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Scott Sando

Final Warnings Report (Goldbugs Eyes Only)

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The debt ceiling issue will never be resolved in a way that restores confidence in the Dollar, and it is the final red alert flashing warning of a system that cannot be repaired. Edited by Scott Sando

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U.S.O.F.C.: If the Fraud Stops, the Financial System Collapses

OfTwoMinds. Com, Charles Hugh Smith

JANUARY 12, 2011

'What happens if fraud and misrepresentation of risk is expunged from the U.S. financial system? In President Bush's memorable phrase: This sucker's going down.

There is a fascinating disconnect between the "law and order" society ceaselessly depicted on TV and the realities of the American financial system, which is now totally dependent on lies, fraud, embezzlement and misrepresentation of risk.

Remove those and the system implodes.

As I observed in Fraud and Complicity Are Now the Lifeblood of the Status Quo:

Fraud, collusion, embezzlement, manipulation and misrepresentation of risk are not isolated incidents, they are now the essential fabric of our entire financial system.

Though fraud and complicity are presented in the mainstream media as isolated conspiracies outside the status quo, the truth is that the status quo is now entirely dependent on fraud and complicity for its very survival. Every level of the status quo would immediately implode were fraud and complicity suddenly withdrawn from the system.

Bernie Madoff's Ponzi Scheme was systemically ignored despite its blatant transparency and warnings submitted to authorities. Even a financial neophyte could see that Madoff's options bets were an order of magnitude too small to generate the vast profits he was claiming.

Why were warnings ignored? Because the Status Quo implicitly understands that misrepresentation and fraud are the essential lifeblood of America's financial empire. Impose "law and order" on the Wall Street/mortgage crowd and what do you get?"This sucker's going down."

Indeed, if we parse President Bush's inimitable summary closely, we discern a pre-existing awareness that this possibility was not a surprise but rather an anticipated consequence of systemic Ponzi fraud.

Americans love to see street criminals and petty gangsters brough to "justice," but we turn a blind eye to organized financial crime. Why is this so? Is it just that systemic financial fraud is not very dramatic? Is it that financial forensics are so boring compared to a decomposing corpse?

I think the truth is much more self-serving.

The Power Elites of the status quo, both political and financial, are well aware of the system's total dependence on legerdemaine, misrepresentation of risk, manipulation, lies, fraud and well-oiled machines of embezzlement (for instance, the entire mortgage and mortgage-backed securities markets).

Bringing "law and order" to Wall Street and the banking/mortgage sectors would mean indicting your pals and contributors, and bringing down the entire house of cards which has enriched and empowered you. No wonder indictments have been piecemeal and modest in scope: a few probes into insider trading, a few fines here and there--not what anyone would characterize as "cleaning house."

Here is an illustration of the dominoes I saw falling in mid-2006 once the system of mortgage/credit fraud unraveled. Not every detail fell into place as predicted, but the rough course of events is certainly accurate: when the global credit/housing/mortgage fraud imploded, it took the global banking sector which had grown dependent on debt addiction and misrepresentation of risk down, too.

The Power Elites of the U.S. are now dependent on an organized financial crime syndicate.Like parasites living the high life in a household funded by the Mafia's trading in addiction and corruption, the American Power Elites don't dare allow "law and order" to sweep through Wall Street and the bankin/mortgage sector, lest their privileged lifestyle abruptly end.

So next time you see a TV broadcast schedule loaded with crime dramas and forensic programs, ask yourself: where are the real-life investigations, financial forensics and indictments in the financial system? Where are the dramas about bringing the bankers and Wall Street fraud packagers to justice?

The answer is self-evident: if law and order were imposed on America's fraud-dependent system, then "this sucker's going down."As well it should. Parasitic organized financial crime is bleeding the real economy dry as it siphons off hundreds of billions and redistributes it to the nation's Power Elites.

Enjoy the bread (extended unemployment) and circuses: "law and order" dramas about "bringing criminals to justice."'

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He is an excitable young flag waver isnt he?

If I were him I would have been spending that $4000 on gold. Silver is expensive right now relative to gold and if the markets dive then silver price will plummet. Silver gets hit hard as liquidity leaves the markets but in the scenario that he expects gold should retain a descent price as it becomes driven by fear.

Not sure he fully grasps what he is talking about though when he advises to buy nickels and pennies if you cant afford silver because in a hyper scenario they would retain their metal melt value. If things went hyper who the feck is going to be interested in pennies and nickels? There are lots more important things to spend cash on.

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He is an excitable young flag waver isnt he?

If I were him I would have been spending that $4000 on gold. Silver is expensive right now relative to gold and if the markets dive then silver price will plummet. Silver gets hit hard as liquidity leaves the markets but in the scenario that he expects gold should retain a descent price as it becomes driven by fear.

Not sure he fully grasps what he is talking about though when he advises to buy nickels and pennies if you cant afford silver because in a hyper scenario they would retain their metal melt value. If things went hyper who the feck is going to be interested in pennies and nickels? There are lots more important things to spend cash on.

Nah silver is cheap next to gold when it go's under 16/1 you might have a point. If it go's hyper what would you be able to spend your paper dollars on?

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Nah silver is cheap next to gold when it go's under 16/1 you might have a point. If it go's hyper what would you be able to spend your paper dollars on?

16/1 would be the historical average but I think we are a long way from that.

Silver was cheap at 90/1, I bought plenty at 70/1 but at 46/1 it doesnt look so cheap to me anymore.

If it goes hyper then paper is a problem but what I was getting at is why buy silver now? If people dont have that much spare cash then they are better off spending it on things that they will need and use but wont be available later. They should be buying food, tools, shoes, torches, candles blah blah blah.

No point paying out for expensive silver now only to have to trade an eagle for some tins of food, better off just buying the tins now while they are cheap and available. For people with little spare cash to protect I think there are better things to do with it if they expect the world to stop turning.

At least if they buy goods that will be needed and are wrong about the situation they will still be able to use the goods and continue saving.

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Nah silver is cheap next to gold when it go's under 16/1 you might have a point. If it go's hyper what would you be able to spend your paper dollars on?

you got that the wrong way around btw.

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16/1 would be the historical average but I think we are a long way from that.

Silver was cheap at 90/1, I bought plenty at 70/1 but at 46/1 it doesnt look so cheap to me anymore.

If it goes hyper then paper is a problem but what I was getting at is why buy silver now? If people dont have that much spare cash then they are better off spending it on things that they will need and use but wont be available later. They should be buying food, tools, shoes, torches, candles blah blah blah.

No point paying out for expensive silver now only to have to trade an eagle for some tins of food, better off just buying the tins now while they are cheap and available. For people with little spare cash to protect I think there are better things to do with it if they expect the world to stop turning.

At least if they buy goods that will be needed and are wrong about the situation they will still be able to use the goods and continue saving.

I still think its cheap at 46/1. I agree with all your other points.

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I still think its cheap at 46/1. I agree with all your other points.

it may still be it just doesnt feel it anymore, not when I was buying at half the price it is now.

Edited by richyc

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Seems to be some confusion here. Let us ask RB. His considered view would be welcome, don't you think? :)

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16/1 would be the historical average but I think we are a long way from that.

Define the word 'historical'. Certainly silver used to be 16:1, but that was hundreds of years ago. Before the discovery and exploitation of the great silver reserves of the new world (yep, we are talking that far back). It has not been at that ratio since.

The big difference between gold and silver is that most gold comes from gold mines. If a mine is viable depends on the POG. By contrast most silver is obtained as a by-product of base metal extraction. The miners are mining for the copper, they will simply dump the waste products, silver, if they can't sell it. Thus silver supplies are dependent on activity in base metal mining and is little effected by the POS. Of course if the POS should rise high enough, then dedicated silver mines would open. The problem is places like Peru sit on vast deposits, nobody mines it because of all the cheap stuff coming from the base metal extraction.

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Define the word 'historical'. Certainly silver used to be 16:1, but that was hundreds of years ago. Before the discovery and exploitation of the great silver reserves of the new world (yep, we are talking that far back). It has not been at that ratio since.

The big difference between gold and silver is that most gold comes from gold mines. If a mine is viable depends on the POG. By contrast most silver is obtained as a by-product of base metal extraction. The miners are mining for the copper, they will simply dump the waste products, silver, if they can't sell it. Thus silver supplies are dependent on activity in base metal mining and is little effected by the POS. Of course if the POS should rise high enough, then dedicated silver mines would open. The problem is places like Peru sit on vast deposits, nobody mines it because of all the cheap stuff coming from the base metal extraction.

When I say historical I mean long term like since the roman empire (yes that far back :lol: ). It was around 15/1 for centuries and has returned to that ratio at various points in time which is why people talk about 16/1 as being the time to sell silver for gold and as being the ratio silver should return to. I dont believe that we will reach 16/1 again in my life time but silver has more and more uses and scarcity may driv it so we shall have to see.

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The ratio didnt really start moving until the mid 19th century, I am not sure which new world you are referring to but the case for the historical average ratio being around 15/1 is backed by time. Personally, I think that things have changed since the 20th century and that ratio is gone in spite of touching on it within the last 30 years.

Silver is largely a by product but no one throws it away regardless of what they are actually mining. Most mines see it as a bonus and it goes toward funding their costs.

Mining is very expensive and silver is very cheap in mine terms so there are very few silver mines but silver supplies are running low so there is always the possibility that demand could drive price and mines become viable. This is what the silver bugs are constantly discussing, I am not convinced, we shall see.

Edited by richyc

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Mining is very expensive and silver is very cheap in mine terms so there are very few silver mines but silver supplies are running low so there is always the possibility that demand could drive price and mines become viable. This is what the silver bugs are constantly discussing, I am not convinced, we shall see.

I hear there is a massive massive dedicated silver mine opening in Mexico or Peru sometime this year... which puts me in a hold position instead of loading up on more. I do however have lots of tinned food and enough shells to hold off a huge crowd.

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Gold seems to have lost a whole quarters gain and Silver half that. Never saw that coming. Never thought the Portuguese bond sales would have that much of an impact. I predict another set of poor US GDP and job figures and commodities will be back on the rise again. Dumping the rent money in. Hopefully there will be some return before Feb 1st!

Edit, was beginning to lose my nerve a little so jumped back in buying at £589/kg.

Edited by Earthling10

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US Mint Reports Unprecedented Buying Spree Of Physical Silver

Three days ago we noted that in just the first week of January, the US Mint had sold 2,221,000 ounces of silver "a number which if run-rated would be an absolutely all time monthly record," A quick glance at the tally today, shows that something very scary is going on. In the subsequent three days, the number has surged by 50% and has hit 3,407,000 ounces of silver! In just the first 12 days of the month we have already surpassed the total monthly sales of 9 separate months of 2010.

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US Mint Reports Unprecedented Buying Spree Of Physical Silver

Three days ago we noted that in just the first week of January, the US Mint had sold 2,221,000 ounces of silver "a number which if run-rated would be an absolutely all time monthly record," A quick glance at the tally today, shows that something very scary is going on. In the subsequent three days, the number has surged by 50% and has hit 3,407,000 ounces of silver! In just the first 12 days of the month we have already surpassed the total monthly sales of 9 separate months of 2010.

I put something in the gold thread that may be of interest, is another comex rumour but this one seems to be getting taken a bit more seriously.

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16/1 would be the historical average but I think we are a long way from that.

Silver was cheap at 90/1, I bought plenty at 70/1 but at 46/1 it doesnt look so cheap to me anymore.

If it goes hyper then paper is a problem but what I was getting at is why buy silver now? If people dont have that much spare cash then they are better off spending it on things that they will need and use but wont be available later. They should be buying food, tools, shoes, torches, candles blah blah blah.

No point paying out for expensive silver now only to have to trade an eagle for some tins of food, better off just buying the tins now while they are cheap and available. For people with little spare cash to protect I think there are better things to do with it if they expect the world to stop turning.

At least if they buy goods that will be needed and are wrong about the situation they will still be able to use the goods and continue saving.

Superb post. I have my PMs but I've now started buying tinned food (aiming for about six month's worth to start with), and any consumer durables (batteries, copper network cables, torches, candles etc.) that would hold their price (sorry, value) in a high-inflation or flood/disaster/commodities inflationary environment.

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Superb post. I have my PMs but I've now started buying tinned food (aiming for about six month's worth to start with), and any consumer durables (batteries, copper network cables, torches, candles etc.) that would hold their price (sorry, value) in a high-inflation or flood/disaster/commodities inflationary environment.

You may wish to consider in obtaining freeze dried food, which has a shelf life of 25-30 years, easy to transport & store and requires only to be rehydrated. To add to the list would be a good quality "survival/expedition" water filter and a Kelly kettle.

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You may wish to consider in obtaining freeze dried food, which has a shelf life of 25-30 years, easy to transport & store and requires only to be rehydrated. To add to the list would be a good quality "survival/expedition" water filter and a Kelly kettle.

This is dumb (though I have an expedition water filter left over from my russian trip). It is dumb because all you really need is a weapon of some kind. Me? I've got access to shotguns and enormous amounts of ammo. As a backup I have a bow.

When TSHTFF you don't need huge supplies of stored food 5 days is plenty.

You bunker up keep well fed for 5-6 days. All other people will be weakened by their hunger. Simply you go out and start hunting other humans for their sweet sweet flesh. If you keep a prison of 10-20 people alive you can butcher one every so often and feed the others with the meat keeping them alive for a very long time.

Bows are great because arrows can be reused many times and imperfect arrows can be made from house hold things.

Thus you may bunker down but armed people like me will come and eat you. :P

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You may wish to consider in obtaining freeze dried food, which has a shelf life of 25-30 years, easy to transport & store and requires only to be rehydrated. To add to the list would be a good quality "survival/expedition" water filter and a Kelly kettle.

Tins can go well past the dates stored on them so long as they are stored at a reasonably low temperature. Apparently tinned tomatoes have a life though because the acidity wrecks the tins.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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