« That Was The Week That Was: August, 2007 | Main | Stocks, Oil And Gold All Down At Once? »



great blog. love your cartoons.



YOU ARE THE BEST, #1, GOLD MEDALIST. This comment of yours is truly, exactly what has been going on for years. "Commodities are being artificially suppressed, money is being encouraged to flow back into stocks and assets" www.gata.org, Catherine Fitts has the proof. They are actively suing the FED and Treasury. You should be their spokeswoman and DEMAND THEY BE ARRESTED. They have big meetings and have a huge following. You have the brains they lack. Perfect fit.


The whole financial world's economy is nothing but a middle ages cocke and bull

Soon the early cocke will get the
bull and give us the bird.


The guys on the trading floor starts to notice the "switch flicking" by Japan and China.


Several readers sent me an excellent opinion piece by James Turk which appeared on GoldMoney's website. Mr. Turk points to central bank intervention as a major reason for the recent dollar strength. The article agrees with what I was saying last week; that the dollar has no fundamental reason to be rallying. The reports and news out of the US have not been favorable to the greenback, and the twin deficits in the US continue to soar out of control. I mentioned that the recent moves of the dollar smacked of intervention, as the dollar only wanted to move in one direction, ignoring any data which would typically send it back down. Turk points to some data which backs up this intervention theory:

"When central banks intervene in the currency markets, they exchange their currency for dollars. Central banks then use the dollars they acquire to buy US government debt instruments so that they can earn interest on their money. The debt instruments central banks acquire are held in custody for them at the Federal Reserve, which reports this amount weekly.

On July 16, 2008 (the closest date of the weekly reports to the July 15th low in the Dollar Index), the Federal Reserve reported holding $2,349 million of US government paper in custody for central banks. In its report released today, this amount had grown over the past three weeks to $2,401 million, a 38.4% annual rate of growth. To put this phenomenally high growth rate into perspective, for the twelve months ending this past July 16th, assets in the Federal Reserve's custody account grew by 17.3%, which is less than one-half the growth rate experienced over the past three weeks.
So central banks were accumulating dollars over the past three weeks at a rate far above what one would expect as a result of the US trade deficit. The logical conclusion is that they were intervening in currency markets. They were buying dollars for the purpose of propping it up, to keep the dollar from falling off the edge of the cliff.

Elaine Meinel Supkis

Correct, Anthony. As I said, the G7 governments met and decided---at the emergency Bilderberger meeting in DC, to prop up the dollar by this very method you mention.

whine and cheese

TOo bad putin is showing how weak the US truly is... I think we need to realize that if the US does not intervene, we are officially on the retreat globally, and we have to options:

1) consolidate and pray for conditions to become favorable ...
2) engage in the ultimate stimulus package: war


Ralph: Thank you for reminding me of Catherine Austin Fitts.

Catherine is the real deal.


Here is the genocidal plan, straight from the central-banker controlled Reuters, for 'helping' us peasants deal with their war/fiat currency inflation.


The primary wealth of a nation is the health of its people. And then owning the means of production. Both are being sold off.


CHICAGO (Reuters) - Food companies, which have been raising prices for a year or more to combat soaring commodity costs, have a new message for consumers: "We can save you money."

The idea is to position well-known food brands as an antidote to the higher price of eating out. Investors have already warmed to the idea, renewing interest in food makers like Kraft Foods Inc (KFT.N: Quote, Profile, Research, Stock Buzz) Kellogg Co (K.N: Quote, Profile, Research, Stock Buzz).

During its quarterly earnings call with analysts late last month, Kraft Chief Executive Irene Rosenfeld, for example, emphasized the value of Kool-Aid drink mixes, Jell-O powdered gelatin and other items for consumers looking to save money.

Christian W

Jell-O, Soylent Green what's the difference...


The Federal Reserve plays their intervention games in trying to rally people back to their Wall Street casinos where the dice are loaded and the roulette wheels are rigged. Some win, most lose and the house gets their cut.

Let's say you invest $1,000 in stock,and make a 50% gain in year, you did well in generating a $500 unrealized gain, now your stock is worth $1,500.

Let's say the next year, the equal opposite happens - your stock drops 50%. Now your stock is worth $750. Even though the market was technically flat over the two year time period, you lost $250 which of course becomes realized when you sell.

The system requires that the market must continually go up, separated by huge corrections. The hyper intensity for growth can be witnessed by the fact that quarterly reports become critical - incentives are packaged so managers do what it takes to deliver the best numbers possible. They get rid of people, cut back on new product development, reduce benefits, etc. They abandon the future for the present.

The model is simply not sustainable.

The process encourages corruption and eventually it will consume itself in the need for feed. We will see this unfold when the credit default swap bubble bursts. There aren't enough buckets to bail out the sinking ship when these hit.

Regardless, we need to become better investors/consumers. Sustained growth is just not in the cards with our system. But we are free to invest elsewhere

For example, there are many dividend paying stocks available through foreign markets and a better opportunity to grow. These foreign companies retain earnings to keep strong, thus enabling product development and appropriate investments towards the future.

Let's go back to my original example, but this time with a company that strives to pay their shareholders dividends. Let's say you invest $1,000 and your stock value goes up 50%, now you have $1,500. Since this a company that pays dividends, you may get a $250 dollar dividend, while your stock goes up to $1,250. They allow you to realize part of the gain unlike most US companies. And, you can stay away from the dollar.

Another opportunity to become better consumer-investors is by rejecting the dollar. I am hopeful that GoldMoney or some other gold currency (they use goldgrams) will take-off providing people with an alternative to the fiat currency.

Of course, one must exercise due diligence in researching these alternatives. I plan on jumping aboard by buying allocated gold stored in Switzerland...the big question I have is when.

I think the gold down-correction will continue for a little while longer. And, as Elaine and others have mentioned, there is always the concern market manipulation.


Technically, calf hooves vs human bones.

Not much difference if you are a power/money mad central banker, alot if you have any soul.

Elaine Meinel Supkis

All markets are by definition, manipulated. The ungenerous information the people on the street get is often too little or too late or preferably, both. At least the sellers of assets, equity, stocks and bonds would like to think.

This is how they profit. When a game is 'good' for them, they play it to the hilt. When there is no more sword blade left showing and red ink blood is now all over the place, they lie about the truth and sell as fast as possible.


I sometimes wonder if people will finally wake up and say "wait a minute, stock market value is not what the price say."

It's only going up because a group of people think they own something, which in practical level really owns nothing. (rarely right to vote or able to attend voting, no dividend, etc etc)

It's just paper being pushed here and there representing the illusion of owning a corporation.

Enron would be a good example.

Paul S

Putin may be showing the US how weak the US is, but the message is NOT getting through to "Dubaya" or his warmongering neo cons. "Dubaya" is issuing harsh warnings to Russia. Almost ultimatum sounding. I think we soon could get real world evidence proving how effective US Navy Aircraft carrier defenses truly are--or are not. Is "Dubaya" deluded enough to think the Russians are afraid of him? I believe the answer is 'Yes'.

Elaine Meinel Supkis

America's media wants war. The main media owners are Jewish and they feel that if they destroy Russia, they can destroy MUSLIMS.

I reported about how Russia and China, acting in concert with each other, are making huge, huge inroads with the rulers of the oil pumping nations. Saudi Arabia knows that if they side entirely with the Israelis and Americans, they might have a major uprising at home as well as total loss of any legitimacy with international Islam.

Also, if they lock out Russia and China, both will court IRAN who they fear for religious and geopolitical reasons. So Israel is very frightened of TWO things: Russia and China becoming big allies of Saudi Arabia AND OR Russia and China backing Iran!

The only solution is to bog down Russia in a huge war elsewhere!

The problem with this plan is, it can cause WWIII. And I know it WILL cause WWIII. The Jews don't fear WWIII because they think it won't happen. The US right wing Christians salivate over the idea they can have WWIII so they can fly to Jesus covered with blood and nuclear debris.

We have to stop this madness.


The US and Israel have been intervening and antagonizing in the affairs of the old Soviet bloc states, such as Georgia for some time. And we have been surrounding Russia with a missile defense system that is obviously not located to protect the US.

Depending on who you chose to believe, Israel has become the 2nd or 4th leading exporter of weapons on the planet. This is not an accident but rather part of a long term plan to continuously develop improved weapons systems and to grow this profitable international market.

Georgia has been well armed and trained through the US and Israel. If the is an "evil axis" it is clearly the sordid partnership between the US and Israeli power brokers.

Paul S

I should make clear re my last post: I very sincerely HOPE that the conflict between Russia and Georgia dies down peacably and there is NO conflict between ANYBODY. As much as I despise "Dubaya" and his neo cons, I don't wish harm to anyone, including the contractor/mercenaries (let's call them what they are) of Haliburton et al.

Elaine Meinel Supkis

I would safely say that non of us want a raging war in this region or any of the oil pumping regions. The rulers just got the oil prices down a tad and are trembling with fear because higher oil prices made Russia more powerful. They desperately want them lower.

But this won't be if oil pipelines are blown up, etc. Already, they are being closed in this region.

Buffalo Ken

I thought folks here might be interested in this article. Its hard to make heads or tails of this situation.




I have been interested in Simplicity for a long time and have truly started to embrace this practice more, and after reading all of this information about the true condition of our nation, I am determined to live in Simplicity. It seems like we are living in severe circumstances and people are totally blind to it. Instead of seeing the truth of what is going on in the world and with our nation, people are still consumed in their materialistic lives and lost in their "America will always be #1" attitudes. I have been reading the articles on this website all day and I am quite concerned about the future of America. I think George W. has played a gigantic role in ruining our country.

cheap loans

That's an amazing post.
The situation is becoming worse because of the inflation.
May we all Hope for the best to happen to all.

The comments to this entry are closed.

Blog powered by Typepad