Quote – Voltaire on The Real Value of Paper Money


a sketch of the young Voltaire

Voltaire – A hell of a guy


“Paper money eventually returns to its intrinsic value – zero.”

Voltaire believed back in the 1700’s that paper money was worthless – Did he know that the Federal Reserve was coming later down the road of time?

François-Marie Arouet, known by his nom de plume Voltaire, was a French Enlightenment writer, historian and philosopher, and someone who understood that paper money was not really money. Yep, we know that too now …

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Quote – Ludwig von Mises on the Final Collapse

Ludwig von Mises


Austrian Economist Ludwig von Mises

Austrian School Economist – Ludwig von Mises


“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved.”

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Quote – George Bernard Shaw on Government

George Bernard Shaw

Photo George Bernard Shaw

Photo George Bernard Shaw

“You have to choose between trusting the natural stability of gold and the natural stability and honesty of the members of the government. And with due respect for these gentlemen, i advise you as long as the capitalist system lasts, to vote for gold.”

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Weird Blip in Todays Gold and Silver Charts after Market Close

Check out these charts form just after the close of todays trading.

First todays Gold chart – drops and recovers 40 USD in an instant:

Gold is being manipulated?

Blip on Gold Chart from 2012-11-26

And now check-out the Silver chart:

Blip on Silver chart for 2012-11-26

Blip on Silver chart for 2012-11-26

Kind of funny that they happen at exactly the same time? The USDX (US Dollar index) shot-up and then recovered, in a mirror of the metals movement.

Manipulation? Foul-play? Hmmmm……

Mark Carney Announced as next Governor of the Bank of England

A shock and surprise announcement from George Osbourne today as he announced the Canadian Mark Carney as the next Governor of the Bank of England. Do not doubt that this is one of the top jobs in the UK.

Mr. Mark Carney will be next Governor of the Bank of England

George Osbourne defended his decision by stating that Mr. Carney was:

“The outstanding Central Banker of his generation.”

He also said that he was the best man for the job in the whole world bar none. I think it speaks more for how unsuitable the home grown UK talent was than anything else.

This is the first time since the creation of the Bank of England back in 1694 that it has been governed by a non British subject, in this case a Canadian. But Mr. comes highly qualified for the job.

He has managed arguably the best economy in the world Canada which has not had one bank bailout. In fact he has come through with his reputation enhanced. He understands Capital Markets. He worked for Goldman Sachs for 13 years (possibly not such a good thing! Could this be a case of Goldman getting “their man” into the BoE, and a “printer” into the system?). He speaks fluent French, went to Oxford University, already lived in the UK for a decade, his wife and children are British subjects, and he will apply for British citizenship.

Mr. Carney is also the current chairman of the board of the Financial Stability Board (FSB) which in itself is a considerable achievement and vote of confidence as this organization includes all G20 nations

This is a slap in the face for Mr. Paul Tucker who was touted as the next Governor . Too bad, LIBOR scandal for sure screwed that one up, and his dealings with Mr Bob Diamond.

In another departure from the norm he will only serve a 5 year term instead of the more usual 8 year, and Charlie Bean will stay on serving his current term.

Big Question: How will this effect the UK money printing practices and will we see more Quantitative Easing with Mr. Carney at the helm?

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Quote – Alexander Haig on Taxes

Alexander Haig

Mr Alexander Haig, a true “Patriot”?

“Let them march all they want, as long as they continue to pay their taxes.”

US secretary of state who failed to avert the Falklands war, and the chief of staff who sustained Richard Nixon’s presidency. He never faced an electorate in his life, but he ran the White House almost in secret during the 15 months up to President Richard Nixon’s resignation in August 1974 – taking over the impetus of a paralysed presidency in a manner that, however necessary under the circumstances, was barely constitutional.

see http://www.guardian.co.uk/world/2010/feb/20/alexander-haig-obituary/print

Alexander Meigs Haig, soldier, politician and businessman, born 2 December 1924; died 20 February 2010

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Richard Russel Fears that Money will Die

Richard Russell is convinced that we are in the End-Game of this financial regime and that money will die because of the Federal Reserve intervention and government manipulation.

Richard Russell

Richard Rusell was one of the first News Letter authors

Here is what he had to say:

“At any rate, I’m personally torn between putting all my assets into bullion gold coins or leaving half in gold and half of my assets in US dollars. Very frankly, I’m no longer even thinking of making money in the markets — I just would love to keep my purchasing power intact. On top of that, I don’t trust the government, and I don’t trust the Fed or the Treasury. In their demand to making Fed notes the only legal tender money, I believe the Fed (and the government) would stoop to any trick or law or machination to ensure that Americans must accept Fed notes as the only legal tender money.

The government (Congress?) could pass a law outlawing any transactions in gold or silver or any precious metal. The government could halt the trading of gold or gold ETFs. Or there might be a dozen tricks that the government could use that would outlaw the use of gold as legal tender. Then, there are always taxes as a barrier to even owning or trading gold. As it is, the IRS treats gold as a collectible and taxes you when you sell your gold.

So I dunno, hold all your assets in gold bullion coins? Frankly, I’m afraid to. The bankers demand that I use their rotten fiat notes as money, and believe me, the bankers (the Fed) run the country.

Thus, I am doomed to hold some dollars, and, in turn, my dollars are doomed to lose purchasing power month after month, and year after year. Talk about robbery!

What about owning stocks as a way to keep your purchasing power? Bill Gross of PIMCO thinks stocks will be a lousy investment over coming years, and he thinks bonds will be even worse.”

Well sobering thoughts indeed but according to Jim Sinclair there will be no chance of Gold-Confiscation – But does anyone really know?


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So just why did Gold Jump 22 USD to 1,751 USD over Thanksgiving?

Gold prices could be back on their way upwards again. Last night at close of business gold prices jumped up (almost spiked up) 22 USD to close the day up at 1751.90 USD per once. It has not been there for almost 10 months so this could be a good sign for the year end.

gold has re-started it's upward journey

Gold back at 1,751 USD an once – On it’s way up once again ?

I would expect to see the last high of the 1900s’ tested again and if we are lucky could be into 2k USD Gold early next year. What a wonderful New Years gift that would be!

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