All posts by admin46x

Moore’s Law, Cheap Electronics and Homeland Security Money Combine to Create Big Brother

1984 wall TV Moores Law, Cheap Electronics and Homeland Security Money Combine to Create Big Brother

 

We extensively documented last week that Americans are the most spied upon people in world history.

Yesterday, the Wall Street Journal gave a glimpse of a small part of the pervasive spying:

Top U.S. intelligence officials gathered in the White House Situation Room in March to debate a controversial proposal. Counterterrorism officials wanted to create a government dragnet, sweeping up millions of records about U.S. citizens—even people suspected of no crime.

Why is this happening?

Technology … and money.

Specifically, Moore’s law says that computing power doubles every two years.  Computer processing and storage are advancing so quickly that massive quantities of visual and auditory data can be gathered, analyzed and stored.

Moreover, high-quality videocams and microphones keep getting cheaper and cheaper.  Today, most people shoot video with their smartphone, and alot of people have webcams on the computers.

At the same time, the Department of Homeland Security is giving huge amounts of cash to local governments to obtain  military hardware and software.

These 3 trends – increased computing power, cheaper videocams and microphones, and government funding for “homeland security” purposes – has led to a 1984 style surveillance society.

As Wired reports:

Transit authorities in cities across the country are quietly installing microphone-enabled surveillance systems on public buses that would give them the ability to record and store private conversations….

 

The systems are being installed in San Francisco, Baltimore, and other cities with funding from the Department of Homeland Security in some cases ….

 

The IP audio-video systems can be accessed remotely via a built-in web server (.pdf), and can be combined with GPS data to track the movement of buses and passengers throughout the city.

 

***

 

The systems use cables or WiFi to pair audio conversations with camera images in order to produce synchronous recordings. Audio and video can be monitored in real-time, but are also stored onboard in blackbox-like devices, generally for 30 days, for later retrieval. Four to six cameras with mics are generally installed throughout a bus, including one near the driver and one on the exterior of the bus.

 

***

 

and security expert Ashkan Soltani told the Daily that the audio could easily be coupled with facial recognition systems or audio recognition technology to identify passengers caught on the recordings.

RT notes:

Street lights that can spy installed in some American cities

 

America welcomes a new brand of smart street lightning systems: energy-efficient, long-lasting, complete with LED screens to show ads. They can also spy on citizens in a way George Orwell would not have imagined in his worst nightmare.

­

With a price tag of $3,000+ apiece, according to an ABC report, the street lights are now being rolled out in Detroit, Chicago and Pittsburgh, and may soon mushroom all across the country.

 

Part of the Intellistreets systems made by the company Illuminating Concepts, they have a number of “homeland security applications” attached.

 

Each has a microprocessor “essentially similar to an iPhone,” capable of wireless communication. Each can capture images and count people for the police through a digital camera, record conversations of passers-by and even give voice commands thanks to a built-in speaker.

 

Ron Harwood, president and founder of Illuminating Concepts, says he eyed the creation of such a system after the 9/11 terrorist attacks and the Hurricane Katrina disaster. He is “working with Homeland Security” to deliver his dream of making people “more informed and safer.”

Fox news notes that the government is <a href="http://www.myfoxdc.com/story/20286045/black-boxes-in-cars-raise--concerns” target=”_blank” title=”insisting that “black boxes” be installed in cars”>insisting that “black boxes” be installed in cars to track your location.

The TSA has moved way past airports, trains and sports stadiums, and is deploying mobile scanners to spy on people all over the place.  This means that traveling within the United States is no longer a private affair.  (And they’re probably bluffing, but the Department of Homeland Security claims they will soon be able to know your adrenaline level, what you ate for breakfast and what you’re thinking … from 164 feet away.)

And Verizon has applied for a patent that would allow your television to track what you are doing, who you are with, what objects you’re holding, and what type of mood you’re in.  Given Verizon and other major carriers responded to at least 1.3 million law enforcement requests for cell phone locations and other data in 2011, such information would not be kept private.  (And some folks could be spying on you through your tv using existing technology.)

Thanks to Moore’s law, cheap electronics and the all-pervasive “homeland security” state, Big Brother is here.

Postscript: George Orwell was not the only one to foresee pervasive high-tech surveillance.  National Security Adviser Zbigniew Brzezinski wrote in 1970:

The [future] era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities.

Fortunately, Big Brother is a gentle soul who would never hurt a fly.  Oh, waitnever mind.

Guest Post: Blue Shield Of California To Hike Insurance Rates Up To 20%

Submitted by Mike Krieger of Liberty Blitzkrieg

Blue Shield Of California To Hike Insurance Rates Up To 20%

Good thing there is no inflation, you know, except in every single thing every single American needs to buy to survive that is!  The hits just keep coming for California, America’s very own Greece.  Remember the article I posted a couple of days ago titled: Payday Loans in California: School Districts Owe $1 Billion on $100 Million Borrowed.

Now we find out from the LA Times:

Health insurer Blue Shield of California wants to raise rates as much as 20% for some individual policyholders, prompting calls for the nonprofit to use some of its record-high reserve of $3.9 billion to hold down premiums.

In filings with state regulators, Blue Shield is seeking an average rate increase of 12% for more than 300,000 customers, effective in March, with a maximum increase of 20%.

 

That should be a real boon for California’s economy.  Meanwhile…

Some other states limit how much surplus can be held by nonprofit health plans. Other regulators press nonprofit insurers to return more money to consumers and the community overall since their stated mission is to serve the public good. Washington’s insurance commissioner has said the two big nonprofit Blue Cross and Blue Shield plans there hold enough surplus to allow a portion of it to be used to reduce rates.

Wait a minute.  This is a “non-profit?”  It is truly amazing that whenever I think this ghetto economy we have couldn’t be more screwed up, it immediately proves me wrong.

Full article here.

A Totally Different Ballgame Soon / Crime In A Flash

From www.LeMetropoleCafe.com commentary:

December 13 – Gold $1695.60 down $21 – Silver $32.28 down $1.43

A Totally Different Ballgame Soon / Crime In A Flash

“The function of free speech under our system of government is to invite dispute. It may indeed best serve its high purpose when it invites a condition of unrest, creates dissatisfaction with conditions as they are, or even stirs people to anger.” … Justice William O. Douglas

GO GATA!

A.M. Kitco Metals Roundup: Gold Drops Below $1,700 Following another Mysterious Price Drop in Asian Trading

Thursday December 13, 2012 8:21 AM(Kitco News) – Comex gold futures prices are trading solidly lower Thursday morning, on some fresh technically based selling and on mildly bearish outside market forces. Once again, the gold market suffered a rapid and inexplicable price drop in early Asian trading Thursday, on reported sell stops being triggered. Sell stops are pre-placed market orders to sell if a certain price is hit. That marks the third week in a row of such price declines that occur for seemingly no fundamental reason…

-END-

What to say today after last night’s email missive rant? Nothing worse than sounding like an angry ole man, which I am at the moment. Then again, I am not at all. It’s the Billy Martin thing, who was a former ballplayer and coach of the New York Yankees, and renowned for kicking the bases while arguing with umpires over what he perceived as a bad call. He would kick and kick, get it out of his system and go on from there … letting his emotions be yesterday.

Same deal here. This “mysterious” price tanking is aggravating in and of itself, but also because, again, NO ONE outside of The GATA camp will call a spade a spade and talk about market manipulation. Three weeks in a row, Kitco speaks of sharp price declines in Asia with no fundamental information to explain the price drops. But, would any of their ace reporters, my friend Daniela Cambone included, call up CP or me for a GATA comment? Not on your life … even after we present them with the recently discovered IMF report which virtually says the gold market is manipulated.

Instead Market Watch trots out another know nothing clown, as PRICE ACTION MAKES MARKET COMMENTARY … any commentary but the truth:

Gold set for dramatic correction: hedge fund manager

December 13, 2012, 10:21 AM

Long-term and perhaps even short-term investors of gold could be forgiven for getting rattled on Thursday as the precious metal dropped below $1,700 an ounce .bgChannel, .bgRealtimeChannel, .bgRevision { display: none; } /quotes/zigman/4331913 GCG3 -1.00%, down over $26 in the early hours of U.S. trading.

Get used to it, says Uri Landesman, president of Platinum Partners, a New York-based multi-strategy hedge fund. “Gold was overvalued and it’s going to come down dramatically,” he said. And he sees 2013 shaping up as a year where gold will trade in a range of $1,400 and $1,800, meaning current prices are on the high side.

“The Fed is pretty much saying that we’re going to backstop the stock market forever,” said Landesman, referring to the Federal Reserve’s prior-day declaration that it wants unemployment in the U.S. — currently at 7.7% — to drop to 6.5% before it raises interest rates again. And backstopping equity markets more or less indefinitely is not good for the precious metal, he said.

“Gold tends to do best if there’s a flight to quality. That’s not the case right now because the Fed is being so accommodative and saying we’ll be propping up gold until unemployment gets to 6.5%. That’s a sharp signal that there’s no reason to fly to gold, because gold is overvalued here.”

And as stocks are set to benefit from the new Fed stance, equities and gold are going to detach, he said. “So people who have a finite amount of money are going to go to one asset class or two or three, bonds and stocks and go out of safer havens like gold.”

He said his expectations are based as much on technicals as they are on analysis. “They both support the same thing. There’s more downside than upside risk on gold. We’ve been in a 12 to 13-year supercycle. Gold was at $200 an ounce in the late 1990s. It’s had a pretty nice run, if you punch up the chart on gold. What we’re getting now is a standard correction, but it’s going to be a big correction.”

    Barbara Kollmeyer

-END-

If that is not happy Horse S, I don’t know what it is. But Market Watch will publish what that goofball has to say, yet won’t mention what GATA has explained to them for 14 years and been right about the direction of the price of gold for the last 12 years.

Cannot stress this enough: BLACK IS WHITE AND WHITE IS BLACK in the gold/silver world. The more bullish the fundamentals, or the more bullish the news is, the more The Gold Cartel goes into attack mode. James Mc has brought this to our attention time and time again for some time now. What we are watching The Gold Cartel do to gold and silver at the moment is the best example of that over the last 14 years. As Kitco even mentions, they have done the same drill in Asia three weeks in a row. And the obvious hit job selling on the Comex has been documented in this column day after day, even hour after hour of late.

There can only be one plausible explanation for the gold/silver price action of yesterday and today … after the about as bullish news as the gold world could get which emanated from the Fed yesterday. That explanation is the US Government knows they have NO SOLUTIONS to the US fiscal predicament, no solutions which will be acceptable to the kept in the dark American public and to any politician who wants to be re-elected. The situation is bleak and the Obama Administration/Fed fully intends to go to all out money printing mode, so their first step is to SHOOT THE MESSENGER … which they are attempting to do at the moment.

That attempt will FAIL. And that is because the precious metals physical markets will overwhelm the Gold Cartel’s paper game manipulation raids as demand will overwhelm their available supply. It is that simple. The timing of it all is far from simple. Look out how they have been able to stem the tide over the last year. But still, the price of gold is up over $130 for the year, and that is after they have thrown the kitchen sink at the market. The closing price of silver last year was $27.91. What market has performed better than silver this year, despite JPM and their friends?

My take on what is going on here is that something awful is brewing behind the scenes and the powers in Washington want gold off the favored radar scene when it hits. That is what their selling intensity EVERY noticeable day is telling me. We shall see. But, if that is the case, it should not be long until we find out.

As far as the markets went today, the price of gold was trashed all the way down to $1688 on the Comex. Silver fared much worse, dropping down to $32.19 and breaking support which held for days. Silver broke OUT yesterday on the Comex. We always talk about no follow-through allowed in the precious metals, but this takedown is a bit extreme, even for them. The breakout meant NOTHING, so does this hit job … NOTHING in terms of the big picture and what is coming in the near future.

It is SO important to keep in mind that The Gold Cartel does what they do to affect the thinking of the investing public and to affect their psychology about the precious metals vis-à-vis the US stock market, dollar, and interest rates. That is what this sick game they are playing is all about. No matter how well gold performs year after year, their aim is to put it in the dog house. Love this extremely well written email from a Café member last night after my missive. VERY well written, but totally off the mark in terms of who is going to prevail and why. Take it away Jack:

Re: MIDAS Bulletin: SHOUT OUT: The Cockroaches Are In Trouble … AND An Opportunity Of A Lifetime

Just mind-boggling. Forget the 1 Tr $$$ cranked out this coming year, alone; instead, focus on one odd feature of it that might not be PERFECT for gold. of course, stocks doin’ just fine.

Even if all this conspiracy stuff is true (and I have owned gold through 6 exhilarating and now frustrating years), we may need to face the facts that those in control cannot be dealt with and…THEY win. Why keep fighting it? Why not go with what they are going to let win: stocks, stocks and stocks. They want us in paper and they are going to get us in paper just like FDR did. If we try to hang onto gold after the confiscation order comes down (which I bet will happen as soon as they relay to their bosses that they can’t keep the prices down anymore and the fiat is getting ready to get revealed as a sham), we’ll never be able to spend it or even show it to anyone without worrying about whether they are feds/snitches. Those that kept gold in 1934 had to hold on for FOURTY YEARS without being able to call on the gold (who knows how long without Jim Blanchard). Not sure I can do that and I don’t have kids.

After today and tonight’s action, following two QEs in five months, I’m spent. There’s no inflation; the stuff is just too manipulated; stocks go up no matter what (except my gold mutual fund – down, down, down); if the mamrket inproves, money leaves gold for stocks; if market worsens, money leaves gold for good old dollars. This has become a no-win; and, even if we “win”, it’ll be a nat’l/global meltdown where the first thing the central authority will do is ban gold. So, even if we win, we will lose. I see no option, realistically, outside this country. it’s all just as manipulated and collectivist as we are becoming, if not worse.

I’m thinking of making contact with Blanchard and Sons and CNI and unloading it all and just putting it all into Fidelity high yield and emerging market and asian bond funds and cash and just forget it. Enough is enough. I’m like the farmers in Shane tired of dealing with Ryker and his gunslinger brought in special from Cheyenne. I don’t see SHane on the horizon; I see bernanke, JPM, Hillary, Obama, etc.

***

Hi Jack,
You are WAY too smart to unload your gold and silver here. Somehow I think that every Café member who reads this knows you won’t either.
B
Feeback from an early reader of the unedited MIDAS:

Bill
Im sure it has occurred to you but the same thoughts must be going through many of your subscribers heads…me included! A little hand holding wouldn’t be a bad idea explaining why you think Jack has it all wrong. I would never tell the number one gold guy in the world how to run his commentary Take this observation from a pal who has nothing but your newsletters success in mind. The frustration being felt by your loyal followers must be off the charts.

I found Jacks observations very plausible. FWIW and food for thought.
Norm

Love ya Norm, but THEY WIN?

The Gold Cartel is getting their ass handed to them which is why they are going berserk at the moment. They are LOSING CONTROL and they don’t know how to handle it … which is just why they are doing what they are right now.

Win? Them? When I first started this commentary, gold was under $300 and silver was $4 and change, getting into the $3 plus zone at one point. Look at the closing prices today.

Win? What has the DOW done the past decade compared to what the prices of gold and silver have done?

YES, they have won to a fairly big degree with their manipulation of the gold/silver share prices because they have had no physical market to contend with. Us gold/silver share investors are sucking wind at the moment, but that will change in epic fashion. First, when The Gold Cartel and hedge fund allies decide it is time to cover. That will be phase one of liftoff. Phase two will be when the general public comes our way. It will be a sight to behold. Take care Norm and have a blast on your trip.
B

The AM Fix was $1694.75. The PM Fix dropped to $1692.75. The Gold Cartel raid made a significant impact on physical market buyers.

The gold open interest rose 5175 contracts to 438,761. The silver open interest went up 1985 contracts to 144,066. The Gold Cartel, with honcho JPM leading the way, are not happy campers and are taking their venom out on those who are in the hunt to take them on. They won today. But, it will be a totally different ballgame soon.

James Mc…

Crime in a flash

Bill,
Thin-trade Crimex flash crash objectives:
* Create confusion and anxiety in foreign gold markets.
* Terrorize, rout longs who carry overnight positions.
* Terrorize, rout longs attempting to pyramid successful trades.
* Discourage and demoralize ANY long, period.
* Create “volatility”, let pundits then disparage trading volatility to public.
* Obliterate sell stops at the easiest possible moment.
* MOPE, MOPE, MOPE.
* Turn it over to MSM to do the rest.

There has never been a flash crash in the history of lumber futures. It would actually be easy to do, with possibly as little as 200 cars, yet it never happens. Why? Because nobody is dumb enough to trade that way. Since gold is in a 12 year bull market if anything you should be seeing flash melt-ups, not crashes. And of course there hasn’t been a single thing mentioned in MSM about the likely cause, which is another criminal attack. In fact the quote below from a Reuters article is arguably the dumbest thing ever written about gold. In particular the underlined sentences by the genius at Soc Gen takes the cake.

“The near term risk is a stronger dollar,” said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong. “The ‘fiscal cliff’ is going right to the end, and that could support the dollar and take some shine off gold.” The dollar, seen as an ultimate safe haven, is likely to attract investors worried about the uncertainty in the U.S. fiscal situation. A stronger greenback pressures dollar-priced commodities by making them more expensive for buyers holding other currencies.”

Huh? When manipulation is the ONLY possibility the boundaries for deceit and lies are endless. The rats are cornered, and are lashing out with their gnarled teeth. Surely this is the late stages of a manipulation that has already had 10 lives.
James Mc ..

What we have just witnessed to that The Gold Cartel’s drive by raid really is a crime in a flash … a crime that is not recognized outside of the GATA camp. As per my latest rants: no free press in America, and no free markets. The mainstream financial market press are just a bunch of ZOMBIES when it comes to the market manipulation subject … not even allowing a he said, she said debate on the issue. That is not allowed by the mental midgets who comment on the precious metals markets.

America is going down the drain. A number of us in the GATA camp think we know why and nobody cares. It is all about spin, staying in power, and making a buck at the peoples’ expense. That is the way it is for now

Having worked on my Bulletin last night and getting up early to watch the carnage in the precious metals markets, I took a rare mid-week steak lunch at Chili’s, my local hangout out a block away from where I live to say hello to my friend, Martha, their forever bartender and a great gal. Naturally, I had her put on CNBC on the wide screen to watch the market action. The gold and silver prices flashing on the screen were a downer. But that downer was put in perspective very quickly.

One of Martha’s regulars is the attorney for the Dallas Cowboy football player who killed his best friend last Friday night when he lost control of his car while drunk at 2 AM in the morning. It was reported in the Dallas Morning News this morning that the driver of the car, Joshua Brent (nose guard), had a blood alcohol level at the time of the accident which registered more than twice the legal limit.

This attorney arrived at Chili’s as I was nearly out the door. I saw him surrounded by the Dallas press outside the restaurant, besieged by reporters. Here he is with his client:

http://www.dallasnews.com/sports/dallas-cowboys/headlines/20121213-josh-…
ol-level-more-than-double-legal-limit-during-crash.ece

The point is that life is relative. What the Gold Cartel did today is egregious stuff at its highest level. But, in another month the prices of gold and silver will be much higher and today will be forgotten. This poor soul, Joshua Brent, will have to live with he did to his best friend for the rest of his life. No comebacks allowed on that matter.

Gold and silver are incredible investments at these giveaway Gold Cartel prices. The gold/silver shares are more than incredible down at the levels which so many are trading at. It may sound like a broken record, but it is SO true. It will be a totally different ballgame in the near future. This IS an investment opportunity of a lifetime!

GATA BE IN IT TO WIN IT!

MIDAS

A Totally Different Ballgame Soon / Crime In A Flash

 

<span id="role_document" style="color: #000000; font-family: Arial; font-size: x-small;”>

From www.LeMetropoleCafe.com
commentary:

December 13 – Gold $1695.60 down $21 – Silver $32.28 down
$1.43

A Totally Different Ballgame Soon / Crime In A
Flash

<span style="color: #008080; font-family: Comic Sans MS; font-size: large;”><span style="color: #008080; font-family: Comic Sans MS; font-size: large;”><span style="color: #008080; font-family: Comic Sans MS; font-size: large;”>

“The function of free speech under our system of government is to
invite dispute. It may indeed best serve its high purpose when it invites a
condition of unrest, creates dissatisfaction with conditions as they are, or
even stirs people to anger.” … Justice William O. Douglas

GO GATA!

A.M. Kitco Metals Roundup: Gold Drops Below
$1,700 Following another Mysterious Price Drop in Asian Trading

Thursday December 13, 2012 8:21 AM(Kitco
News
) – Comex gold futures prices are trading solidly lower
Thursday morning, on some fresh technically based selling and on mildly bearish
outside market forces. Once again, the gold market suffered a rapid and
inexplicable price drop in early Asian trading Thursday, on reported sell stops
being triggered. Sell stops are pre-placed market orders to sell if a certain
price is hit. That marks the third week in a row of such price declines that
occur for seemingly no fundamental reason…

-END-

What to say today after last night’s email missive rant? Nothing
worse than sounding like an angry ole man, which I am at the moment. Then again,
I am not at all. It’s the Billy Martin thing, who was a former ballplayer and
coach of the New York Yankees, and renowned for kicking the bases while arguing
with umpires over what he perceived as a bad call. He would kick and kick, get
it out of his system and go on from there … letting his emotions be
yesterday.

Same deal here. This “mysterious” price tanking is aggravating in and
of itself, but also because, again, NO ONE outside of The GATA camp will call a
spade a spade and talk about market manipulation. Three weeks in a row, Kitco
speaks of sharp price declines in Asia with no fundamental information to
explain the price drops. But, would any of their ace reporters, my friend
Daniela Cambone included, call up CP or me for a GATA comment? Not on your life
… even after we present them with the recently discovered IMF report which
virtually says the gold market is manipulated.

Instead Market Watch trots out another know nothing clown, as PRICE
ACTION MAKES MARKET COMMENTARY … any commentary but the truth:

Gold set for dramatic correction: hedge fund manager

December 13, 2012, 10:21 AM

Long-term and perhaps even short-term investors of gold could be
forgiven for getting rattled on Thursday as the precious metal
dropped
below $1,700
an ounce .bgChannel, .bgRealtimeChannel,
.bgRevision { display: none; }
/quotes/zigman/4331913
GCG3 -1.00%
, down over $26 in the early hours of U.S.
trading.

Get used to it, says Uri Landesman, president of Platinum
Partners
, a New York-based multi-strategy hedge fund. “Gold
was overvalued and it’s going to come down dramatically,” he said. And he sees
2013 shaping up as a year where gold will trade in a range of $1,400 and $1,800,
meaning current prices are on the high side.

“The Fed is pretty much saying that we’re going to backstop the stock
market forever,” said Landesman, referring to the Federal Reserve’s prior-day
declaration
that it wants unemployment in the U.S. — currently at 7.7% — to drop to 6.5%
before it raises interest rates again. And backstopping equity markets more or
less indefinitely is not good for the precious metal, he said.

“Gold tends to do best if there’s a flight to quality. That’s not the
case right now because the Fed is being so accommodative and saying we’ll be
propping up gold until unemployment gets to 6.5%. That’s a sharp signal that
there’s no reason to fly to gold, because gold is overvalued here.”

And as stocks are set to benefit from the new Fed stance, equities
and gold are going to detach, he said. “So people who have a finite amount of
money are going to go to one asset class or two or three, bonds and stocks and
go out of safer havens like gold.”

He said his expectations are based as much on technicals as they are
on analysis. “They both support the same thing. There’s more downside than
upside risk on gold. We’ve been in a 12 to 13-year supercycle. Gold was at $200
an ounce in the late 1990s. It’s had a pretty nice run, if you punch up the
chart on gold. What we’re getting now is a standard correction, but it’s going
to be a big correction.”

  • Barbara Kollmeyer

-END-

If that is not happy Horse S, I don’t know what it is. But Market
Watch will publish what that goofball has to say, yet won’t mention what GATA
has explained to them for 14 years and been right about the direction of the
price of gold for the last 12 years.

Cannot stress this enough: BLACK IS WHITE AND WHITE IS BLACK in the
gold/silver world. The more bullish the fundamentals, or the more bullish the
news is, the more The Gold Cartel goes into attack mode. James Mc has brought
this to our attention time and time again for some time now. What we are
watching The Gold Cartel do to gold and silver at the moment is the best example
of that over the last 14 years. As Kitco even mentions, they have done the same
drill in Asia three weeks in a row. And the obvious hit job selling on the Comex
has been documented in this column day after day, even hour after hour of late.

There can only be one plausible explanation for the gold/silver price
action of yesterday and today … after the about as bullish news as the
gold world could get which emanated from the Fed yesterday. That explanation is
the US Government knows they have NO SOLUTIONS to the US fiscal predicament, no
solutions which will be acceptable to the kept in the dark American
public and to any politician who wants to be re-elected. The situation is bleak
and the Obama Administration/Fed fully intends to go to all out money printing
mode, so their first step is to SHOOT THE MESSENGER … which they are attempting
to do at the moment.

That attempt will FAIL. And that is because the precious metals
physical markets will overwhelm the Gold Cartel’s paper game manipulation raids
as demand will overwhelm their available supply. It is that simple. The timing
of it all is far from simple. Look out how they have been able to stem the tide
over the last year. But still, the price of gold is up over $130 for the year,
and that is after they have thrown the kitchen sink at the market. The closing
price of silver last year was $27.91. What market has performed better than
silver this year, despite JPM and their friends?

My take on what is going on here is that something awful is brewing
behind the scenes and the powers in Washington want gold off the favored radar
scene when it hits. That is what their selling intensity EVERY noticeable day is
telling me. We shall see. But, if that is the case, it should not be long until
we find out.

As far as the markets went today, the price of gold was trashed all
the way down to $1688 on the Comex. Silver fared much worse, dropping down to
$32.19 and breaking support which held for days. Silver broke OUT yesterday on
the Comex. We always talk about no follow-through allowed in the precious
metals, but this takedown is a bit extreme, even for them. The breakout meant
NOTHING, so does this hit job … NOTHING in terms of the big picture and what is
coming in the near future.

It is SO important to keep in mind that The Gold Cartel does what
they do to affect the thinking of the investing public and to affect their
psychology about the precious metals vis-à-vis the US stock market, dollar, and
interest rates. That is what this sick game they are playing is all about. No
matter how well gold performs year after year, their aim is to put it in the dog
house. Love this extremely well written email from a Café member last night
after my missive. VERY well written, but totally off the mark in terms of who is
going to prevail and why. Take it away Jack:

Re: MIDAS Bulletin: SHOUT OUT: The Cockroaches Are In Trouble … AND
An Opportunity Of A Lifetime

Just mind-boggling. Forget the 1 Tr $$$ cranked out this coming year,
alone; instead, focus on one odd feature of it that might not be PERFECT for
gold. of course, stocks doin’ just fine.

Even if all this conspiracy stuff is true (and I have owned gold
through 6 exhilarating and now frustrating years), we may need to face the facts
that those in control cannot be dealt with and…THEY win. Why keep fighting it?
Why not go with what they are going to let win: stocks, stocks and stocks. They
want us in paper and they are going to get us in paper just like FDR did. If we
try to hang onto gold after the confiscation order comes down (which I bet will
happen as soon as they relay to their bosses that they can’t keep the prices
down anymore and the fiat is getting ready to get revealed as a sham), we’ll
never be able to spend it or even show it to anyone without worrying about
whether they are feds/snitches. Those that kept gold in 1934 had to hold on for
FOURTY YEARS without being able to call on the gold (who knows how long without
Jim Blanchard). Not sure I can do that and I don’t have kids.

After today and tonight’s action, following two QEs in five months,
I’m spent. There’s no inflation; the stuff is just too manipulated; stocks go up
no matter what (except my gold mutual fund – down, down, down); if the mamrket
inproves, money leaves gold for stocks; if market worsens, money leaves gold for
good old dollars. This has become a no-win; and, even if we “win”, it’ll be a
nat’l/global meltdown where the first thing the central authority will do is ban
gold. So, even if we win, we will lose. I see no option, realistically, outside
this country. it’s all just as manipulated and collectivist as we are becoming,
if not worse.

I’m thinking of making contact with Blanchard and Sons and CNI and
unloading it all and just putting it all into Fidelity high yield and emerging
market and asian bond funds and cash and just forget it. Enough is enough. I’m
like the farmers in Shane tired of dealing with Ryker and his gunslinger brought
in special from Cheyenne. I don’t see SHane on the horizon; I see bernanke, JPM,
Hillary, Obama, etc.

***

Hi Jack,
You are WAY too smart to unload your gold and silver
here. Somehow I think that every Café member who reads this knows you won’t
either.
B

Feeback from an early reader of the unedited
MIDAS:

Bill
Im sure it has occurred to you but the same thoughts must be
going through many of your subscribers heads…me included! A little hand
holding wouldn’t be a bad idea explaining why you think Jack has it all wrong. I
would never tell the number one gold guy in the world how to run his commentary
Take this observation from a pal who has nothing but your newsletters success in
mind. The frustration being felt by your loyal followers must be off the charts.

I found Jacks observations very plausible. FWIW and food for
thought.
Norm

Love ya Norm, but THEY WIN?

The Gold Cartel is getting their ass handed to them which is why they
are going berserk at the moment. They are LOSING CONTROL and they don’t know how
to handle it … which is just why they are doing what they are right now.

Win? Them? When I first started this commentary, gold was under $300
and silver was $4 and change, getting into the $3 plus zone at one point. Look
at the closing prices today.

Win? What has the DOW done the past decade compared to what the
prices of gold and silver have done?

YES, they have won to a fairly big degree with their manipulation of
the gold/silver share prices because they have had no physical market to contend
with. Us gold/silver share investors are sucking wind at the moment, but that
will change in epic fashion. First, when The Gold Cartel and hedge fund allies
decide it is time to cover. That will be phase one of liftoff. Phase two will be
when the general public comes our way. It will be a sight to behold. Take care
Norm and have a blast on your trip.
B

 

The AM Fix was $1694.75. The PM Fix dropped to $1692.75. The Gold
Cartel raid made a significant impact on physical market buyers.

The gold open interest rose 5175 contracts to 438,761. The silver
open interest went up 1985 contracts to 144,066. The Gold Cartel, with honcho
JPM leading the way, are not happy campers and are taking their venom out on
those who are in the hunt to take them on. They won today. But, it will be a
totally different ballgame soon.

James Mc…

Crime in a flash

Bill,
Thin-trade Crimex flash crash objectives:

* Create confusion and anxiety in foreign gold markets.

* Terrorize, rout longs who carry overnight positions.
* Terrorize, rout
longs attempting to pyramid successful trades.
* Discourage and demoralize
ANY long, period.
* Create “volatility”, let pundits then disparage trading
volatility to public.
* Obliterate sell stops at the easiest possible
moment.
* MOPE, MOPE, MOPE.
* Turn it over to MSM to do the rest.

There has never been a flash crash in the history of lumber futures.
It would actually be easy to do, with possibly as little as 200 cars, yet it
never happens. Why? Because nobody is dumb enough to trade that way.
Since gold is in a 12 year bull market if anything you should be seeing flash
melt-ups, not crashes. And of course there hasn’t been a single thing
mentioned in MSM about the likely cause, which is another criminal attack. In
fact the quote below from a Reuters article is arguably the dumbest thing ever
written about gold. In particular the underlined sentences by the genius at Soc
Gen takes the cake.

“The near term risk is a stronger dollar,” said Jeremy Friesen,
commodity strategist at Societe Generale in Hong Kong. “The ‘fiscal cliff’ is
going right to the end, and that could support the dollar and take some shine
off gold.” The dollar, seen as an ultimate safe haven, is likely to attract
investors worried about the uncertainty in the U.S. fiscal situation.
A
stronger greenback pressures dollar-priced commodities by making them more
expensive for buyers holding other currencies.”

Huh? When manipulation is the ONLY possibility the boundaries for
deceit and lies are endless. The rats are cornered, and are lashing out with
their gnarled teeth. Surely this is the late stages of a manipulation that has
already had 10 lives.
James Mc ..

What we have just witnessed to that The Gold Cartel’s drive by raid
really is a crime in a flash … a crime that is not recognized outside of
the GATA camp. As per my latest rants: no free press in America, and no free
markets. The mainstream financial market press are just a bunch of ZOMBIES when
it comes to the market manipulation subject … not even allowing a he said,
she said
debate on the issue. That is not allowed by the mental midgets who
comment on the precious metals markets.

America is going down the drain. A number of us in the GATA camp
think we know why and nobody cares. It is all about spin, staying in power, and
making a buck at the peoples’ expense. That is the way it is for
now

Having worked on my Bulletin last night and getting up early
to watch the carnage in the precious metals markets, I took a rare mid-week
steak lunch at Chili’s, my local hangout out a block away from where I live to
say hello to my friend, Martha, their forever bartender and a great gal.
Naturally, I had her put on CNBC on the wide screen to watch the market action.
The gold and silver prices flashing on the screen were a downer. But that downer
was put in perspective very quickly.

One of Martha’s regulars is the attorney for the Dallas Cowboy
football player who killed his best friend last Friday night when he lost
control of his car while drunk at 2 AM in the morning. It was reported in the
Dallas Morning News this morning that the driver of the car, Joshua Brent (nose
guard), had a blood alcohol level at the time of the accident which registered
more than twice the legal limit.

This attorney arrived at Chili’s as I was nearly out the door. I saw
him surrounded by the Dallas press outside the restaurant, besieged by
reporters. Here he is with his client:

http://www.dallasnews.com/sports/dallas-cowboys/headlines/20121213-josh-brent-s-blood-alcoh
ol-level-more-than-double-legal-limit-during-crash.ece

The point is that life is relative. What the Gold Cartel did today is
egregious stuff at its highest level. But, in another month the prices of gold
and silver will be much higher and today will be forgotten. This poor soul,
Joshua Brent, will have to live with he did to his best friend for the rest of
his life. No comebacks allowed on that matter.

Gold and silver are incredible investments at these giveaway Gold Cartel
prices. The gold/silver shares are more than incredible down at the levels which
so many are trading at. It may sound like a broken record, but it is SO true. It
will be a totally different ballgame in the near future. This IS an investment
opportunity of a lifetime!

GATA BE IN IT TO WIN IT!

MIDAS

Going Geriatricidal

 

Naked Capitalism featured a piece today by Matt Stoller (Link). The not so surprising conclusion by Matt was that moving the age for Medicare availability from 65 to 67 will actually cost some lives. The article concludes that the two-year change in federal medical coverage will result in 1,261 additional deaths each year.

 

I’m reading this, thinking, “Hey, that’s not so bad!” Matt saw it differently:

 

Or we could leave things as they are, with a Medicare age at 65, and no extra seniors need die.

 
I'm not sure that Stoller is right about this. I wish he were, but the numbers say he's wrong. The fact is, hard choice have to be made, and yes, people will die as a result. The article fails to analyze the benefits of moving the Medicare puzzle around. Fortunately, the Congressional Budget Office (CBO) answered this question back in January (Link). The conclusion:

 

CBO estimates that raising the Medicare eligibility age from 65 to 67 would reduce federal Medicare outlays, net of premiums and other offsetting receipts, by $148 billion from 2012 through 2021.

 

Take the two estimates together, total Early Exiters (EEs) over ten years = 12,610. This means the overall savings comes to a very tidy $11.7m per EE. A big bang for the buck, so to speak.

 

When Congress raises the age limit for Medicare (this will happen in 2013) it will be the first step on what will prove to be a very slippery slope. There has been much talk about a dreaded "Death Panel" that will decide who "Wins" and who "Loses". Changing Medicare age availability is a Death Panel decision. It's interesting/fitting that a majority of Congress and the President will kick the process off.

The CBO should do some more studies on potential savings. Sort of roll up their sleeves and have a look, as it were. I wonder what the savings might be if some new "rules" were adopted. On the list might be:

 

-No new knees or hips after age 85.

-No open heart surgery for men over 82. (Forget about that triple bi-pass that will keep you around another five years.) Women would be eligible up to 85. (Think of the pissing match that would cause)

-A diagnosis of late stage Alzheimer's gets one on a fast track to "Hospice Care". (No meds, palliative only. Door to door, so to speak, averages three weeks)

 

This subject will be on the front page for the next year while the Medicare "fix" is tossed around. After that, it will come up regularly when other ways to "save" a few bil. are found. I figure someone has to make some black humor from this, I might as well start now. Before you toss a brick my way, consider that I'm 62 and in four years, I will be a real player on this stage. Who knows? I might even become an EE'er. This joke is on me.