Gambling For Gold

The COMEX Golden Roulette Wheel [courtesy Google Images]

The COMEX Golden Roulette Wheel
[courtesy Google Images]

Reportedly, there are more than 540 ounce of “paper gold” for every 1 ounce of physical gold at COMEX,  That means that there are 540 paper claims for every 1 ounce of physical gold at COMEX.

Is COMEX really a “market”?  Or, given that only 1 claim out of 540 can actually “win” an ounce of physical gold, is COMEX really a lottery?

Or maybe, we should call COMEX a “raffle” similar to those held by a school to raffle off a new car.  Five thousand people buy a raffle ticket for $10 each, but only one of them will win the car.  Similarly, with COMEX, 540 “investors” each purchase a paper claim on one ounce of physical gold, but only 1 of the 540 can actually win that ounce.

Is gambling illegal in New York?

Could COMEX be sued for running an unlicensed lottery or unlicensed raffle?

What about the London Gold Market?  As you’ll see from the following graphic, the London Gold Market is every bit as much of a casino as COMEX.

The following graphic makes clear that the London Bullion Market is the principle source of the world’s “paper gold” and principle mechanism for suppressing the free-market price of physical gold.

If something were to “happen” to ruin, wreck or destroy the London Bullion Market, the price of physical gold might skyrocket.

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A House of “Special Effects”?

President of the First Fictional Bank of America (a fictional banker for a fictional dollar) [courtesy Google Images]

President of the First Fictional Bank of America
(a fictional banker for a fictional dollar)
[courtesy Google Images]

Bix Weir was recently interviewed by Greg Hunter on

During that interview predicted that an economic crash was virtually certain to strike before the end of this year.

More, Mr. Weir predicted that the crash would be “electronic” and at least start on computers.  According to Weir,


“All electronic assets will be frozen and wiped away”.


It occurred to me to ask, What’s the difference between an “electronic asset” (like the sum in your bank account that exists only as a series of digital 1’s and 0’s on some hard drive) and the “special effects” seen in a Star Wars movie?

Both “electronic assets” and “special effects” can make you jump and get your heart pounding and thereby seem “real”.

But aren’t “electronic assets” and “special effects” both illusions that have no tangible reality?  Aren’t we being fooled by “electronic assets” in bank accounts in the same way we’re fooled by “special effects” in movies?

Is investing in “electronic assets” the economic equivalent to buying a light saber or a pet Wookiee over the internet?

Can “electronic assets” be properly understood as nothing more than “special effects”?

If so, is our economy and financial system built on “special effects”?

Can our economy be more accurately described as a “house of cards”–or as a “house of special effects”?

Which is more stable?  A house of cards or a banking house of special effects?

How long can a banking house of special effects be expected to last?

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Posted by on May 24, 2016 in Banking, Fiat Currency, Fictions


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Mad Italian Car Races

Italian Road Rally [courtesy Google Images]

Italian Road Rally
[courtesy Google Images]

I’d buy an Italian-made seat belt any time.

They appear to be very well-tested.

video   00:07:55


Posted by on May 20, 2016 in Humor, Video



30 Year Bear Market

Milton Berg is the founder and CEO of MB Advisers–a Wall Street financial institution.

Mr. Berg is predicting a “30 year bear market” in stocks and bonds.  T-h-i-r-t-y years.

I’m skeptical.  A 30-year bear market in stock and bond markets would almost certainly correspond to a 30-year Greater Depression.

I expect a global depression that will last somewhere between 5 and 10 years.  I could imagine a depression lasting 15 to 20 years.  But I find the prospect of 30 years of global economic depression to be extremely unlikely.

Still, Berg is no dummy and he’s certainly more knowledgeable than I am in such matters.  Therefore, a 30-year bear-market/depression is at least conceivable.

Whatever the duration, consensus is growing that we’re on the verge of a “Greater Depression”.

video    00:05:17

Here’s a link to the same video in a clearer format:



Posted by on May 20, 2016 in Economic collapse, Economy, Video


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Hillary vs. Bernie on Gun Control

video       00:00:29


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Gold-Backed Ruble or Yuan?

Jim Rickards disputes predictions that China and/or Russia may establish a gold-backed currency in the near future.  I’m not suggesting that Rickards is definitely right, but he makes logical and persuasive arguments that may be correct.

For example, other analysts have concluded that China imported over 10,000 tons of gold during the past decade.  Based on that 10,000 ton estimate, some analysts believe China has enough gold to back their yuan currency with gold.  They’re expecting the imminent appearance of a gold-backed yuan.

Rickards agrees that China has probably imported more than 10,000 tons of gold.  However, he also alleges that as only 30% of that gold went into government treasuries while the remaining 70% went into private hands.  He concludes that China’s government may have only about 4,000 tons of gold–which is not enough to support a gold-backed yuan. He therefore denies that a gold-based yuan will be issued in the near future.

It may be that the Chinese government received only 30% of the 10,000 tons of gold imported into China–but I’m not convinced.  If 70% of those 10,000 tons were held by private individuals, why haven’t any of those private individuals tried to sell their gold to foreign buyers?  If 10,000 tons were imported, I’d expect the Chinese government to acquire the lion’s share–say, 90%–enough to issue a gold-backed yuan.   Nevertheless, Rickards makes an interesting and persuasive argument to the contrary.

video   00:07:06


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Cashless Society?

[courtesy Google Images]

[courtesy Google Images]

Visual Capitalist created a graphic (below) entitled “The Shift to a Cashless Society is Snowballing”.  That graphic is interesting and informative. However, while there’s no doubt that there’s a trend toward a “cashless society” in the western world, I read that graphic as evidence that a truly “cashless society” won’t occur in the United States for a number of years.  The world is changing so rapidly that almost anything is possible.  Still, I’d be astonished if they could install a cashless society in less than three years.  I wouldn’t be surprised if it took more than ten.


If you take a close look at the upper left-hand corner of the graphic, you’ll see that the U.S. (actually, “North America”) is the world’s most “cashless” society.  A majority (about 52%) of North American monetary transactions already take place by means of some media other than cash.  That would certainly include credit and debit cards and probably includes checks and money orders.

For the rest of the world, the majority (even the vast majority) of monetary transactions take place by means of cash.

Even for the U.S., 48% of all of our transactions still take place with cash.


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Posted by on May 17, 2016 in Banking, Monetary policy, Money




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