Sunday, February 08, 2009

The Silver Price

The silver price is chomping at the bit to take off:

An equal spacing tool on the 2 year chart is suggesting it, too.

How high will silver be by the end of March?


Both silver and gold should be itching to take off since it is business as usual at the PTB's (Powers That Be) White House. There is no change. The spending plans are bigger than ever; read debt increases at the US Treasury and garbage assets on the books of The Fed bigger than ever. They just replaced one puppet with another puppet to quiet down the citizen units; to buy some more time.

Bait for the Two-Legged Rat

"this week, I stopped in at a local sandwich shop and, to occupy myself with something other than looking out the window, took hold of a regional real estate guide that, as part of its editorial features, includes a table showing all of the lenders who do business in the area - 16 in all.

Among other information, the lenders' table displayed whether or not the various lending institutions offer "Mortgages to Buyers with Less Than 20% Down?"... and whether they "Offer Mortgages with Credit Scores Under 600?"

Even today, after all the news and global angst, 9 out of 16 still advertise that they offer loans to individuals with credit scores below 600, and four of them actively promote the fact that they'll go down to 580 - which is roughly the credit rating of an escaped felon on the run for credit card fraud. But such a loan, each of the listing institutions further qualifies, is available "Only w/FHA."

And 12 out of 16 will still give you a loan with less than 20% down... in fact, "w/FHA," the solid majority will still provide a loan with less than 5% down, and one touted the availability of a 103% loan."

It could get so bad that the US Treasury and/or The Fed break. After all, the world is now questioning the "full faith and credit" BS/crap of the US government.

"The Insolvency of the Fed

Daily Article by Philipp Bagus and Markus H. Schiml | Posted on 2/5/2009 12:00:00 AM

Since August 15, 1971 the US dollar has been an irredeemable paper currency. Every irredeemable paper currency in history has failed. Yet, the experiment of the US dollar and the rest of the fiat paper world continues.

During the current crisis, however, financial systems all over the world are increasingly struggling, and the end of the experiment seems closer. In fact, the Federal Reserve System has used up much of its "ammunition" for monetary interventions in an attempt to keep the experiment going, lowering its target interest rate almost to zero. Other central banks are also quickly approaching the "zero limit" for interest rates." ....


The US Treasury needs to borrow about 2-2.5 trillion this year.

The US governments budget deficit will be about 1 trillion this year.

FOMC Committee member Janet Yellen said that the idea that more borrowing from the Fed by the US Treasury will lead to higher inflation and higher interest rates is "ludicrous". Same 'ol black is white stuff.

The new president has attempted to appoint 4 tax dodgers to high office.

What has changed?


The AMEX's gold bug index, the HUI is suggesting that the silver price wants to take off, too.

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