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The last artificial run up to around 3¢ was done by a non related 3rd party also. That was last year around this time. Why would anyone pay $10G to pump unless they were planning a dump? Been my experience that when the paid promoters come around, they call it "investor awareness" but usually ends with a dump from someone. Humbug!!!!
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Hi Mark- I don't think those are "ifs" anymore. It more a matter of when. I think it's inevitable that the gov't bond market will either collapse or make new debt become unaffordable. The only thing keeping it afloat now is like the old adage- if I owe the bank $1000 I have to worry about it. If I owe the bank $1,000,000 the bank worries about it.
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Hello all. By now everyone has read or at least heard of the latest from the company. It was all good news and got everyone's level of excitement going up. Now we need to see the results of their hard work reflected in the Ks and Qs. This is an SEC compliant company and investors want to see those numbers in filings. Investors, not day or swing traders. Nibbled another 100,000 shares last week myself and am still looking forward to March 2012- share the joy. Like I mentioned to someone last week, quit looking for that pie in the sky as more than likely you'll get a face full of bird crap. Think long term. It's looking real good from my point of view. My best to all here.
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Bullwinkle- may I suggest you also invest in a pump shotgun and a semi auto rifle. Handguns are great for close quarters but many times you can diffuse a situation from a distance before it gets too close. And don't run out of ammo, keep plenty on hand and store in a dry place. I know most people abhor a loaded gun in the house but if you have no children it would be wise to consider. Make sure all family members are in on the conversation. In a home invasion, by the time you unlock the guns and load them it could already be too late. I'm not a gun nut nor a survivalist, just practical. Where I live there are no police. If you call them it takes 2+ hours to find you if they can. But there is almost no crime here other than an occasional meth lab. Everybody has guns and everybody knows everybody has guns and if you get caught in the wrong circumstances you just may get shot, and no jury up here would convict for protecting person and property. Just a heads up for you.BTW, great prep plans you have. In addition to survival you may want to consider gold and silver for barter. Alcohol and tobacco are also great barter items.
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It's a shame our elected officials didn't listen to the people like the Icelanders did. At election time I sincerely hope that the voters throw out each and every one of them that voted to give the robber barons all that money (TARP). Any voter that gives any one of them their vote is just asking for more of the same, further paving the road to the doom of the American empire. I'm with Denninger:
Iceland: Now Finish The Job
Iceland's voters took the first step toward the right thing:
Ninety-three percent voted against the so-called Icesave bill, according to preliminary results on national broadcaster RUV. Final results will be published today.
The next step would be to quash any talk of a "new accord."
There is exactly one accord to take: Tell the Netherlands and British to stick it.
They decided to step in on their own without the consent of the Iceland population when Iceland's version of the FDIC ran out of money. It was their decision, not the Icelandic people's to do so.
Voters rejected the bill because “ordinary people, farmers and fishermen, taxpayers, doctors, nurses, teachers, are being asked to shoulder through their taxes a burden that was created by irresponsible greedy bankers,” said President Olafur R. Grimsson, whose rejection of the bill resulted in the plebiscite, in a Bloomberg Television interview on March 5.
That's correct.
The people didn't cause the bankers to do the irresponsible things that led to this, just as the people in the US didn't cause our bankers to do so.
The bankers, with superior knowledge and all their grand mathematical models, took a bet.
The bet was that they could intentionally make bad loans and intentionally fail to disclose risks, and if the bet turned out poorly the people, who did not consent to be stooges, would bail them out.
Iceland's people have said no.
That should be the end of the discussion. The Netherlands and British should bear the costs - all of them - of their own decision to bail out their citizens. That decision was uniquely theirs and did not come with the consent of the Icelandic population - a consent that was belatedly sought and now has been overwhelmingly rejected.
That is the beginning and end of the discussion.
If that decision is not respected, and Iceland's parliament continues to try to subjugate the people to pay for an act they were not responsible for, then the people must rise and put a stop to it, in its entirety.
By whatever means are necessary.
To the people of Iceland:
You have my full and unwavering support. Do not knuckle under. These banksters - these criminals - attempted to steal your economic futures, dreams and hopes.
They intentionally and with malice aforethought put together financial programs they knew could not succeed in the long term, believing they could saddle you with the costs while keeping the benefits to themselves.
You have repudiated that belief.
You are a beacon of light in a world of darkness.
Now finish the job and send these jackals - these robber barons, brigands and thieves - packing. Eject them, and the ruin they bring, from your nation now and evermore, replacing them with sound, local, and accountable financial institutions that are not run for the sake of bubbles and cute mathematical models but rather on sound principles such as ONE DOLLAR OF CAPITAL.
May this vote be the start of an international citizen revolt - peaceful revolt - against the brigand-style fraud rained down upon the word by the pinstripe-wearing scam-meisters known as "banksters."
Yes, I do believe we have one to hold for a while here. I've flipped this in the past a couple times and did well so I have kept it on radar. I think I'll be looking to get some free riders and let them go where they may on a longer term basis. JMHO, but with the share structure and some good news from the company this could go multi pennies in an hour's trading or less.
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its current value in being a company listed
There's your real key to higher share price. When that starts to happen, look out above.
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Agree there. When and if they go for the higher exchange the O/S will be in control of voting. Those preferreds cannot be used to control the company. Retired shares could and should go into treasury and as such has no vote.
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Hey Lurker, nice post of your thoughts. The only thing I would want to add is re: buyout. The common shares are not in control of the company. Clint has a lock on the preferred which has voting control of the company. A buyout would have to wrest control of the preferred to control the company. Now if we go to a higher exchange that will have to change. Companies listed on the 3 higher exchanges are not allowed to control the company thru super voting rights on a preferred stock. The common stock must become available to vote on required company business. This is my impression. If wrong please correct me.
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If I really cared about getting the divi I would already have made the call. I think the issue here is who is responsible- the shareholder or the company. This is the first dividend I have ever heard of that requires the shareholder to take any action to receive it. Over the years I have received numerous dividends. All of them have landed in my accounts and never have I had to take any actions to receive them. I really don't think I'm out of line to expect those shares to land in my account w/o any action on my part. But, then again, this is pinkieland where the unexpected is almost an everyday occurance. I only responded to you to point out that if whomever is responsible for distributing those shares is telling you that they have all been distributed, then he or she is lying to you.
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CaptainJim- hate to be disagreeable but those shares have not landed in my account. I read your post and went to look and nothing resembling kinderview has been posted. My shares are in street name. A divi was declared and it is not my obligation to persue it. It is the obligation of the company thru the TA to distribute the dividend. Disagree if you like but I do believe securities law will agree with me. Personally I think the kinderview shares are just wallpaper anyway, but that is only my opinion. The monies to be made here will come from Mr Weiss's actions.
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I was in this last year when they dropped this all the way down to .0003 then it ran to over .004 the next day. Games? I'll say!
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Seen this before many times. It's a whole different ballgame in pennyland. Share counts, floats, press releases, pump and dumpers, MM games- it all comes into play.
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I agree!! eom
last 200000 was my buy, thought it might move it along, LOL.
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Picked up another 300000. If there wasn't a big seller at .0021 then I can only see it as naked shorting by the MMs. Now they will need to scare holders into selling to cover. I usually don't subscribe to that theory due to large floats and share counts. But this one is too tight to not consider it as almost obvious. Games must be played to make $$$ and the MMs are far more astute than the average investor/trader.LOL
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Deals are looking real good. Now we wait to see the numbers on the Qs and Ks. That will be the real game changer.
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Seeing some good hits here. Picked up half a mill on speculation. This has run in the past several times. Ready to go again? Could very well be. GL2 all.
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I don't know about anyone else but after the lengthy quiet period, all this good news is certainly refreshing. Glad to see the company is doing and accomplishing. Earnings and share price will reflect eventually. 2012? Heppie?
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news out:-
Dale Jarrett Racing Adventure Sets Back to Back Sales Records
11:49a ET March 3, 2010 (PR NewsWire)
Dale Jarrett Racing Adventure, Inc. (OTC Bulletin Board: DJRT), the "Full Throttle" lifetime experience company, announces that it broke all-time sales records for January and February. January sales exceeded $127,000 eclipsing 09's sales by over 14% and beating 07's previous best by 11%. February's $178,000 in sales blew away the previous February record by 23%.
Retail sales led the record setting pace with internet sales enjoying a year to year increase of 70% in February. According to CEO, Tim Shannon, "It's rewarding knowing that our focus on delivering absolutely the best racing adventure available, continues to pay dividends, even in this challenging economy. Every day represents another opportunity to increase customer satisfaction, improve our product and generate enthusiastic word-of-mouth advertising that drives results like these. We acknowledge our team of dedicated employees who help bring about these numbers." Dale Jarrett Racing Adventure's website can be found at http://www.racingadventure.com
About Dale Jarrett Racing Adventure
The Dale Jarrett Racing Adventure offers racing fans the opportunity race an authentic racecar on a major racetrack. Our racing "adventurers" enjoy a life-defining experience. They receive vital training from top racing instructors, wear real racing suits and safety gear, and pilot a racecar that was once driven by one of the racing greats. Hand signals from the instructor teach you to race like the pros. Surpasses "follow-the-leader" approaches and teaches guests to race like NASCAR drivers, find the line, draft, and pass for optimum fun. Our 100% safety record and numerous celebrity endorsements testify to the excitement and unforgettable thrill of our racing adventure.
Forward-Looking Statements
Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Dale Jarrett Racing Adventure, Inc. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to Dale Jarrett Racing Adventure's anticipated financial performance, business prospects, new developments, strategies and similar matters. Dale Jarrett Racing Adventure disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
Media Contact: Tim Shannon of Dale Jarrett Racing Adventure, Inc., 888-467-2231
SOURCE Dale Jarrett Racing Adventure, Inc.
Was out most of the day but it sure looks like I missed something. If the float is in strong hands as some have suggested this may just continue. If there are a bunch of holders that are just waiting to minimize their losses there will be some bumps and grinds along the way. I'm still in Heppie's camp. 2012 is not that far away. It does look like the game changer has arrived and folks seem to like what they have read.
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It's no secret. Public pressure can usually force some action. But you need a lot of it. Sadly, if nothing is done to right the wrongs and the wrongs continue unabated like they have been, there will be more Joe Stacks coming out of the woodwork. It only takes a miniscule percentage of the disgusted to cause havoc. Personally I'm preparing for chaos, but I also haven't completely given up on the people we elect to represent us. They may think I'm a nag expressing my views, but a lot more nagging is needed to really get their attention.
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Everyone that reads this article should copy and paste it to their own congressman and ask point blank what they plan to do about it. Everywhere in the world there is financial turmoil the firm of Goldman Sachs seems to come up somewhere in the picture.
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personally I could care less about GS stock. But I would like to see everyone involved that participated in creating this current mess our economy is in spend a long stint in a non country club jailhouse. There is a long list that includes many GS employees as well as other wall street firms. And don't forget Paulson, Geithner and others in the regulatory offices who committed malfeasance by looking the other way while all this was going on. I'm really afraid that if nothing is done to rein in fraudulant behavior and prosecute it, many more Joe Stacks will come out of the woodwork. A good friend of mine works private security in NYC. He tells me business is booming. I wonder why.
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Re 8K- when everyone is finished reading it please post your comments, Thanks
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Porter Stansberry: This is one of the biggest Wall Street frauds ever... Thursday, February 25, 2010
By Porter Stansberry in the S&A Digest:
One of the best lessons I've learned over my career as an investment analyst is the myth of excellent management or "great execution" is really just that – a myth.
When I see companies in troubled industries reporting quarter after quarter of great results, while all of their peers are getting killed, I know a fraud is going on. I remember in the early 2000s, WorldCom kept reporting profits when all of the other long-distance carriers were getting killed. I knew it couldn't last. And it didn't. WorldCom's accounting was revealed to be a fraud – the company was counting its network access costs as capital expenses. Once the real numbers came out, the company collapsed in what was the largest bankruptcy in American history at that point.
About three years ago, I saw Goldman Sachs reporting quarter after quarter of unbelievable results when all of the other investment banks were hurting. I spent a lot of time looking at its numbers – which didn't make any sense. It reminded me of Enron. It kept reporting bigger and bigger profits, but lost more money every year in cash. And its debt balances kept growing.
I wrote a lot about this in The Digest, but I never officially recommended shorting Goldman in my newsletter because I literally couldn't figure out how Goldman Sachs was doing it. I couldn't find the smoking gun... but I knew a giant fraud would be discovered there, eventually.
In October 2008, I figured out part of the big secret: Goldman had insured all of its subprime exposure via AIG. This allowed it to book huge profits on its subprime investments long before they were actually paid off because the bonds were insured. Of course, it was all a sham – AIG didn't have nearly enough money to pay off any of the insurance. (See the October issue of PSIA for more details.) A source close to the company even told me how big the exposure to AIG really was – $20 billion. That's roughly 100% of the profit Goldman claimed in 2006 and 2007, at the height of the credit bubble. Goldman completely denied my report and claimed it had zero exposure to AIG.
As was subsequently revealed in the spring of 2009, my report was right on the money. Goldman had roughly $20 billion in exposure to AIG and received roughly $14 billion of money the federal government used to bail out AIG.
But I completely missed one big part of the story... And once this fact becomes common knowledge, it will probably mean jail time for several leading Goldman executives and the end of the firm. What did I miss? The entire Goldman-AIG relationship was a complete sham. Let me explain...
Goldman eventually admitted it had insured roughly $20 billion worth of subprime CDOs with AIG and had major exposure to the firm. But the New York Federal Reserve and Goldman Sachs never revealed this critical fact: Goldman didn't merely buy insurance on a bunch of random subprime CDOs. It actually bought insurance on special CDOs it had put together and sold to its own clients. In other words, Goldman knew more about these CDOs than anyone else. Goldman bought insurance on these CDOs because it knew they'd collapse.
This is tantamount to building a house, planting a bomb in it, selling it to an unsuspecting buyer, and buying $20 billion worth of life insurance on the homeowner – who you know is going to die!
These facts all came to light because of research done by the office of Darrell Issa, the ranking Republican on the House Committee on Oversight and Government Reform. These new documents will certainly lead to a full investigation of the Goldman-AIG dealings and the subsequent $180 billion bailout led by the New York Federal Reserve. My bet? Heads will roll. If you own Goldman Sachs, you'd better sell.
Porter Stansberry: This is one of the biggest Wall Street frauds ever... Thursday, February 25, 2010
By Porter Stansberry in the S&A Digest:
One of the best lessons I've learned over my career as an investment analyst is the myth of excellent management or "great execution" is really just that – a myth.
When I see companies in troubled industries reporting quarter after quarter of great results, while all of their peers are getting killed, I know a fraud is going on. I remember in the early 2000s, WorldCom kept reporting profits when all of the other long-distance carriers were getting killed. I knew it couldn't last. And it didn't. WorldCom's accounting was revealed to be a fraud – the company was counting its network access costs as capital expenses. Once the real numbers came out, the company collapsed in what was the largest bankruptcy in American history at that point.
About three years ago, I saw Goldman Sachs reporting quarter after quarter of unbelievable results when all of the other investment banks were hurting. I spent a lot of time looking at its numbers – which didn't make any sense. It reminded me of Enron. It kept reporting bigger and bigger profits, but lost more money every year in cash. And its debt balances kept growing.
I wrote a lot about this in The Digest, but I never officially recommended shorting Goldman in my newsletter because I literally couldn't figure out how Goldman Sachs was doing it. I couldn't find the smoking gun... but I knew a giant fraud would be discovered there, eventually.
In October 2008, I figured out part of the big secret: Goldman had insured all of its subprime exposure via AIG. This allowed it to book huge profits on its subprime investments long before they were actually paid off because the bonds were insured. Of course, it was all a sham – AIG didn't have nearly enough money to pay off any of the insurance. (See the October issue of PSIA for more details.) A source close to the company even told me how big the exposure to AIG really was – $20 billion. That's roughly 100% of the profit Goldman claimed in 2006 and 2007, at the height of the credit bubble. Goldman completely denied my report and claimed it had zero exposure to AIG.
As was subsequently revealed in the spring of 2009, my report was right on the money. Goldman had roughly $20 billion in exposure to AIG and received roughly $14 billion of money the federal government used to bail out AIG.
But I completely missed one big part of the story... And once this fact becomes common knowledge, it will probably mean jail time for several leading Goldman executives and the end of the firm. What did I miss? The entire Goldman-AIG relationship was a complete sham. Let me explain...
Goldman eventually admitted it had insured roughly $20 billion worth of subprime CDOs with AIG and had major exposure to the firm. But the New York Federal Reserve and Goldman Sachs never revealed this critical fact: Goldman didn't merely buy insurance on a bunch of random subprime CDOs. It actually bought insurance on special CDOs it had put together and sold to its own clients. In other words, Goldman knew more about these CDOs than anyone else. Goldman bought insurance on these CDOs because it knew they'd collapse.
This is tantamount to building a house, planting a bomb in it, selling it to an unsuspecting buyer, and buying $20 billion worth of life insurance on the homeowner – who you know is going to die!
These facts all came to light because of research done by the office of Darrell Issa, the ranking Republican on the House Committee on Oversight and Government Reform. These new documents will certainly lead to a full investigation of the Goldman-AIG dealings and the subsequent $180 billion bailout led by the New York Federal Reserve. My bet? Heads will roll. If you own Goldman Sachs, you'd better sell.
SPOC up 150% on 1.3 million shares eom
Some simple math from Denninger:
How Long Before You Wake Up, Politicos?
I'm going to write today about a very somber subject. It will be, as it usually is here in one form or another, about math.
First, some background. If you believe that we have "escaped" from the mess that gripped this nation in 2008 and 2009, or that said mess "suddenly appeared" and "nobody saw it coming", stop reading now and have your Thorazine dosage checked. It's way off.
Assuming you accept the truth - that this mess was 20 year or more in the making, that it involved creating credit (that is, debt) which the debtor could never pay, and that it still exists because our government policy has been to extend, pretend and allow lies that should be considered accounting fraud and result in prison sentences, then you're on the right page to understand the rest of this missive. Again, if not, go check your Thorazine dosage.
Yes, I know all about the stock market rally from last March. I know all about the claimed GDP "improvement." But I also know that we got both by adding more than $2 trillion in debt to the United States - or roughly 14% of GDP - over the space of the last 18 months. That's about 10% of GDP annualized, and incidentally, a 10% GDP contraction is the common economist's definition of an Economic Depression.
So let's cut the crap - we are in a Depression right now. We are pretending we are not, just like you can pretend you didn't really lose your job so long as your credit card does not reach its limit. We have been in that depression for about 18 months and there is no evidence that we will exit it, as we have yet to find a way to pull back the deficit spending without an instantaneous collapse in the economy.
Yet at some point we must and will stop. We will either do so of our own volition, or we will do so when the cost of borrowing skyrockets, as others get tired of funding our profligacy. If we attempt to "print" our way out of it the cost of petroleum products will shoot the moon and destroy our economy anyway.
You haven't seen the half of what happened though - not yet. It appears that AIG - the company we have bailed out (thus far) to the tune of some $100 billion plus, in fact isn't done. It appears they may have written credit protection on Greece. If this allegation by the German equivalent to The New York Times is true Americans are going to be asked to pay billions of dollars - or more likely, hundreds of billions (since Greece is almost certainly not the only place - try Spain, Portugal, Ireland, etc) to bail out a bunch of FOREIGN NATIONS.
Do you both think Americans can and will pay that bill? A bill that has been forced on us, and yet benefits not The United States economy, but foreigners?
Wars - big wars - start over much less, my friends.
Oh, and let's not forget - some 30% of Greece's workers went out on strike to protest their "austerity measures." That's right - one in three.
The Fed and our fabulous Treasury Secretary already gave tens of billions of our hard-earned money to foreign banks to prop them up via AIG. That was just a down payment; now we all get to - quite literally - buy all their houses over in Europe. They get to keep living in them.
If you do not believe it is going to get much worse than it is now, economically and otherwise, you once again need to go have that Thorazine dosage adjusted.
A recent Rasmussen poll disclosed that only 21% of the voters in this country believe that the government enjoys the consent of the governed. Put another way, only 21% of the voters in this nation consent to what Washington is doing.
More ominously, 61% say the government does NOT have consent. The remainder (18%) are not sure.
May I remind you that in 1776 less than that 21% of the population (19%, actually) were loyal to Britain?
If you do not believe this nation is wound tighter than a clock spring, you need to have that Thorazine dosage checked again.
You are in denial.
After denial comes anger, then bargaining, and finally acceptance.
Let's not do anger on a mass scale in this country, ok?
Neither I or my daughter will appreciate it if it happens; shall we skip that and go right to "acceptance"?
Let's assume your answer is "yes."
Now let's talk numbers.
There are approximately 150,000 federally-attached law enforcement personnel. Another 750,000, roughly, state and local cops are employed by our various government arms. Of those various officers well more than half sit behind a desk and haven't left one gram of shoe leather on a street or in a cruiser in the last year. The majority of you fire your weapons for periodic qualification and they have never been warm or dirty besides. You've never faced death, you've never had a weapon pointed at you in anger, and you've never drawn your service weapon in the line of duty. Those are facts.
Now consider the "bad side" of America. The Justice Department estimates there are at least one million gang members - active gang members - in America. These people, mostly young males, have nearly all drawn or fired weapons in anger. They are responsible for more than three quarters of all crime in this country, and some eight out of ten violent crimes. Those gang members have families - younger males who are "coming up", "friends" (if you can call a murderous thug a friend) and others. Between all of those "loosely attached" folks and the hard-core inner circle itself we probably have somewhere between 5 and 10 million people in this nation who, given the wrong sort of provocation, might decide that "Zombieland" wasn't just a movie.
Our politicians created most of these monsters so the "finest" would have something to do. A nearly-100-year obsession with what consenting adults put in their bodies is largely responsible for this, and an intentional policy of allowing an effective invasion of illegal aliens over our southern border provides some the most-violent core of this group. The illegal drug trade has fueled international wars, international gangs, and virtually all of the organized violent crime in this nation going back to Prohibition. Essentially every automatic weapon in the hands of criminals (and there are plenty of them) comes into the US through this same intentionally-left-open border as do the gangbangers, lies of this (and previous) administrations notwithstanding. Those of you in the Law Enforcement business may not want to accept these facts, but if you reflect on it you cannot escape reality: weapons, ammunition and other means of street thuggery all cost money, and without these drugs being illegal there would be no profit in it, and thus a huge part of the criminal gangland element would not exist. You've cheered on the War on Drugs as it has meant more cops being hired and more, better, fancier toys for you to play with, along with $200,000+ pensions (in some areas.) You've been fools and even self-destructive assholes for having done so. But that, today, is water over the dam - the bad guys are here, they're not leaving, and there's no evidence that the political class is going to suddenly legalize these substances tomorrow, cutting the source of funds for the thugs off at the knees - after all, you won't rise up and demand it happen. So we must deal with reality on the ground as it is (and as you have cheered on the creation of), whether we like it or not.
As I'm sure you're aware all of America sees some of our "finest", not to mention our politicians, in various forms of misbehavior virtually on a daily basis. A girl beaten on a train platform while uniformed rail security stands and watches. A young man who appears to have been executed by a different rail security officer, even after he was subdued, face-down, without a weapon and easily able to be cuffed. The infamous Rodney King incident. The false accusations against the Duke Lacrosse team that threatened young men with many years behind bars for something that never happened. Our current Treasury Secretary who cheated on his taxes, not to mention the chair of the House Ways and Means Committee who did as well (that's the committee that writes tax law, if you're not up on your American Government.) And now, in the latest bit of ignobility we're expected to swallow, we have accusations that a school district has been taking pictures of kids in their bedrooms using state-issued laptops that said kids were required to accept in order to pass their high school classes.
Here's the problem: We the people increasingly don't trust you, the law enforcement community, and we definitely don't trust Washington. It's not just beating a black man within an inch of his life, or shooting a prone, subdued suspect in the back.
Oh that's bad enough, don't get me wrong, but it gets worse.
Much worse.
See, our economy wasn't ruined by accident. These crimes of economic activity were every bit as destructive, if not more so, than the bank robber, rapist or even murderer is. These economic offenses have literally dispossessed millions of Americans of everything they once owned. They have destroyed the hopes, dreams, and lifestyles of entire cities, sent tens of millions of jobs overseas into slave labor camps and stripped off the wealth of our nation through the issuance of securities that were worth nothing, just to add insult (and yet more profit for these banksters) to injury. Take a drive through Detroit if you doubt me, if you dare, and are appropriately armed to defend yourself (you'll need the latter, especially if you're white.)
As I noted above the bad news is nowhere near being over. We're denying as a nation, as corporations, as politicians and as people. You've drank your coffee and eaten your donuts, but what you haven't done is taken the initiative and marched down onto Wall Street and K Street (in DC), along with the myriad bankers, mortgage brokers and yes, even borrowers who were lying and cheating at the same time. You should have broke out the handcuffs by the crate-load and frog-marched these people into the dock en-masse over the last two decades, but you didn't. You should do it today, but you won't.
I know, you don't make the laws and you just follow orders from above.
But you're who we see. You're "The Badge" or "The Squad." And what we, the people don't see is perp walks of those people who richly deserve it - who have in fact broken the law and destroyed our nation's economic vitality for their own personal profit.
Remember, ladies and gentlemen, no matter what branch of law enforcement you hail from, your primary oath was not to a person. It is not to your commander, your captain or your squad.
Your oath is to The Constitution. You swore to defend that Constitution against all enemies, foreign and domestic. You swore to God and countryman alike, and your oath does not have a "use by" date at which point it expires.
Now consider this: the unspoken "social contract" says that the good guys go about their business without harming other people, and the occasional miscreant commits some offense, gets arrested and put in the dock by you. There they face their twelve, and in many cases subsequently do their time.
But what really inhibits the miscreant from his deed? Is it that you will show up and take a report after the stereo is stolen, the car burgled or the bank robbed, and attempt post-hoc to have them face the music?
No.
It is the possibility that he will break into or attempt to rob a home or business that has an armed citizen in it who is prepared and willing to defend him or herself. Armed not only with the ability to fight back but the weapon of familiarity of surrounding, said homeowner or shopkeeper might well splatter the brain of said felonious thug all over the far wall - in righteous and perfectly-legal defense of one's person (except in places like Chicago, of course.) The truth of this is clear on its face - those places where citizens are "restricted" (illegally, I might add, under the clear language of our Constitution) from mounting their own defense to rape, robbery or murder the bad guys pretty much take turns "at will", as opposed to places like Kennesaw Georgia which mandate instead that every homeowner have a firearm and ammunition.
One last thing to consider, and I will leave you be, as I have others to address this fine day.
If it gets bad, and I believe both history and the math says it will, who's going to help you? Do you really think the entirety of the 150,000 Federal Officers will come to your aid? Or will they sit in Washington DC and in their big black Suburbans (armored, of course) issuing orders for you to go into the streets in your (unarmored) Crown Vics and die in their place? Remember that the "bad guys" in such a circumstance outnumber you 10 or even 20:1 and not only are they probably armed as well as you are, they've actually shot - offensively - at other human beings. Unless you're one of the "bad cops" you've never done that, and few of you have had to fire in self-defense. Your only realistic advantage in such a situation is that most of the gangbangers are pretty poor marksman.
What's the outcome of such an event likely to be? Remember, we may distrust you, but the bad guys hate you to the core and would BBQ and eat you for dinner if they thought they could get away with it. If things get bad they might deduce - en-masse - that they can get away with it.
Let's face facts: while today we all count on being able to pick up the phone and call "911" if we need an officer to take a report on our stolen stereo, if the bad times come you will need us, not the other way around. We the people will, under such a circumstance, have the luxury of determining whether your oath of office has been faithfully discharged, or whether the only difference at that instant between you and the gangbanger is that you've got a fancy hat and a nicer car.
Most of us, should we determine that you're just the thug with the fancy hat will hide under the desk. We won't shoot at you - that's not our way. We're law-abiding citizens, for the most part, and while we will shoot back, we won't shoot first. But what we won't do is help you, because your time - your opportunity to help us prevent this catastrophe - will have expired. We will protect our neighbors, our friends, our fellow citizens.
But that's all.
You will get to deal with Zombieland, and in the back of your mind as you're literally consumed will ring that old saw you laid on us for the last two decades: "I just follow orders; I don't make the rules."
Be honest with yourselves: Is this where you want to be, or would changing things now be worthwhile? Would regaining the trust of the people be a good thing? Would replacing the large percentage of law-abiding citizens who now would spit on your shoes with those who will stand shoulder-to-shoulder with you, weapons facing the oncoming zombie hoard, be a good thing?
If so you have some work to do and there's still time left to accomplish it.
To the politicians who are reading this, your Thorazine dosage needs adjustment as well. The math is irrefutable. If, in point of fact, AIG has entangled itself with the European Continent there is no escape from what is to come. There is only destruction, and our only two choices are to cause as much of it as we can to occur there, by pulling the plug on these clowns now, or risk a literal World War. We may get one anyway, but if we bring the bulk of the damage here we'll be dealing with a civil collapse at the same time, and have no chance of being able to deal with the geopolitical implications. We must not allow that to happen. You must not allow that to happen.
We understand you give the orders to the people I've been talking to (mostly) up above. But you have less excuse than they, when it comes to oaths. You all took an oath to uphold The Constitution as well. You've used it as toilet paper, and that's on a good day. The rest of the time we see you gleefully burning it in the Wells of the House and Senate, dancing around the smoke and fire like some odd pagan ritual.
It's time to stop. Not because you want to, not because you fear us (even though you should - after all, we're your employers and can fire you) but because if you don't there won't be a nation worth governing left. You know who the crooks are - including those among you.
Let's talk taking this nation back.
It starts with declaring all CDS written against sovereign debt, directly or indirectly, void as contrary to public policy. Yes, that cuts Europe off from any prospect of a US bailout. So be it.
Next, all the banksters who were involved in these bogus securitizations need to be hauled into the dock. Now. William Black and his merry men sent over 1,000 people to the slammer in the S&L crisis. There are ten times that many who need to go this time.
Third, force all credit-default swaps onto a public exchange with published bids, offers, last trades, open interest and nightly margining. In public, where we all can see it. Either that or ban these obscenities outright. Choose one, and only one of those two options, and do it now. Yes, I know the banksters will howl. Too damn bad, and while you're at it, make it unlawful for any institution that does business in this country to transact in any way in any instrument that does not comply with that rule. This monster, as I've been writing about for almost three years now, must be caged.
Fourth, reinstate Glass-Steagall. Yeah, I know, the Senate doesn't want to do it. The Senate wants a nation that's worth governing though, right? We won't have one if this crap isn't stopped. Mssrs. Glass and Steagall had it right in the 1930s. Put it back.
Fifth, stop lying to the people - and this includes lies told through deficit spending. We don't have the money and can't keep borrowing it. If you don't stop we will find the "knee point" the hard way, at which point once again, you won't have a nation worth governing. Remember the four steps above - neither I or my daughter, nor most of the 330 million Americans in this country, want to see the "anger" phase. Our country is like a powder keg and every time you lie you're playing with matches in the room. Stop it before you blow us all up.
Sixth, we're in a Depression, like it or not, and we're not going to get out of it until the bad debt is defaulted and cleared from the system. Your job is to make that happen and get it over with. That's deflationary. Sorry; this is math, not politics. The housing bubble was a hyperinflationary event - one hidden from the people by bogus government statistics and outright lies. Deflation always follows hyperinflationary credit booms - it's either that, or the destruction of the government, political system and currency. You choose, but if you do not decide, destruction it will be.
Seventh, close the damn border and declare all the illegal immigrants as what they are - invaders. Tell them to either leave or will expel them - and mean it. Declare "LaRaza" a terrorist organization and lock 'em all up. Americans need the jobs and we cannot afford to have five or ten million thugs just waiting for opportunity in the smallest loss of civil order to swoop in and take advantage of us all. At the same time, drop your insane "War on Drugs" and replace it with a taxation, regulation and legalization structure. Yes, I said legalize - federally. While we still have time we must cut off the chief funding source for the murderous thugs who otherwise, given the opportunity, will feast on you after they BBQ the local and state law enforcement crowd in our major cities. Don't BS me or anyone else with your claims that such isn't a real risk - I don't see you strolling around in your fancy suits through the bad parts of Washington DC sans security details. Gee, I wonder why not......
Finally, to President Obama. You can't serve both the banksters and The American People. You took the oath of office too. Now you have to choose. Not only will you lose in 2012 (badly) if you don't start locking up the jackasses that got us into this mess but if you don't ram the above seven points down the throats of these banksters and others in the next couple of months your party will be decimated in the November elections. Some of your oldest allies in the Democratic Party are resigning; Senator Bayh, for example. Illinois' State financial health is akin to someone with terminal pancreatic cancer, and that's where you're going home to in 2012 if you don't quit being nice-nice with people who have played rape-rape to the American people and economy for the last two decades. You didn't make the mess (you weren't around long enough to do it) but you had damn well better clean it up, or what will be left of this nation is unlikely to be worth governing by the time your term expires.
Health care may be important but not until the above is taken care of. Fixing the financial system is the issue you must confront and fix in its entirety. Not half-way, not by compromise - you simply must fix it. The seven points above are not options, they're not discussion points - they're mandatory. All of them. Don't believe me if you don't want to - believe Charlie Munger, one of the wisest investment professionals ever to live, and, in my opinion, the smarter half of Berkshire Hathaway (with no disrespect intended to Warren.)
The choice is yours Mr. President, but the consequences will belong to all of us.
Choose wisely.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION,
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 19, 2010
ETERNAL IMAGE, INC.
(Exact name of registrant as specified in its charter)
Delaware
000-18889
20-4433227
(State or other jurisdiction of incorporation)
(Commission file number)
(IRS Employer Identification No.)
28800 Orchard Lake Road, Suite 130, Farmington, MI
FFFarmington Hills, MI
48334
(Address of principal executive offices)
(Zip Code)
Registrants’ telephone number including area code: (248) 932-3333
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
--------------------------------------------------------------------------------
SECTION 1 – REGISTRANT’S BUSINESS AND OPERATIONS
ITEM 1.01 Entry into a Material Agreement.
On February 19, 2010, Eternal Image, Inc. (the “Company”) finalized a sublicense agreement which it had entered into on August 10, 2010, with Gruppo Santony, LLC , a California limited liability company having its North American headquarters office at 2017 East Lee Street, Tucson, Arizona 85719 (“Sublicensor” or “GS”),. Sublicensor has an exclusive worldwide license (the “License”) with Vatican Observatory Foundation (“VOF”), to manufacture, sell and distribute Products (as defined below) and to utilize the name and logo of the Specola Vaticana, i.e. the Vatican Observatory and/or the Vatican Observatory Collection.. The VOF is an astronomical research and educational institution supported by the Pope who is the head of the Roman Catholic Church. The implementation and finalization of the sublicense agreement was conditioned upon approval by the VOF. The VOF approved (finalized) the sublicense agreement on February 19, 2010.
“Product(s)” are defined in the sublicense as any religious themed products or products accented or produced in association with the logo(s) of the Vatican Observatory, manufactured and distributed by the Company as a sublicensor or its sublicensees, and any services licensed or performed by the Company or its sublicensees, in each case utilizing the name and logo of the Vatican Observatory. The territory covered by the sublicense agreement is worldwide with the exception of Vatican City and Rome. The initial term of the sublicense agreement is a renewal five years period from the approval of the sublicense agreement by the VOF. Specifically, pursuant to the sublicense, the Company has the exclusive right to produce and sell the following VOF themed products:
1.
Urns and components, including cremation keepsakes;
2.
Caskets and components, including casket veils;
3.
Burial vaults, burial niches and columbaria;
4.
Monuments, markers and bronze work;
5.
Prayer cards and keepsakes;
6.
Guest Signature Books; and
7.
Memorial Candles.
The sublicense agreement requires the Company to make a non-refundable advance royalty payment in the amount of $200,000 (“Minimum Royalties”). The annual royalty payments by the Company pursuant to the sublicense agreement are to equal to ten percent (10%) of the Company’s receipts for the licensed Products and services sold by the Company. Pursuant to the terms of the sublicense agreement, as extended, the annual non-refundable advance royalty increases by 10% from the prior year.
The executed Sublicense Agreement is attached hereto as exhibit 10.1 and incorporated by reference.
SECTION 8 – OTHER EVENTS
Item 8.01 Other Events.
On February 22, 2010, the Company issued a press release announcing the finalization of the sublicense agreement regarding Vatican themed funerary products.
A copy of the press release is attached hereto as Exhibit 99.1
SECTION 9 – FINANCIAL STATEMENTS and EXHIBITS
ITEM 9.01(d) EXHIBITS
Exhibit Number
Description
10.1
99.1
Sublicense Agreement (February 19, 2010)
February 22, 2010 Press Release
Thanks Mark, I know from where he speaks. Trouble is the powers that are in control will spend millions trying to discredit him. We do need a few hundred more with like philosophies.
..........al
As an aside, do a google search on the oaths Americans swear when they go into many forms of gov't service from an enlisted private in the military all the way up to the President. All oaths have words to the effect of supporting and defending our constitution. Yet how many officials that have taken these oaths have been prosecuted for violating them in the name of law and order or national security? It happens every day yet we the people tolerate it.
.....al
One of my favorite phrases is "perception is reality to the perceiver." Reading his notes, I can't believe this man was psychotic or crazy. First, let me say I don't agree with the harming of other innocents to make a statement. From another point of view, though, could Mr Stack be looked at as a patriot? That is food for thought agree or disagree. Our military commanders send soldiers out every day to fight "terrorism" knowing there will be times some will not return alive or unharmed. Yet this is considered patriotic duty. Most learned readers have read numerous articles over the years pointing out domestic "terrorism" perpetrated by the IRS and other gov't agencies. Many Americans believe the IRS is a terroristic agency. Yet when a person reacts with violence against it they are considered crazy. Every man woman and child has a flash point. Some have more tolerance than others and can be pushed and abused more than others, but there is an individual level at which almost everyone would strike back with violent behavior. Believe me, working at the post office for many years, I have seen it first hand. To sum up, of all the citizens of this country that believe we are lied to and terrorized by our own gov't, that the peoples' best interests are not represented by our elected officials we send to Washington, and that big money buys the best justice you can get, less than 1% will ever really do anything violent in making their views be known.
...........al
another link for suicide note:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46800057
RB, could very well be, but I submit it depends on each individual's time frame. Short term gains are always possible in the market until it crashes. I don't like to hold a stock more than 2 weeks with a few exceptions. Long term precious metals will be the way to go to protect yourself. I always like to profess that if you can't hold it in your hands, your ownership is not secure.
........al
found this on another board:
Bernanke's Bankster's Skimming Operation Exposed
By: Mike_Whitney
Feb 04, 2010 - 06:11 AM
The reappointment of Fed chairman Ben Bernanke means that the opportunity for change has passed and the reform movement is dead. It means that and that derivatives trading, off-balance sheet operations, securitization, dark pools and high frequency trading will go on much as they have before. It means that the public will continue to be gouged so that a handful of Wall Street sharpies can rake in obscene profits using complex "financial innovations" and over-leveraged debt instruments. It means that the entire system will continue to be put at risk to protect the interests of investment banks and hedge funds. It means that the subsidies, the preferential treatment, and the bailouts will continue to fuel populist rage and exacerbate deepening divisions in society. It means that the status quo has been preserved and that it's "business as usual".
No reform movement will succeed as long as Bernanke is at the Fed. He's an agent of the big banks and a Wall Street loyalist. He's also the author of "Too Big To Fail", the controversial theory which provides unlimited state support for financial institutions that are deemed too large or interconnected to fail. TBTF means that capitalism's vital market-clearing function can avoided if one is rich or powerful enough. Bernanke repealed capitalism to save his friends.
The Fed's role in the housing fiasco, goes way beyond Alan Greenspan's low interest rates which helped to ignite a frenzy of speculation. It's clear now, that both Greenspan and Bernanke knew that the multi-trillion dollar credit expansion, was based on mortgages to applicants who had no way of repaying the money they had borrowed. It was a complete scam. Recent testimony by FDIC chairman Sheila Bair before the Financial Crisis Inquiry Commission (Jan 14, 2010) provides many of the details. Naturally, Bair's testimony has been ignored by the media.
Sheila Bair: "Federal consumer protections from predatory and abusive mortgage-lending practices are established principally under the Home Ownership and Equity Protection Act (HOEPA), which is part of the Truth in Lending Act (TILA). TILA and HOEPA regulations are the responsibility of the Board of Governors of the Federal Reserve System (FRB) and apply to both bank and non-bank lenders.
HOEPA, which was enacted in 1994, contains specific statutory protections for a narrow category of high cost loans used for mortgage refinancings. These protections include restrictions on prepayment penalties, balloon payments, and extensions of credit without consideration of a borrower's ability to repay. HOEPA defines these high cost loans in terms of threshold levels for either interest rates or points and fees. Many of the toxic mortgage products that were originated to fund the housing boom did not fall within the high cost loan definition under HOEPA. However, many of these toxic products could have been regulated and restricted under another provision of HOEPA that requires the Federal Reserve to prohibit acts or practices in connection with any mortgage loan that it finds to be unfair or deceptive, or acts and practices associated with refinancing of mortgage loans that it finds abusive or not otherwise in the interest of the borrower.
PROBLEMS IN THE SUBPRIME MORTGAGE MARKET WERE IDENTIFIED WELL BEFORE MANY OF THE ABUSIVE MORTGAGE LOANS WERE MADE. A joint report issued in 2000 by HUD and the Department of the Treasury entitled Curbing Predatory Home Mortgage Lending noted that a very limited number of borrowers benefit from HOEPA's protections because of the high thresholds that a loan must exceed in order for the protections to apply. THE REPORT ALSO FOUND THAT CERTAIN TYPES OF SUBPRIME LOANS APPEAR TO BE HARMFUL OR ABUSIVE IN PRACTICALLY ALL CASES. To address these issues, THE REPORT MADE A NUMBER OF RECOMMENDATIONS INCLUDING THAT THE FEDERAL RESERVE USE ITS HOEPA AUTHORITY TO PROHIBIT CERTAIN UNFAIR DECEPTIVE AND ABUSIVE PRACTICES BY LENDERS AND THIRD PARTIES. During hearings held in 2000, consumer groups urged the Federal Reserve to use its HOEPA rulemaking authority to address concerns about predatory lending. Both the House and Senate held hearings on predatory abuses in the subprime market in May 2000 and July 2001, respectively...."
Bernanke--who followed developments in housing in great detail--didn't lift a finger to stop the predatory lending until 2008 when he finally used his authority to restrict activities in just one small area of the market, closed-end mortgage loans.
Shiela Bair again: "For this new category of higher priced mortgage loans, these changes address many of the abuses which led to the current housing crisis and help assure that mortgage borrowers have stronger, more consistent consumer protections, regardless of the lender they are using or the state where they reside. The rule imposes an "ability to repay" standard in connection with higher-priced mortgage loans. For these loans, the rule underscores a fundamental rule of underwriting: that all lenders, banks and nonbanks, should only make loans where they have documented a reasonable ability on the part of the borrower to repay. The rule also restricts abusive prepayment penalties."
So, you see, that even after the media had started exposing the hijinx that were rampant in the mortgage market, Bernanke still refused to act, or rather, only used his regulatory powers on one narrow part of the market. At the very least, Bernanke's failure to respond makes him criminally negligent in the biggest ripoff in US history.
Sheila Bair again: "We believe that an 'ability to repay' standard should be required for all mortgages, including interest-only and negative-amortization mortgages and home equity lines of credit (HELOCs). Interest-only and negative-amortization mortgages must be underwritten to qualify the borrower to pay a fully amortizing payment. Otherwise, the consequences we have seen during this crisis will recur."
Bernanke even refused to enforce the most basic "common sense" regulation, that loan applicants be able to prove that they have the ability to repay their mortgages. No wonder Bair's testimony appears nowhere in the mainstream media; it provides concrete evidence of the Fed's culpability.
But, why? Why would Bernanke refuse to act even though he could see that markets would plummet and millions would lose their homes in foreclosure?
William Seidman, the former head of the FDIC, figured it out back in 1993 when he was cleaning up after the S&L crisis. He said:
“Instruct regulators to look for the newest fad in the industry and examine it with great care. The next mistake will be a new way to make a loan that will not be repaid.”
That's it in a nutshell. The banks didn't care if the loans were repaid because they got their money "up front" on volume originations. That's why they were so eager to issue mortgages to people with no income, no collateral, no job, and a bad credit history. It was all a gigantic skimming operation, where banks and brokers got their cut and then bailed out before the whole thing blew up. Bair's testimony shows that the Fed knew what was going on; knew that the loans were garbage, knew that people were being victimized, knew that eventually the bubble would burst and the economy would go into a long-term nosedive.
Bernanke's job was simple; just look the other way while fatcat banksters steal as much as possible.
Don't believe me? Read Bair's testimony. http://www.fdic.gov/news/news/speeches/chairman/spjan1410.html
Mike is a well respected freelance writer living in Washington state, interested in politics and economics from a libertarian perspective.
http://www.marketoracle.co.uk/Article17003.html
The Best (and Worst) Places to Store Silver
By: Dr. Jeffrey Lewis
After amassing a collection of silver coins, you quickly realize you have to find a place to store it – quickly. There are a number of ways and places to safely and discretely store your silver to protect it from corrosion, as well as theft.
Never Store Bullion in Safety Deposit Boxes
Anyone who lived through the Great Depression will tell you that a safety deposit box is one of the worst places to store bullion. Although safety deposit boxes are generally regarded as being the safest place to store valuables, it isn't always safe from the law. In 1933, then President Franklin D. Roosevelt made it illegal for US citizens to own more than $100 worth of gold.
As a result, safety deposit boxes of wealthy individuals were seized, and federal marshals were deployed into private banks to watch customers open their boxes. The contents were routinely examined, and the gold was immediately converted into paper currency. Very few gold coins survived the era, and the few that did are so rare that they fetch anywhere from $2000 to $30,000 each.
Although silver was never made illegal to own, the possibility is most certainly there, especially in times of extreme hardship.
Don't Bury Precious Metals
Avid silver collectors and “gold bugs” recommend burying silver and gold as a means to protect it from unsuspecting robbers and the government should bullion again be made illegal to possess. Unfortunately, burying silver is hardly a good idea, as it is a metal most prone to corrosion and loss of value. In fact, silver investors should handle their pure silver holdings as little as possible; even the oils from your own skin will tarnish and devalue the silver content.
Besides corrosion, many people bury silver only to forget its location or move without recovering the silver. Year after year, news headlines showcase the huge hoards of paper money and bullion left behind during the Great Depression – only to be found by new lucky homeowners.
Although you may think it’s hard to leave a cache of precious metals behind, most buried silver remains buried for years and becomes merely an afterthought when moving to a new home.
A Bolted Safe is Best
There is no better solution to safely storing your silver than the ownership of a heavy safe in your own home. Not only is it in your possession at all times (unlike a safety deposit box), it is also kept safe from the elements and is incredibly difficult to steal.
Ideally, the safe should be bolted to the ground in the least elevated part of the home, such as the basement. Storing your silver in a basement safe ensures that any potential burglar will have to either pick the safe or move the safe and then carry your treasures up a flight of stairs before exiting. Although there is no such thing as 100% security, making theft a difficult task increases the time it takes to steal your belongings – thus increasing the chance the thief will be caught red-handed.
Holding physical silver in today’s inflationary economy is a smart strategy, and finding the right place to store your investments will help protect your wealth.
Dr. Jeffrey Lewis
Learning from History: The Future Possibility of Silver Confiscation
By: Dr. Jeffrey Lewis
The history of confiscation of precious metals is well documented, with literally tons of gold and silver ripped from the hands of ordinary Americans during the financially tumultuous years of the Great Depression. However, history books and academic research rarely shine light into the confiscation of silver and rather focus on gold, even though both were made illegal for a total of 40 years.
In this article, we'll examine the history of confiscation and shed light on the possible future confiscation of silver from investors.
Once Upon 1934
Franklin D. Roosevelt penned the first law to seize precious metal assets from Americans as a way to force savings in banks, rather than allowing Americans to hold their wealth in metals. Prior to the legislation, banks were riddled with liquidity problems, as trust in the American banking system waned and investors looked for the safest place to store their wealth. With both the banking system in question and the stock market still volatile after its peak in 1929, investors wanted hard assets, namely gold and silver.
FDR hoped confiscation would push investors towards the banking system, as well as raise cash for a growing Federal budget. Unfortunately, it did just that – all the while ripping wealth right out of the hands of the American people.
The Confiscation of Silver
Silver bullion was also made illegal to own during the 40 year ban. However, this is often little discussed, as silver coins were still a large part of the money supply up until 1964. Almost all pre-1964 coinage was 90% silver, and the coins were not illegal to own during this time, as it was a mainstay of the monetary economy. Silver bars, on the other hand, were illegal, as they represented wealth outside the monetary system and were systematically “purchased” from their owners at a price well below market value.
The Future of Confiscation
Confiscation remains an important issue and is just as possible today as it was nearly 70 years ago. In a war-time act drafted during World War I known as the “Trading with the Enemy Act,” the US Treasury still has the power to seize all assets, including gold and silver, of anyone suspected of being in cahoots with a foreign government. Unfortunately, the wording is so incredibly loose that lawyers worry it could be construed to seize the assets of Americans involved in any foreign trade or investment.
The act is also empowered by the 1977 International Emergency Economic Powers Act, which extends the “Trading with the Enemy Act” to include all conflict, whether declared as a war or not.
More recently, in January 2010, the SEC approved a new regulation on money markets which would allow for the suspension of redemptions, practically freezing investor's assets for any duration the SEC sees fit.
Reflecting on Silver Ownership
It is important to remember that the greatest threats to bullion investing come during war time and serious economic turmoil. In these periods, the government has given itself the right to seize the assets of every American without due process and without any true legal opposition. Laws both old and new have increasingly opened the door for future confiscation and show how truly important it is to take ownership of bullion and store it securely.
Dr. Jeffrey Lewis
adding zeros works only as long as others are willing to accept the currency of the realm in exchange for their own goods and services. when no is willing to accept dollars whether in the form of bonds or in exchange for their own exports it won't matter how many guns you have. how many zimbabwe dollars would anyone here accept for one ounce of their own gold? the real trouble comes when no one will sell me gold in exchange for my US dollars. that is a nightmare i hope to never have to live. jmho of course
...........al
Why? could be the Greece crisis or this:
The Dumping Begins: Chinese Reserve Managers Notified That Any Non-USG Guaranteed Securities Must Be Divested
By Tyler Durden
Created 02/09/2010 - 22:00
It appears that this time China's posturing is for real. Following up on our earlier post [1]that Chinese military officials want to "punish" America by selling Treasuries, Asia Times Online is reporting that an explicit directive by the Chinese government has notified reserve managers to sell all risky US assets, including asset backed and corporates, and just hold on to explicitly guaranteed Treasuries and Agency debt. And from following TIC data we know that China's enthusiasm for MBS/Agencies over the past year has been matched solely by that of one Bill Gross.
From Asia Times [2]:
Dollar-denominated risk assets, including asset-backed securities and corporates, are no longer wanted at the State Administration of Foreign Exchange (SAFE), nor at China’s large commercial banks. The Chinese government has ordered its reserve managers to divest itself of riskier securities and hold only Treasuries and US agency debt with an implicit or explicit government guarantee. This already has been communicated to American securities dealers, according to market participants with direct knowledge of the events.
It is not clear whether China’s motive is simple risk aversion in the wake of a sharp widening of corporate and mortgage spreads during the past two weeks, or whether there also is a political dimension. With the expected termination of the Federal Reserve’s special facility to purchase mortgage-backed securities next month, some asset-backed spreads already have blown out, and the Chinese institutions may simply be trying to get out of the way of a widening. There is some speculation that China’s action has to do with the recent deterioration of US-Chinese relations over arm sales to Taiwan and other issues. That would be an unusual action for the Chinese to take–Beijing does not mix investment and strategic policy–and would be hard to substantiate in any event.
Furthermore, demonstrating just how seriously China is approaching a populist-driven adversarial stance with the US, was earlier speculation that instead of unpegging its currency (a move much desired by the US administration in its goal to further weaken the dollar and make China less competitive in the export market), China would reduce its trade balance not by the traditional way of currency inflation, but by the economic textbook footnote approach of raising salaries [3].
Higher labor costs would cut Chinese export competitiveness while boosting domestic spending power and sustaining economic growth, according to the bank. Premier Wen Jiabao’s government has been pressed by U.S. and European officials to end a 19- month yuan peg to the dollar to help diminish trade and investment imbalances that contributed to the credit crisis.
“Wage increases are a better option because they largely benefit Chinese workers,” Tao Dong, a Credit Suisse economist in Hong Kong who has covered the Chinese and Asian economies for more than 15 years, said in an interview yesterday. “Currency appreciation will only result in Chinese exporters losing out to competitors in countries such as Malaysia and Mexico.”
The strategy may limit gains in the yuan to 3 percent this year, according to Tao. This month’s 13 percent increase in minimum wage in eastern China’s Jiangsu province indicates that higher pay will play an important role in officials’ efforts to rebalance growth in the fastest-growing major economy, Tao said.
The wage decision “argues against a large one-off yuan revaluation,” Ben Simpfendorfer [4], an economist with Royal Bank of Scotland in Hong Kong, wrote in a note this week.
One thing is certain - China will now focus on doing precisely the opposite of what America would urge Chinese authorities to do, in order to establish itself as the focal point of negotiating leverage and increasingly humiliate the Obama regime. If this involves selling USTs or corporates (both fixed income and equities) so be it. This is further confirmed by carefully worded disclosure in today's copy of China Securities Journal:
The China Securities Journal, a government-backed daily, accused the U.S. in a tough-worded front page editorial of playing the "exchange rate card."
It said that, just as China didn't interfere with Federal Reserve purchases of U.S. Treasuries, "the U.S. has no right to interfere in China's exchange rate policy."
"Whether or not to appreciate is our own business," the newspaper said.
"Whether it will appreciate, when and by how much is an integral part of China's monetary policy."
It is not clear when the asset divestiture directive takes place or if it is already being enforced. Juding by the afterhours action in futures and the currency markets, some dumping may already be taking place. Alternatively, we now know just who it is that sell into every rally (yes, even in this market, every buyer is matched with a seller).