Profit Taking… When and Where?

Posted on Updated on

Those who have been reading this blog for some time, may remember I have posted some commentary on Precious Metals miners, and energy suppliers over the last 12 months.
Oil prices - where will they stop?

In one of my missives, “Transition Vamp? Or “How the Crash will be won!”” I suggested that you might like to explore one or two companies in these markets.  In the one linked to above, I suggested that a junior miner on the London AIM market [JLP] with a major platinum resource in South-Africa, could be worth a punt.   If you had decided to do your due diligence, and bought some within a few days of this, you could have bought shares in this particular junior at the miserly price of 1.3p per share.

Today you would be glad to know, the price is a more realistic price of 3.78p. If you have bought, then I now suggest taking some profits, and leaving the rest to run – essentially for free. It is possible that the price has run up a little too far, too fast, and a pull back may ensue, which may support topping up or using your profits to buy back more than you originally held (Top-up at below 2.5p).

At 3.78p, your investment will have returned a nice 190% profit. The other company mentioned back then “Lightbridge” is unsurprisingly not doing so well, though as I recently said in my last post, this company is moving its business forward, but its price has languished, falling in line with the general market for commodities. The price if you had bought in October last year would have been $1.85 (give or take 5 cents), and today’s price is now a very lowly $0.80.

The fall in Uranium prices coupled with a fall in oil, due in part to Saudi-Arabia not cutting back production in late 2014, has meant the price differential between various energy sources is not as stark as expected. This situation is likely to turn around as the glut in oil due to fracking, and the end of the START treaty uranium glut disappears, meaning the fall in prices of these materials begins to turn around. This differential in energy costs will lead Nuclear facility operators to look for ways to be more cost effective as materials, and wages begin to eat into profits, and Lightbridge’s recent revenue falls should rebound.

It might be prudent to add to this position if/when oil breaches the psychological $60/bbl mark, and Uranium prices begin their rise again – as I expect within the next 6-12 months.


The New Revolution

Posted on Updated on

Most people don’t know it, but there’s a quiet revolution going on. A revolution in energy supply.

Ever since the dawn of the first industrial revolution, when wood burning gave way to the first water wheels and windmills, and lignite burning, peat burning and then coal, energy has driven the economy. The new energy materials and technologies spurred the industrial revolution, releasing and then capturing that energy made mass production possible, bringing consumer products to the masses.

A second revolution happened in 1901, as oil which had been used in lamps for centuries, and used in petroleum as early as 1870, became cheap enough to drive the second wave of energy use, when Spindletop reservoir in Texas gushed forth, and the U.S. oil supply doubled in an instant. The oil-well took nine days to bring under control, and supplied 100,000 barrels of oil per day, wasting almost a million barrels of oil. However, that spurred further exploration, and all that added oil, made the mass-produced car, the plane and the modern economy possible.

Diesels, plastics, pharmaceuticals and modern agri-business with its NPK based fertilizer, were all made possible from oil. The discovery and development of these new technologies enabled them to win both world wars as technological advantage in the form of military superiority and the cost of moving men, supplies and machines to their required location all worked in their favour. But the spike to $147 per barrel in 2007, plus the talk of “Peak Oil” which was prevalent during the early 2000s, ushered in research into alternatives. And the dominance of oil producers in the unstable Middle-Eastern region was a powerful driver.

Read the rest of this entry »

The End of Can Kicking?

Posted on Updated on

Grexit Stage Left?


It has been a month since I last wrote, not because I had nothing to write about, but rather there were too many issues to discuss fully. What with, eastern Ukraine’s proxy war, Syria’s unrest sponsored by the CIA, Libyan boat people, Tunisian Terrorists, deaths in Kuwaiti mosques, French beheadings, a new Government in the UK., and Greece’s public spat with the ECB, Germany, the EU, the IMF and those behind the scenes pulling the strings. However, the potential Greek default appears to be the most concerning, and pressing.

As the Greek government approaches the end of the debt issue, by calling upon its citizens to vote in a referendum on the final offer on the table from the Troika (The EU, IMF, and ECB), we have to ask ourselves is the end of the road for this can kicking contest in sight?

The Greek people now have to decide in favour of its citizens by defaulting on its debt, and subsequently leaving the Euro or in favour of remaining in the Eurozone, and paying the Troika. Since 2006, Greek GDP has fallen by over 20%, and its debt is up by 50 percent to 320 billion euros.

If Tsipras, and Varoufakis and the populace, choose the Greek people, the question will then arise as to whether Greece leaves the EU, and NATO, and accepts a deal proposed by Russia.

The deal involves the Russians building a gas pipeline through the Black Sea, and either Bulgaria, or Turkey that will end in Greece. The pipeline would net the Greek government transport fees, and allow Russia to sell its gas to European nations. In the meantime, Russia would fund Greece’s public debts.

Of course, the U.S. doesn’t want this to happen, as any extra revenue for Russian Gas, only strengthens Putin’s hand.

The U.S. would prefer to build a pipeline from the Arabian Gulf, originating at Quassumah, in Saudi Arabia, through Iraq, Jordan, and Israel or if not Israel – then Syria – with President Assad finally out of the way…In other words – countries who are U.S. allies (or vassal states).

But this leads into a further fly in the ointment. Syria, has already signed an agreement from the same gas-field with Iran for just such a pipeline through Shia controlled southern Iraq, (which is why the CIA funded ISIS to attack Iraqi, and Syrian assets) only this particular nine-headed Hydra is outgrowing its masters to such devastating effect. (at least to French/British and other nation’s citizens)

America has been trying to cut off the finance from oil sales to Iran but has failed as China, and India, both rely heavily on oil from this oil-rich state.

Turkey too, as a muslim state, has paid Iran a great deal in gold for its oil, and has over the last five years bought gold from its citizens to pay for this liquid energy.

The gas field mentioned in the Arabian Gulf, found by Iran, who is the world’s largest gas holder with some 34 trillion cubic meters of exploitable reserves, allegedly holds some 11 Trillion cubic meters.

BUT, the powers that be – (TPTB) – (think – the Fed, and its Bank owners – the Rothschilds, Rockefellers, Seifs, Warburgs, Bakers and Morgans et-al) have overseen a staggering $113 trillion increase in total debt worldwide. The global debt load has increased dramatically from $87 trillion to $200 trillion just since the year 2000. And they’ll need growth in western economies to meet those payments.

The problem has got so big, yet TPTB, refuse to recognize the problem. They know that if they allow Greece to fail tomorrow, it will be Italy next, then Spain and Portugal, probably France then Belgium and eventually the entire financial system.

A Greek default would not just lead to the 320 billion euros disappearing from the system because the lending banks and institutions are all levered up to 50-times that amount. But even if we only take a figure of 20-times leverage, it would mean that over 6 trillion euros could disappear out of the system.

And yet, according to Dr Paul Craig Roberts a Greek default could – ultimately – prevent World War III.

We shall see, as this can maybe has reached the end of this particular road.

WHY has the Gold price NOT Risen exponentially – YET?

Posted on Updated on


Central Bank Manipulations?

The reason Gold has not exploded yet, is because Gold as a physical asset, is undervalued in the West (in general), and highly valued in the East for historical reasons. (Partly as a result of Western Central Banks, having too much power, and thus ensuring regulation gets passed to limit Gold’s usefulness as a store of wealth and partly, because the Chinese had their education in paper currency back in the 11th Century, and others in the Far-East had their education more recently, with the currency crises of the late 1990s.)

As Gold heads east, it is in the interests of those who wish to accumulate it, to play devil’s advocate and allow the manipulations to continue. As I stated in my last post, both Russia and China, are unimpressed that when they sell goods on International Markets, they receive a depreciating currency, that can be conjured up out of thin-air [or to be more accurate – digits on a computer] by its manipulators…

When the Tide goes out (to borrow a phrase used by Warren Buffet) i.e. When Gold becomes part of the process for settling International Trade again, then we will see who is wearing no shorts – (i.e. a fast-reversal back to Bretton-Woods) i.e. which countries, are spending more than they earn – Internationally speaking – and who is managing their economy well, by exchanging physical goods, for physical goods (in the form of physical Gold, or a gold backed currency which can be exchanged for Gold)

China’s approach is therefore like an aeroplane coming into land, and on the approach path to forcing the world’s trading nations to stop using currency inflation to buy up scarce natural resources, and Gold will at that time achieve its real value.

That time will happen when the first country breaks ranks, and demands Gold for its goods, and has enough Gold to withstand a draw of its currency for International Trade, and the only country that comes even close to that is China (and perhaps Russia) and therefore when China finally – officially – releases its Gold holdings – which Pravda in a recent article suggested was 30,000 tonnes, (because they have re-smelted their Gold, and re-cast it into 1Kg bars) then the value of Gold will achieve the exponential rise we have all been expecting.

By end 2015, China, has to float its currency, (WTO regulations) so perhaps is hedging its bets, by holding huge Gold reserves to act as a floor under the value of their currency. Reference –

That to me makes perfect sense. It will also mean those countries of Africa, South America and other developing nations, who sell raw materials, will experience rapid rises in living standards, and many will end up paying their political masters huge sums, unless the corruption that has been endemic in some of those countries, suddenly vanishes. (Just as happened during the 1970s which may in itself cause other problems as it did, during the decade and the one following.)

Of course, the poor westerner, will experience rapid price inflation for all their most important needs. And those countries who use the American Dollar as their currency system, would be well advised to consider a replacement.

Food, and raw materials, such as oil, gas, copper, tin, lead, zinc, and precious metals, too will all be more highly valued.

Those with good stores of these commodities, will flourish, those who depend on government largesse for their income, will not fare so well.

And paying for things internationally, will require some form of internationally accepted money – one I have been reading quite a bit about in recent weeks is BitGold.

This manages to marry the best of both crypto-currencies, and precious metals.

To widen your reading and viewing material, you might like to visit these channels on You-tube, and search terms and web-sites.

Recommended YouTube Channels:
Ron Gibson – WhatReallyHappened 2015 (Mike Rivero),
Gregory Mannarino,
Mike Maloney – – WealthCycles,
RT BoomBust,
RT KeiserReport,
Cambridge House,

YouTube Search Key Words:
Dollar Collapse,
Dr. Paul Craig Roberts,
Alasdair Macleod,
James Turk,
Chris Powell,
Jim Murphy (GATA),
G. Edward Griffin,
Peter Schiff,
Marc Faber,
Jim Grant,
Jim Rogers,
Rob Kirby,
Jim Sinclair,
David Morgan,
John Williams, (or
Catherine Austin Fitts,
Bill Holter,
Ellen Brown,
Nomi Prins,
Andrew Hoffman,
Ron Paul,
Axel Merk,
John Rubino,
Mike Maloney,
Jim Willie,



The Death of the Petro-Dollar? The End of the Dollar Hegemony? The End of America as we know it?

Posted on Updated on

Anyone who has followed this blog for any length of time, will know, I am a Gold, Silver and Crypto-currency nut (not literally but figuratively). And I’ve been predicting the demise of the dollar as long, though to be honest I wasn’t really sure what the trigger would be. At least, that is, until now.

And those who have read assiduously, will know that the current Gold, Silver and other commodities prices, are possibly (probably?) manipulated by huge American Banks – like JPM, and Goldman-Sachs, Bank of America, CitiCorp, Wells Fargo, Wachovia and the other huge American corporations on behalf of the Federal Reserve, and those who own it – the six or so founding families..

Many will not know why though. They may hazard a guess, but they are likely to be wrong.

The American Dream, has become something of a nightmare in the last few decades, for those at the bottom of the economic heap, as U.S. wages have been compressed for working folk, primarily because large American corporations began outsourcing manufacturing labour to Asia – Indonesia, Malaysia, Korea, India, China, Vietnam, and the Philipines et-al, in the 1980s.

Of course, we’ve all seen China grow at rates we could only dream of in the west.

China, was courted back in the Nixon era, eventually, it got most favoured nation status, and entered into discussions with the World Trade Organisation some years ago, which has involved opening up its markets, and freeing its currency to trade on international markets – which it must do by the end of 2015.

China’s ascendancy to industrial super-power since 2000, has been rapid, and it has been growing at between 7-12% since the 1978 proclamation, by China’s ruler – Deng Xiaoping, that: “there was no virtue in being poor”.


Of course, China now has the second largest economy in the world – after the U.S., and wants a seat at the table of major economies. And the entry ticket to this select club of nations: America, Japan, Germany, Britain, France, Italy and Canada – the G7 – is a hefty one.

China, India, Russia, South-Africa and Brazil, – the BRICS – as well as other smaller economic nations make up the G20, but those meet less often, and can influence matters much less.

China, wants a place at the top table and to do that their currency has to be International, and held in the same high regard as the others, and to do that, they need to hold a similar amount of their GDP in Gold reserves as those other nations.

The Americans, claim to have a little over 8,100 tons of gold, with a $16.5 Trillion economy, and Europe has over 10,500 tons – (Germany alone reputedly has 3,700 tons) of Gold. In percentage terms, these figures represent from 2.7% – 4% of their GDP in gold reserves.

However, according to Jim Rickards, those precious metals price manipulations, are done to allow China to accumulate enough gold for when the Renminbi(YUAN), becomes part of the SDR – “The Special Drawing Right.”

It is true that China, is obliged to un-peg its currency to the dollar by the end of 2015, so maybe buying all the gold it can, is an attempt to keep the Yuan, as close to the dollar as it can, however, Jim Rickards and Jim Willie, have a slightly different take on things.

If China IS trying to match the U.S. which would suggest a similar Gold holding of 8,000 tons then why have they also been buying up Foreign Gold mining companies, and buying the Gold from artisanal miners in Africa, at the rate of circa 40 tons per month, at spot prices?

As you may well know, back in April, 2009, China last disclosed its Gold holdings, at a mere 1,054 tons, which itself was a huge increase from previously disclosed amounts. But in recent years, China was buying over 100 tons per month, though how much they bought surreptitiously we can only speculate.

China intends to be one of the top dogs at the economic table, and its long term plan has been well researched, and intricately progressed, from their 1978 early beginnings, when then China’s ruler – Deng Xiaoping, issued his now famous proclamation.

Since then, China has increased its Gold holdings, slowly at first, but with increasing rapidity, and has been involved in using its dollar reserves to divest itself of some of the $3trillion dollars in value, and $1.4 Trillion in U.S. notes and treasury bills, it has accumulated in the last 15 years by buying Gold and other tangible assets.

Saudi-Arabia has its own plans too, ever since President Barack Obama offered the hand of friendship to the Kingdom’s sworn enemy – Iran – in an effort to reduce tensions in the middle-east, which have risen partly as a result of Federal Reserve policy, where loosing the printing presses on an unsuspecting world after Long-Term Capital Management fell under in 1998, caused rapid currency inflation.

The excess currency, has bid up all kinds of goods, but as usual, mostly food and other items for those on low incomes, and that inflation contributed to problems in the middle-east, which stoked old hatreds.

The source of these problems though lead back to that day in March 1973, when King Faisal of the Kingdom of Saudi-Arabia, met with Henry Kissinger, and the Secretary of State made the King an offer he could hardly refuse.

In return for the Saudis selling their oil in U.S. dollars, and investing those dollars in U.S. Treasuries, the U.S. would protect the Saudi Kingdom from all enemies, domestic and foreign.

And so the scheme of the Petro-Dollar was born. The Saudis got their protection from the Soviets, and others who might covet their immense oil-fields. The Americans, benefited by having a strengthening dollar, due to huge demand for them, and all the other OPEC nations were obliged to follow suit, especially if they wanted a strong currency for their oil, and a share of international oil business, which they did.

But after 42 years, is that all about to come crashing down around the U.S. and our ears. The King who made that agreement with the Americans is now dead, and the Saudis, are angry at the Americans cosying up to Iran, and also at U.S. production levels due to fracking. They’ve lost their biggest customer and gained a biggest competitor.

The Saudis, had a position of importance in the world, given the number of barrels of oil that they produce – circa 9.5 million barrels per day, they were the swing producer. When the world needed extra oil, the Americans could make a phone call, and the Saudis could turn on the taps, and the price would come back down.

But, with Russian production at similar levels, and the Americans now producing almost 10 million barrels per day, things have changed.

The Saudis want to protect their market share, and they are a cheap producer. Al-Naimi, the current Saudi Oil Minister, led the Organization of Petroleum Exporting Countries to its Nov. 27 decision to keep production unchanged, ignoring pleas for a cut in the group’s output by several countries: Venezuela, Algeria and other members that depend on higher oil prices to balance their budgets, saying: “If I reduce, what happens to my market share? The price will go up, and the Russians, the Brazilians, U.S. shale oil producers will take my share,” Al-Naimi told the Middle East Economic Survey last month. “Whether it goes down to $20 a barrel, $40 a barrel, $50 a barrel, $60 a barrel, it is irrelevant.”

U.S. exploration and drilling on fracking sites has exploded in the last few years, and the price of oil, as supply has increased, has exploded to the downside from its $147 high in 2007.

When all the unprofitable oil-wells close: the fracked wells, the tar-sands, and the deep water wells, and the exploration that has been postponed or cancelled lowers production, as low oil prices are affecting many highly leveraged players, the oil supply will fall too. And as output and the price falls, the only producers left will be the low cost ones, producing at less than $40/barrel.

The Americans are not giving up though, as they use technology, and lower headcount to lower costs.

BUT, the Saudis may be about to upset the U.S.’s apple-cart. And this is behind my prediction for the dollar.

News has reached me that the Saudis are conducting secret talks with China. This may be yet another of the 24 (so-far) bi-lateral trade deals that China has made to use Yuan for trade – eschewing the dollar for international trade.

If, as I suspect, the Saudis settle their oil-deals with China in each other’s currency, it will do two things.

The first is that they get a new customer, to replace their most reliable one for the last 5 decades, and one that will pay with a currency that is set to strengthen.

But, the other thing that happens is that most, if not all, of the other OPEC members will probably follow suit. And THAT will be the end of the dollar, and the U.S. way of life that they’ve known since the end of WWII .

As the dollar falls, interest rates will have to rise in the U.S. to encourage people to hold dollars or buy treasury bonds. Derivatives linked to the currency and the U.S. economy will collapse; Banks will fail; and we’ll get the bail-ins that have been legislated for, and tested in Cyprus.

International trade will collapse, house prices will follow as foreclosures take effect, the ripples will spread to Europe.

Spain, Italy, Greece, Portugal, Ireland, U.K., France, Belgium, Austria, Poland, Ukraine, might all experience bank runs.

Even China may experience some difficulties, and money will flood like a tidal wave into the only asset class, where no-one else is liable – Precious Metals.

In less than a month, we could see Gold and Silver prices balloon, and by Christmas, those 10,000 tonnes I suspect that China now holds, may be several times their current value. Any Treasury Bills held as security against other assets as collateral, will flood to be sold, and the dollar will lose its status as the World’s reserve currency.

If this happens, by 2016, China, will be the number one economy, oil will be back over the equivalent of $100 – possibly as high as $200-300, and the world will experience “Credit Crunch 2.0 – The Meltdown”

Middle-class Americans will lose the feather bedding that the Fed has provided for all these years, and the U.S., will be technically insolvent.

Jim Willie believes events coming to America, partly as a result of the AIIB, and the Chinese domination of Trade will force a Gold backed currency using gold Trade Certificates on international trade, and that will only add to the Dollar’s woes.

This will be a back-door introduction of a Gold Standard, and when that happens, it’s game over for the dollar.

See a recent interview here:

Part 1

Part 2

(April 2, 2015)

Jim Willie Quotes:

“Q.E. is a lie… It’s a bail out of Wall Street, and Corporate Banking” – and the AIIB is the creation of a BRICS’ Central Bank.
AIIB Founder Members – U.K., Australia, encouraged others in the Western sphere. France, Germany etc..
Turkey – the gateway to Afghan narcotics production.
Greece & Turkey – end of the pipeline for Russian Gas.
Yuan/RMB Trade swaps – Non-dollar denominated.
Iran/China worth $150 BILLION in trade…

Final word? “Game Over for the Dollar”

In order to protect yourself, you need to do several things. But buying precious metals, silver, gold and digital currencies that no country can inflate away – crypto-currencies – will help.

If you think that this is unlikely, it is, but it is possible. And if that scares you, it should – it does me.

See the links above right.

A New Russian Winter, or the Calm before the Storm?

Posted on Updated on

Some weeks ago, before Xmas, I floated the proposition that “The West” might be about to shoot itself in the head, heart, AND foot, just to make sure.

My reasoning was that Russia, might be about to demand payment in Rubles for their gas and oil and other things, which would effectively shoot the west in the aforementioned organs, as they sought to ratchet up pressure on President Vladimir Putin.

The U.S. through its monetary influences and power in International Organisations – the World Bank, the IMF, BIS, Federal Reserve, and of course the ECB, Bank of England, U.N. and Bank of Japan etc, is waging a war against Russia, in a vain attempt at defending and extending its influence in the middle-eastern region, and throughout the near east, ostensibly to protect itself from the rise of China and a resurgent Russia. (more of which later)

The beginnings of this madness began with the end of the Soviet Union. The west in NATO, and through European organisations made agreements with the Soviets, to not encroach into former soviet countries, yet many of those countries, in order to avoid the risk of re-colonisation, chose to join the North Atlantic Treaty Organisation (NATO) and/or the European Union. (E.U.). This was also of course to strengthen the U.S’s Federal Reserve backed monetary system, which as I’ve mentioned numerous times is now no longer backed by physical precious metals.

Of course, when the U.S., under its attempt to extend its influence in the region, encouraged the western larger part of Ukraine to throw off its recently elected leader as it were, to rub Putin’s nose in it, and incurred the wrath of the Crimean Russians, and the Russian speaking ethnic Russians east of the Dneiper River, it essentially wandered into Russia’s back-yard, and that was the straw that broke the camel’s back.

The Crimeans, who are predominately ethnically Russian, were backed into a corner, as the new western backed government in Kiev, made the Russian language illegal.

Imagine if you were a Welsh speaking Welsh person, and the incoming British government, made your language illegal? Or Irish? or Highland Scottish and they tried to make Gaelic illegal?

You’d be pretty PO’d too…

The Crimeans, who felt Russian, spoke Russian, and historically WERE Russian – If we remember our history – Balaclava, near to Sevastopol, on the western coast of Crimea, is where the British Light Brigade, charged the Russian guns, to such detrimental effect, in 1854, and it is remembered in the rousing poem by Alfred, Lord Tennyson. So, a hundred and fifty years ago, this part of the world, was as Russian as it surely is today.

The President, of Russia, kept a low profile recently, and even disappeared from view for ten days, prompting mass media speculation by western media about his health. Of course, when he reappeared, the President issued a wry smile, and joked about “gossip”.

But behind the scenes, the Russian bear is fighting back against the Dollar hegemony. Of course the war of words is being ratcheted up as American military conduct war games in Estonia, this week-end, a former Soviet satellite nation, and right next to the Russian mainland.

Guyane Chichakyan a journalist for RT, posed an interesting question to one of the U.S. government’s PR spokespersons today (Saturday) when she asked Jeff Rathke of the U.S. State Department: Why was it that when Russia conducted military exercises on their own soil, it was supposedly raising tensions, but when Americans conducted military exercises several thousand miles away from home on Russia’s borders, it was in the guise of international peace and security.

The PR guy nearly choked on his reply, denying that they had ever said such a thing, to which, RT showed a clip of Jen Psaki of the U.S. State Department, on August 14th, 2014, doing just that, when referring to events in Ukraine and close to the Ukrainian border. As I mentioned some months ago, the next world war has already begun as a war of words, and for people’s hearts and minds. Every channel, both public and private will be used. It will in all inevitability end in a military war, though perhaps not on such a full-scale as the last one in 1939.

But perhaps also the anti-U.S. state of mind is gathering steam… As I mentioned some weeks ago, Britain applied to become a founding member of the AIIB (Asian Infrastructure Investment Bank) the alternative to the U.S. dominated World Bank and IMF, and we hear from the New York Times, that now Germany, France and Italy wish to join in defiance of U.S.’s (cough) “requests”.

Perhaps the dollar’s end as a major world currency is finally coming to an end, as a result of the mass Q.E. exercise of recent years.

It is time we all engaged our brains.

And then last week, I read this… which discusses just that.

If a shooting war does begin in earnest, money – hold in your hands money – will allow you to survive the inevitable inflation that will ensue, and the grey market will offer up far more than the government enforced, and controlled ones. If you value your freedoms, liberties, and the health and well-being of your family and friends, I strongly suggest you begin preparing – if you haven’t already.

Gold and Silver coins and widely accepted silver and gold ingots of widely known mints will prove to be good ways to secure your own future “essentials”. And Bitcoin, and other [Alt-coins] will enable international transactions. You can begin your own FREE collection of these precious [Alt-coins], when you set up an account by merely supplying an e-mail address.

We’re all slaves now…

Posted on Updated on

Over the previous weekend, I bought a DVD, of a film, I’d been hoping to watch for some time. I would have gone to the cinema, but my wife prefers Rom-Coms, to historical dramas, and my friends all live disparate lives, so I had to watch it home alone.

It featured that giant of the acting world – Daniel Day-Lewis, in a role he was nominated, and won an Oscar for, having been directed by Steven Spielberg – Lincoln.

The film tells the story of Lincoln’s finals months, as he negotiated with the Confederates who were on the point of being beaten in the Civil War, and also with his own Congress to add the 13th amendment to the constitution. Sally Field played his wife, and her part conveyed the pain that she and Lincoln had to endure as their sons enlisted, or were killed, and as his wife blamed him for their loss.

The 13th amendment effectively brought an end to slavery, and set forth the proposition, that all men were created equal in the eyes of the law, and thus the ownership of another human was contrary to God’s Laws.

The final debates took part in January, and after some political back-slapping and chicanery; The vote, took place, if the film was at all accurate, on 31st January 1865 – almost exactly 150 years ago. The Civil War ended barely three months later and the peace treaty was signed in April of that year.

I mention this, because as a resident and citizen of the U.K, like so many U.S. citizens, the politicians have so indebted us, as to effectively make us all debt slaves to the banksters.

When a Central Bank creates money out of thin-air, to buy up assets, the Bank owners effectively are able to buy assets on the cheap, that they can either sell later at inflated prices, or use to earn income from as a “Rentier”. Bonds being the case in point.

The term “rentier” derived from the French term just prior to the French Revolution, when the various kings, but especially King Louis XVI granted privileges to certain nobility and others who were similarly closely connected to the money power. These privileges granted (for example) the right to collect a toll on a bridge, river crossing or road.

The right to be the monopoly supplier and thus to extract monopoly profits from the citizenry, who became increasingly disenfranchised, dissolute and the poorer while the idle rich were kept in the lifestyles to which they felt obligated.

However, these changes over time, slowly strangled the economy to the point where free trade was stifled. To paraphrase Mrs Thatcher who once intoned something akin to – “They know the price of everything, and the value of nothing.”

These changes ultimately led up to the Revolution, and the former wife of the king – Marie Antoinette issuing her now infamous phrase. When she asked the king why the people were revolting – his reply was “they have no bread” (or words to that affect) to which her reply has become the stuff of legend: “Well let them eat cake.”, though historians suggest this was just “journalistic cliché”

Although these events were important, it wasn’t the real source of the revolution – that was probably because of the financial situation. John Law, a Scot, had introduced in the early 18th century a financial system that inflated land and property prices, disenfranchising those without property, though the economy was also not healthy due to poor harvests, rising food prices, and an inadequate transportation system (due to those privileges mentioned) that made transporting of goods costly and therefore food even more expensive.

The sequence of events leading to the revolution involved the national government’s virtual bankruptcy due to its poor taxation system and the mounting debts caused by numerous large wars between the British and the French.

However, the Americans too once were being bled dry by over taxing authorities in the form of taxes from King George III, and this led ultimately to the Boston Tea Party, where British Cargo Ships were boarded in the dark of the night, and their cargoes of tea bound for England were thrown overboard into Boston Harbour. Thus began the American Revolution.

Which leads me to today.

In the world of offshore asset protection and personal finance, you nearly always come across the claim that there are only two countries that actively tax their residents’ worldwide income: the United States and Eritrea. All other countries only tax income earned at home, though the UK is making steps in that direction.

But, that rule is apparently no longer true.

It turns out that in the early 1990s, Chinese tax officials went on a series of fact-finding missions around the world. One team enjoyed what The New York Times describes as a “long visit” with the IRS, and came away with “a two-volume bound copy of the U.S. tax code and a five-volume copy of I.R.S. regulations.”

After reviewing the materials, the Chinese government decided to write a tax code that would allow them to tax their residents’ worldwide income … the only problem is, they had no idea how to enforce it. And then FATCA came along. Now China knows how to achieve the same.

And given the recent spending on saving American, and other nation’s Banks, the Federal Reserve, have now indebted the people of America and the customers of Europe’s bailed out Banks, to the tune of more than $30 trillion.

With just 325 million Americans, and according to recent evidence, only 63% of the population actively engaged in the workforce, paying that debt has only two possible outcomes – little possibility, and no possibility.

Roughly, 180 million taxpayers, will need to pay almost $95,000.00 each, plus interest (whenever interest rates begin to rise) to pay down this debt, and that’s before any further spending by the successors to Obama’s legacy, or of the unfunded liabilities in medicare, medicaid, pensions or social care.

This indebtedness, is the basis of modern slavery. The UK debt per household is not quite as bad, but is bad enough. the last time I calculated it, it was a mere £76,000 per household of four, but when you break it down to taxpayers, it goes way up.

So you can be forgiven for trying to protect yourself. In the years that follow, I expect governments on both sides of the Atlantic to come after retirees pension pots. We hear so much of how political parties have learned their lessons in regards to spending, but people have short memories, and the parties have too often broken promises, then asked for forgiveness afterwards.

But, one of the ways that you can protect yourself, is with precious metals.

I know, you’ve probably heard this too many times over the last 15 years… You’re probably thinking – “What makes you think precious metals are the answer? “, or “Yeah, right!”.

In the last 15 years, Central Banks have again begun buying Gold, after 30+ years of sales, and falling interest rates, many have asked for their Gold back – Venezuela, Holland, Austria, Germany, or asked to audit their holdings – like Australia.

China has been buying up Gold like there is no tomorrow. India, has historically been the world’s largest buyer, but this has now been overtaken by China’s insatiable lust. And China has been covertly buying from its wholly owned miners, as well as using its huge dollar reserves to buy on the open market, as the Gold price has fallen from its high of 2011.

In fact Jim Rickards has mentioned that he believes that the intention is to protect its huge dollar reserves as the expected dollar collapse occurs, and they’re buying using the dollars they’ve earned selling to the U.S., and loaned the U.S. buying up the Treasury Bonds that have been issued over the last 8+ years but it appears they are now, along with Russia, net sellers of Bonds, and as Jeff Opdyke, Investment Director of Sovereign Society has regularly posted, when China announces its official holdings to the world – all hell will break loose.

Because now, they’re increasingly worried about the value of those dollar bonds, and as so many attest, the Chinese are masters of the long game.

It is even possible that China, through the BRICS Development Bank, which Britain recently joined, is seeking to back its currency (at least partially) with Gold, giving it the status that the U.S. has hitherto had.

As inflation begins to pick up in the years ahead, the urge to buy gold, to protect large dollar holdings, will gain traction, and all assets that rise in value with inflation will be chosen as the protection of last resort. But any asset that is the liability of someone else, that may fall to zero, will be sold. And what happens to any asset when everyone wants to sell at the same time?

As interest rates rise, loans will get more expensive, Bond values will fall, and loans will get called in.

Asset values, secured against loans, such as mortgages on property, will fall in value, just as they did in 2008, and that will mean we are back where we were in the “Lehman moment”. Except now, the debt load worldwide, has risen to such a size, that there is no-one big enough to bail out the Central Banks of the world.

Then governments will do what they have always done – seize their citizen’s wealth.

Banks that fail, will seize their depositors money – Cyprus times ten – and Deposit Insurance will not be enough to save the Banks – too Big to fail.

Only precious metals held in the hands, or in secure vaults as custodian assets in safe political environments, with a history of ensuring the sanctity of custody and ownership – not deposit boxes, which governments have now legislated are Bank’s assets, will be safe.

Overseas held precious metals miners too, will mean an opportunity to increase your wealth as the coming collapse unfolds.

One junior miner with assets in at least four countries in Africa, with 18% of a Diamond mine in South-Africa, a 75% ownership of a Nickel mine and smelter in Zimbabwe, a similar ownership of a Gold mine and refinery in the same country, Diamond assets in Angola, and a growing asset base in Democratic Republic of Congo, with a huge gold-copper find there.

To-date, this 9 kilometre rift has only had 3 kilometres explored, and already 2.9 million ounces have been defined as a resource. This miner has a P/E of just 1 (meaning the company earned as much as its company value, in just one year)

Anyone, who has studied markets for any length of time, knows that on average a healthy PE ratio of about 15 is considered normal. Values in excess of 20 are considered expensive, and values below 10, are considered cheap. So a value of 1, means that if the value of the company increases 5 fold, it would still be cheap. I’ll leave you to draw your own conclusions…

And this mysterious company is? Mwana Africa on two exchanges – London (AIM: MWA.L) and is rumoured to be the target of a hostile takeover.

Of course, this is not a recommendation to purchase, but perhaps an instigation to do your own research…

And if silver is more your thing… One company I have followed for several years which to be honest has only just managed to survive the onslaught of the falling silver prices from the highs of 2011 down to the current silver price of around $16 might be worth your investment research. For many silver miners, the current silver price is below operating costs, but this miner, which was a producer for several years using a toll-mill agreement (i.e. Leasing someone else’s mill and smelter) has carefully managed its finances, and built a refurbished smelter on its own property, such that its operating costs are now lower than the average.

It is about to begin its operations anew, after the 2 years it has taken to establish itself as the silver price begins its rise afresh.

There are many, who feel that the silver price, that has fallen so low, will equal the price of gold, as Silver’s industrial uses rise, silver has a wide range of applications. It is found in jewelry, electronics, batteries, mirrors, solar energy, and water purification, just to name a few (10,000 and rising) and the amount of available silver falls. Seventy five years ago, as U.S. president FDR, confiscated that nation’s silver (and Gold), the above ground stocks of precious metals had a 5:1 ratio in favour of silver. In 2013, that ratio had totally reversed, and there was now a 5:1 ratio in favour of gold. Furthermore, there are those who think we may run out of available mine-able silver – TOTALLY – by the mid 2020’s.

Silver is used in small amounts, so small, that recycling would be so costly as to make it almost impossible to achieve economically. And we currently use circa 680 million ounces each year. Though demand in recent years has risen so far, and so fast, with U.S. Silver Dollar Eagle sales rising to previously unheard of levels, that the current price of silver, which is widely believed to be manipulated to protect the dollar hegemony is likely to rise spectacularly, when the price can no longer be held down.

There are a number of reasons why silver may begin its meteoric rise this year.

India is the single largest consumer of bullion in the world. As the silver price went down globally, consumption went through the roof in India. India’s first quarter 2013 silver demand was up to $1.78 billion — a 311% increase from the previous year. In the first eight months of 2013, silver imports in India reached 4,000 tons, more than doubling imports during the entirety of 2012.

There were two driving forces behind this trend. First, India placed extremely tight restrictions on gold imports. As a result, sentiment in precious metals shifted towards silver. The second factor here is inflation. With the Indian Rupee inflating a staggering 9.3%, it’s no wonder the nation was buying as much silver as they can get their hands on. The peak silver import hit 5,819 tons in 2013, which was the all-time highest it had ever been.

Industrial applications for silver make up nearly half of global silver consumption, and a rebound in global manufacturing is going to drive up demand. The JP Morgan Global Manufacturing PMI has indicated growth for 19 months straight, while factories in the U.S., UK, and Asia reported increases in activity.

In 2013, there were two devastating landslides at Rio Tinto’s (NYSE: RIO) Bingham Canyon mine in Utah, one right after the other. Over 165 million tons of rock went down to the mine floor, suspending production indefinitely.

This event was, without exaggeration, a catastrophe. It was called the biggest non-volcanic landslide in the history of the United States, and is considered the first landslide to have triggered earthquakes (instead of the other way around, which is common). Fortunately, no one was injured by the slide.

The Bingham County mine is the second largest silver mine in the U.S. and accounts for a staggering 16% of national silver production. So we’re talking about four million ounces of silver per year that have essentially vanished — a strong catalyst for a rise in prices

Silver hit its peak value in 2010, going from $16.94 per ounce all the way up to $45. Since then, the price has come down, but demand hasn’t – it has only grown.

In the first quarter of 2013, silver ETFs purchased 20 million ounces of silver. And in June of 2013, the world’s largest silver fund added a record of 572 tons to its inventory — more than all of its 2012 purchases combined.

This is incredibly important, because it shows us where smart money is going in the market.

And the company I was telling you about has a property in Zacatecas in Northern Mexico, a historical silver mining district. Four rounds of drilling have identified 50 million ounces in the proven category, and 80 million ounces in the probable category, The company is Arian Silver (AIM: AGQ.L) and with only 33.9 million shares in issue, at circa 30 pence, when the silver price rises, this company could reach the dizzy price of £10.00, valuing this company at a mere £330 million.

For the company to achieve this meteoric share price rise, silver would have to achieve the price of around $100, and for the company to produce circa 500,000 ounces per year. Given that the company may hold circa 150 million ounces to 200 million ounces (or more) once the fifth round of exploration completes, production of half a million ounces would mean a possible mine life of 400 years if all the minerals are recoverable.

Inevitably we can not know when the Gold and Silver prices will rise to that extent, but it is my sincere view, that we are about 3-5 years away from the steepest rises, but that we may see smaller rises over the period between now and then.

You pays your money, and takes your choice.