ALERT! An absolute must-read for all businesspeople!

Hi everybody. I read this and just HAD to share it with as many smart people as I can reach. Please read this article. It explains what is about to happen with the economy in plain language. And it is scary. But to be forewarned is to be forearmed so it could be scarier: if you DON'T read this. "They" do not want you to read this. Please copy the following link and paste it into your browser's address bar. If you have trrouble copying this link, the article is found on the website silvergoldsilver.com which ia a daily read for me, article is called "Exeter's Pyramid"

http://www.silvergoldsilver.com/index.php?option=com_content&task=view&id=163&Itemid=9

Also, beware the MF Global problem......it is going to be clear soon that NO PAPER FINANCIAL ACCOUNT IS TRULY SAFE FROM THE FINGERS OF "them!" They used CLIENT FUNDS, went bankrupt. and nobody including the CME or the "watchdog" CFTC is doing a thing about it. Didn't mean to scare you!

Hola! Que tal! Senor Chavez quiere his ORO! (Gold, I say!)

A huge event occurred today.....Hugo Chavez, remember the guy who said he smelled sulfur on the UN podium where our President "W" had just spoken a few years ago? Yeah, THAT GUY! Well, our amigo de Venezuela has ASKED FOR HIS GOLD BACK! ALL 99 TONS! The NERVE of anybody asking the Bank of Bloody England, and The Most Holy FEDERAL RESERVE BANK OF NEW YORK for their deposited gold back?
I can't wait to see what happens! Maybe a shipwreck is in the cards? Or a downed 747 over the Atlantic, not findable?
Read more commentary from one of my favorite daily bloggers, at silvergoldsilver.blogspot.com
I believe $1,800 per ounce is going to sound like a bargain in the near future, who knows?
Adios Amigos! Hola el Oro!

It's like a snowball just leaving the top of the hill! Weeeeeee

Well, silver touched $42 today! Gold is making a new all-time high daily now in just about all currencies. Can you feel the end of paper money upon us? Soon we will not be able to afford an ounce of gold, or hopefully an ounce of silver either! Anyway, the game of "fiat" money (money backed by nothing, the stuff Lincoln and Kennedy both wanted to get rid of, but instead, that idea "got rid" of them!) is about to implode, I am not sure what will happen, but I can promise if paper money goes worthless, gold and silver will store a heck of a lot of value, and in the words of Van Halen, everybody will want some!

This is the stuff I get

Every day I go to a great blog named silvergoldsilver without any spaces. Google it and you can go there too. On the right he lists his daily reading, so you can just instantly go to Harvey Organ, the best, smartest daily analysis of the physical metals markets there is! Within his Thursday post is an article by a very well-respected gent and here is a teaser, or snippet if you will, from that article pasted in Harvey's blog:
"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money."
Wow! I would not want to go too much longer in this economy without reading these things....would you?

Can you read ONE article this week?

I want to share a very important article regarding the current silver market. It says what I have been saying for three years now, but very clearly, and with REAL CLEAR THINKING! Paste this into your browser!

http://dont-tread-on.me/11-silver-investor-mentality-shifts/

Great Analysis of a Complex Subject, Silver! What Else?

Well the subject of this blog was supposed to be taxes.....but to be honest, with four trillion dollar wars and more to come, complete meltdowns possible in currencies, stocks, and even cash in the bank, spiraling food costs, nuclear disaster here and there (flooded Nebraska nuke plants...OH I forgot, the American media doesn't cover that!), I see no real hope of any economic recovery very soon, so taxes are just kind of boring these days compared to other topics!
Speaking of my favorite topic, I found a great summary of where the silver market sits right now.
The author of this post from zerohedge.com is Eric Sprott, a Canadian billionaire who is a major metals fund manager and a silver bull! This long article is well worth reading, it explains one very crazy market quite well. Paste the following into your address bar, it is worth a few minutes reading!
http://www.zerohedge.com/article/eric-sprott-lashes-out-against-tyranny-rigged-paper-monopoly-over-silver-price-discovery

As expected, silver is setting new highs daily now

....
Just an update, as of 12:01 AM on Monday 3/7/11 silver is at $36.45 an ounce. It has increased about 30% in the last three or four weeks, basically the 30-plus year ponzi scheme of propping up paper money at the expense of the price of precious metals is coming to a close, and mayhem in the Middle East is probably just the start of this run that the white metal has begun! Hopefully you have bought at least an ounce for yourself in the last few weeks, it will be fun to see how high the price might go! "Back Up the Truck Charlie!"

The End of Precious Metals Markets may be at Hand

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Here is a great explanation of the silver situation.....do your own research of course, but I am only going to say this....
"Back up the truck!"

The following is from: http://tfmetalsreport.blogspot.com/2011/02/wow.html

Wow
At the risk of sounding crazy. At the risk of ruining whatever minimal "reputation" I may have. Most importantly, at the risk of losing money, I have to say this: I think we have Blythe on the run. Big time. My rationale for this is going to be difficult to summarize in writing but here goes. Bear with me...

Today, 2/16/11, was an extraordinary day of FUTFs and FUBMs in the silver pit on the Comex and I'll explain that shortly but it all needs to be placed into context.

If someone wants to purchase physical silver through the Comex, they must first buy a future or option contract for a "delivery" month. The current delivery contract is the March11. Before the close of trading on 2/28, any holders of March contracts must sell their positions or be forced to take delivery. Those unwilling to take delivery typically "roll" their position into the next month, which is May. If an investor does intend to take delivery, that person must, by the close on the 28th, show in their account enough money to pay for their acquisition. A single contract is for 5,000 ounces so, at $30/oz, you must show available funds of $150,000. For 10 contracts, you must have $1.5MM. This is kind of a "put up or shut up" thing. It keeps goofballs from claiming they want delivery when they really can't afford it. On the 28th, you've got to have the dough in your account to "prove" to TPTB that your are serious. Every delivery month, the EE/Comex plays this game and, every month, enough longs simply roll instead of standing for delivery so that the Comex has yet to default on their obligations to deliver the physical silver.

Now, here's the problem...Monday was 2/14. Only 10 trading days to go until the critical 28th. Heading into Monday's trade, there were still 62,692 open contracts for March. This had to really get the attention of the EE and they, without question, went into Monday with a plan to attack silver and scare as many March longs as possible into rolling to May or later. Unfortunately for Blythe, silver began to rally in the wee hours of Monday morning and broke $30 while she was still sleeping. It closed that day above $30.50. But that wasn't the true disaster for the EE. The real shock was when they got the new OI numbers Monday night and found that the March OI had only fallen to 61,720. Panic surely began to set in. Then yesterday, silver traded even higher, briefly touching $30.90. Earlier today, we got the OI numbers basis yesterday and it was an eye-opener. As of last night, there are still 59,851 open March contracts. And first notice day is now only eight days away!!! Blythe had this information before the general public so she knew, going into today, that she had to attack again and she did. Here's your chart:


Obviously, it didn't work and that's the problem.

Recall for a moment how the EE caps price. They do so by flooding the Comex with an almost endless amount of unbacked, paper silver. Think about that trade, though. To sell short, you need a buyer on the other side of the trade. And now, at this late hour, how can you reduce the open interest in the March contract if you're only selling new paper shorts to resolute longs who intend to stand for delivery in eight days? By raiding and selling, you're only compounding your problem because you are creating more open interest! If you're Blythe, you're left with only being able to freely sell the forward contracts in an attempt to influence the spot and nearby price. Does this explain the current backwardation? Probably.

To the point, however, what's a girl to do? You can see by looking at the chart above that Blythe tried to raid today but she didn't seem to do it with the usual bluster and gusto. How could she? Every new March contract she sells only adds to her problem. She is truly caught in a catch-22. Again, what's a girl to do?

If the March longs stay resolute, she's screwed. Even if only 20,000 stand for delivery, thats 100,000,000 ounces that the Comex has to deliver. By most estimates, that's their entire inventory. She and The Evil Empire must, somehow, convince/force March contract holders to close their positions but if they can't scare them by crushing price, how do they do it? They could get the CME to raise margin requirements but if you're ready to stand for delivery by putting up 100% of the cost in eight days, a margin increase today is of zero consequence.

So what's left? She can't scare people out through raids and she can't finance people out through margin hikes. She's fucked. She/They will be forced to settle again in cash + premium, just as many suspected they had back in December. However, back then it was just a couple thousand contracts. Now it could be 20,000. Shit, it could be 40,000! And the problem is, word is out. What do you think will happen in May?!? Will 80,000 stand for delivery? 100,000?

So the point is this: Ding dong, The Wicked Witch is hurting. Bad. All the years of Evil Empire domination/manipulation of the PMs appear to be coming to a rapid and spectacular end. Watch the Open Interest numbers very closely. They are your tell.
Buy all dips until and unless the OI situation significantly changes.
Now truly appears to be the moment we've been waiting for. TF

"May you live in Interesting Times!" - Some old sarcastic philosopher - HL

Derivatives.....The End of the Financial World as We Know It!

I have attached an article posted on my favorite daily blogsite that I recommend you read too, "Harvey Organ's Daily Gold and Silver Report."
The following is scary, but to be forewarned is to be forearmed, so I've heard!

The REAL Reason Ben Bernanke Leaves A Paperweight
On The "Print" Button When His Finger Gets Tired



Graham Summers
7 February 2011



We've been over the numerous BS excuses that US Dollar destroyer extraordinaire Ben Bernanke has made for QE enough times that today I'd rather simply focus on the REAL reason he continues to funnel TRILLIONS of Dollars into the Wall Street Banks.

I've written about this issue before. But given the enormity of what it entails, it's worth repeating. The following paragraphs are the REAL reason Bernanke does what he does no matter what any other media outlet, book, investment expert, or guru tell you.

Bernanke is printing money and funneling it into the Wall Street banks for one reason and one reason only. That reason is: DERIVATIVES.

According to the Office of the Comptroller of the Currency's Quarterly Report on Bank Trading and Derivatives Activities for the Second Quarter 2010 (most recent), the notional value of derivatives held by U.S. commercial banks is around $223.4 TRILLION.

Five banks account for 95% of this. Can you guess which five?



Looks a lot like a list of the banks that Ben Bernanke has focused on bailing out/ backstopping/ funneling cash since the Financial Crisis began doesn't it? When you consider the insane level of risk exposure here, you can see why the TRILLIONS he's funneled into these institutions has failed to bring them even to pre-Lehman bankruptcy levels.



Ben Bernanke is a stooge and a fraud, but he is at least partially honest in his explanations of why he wants to keep printing money. The reason is to try to keep interest rates low. Granted he's failing miserably at this, but at least he understands the goal.

Of course, Bernanke tells the public and Congress that the reason we need low interest rates is to support housing prices. He doesn't mention that $188 TRILLION of the $223 TRILLION in notional value of derivatives sitting on the Big Banks' balance sheets is related to interest rates.

Yes, $188 TRILLION. That's thirteen times the US's entire GDP and nearly four times WORLD GDP.

Now, of course, not ALL of this money is "at risk," since the same derivatives can be traded/ spread out dozens of ways by different banks as a means of dispersing risk.

However, given the amount of money at stake, if even 4% of this money is "at risk" and 10% of that 4% goes wrong, you've wiped out ALL of the equity at the top five banks.

Put another way, Bank of America, JP Morgan, Goldman, and Citibank would CEASE to exist.

If you think that I'm making this up or that Bernanke doesn't know about this, consider that his predecessor, Alan Greenspan, knew as early as 1999 that the derivative market, if forced into the open and through a public clearing house would "implode" the market. This is DOCUMENTED. And you better believe Greenspan told Bernanke this.

In this light all of Bernanke's monetary policies and efforts are focused on doing one thing and one thing only: trying to shore up the overleveraged, derivative-riddled balance sheets of the Too Big to Fails.

The fact that the bank executives taking this money and using it to pay themselves and their employees record bonuses only confirms that these folks have NO interest in taking care of shareholders or their businesses. They're just going to take the money and run for as long as this scheme works.

I don't know when this will come unraveled. But it WILL. At some point the $600+ TRILLION behemoth that is the derivatives market will implode again. When it does, no amount of money printing will save the Too Bloated To Exist banks' balance sheets.

At that point, it's game over for Wall Street and the Fed. Indeed, the derivatives market is simply the largest, most insane debt market there is. In this sense our entire financial system is held up by blatant fraud. The banks don't have anything even resembling accurate accounting. Our former Treasury Secretary and Chairman of the Federal Reserve BROKE THE LAW multiple times and have yet to face any consequences. Corruption, fraud, and even front running are the NORM in the US markets.

On top of this, the US $14+ trillion. And if you include unfunded liabilities like social security and Medicare, you're talking about $70+ TRILLION in total debt on the US's balance sheet.

Let's be blunt here: the US will NEVER pay these debts and liabilities off. And once the financial world finishes pummeling the Euro, we're going to see the US Dollar and Federal debt markets implode.

I cannot tell you when this will happen. All I can say is that it will happen. And you better be preparing for it now.



Graham Summers

********

All Aboooooaard! The Silver Train is about to leave the station! CHOO CHOO!

Here is a great article about "Backwardation." Normally, metal prices would be lower today than the price for a future delivery, due to storage and insurance costs associated with holding precious metals. But during the rare state of "backwardation" the current price is HIGHER than the future price, a sure sign of physical shortage in the present. The link here is a to a good article that explains this fairly well -

http://www.gotgoldreport.com/2011/02/near-zero-contango-in-comex-silver-futures.html

The world economy is going to heck in a handbasket and the money supply is going through the roof in the trillions. I am not a certified financial planner and you should do your own research, but I am putting my savings into physical silver. Think about this...in 1964, a silver quarter bought a gallon of gas (about 25 cents.) Today, a silver quarter buys a gallon of gas (well maybe not in California, but everywhere else) about 2.85 or so.

What has the Federal Reserve (A private corporation by the way) done for us in 98 years? Basically eroded 90% of the value of your dollars! Holding paper money these days is a fool's game, in my humble opinion. I hope this gives you some food for thought!