Holy Sh** It Won't be Long Now!

along comes tstorey to tell us all ,don't worry be happy. If a person who is halfway intelligent looks at all the information available, and still has tstorey's attitude... good for you. After reading all the stuff I can get my hands on, I have come to the conclusion that there are real problems under the surface.. It does not hurt to have insurance.. some gold, silver a years supply of food.. Tstorey what is wrong with that? Fear is a great motivator.. Those who talk down possible future scenarios are either a troll, or just do not have a clue, or just do not like to be hit with truth.. which is it? Also.. why do you never comment on the article.. why don't you tell us all where the author of the article is wrong instead of bashing him..

now for your reading pleasure

Antal Fekete: Dress rehearsal for the last contango
Submitted by cpowell on Tue, 2009-08-25 04:07. Section: Daily Dispatches
By Antal E. Fekete
The Gold Standard Institute
Canberra, Australia
Monday, August 24, 2009
http://www.goldstandardinstitute.com/

I have written about "the last contango in Washington" before. The phrase covers the gold crisis that has been brewing under the surface in the world for 60 years due to the insane gold policies of the U.S. Treasury. As a result all newly mined gold, surpassing the quantity of all gold ever mined prior to 1947, has gone into private hoards, from which it will be next to impossible to coax out. The measure of this act of disappearance of gold is the vanishing of the basis, or the last contango.

In the technical jargon of the futures markets, the basis is the spread between the nearest futures price and the cash price in the same location. The gold market has always been a carrying-charge market -- a contango market -- due to the monetary metal status of gold. This means that the gold spread has always reflected the carrying charge, the opportunity cost, of carrying gold, most of which is foregone interest.

But a strange phenomenon has been manifesting itself for 35 years, since the inception of gold futures trading. Rather than remaining constant, the basis as a percentage of the rate of interest has been vanishing and now has dropped to zero. At the same time gold holdings registered at the Comex-approved warehouses have been dwindling. Both indicators point toward a shortage of monetary gold that appears irreversible.

The support of the paper gold markets is at stake. Without cash gold backing it up, paper gold trading is not viable.

When the gold basis goes negative, that's the end not only to contango but also to gold futures trading as we know it. Permanent backwardation in gold has never ever been experienced -- unless we imagine that there is a gold futures market in Harare. Gold is not available at any price quoted in Zimbabwe dollars. In that sense the last contango has first occurred in Zimbabwe.

Whatever paper trading of gold is still going on in the United States, it is at best a dress rehearsal for the Last Contango in Washington, which will be followed by the regime of permanent backwardation.

The meaning of this is that physical gold cannot be purchased at any price quoted -- this time, yes, in U.S. dollars.

The U.S. dollar rubbing shoulders with the Zimbabwe dollar?

Mainstream economists and financial journalists shrug: "So what? We are not watching the basis of frozen pork bellies trading either when we make monetary policy." These gentlemen betray a lack of comprehension of the nature of the present financial and credit crisis. Whatever else it may be, this crisis, first and foremost, is a gold crisis with an incubation period measured in scores of years. It is about to reach its climax.

The world appears to be totally unprepared for it -- witness the silence surrounding the gold nexus.

Even the so-called sound-money Internet sites misread the situation. They are talking about an imminent breakout of the dollar price of gold from its holding pattern below $1,000 per ounce. Such breakouts have occurred from time to time since 2001, when gold broke through the "resistance levels" of $300, $400, etc. The coming breakout is not distinguished by the fact that $1,000 is an even rounder figure than the previous round figures that have been surpassed. It is distinguished by the fact that we are confronting a world event the like of which has never happened.

It has never happened that gold was unobtainable at any price. It has never happened that all governments have defaulted on their debt obligations simultaneously.

Still, we have to explain the relevance of this to the credit crisis. It is no secret that the bonds, notes, bills, and other obligations of the U.S. government, or any other government, for that matter, are irredeemable. That is, they are redeemable in nothing but more of the same. For example, the bonds of the U.S. Treasury are redeemable in Federal Reserve credit, which is itself irredeemable and is "backed by" the self-same bonds of the U.S. Treasury. Why is it, then, that these Treasury obligations are in demand where one might think that redeemability is a sine-qua-non of issuing them? What makes people participate in this shell game? How can such a crude check-kiting scheme mesmerize the entire population?

Come to think of it, the sight of this Ponzi scheme would shudder the Founding Fathers of our great Republic.

This is not an easy question to answer. But going through all the alternative explanations one by one, we come to the conclusion that the debt of the U.S. government is still redeemable in a sense, however limited or restrictive it may be. The debt of the U.S. government has a liquid market in which it can be exchanged for Federal Reserve credit. In turn, Federal Reserve credit can still be exchanged in liquid markets for physical gold, the ultimate extinguisher of debt, albeit at a variable price.

But if you break that final link, when gold is no longer for sale at any price quoted in U.S. dollars, then the rug will have been pulled from underneath this house of cards, and the international monetary system will collapse like the twin towers of the World Trade Center. And this is the situation that we are confronted with.

Look at it this way. There is a casino where the lucky gamblers can gamble risk-free. Their bets are "on the house." This casino is the U.S. bond market. There is only one catch. The pile of the winning chips in front of each gambler may become irredeemable at the exit when the hairy godfather waves his magic wand.

http://www.gata.org/node/7716

health it is as good as gold. Good luck

In a normal market perhaps yes but this is anything but normal. The only people buying dollars any more is the Fed. That can't last long. And if the panic buying you predict doesn't ensue (because everyone knows it's the fed propping up the dollar) then it's over!

Do you really think all those countries that are rushing to to unload dollars will suddenly panic buy because the fed tries to cause it to pop?

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

here is the link for the chart alone...

http://financialsense.com/fsu/editorials/willie/2009/images/...

and you can right click save as...and get a jpeg file, which may be able to be loaded onto a page. Or if you need to convert the file to a html code.. there is a simple way to do that as well...(google cconvert jpeg to html)

not sure what you need exactly in order to load it .. but one of the above may work.

I'm putting up stewed tomatoes today! made fig preserves, and Kosher pickles, put up 3 bushel's of pink eye purple hull peas this weekend.

Maybe China is trying to destroy the US before the US destroys China, as is the plan of Obama's evil foreign policy advisor Brzezinski.

This explains it all:
http://www.youtube.com/watch?v=MouUJNG8f2k&feature=related
http://www.youtube.com/watch?v=e-KJCMWcoms&feature=related

You would be right if our spending was returning to normal levels as well. The problem becomes clear when you combine that chart with the massive increase in government spending with well over $1 trillion in deficit this year alone. That chart indicates the source of the funding for that kind of enterprise, so if foreign countries are no longer fueling our spending, where exactly are they getting the money?

This is what makes that chart so alarming. There is nothing "normal" about it.