Video – OffshoreTax Free Havens (how to do it)

Not directly related to gold I know but how is it that big companies like Apple, Amazon, Starbucks, Microsoft, et al get away with paying virtually no tax on their massive profits?

This robs the local governments of much needed financing which has to be found from other sources – usually the likes of you and me to make up the shortfall – This is an utterly amazing exposé of how the whole offshore industry fits together.

Of-course, we could now do the same thing ourselves and take an an example from the fine corporations of the world.


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UBS to Pay Over $450 Million to Settle Libor Probe

UBS are getting hammered (as they should be):

“ZURICH–UBS AG (UBS) is close to a settlement with U.S. and U.K. authorities and is expected pay more than $450 million over claims that some of its employees reported false Libor rates to boost the bank’s profit, the New York Times reported Sunday, citing anonymous officials briefed on the matter.

If the Zurich-based bank agrees to the deals with various authorities, the collective penalties would yield the largest total fine to date related to the rate-rigging inquiry and would increase the likelihood that other financial institutions would face stiff penalties, it reported.

UBS wasn’t immediately available to comment on the report.

Authorities dealt their first blow in the rate-rigging case in June, when U.K. bank Barclays Plc (BARC.LN) agreed to a $450 million settlement.

U.S. officials are hoping to complete a deal with UBS by the middle of the month, according to officials briefed on the matter, the paper reported.”

see the full story:

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Video — Paul Grignons What the Heck is a Bailout?

Paul Grignon has produced another informative and some ways entertaining video about the money system called What the Heck is a Bailout?. This is only 9 minutes long and well worth a watch to explain what these terms “bailout”, “debt” and “money printing” really mean.

Also checkout his Money as Debt site and other work and give him some support if you can – we all need to play our part to help straighten things out here…An impossible task I know…

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All the Gold has Gone from Western Central Bank Vaults?

Eric Sprott of Sprott Asset Management is one serious player and you would do well to listen to him whenever he speaks.


The chief of Sprott Asset Management

The man himself on Bloomberg TV

He was just on Bloomberg TV discussing his recently published paper to which the conclusion is The Western Central Banks cannot possibly have any Gold Bullion left in their vaults.

The explanation is simple – gold supply has remained constant at approximately 4,000 tonnes per year. This has remained constant since the year 2000 – no doubt about that. However the annual amount that is being purchased on the open market is going up, with almost 500 tonnes over the amount mined in a year. So how his this possible? Where is the extra 500 tonnes of Gold coming from?

Sprott alludes to the fact that the central banks are “lending” it out for cash into the market. This should really be called “selling”, because this gold is never coming back. The trick is in their accounts and book-keeping. The banks are entering this as “Gold Reserves and Gold Receivables” – Receivables being code for we sold it, but we still want to keep it on our books.

If we were to try that kind of cheap trick we would be locked-up and they would through away the key…But a central bank? No problem – That’s ok boys!

You need to watch this interview – there are a lot of good nuggets of info in there…

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The First and Last Too-Big-To-Fail-Bank-Liquidation in History

Sign o the times - Lehmans going under

Lehmans Liquidation nearly brought down the whole global financial system

There are plenty of things to be worried about at the moment. Sometimes it
is like the Case of the Missing Central Bank Gold is pretty minor in
comparison. For example, the implications of the Lehman Brothers Event
are profound indeed.

The Lehman Brothers event was very unique indeed. One of a kind. It was the first, and the last case of a monster bank being liquidated and the central planners soon realised that they had chosen the wrong path here. This one bank in 2008 almost brought down the entire system. If the rumours were to be believed then we were within hours of the collapse of the entire global financial system.

For the first time we could see the real and decimated value of assets during a liquidation scenario in the 2008 environment. Anyone who has been close to any kind of bankruptcy or debt event knows that assets are worth nothing and no buyers. Credit supply was seizing-up and it was almost time for the end.

The Central Planners watched and learned. If you notice, there have been many other events, banks, countries, and businesses like since October 2008. But none have been allowed to fail. It would cause too much turmoil and destabilise too much infrastructure. The lesson learned here is that it would be much better to just kick the can down the road. The expression that we have heard so often now. Keep the illusion going for a bit longer. But how much longer? Days? Weeks? Years? Centuries? This is where we must do our thinking – how long have we got?

Greek austerity measure start to warm up

Greek austerity measure start to warm up

Reflect on all that has happened since – Greece, Spain, Portugal, Ireland, Italy, Dexia, Bankia, AIG, Fanny Mae, Irish Banks, Icelandic Banks, Northern Rock, and the handful of banks that quietly fail every Friday afternoon in America. All bar none, have been helped – no liquidation for them. It would be messy.

Witness Mario Draghi and his printing presses, EFSF, anything but actually let the problems die out. So we print more money, sell more bonds, and use the money to kick the can down the road again. But one day this will come to an end.

So I feel that we will not see any more BIG LIQUIDATIONS – They are just too dangerous – Let’s just draw out a long slow death instead.

This is the proof of QE to Infinity and beyond – Purchase your physical gold now while it is still in the 1,700 USD range – In a few years most people will be locked out from buying (if not already) completely – buy silver too. Buy BOTH, with both hands. Now.

Oh, an by the way – start thinking, planning, and taking massive action now – it’s the best chance of survival for us and the people we care about.

© Copyright MMXII