separate six-wheel carts, the type of flatbed cart/handtruck you find at Costco.  They loaded each up, completely.  That has to be at least 2,000 boxes.


    All of it was military/police caliber (38, 9mm, etc.)!


    I bought some postcards...


    10.17.09    Yes, Vaccinations Still Contain Mercury

    After you begin looking at CDC ‘information’ for a while, you will begin to see that CDC actually speaks out of all 5,6540 sides of its collective mouth.

    Here the CDC states that:

    1. Hg is present in Thimerosal, at approximately 49% as ethylmercury.

    2. Thimersol is present in ‘the majority’ of influenza vaccines

    3. Thimersol may be present in ANY vaccine at ‘trace amounts’.

    4. NOTE: CDC states Thimersol contains ethylmercury.  The PRODUCERS of such will typically report in THEIR SPECIFICATION SHEET, that Hg is actually present as sodium ethylmercuric thiosalicylate, a mercuric salt.  Ethylmercury is actually a metabolite. Further, you may be familiar that CDC uses the broad term ethylmercury (which includes a number of mercury metabolites), rather than actually provide the chemical compound.  Either they are lazy, uninformed or intentionally obfuscating the subject. Probably all three.

    Here it is, per the CDC:


     Note, the CDC will answer almost all questions with both ‘Yes’ and ‘No’, each qualified of course with run-on sentences and oddly placed dependent clauses and vague qualifiers. You simply need to find the right webpage/spokesperson.

     Further Note: Look into when the CDC dropped ‘reportable’ amounts of thimersol and Hg. Fascinating stuff.

     I humbly suggest you consider not linking YOUR credibility with credibility of the CDC b.c. I think you have a lot to offer the discussion.

     Further into Further, I would love to see some double blind peer reviewed studies on ethylmercury toxicity.

     Have you any?

    (and for the sake of simplicity, I won’t even bring up variety of/and variance within, speciation techniques).

    At any rate, here are some of the studies that are available:




    10.16.09    On Solar Technology (how many firms are making $ right now?)

    Many are still making hype.  Kinda like all those ethanol plants - how 2006.

    another mal-investment, way sunk costs, based on betting too much on the come for the wrong technology.

    another political energy play rather than a sound technical/financial play.

    my call is for active Photovoltaic hardware to continue to decline in price for the next few years, perhaps by another third.

    In the interim, better to focus on passive solar when considering a home technology, for your personal residence.


    And better to focus on the environmental control hardware from the investment side. (SCADA/Smart Tech, etc)


    10.16.09    Plato Gold


    Trades as Trades on TSX PGC

    - Nordo project
    - Silver fox property in Timmins.


    Just closed three financings in last month. 90million shares outstanding. Low Cap (4.5M$USD)


    Anthony Cohen, Pres, was on Stu Taylor show last week.  He mentioned the tried platitude that the best place to find gold is next to another winning mine.  He also mentioned his silver Fox exploration project, ,on the Timmins, and strongly emphasized Apollo Gold (AGT) Black Fox property nearby. 


    Wonder if he had some advance knowledge of AGT Black Fox drill results before they were released today?

    Or, carefully triangulated position/supposition.

    Lucky guess?



    10.15.09    Interesting New Communique from America's top Living Economist: Martin Armstrong




    But, are things really that dire?


    How sure are you that the views you might express really reflect your underlying corps/core beliefs - and are not unduly affected by economists who may actively talk their book, literally.

    Bad news sells better than good news.

    My supposition is that Martin Armstrong (who I consider one of America's greatest economists) might have a COMPLETELY different view/predictions if his personal circumstances were different.

    Things might look like they change fast.  Think how different that truck horn sounds in front of you versus once you past it.  Much of that coriolis effect is a time scale. Two trucks heading at each other at 60mph on the highway, just appearing to each other after a small rise, look and sound VERY different - and remain in each other's windshield, for a much shorter time period than in the rear view mirror.


    This collapse has been ongoing for quite some time, even if the collapse is on a faster time scale than the Roman decay.


    Relocation to foreign shores is a big decision which affects and alters your family tree.


    I have an acquaintance who is pursuing Italian citizenship and plans to move to Italy.


    His family had just come over here 90 years ago.


    So, who made the mistake - his grandfather or he?


    Moving from a home is often a drain on economic resources (better to build long term wealth by staying in one house or continue to own and rent out previous homes).


    Think of the opportunity and sunken costs of moving to different continents every three generations...


    10.14.09    Please Watch out For Stolen Coins (higher value coins)


    Julian Leidman recently robbed in transit.

    Nice dealer, rather free with his collected wisdom. He was actually an underbidder on one of my coins once on ebay, pretty amazing considering the lower end fare I typically peddle.

    Anyway, the heist was in the east coast. Here is list of partial inventory (about mid-page):


    Here is a better description of such (much of his inventory was taken).


    Be on the lookout, esp. east coast.

    Be careful out there!


    10.14.09    Time to start hoarding nickel?



    Looks like India will be importing more steel and increase demand in the metals to do so:



    10.14.09     Vancouver Olympics Au and Ag coins


    These coins are kinda goofy, but I do like the Vancouver Olympic logo!


    Vancouver would prove an awesome forum to begin handing our REAL gold and silver medals.

    I had wondered why some gold or silver miner or association hasn't tried to sponsor an event, athlete, venue or something and hand out a real silver or gold medal (while selling smaller replicas on the side).

    my sense is they have approached and the PTB at IOC shut that down in a hurry.


    10.14.09    Interesting Thesis

    "Any analysis of the gold price starts and ends with investment demand."

    You don't often hear that.

    Let gold alert explain:



    10.12.09    Barrick (ABX) to take over El Morro project/mine




    NGD gets a nice bump, since they own the other 30%.


    NGD released their quarterly y-day, along with IAG and a few others.

    NGD had been rather stinky swing trade, flat.

    Now moves over to my core - as an operator/producer.

    10.12.09    Intel reports this week, so does GE


    They be keeping a mighty low expectation of GE results.

    Watch it beat a (revised downward) loss by a penny and the equities scream up.

    For about six hours...


    10.12.09    Gold Analysis - The Macro View


    Took a quick scan of about 40 gold-related sites I have tracked over the years.


    About 20 of them were forums.

    Many of those are either defunct or barely used.  I have not seen many new sites take their place.


    Here is the summary:

    The Following are no longer extant/active posting:

    - USAGold (biggest surprise)
    - SI Gold
    - Investors Exchange
    - Financial Sense
    - The Golden Pot: Sharefin stopped updating in 2008

    - Investors Exchange Forum - Peaked in 2004
    - Financial Sense:  no longer supports a forum

    - Raging Bull forum: defunct
    - Bay street:  less than a dozen posts in a year
    - Stockhouse: still active pump and dumpers
    - Goldcolony: defunct
    - Redcats: couple posts a day

    - G9999 gold forum: defunct

    - comet gold forum gets maybe a couple posts a week


    The following are improved IMO:
    - Goldtent    http://goldtent.net/wp_gold/
    - Goldismoney

    Goldismoney has some quality discourse but in the same annoying and awkward software/format that kitco uses.

    The following seem about the same as they ever were (stagnant or reliable, your call):
    - Gold Eagle
    - Kitco

    Unsure (not user friendly)
    - Le Metropole
    - Eagle Ranch

    Leave it up to you to judge this site.

    I would count the bullion section over at PCGS.com and GoldvsFRN.com as the best newcomers.

    Also, Seeking Alpha - for the past year - has had more comments/discussion on the metals than any other topic/sector.

    Yet, of the 20 major gold discussion forums I just surveyed/scanned (not including this one), that have at least a five year record and use english as primary language, I just surmised:

    12 are defunct/near dormant
    2 unable to tell
    2 improved
    2 stagnant
    2 new

    Would be interesting to see what statistics/metrics any one OF YOU would use to state any of those sites above (or this forum) are better/worse than they were five years ago.

    And, what new ones deserve coverage?

    For my money, the general discussion content quality on gold/metals/mining sector in the marketplace has DECREASED significantly in the past 7 years, especially the last 4.

    My conclusion is that the quality of gold analysis is way off from what it had been in the golden year for economic analysis (1999-2003).

    The last 3 or 4 years are markedly barren of the better analysis - across all those 20+ sites (with forums) I track, with just a handful of exceptions.

    Course, completely subjective - but I am happy with my criteria.

    Also from the Kitco fourm implosion of 2006 there is an obvious movement to suppress what had been some very penetrating analysis into global economic collusion.

    Further, probably some reluctance on part of the goldbugs to even post:

    'Hey, you unemployed loser watching MSN losing your house and looking for a job for 13months.  Yeah you. Too bad you listened to the wrong channel/politicians.  I got plenty of gold/guns/grubs and you don't!"

    Discretion being the better part of survival, much less valor...

    10.12.09     It's COLUMBUS Day


    Not indigenous peoples day or any other nonsense.


    The ITALIANS named the place (the name that stuck)

    To the victor goes the spoils and naming rights.


    (Generally I've notice the more pc you are, the less Italian you are)


    For those that ain't Italian, or those Canadian - Happy Thanksgiving!

    now, e*trade ain't italian.

    They won't transfer money between accounts WITHIN their brokerage b.c. the FED RESERVE is closed.

    Cripes, imagine the shutdowns when the real banking holidaze start in spades...



    10.09.09    Last Bill Gross article was garbage


    Nice to have already made your name/money so you can now post about your cat allergies and the colored bag one uses to scoop doggie poo.


    Let's face it, bond market is currently very difficult to decipher. as these guys point out - activity is all over the map:


    Note California bond/credit rating now below Louisiana!

    At any rate, CA sold about 1.5 billion in bonds last week, though the hope was for an even 2B.

    yields remain fugly...



    10.2.09    Will Israel and/Or US Conduct Overt Air Strike on Israel by end of the year?


    Futures market says no (but folks changed their minds a couple times this week).


    Even more interesting, the bet on Carbon Credits tanked, even though Boxer and Kerry introduced asinine 'energy' legislation into the congress yesterday installing all kinds of energy fees, charges and taxes. 


    That bet was down almost 10% today.


    Still, the volume is thin and bid and ask aren't really talking to each other.


    Looks like the only sure bets in life are that Donny Osmond is a good dancer and more troops will get slaughtered in Afghanistan...



    10.2.09    Brazil Blows a Bubble

    right now bubbles fueled by commodities like fuel and sugar


    long term - they have the water and biodiversity (DNA stored in the forest) to rule the planet.

    you heard it here first.

    10.2.09    Scripophily Hits Mainstream

    Not just for financial archaeologists anymore


    See this guy's top ten list?

    You'll know Gold has bubbled when Newmont (NEM) and Gold Resource Corp. (GORO) are in the Top Ten!

    10.2.02    Mining Headlines

    Mercator and Stingray get together


    Goldfields (GFI) invests in itself (and their Deep South Mine)


    MSHA lays the finger on NEM, blame for miner death


    ...as reported, NEM previously paid $500,000 fine on this one.

    moving to industrial metals...


    Mine Supt always an important position.

    Mackay and Fair helped build the Comstock King coalition (along with Flood and O'Brien) mostly based on their excellence as mining superintendents.


    10.1.09    Government Motors (GM) watches as Saturn Brand Dies on the Vine

    Under the careful watch of Chief Barry-Obama (who was out of town doing more important things, sacrificing for the little people).

    10.1.09    Dow Down over 200 and Nasdaq Down 2%

    October comes in whistling a familiar tune...

    9.27.09    Good Guru Rating Site



    9.24.09    As Heard on the Radio Yesterday


    California had a decline in immigration last year for the first time since WWII ended!

    though i don't see that happening forever. take a look at the map sometime. people don't keep moving indefinitely to where the weather is crappy.

    There's a reason Alaska has less than a million souls...

    AUS$ is fundamentally stronger too, IMO. Same with Canada, but their weather sucks too.

    You never here them complaining of overpopulation.


    Canuckistan had something to gain from global warming. Too bad for them temps been declining on this planet for the past decade.

    had a looky at three big ass glaciers last week. every one of them began retreating in the mid 1700s.


    9.24.09    Mexivada!!


    Here's what i wrote on why i bought in, fundamentally - speaking:
    5.9.08 More on solar research

    Another angle to conducting due diligence: look for miners with access to silver-tellurium - a requirement for solar panels. Mexivada is one miner holding the resource.


    I looked for another post in my blog, but couldn't find it -


    Was whining just a month or two ago that mexivada was the all time worst stock investment i had made in my life!!

    Then the pig triples or something and i am still underwater! (leetle amount)

    So what, active solar is for the dreamers/suckers.

    No shortage there...


    9.24.09    How about Ghadaffi - been in power longer than ANYONE

    - Says flus are a bioweapon
    - Says the kennedy assassination story stinks
    - Calls the UN worthless and humiliating

    Now, why do you suppose EVERY secret police org on the planet has NEVER taken this guy on?

    Heck, he just pissed all over UK (release of Lockerbie bomber) and now show up for a cameo (first ever) and commands the floor in NYC?



    9.24.09    More Thoughts on Buying My House

    Would do it all over again.  I bought a few months after the city declared bankruptcy. figured that was a ring the bell at the bottom type of signal. as expected, the house has declined in value, about as much as i thought. verrry hard to tell right now how much more decline is left. I suspect, in general, quite a bit. however, most of the loans that defaulted around here were sub-prime. the alt-a are a much bigger percentage in San Franciso - which has just begun what looks like a major slump.

    Would love to own a home in s.f, but would never think of being a landlord there. my goal here is to fix the back house (mother in law cabin) and rent out. unfortunately i don't have near the time i had hoped to fix the back house (which i knew was a complete re-hab). so that part is going slow.

    At the beginning of this spring i was a bit concerned, actually. five houses in the immediate area were vacant.

    However, three of those sold in the past 12-16 weeks and all are owner-occupied. one of the houses had a complete rehab, by the entire extended family, in just two or three weeks. the place next door is a rental. the last renter was there 12 years! very stable neighborhood all in all.  This place will be a great rental, especially with a spare house in the backyard.

    Hope prices continue to decline, for my sake, b.c. I desire a bigger place with acreage. but will take quite a bit of looking. price decline doesn't matter since i sunk 30 year money into it. but mostly, b.c. I know it would cashflow from the day i bought it. (great commuter hub - we have the best ferry station on the bay two miles down the street).

    So, I would do it all over again. plan to buy when i get the back place fixed up. interestingly enough, when folks have been asking me about gold and mining stocks (increasingly) I tell them to consider real estate. these were the same folks telling me to buy a house a few years ago. they are afraid to death of RE. funny/sad

    9.25.09    On Virtual Real Estate.  We now own and operate MercuryDime.com


    We have also been looking at and buying purchasing domain names, since those prices have come WAY down.

    Bought Mercurydime.com just a couple weeks ago. the domain had been in the top 18 million sites, with no work done to the page, no SEO, nothing, before i bought it.

    Now, just by putting in a very little tag/SEO text and links it jumped to top 8 million rank.  Mercurydime, the search, receives like 10,0000 active searches EVERY month.

    Eventually i will build the site and sell it out. (i have six other domains i would like to build up first).

    Just called on coinmint.com.

    The jokers want 20K for that domain!

    (we paid under $800 for mercurydime.com)

    So yeah - i am pretty high on RE, virtual or otherwise, as long as you have water and cash flow immediately.

    Where else you gonna put your$$? more physical? more guns/ammo? bonds?

    Time to get right with the means of production (food/water/RE) imo.

    Though - as always - hope I am wrong, and all my extended family/friends/community do better than I...

    9.24.09    Even More RE Thoughts

    Nevada has been decimated. and I see LARGE percentage declines still in the cards for Vegas and Reno bedroom communities.

    Parts of many other western cities such as Portland, Seattle, S.F., have seen some decent declines too from what I understand.

    Continue to bet on having nice weather and access to fresh water = grow your own food.

    Seattle apparently just passed regs to allow two hens (no roosters) in city proper.

    Here nobody cares, goats chickens, whatever.

    Oh yeah, they are re-doing all the streets and sidewalks in our city w/ stimulus money!

    We declare bankruptcy, the city looks better, the state goes down the tubes and the CA legislature bans other cities from declaring bankruptcy!

    Winning the pot with A-K-Q-J-9 of clubs...


    9.24.09    Amazed how little type MERS has received, anywhere.

    Not too long ago in California one could actually own property.

    Upon satisfying the loan (debt paid in full) the deed in trust, held as a security, was transferred.

    After going to MERS, most loans in Ca now simply recorded as a discharge of lien.

    downright hilarious!


    9.23.09    In 1860 California population was 100,000

    and there were 100 millionaires, all made in gold mining.

    The next group of millionaires made a fortune by selling and transporting supplies and goods to the dreamers/workers.


    9.23.09    For Those Crowing About Large Gains in their Precious Metal Mining Stocks

    big deal.

    in 1865 Belcher mining stock went from $6 to $1,525


    9.23.09    The Date the Pols Announce the New World Government, Existence of Aliens, and Entrance into the Interplanetary Federtion


    Dec 21, 2012.


    9.23.09    Motorcyclists to attempt new world record jump



    and for a finale he will attempt to jump a Case 640 tractor over larry kudlow, abby joseph cohen, bubby brinker and mahendra.

    9.23.09    Costo to offer special: 1 year of dehydrated food for $800


    Usually $999


    they can smell/set a trend.

    was up at b-inlaws place.

    just so happens they've been buying the same brand of dehydrated food that we have. funny.


    9.22.09    The Yukon Gold Rush provides quite the story.

    What those folks did for the promise of just a few grams of yeller. Travel 3000+ miles and haul 1Ton of supplies (per RCMP) each, over a snow bound pass and many-mile trail.

    And those few that made Dawson by spring of 1898 found all the gold was spoken for anyway.

    Why didn't they just buy GLD?

    the more things change...

    Someone pointed out "Because gold was $18.98/oz in '98....... 10 years later t'was $18.99 .......hardly a spectacular return."

    yah, hold gold for a decade and it goes up a lousy cent.

    Of course, if the cent was a 1909-s, 1909sVDB, 1909S Indian Head, or even a 1908-S indian head they'll do ok over the next 100 years.

    funny thing gold, doesn't move in price for 10 or 100 or 1000 years.

    and yet if you bought exactly 10 years ago...

    four bagger!



    9.22.09    Back from a 7-night Alaska/Inside Passage Cruise on NCL (Norewgian)

    Highly recommend if you can put the time/money together.


    Watching a glacier calve and icebergs float by in Glacier Bay while looking out the 180 degree views from the Finnish Dry Sauna on Deck Twelve is not an everyday occurrence (for me).


    8.28.09    What, exactly, is the Historical Return of the Original DJIA Twelve Stocks

    I am looking for return of $1,000 invested in the original 12 stocks that composed the Dow Jones Industrial Index Average (DJIA, or the ‘Index’) in May 1896. 

    Alternately, one could use the figure of 40.94 as the starting amount since on the first day of trading the DJIA posted the first daily average of $40.94

    Over the many years I have researched finance and economics I don't believe I have ever seen this figure. I am quite confident that someone has done the calculation. I am also quite confident that the endeavor took either several decades or several hundred thousand dollars to compute, possibly both.

    The inputs are dizzying.

    For starters, is a bankruptcy weighted the same as a hostile takeover versus a merger versus a government broken monopoly through anti-trust legislation.


    This Return on Investment must:

    -          Calculate the effect of survivorship bias on the Index by determining which firms went bankrupt, were dismantled by the USGovt, or had assets stripped by another firm before being bought out.

    -          Include stock splits, spin-offs and dividends (regular and special) required adjustments to the formula.  For example, three companies have share prices of $5, $10, $15 for an average of 10$ (5+10+15=30/3=10). If the third stock split 3 for one, the new average of these original three stocks is $6.67. So, we see that the original straight average of the group will not represent true value post stock-split.    What the calculation relied on is a quick and dirty accounting trick, simplified here, called using a divisor.  What happens is rather than dividing the new closing average by the starting share price of the original stocks, the divisor is changed – turns into whatever nearest whole number represents the value closest to the starting closing average before the split.  I will accept a divisor modified quarterly unless special dividends were paid during that quarter). 

    -    Provide a solid formula for how to independently value private capital.  National Lead exists as NL industries, but does not publicly trade. So, what is it worth?

     -   Determine weight of survivorship.  Survivorship applies not only to those firms that no longer exist (almost all of them no longer exist), but also applies to when the firm was kicked off the exchange.  This is done by a group of people without your input.

     -          Determine tendered denomination.  For those takeovers where stock owners were cashed out, must one assume that the cash should represent the  number of shares in common stock one could buy of the new parent company? Or, if the cash stayed as cash – how exactly would one computate opportunity costs?

     -          Track the possessory interest throughout, back-calculate conversions of preferred to common stock, common stock to zero, and zeroed liabilities.

    Someone should write a book on this question!

    Rather, I imagine someone did just that and someone else decided it should never be published...

    The Original Twelve Stocks of the DJIA

    American Cotton Oil
    Distilling & Cattle Feeding
    North American
    American Sugar
    General Electric Company
    Tennessee Coal & Iron
    American Tobacco
    Laclede Gas
    U.S. Leather (Preferred)
    Chicago Gas
    National Lead
    U.S. Rubber

    [By August 1896 Distilling and Cattle Feeding had changed names and North American was replaced in the index by a large US Hemp supplier, US Cordage.[


    A Brief Synopsis of Each Company

    American Cotton Oil

    Distant ancestor of CPC International

    Distilling & Cattle Feeding
    Whiskey trust evolved into Quantum Chemical

    North American
    Utility combine broken up in 1940's

    American Sugar
    Evolved into Amstar Holdings

    General Electric Company
    Still in DJIA 30 (but for how long?)

    Tennessee Coal & Iron

    Absorbed by U.S. Steel in 1907

    American Tobacco
    Broken up in 1911 antitrust action

    Laclede Gas
    Active, removed from DJIA in 1899

    U.S. Leather (Preferred)
    Dissolved in 1952

    Chicago Gas
    Absorbed by Peoples Gas, 1897

    National Lead
    Today's NL Industries.  No longer trades on Dow.

    U.S. Rubber

    Became Uniroyal, now part of Michelin

    I will offer anyone $100 to provide me this figure: Return on investment of $1,000 (or $40.92) invested in the original 12 individual stocks on first day of trading in May 1896, providing it meets my (not too stringent) methodology.


    8.27.09    Case-Shiller Home Price Numbers – A Deeper Look

    A first glance of the recent Case-Shiller index sees seasonal strength. This is expected as summer typically provides a stronger period of both home price and demand.

    Yet, will this seasonal strength provide a cyclical floor?

    Let’s look at some projections in debt quality:

    Fitch rating services shows a plunge in the Cure rate.


    Note that Fitch reports the CURE rate for prime plummeted from 45% to 6%. This is huge!  That is, only 6% of troubled homeowners who have slipped into problems (and temporarily bailed out by taxpayer largess) will STAY out of trouble. The other 94% will sink yet again into insolvency.

    And this is the report for prime loans. The subprime and Alt-A are even worse.  Fitch reports that only 5% of delinquent homeowners will be able to eventually become current on their mortgage payment. 

    Now, those who have been following the national US housing market already realize that the foreclosures for sub-prime homeowners has already peaked.  Following near cessation of subprime home foreclosures the national housing price has only regained 1.3% - this is the heralded ‘recovery’.

    More ominous clouds on the horizon are the large wave of Alt-A resets just now coming online. This wave is just as large as the subprime loans.

    Per Fitch, the numbers of Alt-A debtors who can expect to survive payments is now at just 5%, and falling.

    Bottom line: Sell now to the ‘speculators’, if you can.

    The buying opportunity will arise in another 2-3 years.

    8.22.09    NGC Begins Providing Description Encapsulation at no Extra Charge

    Starting September 1, 2009, NGC will begin encapsulating coins with detrimental surface conditions using details grades and descriptions of their impairments. This service will be provided automatically for all NGC grading tier submissions at no additional service charge.




    CoinMine prefers NGC over PCGS because of superior customer service, as exemplified here.

    8.21.09    What Income Tax Law?

    There is No Law that mandates individual citizens pay tax on domestically generated income.  There are no sets of specific laws that require individuals pay taxes on domestically earned income.

    If you can find this law, you can claim a $1M reward.


    Fact is, nobody has claimed this reward


    That is because there is no law.

    However there are a set of codes that require taxes on certain types of income.

    In the code of federal regulations [ 26 CFR S 39.22(a)-1] there is a definition for gross income.  This definition specifies that

    - Foreign income of American Citizens is taxable,

    - US income of non-resident foreigners is taxable, and

    - Certain income involved federal possessions is taxable.

    It then follows that IF there is no law that specifies domestic income is taxable for individuals, THEN the assumption that such income is taxable is incorrect.

    Those paid by the IRS, a private firm, do not like these facts.  IRS agents, lawyers and executive officers point out that the argument above is frivolous and false because, even though section 861 does not require a Citizen pay tax on domestic income, that argument cannot automatically be applied to every IRS code.

    However, their interpretation is unsupportable and documented by this relentless fact: No IRS official or attorney can/will answer this question:

    “What section of the CFR does the IRS use to determine taxable domestic income for US citizens?”

    They will, however, threaten you with jail – and sometimes carry out this threat.


    Remember, when a working citizen asks the government an honest question - you are threatened with imprisonment.


    When these government officials crash the US housing and banking systems - none of them go to jail.


    Carry on...


    8.20.09    Paid Provocateurs

    Because, why not use your tax dollars against you?


    Hal Turner worked for the FBI from 2002 to 2007 as an "agent provocateur" and was taught by the agency "what he could say that wouldn't be crossing the line," defense attorney Michael Orozco said.

    8.18.09    Yes Virginia, DNA Evidence CAN be Fabricated



    The scientists fabricated blood and saliva samples containing DNA from a person other than the donor of the blood and saliva. They also showed that if they had access to a DNA profile in a database, they could construct a sample of DNA to match that profile without obtaining any tissue from that person.

    “You can just engineer a crime scene,” said Dan Frumkin, lead author of the paper, which has been published online by the journal Forensic Science International: Genetics. “Any biology undergraduate could perform this.”

    8.15.09    On Hydrothermal

    Ormat (ORA) is very well run company. This Israeli firm has ramped up staffing commensurate with production and production commensurate with price.  They hold strategic properties.   

    One critical piece of information I did not see here is the sheer necessity to understand the water rights issue for these firms.  Without the water rights, and especially, the actual available quantity, it really doesn’t matter what property you own or quality of staff and management.

    To that point the states of Nv and Utah this week agreed to begin de-watering the snake and thousand spring valley to pump into the Las Vegas Basin.  This is just one of those issues that bears monitoring for anybody plying in the sector.

    Disclaimer: I currently hold US Geothermal (HTM).


    8.14.09            Health Care Issue


    Comes down to the tradeoff triangle: cost, quality and price.


    Right now, if you are able to pay the price the quality and timeliness of service are excellent. This is exactly why I, and most of my family and friends do not want the system radically changed except for a couple minor points.  We can afford the service and are happy with the quality.


    This group comprises roughly 60% of the US population.


    Right now only 15.3% of the US don’t have insurance according to a Gallup/Healthwise report released last month.




    This amount is actually down year over year.  According to the Census department in 2007 almost 18% of Americans did not have insurance.




    However, having previously worked for the Department of Treasury/Census I can witness that generally the department obfuscates actual data, fabricates and skews information regularly, blatantly lies to field staff and the public and is essentially run by liars, cheats and criminals (starting with head Geitner).


    So, averaging the Gallup and Census numbers we get a mere 16.5% without health insurance.


    Gallup further notes

    “…the rate of uninsured among whites is 11.6 percent compared to 19.9 percent for African-Americans and a whopping 41.5 percent for Hispanics. Of people earning less than $36,000 per year, 28.6 percent have no health insurance.”


    “The age group most likely to be uninsured is 18-29 at 27.6 percent".

    So, the current focus is to push the 84% of Americans with insurance to further subsidize the two groups w/o insurance:

    1.      Poor young people (they are healthy and often choose not to purchase insurance); and

    2.      Poor Hispanics.  Many of this group are here illegally and are currently subsidized.


    In a nutshell:


    If you currently can’t afford access to incredibly high levels of service you are, by definition, currently in a marginalized/unproductive class.


    Those that can't afford any service are getting it free, through the emergency rooms.


    So, the ‘debate’ really centers on forcing those who don’t want insurance to be forced into paying a percentage of their discretionary income to the HMO and trial lawyer cartels




    Buying off the votes of the illegal Hispanics, b.c. the ‘immigrant reform’ failed in a ball of fire two summers ago.


    8.13.09    Sugar at multiple year high price

    The substitution: High Fructose Corn Syrup  (liquid poison)

    The ploy: play conagra, MON and ADM


    general mills talking to Dept of Ag about 'sugar shortages'.

    that and one good wheat failure and that IS our food supply.

    GD pinko countries keeping their sugar to themselves.

    OH YEAH, well maybe we'll keep our debt, porn and army to ourselves.

    how bout them apples!

    8.11.09    Golden Cross on the Weekly Equity Charts

    One of the most followed signals out there.

    Apparently 1998 was the only signal failure since the 70's...

    8.8.09    Something I've realized

    Nobody has ever written a really good book on bartering.

    Today I read "Survival Bartering" by Duncan Long.

    Thin read, took me about 20 minutes.


    8.7.09    Smart Grid Waste, Fraud and Abuse: $2.85B and Counting 


    Never be too reliant on just one source of energy, food, water, income, etc.

    If the utility can 'monitor' your energy use, they aren't too far off from having the ability to hit the switch and turn off energy to your loop.

    The beauty of this smart energy movement is the flip side - micro energy plants (mills, turbines, arrays) that the homeowner can install which is off the 'smart grid' - true energy independence.

    Let them tax the system you let them know about and gain true independence with the system they don't know you have.


    8.7.09    Right, some go from ABOLISH the fed

    to Audit the fed.

    Give 'em a STERN verbal warning! maybe in writing on the second infraction.


    AS it is, the Fed won't release the recipients of the 900billion, even upon congressional request.

    According to the OIG they are conducting a 'review at a very high level'.

    Poor girl spokesperson had the gall to tell the congress critter she hadn't yet gotten to 'the part of the investigation where we thought it necessary to ask where the $900B went'.

    What's an audit going to do? confirm congressional demand that the banks suspend mark to market accounting?

    Sad Farce


    8.4.09    Just received a Palladium Pamp Suisse bar


    Never owned one b4. quite beautiful.

    Walked through steve wynn's latest casino couple months ago, encore. i was looking for palladium in one of the jewelry stores. not one gram in the entire complex.

    i scoffed at their pretentious attempts to sell me platinum and tungsten. "sell me something you don't have!!!" I haughtily lusted/demanded - heady from a recent win at the craps table.

    one of the NBA was playing at the table do believe, krilenko w/ the jazz (still there?). he had a couple buddies with him, each 6'5 or 6'6 and he towered over them. had a pretty russian girl on his arm, half his size. go figure - the guy was playing 3-5 grand per layout.

    what i did find enjoyable was the rare book store in the casino mall. don't know of another one in any of the casinos. they even had some Nevada paper (bonds) that I look high and low for. Way overpriced, and I pointed out the repair job that they forgot to mention (likely had no clue, sales guy was young).

    i've looked at some of those ugly ass palladium rounds cohen mint carries. looks worse than a sophomoric chinese counterfeit.


    don't think rhodium will catch on as a unit of account. no covet value.

    8.3.09    On the Chinese Water Quality Sector

    Chinese component manufacturers, such as Duoyuan Global Water, haven't yet risen above their warranted and ubiquitous track record of cheap quality crap.


    The quality of Chinese water quality monitoring systems and components must come a LOOOONNNG way to match quality of the US and German manufactured products. I suppose their product is sufficient for their uses and their growth will expand commensurately with internal demand. However, once they meet national market saturation is see growth very limited against better equipped manufacturers.



    8.3.09    Official final tallies aren't out yet, but Nevada retail sales are

    down almost 21% q/q.

    State legislature publically grumbling that they may resort to additional state worker layoffs/furloughs.

    What they haven't said - this is likely the year they lay the groundwork to go after the canadian gold mining companies doing business in the state; backdoor, via reform of 1872 Mining Act.

    That time is coming sooner rather than later, state press steadily paving the way.

    7.30.09    Why Lady Obama's Garden Ain't Worth a Shit (funny!)




    7.29.09    CA court injunction prevents new suction dredge permits



    all grandfathered permits possibly outlawed in a couple weeks.

    that's right, you need a permit for life liberty and pursuit of happiness dontcha know! and sorry, permits all sold out...


    7.28.09    Obama the Racist

    On GateGate [when o'barry castigated the cops w/o knowing (caring?) about the facts]: :

    - seems the original caller did not make this a racial issues
    - seems the dispatcher did not..
    - seems the responding officer did not

    seems only the president, the one who was not there, did make this a race issue

    speaks to HIS character...


    7.25.09    Department of Homeland Security Employees

    Paid to blog - using your tax dollars against your positions and political demands.


    Not much left from the definition of propaganda, is there?




    7.25.09    India Joins the Larger Scientific Opinion and Rejects the Theory of Anthropomorphic Global Warming

    Of course, their politicians - corrupt as they are - aren't yet actively working to destroy the citizen's economy. Unlike in the USA.




    7.21.09    Listened to Bernanke try to explain

    Why it was inadvisable for his corporation, the federal reserve, to be audited.




    BTW, the bill sponsored by Ron Paul to audit the federal reserve actually PASSED the house. The senate killed it.

    7.18.09    Nv fights Fed Plan to dump 17,000 Tons of Mercury in Nevada

    Now that they can no longer put thimersol (Hg) in vaccinations the poison is starting to stack up a bit, eh?


    7.18.09    Exxon Bets on Real Biofuels

    Smart bet.


    What did the government do for their part in ‘renewable energy’?

    Subsidize ADM and ethanol.  Har!

    7.18.09    Why not Continue Listen to the Talking Heads/

    Some things never change:


    Be careful whose advice you seek and counsel you countenance.

    7.17.09    How Many other Folks, other than Cronkhite

    Did more to debase actual journalism into nothing more than corporate shilling and pandering on the most crass level?


    7.17.09    Do You Buy Stuff on the Internet?

    Bing.com Cashback Program (formerly live.com) to Increase Next Month

    If you purchase on the web, the word around the campfire is that the Bing.com Cashback program will double from the current 8% to 16% between August 10-31st for Back-to -School. 

    Some merchants such as Footlocker and others will offer additional savings.

    personally, I am starting to enjoy the side benefits of the battles between MSFT/AAPL/GOOG

    7.16.09    Ooooooh,, congress had some very tough words for former Treas. Secetary Paulson

    Too bad giving a dog and pony show for the microphone is the only thing they'll do while they let him and his friends at GS make off with literally  BILLIONS of our tax money. 

    7.16.09    Observations on the Obvious

    A couple tidbits from: California Construction Market Report (July 9, 2009) by tbd Consultants

    Three months ago we were postulating that the bottom of the current cycle was close. That now appears to have been wishful thinking as the bidding market continues to be in the doldrums. The larger projects have become very scarce; as a result all the contractors are now fighting it out, even on smaller projects that many would have passed by last year. It is not unusual to receive fifteen to twenty bids with low bids 25-40% below budgets set six to nine months ago.

    Subcontractors now have to wait longer for payments to be processed. Pay cycles have crept up closer to 90 days in many instances, accordingly subs have to rely on their lines of credit where bank lending is tighter and more costly.  Owners will continue to receive bids below the budgets established in the last few years. (Approx 25-40% below budgets set 6 – 9 months ago)


    7.17.09    Want to Learn About Chinese Industry

    How is this for an exercise in frustration: try to find an accessible and transparent 10-q or equivalent financial statement for Zijin (largest Chinese metal mining company).

    Might as well be looking for the company environmental and safety programs..


    7.16.09    Exxon Places a Marker on Biofuels

    Smart bet by Exxon,

    Right at and immediately after Exxon Valdez spill in Alaska the petroleum industry began earnestly searching for alternative means of oil spill response.  The old model of scrubbing oil mechanically off birds, waves, rocks and beaches no longer worked as a practical matter. 

    Bio-remediation came into being, where we learned how to harvest and keep happy certain strains of bacteria that would eat fuel as a food source.  The technique has come a long way in 15 years.   

    Using bacteria as a FUEL itself, is the next logical step in our efforts to understand and better live within the Carbon and Nitrogen cycles. For far too long our society has made our living on just one or two areas of the carbon and nitrogen cycles.  

    Learning to match our behavior, fuel and energy uses synergistically with our bacteria friends will continue to yield ever increasing benefits.

    Another sector set to profit from a better understanding of waste conversion is waste management.  Those firms are prime candidates to turn existing infrastructure into co-generation plants, 'clean diesel/coal' cells and other green energy. I am not counting out the big four just yet. In addition to eliminating 80% of their competitors, they have locked up the politicians. Now THAT industry has a high entrance fee!

    7.15.09    Future of the US Dollar

    The replacement for the USD will not be an existing currency. Instead a new currency will replace the role and function of the current USD; the dollar may still exist for national trade.

    One cannot dismiss the intent behind the Russian president, Medvedev, passing out a new coin to the leaders at the G8 summit. Currently, three of the eight have publically called for a new unit of international trade.

    Just a matter of time before that minority position becomes a majority position. And yes, do believe gold will function quite well as that shelter in the storm during the transition period.

    7.14.09    Congress to turn over entire banking industry to the federal reserve, a private bank.

    And yet the Senate kills the effort to audit that very same federal reserve.

    Ask yourself this: If your elected representatives are willing to shirk THEIR finance oversight responsibilities; and instead turn over such to their largest campaign donors - don't YOU have the right to know the financial health of that organization which controls so many aspects of your finances?

    7.14.09    Salazar Vows to Destroy the US Mining Industry

    After all , this was one of the last manufacturing industries able to make a profit within the US.  Can't have that happen anymore!

    Once they're finished destroying Nv, watch the administration turn their sights on oil and gas production in the Dakotas.

    In the meantime, might as well extract whatever cash remains in the company before another 'manage industry bankruptcy' by and for the 'Government'.


    7.13.09    Interesting How the Wave Counts Differ

    Between the Dow (bullish) and the Russell (bearish).  Looks like main street (small companies in the Russell) will continue to suffer whereas corporate welfare will continue to prop up the government corporations.

    7.7.09    MSHA fines Newmont 500k

    over employee death at Midas.  What's a life worth, anyway?

    7.7.09    Invalidated buy signal sent by the Coppock curve?

    looking like a failed buy signal, very bearish.

    in other news, I hit this one spot-on:

    6.17.09 SPY, Looks Like its Setting up up An Island Top
    (strong technical formation)

    too bad my last silver purchase was damn near the top!

    7.7.09    New improved California scrip:

    you have to sign a notarized note to trade it!

    how special.

    wonder if it will eventually be worth as much as confederate paper?..?..?

    7.7.09    Why NOT Start a California Bankruptcy?

    Start liquidating assets to pay off the debt.  Imagine what just one old-growth redwood would go for! And we got plenty.

    Maybe start with the political appointments and offices.

    Look at it this way, the congress seats are already for sale to the highest bidder!  Why not just SELL the damn things on the open market, and open a future's derivative on the likelihood of any corporation making the winning bid.  Multiple streams of income!

    We currently pay a couple hundred grand in salary so they can sell the sell state contracts and assets to the highest bidder as it is anyway.

    Let's cut out the middlemen = price efficiency.

    7.7.09    California Public Auction: What would the Golden Gate Bridge

    AND the right to charge market tolls go for at a public auction?

    sell off each highway and the rights to toll.

    you would reach 28 Billion pretty quickly.

    what's that, a couple quarter's take for goldmans sachs?

    we're gonna wind up their property anyway, might as well enjoy the auctions in a public arena.

    maybe video tape the bidding from the staples center, live!

    get sharpton to m.c. and stevie W. to play a couple tunes.

    think what THOSE tickets would scalp for on craigslist!


    beat the rush! if everyone is selling a congressional seat on ebay the price will go down. Start Early.

    at least we got something to hock.

    imagine just selling one contract to sell marijuana on the santa monica pier.

    What bid ye oh marinol patent holders?

    7.7.09    why, alaska could sell -access- time with S. Palin!

    imagine what the bids would go to for an hour with her.

    she would like to screw you anyway...

    ...might as well reciprocate.

    7.7.09    My biq Q: will obama screw the Ca muni bond holders

    like he did to the chrysler bond-holders?

    I don't see why not, he's willing to screw everyone else.

    Ff the banks decided, within the span of a week, to no longer cash the IOUs, what do they know (and when did they know it).

    It USED to be said that the banks weren't in the business of losing money.

    ...but that is SOOO 2006!

    7.4.09    DEPRESSION? No way

    Not -evident- in my town.

    Btw my town is Vallejo. Remember, the one everyone made fund of a year ago cuz we wuz BANKRUPT/  Funny, nobody makes fun anymore; now that their town/county/state/country is in the same boat (just a little behind the curve, eh?)

    I caught this dude on Moe Ansari show yesterday, some PHD in state/public finance.  According to him, turns out both NV and AZ are actually worse off than Ca on a Per Capita basis.  For that matter, NY is worse off on a political basis (you think Ahnold has it bad, look into what’s been going on in Albany last couple months).

    And large swaths of Ohio, Michigan, and a few southern states- troubles there too.

    Anyway, at home, we are just a working class hub. Middle class.

    I just got back from a walk.  Know what I saw?

    - A few neighbors upgrading/rehabbing their newly purchased houses.

    - Most just kicking back on the porch, drinking and BBQing. (some have three bbqs lined up).

    - In their driveways? Cars. Usually two but often three. Every fourth one has either a RV or a boat.  Every fourth house also has a car that stopped running a while ago, sitting in the side driveway (half the houses here have two driveways).

    Someone just reminded me: Remember when Hong Kong was top-of-the-town?  Per capital leading owner of Rolls Royces?  What happens when their car breaks down? They tow it with a beast of burden!  What do we do? We let it sit there and get a new one! And pack the old one full of gear, clothing, books, audio visual equipment, exercise equipment, extra stock, etc.

    - Fact is, most people park their cars in the first and backup driveways b.c. their garages are FULL OF STUFF.  Home shops, pool tables, extra living rooms, more cars, equipment, camping gear, Drum sets, more audio-visual equipment, antiques, supplies, more food, etc.

    - I dodged MANY aluminum cans (worth CASH in our state) in the street.  Most people ain’t  bothering to pick ‘em up.  Too much trouble for free metal/money/commodities!  They have better things to do like surf the web, pick out a new ipod or drink beer.

    I picked abandoned money off the sidewalk. 

    You know what else is littering the sidewalks here? FRESH FOOD. 

    Peaches and plums are at their height.  Most of it simply falls off and rots in the yard or on the sidewalks/streets.  Most folks here get 4.5 squares a day (and pack on an extra 10-20 pounds).

    They couldn’t bother to PICK UP FREE FOOD! 


    Not here.  Maybe your neighborhood, have you walked around or even talked to the neighbors lately.

    Sure, the depression is on the telly and the newspapers (disappearing) and spewed from the parasitic politician class – but I don’t see it.

    Now, maybe YOU remember 1930-1936 well, but I doubt it.  From the FIRST HAND stories I’ve heard, things weren’t as I just described.  Your mileage may vary, but maybe it's your vehicle.



    Are the parasitic politician class pretending so? YES.

    Currently, the IOUs are to pay/collect 4% interest! Are YOU getting that kind of return on CASH?

    In 1992, the last time CA issued IOUs, only one N. Cal bank – a credit union with mostly state workers – accepted IOUs.  Today Wells, BAC, Chase et. al. promised to cash these IOUS (with a wrinkle, they COLLECT the interest).

    Just another TARP/TALF/BARF; a banking scam, more of the same fiat games.

    Carry on with the gnashing and wailing.

    p.s  Ok. Not everybody has it really great.

    Fact is, some folks are losing their homes.

    You know what that means?

    They will move from a 2900 square feet home with 2 driveways, 3.2 cars, 3 baths, 4 rooms, a boat or RV, and a garage/kitchen/4rooms and a garage full of stuff they don’t need.  (They will rent a larger storage unit for all that stuff)…


    A 3/1 1,100 sq. foot home with only one driveway.  AND They might have to downsize to two cars (and a larger storage unit).


    And you know that RICH creditor nation (the one that starts with the initials CHINA?). 

    MOST of their citizens have one or two light bulbs in room, if not the ‘house’.

    Plumbing?  Sanitation Districts?


    Best depression yet!

    pps.  Yep, CHINA, INC has begun to let the Ruan run.  See last months story on trade using native currency with Brazil. See their bitching about the USD dollar. 

    The reality is, they screwed themselves.  China CAN NOT collect.  All they can do is crash the dollar and further screw themselves in the process. 

    The supply lines are too far and too long for them to support a military invasion.

    Anyway, they’ve already sent advanced scouts (San Francisco now is almost a majority Chinese).

    You know what happened?

    They like it here. They built homes and businesses and schools and communities and send their kids to CAL (Berkeley, Davis, Irvine) to get a PHD.

    And then you know what happens?

    Their kids bring the ways of the usa back to CHINA. They build factories and server farms and engineered infrastructure and BRING DEMOCRATIC REPUBLIC IDEALS.

    Only way China can collect is to BUY our STUFF.  And the stuff we have is not cheap-ass plastic trinkets.  We have metal, commodities, land, universities, bio-labs, houses, multiple and redundant freeways.

    They will buy it back – much of it.

    (That is why real estate and gold are such good bets right now.)

    Don’t you love it when a good plan comes together? (Send fiat in return for labor/goods).

    Enjoy the overabundant fruits of your labor.

    Happy Fourth of July, Long Live the Republic!


    7.3.05    Someone Captured a Picture of a Water Spout over a River

    Neat pic, here it is:


    A large waterspout forms above the St. Johns River in Jacksonville, ...

    St. Johns River in Jacksonville, Fla. on Friday afternoon, June 26, 2009.  - copyright AP.



    You don't see many pictures of these.  I have only seen a spout form over a river once, the Missouri River about 8 miles before its confluence with the Mississippi. The river had broken through both sets of levees and was well over a mile wide at this point. The competency was incredible as she was carrying cars, cows, small aircraft - everything.  We were at the top of the hotel along the banks, maybe 10th story.  The winds were so strong we barely made it fom the parking lot into the hotel. We knew from the news that this storm had already spawned three or so tornadoes, just a few miles away, and that the cell was moving straight toward our location!  From the window in the hallway a few of us saw the River Spout form FROM the river up into the sky.  The formation didn't last long, perhaps a minute or two. I surmise that the surrounding tornadoes created a very low pressure area in this particular location, allowing the water spout.  That particular storm made the front cover of the August 1983 National Geographic magazine.


    Inside the hotel we partied hard all night, still a great memory.


    7.3.09    Four gold producers on top 10 list


    ELKO — Gold producers moved up in market capitalization rankings among global mining companies as the industry was bludgeoned with falling commodity prices and rising costs in the fourth quarter of last year, a new PricewaterhouseCoopers LLP study shows.




    Interesting that Kinross now has a cap in the top four out of the mining company sector.  They've done quite well, strong management show.


    7.2.09    Lyn Knight Purchases the Memphis Money Show

    reports are attendance at the show last week was decent and sales were not too bad, generally mixed.

    7.2.09    Upcoming Southern California Money, Coin and Paper Shows


    ANA World's Fair of Money August 5-9, Los Angeles Convention Center,

    The 2009 Golden State Coin Show, August 22nd and 23rd,  Masonic Center, 50 West Duarte Road in Arcadia, CA.

    The September North County

    Monthly Coin Show, On September 6th,  Embassy Suites Hotel in Anaheim, CA.

    47th Annual Fall Long Beach Coin,

    Stamp & Collectibles Expo, September 10th through the 12th, Long Beach Expo, Long Beach Convention Center.

    Buena Park Coin and Stamp Show Retail Clerks Hall, 8550 Stanton Avenue, Buena Park, CA 90622. October 3rd and 4th


    6.30.09    BLM raises fees for unpatented claim maintenance by 10%


    6.29.09   Today the California legislature inserted a 'fee'


    on state oil production. won't get signed this time, but the path has been laid.

    Nationally, Bingham (D-NM) Rahall, (D-W.Va) have mining reform bills in senate committees.

    Just a matter of time; with or w/o Reid.

    Loss of Ensign luster (R-NV), will not help.

    Interesting re: two R-senator 'affair leaks' in past 10 days. something up re the next vote on the energy/carbon bill...

    6.29.09   Newmont acquires all of Boddington


    Published: Monday, June 29, 2009 2:00 PM CDT
    DENVER — Newmont Mining Corp. announced it has completed acquisition of the remaining 33.33 percent interest in the Boddington Project in Western Australia from AngloGold Ashanti Ltd.

    Newmont now owns 100 percent of Boddington, the largest gold project in Australia. The open pit mine is expected to produce 1 million ounces of gold a year for the first five years when in full production.


    6.29.09   Changing of the guard in Honduras

    some of our local faves operate down there: breakwater, yamana, goldcorps)

    was yamana tipped, or did they just get lucky w/ timing re: selling of San Andres mine?

    what up - a couple well place canuck expats in tegucigulpa?

    6.29.09    Another SA domino - Uribe in Colombia


    u figure he'll get the constitution changed to allow for a third term? if not, what about anglo-ashanti, ventana and my fave - B2gold?

    nice write up here, but how can the guy gloss over political risk?


    termed out two-term administration IS something to enter into the calculation. what happens if the columbian PTB lose even just a little control over the unionization movement?

    p.s. TODAY Uribe met with Obama in DC...

    6.23.09    Why Wait for the Counterfeits to Come to You?


    NGC opens submission center in China




    And in a completely unrelated story,

    NGC and PCGS join to 'fight counterfeits'




    Smart business, make a play on both sides of the coin...


    6.23.09    Chase dumped me.


    Granted, I hadn't used the card AT ALL in several years. They never lowered the credit limit in all that time (16k) until a couple weeks ago. They dropped it to 300 and canceled me the next week!

    I actually think I'll open another one, since I want to keep my credit score high as I continue looking (sporadically/half-heartedly) for an investment property.


    The new credit cart regulations actually count late payments against you less than previously.  However, now  a lowered credit capacity (or perhaps percentage of available credit used, not sure which) will lower the credit score.


    6.23.09    Is the herd moving the wrong direction on Bonds (TLT)


    There remain a number of unknown variables out there, which make this market such a tricky one to play. However one thing I'll wager is that geopolitical uncertainty, such as "Iran out of control" - the example used today - rarely forces long term yields much one way or another.

    Think of it this way - when was the last time you heard an investor say/blog: "Gee, that government is collapsing and their neighbor doesn't look so hot either - think I'll go buy more government paper promises!".

    Not likely; the higher probability bet is they'll increase their defensive positions in short term cash, commodities and gold, and local real estate.


    6.22.09    EPA Screws up another one, according to the SCOTUS


    WASHINGTON (AP) — The Supreme Court today upheld a federal permit to dump waste from an Alaskan gold mine into a nearby lake, even though all its fish could be killed.

    Environmentalists feared the ruling could weaken protection of other lakes, streams and waterways from mining waste.

    By a 6-3 vote, the justices said a federal appeals court wrongly blocked on environmental grounds the Army Corps of Engineers waste disposal permit for Coeur d’Alene Corp.’s Kensington gold mine 45 miles north of Juneau.

    Officials of Idaho-based Coeur d’Alene Mines said the decision was the last hurdle to building the tailings facility so that mining activities can begin.



    Just another in a loooong lines of case law where the USEPA was not able to properly interpret or apply their own regulations, and someone else had o do so for them.



    6.22.09    Someone touted tech stock LSI

    Bottom Line First: Why invest in a company that is losing money?

    (Hope that it will eventually be able to find a customer is not a ‘forward looking statement').

    I remember when LSI unceremoniously fired an acquaintance of mine, production engineer. He was offered another job in 4 weeks whereas LSI still can't make a profit!


    6.22.09    Someone asked: "How do you manage your To-Do lists?:"


    Great Topic!

    The categorized list is key IMO. The problem with just one list is two-fold:

    1. The list gets too long and disorganized; and

    2. The list doesn't form a very good RECORD when completed.


    IF your list can also function as a record, log and notes THEN you are working a system rather than just a list.


    If you have to do anything in life more than once, you might as well make a system to do such more efficiently.


    One type of list is for regular chores, like shopping.  We keep a permanent list in the computer with most staples we buy every week or every other week from the grocery store, organic shop, and Costco.  We print out that list, scratch out those staples we don't need that particular week, add the quantity of what we don't need and presto- instant list is made.  We even have the grocery list organized as the foods are organized by aisle in the store. I pretty much pass by everyone in the store b.c. I know exactly what we need, and the list was already vetted by my SO.  I see others in the store make 2-3 calls on the cell to figure out what they need -not efficient.  Also, if you use coupons (we generally no longer do) you can order them as you pick up the items. Since this is a list we use every week of our lives, it has become fairly complex, for a list.


    Another way to design lists and other organization tools is along the lines of how our brains are hard-wired. This is, we have short term, medium term and long term memory. I organize lists that way also.  Short term (today) are on one piece of paper, new tasks are added by stickies on the paper.  Rather than just x the box or cross out the line, I circle the box if I started the project (like making a call and leaving a message) but haven't finished.


    Project files have their own lists.  When the lists are complete I bundle and put into archives, these are now project records.  When it's time to perform that task again, rather than start from scratch I can start from my last records and notes and improve the process from there.


     I also tend to use my own short-hand, symbols and colors that are significant to me only.  The downside of leaving records is that someone else can use them AGAINST you.  In MANY instances your Franklin planner can be subpoenaed during discovery if a former business partner on a deal gone bad sues you, or when the IRS comes knocking.  So, if the notes are indecipherable to anyone else - lucky for me. They say what I MEANT them to say.


    The third type of list is topical.  For example,

    - The log for my house re-hab

    - The log (the black and white booklet) for my business finances

    - The list of what I am trying to find at garage sales/estate sales (hard to find/obsolete things)


    etc. The topical lists stay in a certain location, right next to the topic area - typically.


    Took a while to finally figure it out, but I know I am now saving time and money by using this paper system. 


    The harder part, as has been discussed, is how to combine the paper files with the electronic records/systems...


    6.18.09    Smithsonian Opens new Coin Exhibit




    Funny Suitcase with $134 BILLION in Bearer Bonds



    Nary a peep about the worlds largest scam/heist in the mainstream press.  Go figure.


    Definitely a planted fabrication of a story.


    There are some quite interesting points made in this article and the posts/comments made thereafter:


    Strange Inconsistencies in Stolen Bond Caper



    I like another laugh-o-rama headline which blames the 'mafia' for the farce.


    Actually, the mafia never really condoned large scale counterfeiting.  The reason it never got out of hand (allowed by either the capos or the government) is because counterfeiting is the only crime in DIRECT competition with the government printing press.  Now, the organized crime syndicates had a fairly free hand to run drugs, prostitution, numbers and the like since partial profits were remanded to the system/politicians as bribes, graft, and payola.


    However, if the payola was made in fake money - it didn't carry quite the same gravitas. (The same principal applies if large scale counterfeiting lowers value of the circulating currency - the politician can buy less with the paper). 


    The mafia prospers off a host - the local people and government.  The local mafia, as parasite, maintains no benefit in killing the host government through usurpation of the money supply or collapse of such government.  After all, organized crime spent quite a bit of time and energy grooming the politicians for bribes, finding the right blackmail, etc. The corrupt system in turn helps maintain organized crime in positions of powe.  If counterfeiting proves sufficient - then there is no need for other types of crime - except to keep others employed and fighting under the same flag. 


    Outside enemies use counterfeit as a weapon; inside enemies use the printing press.



    6.17.09    KGC: Glad I sold When I did (low20s)

    But this price drop in on increasing decline in volume.


    Though as a point of fact I can buy in cheaper than when I bought it last time!


    6.17.09    SPY, Looks Like its Setting up up An Island Top

    (strong technical formation)


    6.17.09    Hoarding Gold = Storing Food?

    Where was Roosevelt's legal authority to determine the threshold here on what constituted 'hoarding'?  How was the definition of hoarding proscribed, except via government fiat decree? Government regulation of my personal stores is not compatible with their expressed powers.

    Let me ask you this - how much food am I allowed to keep at my house? Is it up to you, or a government executive, to deem a sufficient amount? How does that comport with my rights to pursue life and liberty?

    Dangerous waters and lack of internal logic support that premise.

    6.14.09    Back From semi-working-vacation

    Wish I was still out of touch with modern world...


    5.30.09    Government Motors (GM)


    - Ignition sticks in OFF
    - Reportedly will run (downhill), but nobody has bought one yet to check this theory
    - The radio used to be pretty sirius, but now has just oNePRogram
    - Spec sheet says it goes from 0-60, but requires push from behind by 300 million owners
    - Stalls completely every 4 years
    - Once you get past the initial sticker shock of $75 billion, the payments get easier: Every day for the rest of your life
    - Bad Rattling noise (bondholders stuck in trunk)
    - Horn plays Blue Monday
    - Great gas mileage, if you don’t mind the 3-hr waits at that station and chronic shortages
    - Solved global warming (only runs on hot air)
    - New ad theme music: Broken Clock (sung to the tune of Like a Rock)

    Sure, the fools beat me to buying the URL, but what have they done with it:


    i guess they're making a statement regarding how they expect progress to move henceforth!


    5.30.09    The Thesis: Uptick in Mail Volume or parcels posted Equals Uptick in Economic Production.

    Let’s examine with a slight bit of light. 

    On the surface this indicator seems hopeful.  Alas, it represents the same detailed critique as the pizza hut delivery indicator in D.C.  That is, the more pizzas delivered late at night equals the more hours folks are working on our recovery.  Too bad the fallacy smells better than it looks/tastes upon a closer view.

    Most regrettably, a massive influx of mail between government agencies DOES NOT constitute an economic recovery.  Furthermore, increased numbers of registered deliveries between lawyer offices charged with dismantling Chrysler and General Motor bondholders DOES NOT equal new green business shoots.  Tax refund checks do NOT constitute economic activity.

    ‘Jingle Mail’ simply precedes the Vulture Envelope.

    Rather, how about we examine the baseline for economic recovery in our global world: EXPORTS.  Some will look at the GDP and become simply mesmerized by how good the numbers have looked (especially in relation to how Main Street/suburban strip mall appears today). hAR!  Alas the number of times Merrill and Bear swapped the same derivative, each taking a cut off the top, composes part of the GDP.  Now the new reality crowds out the happy fluffy clouds.

    Even the government number manufactures can’t hide the depths of the decline.  GDP Data released TODAY shows the number DOWN %6.1.  Incredible, really. Imagine the true number when lawyer mail and bogus bank profits are stripped out of fanciful-land economic reporting!


    Now -May mercury proffer: Only what you produce, sell and then mail = economic activity.


    Looking at the mail alone, without factoring in SALES (nothing happens until you sell) and PRODUCTION keeps our analysis in kidding-garten.

    One of the best indicators of export production is: Change in Export Intensity.

    Unfortunately most of the 2008 is still on a pay-per-view so I’ll post the 2007 data as the baseline.

    For a review, Export Intensity reflects the amount of production designed for international export.

    In 2007 16 states remained net exporters.

    Here they are:

    Export Intensity Data

    So, the Change in Export Intensity reflects positive international exports = Economic Growth

    As a point in fact, last weekend I reviewed 1st Quarter 2009 Department of Commerce charts for Gross Economic Exports and Export Intensity.

    Regrettably I do not have those printouts currently available.  Nevertheless I can state that there were just FOUR states with positive growth.  I can remember three of them: Mississippi, Nevada, and Oklahoma.  The other 46 saw net declines!  Many of them, especially the big boys and Midwestern manufacturing hub saw double digit declines, up to 25 and 32%. This is a NIGHTMARE. You cannot compete given that type of export contraction.  THIS is a BIG reason why they are taking down the dollar right now!

    Of the four positive states, one was less than one percent and only Mississippi and Nevada were in double digits.

    OK. You may believe NV production was precious metal increase. Wrong. That cake has baked since 2003 and mostly everybody had had their slice by now. The remaining slice is simply divided up into diminishing (disappearing) returns.

    The fact is that Commerce Dept. does not provide the underlying sector growth.  So, my source contacted both the States of Ms. and Nv.  Mississippi showed the strongest and sustained growth, primarily due to the next generation Humvee and other military product hardware.

    Nevada data provided more confusion. The state could only report that the data uptick was due to airplane part manufacturing, with no further explanation.  A further source (private airlplane broker) using proprietary software was able to determine the uptick was almost entirely due to export of one or two likely renovated airplanes to an asian government (non-military exports of aircraft are not officially tracked as individual sales).

    Bottom line, only Ms. Increased export production, in preparation of increased war.

    This does not a recovery make.

    In order to increase exports your product needs to have greater pricing power than your competitors. That is, cheaper.

    That requires a weaker dollar.

    You saw that action this week galore.

    I welcome any further examination.


    Some further examination:

    Have increased exports caused the Sterling Pound to rebound of late?

    Well, as a point in fact UK exports also declined in the 1st quarter 2009.

    This source reports that UK service AND manufacturing decreased Q1-2009 by 6.1%

    q/q. (However I haven’t yet found the decrease in manufacturing alone, less service). 


    However, that 6.1% figures VERY closely to the overall 5.9% decrease in imports, suggesting the numbers are quite correlated – domestic demand – and not Export Intensity.

    This source provides even a better picture of UK manufacturing:


    A better ratio to examine might be the decrease in UK exports relative to US exports.  Namely, US exports dropped by over400% compared to the UK

    Unfortunately and Typically the US press is not printing articles which even contain correct facts or math.  Here is but one example:


    One might be better served to rely on the foreign press.

    This source quotes previously reported numbers, backed by the tables I reviewed this weekend, that shows first quarter US exports dropped by 30%.


    The WSJ at least still gets the facts straight and also prints decline in US exports at 30% in the first quarter 09.


    None of these sites apparently employ writers sophisticated enough to separate out goods and services exported.  When you look up the data here:


    You see that US GOODS exported fell over 38% q/q.  (Not sure if the relatively rosy – by comparison -services exports includes kidnapped journalists or troop movements between occupied countries)

    A manufactured goods export decline of over 38% decline, on top of a poor previous quarter is simply ghastly.  A true crash. And who – exactly – is printing this reality?

    As you see, this ratio of UK/US manufacturing is yet another indicator supporting the stronger Sterling in relation to the Dollar.

    Nothing yet to reverse the thesis.

    5.29.09    You think the Dollar is off today?  Look how bad granny had it:

    phpBN4S0B by agora_financial_images.


    5cent coke and 5$ latte - nice one!


    5.29.09    Sold KGC@ 20.25

        7.25.08    Bought back KGC around $18.50


    Worked out well. Hope to buy back cheaper...


    5.29.09    How to Play ABX


    One thing I have noticed is that ABX managed, since the Lac Minerals days, have made very shrewd moves based upon company reserves and properties. One thing they have had more difficulty with is accurately 'guessing' the future price of gold.

    i.e. their hedge book history. They are now in the position of 'winding down' losing bets when they could have benefitted from this recent upside in price of gold.

    Hence, another play is to focus on the obvious ABX targets, based upon previous takeover history and patterns, before actual takeover announcement.

    This tack has also worked for me regarding potential KGC takeovers.

    Both KGC and ABX have managed their takeover targets remarkably well. In part the mining sector has an easier time of merging mining operations than other sectors/industries.


    5.27.09    Will The US Treasury Sell its Gold - What Can it Buy?


    The BIG LEAP of FAITH is making a book value of $44.22 per oz gold into $950 oz gold.

    Treasury Department has not provided an audit of the gold deposits since the 1960s.

    As it is, we have taken out $950 credit based upon $44.22 deposits.

    The more true analysis is debt divided by verified oz gold in holdings.

    The difference is "Full faith and credit"!


    5.25.09    Looked over a Very Original Collection of 24 Franklin Halves

    These were put away in a Whitman Folder some 40 years ago and haven't moved since then. About half the coins took on some very attractive oxidation/toning and display very showy colors and patterns. The joy of coin collecting + art.


    5.25.09    Remember the Heroes!


    5.24.09    The Mighty Have Fallen

    Spent some time this weekend looking at the US export data for the previous quarter prepared by US Commerce Department. Very sorry. Only four states showed an increase, and one of those was just barely, possibly within the standard error.  The three states actually showing an increase were Oklahoma, Nevada and Mississippi.  Most of that was defense spending.  Many of the other states were down in double digit numbers, some off more than 20%. Fugly!


    5.18.09    Stand up to the Effort to Outlaw Recreational Mining


    (Please distribute)


    Here is a missive from just one organization that would rather you stay at home sipping on the fiat syrup, rather than enjoy YOUR land in the Golden State:

    Action Alert
     The California State Senate will soon vote on a bill that will protect California rivers from the ravages of suction dredge mining. Write a letter TODAY urging your State Senator to support SB670 (Wiggins), which will place a moratorium on suction dredge gold mining in rivers throughout California, until the California Department of Fish and Game develops and implements regulations to protect water quality and river habitat and endangered salmon, frogs, and other species.



    5.18.09    NGC Begins Bullion Certification Service

    They see the coin market drying up and the bullion market (especially the fake stuff) booming.

    Smart business move IMO:



    5.18.09    Coins in the dump, Bullion goes nutz: story




    5.14.09 Sold TLT


    5.14.09    Natural Cures They Don't Want You to Know About

    If any of you have read this book by Kevin Trudeau, please let me know your opinion of such. Thanks.



    5.10.09    Bonds: Funny Pages Update

    Bond Funnymentals: Week of May 2

    (NOTE: I don’t tweet.  IF you want a summary of current economic conditions in 8 words and three web slang acronyms, look elsewhere).

    Bond auction on May 6 was rather anemic.  The story was that bid coverage was 2.14, better than recent ratios.  Here are the two stories that did NOT make daylight:

    1. Spreads and price action is terrible; more importantly

    2.  Remember those happy-talkers pushing the story that the government wanted you, their loyal subject, to have a sweet little 4.5% interest rate?  Bond market squelched that one, baby.  30-year rates just about there now!  On Thursday there was A FULL POINT move in the 30-year yield!!! (Which also happens to be the at current trend line of the ten year [declining] average).  Did you hear about that on the radio/tv/newsie?  Nope – but it rules YOUR life (Note: This only applies to folks that hold debt paper or invest or have savings or an ARM or variable contract or hold a bank account.  If you are scavenging garbage stuffs in northern Rio, or eastern Mazatlan slumburbs, please ignore).

    Bent Politik

    Even more damaging than the reckless fiscal policy, corrupt politicians and a wayward citizenry is a government without checks and balances.  This has emboldened the parasite class and administration to strip assets from both the big boys and little people at the point of a gun.

    The treatment of Chrysler private equity – THE BONDHOLDERS – proves an abomination which has cast a very long pall over the bond market.

    One cannot ignore the leader of this nation eviscerating bondholders for ‘being greedy speculators’ when they refused to accept offers of 8-10 cents on the dollar.  That is not only their RIGHT, it is their fiduciary duty.  What a breath of fresh air for the bondholders to say NO to further pillaging of THEIR trustees. What should they say” Oh, the prez asked nicely so we threw away 90% of your equity position so that Ben/Obama/Timmy could have a nice press conference this week”. NOT.

    Thankfully there still is a class holding onto market principles (more likely greed, but you can’t always choose your allies).   Nevertheless, these mutual and hedge funds are not pirates, they hold a SECUED debt.  They are playing chicken with the administration and want to push the slowdown into federal court – where it belongs.  (the lawyers will take $900 per hour).  And for your billions of investment in chrysler, you get an 8.9% unemployment rate. 

    Bottom line: Why buy corporate secured debt, when private market forces and contract law have been replaced by political favoritism.? We are at an extremely dangerous precipice.  May the judicial branch step up to the plate, our greatest (if tenuous) hope at this point.  If not, our military will need to make some very difficult decisions regarding their loyalties.

    For more proof in the pudding – the truly disturbing scenario plays out here:

    A bloc of 20 members (hedge funds) holding Chrysler debt has now evaporated to 5.  How do you think that happened? Did 75% of Chrysler bondholder overnight decide they didn’t need the money (their jobs) after all?  Hah, likely the government offered a deal they couldn’t refuse, and the rats scattered.


    Many more acts yet in this particular play.

    Remember, this is just a prequel for the remain act: FGM Bankruptcy

    Crumbling Paper

    Given the current circumstances and future likely events, who can really afford to hold paper?  Waves of higher inflation and interest rates.  Conventional wisdom is that the markets are calling for increased inflation downs the road due to higher budget deficits and

    Who will put money into 30 year positions, commercial RE, etc. with rising 10-yr yields and 30 year yield now over 4%?  Doesn’t make sense, factor of safety is too out of whack.  BTW, you know who sets the commercial real estate rates? The same folks that are getting screwed on the Chrysler deal.  You think the single family market was nasty – just watch the commercial rates over the next 12 months.

    Look at the price action in gold, silver, oil and natural gas for some verification of that thesis.  Nat gas up 15% this week, oil at yearly highs, etc.

    The Chinese now hold about 2$Trillion USD.  What do you think they are buying now?  (hint: not more dollars). The average Central bank on this planet holds about 10% of reserves in gold (‘fractional banking basis’).  China only holds a little under2%.  Sources; 5.5.09 Financial Times. 


    So, what do you think the chinese are buying? GOLD. 

    Gold is and has been the world currency since the beginning of written financial transactions.

    What is the source? Those fools in England who sold into pools at the lifetime low in gold (about $260), courtesy of their financial engineer of disaster: Brown. So what did the cagey brits do? They then elected him Prime Minister. (and get what they deserve).  For the record, the US has been shipping gold out of this country into Asia for quite some time. We are in the same (sinking) boat.. 

    Locking in Interest Rates Now?

    On the surface it looks like a low brainer.  Only problem is, that strategy has been valid- but incorrect – for the past seven years!  How many times have the pundits pushed the theory that “rates are going to go up, they can’t get any lower form near record lows”.  Well, actually they can go to new record lows – and stay there for decades. Look at Japan.

    Changes in Equities Positions

    All the hype this week about re-flation trade, ‘spring green shoots’, lower unemployment numbers, rising consumer confidence, etc.

    HAR! Sell into this rally.  The unemployment numbers were the canard floated by the press wing so that GS and the other biggies could scalp a few quid.  Very generally - the number was leaked, GS took their positions, and forced market shorts to recover.  Even as I type, Obama just came on the tv and spouted all kinds of economic fairy tales (and may favorite, new ‘government re-education camps (anyone remember that book?), starting with the unemployment numbers. This figure served as a bookend for the week.  Benranke started the week out by laying out the pillars of the administrations ‘Economic Recovery”:

    - Improved Economy

    - Higher Unemployment

    - Difficulties Obtaining Credit

    - Flat and restrained housing values

    - Higher taxes, fees and licenses

    But hey - its a recovery!

    I am glad that my new positions bought in February have paid off (after mostly tanking right after immediate purchase).  However, the equities markets are up almost to the fibonacci retracement since the March 9th low.  Sell in May go away may once again trump the other proffered pabulum making the rounds.  There are way to many optimists out there right now getting ditzy about the recent runup in stock prices. From my experience you are better off opening new stock positions when folks are scared (stock prices climb that wall of worry) versus jumping in when stocks have just had a 30% increase.  Note, when this post started would have been a very good entry point into the stock market: everyone was concerned.  Take the opposite position and make a quick buck (of course, this tact only works on the short term – long term we continue to trend down in VALUE – irrespective of price),

    Just this week sold SPY, FXP, IAG, HL and have gone from overweight equities to overweight cash (and still overweight silver).  If these markets overshoot the 32% Fib lines on volume, I can re-deploy cash.

    Look at it this way. This year short term bond yields are up 50% and so is the S&P.  Will that continue forever? Anyway the next coupon auction isn’t for another couple weeks so we will watch together.   Now keeping my eye on 200DEMA support for the USD and Bond ETFs:


    Today’s collapse of the USD may provide the start of a new impulse wave down.


    If the powers that be really wanted to restore lasting market confidence, they could do so in one very simple move: Indict members of the previous administration responsible fore banking oversight.  Let’s face it, the current crop of criminals look like mere pikers compared to the last bunch (though I agree the term is but a fetus)

    You rob a 7-11 store and you get 2 years in jail.  Rob the nations savings account (and cheat on your taxes), and you get a cabinet post (Geitner).

    Are there really any more issues more elemental than that?


    5.8.09    Sold IAG @9.80, bought TLT

    Great action this week!

    IAG was overweight, and had to clean up the shares outstanding from previous acquisitions. That is I would rather re-establish a new position, hopefully at a lower point, with a fresh - and simple- cost basis.  Volume by price has also been deteriorating and stochastics are way overbought.


    5.8.09    The Government thinks its a great idea to put YOUR medical information in a database,

    and charge you for this 'service'.  Why would anybody disagree? What do YOU have to hide, criminal?




    "A hacker announced through an online ransom letter this week that he is now in possession of 8.3 million personal health records stolen from the Virginia Prescription Monitoring Program, an initiative that tracks prescription abuse for the Commonwealth. It is unclear if the program has a back-up database system."




    5.7.2009    Barrick pours first gold at Buzwagi Mine, Tanzania

    cash costs under US$335 per oz.

    not too shabby


    5.7.09    Kinross (KGC) and the Analysts Dart Game

    Dundee, UBS, BMO, GMP and Blackmont cut performance outlook.

    Cormack and RCB raise targets.  Does that mean RCB is bullish?  Their target is still below the other six analysts peers; does that mean they are more or less bullish than everyone else? More bullish be more wrong?


    a year and a day ago: what barbie said on KGC


    hope she sold within 30 days after her pump.


    surprised she only got 300 views (260 were mine).

    you guys would rather watch schiff again?

    5.5.09    Listened to Bernanke's Testimony Before congress This Morning

    Pathetic.  My favorite part was his description of the Obama Economic Recovery:

    - Improved Economy

    - Higher Unemployment

    - Difficulties Obtaining Credit

    - Flat and restrained housing values

    - Higher taxes, fees and licenses

    But hey - its a recovery!

    5.4.09    Barite

    A product with a good future, IMO.  The single mine in Georgia has a limited life.  Battle mountain has the largest minable source in the USCalifornia has VERY rich Barium Sulfate reserves in the Sierra Nevada between 2-5000 feet but most of it is on Forest Service land and locked up tight.

    Barite production into mining fluids has constant demand from all the oil and natgas well development going on worldwide.  If you see this continuing, barite is still necessary.  Bentonite is the substation, sort of.

    One problem with Barite production (sulphides/sufides) is electrical demand. 

    A second potential problem is USEPA predilection to declare al metals a hazardous substance.  Barium chloride and other salts especially fall into that category.

    Barite processing is fairly constant due to good energy, transportation, and processing infrastructure in N. Nv.  However, Nev is considering introducing a corporate and/or state sales tax. This could push processing from N. Nev to existing production facilities in Texas.

    5.3.09    The Reality of Global Cooling


    5.2.09    More Beautiful Austrian Coins released last Month


    and, just a couple weeks ago.


    but hey, our latest abortion of a coin has NOT ONLY the ugliest and most traitorous US President in history, BUT comes with a bonus replica of his LOG CABIN too!

    (look to the strength and beauty of a nations coinage, to see the strength and beauty of the nation)

    5.2.09    On buying Land or Real Estate in an IRA

    Someone asked about this issues.  This is one of those cases you might strongly consider professional advice.

    Here are my thoughts – nothing more.

    Purchase of RE is often for cash flow which is then offset by writing off expenses and depreciation

    However, when holding RE in an IRA:

    Drawback One: When you hold real estate within an IRA, you cannot claim deprecation.

    Drawback Two: You hold real estate with capital gain, and then you die. What happens if you die?  Then your spouse cannot use the capital gain rate, they must pay taxes on the step up in basis.

    Drawback Three: When selling a house with appreciation in an IRA, gains are taxed at ordinary income rates

    There may be a benefit to holding land in a beneficiary IRA instead.

    Objective: Use Roth to fund down payment on a real estate

    Issue One: What lender will loan to your IRA? You may need to pay in full, cash.

    Buying a house with an IRA requires non-recourse lending in order to sign note and deed of trust/mortgage.

    Lender takes collateral. If collaterals sells, but does not cover total of the loan, then the bank can come after you personally. With a recourse loan, the bank can only take the collateral.

    For land purchase, as with housing purchases using money in the IRA or 401, you need to set up the deal properly to not incur early or unauthorized withdrawal penalties.

    Issue Two: Unrelated Business Taxable Income.  When using leverage (debt financing) for a business property, including rental property, within an IRA, then the distributions of profit are at the business tax liability (capital gains is 15% but business tax is up to 35%). 

    Someone notes that raw land in an IRA could be rented/leased out.

    As an example, let’s say you want to purchase oil lease properties within an IRA.  This could create taxable events by the creation of an unrelated business taxable income down the road and force you to file the dreaded IRS Form CT-990T. That is, the IRA pays tax because when you buy lease on an oil well there could well be financing or other types of business activity and the IRA may consider this as a taxable event. So, instead of buying within an IRA, one strategy is:

    One alternate strategy is to use a HELOC and buy the real estate personally. Interest on HELOC is deductible.  This way you can write off depreciation, you can use capital gains, and roll over appreciation via step up in basis.

    A better solution may be to remove your money form the IRA via the 72T provision and then buy the property personally.

    Issue Three: Another potential drawback:

    You can purchase RE in an IRA, but if you use RE for non retirement purposes, the IRS will consider this a ‘self deal’ and may DISQUALIFY your ENTIRE IRA.  This is where you need to document you use of the land very carefully, as you already noted.  Who else but an expert can quantify this use?

    Another Example:

    Can you buy investment property such as a strip building in an industrial park where your business is one of the tenants; thus keeping the IRA RE transaction at an arms length from your personal interest? NO

    You are still making an investment in something that helps you personally (it’s YOUR company), even if only partially.


    Buying liens or trust deeds within an IRA. This approach makes more sense since you do not lose many of the RE benefits (deprecation etc.).  One potential issue here, the IRA must contain a fair amount of capital because the IRA itself could be forced to foreclose on a property.  The IRA custodian will have to take all actions on the property. You cannot conduct actions (clear the toilet, paint the exterior) yourself as it was your personal property.

    Purchase of leveraged RE (not cash only in full).

    Can you get a loan from your IRA for the down payment? Roll $ into a corporation (or LLC); 401k invests in company stock; and then the individual gets a loan from the corporation?

    Probably not: This is still self-dealing and therefore a Prohibited Transaction.

    Any time you use debt (get a loan) to purchase (debt-finance) RE in your IRA the IRS will treat this as unrelated debt finance profits or income which is taxable to the IRA first and always taxed personally when it comes out of the IRA.  That is, all profits attributed to the IRA will become taxable at personal income rates. 

    There is a workaround to purchase a house for cash from an IRA.  If the house in questions is for 100k, for example, the solution is to set up a second IRA and transfer the 100k money form the original IRA into the second IRA. The gains and profits made from the house will make the second IRA a prohibited transaction, but you will limit that damage to only the second IRA, not the first.

    Final Notes

    One thing I have noticed...

    Most of the money has now been lost in the stock market and the majority of wealth that people own now resides in IRA rollovers from prior jobs.  Hence, the telemarketers and wealth seminar promoters and wanna-be real estate gurus aggressively pitching deals at the seminars are targeting the money left in people’s IRAs.  Almost as aggressively as radio ads pitching holding gold in an IRA (har har - guffaw).

    5.1.09    MAY DAY MAY DAY

    Penny Dreadful – US Cent Debacle

    The US mint honors the spirit of Lincoln and removes the motto ‘In God We Trust” from the coin, just as Lincoln removed the Spirit from the union of the united states.

    The 1909 Lincoln cent designed by Brenner was actually the first cent with the Motto gracing the coin.

    Sure enough, just as the USA has debased the spiritual union of the citizenry comprising free states, the USA further debased the coinage.  The USA replaced the peoples belief in a bountiful creator, from whom all rights justly flow, with the USA CORPORATE entity – soulless by definition.  The state of our nation reflects this change in events.

    After this orgy of Government Glorification, the USA will likely discontinue the cent. 

    At one point the cent would buy a loaf of bread and there was such value in the denomination (almost a half-dollar size of near pure copper) that the mint also a coined a half-cent for many years.

    Now that the cent has lost over 99.3 percent of its value no sense continuing the charade. 

    The USA declares no value in the coinage commensurate with no value in the farcical union.

    5.1.09    Happy Law Day (US)

    And to think as little as 50 years ago the US president still paid lip service to our nation of laws!


    4.30.09    Spot On. The Plans Never Change - Just the Planners.




    4.30.09   Sold SPY at @ 88.10


    Reasons why:

    1. The rally this week is on declining volume;

    2. Declining, topped-out, money flow

    3. Declining, topped-out, Williams%

    4. Had been overweight in SPY


    Sold FXP since it was my SPY hedge.


    4.27.09    Solar Development in the Desert

    Vast areas in the Mojave Basin and Desert are managed by the Department of Interior - mostly the Bureau of Land Management but also the National Park Service. The NPS director in the Region, Jon Jarvis, is actively opposing use of water cooled solar technology and instead proposes that firms use air cooled technology, which requires an additional 10% land an additional capital investment. Something to keep in mind when doing your due diligence.

    You need land AND water permits, and not everything is as it appears...


    4.26.09    2009    Swine Flu Swindle

    Regrettably, I have neither read here nor anywhere else some VERY pertinent information.  Namely, the previous Swine Flu outbreak in the states.


    The year was 1976.  An outbreak in Fort Dix killed a couple soldiers. The Vaccine pushers had their way and forced Ford to act on his instincts and poison the citizenry.  The government solution – forced vaccination – sickened thousands.  Hundreds of individuals came down with Guillen-Barre Syndrome.  G-B syndrome causes some nasty situations, for instance, paralysis and death.


    Naturally, few people know of this event and are aware the government cure was literally worse than the disease.


    Right now ‘Swine Flu’ returns over 700,000 google hits.


    ‘1976 Swine Flu’ receives a lousy 41,000 hits and Guillen-Barre Syndrome receive a pitiful 15,700 hits.


    All this hysteria and nobody even mentions the situation regarding the previous event.


    Our self awareness looks ghastly, but shines when compared to our historical self knowledge.


    History shows once again, the government cure is worse than the disease.


    And no surprise; vaccine pushers are currently out in force…


    4.24.09            Here Comes the Flu

    and the mandatory vaccine...


    From what I have read, in almost all cases folks travelled through or lived in, Mexico City. WHY HAVE THEY NOT CANCELED FLIGHTS FROM MEXICO CITY TO THE USA???    


    Oh yeah, b.c. that would disrupt the bioterror models that they are running...


    4.23.09            Gold Did Well Today

    Also performed very well this week.  And for the month. Good for the year, too.  Performed really well last year and even better the year before that. Actually, been an outstanding investment for nine solid years now...

    4.21.09    Is This a Good Time to Buy Gold?

    (somebody asked, so here was my answer:)

    Yes and No and Maybe

     [This answer may seem a little long, but I have been writing about finances and gold since early 2000.  Every bit of it (except for a good portion of 2001 which I lost due to computer crash) is saved on my blog]:

    It is Always a good time to buy gold.  I do so every week. Of course I also tend to sell gold every week too.

     So then, I assume your question is really “Is now a good time to buy gold TO HOLD ON TO FOR A MODWERATE TO MEDIUM DURATION”.

     To answer that, it depends.

     It depends on three major factors:

    1. Risk Tolerance

    2. Financial Circumstances and Goals

    3. Fundamental and Technical Analysis of Investment

     Each major factor has multiple minor factors.  Every investment decision, IMO and according to most financial philosophy I follow depends on answering those three factors.

     1.  Risk Tolerance:

    Are you prepared to lose 50% on your gold? It could happen.

    Are you prepared to become a felon because you hold gold?

    That could also happen.  In fact it became a felony overnight in 1933 for Americans to own gold. That was the law of the land until 1973/4 when the USA last defaulted on our debt and Nixon took us off the gold standard.

     I imagine it will happen again, but differently, next time.

     Mostly, I think gold has about a 50% downside risk from here and about a 100% upside (over the next 2.5 years).  That is just my general opinion.

     2. Financial Circumstances and Goals

    This one is much more complicated.  If you have been asked to buy $100K on behalf of a relative, you approach may be different than if you were simply looking to buy some yourself for asset protection and portfolio diversification.


     If you are looking to buy over $50K worth I would suggest you consider scaling into positions.  If you are looking for personal gold, I would consider what standard investment diversification has promoted over the years – holding between 5% and 10% of your nest egg in hard metals (starting with 2% silver, 2% gold and 1% platinum).


     Personally, my asset percentage is higher than that, but not too much.  Mainly that is because I hold a lot of numismatic coins above and beyond those percentages.  I also have a number of gold, silver and other metal stocks.  Recently, I have been more bullish on silver, and especially platinum, over the short term than gold.  Coins and stocks are much more speculative than gold bullion, but are a lot of fun! [and my specialty].

     Also, my percentage of gold in the portfolio is much lower than it was 16 months ago.  I bought gold mostly in 1999-2001 at lifetime lows (when everyone made fun of me).  After the big run-up in 2006 and 2007 my gold positions were up about %400 percent (many of my gold stocks were up over %700 percent) and I began to take profits (and sell to the people that made fun of me in 2000).  In 2007 I thought real estate was undervalued and sold some gold to buy my house. 

     SO, It depends on YOUR situation.  Personally, if you have any business, installment, or consumer debt at a rate over 3% I would pay that off instead of investing in anything.  The credit cycle is at a critical juncture.  We could be entering a very NASTY point where both the business and credit cycles overlap and create an extended harmonic node to the downside.  During that period debt is deathly.

     Nevertheless, having some gold is a very prudent course of action.  Scale into positions, don’t overweight, don’t buy on margin.  One benefit of buying even just a couple small gold coins, and then buying more after paying off the debt, is that you will begin to see the allure that gold holds – and why that allure has held for the last 5,000 years.

     3. Technical and Fundamental

     This gets complicated but I will state the fundamental case for gold is fairly good, the technical case is a little weaker.


     Fundamentally, I believe we are still in moderate deflationary period and don’t see that ending for a while yet. When it does end, we may whipsaw dramatically into a very serious hyperinflation – only to untie the Gordian knot into a major deflationary collapse.

     There are many fundamental reasons to hold gold, and I say perhaps the most important is this: In a deflation the value of ALL assets go down (what you OWN is worth less, what you NEED to buy costs more).  However, gold will decline in value at a lesser rate compared to all other asset classes (except for possibly good farm production with water rights). 

    Here is the picture:

    Image and video hosting by TinyPic


    Near term (6 month) Gold price is actually pretty hard to read right now.  Here is a good thread on the topic from yesterday:


    “Cup and handle”, “Penant”, “Flag” “Double top” are all technical formations which forecast most probable future price action.  At this point the formations are quite indecisive and possibly forecast gold trading within a fairly narrow range, about $50 above or below a mean of $840.

    See here:


    This chart suggests to me that as long as gold does not go below $840 in the next week, it will likely raise to $880 by the middle of May.

    However, the gold seasonality is not good right now.  Gold generally rises between October through April and Falls in price during the summer. 

    Here is a good chart that shows this phenomena:


    So, after gold hits $880, I could see it falling quite a bit during the summer! How far? Well – my guess is back to between $710 and $750, more specifically $733. 

    Why do I say that?  Because my last call to buy gold was last November when gold was at $733 (that forms a resistance point).  See my blog and scroll to November.  Here is a representative post, for example:

    11.19.08    Notice how GLD held 733 again today, closing just over 734?

    The more times it holds there the stronger the support becomes.  Alternately, if the price plunges through that support, with heavy volume, the downside will be even further (maybe lower than 710, the next minor support or even 650/670, the next major support).  When the price went below 733 a few trading days ago it was on rather light volume, and thus it doesn’t trigger a sell. The move must be more than 3% below the support on intraday basis to cancel the support. Stops should be on a daily close basis.

    Unfortunately, the general market weakened quite a bit further today. The banking index is very technically bearish (see here for more on that:

    The real news today was not the posturing over the big 3 automakers –they’re already bankrupt. Rather, the new crux of the matter is will CitiCorp bring down the federal reserve. Citi is one of the nine banks the Fed must preserve at all costs – and they are in a freefall. Their last big move to open retail deposit windows in California was a huge failure. They are now suffering cash flow problems. If the Fed does save C, there should be a very nice and tradable rally in the BKK (banking index) and market in general.

    So, I thought gold was a much better buy last November when it was at $733 than here/now at $892, and publically stated such (that was the last time I suggested my friends and family buy large amounts). 

    $733 to $892: That is a %20 profit in less than five months, a per annum return of over 45%!  Lucky me. Most people are simply trying to not LOSE another 20% of their money this year. 

    Hope that explains why I am selling a little more than buying – but I already have my stash and am now taking a wee bit of profit and stocking up on some other VERY IMPORTANT STUFF.

    Another consideration is that gold is a POLITICAL metal.   If Israel strikes Iran, and Iran wins, using new technology – gold could double.  But that is not sustainable on either a fundamental or technical basis and over long periods of time the fundamentals always win out.  The fundamentals are much more tied to business and credit cycles and I can’t get into that here about those cycles.

    Further, another option I can see are some very negative situations playing out where gold may lose %50 or more on paper but only denominated in near worthless currency (US or otherwise) where real silver and metal trade for goods and services at very high valuations.

    America’s greatest living economist, Martin Armstrong, shows us going down from here (he actually nailed the date at 4.19.2009, one day before the 280 point Dow drop this week) until a low of summer 2011.

    He has been uncannily accurate:


    Bottom Line

    So, is now a good time to buy gold? Always a good time, just buy a little bit each time (the best amount is between $1,500 and $8,999 per purchase) but I started buying $100 at a time and did fine, b.c I bought systematically (and I got in at the bottom).  Just be prepared to lose up to 50%.  Of course, that %50 is just on paper. You still have an ounce of gold.

    I can see gold hitting $935 in May and then going back to $750 by Labor Day.  Maybe buy some now and then buy some more in August. 

    If you don’t have any precious metals, you might consider buying some silver first. That will give you exposure to the markets and gain some experience and confidence before spending larger sums on gold. (Physical gold is trading at a hefty premium right now, for obvious reasons – lots of people are waking up).

    Good luck.  If you decide to buy some gold, then you might ask: What is the best way to buy gold (or silver)?

    I have an answer to that, too! (And it starts with buy physical gold first before buying into gold ETF or mutual funds or options or mining stocks).

    CAVEAT: This is not investment advice; due you own due diligence; these are simply personal ruminations.

    4.19.09            Remember when??

    The press pilloried GM and Ford for sending their executives to Washington DC to appear before congress in Lear Jets/ Turned out that the Auto industry had 8 or 10 jets in sum.  The press was livid!

    Remember when the press pilloried the Federal Reserve for maintaining a FLEET of over 40 Lear jets 9and a 30 million dollar art collection held in private, and a curator to maintain it all…)

    Nope, me neither.


    4.18.09    CoinMine.com Blog Readability

    This site is primarily dedicated to outreach and education.  As such, I try to present complicated concepts and constructs in simple terms. This was the first time I actually backtested to make sure the site remains accessible and is easily read. I used this site to determine Flesch Reading Ease, among other metrics.  See the results here:




    4.17.09    Another Nevada Bank Fails: Great Basin Bank




    4.17.09    Just Opened up a Container of Food I stashed Away in 1999

    The container was a plastic cream of wheat/oatmeal style cardboard cylinder. I did not put in any desiccant with the food but I did duct tape the container lid.


    The nature burger mix looked pretty good although there was some evidence of wheat moth activity.

    The white rice and pinto beans looked edible although there was one small moth hole and neither bag was air tight any longer.

    The cashews had caramelized and no longer looked very yummy.


    Lessons learned:

    - Keep desiccant in the container

    - Use better storage containers (such as one and five gallon food grade plastic drums)

    - There was minor evidence of wheat moths but I don't think they made it past one generation or so.

    - Most the food looked edible... if I was hungry enough (I'm not).


    4.14.09    Obama Gave his 'Major Economy Speech'

    More like a major train wreck. A pack of lies wrapped in a sickenly sweet saccharin-poison package.  He actually had the gall to declare that he would no longer tolerate the natural market forces of boom and bust.  Obviously the man believes he alone has the power to centrally plan the worlds economy and guarantee health and happiness and prosperity for everyone.  He further went on to propose the carbon credit tax and noted how government intervention in health care would drive down prices for everyone. Yuk Yuk.


    Naturally, the markets tanked beginning with his first couple sentences.


    (Special Note: The muslim is so offended by the reference to Christ at the Christian (Jesuit) University, Georgetown, where he launched his ship of fools that he demanded the university cover over such reference to Christ.




    Like the guy has any chance giving a speech at a internationally recognized muslim university in the states with such a quality finance school...


    NOTE: Here's a comment on the story by a friend who graduated from Georgetown:

    Hmmm. He must be an A-Rab. Why speak at G'Town if you don't want to be associated with Jesus? Notwithstanding, they chose Gaston Hall which was originally a chapel. There are a huge number of other rooms that are larger and better suited for speech-making. Clinton used a porch with a large area of grass for viewers. Other international figures use other rooms. The only other speaker that I've seen using Gaston Hall was xxx xxxxx and he chose that room because he only wanted to address our class and wanted a room with less space so others wouldn't be able to come.


    I'm shocked that the Jesuits agreed to cover the inscription.

    4.12.09    How To Lose Money in a Bull Market


    Another beauty of suspending mark to market accounting is that rather than servicing actual debt and malinvestment, the trillions of digital reserve notes can directly bloat the book value of every company.

    Sure the markets can reach new highs, all the while losing value with each new plateau!


    4.12.09    The Gold Hill Hotel is For Sale

    Bastion of the old Ghost Town, Little Sister of Virginia City

    Witnessed my friends exchange vows there 16 years ago. Sweet little place:


    4.12.09    Will the Markets Reach new Highs?

    Sure they will!

    Another beauty of suspending mark to market accounting is that rather than servicing actual debt and malinvestment, the trillions of digital reserve notes can directly bloat the book value of every company.

    Sure the markets can reach new highs, all the while losing value with each new plateau!

    4.11.09    Increasing Independence: Thanks to Dear Wife

    We have a full salad coming from the garden: Spinach, three types of lettuce, broccoli and peas.


    4.11.09    Can't Fight the Fed? This guy is trying -against their proxy goldmansachs.


    Here is his site:


    Naturally the empire strikes back, employing the lowest of lawyers to stifle free speech, discussion, and

    financial education (hey, business in IPO and Mergers and Acquisitions is soft, give the poor leeches a break, right?)


    And of course the weak 'fourth estate' otherwise known as junkie shills reporters won't cover the story here in the states.  So, like so much else, you now need to travel outside the country to get an honest opinion:


    4.10.09    Ballard (BLDP)

    Wow, made some money since I was not watching the stock!

    Will sell half on Monday. Nice double=Free shares on remaining half.


    4.10.09    Couer D'  Alene (CDE)

    Wants me to vote in favor of their 10:1 reverser stock split.  I prefer they spend the time, effort and paper explaining their poor management performance.


    4.10.09    Just Got Back From Backpacking the Grand Canyon (the HARD trail)

    Five nights and six days.


    The trails kicked my ass, but I fulfilled my vision quest.


    3.30.09    Another Obama Admin Confesses to Tax Fraud


    Thirty years ago Nixon tried to convince the country that he was not a crook.


    Now the pols simply release press statements noting to what degree they are crooked.  All the administrators are crooks, some more so than others.




    3.23.09   Good Site for Long Term Coin Value Trends



    3.22.09    Does T. Geitner Have a Plan ‘B’?

     There is no plan B. Plan A has always been the goal - government control of all facets of your life. Geitner is not the architect, just another foot soldier. Future regulation is designed for one purpose only - a power grab. Existing regulation could have worked but instead: 1) The whistleblowers were ignored (e.g. multiple warnings to SEC over Madoff), 2) Congress financial oversight is both corrupt and inept (Dodd, Frank and others receiving kickbacks ("campaign contributions") from those companies they 'oversee'; and 3) Handcuffing and discrediting those implementing regulation (e.g. Spitzer).

    The free market system works, its the regulation which fails; both by design and execution.

    3.21.09    The Timmy and Sheila Show


    Shelia Bair, Chair of the FDIC, is one of the only individuals that Obama has kept from the previous administration.  Why, well because her organization is a key component of Timmy Gietners plan to completely gut the US financial system; and she's fully on board and playing ball. Of course it's now apparent the Treasury will not receive another installment of bailout money, so they'll use a bait and switch. Already earlier this month Sheila was asking congress for $500B.  Why? She knows Sheila need it for 1) Timmy's plan and 2) the massive coming banking collapse.




    Turns out the banks 'forgot' to pay into the insurance fund for the past 10 years - mostly because Dodd and Frank did everything in their power to make sure their friends at the banks could spend more money on CDS, SIVs, CMOs and anything else besides a risky bet like insurance. (Ooopsie, our bad!)




    She has been asking Congress for more bailout money since September, but so far to no avail.




    3.20.09    Kinross Gold (KGC) buys stake in Diamond Mine

    By taking over half share from Harry Winston, KCG gets a representative on their board and about 20% interest in the Diavik mine,, Northwest Terr., Canada. I see no immediate reason to doubt KGC's action.  Firstly, diamonds have fallen price considerably, why not add another tangible asset hedge.  Secondly, they simply stream cashflow while letting one of the worlds most experienced and efficient mining firms, RIO, do the mining.  Third, given the likelihood for increased taxes in general, and on NA mining in particular,


    (as posted two days ago):



     why not acquire a few tax write-offs against an increasing revenue stream?  Fourth, KGC's buys and takeover - while fairly well panned on this board and others - haves shown results FAR above the industry return.  Management has proven themselves IMHO by digesting a number of firms in a short time span, integrating those assets and productions into the KGC assemblage.  Now ensconced firmly in the world's mid tier production firms, KGC proves the adage better to play as a team then pin the hopes on one superstar/supermine.


    NOTE: I own KGC - it has been one of my better performers.

    NOTE: I held BGO when KGC took them over; BGO was also one of my better performers.  They hold my vote of confidence.


    Further, on B2Gold taking over Central Sun: GOOD!


    Now, I obviously haven't had the time to parse all the details, but on the face of it:


    I own(ed) Central Sun - what a misery pit of poor management decisions; one of my worst performers. Now the boys running the show are a few of the executives who built the aforementioned BEMA - acquiring a nice pastel of performers that looked too delicious to the their  competitors, eventually being ate up by Kinross.


    Look at the lineup put in the field so far by B2Gold.




    Not a bad little stable.  Fact is Columbia has been one of the more stable countries in the western hemisphere.  Too bad Nicaraugua let Ortega back in, but I haven't seen much impact on the mining industry. More appropriate is the fact that Central Sun has simply done a poor job at running the two mines in that country.  B2 gold added one veteran and an old performer, maybe the Orosi Mine has a few more good years left.  Sure, I was disappointed in the downgrade of proven and probably assets last quarter, as was the market. However, this may have led to an unwarranted negative perception over validity on increases in inferred resources for the company in general, and the Limon in particular.




    Yes, the attachment to Kupol could prove a sentimental throwback turning into the colossal albatross. However, Russia indicating that they will quadruple their gold reserves, on top of their announcement clamoring for a new international currency, doesn't particularly support the possibility they will quench operation of any semi or precious metals production in their nation.  At this point nationalization of the operations is always a concern - though frankly - nationalization of US mines is no longer out of the question either the way things have collapsed in the last three months.  Signing the old free agent is fraught with peril, will wait to see how it turns out. 


    At any rate, I like the name Central Sun better than B2...


    3.20.09    Frankly, I think ABX should have taken more heat for this one:




    Paying interest of 7% to JPM, MS, and C? What are they thinking, maybe hoping that all all three firms will simply become a subsidary of US GOVT, Inc. by 2019 and maybe the govt employees won't notice if they miss a few payments?


    3.20.09    mercury interviews Geitner


    Mercury: Thanks for your time Mr. Treasury Secretary, Tim Geitner. In your estimation how has this AIG bonus thing blown up so badly?
    Geitner: I am shocked, absolutely shocked that AIG is handing out hundreds of millions in bonuses to the corporate losers, the highest form of welfare scam possible.
    Mercury: But Tim, you devised and implemented the bailout program:
    Geitner: Yes, I am shocked, absolutely shocked that anyone read it. After all, nobody read the 1,000 page stimulus bill. When did those uppity citizens begin reading our scam plans again?
    Mercury: Well, perhaps Mr. Obama may have some sway over AIG, after all he received a bonus over $100,000 himself last year from AIG.
    Gietner: Oh no, Senator Dodd (D-CT) will make sure that never happens. Dodd was the only senator to receive more payola from AIG than Obama last year.
    Mercury: That’s reassuring. On another note, the US has gone after Switzerland and UBS rather aggressively of late; ostensibly for helping 'money laundering' and for assisting US investors from 'paying their fair share of US taxes'.  Howe (sic) does that comport with your (forced) divulged position that you personally cheated the US taxpayers for multiple years on end?


    Gietner: Well to be blunt, Switzerland's finance system is managed much more effectively than ours, we were just going for a couple cheap smear points...



    3.18.09    Agitators push to increase Nevada Mining Tax

    They wont stop.


    Part of their motivation is to replace the federal monies lost when Reid/Obama shut off capital flow to Yucca mountain.

    They actually dug a series of three test wells in Death Valley to monitor the radioactive material as it migrates west, below sea level.

    3.19.08    Someone Asked how did the USGovt change interest rates to exacerbate the Great Depression?

    Recessions and Depressions are natural cyclic events in a free market. All systems have rhythms.  Events become more extreme upon government intervention and mis-management.  In a decreasing interest rate environment the expected interest dividend on newly issued bonds would be lower than on existing bonds.  So, people stop buying newly issued bonds and instead buy existing bonds. The price of existing bonds increases, and their yield decreases. So existing bonds are more attractive whereas newly issued bonds are less attractive and therefore not purchased.  If folks are not purchasing bonds, the ability for local, state and federal government ability to raise money is impacted.

    Money came out of bonds did go into stocks. However, much of the money flowed into the stock market b.c. the banks encouraged such behavior by fueling speculation on very lax margin requirements. The banks themselves began to chase stock market gains, using their own money.  At the time there was no regulatory separation between commercial and investment banks. (This was corrected by the Glass Steagall act after the depression, repealed by Clinton/Rubin – which led to today's; collapse, in part).  Governmetn further supported such activity by artificially keeping rtes low, as you originally mentioned, and keeping folks in the stock market..

    At that point the federal reserve cut off liquidity in the market.  Individuals and banks bailed out of the market (driven by positions of Lehman, Goldman et. al).  Government further cut liquidity. At that point the race for liquid assets was on, everyone liquidated stock positions – starting margin calls. Folks had to pull savings out of the banks to pay off margin calls. Hence, the banks reserve dwindled to the point they had to close their doors in the middle of the bank runs.

    Only at that point did the Federal Reserve raise liquidity (and the interest rate, as you mention). By that time they forced the taxpayers to sell them USTs are 6%. The money then poured into Germany, rebuilding her manufacturing base supported by Prescott Bush and Henry Fort, etc.

    Government creates poor policy, which creates a poor market. The ensuring and inevitable market collapse now creates a ‘demand’ for government to ‘do something’. ) See the parallel to today?). So the government ‘does something’ (more poor policy) ensuring further market pain and government control over your life.

    same old same old.

    2.18.09    Went Long FXP today.

    3.18.09    The Fed announces it will buy $300 Billion in Treasury notes. 

    This is the turning point, the Fed now publicizes that they will begin to monetize the debt. The have no other choice in order to save their own gravy train.  All covered under the Federal Reserve Act and the Monetary Control Act.

    Fact is, the US Treasury has ran out of buyers (see the T-bill Yield almost hit 3% again today).  As the US, Brazil, Japan and China ‘sitmulate’ until the paper reaches to the sun and back, there are no large buyers of other’s debt.

    IF they lose control over the price of Treasury’s the housing and equity markets further tank in a big way.

    There are so many dead dollars out there, the logical home is the UST

    Dead Paper.

    Interestingly enough, yesterday Russia announced –right on cue- that they want a one-world currency.  Eventually they will get it. Supposedly tied to gold, but it will be the next largest swindle the world has ever seen.  The former Treasury Thief, Paulson , last week announced he was buying gold.  If you begin to compare the Price of Gold vs. the price of all other assets, you will begin to realize that the Fed (with the help of Russia) has also began to re-monetize precious metals. Would be interesting if the world begins to treat Platinum as a monetary metal. Look at what Stillwater mining did today (one of the worlds major platinum producers) up over 11%. Yes, the platinum is mined in Russia, and they have stockpile quite a bit of the stuff.

     3.5.09    Recession vs Depression

    Apples vs. Apples indeed. By the time this current financial maelstrom runs its course, our lexicon may expand to include another word rather than 'recession' vs 'depression'. 

    This series of cascading events that takes down a large percentage of the world's largest commercial and investment banks may likely provide an entirely new world bank in concept and fact, to replace the old – fallen (if not mortally wounded) system.  This type and magnitude of global economic adjustment may provide an entirely new lens through which future economist shall analyze fiscal theory and response. 

    An orange of entirely different stripes, for better or for worse…

    3.5.09    Went Long Another Dabble

    S&P 500


    3.3.09    President Obaba Changes his Tune

    Instead of complaining About the ills of our american corporation tax base ('evil', 'productive') and scaring folks into supporting his massive welfare program by shrieking out to those who still watch TV that we are 'on the precipice of disaster', now he found happy-talk.  Now he is stating that based on PE ratios, compared to previous lows in 1991 and 1929, its now a great time to begin buying the general equities.  Of course, Obama, the economic illiterate he is, actually called the P - in PE - Profit.  Those who actually took the time to appreciate and study the markets, rather than just harbor a vengeance for their destruction, realize the P is for PRICE.


    While price has started to look attractive, it has looked that way for a while (think of the same mantra as hears last October, last November, this January, last week, November 2007, etc). Unfortunately, these 'analysts' have forgotten the other side of the equation: Earnings.

    Fundamentally, why will GM, BAC, GE, or any of the other sickly large american corporations begin to earn more money next quarter or even next year? They won't, the fundamentals aren't yet there (the consumer is retreating back even further).

    Moreover, those earning statements in 1929 and 1991 didn't have the same 'pro rata' bias which propelled the Nasdaq and SP into bubblemania in the late 90's and early 00's.

    An even more systemic problem is the current finance 'leaders' search and push to do away with that pesky 'mark to market' requirement.


    2.24.09    General Equities Tank Again

    Barrack has the worst Dow performance of any President in their first month. The days he speaks are especially horrid in performance. You would think the guy would begin to choose hi swords a little more closely. Unless he really does'nt care what your 401k does


    2.22.09    "Oh, but I can't buy physical metal because storage is too costly and complicated."


    Never understood the reluctance to maintain physical metals. The storage objection stands out as a red herring IMO.

    One can maintain several hundred thousands of dollars of gold bullion - or millions in certified coins -in a shoebox. Amounts of silver that size are not necessary since silver coinage has always been for day-to-day mercantile transactions, not for larger dollar settlements. Hiding a shoebox is NOT an insurmountable task; rather an increasingly necessary skill in today's world.


    (Well, actually I DO understand. The losers blew all their money, failed to plan for a certain future, and generally screwed up most of their attempts at not being a festering sore. THAT'S why they can't do anything to protect their family.)


    2.22.09     You Ever Get the Feeling

    madoff and stanford were large front buyers of physical Au and Ag for another, larger, ponzie scheme?

    nah, me neither...


    2.21.09    How Things Work


    Embedded in the recent tax increase (your handlers refer to it as the 'stimulus bill') are provisions for smart power.  This means the power companies will be forced by the Wash. D.C. Leviathan to imbed sensors on your home utilities that measure use. Ostensibly this will allow 'savings' and 'energy efficiency'.  Of course it will do neither. In fact you will pay more to subsidize this 'smart provision.; you will pay more to support all the mandatory reporting required by the bureaucrats - none with any real experience, skill or expertise other than trying to run your life (they've already given up on running theirs). 


    Big Bureaucracy creates the problem so big bureaucracy can create the solution.  Big Bureaucracy then replicates itself -it's primary goal - by repeating that same system through all sectors.


    Obama and the congress criminals that pushed through the last Big Pork Bill designed in their a provisions for creating electronic databases and requiring that all your medical records be digitized (by the bureaucrats and their cronies), entered (by them and their cronies) into a dysfunctional database (controlled by them and their cronies) - with the stated purpose of 'efficiency' and savings'. Of course, those that vote for the criminals actually believe it, partially. We know, through documented case studies that the reverse will occur. The costs will go up (who pays for all that bureaucracy and dysfunction?) and the quality of service goes down.  That is always the case for any system designed, overseen, populated and managed (sic) by the bureaucratic govbots.


    Next provision buried in the Tax on You Grandchildren Decree:

    After decades of persistence Hillary finally gets her dream - driving the nails into the coffin on our once fine health care system." Destroying healthcare.  The pelosi manifesto requires that YOUR medical history become her business, that govbots placed and vetted by her (and paid by you) build the bureaucracy; build (sic) the dysfunctional database; populate said database with bad data; use the bad data to manage (form D.C) decisions on whether you deserve healthcare; what type of care you shall receive (from who, when and how -all decided remotely by the govbots) and of course- how much you get to pay for the 'service).


    For the privilege - you will also need to replicate the system for the REAL ID card (already passed into 'law' by the criminals).


    Of course, you won't receive ANY medical care unless you present such biometric REAL ID card.  Naturally the govbots will make the remote decision regarding should you receive any care at all.  Much of that decision will rest on whether or not you have voted the right way and paid off the right people - also tracked by the smart card.


    And yes, this will further drive up health care costs while driving down standard of car (not too mention absolutely destroy morale of those fine doctors and nurses actually qualified to make health care decisions - with YOUR input and concurrence.


    No REAL ID = no 'health care'

    No SMART card = no power to your house

    No carbon credit card = no Fuel for your car

    No GPS tracking your mileage (for taxes by the mile and Constant Surveillance), No No No, err um, I mean for increased highway efficiency and full security for your family and children) = no car for you.

    No Universal Flu vaccine = FEMA prison camp for you and your family.


    Hey, there's the change you wanted, eh! 


    Well, YOU can have it (course I gotta pay for it since there's no way you could do it on your own).


    I, however, am making alternate arrangements...


    2.21.09    Will Gold Currency Circulate again in the US

    The current regime running the USA will allow neither gold nor silver to circulate as currency. There is simply too much ability to manipulate the finance and banking systems using fiat and usury - especially now that the regime is calling the shots on what CEOs can get paid, who gets first dibs on loans, etc.

    When things get much worse, they will scrap the US dollar for a system of international digital credit. This will ostensibly be 'backed by gold', though specie will not trade. However, gold and silver are making a resurgence as trade in the black and gray markets



    2.20.09    Started Scaling into Ballard Systems

    I've been following this company since 1999. First time I've ever put any money there (a partial smigdgen, $1.09).


    Ballard: BLDP




    Their balance sheet is a mess.  Frankly, there's a 50/50 chance they won't be around in five years.  However, they are managing what they DO have better than their peers. And their EPS growth is pretty impressive. Since money will likely be flowing into this sector more so than others, and since their short term future projected performance is better than their sector peers, they have a slight chance on fundamentals.  Another factor is the control meme theme.  In the next 5 years the powers that be will assert more control over your life than in the last 50 years combined.  Those firms that produce control technology - especially for water and power systems- should outperform.  The performance will be akin to a shot of speedball or anabolic steroids; great fro several months but will kill you - or worse - long term.



    Mostly, I expect their short term technical situation is worthy of a minor wager.  They might be out of business in five years (or have a  breakthrough and succeed wildly) but they should outperform in the next 18 months. Not that doing better than your neighbor at this point is much of an honorable distinction.


    2.20.09    Home Sales in Northern California

    We track actual sales figures for Solano County, two counties west of Sacramento County. Our sales figure graphs are similar to recently published figure for Sacramento, that home sales are dominated by foreclosures.  However, I suspect Solano County is further along the foreclosure curve than Sacramento and now reflects a more mature market.

    There are owners who pulled their homes off the market at much higher prices, and would like to sell today if they weren't facing so much competition from foreclosure sales. We bought our house at a foreclosure auction at a much lower price than the 'comps'. Folks no longer look at these (foreclosure) sale prices as data outliers, but as the new short/medium term price point - even though purchase at auction carries more risk to the buyer.

    Our county sales reflect not so much the banks - but the local RE investors, first time homebuyers and Asian investors looking to park capital in the US, but outside the Treasury bills.



    2.19.09    The Housing Bill

    The public at large will likely focus not on the positives in the policy, but instead on the negative provisions in the policy. Fact is, a large percentage of folks will simply not accept the fact that they continue to make their payments, despite potential hardships on their end – whereas the government helps make payments of their less responsible neighbor.

    No vague argument that “keeping the Joneses solvent will support the values of the entire neighborhood” because the responsible homeowners already realize this – which is why THEIR sweat equity is at risk.

    The responsible homeowner also understands, at least intuitively, that the bailed out slacker/irresponsible neighbor who couldn’t afford that add on master suite and pool will STILL get to keep the pool – at a subsidized mortgage rate.

    Yes actually, I do proffer a solution. Namely: the mortgage companies are mostly underwater already and subsidized by the ‘taxpayer’ (nyet –CITIZEN and responsible neighbor). The good neighbor need to see some tangible benefit from this mess, subsidizing the bad banks, the bad mortgage lenders, and the bad neighbor. That is the social solution.

    The technical solution is the citizenry –those supporting the bad banks – demand the banks accept a lower rate of return on the good mortgage and lower EVERYONE’s mortgage rate into the 4.25 range (no points, no costs).

    Yes that will extend the period that it will take the bad mortgage bank to pay back the good neighbor/citizen – but the good neighbor is accepting early partial payment immediately through lower mortgage payment and increased monthly household cashflow.


    Just because something is unpopular (allowing bad debt written off through corporate bankruptcy) doesn't mean it won't work. Even though the political will does not favor mass corporate bankruptcy, no government can prevent certain cases. General Motors is a prime example. They are to present a 'negotiated re-structuring' plan to congress tomorrow. That is just an euphemism for bankruptcy.

    We can either swallow the bitter medicine now (bankruptcies) or live on ‘quality of life medicine’ (massive monetary inflation) for the foreseeable – and unforeseeable – future. Or, collapse when the medical regimen (‘stimulus’/inflation fails.)

    Fact is the government will try to prevent brand name corporate marquee bankruptcies under the header of ‘saving jobs’, but they will let the common fools restructure mortgages (principal forgiveness= YOU pick up the tab) for political expediency.


    This administration will do its utmost to replace market economics with central planning.  Our country will undergo ridicule and deteriorate to dysfunction not seen on this continent before.  Plan accordingly.


    2.18.09    Change: The New America

    The poor uneducated minorities who can't keep a job, read or understand a contract get (and probably lied on the forms they did understand) bailed out by those regular working folks that produce.


    Hope  you got what you wanted. One thing for sure, it won't last long.


    One trend continues unabated - you can always count on the democrats to flame class warfare and racial tensions. (According to the Attorney General YOU - the one paying the bills for your neighbors -are the coward!).  The republicans set the table full of poison and their counterparts force everyone to drink up the koolaid.


    And if history is any guide, and it is, the democrats will use the angst provided by the class warfare and racial tensions to bring back the draft.


    They've already gone on the offensive in the proposed 'housing bill'.


    Precious few in this country are able to determine the difference between an asset and a liability, debt and wealth, and a federal reserve note (debt) from a dollar (specie).

    Given this state of affairs, is it any wonder that some will postulate the renters are 'wealthier' than the 'owners'. A true perversity. The section 8 HUD renters are so wealthy - such a productive slice of society - that they 'deserve' the new tax breaks while the rich/poor landlords deserve yet another tax increase. Has the pendulum swung to far yet?

    Regrettably, no...


    2.16.08    The 'stimulus' Bill Isn't Signed Yet?

    I thought it was 'an emergency', Mr. Obama;

    I thought we were ' one the precipice', like you said multiple times;

    I thought congress had to 'do something right now', like you wanted.


    Why, this bill was so important that Speaker Pelosi didn't have time to even post on the internet so the public could review for 48 hours prior to signature, like she promised. (yeah, I remember she promised to get us out of Iraq, snicker..)


    But, it wasn't so important that members of congress only had the bill (1,000 + pages) for two hours before 'voting' on the largest expenditure in our nations history.


    and it certainly wasn't important enough to sign today - after all you had to play basketball and get your haircut!


    and by coincidence, TOMORROW is the day you are scheduled to have a big photo-op in front of the Rocky Mountains with your badass pen signing your children into 100 more years of debt.  Good luck explaining that one to your grandchildren. 


    2.16.09    The Mass Media push the Lie that Lincoln Was our Greatest President

    They hardly ever mention (likely don't know) that the criminal suspended habeas corpus and arrested members of the press corps who disagreed with his actions.


    Washington, Adams, Jackson, Clay, Kennedy, Eisenhower: All much better presidents.


    2.15.09    The New York Times editorial suggesting our currency should again be backed by Gold

    Since someone asked…

    The current regime running the USA will allow neither gold nor silver to circulate as currency.  There is simply too much ability to manipulate the finance and banking systems using fiat and usury - especially now that the regime is calling the shots on what CEOs can get paid, who gets first dibs on loans, etc.

    When things get much worse, they will scrap the US dollar for a system of international digital credit. This will ostensibly be 'backed by gold', though specie will not trade.  However, gold and silver are making a resurgence as trade in the black and gray markets.

    2.15.09    Judge Sends Children to Jail for Kickbacks

    And people are shocked, just socked! (yea right)




    Too bad the story doesn't explain that if the judge is getting a kickback, then that kickback is just a portion of what the private jail makes on the kid's incarceration. What, you mean you didn't realize that the prisons made money off the folks in jail! (yea right).


    Why else do you think the US has the highest incarceration rate of any country on the planet? (look it up).


    When you start looking at things through that lense you will begin to realize why  the 'war on drugs' makes so much sense - for the prison profiteers!


    land of the free...


    2.13.09    Debt for Your Children, For Decades

    In an exceedingly partisan bill, the house passes the Tax Act of 2009 - a bill approaching One Trillion USD.  Full of poison pills and payola payoff, and they haven’t even read what they voted on.  Not surprisingly, not once does the word ‘stimulus’ appear in either the title or the body text.


    Answer this for yourself: Did your representative vote based on your interests, or did they take blind marching orders from another master?




    One of my favorite provisions is the favorable hiring provisions (set asides) for ‘disconnected youth’.  In other words poor, illiterate, minority welfare recipients will be hired by government programs at the expense of those who actually cared enough to better themselves through drive, education, and learning.  


    You voted for it – you get what you deserve…


    Penultimately, this bill will drive another nail into the coffin confining American ingenuity and business.


    Corruption present al all levels of governmental management and regulation will no allow speculative positions to fully deleverage or unwind completely. An organic depression is natural to both the credit and economic cycles.


    However, the populace has heretofore supported shifting the deleveraging to other pools (TBills), clients (asia) and future generations. This compliant acceptance allows the continuation of such policy - indefinitely (or until public acceptance changes).


    The tax act will, naturally, stimulate the K street lobbyists and kingmakers who wrote the bill, in some cases months and years before the current ‘crisis’.  To bad they couldn’t call the bill:

    American Recovery and Reinvestment Tax Act of 2009, Part II.


    The puppets in congress and the white house have already declared failure on the bill they rammed down our throats last year, against public opinion of 9:1 against the act, passed last fall. The president himself stated the bill failed, that the country was on the verge of disaster, and the only solution was more of the failed policies which put us where we are at: more debt and mal-distribution of equity.


    The uneducated will parrot whatever they hear on TV as the ‘stimulus bill’.  The entire effort wholly embraces the tired beliefs of John Maynard Keynes.  During his time on earth he pushed three major tenets: 1) The American citizenry were essentially stupid and unable to manage their affairs;  2) His homosexual activism pushed that his world view, homosexuality, was superior over heterosexuality; and 3), The government could manage your finances, family, religion and life better than you could.  Those supporting the Tax Act of 2009 now ratify his worldview, admitting they cannot manage their own affairs and instead surrender their liberty and pursuit of happiness to the rented congress people.


    Regretfully, they cannot recognize that their surrender also provides consent to another reach of big government into the business and pocketbooks of producing Americans – and especially those of their children and grandchildren.  By and large those holding the Keynes view despise themselves and their self-hatred prevents acts of procreation and teaching their progeny, or even the neighborhood kids, the wonderful values that once built our nation.


    The "Trade and Globalization Adjustment Assistance Act of 2009" also provides quite an entertaining read.


    Especially ridiculous is the modifications to the Trade Act of 1974, providing that anyone who gives false information to the Secretary of State is subject to fines and imprisonment. 


    Now ask yourself this, how many people responsible for the crash of the US banking and housing industries have already been indicted, much less imprisoned?


    Answer: Zero.


    Too bad the Act wasn't modified so that when the proposed Secretary of Treasury cheats on his income tax he is given jail time, not a raise and promotion to oversee the Treasury and IRS.



    this lovely little virus forces the states to develop database and reporting techniques to feed state date into the government database on YOU; subject to withholding more money form the sky into state coffers.


    This is one of the provisions that has held up California from passing a state budget. they want to see exactly what is in th act before passing out the 'freebies' to their friends and sponsors.




    2.11.09    Interesting

    I am surprised estrogen trades on the black market at only about $15 per c.c.

    seems cheap to me, maybe b.c. i don't use it.

    buy hey, nobody's offered!

    do they mix hormone cocktails at menopause/man-o-pause parties?

    2.11.09    The bankers claim Mea Culpa

    We’re sorry we destroyed the banking system, please give us 2$Trillion more.

    And you now the sympathizers and collaborators in Congress will do just that. They are on the same side, and against YOU.

    Meanwhile, the bankers have not yet explained where the first $350 Billion went, which was supposed to go to TARP.  The reality is:

    1. None of it went to TARP.

    2. Hundreds of millions went into bonuses. This much is certain.

    3. The bankers have refused to provide specifics on where the $350 billion went.

    4. Bloomberg filed a Freedom of Information Act (FOIA) request requesting the Federal Reserve and the Treasury Department explain where the money went. Both parties refused to provide an answer and thus Bloomberg filed lawsuit to overturn given reason for FOIA exemption.

    5. The hard facts are that the bankers will keep the $350 Billion in their bank accounts without lending out the majority.

    6. Congress will give the Bankers even more of YOUR money; indebting your children for generations.

    7. The middle class goes broke; loses their jobs, homes cars jewelry and other assets; claim bankruptcy and surrender what had been the family nest egg in exchange for serfdom to the banker elite. 


    Only THEN will the bankers spend the money, and buy YOUR assets at pennies on the dollar.


    2.11.09    As a point of fact, I am beginning to look upon the bankers

    with some amount of disfavor.

    Perhaps I will again turn my adoration to the baseball players:

    Barry Bonds (Roids, perjury),

    Sammy Sosa (Roids, corked bat)

    A-Rod (Roids, madonna, perjury)

    Alomar (assault with Aids, perjury)

    You know, honest heroes a guy can look up to...

    2.9.09    Myths of the Great Depression

    A great read:




    2.9.09    Investing in the Water Sector - a Suggested Approach for Beginning Analysts


    For about $500 you can attend an American Water Works Association conference (no, I am not currently a member nor pumping the org). During that 3 day conference you can visit the distributors who set up booths and attend various educational tracks. A cheap, efficient, compact way to absorb information that the US water industry develops and become familiar with the corporate and government players.

    I attend the California/Reno section, since this is the area of the US with the largest water quantity problems, as shown in the maps you linked in our article. Welcome to the water world, an endless font of knowledge and curiosity supporting all life on the planet.

    And for those who start out buy picking individual companies in the sector: Right Bar, Wrong Drink.


    Why not start out with a general ETF (PHO) and THEN start making individual picks after you learn the sector. Furthermore, lots of folks skip the testing phase and go straight to filtering, substitution (ala bottled water) or other water treatment based on analytical results from their neighbors.

    Often times one household will sample their well but the whole neighborhood will buy into individual treatment solutions.

    Note: I am currently long PHO and various other water sector and geothermal companies.


    2.8.09    Another Scam, this on Caused by Citibank


    Citibank (the ticker 'C'), one of the largest bank and financial groups in the US crashes.  This ruined company was built on a faulty premise and executed in an even worse manner.  The head bankers try to infest and corrode whatever they can touch.  Since the bailout isn't enough (do those ever work in YOUR family?), C now grabs at the only performing assets they have: their customers with good credit and moderate revolving credit.


    I've had a citicards visa since 1991.  Last week C sent out a mailer. This mailer states that a 'vendor' may have compromised my personal information (either someone hired by C or directed by C) and as such I am to discard my old account (same account for almost 18 years) and open a new account.  The mailer is NOT accompanied by the change in conditions statement that was mailed out to hundreds of thousands last month. Many factors and facets of billing, fees, and rates were changed to run even further against the card users (C only paying customers).  This is all documented with first hand accounts here:




    Back to the mailer: It has better font and a more experienced spell checker than the other scams I typically receive. The credit card looks a lot like my last one 0 just a new account. The insert warns of ill-specified "fraud", identity intrusion, and other bank-induced ills.


    Basically I have reason to believe that C did send this trash out, since ALL of their other income streams other than fraud, waste and abuse have dried up.


    This link is from a guy who got the same letter I did:




    No doubt this charade was the parting gift to C management from from the departing chairman, Rubin.  Yes, this same Rubin who screwed thousands while with Goldman Sachs and then millions of working people as Sec. Treasury under Clinton.  This guy rubined C-bank, just as he attempted with the rest of the US economy in the 1990s.


    He finally tastes he success he desired.


    And yes, much of these shenanigans were promoted by the Banking Act of 2005 ram-rodded through by your favorite (then) senator: Biden.  He did well and his masters favored his deeds with a nice promotion.

    In October C was still trading over 20$. Last week was trading under 4$ - even after rising almost 11% on Friday!. Bank of Ameria (BAC), mentioned here as in trouble and a possible short in the high $20s, hit a low of $3.77 last week. One way or another you will end up paying for that one too...


    2.7.09    Relative Popularity of Coins, Currency and Paper Collectibles


    Our blog covering coins and paper collectibles (ephemera, currency, etc.) began in 2000.  At the time, we wrote that an increasing collector base in bullion, coins and paper collectible (commensurate with release of the state quarter issues and an increasingly difficult investment environment) would encourage the hobby, grow the collector base and increase prices and the overall knowledge base.  Indeed, this has obviously been the case.


    Tias.com has done a very good job over the past few years tracking buys through their collectible dealer network on-line.  As published last week...

    1) China & Dinnerware - Up from #2 in 2007
    2) Glass - Up from # 3 in 2007
    3) Jewelry - Up from #5 in 2007
    4) Coins & Currency - Down from #1 in 2007
    5) Paper & Ephemera - Up from #7 in 2007
    6) Holiday & Seasonal - No movement
    7) Miscellaneous - Up from #11 in 2007
    8) Advertising - Down from #4 in 2007
    9) Kitchen Collectibles - Up from #10 in 2007
    10) Vintage Sewing - Down from #8 in 2007
    11) Porcelain & Pottery - Up from #14 in 2007
    12) Comics - Not listed in 2007
    13) Toys - No movement
    14) Resources & Supplies - Down from #9 in 2007
    15) Vintage Clothing - Down from #12 in 2007
    16) Books - No movement
    17) Figurines - Down from #15 in 2007
    18) Dolls - Down from #17 in 2007
    19) Memorabilia - Up from #20 in 2007
    20) Textiles - Down from #19 in 2007


    ... they show that ephemera was listed as number 5 in terms of numbers of items shown. Note that ephemera did not even make th  list in 2006, entered the top 10 at number 7 in 2007 and last year moved up to number 5. Pretty impressive, indeed.  




    Coins and currency have slowed down, falling from number one last year to number 4 this year.  Remember though, coins and currency were not even in the list until 2005.


    Most importantly, as you read into the data a little further, you learn that coins, currency, ephemera have drastically increased in numbers of transactions, but still do not rank in the top ten for dollar volume.  Another way of looking at this is that while collector interest has dramatically upturned, the market capitalization for these sectors/hobbies is still extremely small.


    Will this change over time, either up or down?


    Time will tell. We believe the answer is yes and up.


    This weekend I read coin show reports posted on coin chat board; two from Long Beach and two local shows. All four reported relatively strong activity – especially compared to some of the overall fear of the coin market correction and against a backdrop of lowered expectations.

    On the face, I interpret these reports as supporting my thesis – based on the data above - that the low-end to mid-level coin markets still show strength. (I am careful to ensure I don’t only see selective or self-reinforcing information.)

    Many of the collectors that entered via the quarters circa 2000 have stuck around and are broadening their horizons. Additionally, as other posters have recently opined, there are many number of middle income folks who are beginning to see bullion – especially fractional -as very prudent investments against the current and expected economic backdrop. Coins may perform as an extension of this activity.

    So, where speculative excess in coins (investors) have often marked a top – the investment now is from a larger brush of society – not just those hopping onto hot money.

    The extremely high end markets - be they homes, cars or coins - will still function mostly as they always have since the uber wealthy will always have money. It’s the moderate high-end coins that may well suffer going forward as this demographic feels the largest pinch.

    Though overall, the rising tide driven by sheer numbers of folks worldwide – with easy access to instantaneous information vie the web – will slowly lift the watermark demand for coins and bullion to new highs, slowly, over a longer time period.

    For those familiar with e-waves, the strong coin market of 2000-2007 may have been a primary (impulse) Wave I. We entered corrective Wave II last year, with Wave III yet to commence (to the upside).

    2.6.09    Went to my local B&M coin dealer today. He reports:
    1. Locals getting a little desperate. (No surprise)
    2. He was selling 1/10 oz gold at $130. He stated that his upline/wholesale is vacuuming up all fractional bullion pieces, and its all going overseas. Demand is very heavy.
    3. With my meager purchase he double checked all $50 dollar bills very carefully - been getting a lot of bad ones in the shop.

    so it goes...


    2.6.09    The Change they Voted For

    Worst pos-election performance of the US equities market in over 100 years.




    Just as well, helps support Obama's case that unless Congress pass is 1Trillion dollar pork package the country will suffer an even steeper descent into the financial abyss. So much for Hope, push the fear Barry! What took you so long, its been almost two weeks!


    2.5.09    Another Day in the New Administration,

    Another nominee admitting to be a chronic fraud, tax cheat, and parasite on the working people of this nation.


    2.4.09    California DMV database alert

    not good. see first article; distribute widely.



    2.4.09    Meanwhile, back at the mine (CoinMine, that is)

    Our sales are really picking up and we thank all of your for your support!


    2.3.09    Woops, now three of the last three Obama nominations

    are self-admitted tax cheats.  Two of them dropping out include thief Nancy Killefer, formerly managing the IRS and Daschle.  Killefer was actually going to be in charge of 'government accountability'.  Har! how's that for an oxymoron. Ho hum there's change you can believe in - two fraudsters actually bowing out in disgrace unlike Geitner. Of course, if you are going to run the Treasury department you may as well admit you are a tax chat, thief and dishonorable individual. Nobody of any honor would do the job justice.


    Let Daschle the Disgrace hang with his own words as spoken in 1998:

    “Tax cheaters cheat us all, and the [IRS] should enforce our laws to the letter.”


    Good riddance hypocrite. You'll get the footnote you deserve.


    2.2.09    President of Minefinders Interview Yesterday

    According to Mark Bailey, they're trying to get their share price up so they no longer look like a takeover target.  They bought $1Million dollars in tires last quarter, on sale, to last them through the year. More standard miner president blurbettes proffered.



    Am currently not in Minefinders, may enter on the next pullback...


    2.2.09    Harry Dent Interview Yesterday


    - Expects a rally in US Equities to @ 11,000 Dow.
    Says sell into this rally.  Next wave down to commence in the fall. He sees the same targets as many, Dow 3,800 -5,000.

    - Recommends going to cash, asian equities, metals.

    - Go longer term into Asia and India; Mid-term into Japan, Korea. Europe to fare worse than US.

    - Thinks housing has another %30-50 to fall.

    Pretty standard stuff...


    2.2.09    Only fitting, the next department head nomination of Obama's cabinet

    Is a tax fraud and cheat; just like the last nomination. The most corrupt administration in our nation's history keeps up ii's momentum - elevating cheats, frauds and incompetents to Grand Wizards of the Thieves Guild.


    1.30.09    Google Claims Every Other Web Site Except Their Own will Give You a Virus

    What a great viral marketing strategy! Wish I thought of that.  Meanwhile, can imagine Steve Ballmer in front of the 3,000 MSFT employees he must lay off. What will he say?


    "Sorry folks, we bet the farm on Live.com and the cash back promotion which paid $1,000 to half the folks using ebay to move around plastic gift cards and gold one-ouncers.  Well, our strategy failed and we have to lay you off. We should have just save the money and claimed every other web site and software product on the planet will give you a virus. Its probably true anyway. Instead, well, Google thought of it first. Bummer. Last one out don't forget to turn out the lights."

    1.29.09    Bill would make cities ask for state approval before Chapter 9 filing

     They see the snowball growing in size and velocity, ready to roll over any one who stands up against perpetual municipal debt to the debt pushers.



    1.29.09    Obama Passes his First Legislation

    and lashes out against american business.


    The markets smell "Our Great Nationalizer" and the equities plummet.


    His first piece of legislation, and those other hatchet jobs sure to follow in short fashion, will drive more jobs offshore than all the 'stimulus' he is trying to shovel into the growing fires of desperation.


    Ebay smells the singed hair and releases this warning message to all small entrepreneurs and stay at home moms who exhibit the hubris in trying to keep their families afloat:


    "Protect your business--get involved in eBay's Citizen Action Network


    2009 is shaping up to be a historic year in Washington, DC and state capitals around America. We face the most challenging economy in decades, a new President, and strong majorities in Congress looking to take bold action. Some of the biggest companies in America are lobbying Congress to make their interests known. And make no mistake, not all of their interests are aligned with those of Internet entrepreneurs like you.

    Here are three issues you need to be aware of:

    * Remote sales taxes
    "Stolen Goods" legislation

    * Price fixing"


    1.29.09    Doesn't Matter Who Lost Money with Madoff

    As long as it wasn't the establishment boyz with inside information.  Hey, they were too busy pulling money out of other peopes's scams to avoid running their own banks into the ground.




    1.27.09    CIVC acquired Goldine International




    So what do you think, will Joe Battaglia get a raise?


    Sign of a short term top?


    1.27.09    The real reason we will be shifting troops from Iraq to Afghanistan

    Now that we’ve supplied oil in Iraq, we need to re-establish the opium routes that the Taliban have stopped.  Opium and Heroin that our government is sponsoring and distributing out of the region has been supporting our banking system, at least according to the UN chief who studies such things:


    But bankers are such liars. The reality is even more grotesque…

    1.27.09    On Grading Paper Currency+

    If you want top dollar you need the top provenance.  PMG is known as inconsistent; PCGS and even some older CGA carry higher premium. CGA has graded 10x the number of notes that PCGS has.  PMG is the newcomer.  The whole market is in flux b.c. of the CGA lawsuit and some of the quality issues there of late.  CGA has slabbed some of the nicest notes, but has also put a lot of ‘processed paper’ in the tomb as well.

    So, right now you need the grade, and the top grading firm which is mostly set by provenance – who owned the note before you.  Folks like to buy a note that someone else before them, hopefully someone already know in the collecting community, thought was a nice piece. PCGS has been able to asset paper grading market dominance in large part b.c.  they can buy a reputation since their coin certification unit is top in the sector.  In other words, try to buy within a provenance or at least make sure you will get the ‘exceptional paper’ connotation.  Also, this is the perfect time to market your own notes with or without the slab, since the TPGs have made for an uncertain market. 


    1.25.09    Nice move for Gold on Friday on the Weekly Chart

     - should - carry us into March.


    1.25.09    Will the madoff 'vicitms'

    be allowed to collect from a SEC negligence lawsuit, or will the stimulus bill 'make them whole'?


    1.23.09    Ryan (Wi) states he will vote against TARP II.

    I emailed Paul Ryan myself at sunrise of pseudoTARP1.  couldn't get through at first since my zip code isn't within his fiefdom - the nerve of me, unwashed, demanding representation.  Thankfully I relied upon sophisticated algoreythm and when I punched in my address as 1000 main street, Madison (or some WI city) I was able to circumvent his shields and stealthily deliver my message. Hey, at least he replied stating he understood my concern before he attempted screwing program 1.0. 

    1.24.09    Many folks made 2009 Predictions but missed One Sure Thing

    We are due for a large casualty gun massacre. Whether a loner theory or columbine redux uncertain. However, it has to be bloody - w/ enough easy pictures to be press-ready. Why?

    The bill to require imprinted numbers on all ammunition needs a 'fist bump' to gain a little momentum in order to pass this year!


    1.24.09    Today the Dow:Gold Ratio is 9:1

    When the bear market started in w00 the Ration was 43:1. We are on our way to 1:1.  Just a matter of time. The tricky part is knowing if the two reach parity at $1,000 or $10,000.



    1.22.09    Egad, the earnings reports coming out



    1.21.09    Miners and the Indians

    Judge decides not to decide on the Barrick Mount Tenabo project

    This one actually is a big deal.

    Ability to mine determines Nevada's future, not the latest housing boom resulting from the mining fortunes nor whatever the Nevada legislature produces in any given month nor the vacillating trends on the Vegas strip.


    1.21.09   The future past of Nevada: Mining, Water and Politics

    Gold, Silver and Copper: The Financial Metals Triumvirate

    Gold, the truest financial matter - is down just 22% from it's 2008 high, after quadrupling in price in just over six years.

    However, Silver and Copper are down roughly over 60% each from their highs.

    Eight Year High Grade Copper Futures Chart


    Five-year chart of Quadra, operator of the Robinson Mine in Ely, Nv - one of the largest copper mines extant or previous.


    The miners make new highs and the senators reach new lows.

    Quadra reaches copper production record:


    Nevada epitomizes capitalism and the cycles of boom and bust

    During the good times things are really good, and then in the bad times, everyone packs up and leaves.

    Nevada has continuously produced senators of influence and power not representative of the states small population; one of the side benefits of producing the nations money (gold and silver).

    Senators such as:

    Stewart - Leading mining lawyer; author of the 15th amendment to the US constitution; declined a nomination offer by president Grant to the US Supreme Court. 

    Fair - Virginia City mining magnate and San Francisco developer

    Nixon - Another mining magnate

    Pittman - Senate President pro tempore and author of 1918 Pittman Act and Pittman-Robertson Wildlife Restoration Act of 1937, founder of Chevy Chase, MD.

    Jones - Founder of Santa Monica, Ca.

    John P. Jones (1829-1912) California and Nevada Gold Miner and Tycoon, U.S. Senator, and founder of Santa Monica, California. In total:

    Born in Wales, Jones immigrated to the U.S. as a child, settling in Cleveland, Ohio. Following the lure of gold, he and his brothers moved to California in late 1849 and engaged in gold mining for the next 10 years. While there, he also farmed and served as county sheriff of Trinity County. In 1861, he married the daughter of Judge Thomas Conger of Sacramento, who was also a California state senator. Jones too became a member of the Calif. Senate in 1863. In 1868 he moved to Gold Hill, Nevada and served as superintendent and part owner of the Crown Point mine, one of the richest mines of the Comstock Lode (the Comstock Lode was the first major U.S. deposit of silver ore, discovered in what is now Virginia City, Nevada). He served as U.S. senator for Nevada from 1873-1903, where he was a champion of Free Silver.

    While in the Senate, he was chairman of the Senate Committee on Auditing the Contingent Expenses, and chairman of the committee on epidemic diseases. He also represented the interests of the silver miner of the Comstock Lode, the largest silver mine in U.S. History. The U.S. twenty-cent piece was created at his urging in the mid 1870s. The coin was invented as a tactic for increasing U.S. silver exports by matching it to the French franc, which was about 20 cents at the time. He is also largely credited with founding the city of Santa Monica. He bought a large tract of land in the area and starting developing and selling lots in 1875. The city was incorporated in 1886. After his Senate years, he moved back to Santa Monica to his mansion “Miramar” which is now the Marimar Hotel.

    Born at ‘The Hay,’ Herefordshire, England, January 27, 1829; immigrated the same year to the United States with his parents, who settled in the northern part of Ohio; attended the public schools in Cleveland, Ohio;

    Moved to California and engaged in mining and farming in Trinity County; Sheriff of the county; member, State senate 1863-1867;Moved to Gold Hill, Nev., in 1868; engaged in mining;

    Elected as a Republican to the United States Senate in 1873; reelected in 1879, 1885, 1891, and 1897 and served from March 4, 1873, to March 3, 1903; declined to be a candidate for reelection; chairman, Committee to Audit and Control the Contingent Expenses (Forty-fourth and Forty-fifth Congresses, and Forty-seventh through Fifty-second Congresses), Committee on Epidemic Diseases (Fifty-third through Fifty-seventh Congresses); resumed his former business activities; retired to his home in Santa Monica, Calif.; died in Los Angeles, Calif., November 27, 1912; interment in Laurel Hill Cemetery, San Francisco, Calif.; remains removed and reinterred in unknown location.

    Newlands - Author of Newlands Act which formed irrigation districts in the western states

    McCarran - Chair Senate Judicial Committee, major anti-communist activist in 1950's

    Laxalt - Close confidante and peer of Ronald Reagan

    Reid - Current Senate Majority Leader

    Yep, the senator’s list dredges a new low…


    1.20.09    On the Coronation

    he certainly took the Oaf of Office, now didn't he. Barry can read off the video monitor or teleprompter but going live he just can't repeat a 35 word paragraph?  He was the third to blow the oath.  Calvin Coolidge and Chester Arthur couldn't pull it off either. But hey, we know what great leaders they turned out to be, eh?


    And the useful idiots dance in the street (more likely shuttle off like cattle in the cold, driven off to slaughter) while the banking system collapses. Dow off the most of any inauguration ever.  Gotta admit, I was hooping Aretha could pull off another one but no dice there either. Hey, there was one good song. Not worth the price of admission though...


    Benediction at Obama 's inauguration, Rev. Joseph Lowery: 'Lord, …we ask you to help us work for that day when white will embrace what is right.”

    Nice rhetoric.

    At least Mi$helle wore gold to the coronation, a good sign for the precious metals. She is a smart cookie, probably realizes she signed up (eagerly) to oversee the collapse and dissolution of our economy and nation.

    Aretha disappointed, as did everyone else. I actually enjoyed the John Williams composition and thought it was perfomred flawlessly. The best part of the show by far. 

    ADD 1.23: Of course, now it comes out the Williams composition was canned music. Should have known. What a rube, I. Everything about the nero-esque scene was either disastrous or fake. 


    1.19.09    New Year, More Taxes

    The CA Board of Equalization regulations concerning the sale of coins/bullion changed with first of the year.

    Exemption raised from $1,000 to $1,500.  Details here:


    Yes, taxing circulating money is insane. Look at the state legislature for confirmation.


    1.18.09    What, Obama isn’t on the stamp yet?

    There will be a new Lincoln Stamp in February


    Barry Hussein will be on the 2014 issue, the first $100.00 stamp (to bad you'll need three to mail a letter).


    1.15.09    Gottshchalks goes BK

    Guess none of you shop there either.


    I remember trying to bargain with a manager there once. I explained she had the authority to offer 15% off on a particular item I wanted. She stated you can't negotiate with Gottschalks.  Well, what she didn't know is that it's Gottschalks that failed to negotiate. good luck negotiating with your creditors; don't choke on that 15% (or the job search).


    1.15.09    California's Cash Flow Crisis

    Legislative Analysts Office Looking into bankruptcy rules for the state. Not an option according to the opinion released today.


    1.15.09    On Consumer Prices

    yes, rising prices on needed goods is a drag.
    yes, stagnant prices on declining service is worse.

    for instance. had planned on going skiing this saturday. B.c. i get the pleasure of skiing on a holidy (MLK) the lift ticket goes up 12%. But b.c. the snow sucks, the service is poor!

    Can't imagine why anyone shops at those 99c stores. Plastic junk. Find the freecycle or freegan network in your commuity. You'd be surprised how much you can barter trade over the internet, or simply be given something.

    No taxes or paperwork either. gift in kind.

    If you really need to buy something, why not the goodwill/salvation army store or local no-brand second hand store? used real american goods that lasted 30 years and will last another 30 years. Save your money for high quality food.

    1.14.09    Be Prepared: Today we planted onions, more lettuce, broccoli


    and brussel sprouts. Later, I picked up about 500 feet of PVC for free from Peace Action West (they're moving office). Anyone remember them?

    The guy shows me his signed copy of Jerry Brown giving a speech at the no nukes concert. I told him no thanks, wasn't worth the space. Said I'd rather have the PVC...

    1.14.09    Who Will Buy the Raw Land

    The large homebuilders are sidelined for years - if not bankrupt - due to previous excess, speculation and poor balance sheets.


    The savvy small end boutique non-traded REITs and the nimble small investor will buy raw land at this point in the credit cycle. They will conduct due diligence, initial feasibility, ensure proper zoning and pull first permits on only the choicest remaining parcels.

    By the time this is done, they will be able to sell to the developers on the next upswing, as long as they are in a position to hold. Developing small parcels for custom homes featuring the best energy saving and sustainable techniques and materials provides the most viable economic niche at this point in the cycle.


    Those less hopeful than I see no reason why anyone would want to live in California (or the US). They naysayers find no reasons why an immigrant would want to move here in the next few years. However, that is the perception form the glass half empty – the realization from a boomer that America is on the decline and thus why would anyone move here. However, look at the situation from the perspective of a possible immigrant and things look much different.

    Demographics trump. Just in the Americas the population density alone, generally higher in all other American countries except Belize and Canada, make the US look very attractive. Expanding the view worldwide, the aging white US boomers are outnumbered by the young Asians still too reach their earnings potential.

    At least in my geographic area, northern San Francisco Bay, these demographic trends are evident in day to day dealings. The days on market have decreased in the counties I follow b.c. prices have fallen (up to 60% in some zip codes) to the point shown on the third graphic in the article. Namely, house process have decreased from 7x annual salary (the top of the market in October 2005) to about 2-2.5 times annual salary, near the 100 year mean of around 2x salary. The buyers to date seem evenly divided between smart money investors (yes, these homes will now cashflow above the 4-5% stated above) and young asian couples.


    1.14.09    Geitner for Treasury? Why not, keep up the Rhythm and Pattern of:

    -          Massive amount of fraud by Administration Nominations

    -          Most corrupt cadre of designated-elect in the Nation’s history

    -          Building upon the already large volume of broken promises, lies and theft

    Geitner commits tax fraud by not paying taxed for multiple (and recent) years.  Despite assurances by Obambam that this was a simple 'error;, Geitner was warned multiple times of the payment requirement. 

    Put him in charge of the Treasury Department and IRS? Why Not, that’s the change the people want!


    1.13.09    Those Appearing on the National Financial Press

    Are beholden to the current tax structure and status quo with rare exception.

    That shouldn't be a surprise. ANYONE carried in the national financial outlets supports the current regime. There are exceptions, Forbes for one and Phil Grande for another. For the life of me I don't understand how Phil is still breathing, much less carried by Bloomberg.


    Last week Ray Luccia had on a caller -

    The callers grandfather left him custodian to a safe deposit box w/o divulging the contents. The caller paid the deposit box dues every year. The grandfather passed away and the caller opened the box. Contents: 1,500 20-dollar gold pieces, 300 of them proof.

    The caller in his infinite wisdom immediately sold off a couple hundred to buy stock. Luccia and his gang, for their part, mostly concerned themselves with the right way to pay the taxes.

    Luccia's right hand man, Butterfield the tax lawyer, has a compelling interest to maintain the tax charade. All their advice streams from this fount.

    My grandfather left me a minute amount of silver and gold: Not available for IRS consumption.

    Just to feint another rant, the inheritance tax sits impaled squarely in the heart of small american business - a cornerstone of the coffin weighing down the once great middle class

    1.13.09    Awesome Tank Museum


    The guy who put it together, Jacques Littlefield, just passed away.



    1.12.09    Principals of Heritage talk about the last FUN show

    and the coin market in general:



    1.11.09    Gold Confiscation, Part One:




    1.10.09    Article: Where is the Bottom in the Housing Market


    Count me in – a great article!  My initial thoughts also centered around the increasing demand by immigrants.  The author states he finds no reasons why an immigrant would want to move here in the next few years.  However, that is the perception form the glass half empty – the realization from a boomer that America is on the decline and thus why would anyone move here.  However, look at the situation from the perspective of a possible immigrant and things look much different.  

    Demographics trump.  Just in the Americas the population density alone, generally higher in all other American countries except Belize and Canada, make the US look very attractive. Expanding the view worldwide, the aging white US boomers are outnumbered by the young Asians still too reach their earnings potential.

    At least in my geographic area, northern San Francisco Bay, these demographic trends are evident in day to day dealings.  The days on market have decreased in the counties I follow b.c. prices have fallen (up to 60% in some zip codes) to the point shown on the third graphic in the article. Namely, house process have decreased from 7x annual salary (the top of the market in October 2005) to about 2-2.5 times annual salary, near the 100 year mean of around 2x salary.  The buyers to date seem evenly divided between smart money investors (yes, these homes will now cashflow above the 4-5% stated above) and young asian couples.   

    This is the view from my neighborhood…


    1.4.09    When 'Change' means: "The more things change the more they stay the same".


    Believe me, I'd rather not have to point this out. But when the allegations and admissions increase with every day, you've got to give some notice to the situation.

    Seems a New York who previously donated $100,000 to former President Bill Clinton’s foundation/money laundering operation in November 2004, was coincidentally the receiving end of a favor/sponsorships by "Senator" Hillary Rodham Clinton.  Yep, she procured a cut for the graft for herself and a cut of YOUR tax dollars for the donor to her husband.



    Di Feinstein and hubby perfected this technique. Nice of them to share!

    Bill Richardson withdraws from commerce secretary, admitting he got caught in a pay to play scam, just like his chief of staff boss.  Oh well, at least the crook knows when to pull up and move down the road. 


    1.3.09    The Standard of Excellence our Nation Voted For

    As demonstrated by the once great State of Illinois:


    Senators: Barack Obama & Richard Durbin
    Representative: Jesse Jackson, Jr.
    Illinois Governor: Rod Blogojevich (arrested)
    Illinois House leader: Mike Madigan
    Illinois Attorney General: Lisa Madigan (daughter of Mike)
    Chicago Mayor: Richard M. Daley (son of Mayor Richard J Daley)

    The leadership in Illinois .....all Democrats.

    Chicago Combat Zone Statistics:

    Body count in the last six months: 292 killed (murdered) in Chicago
    221 killed in Iraq

    State pension fund - $44 Billion in debt, worst in the country.

    Cook County (Chicago) sales tax - 10.25% highest in country.

    Chicago school system - as you may have guessed, one of the worst in the country...

    1.2.09    Charlie Munger’s Universal Rules

    1. To get what you want, deserve what you want.

    2. The highest love is admiration based love.

    3. Appeal to interest instead of reason, as Ben Franklin encouraged. Simply do so from a perched loft full of high motivations.

    4. Wisdom acquisition is a moral duty. (i.e. learn all your life)

    5. Avoid sloth and unreliability.

    6. Avoid zealotry; don’t become an ideologue.

    7. You don’t need to hope to persevere” Ferdinand the Great.

    8. Avoid perverse associations and motivations.

    9. Don’t work under those we don’t admire or like.

    10. Maintain objectivity

    11. Use checklist maintenance.

    12. The highest order: A full and seamless network web of deserved trust.


    1.2.09    Two Views of the Mining Industry


    Tunnel (stope) vision or the larger picture. 


    The international picture presented by the Time provides the larger scope. namely, a mine supports a town, mining supports an industry, industry supports an economy, the economy grows a nation.


    That holistic view presented here sums up the thesis nicely:




    The Boston approach, illustrated here, is tunnel vision typical with much everything else passing for analysis emanating from boston over the past 50 years:


    One picture, a tunnel enclosing on the poor little colored child, represents African mining know-how:







    Two ways to view the same picture.


    boston scrapes bottom and offers up this insightful nugget:


    "Local miners and many of their family members work deep narrow holes where they scrape gravel and sand in search of sapphires".


    All they see is as hole and the poor struggling third worlder toiling to supply a worthless bauble.


    Of course, they could have stated something along the lines: "A young man develops confidence, skills and work ethics as he learns the sustainable mining trade that supports his family, village and emerging country.


    But that doesn't support the talking points provided to their editor, now does it?


    1.1.09    1,200 Policeman in Juarez, Mexico let go.

    The US govt. insisted, as a precondition of providing funds (i.e. your labor for the next 4.5 months, or more).  These policemen, many of whom on the take via the narco rings or other vested interests, will be hired back shortly - as soon as the US sends the check (and Mexico makes sure the check clears).


    On  a lighter note, the number of murders in that town over the previous year isn't quite as high as the number of crooked cops.


    1.1.09    Slowdown Hits the Collectibles Market

    Not too surprising.  Here is collectible paper dealer Vern Potter's take on the market (per his last newsletter:


    "The financial market meltdown has had a tremendous influence on the collectibles

    market, as we have seen it develop--in contrast with the rosy picture one may

    read about in the printed media. A perfect example was the happenings at a recent

    well known Eastern collectibles show. The media, including the house organ,

    continued to describe the solidity and strength of the market while those who

    were on the Bourse floor had no problem recognizing that the show had fallen on

    hard times. Every dealer, without exception, that was interviewed had

    opinions in direct contradiction of the virtuous environment that was expressed

    by the media reviewers. "

    Our sales have actually been increasing in the last couple months thanks to YOU!

    12.31.08    2008: The nation turned increasingly divided and intolerant

    Fomented by the propaganda developers one-quarter picks blue and one-quarter pick red and half refuse to play the reindeer games.

    Too bad some folks will close their mind to the point they will only listen to a handful from amongst the chorus.  Some clam up and can only hear the lower vibrations whilst the higher notes call and respond from a full orchestra - swirling around their clouded vision.  Such is the tragedy of our time.

    I’ve learned from everyone I’ve met over the years here.  I surmise the wisdom each has imparted as we’ve passed he hat has aided my endeavors and kept those cold chills blowing in the world from dampening the hearth keeping my world warm.

    Best wishes to all in 2009.

    12.31.08    End Year Performances

    $834.50 Price of Gold on 1.1.08

    $880.80 Price of Gold 12.31.08

    Dow was down 33.8% in the same period. The S&P performed even worse.

    Gold protected against both inflation and deflation, just as it should.


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