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Gold Sits Right At $1300. 

24 Hour Spot Gold Bid 9-18-13 758

The rest of this decade will be one for the history books – but so were the 70’s! 

Tonight, for the first time, I watched the video of Joe Cocker’s band Mad Dogs and Englishmen 1970 concert tour.  It transported me back to my late 20s/early 30s.  The DVD is much more than the concert footage of the tour, some of which was shot in Minneapolis at The Depot.  (Some years later, Prince recorded the movie and LP Purple Rain at The Depot.  I used to go there a lot.  It’s about a lifestyle. For people of my generation, that’s the way the world was then.  It was so different from today that my two oldest grand daughters (21 and 17) would have a hard time relating to that era at all.

The music was spontaneous and simple.  No massive productions, no computer light shows, and no magnificent customs – in short, it was real!

The band stayed in Holiday Inns and comparable lodging and they led a not so glamorous life on the road.  Well, they did have their drugs sex and rock and roll – plus the adulation of huge crowds across America.  I guess it wasn’t so bad after all.

Back in those days, the press was interested in honest REPORTING.  The “big” banks were local.  Investing was something left for the rich, and most of us weren’t rich.  It was a big deal then to own a mutual fund or if you were bold, some shares of IBM or GM.  Wealth was being able to afford a small three-bedroom rambler in the suburbs and owned an American made car (practically no one bought a foreign car then – but I was an exception.  I had a white Mercedes 250SL, but it had flower decals on the trunk.  I was stuck between two worlds).  If you were lucky, you would take your family on a week’s vacation to Miami or Tucson.  (That applies to those of us who lived up North in the winter.)

We were sick of war; Vietnam angered a generation – but look at us now.  Endless war on terrorism!  No protests!  No riots (yet).  Where are the 20-year olds today?  Probably trying to find a job.

The government stayed out of our life and no one ever talked about or thought about the Fed.  How many of you can name the head of the Fed in the 1970s?  (Arthur Burns – replaced in August 1979 by Paul Volcker).  I couldn’t have told you in those days.  No one I knew could have told you.  No one gave a darn.

I was vaguely aware of “inflation,” because the company I worked for at the time started to use “inflation” figures to calculate raises.  That’s about when the government must have decided they had to “soften” the reported inflation numbers.  And so they did.

And now things are just the opposite!

Music is a production – professionally choreographed, with computerized light shows, hand made customs and over-rehearsed performances with no spontaneity.

Today, the only banks that matter are the Too Big to fail banks.  Most people own stocks and if they have a high net worth, they also rely on money managers and financial advisors.

Being “wealthy” today means a million dollar plus home and a second home to vacation in.  There weren’t many wealthy people when I grew up, or they lived in small pockets away from the city.  Now, wealth is commonplace.  Wealth surrounds us – and money has become the most important thing in many people’s lives.  Everything is so plastic, so orchestrated.  We are told what to do in every area of our life.  We are told what to eat, what to drink, what not to eat and drink, what to wear, how fast to drive, what medications to take, who to vote for, how to think and how to invest.

The amazing thing is that most people go along with this.  What ever happened to Love, Peace, Flowers, Rock and Roll and freethinking?  Watch this DVD and you will know what I’m talking about.

People are caught up in the moment.  We are glued to the computer screen and the TV screen.  What will the Fed say on Wednesday?  What will happen to bonds and gold?  Will we invade Syria or not?  Who will the next Fed Chairperson be?  Will the government shut down in a month or two?  All of these questions to ponder or agonize over, but the truth is this is all noise and nonsense.  Others would call it BS.

The bigger picture – apart from the daily headlines, is where people should focus.  I’m not just talking about finances.  Life goes by very quickly and it is too precious to let it pass you by.  Don’t get caught up in the headlines or the daily market moves.  In fact, if you were smart, you would stop reading about the markets every day and stop following the price of your investments every day and sit back and enjoy your life.

Me, I’m kind of stuck here – I still own and run a business.  But I do not let it get in the way of living.  I write about gold and silver going up and down every day, but I don’t worry about it.  I’m cutting back on my writing.  I never stopped smelling the flowers, and you can’t smell the flowers while typing onto a computer screen.

I know how this will play out and it’s all that I really need to know.  How we get there will be interesting and very unpredictable.  I view it with an existential “interested indifference.”

It will be quite a ride, especially if you have the ability to step back, outside of your direct involvement, in a third-person sort of way, and watch history unfold.

The rest of this decade will be one for the history books – but so were the 70’s!

Check out the following articles from Zero Hedge and Jim Sinclair below:

Canadian Billionaire Predicts The End Of The Dollar As Reserve Currency; Warns “its Likely To Get Ugly”

Submitted by Tyler Durden  on 9/17/2013

Beginning with how Kissinger and Nixon enabled the USD as the world’s de facto reserve currency through oil, Canadian Billionaire Ned Goodman explains in the brief but far-reaching clip how it is both inevitable (and rapidly approaching) that the rest of the world will turn its back on the dollar. With China and Russia (among many others that we have detailed in the past) agreeing on non-USD swap terms for energy, the cracks are starting to show and as Goodman details, “in the 1930s, everyone wanted USD (backed by silver),” but today, backed by nothing, “everyone wants to get rid of them.” Buying hard assets is crucial (he has never been more bullish of gold) as we head into a period of stagflation or even high inflation; and as Goodman previously commented “the world is totally upside down right now – it’s completely crazy,” in fact, he adds, “I’m keen on anything that’s going to live with higher inflationary numbers, because I can’t see the world getting out of the problems that it’s in.”

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Jim Grant Defines Deflation

Submitted by Tyler Durden on 9/17/2013

Deflation – A derangement of money or credit, a symptom of which is falling prices. Not to be confused with a benign, i.e., downward shift in the composite supply curve, a symptom of which is also falling prices.

In a genuine deflation, banks stop lending. Prices tumble because overextended businesses and consumers confront the necessity of selling assets in order to raise cash. When prices fall because efficient producers are competing to deliver lower-priced goods and services to the marketplace, that is called “progress.” 

In 2013, central bankers the world over define deflation as a fall in prices, no matter what the cause. Nowadays, to forestall what is popularly called deflation, the world’s monetary authorities are seemingly prepared to pull out every radical policy stop. Where it all ends is one of the great questions of contemporary finance.

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In The News Today

Posted September 16th, 2013 at 10:27 AM (CST) by Jim Sinclair

My Dear Extended Family,

QE is attacked as ineffective.

It was for Main Street, but not for Wall Street.

It was for Main Street, but not for the bond markets of the Western world.

It was for Main Street, but not for the mountain of eternally growing OTC derivatives.

QE is a trap that once embarked upon cannot be stopped or even tapered. We are approaching the point of no return.

To taper QE will open the cracks that have begun to show in the bull bond market of generations.

To taper QE will turn business psychology as negative as indicators are now pointing.

To taper QE will end the bull market in equities.

The try and restart QE will be totally futile in terms of markets. The point of no return is the point of losing control of markets, from currency to equities. The point of no return could easily be any day now.

The biggest mistake of the moment is that to taper is a meaningless event.

Sincerely,
Jim

jsmineset.com, September 16, 2013