Oregon Man Sentenced to 30 Days in Jail — for Collecting Rainwater on His Property
Kid’s Hot Dog Stand Shut Down by City Officials Before It Even Opens
‘You didn’t build that’ remarks won’t change Obama’s strategy
I pulled up and browsed Drudge Report this morning and I came across these 3 linked stories. After my piece on Wed., I thought these links and the attachment would fit like a glove. In the first one, an Oregon man faces jail time and a fine for collecting rainwater and snow runoff on his own property, the second link is about an enterprising 13 year old with severely disabled parents who saved up $1,200 to buy a mobile hot dog stand only to be shut down by the city. In both cases, the Oregon man applied for permits and received them and the young lad questioned City Hall about permits and was told he did not need them. It turns out that “government” changed their minds. The 3rd link goes back to President Obama’s ridiculous statement that “you didn’t build it, you had help”. I wanted to include this because government on all levels is becoming an impediment to businesses even on the most basic level and to individuals, again on even the most basic of levels (how basic is collecting rainwater?).
It is worth mentioning that absolutely NO PRESS COVERAGE has been given to the $59 Billion Gold fraud out of China (LOCO London). Can you imagine if this were a fraud in the oil or corn markets? What if 6 months of the world’s production were “sold”, yet did not exist? Do you think there might be some outrage? Have the CEOs of any mining firms complained at all? This is just another example of “demand” being diverted. Diverting demand in my opinion is one of the cornerstones of the precious metals price suppression scheme. It is THE reason that the PM ETFs were invented in the first place. Do you think Wall Street wanted to make it “easy” for you to buy precious metals? Are you kidding? These were originally offered as a “pressure relief valve” in my opinion. These were put forth to attract some of the demand and LESSEN the amount of physical supply that needed to be doled out.
On a happier note, we are now at the beginning of the seasonal buying pressures for Gold and Silver. From August on, the Indians, Chinese and even North Americans tend to make larger (and more) purchases heading into the end of the year. Physical demand should also be helped as investors slowly figure out that these paper products are not what they thought they were. That said, Gold and Silver have “tested” their support levels multiple times, they have held and had good bounces with the aid of buyers wanting the real stuff. The old market adage, “what won’t go down, will go up” is probably at work here as Gold goes into and out of “backwardation”.
As you know, I have contended that the day will come where physical metal will become “un buyable” with fiat money. Backwardation cannot theoretically exist (in the precious metals because they ARE money in the first place) UNLESS the market itself is not trusted to perform. Backwardation is a vote by the market that “default” or failure to deliver is going to occur. At some point, backwardation in metals (because of their monetary characteristics) will become the self fulfilling market that will force the “failure to deliver”. It is just a matter of time. As a side note, Sprott Asset management has a $200-$300 Million war chest to purchase Silver with, I don’t know for sure but I do not believe this purchase has been done yet. It will be very interesting to see the timeliness of delivery or if this tranche is the one that busts the whole scam wide open.! Have a nice weekend.