Silver

WHY has the Gold price NOT Risen exponentially – YET?

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BoE

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 – http://english.pravda.ru/news/business/21-05-2015/130683-china-0/

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:
SGTReport,
TheDailyCoin,
SilverDoctors,
ChrisMartensondotcom,
USAWatchDog,
X22Report,
AMTV,
TruthNeverTold,
SchiffReport,
BrotherJohnF,
Ron Gibson – WhatReallyHappened 2015 (Mike Rivero),
Gregory Mannarino,
FinanceandLiberty,
HyperReport,
Mike Maloney – GoldSilver.com – WealthCycles,
GoldSeek,
RT BoomBust,
RT KeiserReport,
NextNewsNetwork,
Cambridge House,
TrendsJournal.

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 Shadowstats.com)
Catherine Austin Fitts,
Bill Holter,
Ellen Brown,
Nomi Prins,
Andrew Hoffman,
Ron Paul,
Axel Merk,
John Rubino,
Mike Maloney,
Jim Willie,
HiddenSecretsOfMoney.

HIGHLY RECOMMEND:
ZEROHEDGE.COM

W.

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

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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… http://russia-insider.com/en/2015/03/19/4696 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…

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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. (though that was done last year in 2015, and to little fanfare)

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. (Chancellor Denis Healey famously remarked, he would ” Tax the Rich, until the pips squeaked.” in 1974)

Banks that fail, will seize their depositors money – Cyprus times ten – and Deposit Insurance will not be enough to save the Bank or its Depositors – 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 4 (meaning the company earned a quarter of its share value in 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 4, means that if the value of the company increases 3 fold, it would still be cheap. I’ll leave you to draw your own conclusions…

And this mysterious company is? ASA Resources on two exchanges – London (AIM: ASA.L) and was  targetted for a hostile takeover, when its board were removed, and its name changed from Mwana Africa (MWA.L).

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 managed to survive after divesting itself of some assets, after a failed financing agreement had to be called in and payments went unmade.

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. It has already risen from the low $14.00 range to $17, and most of that came in short bursts in February, and April.

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 $49. 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)  with  113.69 million shares in issue, at 1.25 pence, when the silver price rises to $100.00+ I have been expecting, this company will rise with it.

 

However, I have also learned of another Copper, Gold and Silver miner, with huge reserves, and the cash to develop it, though some political interference from the government has squashed some of the enthusiasm, and taken some of the shine off it in Mongolia, which does not have a history of stable political institutions and a threat to improve the 30% government holding by an incoming President, brought the share price down thundering from its highs of $27, to its currentlevel. Turquoise Hill Resources though (TRQ.TSX) has huge resources, and is off the radar for many investors at the moment. A fresh rise in metals prices will bring this miner back into focus, and with such huge reserves, and a major corporation in Rio-Tinto, and with the share price at £1.91(C$3.52) as at 26/4/16 these are set to rise

TRQ - Moonshot in the making?
Production figures show rising production at a time of rising prices…

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.

Russian Roulette – Is the west about to shoot itself in the head, heart and the foot – just to make sure?

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The west shoots itself in the head, heart AND foot.
Shooting themselves in the foot, head, heart…That should do it.
One year on, as the Federal Reserve celebrates another birthday, both Gold and Silver were beaten down in the London aftermarket close, while trading was at its lowest. And the Russian Rouble was similarly attacked by those behind the curtain.

As the Russian Rouble recovers some of its losses of the last week, in the last few days, I have been re-visiting some of my reading matter, of the last few weeks.

Ever since Russia annexed Crimea, ostensibly to give citizenship to ethnic Russians, but many feel it was to save its only warm water port, “The West”, has been ratcheting up the tension and the rhetoric on Russia.

The NATO block has interfered in Ukraine, too many times. The American led organisation the IMF, has been interfering, with its money, and the West has provided IMF led financial support to the Ukrainian Government and military, and rumours abound, that the IMF and its minions have taken Ukraine’s Gold – some 40 tons apparently – as a surety. (Rumoured to be the source of Holland’s recently returned 127 tons of Gold).

According to Bloomberg today, Ukraine has sold more of its Gold holdings, reducing its holdings from 26.1 tons, to 23.6 tons (2.5 tons) and Russia has bought more rising from 1,168.7 tons to 1,187.5 tons (18.8 tons).

But Russia is not the one in trouble – the Fed and the U.S. is. Russia’s Debt to GDP ratio is roughly 11 percent. What is the Debt to GDP ratio in the United States? According to the IMF it’s 112 percent. What is the Debt to GDP ratio in Japan? It’s a staggering 230 percent. And Russia is sitting on a lot of reserves of very valuable natural resources.

So Russia is not going to fold because of some pressure coming from the United States or NATO. And the real tragedy of all this is the collapse of the rouble is really hurting the Russian people. This is being done by the West as a method of financial warfare. The latest sanctions against Crimea are just hurting the people of Crimea.

According to Dr. Paul Craig Roberts, Russia could unleash possibly one or more “Black Swan” events. For those not familiar with the term, it is a reference to the fact that most swans are White, but occasionally, one is born Black, but is so infrequent as to be impossible to predict, and here is the scary part.

Both Russia and China now don’t believe in the cold war rhetoric of Mutually Assured Destruction – or MAD as it was known.

Now both appear to be willing to make a “First Strike”.

He also recently said about the Gold and silver markets…

“The downward manipulation of the prices of precious metals prevents the “crisis warning transmission system” from properly functioning. More important, the decline in the price of gold/silver vs. the U.S. dollar conveys the illusion that the dollar is strong at a time when, in fact, the dollar should be under pressure from the over-issuance of dollars and dollar-denominated debt.

What we have been experiencing since the 2008 crisis is not only the subordination of US economic policy to the needs of banks “too big to fail,” but also the subordination of law and the financial regulatory agencies to the interests of a few private banks. The manipulation of the bullion markets is illegal whether done by private parties or on public authority, and so we have the spectacle of the US government supporting a handful of banks via illegal means. Not only has economic accountability been set aside, but also legal accountability.”

What people also don’t know, is that the Russians are ready to shelter the majority of their population in major cities in the event of a nuclear war. By contrast, the United States only has facilities for the elite and key personnel in the form of roughly 234 underground bases. These bases are referred to by the military and the elite as Deep Underground Military Bases (or DUMB).

And reports are surfacing from U.S. food processors about huge orders of food by U.S. government agencies to be delivered to these underground bases. The key is the government has requested immediate shipment of this food so that it can be stockpiled. While this stockpiling, has been going on, reports have also surfaced from store managers from all over the country, that a large selection and quantity of food is disappearing from grocery store shelves in states where these underground bases are located such as Kentucky, West Virginia, Kansas, Pennsylvania, etc.

Also, in 2008, the U.S. government ordered 600 million rounds of soft-nosed hollow-point ammunition – 2 rounds for every person in America to be delivered over 6 years.

These are the type of preparations that would be taken if it appeared that civil unrest, world war, or a possible nuclear exchange was on the horizon.

Meanwhile, the Chinese are buying factories, farms, mines, fresh water resources, etc. Other Far Eastern and Middle Eastern sovereign wealth funds are also accumulating these key resources. The Chinese and the Russians understand that at the end of the day it’s all about natural resources and being able to deliver these natural resources to a market that has the money or gold to pay for these key commodities.

A cyber attack on the West’s Banks could close down the banking system for days or weeks. What would that do to the West’s economies? Just think Sony, only ten or a hundred times worse…

If Russia was attacked or provoked more seriously, they could respond by dumping U.S. Treasuries and Dollars, or by asking for delivery on gold futures contracts forcing a default at the COMEX, and/or LBMA.

Or they could just ring up all the leaders in Europe, and tell them, they won’t sell any more Gas/Oil except in roubles, or sell any to NATO members. Germany, France, Italy, and even the U.K., would cave in a heart-beat.

People used to think that those who were preparing for disaster – “Preppers” – were crazy. Now we see the United States government ordering survival kits for employees of every major bank as well as key personnel at the Office of the Comptroller of the Currency.

On this side of the pond, Europe teeters on the brink of a financial disaster. And if Russia simply stated it would not repay loans it has taken from European and U.S. banks (at least not yet) then it might force a rerun of 2008 which would seem like it was a nice day at the shops by comparison.

The European Parliament, as UKIP’s Nigel Farage is so fond of saying, has become a talking shop, a mouthpiece with no teeth. It also hasn’t had its accounts signed off for several years, making monitoring its politicians all but impossible. It has been called a gravy train.

Finally, I ran across two great quotes from the past. They are food for thought.

“The Roman Republic fell, not because of the ambition of Caesar or Augustus, but because it had already long ceased to be in any real sense a republic at all. When the sturdy Roman phlebeian, who lived by his own labor, who voted without reward according to his own convictions, and who with his fellows formed in war the terrible Roman legion, had been changed into an idle creature who craved nothing in life save the gratification of a thirst for vapid excitement, who was fed by the state, and directly or indirectly sold his vote to the highest bidder, then the end of the republic was at hand, and nothing could save it. The laws were the same as they had been, but the people behind the laws had changed, and so the laws counted for nothing.”

– President Theodore Roosevelt

“It is high time for me to put an end to your sitting in this place, which you have dishonored by your contempt of all virtue, and defiled by your practice of every vice; ye are a factious crew, and enemies to all good government; ye are a pack of mercenary wretches, and would like Esau sell your country for a mess of pottage, and like Judas betray your God for a few pieces of money.

Is there a single virtue now remaining amongst you? Is there one vice you do not possess? Ye have no more religion than my horse; gold is your God; which of you have not barter’d your conscience for bribes? Is there a man amongst you that has the least care for the good of the Commonwealth?

Ye sordid prostitutes have you not defil’d this sacred place, and turn’d the Lord’s temple into a den of thieves, by your immoral principles and wicked practices? Ye are grown intolerably odious to the whole nation; you were deputed here by the people to get grievances redress’d, are yourselves gone! So! Take away that shining bauble there, and lock up the doors.

In the name of God, go!”

– Oliver Cromwell – To the Long Parliament – 20 April 1653.

And tonight Sky News got into the fray, when it ran a programme called “The Doom Boom”, suggesting that those who are preparing for the forthcoming crash are somewhat crazy, or slightly unstable, yet the evidence above would suggest, that they may be just doing the only sane thing they can.

We wish all those who have read this over the last year, a Happy Christmas and Festive Season, and a safe and prosperous New Year.

Global Government – Portent of the Future?

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I’ve been giving quite some thought to events in the political, and financial sphere and Gold and other precious metals markets of late, and trying to figure out what the true goals of the global elite are really upto.

Gold for centuries has been the backing for currencies, and the last time we had a global economic and military crisis, in the period from 1914 to 1946, Gold was eventually taken out of the hands of the American population at the princely sum of $25.00 an ounce by Presidential decree, in executive order 6102 in 1933 – just before it was revalued to $35.00.

Some semblance of order was gained when the Bretton Woods agreement was ratified after 1945. The dollar would be backed by Gold, and exchangeable for Gold and the other world currencies would be fixed to the dollar.

This stood the test of time, until the 1960s when the world’s major economies began growing at different paces, and a war in Vietnam, forced the U.S. to spend more on munitions and men trying to hold back the tide of communism than its economy could comfortably afford.

This led countries such as Spain, France and Britain to exchange some of their foreign U.S. currency reserves for Gold in the Fed’s vaults. The final straw was when Britain told its U.S. ambassador to exchange $3billion for Gold, on 11th August 1971.

Just 4 days later, Richard Milhous Nixon – President, made a direct announcement to the people of America on television, that he was “temporarily” suspending the right to exchange dollars for gold.

The ‘Gold Window’, as it was called has remained firmly shut ever since. The reason? Because they were running out of gold. And we know from our history that – “He who owns the gold, makes the rules.” and the last full audit of the Fed, was conducted… in 1954.

At the time, Gold could be exchanged for $35.00 per troy ounce (ozt) by countries only. Over the ten years after 1971, the Gold price would rise spectacularly as people worried about inflation, which rose to 26.9% in Britain, and 25%+ in America, in 1974, as the world oil price rose, in large part to events in the middle-east, but also the number of dollars being emitted to pay for the oil – until Henry Kissinger had a cunning plan.

So, given the recent events in the middle-east, and the number of dollars that have recently been printed, apparently $4 trillion and counting. Then of course there is the Bank of Japan’s recent pronouncement that it would double down on Quantitative Easing (QE) with its own printing presses, and of course not forgetting the decision to: “Do whatever it takes” by European Central Banker in Chief – Mario Draghi, and of course our own ex Goldman-Sachs executive – Mark Carney – Chief Cashier of the Bank of England has cut the government some slack with its own printing presses, so that the government could spend money it didn’t have, on things we don’t necessarily need.

And the reason they didn’t have the money is because governments, especially socialist government’s have a tendency to bribe the electorate with their own money by making promises, that the tax-payer can’t afford. And then the Bank loans them the currency and expects to be paid back with interest – What is their escape plan?

Eventually, those who pay, end up as wage slaves. As Mr Churchill so famously quoted: “The trouble with Socialism, is, eventually they run out of other people’s money.”

Because, of course, when the nation is paying interest on loans from years ago it has less to spend for the here and now – and in Britain we recently paid off our War Bonds – from 1914… So you can see how long that can have an affect. Central Bankers have a tendency to enslave the population by encouraging governments to spend more than they have, in the full knowledge that they will earn interest for years, possibly decades to come. And there’s nothing like a good war for Banking business.

In business, the owners will frequently look at investments through the eyes of a “Cost-Benefit” analysis, so that they can check – before they spend – whether the investment will reap financial rewards and exceed the investment.

But many governments want to invest in socially desirable investments, where it is difficult – if not impossible – to measure the costs and benefits. Of course politicians want their cut – in the form of salaries too.

Bankers also have a tendency towards centralisation – first on a national level, but increasingly on an International level. In Europe, politicians have still not had accounts signed off for several years, as they give money to their own pet projects.

So to come to the meat of this piece.

Gold has been driven down in the last 3 years since it peaked at circa $1980 in late 2011. So, with Central Banks in Venezuela, Germany, Holland, and now France either requesting their gold back from the Fed, or recommending it to the government, either by politically minded individuals, or opposition leaders; what is the end game? I believe it is simply a “One world government” with the Bankers pulling the strings from behind the curtain.

The Swiss Gold Referendum

Switzerland’s referendum vote on Central Bank Gold, on the Sunday, 30th November, didn’t go as hoped, after the Central Bank began a campaign of fear, and Citibank released a report a couple of days ahead of time, which to be honest, smacked of fear and desperation – On the banker’s part…

http://goldsilverworlds.com/physical-market/the-swiss-referendum-on-gold-whats-missing-from-the-debate/

Despite this, the Gold price held up quite well, after an initial dip.

http://www.mineweb.com/mineweb/content/en/mineweb-independent-viewpoint?oid=241985&sn=Detail

Central Banks’ Love-Hate relationship with gold and Silver.

http://www.mineweb.com/mineweb/content/en/mineweb-editors?oid=261075&sn=Detail

So, why do the Banks have a love-hate relationship with Gold? The Central Banks know that money is power… And remember – “Gold is money – All else is merely credit.” – so said, John Pierpoint Morgan, of J.P. Morgan-Chase Bank fame, and if you have been following this blog for a while now, you will know from my many posts, that ultimately we are owned by bankers, and the main protagonist of these bankers is the Federal Reserve. So their objective appears to be to get Gold out of the hands of the people, because that allows the person freedom, and liberty to do as they see fit – as long as they do no harm, nor cause any loss to others. And if you read anything from Ted Butler, you’ll know he thinks the same. Since the beginning of U.S. independence, the constitution has been chipped away at, leaving it a shadow of its original intent. The constitution says that only Gold or Silver can legally be money, yet by sleight of hand, the Bankers have removed every last vestage of real money from the American People, and when they control the money, they are the rulers.

I’ll leave you this video clip which demonstrates this, and is perhaps instructive of where the world is going.

So, if we return to the main reason for this blog, it is to encourage the reader to become an independent thinking human being, responsible for your own actions and have the freedom, and liberty that you were born with, but your parents gave up so shortly thereafter. But you can take some of it back…

Remember:

“He who owns the gold, makes the rules.” Of course, you can buy Gold with silver, or crypto-currency (or some of the paper that they print for you to use.) And at the moment Silver is on sale. As I was writing this, the price of Gold is $1198.10. Silver is at $16.41. So, Silver is therefore 1/73rd as cheap as Gold, though throughout most of recorded history, it was a lot more expensive – it was about 1/15th or 1/16th the price of gold, and sometime in the future, it will be circa 1/10th.

So if you buy 73 ounces of silver at the moment, for the same money you could buy 1 ounce of Gold. But if you wait a while, and silver rises to the price I expect, then your 73 ounces of silver will likely buy between 3-8 ounces of Gold and one day, I expect to be able to buy a house, for circa 30-40 ounces of Gold.

So, are you going to get some now?

You can start your savings: HERE!

And you can get started with crypto-currencies HERE!

So, what is the ultimate goal that I spoke of at the start of this piece?

I believe that the Bankers are using arbitrage – buying something cheap in one place, to sell it elsewhere where it is more expensive (more highly valued) to send Gold and Silver overseas, as the flow of wealth heads East, these Bankers (I believe) intend to establish themselves where the next world hegemon will likely be, in China, just as these Bankers left the shores of England and Europe to go to America when they realised that England was becoming a spent force.

http://kingworldnews.com/chinas-plan-dominate-world-crush-united-states/

And who will be pulling the strings? – That’s right – He who owns the Gold.

You can read more about how these Bankers came to rule the world: Here!

If you like this piece, then please post it to your favourite blog, like it or tweet it.

Transition Vamp? Or “How the Crash will be won!”

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Earthrise-4

Imagine for a moment, you are sitting on the moon, watching the world as it moves silently across your moon-scape sky.

Down beneath you on Earth, the Japanese are building cars and electronic equipment, Chinese are building new blocks of flats for people who can’t afford them. Building Railroads to cities that are inhabited by ghosts; building roads that cars don’t yet need, buying up iron ore, steel mills, and factory machinery; building ever larger vessels to trade across oceans. Buying American Hotels, Tower blocks, and Bank buildings. And quietly accumulating Gold and Silver, like there is no tomorrow, and a nascent motor industry is taking root.

Americans in their laboratories, are busily inventing new bio-tech remedies to prevent and treat new diseases. Hi-tech entrepreneurs, are designing new software to create new mega-corporations, and software already written, but which we haven’t learned about yet, is being improved upon, and new uses for old energy sources (more of which later) is being developed.

Meanwhile, British businesses, funded by capital from around the world, are building class leading vehicles in Crewe, home of Rolls Royce, and Coventry home of Jaguar Land-Rover, is busy building world-class Jaguars, and Range Rovers as well as numerous other towns and cities too, with increasingly successful manufacturing, all funded from capital raised on world markets, by the financial wizards inhabiting the square mile, where property values there, have been rising in line with the wealth created the world over, but which for its own reasons, seems hell-bent on buying a little piece of this over-crowded country.

Germans are building VWs, Mercedes, Porsches and Audis… Italians their Ferraris, Fiats, Alfas, Lamborghinis and Maseratis, and the French, their Peugeots, Renaults and Citroens – to say nothing of the Russian, Czech, Chinese, Brazilian, Indian, Mexican, U.S. or any other vehicle manufacturer. In 2011, there were 77 million cars, light goods and SUVs, sold worldwide. 2012 saw sales of 81 million, and last year that reached 85 million. By 2018, the world is expected to reach 104 million. Most of that growth will come from China, South America, and South-East Asia.

The world is a-buzz, a hive of activity, as trade and commerce travels around the globe as the world turns, and the sun appears over the Earth’s eastern horizon, only to disappear some hours later, depending on where in the world the worker lives and their latitude.

But unless, you are mistaken, no truck, ship, train, plane, or rocket takes off to trade with another planet.

It is a closed commercial system. Value accumulated on one side of the planet comes from increasing the stock of goods and services, and from extracting value from others. It does not come from outside the planet. What affects one side of the planet, affects the others.

As one side of the planet accumulates, Dollars, Yen, Pounds, and Euros, and all manner of metals, both rare and widely available, precious and semi-precious, and quietly putting them into vaults, or in warehouses.
On that side they are also accumulating holdings in suppliers that give them control, or serious stakes in smaller mining and refining businesses.

On the other side of the world, Americans are accumulating debts and losing their wealth to their Bankers who hold their government in debt to the respective owners of this central Bank – The Fed – $17 Trillion and counting.

Who has the right idea? The world is transitioning. We are moving from the computer age, the PC age, to the information age, where “Big Data”, and “Cloud Storage” is being touted as the way that governments and corporations can grow their revenues.

And, as old industries are dying, new ones are just beginning to emerge and grow. Research and development is going on in labs in Bio-Tech, Energy, Rare-Earths and special metallic elements, and alloys – Beryllium and Thorium, and the 17 Light and Heavy Rare earths.

Where will it all take us?

We can make a guess…

End of the Banking Industry as we know it?

On November 30th, Switzerland goes to the polls. Not to elect a government, or President or any other official. No, the people of Switzerland, concerned at their Central Bank’s abuse of its monetary powers, are voting to return to a partial gold Standard, which would require the Central Bank to carry at least 20% of its reserves in Gold; would not be able to sell any, and would have to return to Swiss soil, any bullion held overseas.

Germany too recently asked to repatriate its Gold holdings at the Fed, all 674 tons of it. To-date, the Fed has been able to send back just 5 tons, and initially stated it would take 7 years, though at current rates it would take over 150.

And nobody really knows exactly how much of the 1,040 tons of Swiss gold is actually stored at the Fed.

And we can only guess how soon the Central Bank would start to accumulate, and at what rate if the vote goes against them (the earliest opinion poll gave the ‘Yes’ camp a small lead). But if or when they do, the dollar is toast, as physical bullion begins being bought, and the market cannot deliver.

When this happens, the premium (the physical price over the paper price) begins to rise. Back in 2011, the premium reached over $50, as India, and China, Russia and the other BRICS nations began their stealth abandonment of the dollar.

India has recanted somewhat on its deal with the devil, as the Indian public began buying Gold and Silver to protect themselves from what is to come, before they (the Indian government) slapped a 10% sales tax on Gold, and instigated legislation requiring that 20% of precious metals be re-exported in value-added form. The so-called 80:20 rule. But Indian manufacturers have been getting creative. Some industry insiders say that manufacturers are turning the gold bars into chains at a mere 1.5% premium, for export, and then re-buying it back as a bar.

Following the legislation, precious metals dealers harangued the government, and the people of India began buying silver with both hands. And a new trend emerged as young Indians began buying 18 carat gold, rather than the 24 carat of historical norms.

However, the Indian Commerce Ministry figures also showed gold imports trebled at $2.04 billion in August 2014, compared with the same period a year ago. In August last year, imports totalled $739 million after the RBI imposed the 80:20 rule.

According to the Gems and Jewellery Promotion Council’s provisional data, gold jewellery exports have doubled during April-August this fiscal year compared with the same period last year. Data also shows exports rising to $2.12 billion against $1.04 billion a year-ago.

The Commerce Ministry data showed gold and other precious metals jewellery rising nearly 25 per cent during April-July compared with a year-ago but Gold imports, on the other hand, were down nearly by half during the period. I’ll leave you to decide whose figures are most accurate… And in the run up to the Indian celebration of Diwali, gold imports soared five-fold over 2013. And are expected to run at 70-75tonnes per month for the rest of the year.

On the one hand, the trade is complaining that gold smuggling is affecting their business badly, but on the other… “When asked how they are managing to get gold, jewellers say that 70 per cent of their demand is met through smuggling,” said Satish Bansal, Managing Director of MD Overseas Ltd, at a gold convention in Pune recently.

China too has been quietly accumulating. And we know (or strongly suspect) from document FT900 (see previous article) that some of the Gold has been secretly coming from the Fed’s vaults at the rate of circa 200+tons a year.

During the last financial crisis, the Fed, added almost $3 trillion to its own balance sheet. But we also know from Lord James of Blackheath that he uncovered that the Fed, sent $15 Trillion in 3 tranches of $5 Trillion each, just weeks apart through the Royal Bank of Scotland, which were passed onto other MTN Banks in Europe. (MTN means Medium Term Note, and is the name given to Banks who handle these in terms of Government and Large Corporation Finance. Monies can be deposited at overnight rates as high as 2.5%)

He released the information live on air, in the chamber of the House of Lords, and those interested can still find the piece on YouTube.

But also via the Fed’s FX liquidity swap lines the Fed also bailed out foreign Central Banks, which in turn took the money and funded their own banks.

It turns out that is only half the story: we now know the Fed also acted in a secondary bail out capacity, providing over $350 billion in short term funding exclusively to 35 foreign banks, of which the biggest beneficiaries were UBS, Dexia and BNP.

Since the funding provided was in the form of ultra-short maturity commercial paper it was essentially equivalent to cash funding. In other words, between October 27, 2008 and August 6, 2009, the Fed spent $350 billion in taxpayer funds to save 35 foreign banks.

And here people are wondering if the Fed will ever allow stocks to drop: it is now more than obvious that with all banks leveraging the equity exposure to the point where a market decline would likely start a Lehman-type domino, there is no way that the Fed will allow stocks to drop ever…

Until such time as nature reasserts itself, we will have market gyrations. The Fed is manipulating the market, and the oscillations of the last two weeks as various commentators have mentioned is because of this, the alternative, is that the Fed is finally wiped out – one way or another.

The Fed in the 08 crisis, also bailed out Barclays and RBS, to the tune of $640 Billion to help these two banks to buy the assets of Lehman Brothers, presumably in the UK).

The $350billion in short-dated paper, was the equivalent of re-capitalizing these banks.

The 35 Banks bailed out were:

UBS (Union Bank of Switzerland)
Dexia SA
BNP Paribas (Banque Nationale de Paris)
Barclays PLC
Royal Bank of Scotland Group
Commerzbank AG
Danske Bank A/S
ING Groep NV
WestLB
Handelsbanken
Deutsche Post AG
Erste Group Bank AG
NordLB
Free State of Bavaria
KBC
HSH Nordbank AG
Unicredit
HSBC Holdings PLC
DZ Bank AG
Republic of Korea
Rabobank
Sumitomo Mitsui Banking Corporation
Banco Espirito de Santo SA
Bank of Nova Scotia
Mizuho Corporate Bank, Ltd.
Syngenta AG
Mitsui & Co Ltd
Bank of Montreal
Caixa Geral de Depósitos
Mitsubishi UFJ Financial Group
Shinhan Financial Group Co Ltd
Mitsubishi Corp
Aegon NV
Royal Bank of Canada
Sumitomo Corp

And four days ago, 25 European Banks failed stress tests, forcing them to raise extra capital to reinforce their balance sheets.

When the inevitable happens, the solution to this might just be… to get a whole lot wealthier, and there are two companies I feel, could help in that regard.

One is a Corporation I’ve been researching from North Virginia… Lightbridge Corporation (US:LTBR), and is one of these companies hinted at earlier.

Lightbridge holds U.S. Patent number – 8,654,917 and this provides for a method to develop and use nuclear fuel-rods, that contain Thorium, in such a manner, that this enables existing Nuclear Reactors, including PWRs (Pressurised Water Reactors) which are commonly used in American Nuclear facilities to get better power output, while lowering costs, reducing the risk of meltdown, as the vessel operates at reduced temperature (1,000 degrees less) and the waste material is only one tenth as dangerous when the spent fuel is stored, allowing greater storage density thus saving capital costs going forward, and almost completely eliminating the production of enriched plutonium, thus limiting scope for the further proliferation of nuclear weapons.

The benefits on the face of it, will give energy producers scope to compete on favourable terms with other more unreliable energy sources, and even compete favourably with Liquid Natural Gas and Compressed Natural Gas.

And the number of new reactors proposed or being built, despite the political reticence since Fukushima in 2011, is rising rapidly, even in places like the middle-east – such as Syria, Egypt, Iran and Saudi-Arabia.

Lightbridge’s web-site has this to say about itself:

“Lightbridge is a US nuclear energy company based in McLean, Virginia with operations in Abu Dhabi, Moscow and London. The Company develops proprietary, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems. The Company also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence.

Lightbridge’s breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way to a sustainable energy future. Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations.

The Company leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.

Lightbridge is well positioned to serve the growing market for next generation nuclear fuel. Global nuclear power generation which is projected to nearly double by 2030, due to expansion in Asia. Worldwide, there are 435 reactors are in operation today. Another 70 reactors are under construction, with 29 in China and six in India. An additional 473 reactors are on order, planned or proposed around the world. For the first time in more than 30 years, the Nuclear Regulatory Commission in 2012 approved construction and operating licenses for four U.S. reactors. License applications are pending for 27 reactors in 14 states. Nuclear power generation is less expensive per megawatt and more reliable with longer lasting plants, compared with wind and solar generation.”

And the UK., too recently announced the Hinckley ‘B’ power station would be built by French Nuclear Energy Giant – EdF.

Lightbridge also has a $52 million order backlog it’s plugging through right now… and orders keep on pouring in, for consultancy services.

Now any company where the senior management doesn’t have substantial shareholdings, concerns me, but thankfully the Company’s largest shareholder is the CEO, and co-founder – Seth Grae, currently holding 1,255,008 shares representing 8.33% of the total stock. Access to a large Thorium mineral reserve will be important too, and fortunately for Lightbridge, a new vein system has been discovered in Nevada.

Quite frankly, if their material is widely adopted – and why wouldn’t it? – then LTBR’s stock price can only go skyward. Given that they are currently less than $2, and with just 15 million shares in issue where the market capitalisation ends up is considerably higher.

Over the longer term, I suspect this will be at least 10x higher.

The other Corporation is a mining and refining company based in South Africa. The company owns a huge tract of land containing large platinum and palladium reserves (PGMs) on a 5,000-hectare site located south of the Merensky and UG2 reefs being mined by Anglo Platinum and Impala Platinum, two of the biggest players in the industry and is the largest undeveloped platinum project in the world…

In the past, mining these ores was not the problem, but refining them was, as these ores are Chromium rich, which frequently caused problems with the arc furnaces. The company bought the site and the technology in an exclusive licence agreement to use an alternative roasting and smelting process called ConRoast, which was developed originally by Mintek. Mintek, is South Africa’s national mineral research organisation, and reports to the Minister of Minerals and Energy.

Mintek, licenced the new technology to a small miner called Braemore Resources, who ran out of cash during the last financial crisis, and who merged with the company in question. Its prime development asset is the Tjate Platinum project, where it has a 63% interest, and which covers 5,140 hectares adjacent to Anglo Platinum’s Twickenham and Impala Platinum’s Marula operations.

According to independent estimates, the project’s exploration area could contain some 65 million ounces of platinum, palladium, rhodium and gold. At the moment the total is 20.4 million ounces in the inferred category, and 1.97 million ounces indicated, but there is clearly more to come. Tjate can already be described as the world’s largest undeveloped block of defined platinum ore.

Given the above projections for vehicles, and given that most of those vehicles will require catalytic converters, that use PGMs to reduce noxious gases from exhausts, the demand for platinum, and palladium are going to rise, and therefore, shortages are inevitable. China’s smog problems will only get worse, unless each oil-based energy source uses catlysts to remove toxic emissions from exhaust gases.

The company’s technological lead, and patented technology until 2018, should see a rise over the longer term.
And stocks of both of these precious metals are at lows…  Jubilee Platinum (JLP:AIM) the company in question which has fallen to interim lows, might just be the turnaround target of larger more cash-rich majors.

My rating for both corporations is a medium to longer term – BUY.

W.

================================END===================================

Note:
No shares are currently held by anyone connected with this story, and will not be for a minimum of 72 hours from the posting of this story. The story is meant purely for educational purposes, and any rating is for personal use. The reader is strongly advised to seek professional guidance as to any share purchases. Share prices can go down as well as up, and you may lose considerable sums by choosing to invest in them. The author accepts no liability for actions taken by, or on behalf of readers.

The Politics of Different economic models – Do they matter?

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Old-Bailey-ScalesOfJusticeI’ve been giving some thought to, Monopolies and Oligopolies and Geo-Politics recently.

Many economists will tell you that both Monopolies and Oligopolies are detrimental to the economy. Monopolies generally are not allowed to exist – and where they do exist, they are generally in state control. Mostly in countries with one-party or no-party apparatus, whether that be Fascist, or communist and for many reasons, these two regimes allow or enable them, and share one common thread.

Both state types seek to compel people to do or not do, things that are, or are not in their own best interests – depending on the “thing” we are referring to.

Communists disallow ownership, and vest almost everything in the state, while the Fascist country vests the wealth of the country in the hands of one or a few “wise men” who own the bulk of the productive assets, and tax the rest of the society to pay for things that are generally considered in the nation’s good.

Oligopolies are a slightly different matter.

These have a tendency to become cartels, where these organisations secretly work to protect their own interests, while apparently working for the good of the customer and the nation, it is obviously not competitive, so are not in the consumer’s interest, but governments quite like these because it makes taking policy decisions easier to implement, when they can get the heads of these half-dozen or so corporations in one room – after taking their advice of course.

Here in the UK, we have an oligopoly in the energy market, and for this reason it’s heavily regulated, though if the energy regulator wasn’t trying to get them to improve their customer service, they might be focussed on the thing, that consumers worry about more – prices.

But there’s another oligopolistic industry, and monopolistic practice that is at the root of many other problems in Western Societies.

Banking oligopolies, and Monopolistic Central Banks.

The Central Bank determines the supply of the currency, and the governments allow this, in its own self-interest. The government can pay its bills with money it doesn’t have, which it otherwise would have to tax from its taxpayers, instead it borrows from the bankers, and then has to pay interest, which steals from the citizens, silently through the process of price inflation.

But what it takes with one hand, it gives with the other, in higher stock-market values, and rising asset prices – which benefits those wealthier citizens, who own stocks, properties and other financial assets. This makes those on limited incomes fall further back in the “getting on the ladder” rungs of success.

It happens through the agents of the Central Bank, the major clearing Banks, who form an effective oligopoly linked into this nefarious practice, (also as their owners – as in this case – of the Federal Reserve) while the population are enslaved by debt-slavery, because their taxes are used to pay the interest of the debts to these banks, who buy these Treasuries, using money they don’t really have, but who get it from their paymaster – the Central Bank.

Of course, for all this to work, people have to keep their wealth in cash form, or invested in things that can be manipulated for the ends of the Bankers. – homes, the stock-market, bank deposits etc,

Of course, they would deny this… but as Mrs Margaret Thatcher once opined: “They would say that, wouldn’t they?”

But, once people begin saving their wealth in forms that can’t be taxed, or that the authorities – the government, and the Bankers can’t manipulate, governments and politicians begin to worry.

For example: Crypto-currencies are things that Bankers fear, because they don’t control them, and aren’t taxable – at least not yet. If you have these great. If you haven’t, then perhaps you ought to check them out at Qoinpro. After all, if you can’t beat ’em, then join ’em. And numerous Bank employees and senior executives are now buying into these in increasing amounts – in particular – Bitcoin.

After all, for hundreds of years, the Bankers have controlled the printing presses that gave them immense power over the country and its institutions.

It was President Andrew Jackson of the United States who commented that:

“Banks of issue, are more dangerous than standing armies”

And Thomas Jefferson, who said:

“Paper is poverty. It is not money, it is the ghost of money.”

So what did they mean? As I’ve previously explained, paper currency is a receipt for money, while real money is both Gold and Silver.

So, why do they fear them?

If we look back into history, a Bank Note once said with authority – “I promise to pay the bearer on demand the sum of …”

The missing words originally were the sum involved – ‘in Gold’, or ‘in Silver’ depending on the country of origin, or as the twenty dollar bill from the early 1900s stated: “There has been deposited twenty dollars in gold at the Federal Reserve”

And this prevented the Central Bankers from printing too many of them, unless they had the gold in the vaults to back that up. It meant they could only lend out “savings”.

But what they do now, is lend out debt – because there is no savings, or nowhere near enough at any rate. And when that happens, we are borrowing from our children’s future – Which is fine for investments that add to our stock of goods, but what about those debts used for holidays or other consumption services? And what if they can’t be re-paid?

It also means the taxpayers of the future – our children, and their children, will have to pay off these debts through higher taxation, or face a lower standard of living through reduced government services, and experience greater control of their lives by a centralising government.

All industries tend to grow towards having a few large entrants, before newer entrants change things and shake up the industry just as Tesla has shaken up the motor industry in the U.S..

As a further example: TESCO, the UK’s largest of the big 4 grocery retailers, has suffered recently in this fall-out, suffering a 50% share-price decline, as new entrant Aldi has grown its profits by 65%.

And to get to the geo-political issues, as ISIS rears its head in the middle-east, and Ukraine hots up, and once more unrest in Libya is raising its ugly head again, and now I hear two nuclear nations are on the brink of a conflagration, as Islam butts up against alternative lifestyles and religions. Many of these wars could embroil the west, and that will mean the amount of money the west needs to spend to fund its military activities, could be the straw that breaks the camel’s back. As stock markets have reeled in recent days, perhaps the market collapse that many predicted is already upon us.

And apparently the Indian and Pakistani peoples are on the verge of yet another major war between these two nuclear powers. And this is over a resource that neither can afford to lose – water.

Of course with both governments in dispute over the region of Kashmir, in the mountains of the north, the two governments came to an agreement over the Indus river many years ago, which allowed for both nations to tap into this resource which flows through the region, and they have already fought four wars over the territory.

But, since the agreement, both nation’s populations have risen exponentially. India now has a population of 1.2BILLION, while Pakistan has 178million.  With senior figures in Pakistan now talking of Jihad, as India extracts more water, this is raising tensions, as Pakistan has only 30 days supply for the whole country.

The Indus river travels the whole length of Pakistan, from its source in Kashmir, to emerge near the Capital Karachi, on the west of the Indian subcontinent, and is responsible for 90% of Pakistan’s water needs. The river holds such a powerful drag on the nation’s minds, because it is used to generate electricity, and is responsible for 50% of Pakistan’s employment.

It could be used to trigger Pakistan’s “first use” policy, starting a nuclear war, given that many Pakistanis are affiliated to one of eight different radical Islamic organisations, who recently formed a joint committee of Jihad. Kashmir could well be that straw that breaks the world’s financial back, causing relations between allies to worsen, triggering a new world war.

Rising tensions and a nuclear war would be hugely detrimental to world economy and financial markets, as Pakistan and India fight over this precious liquid.

Prices of stock-markets would go into free-fall, as much as 40% almost overnight, and trigger losses on derivatives, which as some highly influential, and well-informed people now believe, is as much as 10 times the notional value of the world’s economy – or some 700 TRILLION American dollars.

If that happens, then the flight to safe haven assets will be huge, and if you don’t physically, own either Gold or Silver, your wealth could be totally eliminated. The world’s economy could be so badly damaged, that for a time supply chains break down, and Banking organisations suffer, like Bear Stearns and Lehman Brothers in 2008,  reducing many corporations to pennies on the dollar as their chickens come homes to roost.

As a result, Indian Gold price premiums were as high as $50+ in 2012, despite government attempts to stem Gold imports, as the population eschewed rupees for Gold and Silver. Silver, now at prices not seen since 2009/10, could rise over its previous peak of circa $50, and take out a new all-time high.

As Warren Buffet, who has run Berkshire Hathaway since its inception, and where one share currently costs over $200,000, has been repeatedly quoted as saying in relation to markets: “Be fearful when others are greedy, and greedy when others are fearful.”

Now is the time to be greedy where silver is concerned as the world uses approximately 200 million ounces more than it produces. Sometime soon, those who cannot run their businesses without silver, will find they will have to cease operations because there isn’t any available, and the price will have to rise, to enable supply to increase.

And in 2013, not only have the Chinese and Russian Central Banks been buying Gold – But RUSSIAN Banks too bought 181.4 Tons of Gold in 2013.  It was more than double that of Russia’s Central Bank additions in 2013.

The biggest buyers according to the Russian Finance Ministry include:
– Sberbank (48.5 tons),
– VTB (38.9 tons),
– Gazprombank (29.1 tons),
– Nomos Bank (19.6 tons),
– Lanta Bank (8.6 tons).

And if this has intrigued you, as to WHY? You can learn how these bankers over 2 centuries worked towards enslaving the people of Europe, Britain and America, in my book: “The Coming Battle – 2013” and you can learn how YOU can claim back your liberty.

W.

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