zen

Zen, good to see u r a "Royalist". I thought Chauncy WAS Greenspeak haha .........

"There will be growth in the Spring" ....

Thats about as complex a concept the yanks can comprehend.

Its a pity really that the likes of JP Morgan et al can be ALLOWED to do what they do with their derivatives books. They alone can plunge the yanks into "accidental" financial oblivion with the excesses of just one month's new of positions.

Every nite I watch the DJIA opening I see visions of those classic films "Escape from New York" and "Escape from LA". Maybe thats why neutron bombs were developed.

In the end our so-called financial "system" is now a complete farce and begging for total revamp. We really need a GLOBAL STANDARD again to prevent repeat of what the banking system has brought upon us since its inception in Venice in the 1600s and espesh in the last coupla years of paranoiia, or else IFFFF we are to continue having global trade, it will be done on some kinda barter system.

I for one would push for GOLD STANDARD with some kinda "credits" system where we the plebs can transact in nanograms of gold. But that kinda thought would probably go well beyond the simple greedy minds of the global bankers atm.

And since we have a global tug-of-war of extremely opposing forces about to determine our future wellbeing with some kinda result possible in any instant, then IMO we just have to allow for ALL possibilities and the fact we are ALL gonna lose cf to absolute prestent IFF control is lost. But remember wealth is relative and if u only lose 30% cf to yr neighbours 90%, u are effectively 7 times better off than him.

So whilst we have the clash of the titans raging around us even if we are oblivious to that reality, how do we best protect and ensure we can stay in the game irrespective of outcome ?

We currently have two exponentially growing titans raging in this final conflict (wrt to global financial system) ...... the black hole and the printing press. As the black hole of looming debt default induced asset deflation and exponentially growing derivatives implosion likelihood grows, so does the rate of hyperinflationary monopoloy money supply to feed the balck hole's insatiable hunger.

IFFF the circus masters can control this balance, we will have increasing STAGFLATION in the western world. Economic crawl coupled with spiralling cost of living ........ thats where the US is now and increasingly so and where we and Euroland etc are likely to follow. CONTROL is key word ....... and we see it in the PPT's actions on a daily basis now.

My personal portfolio is structured somewhat on this expectation cos I believe in Santa and HOPE that Superman always comes outa nowhere to save the day ...... I must be losing it hey (?????)

IFFF the BLACK HOLE wins the day per some instantaneous derivatives meltdown, we will wake up one morn to a defunct banking system and will wonder where the nearest soup kitchen is located. In such DEPRESSIONARY event, CASH is king IFF u can access it. Gold bullion itself is cash dont forget and really, the only real money so far as the half the world is concerned ..... but in this event, the holding of bullion would probably be illegal as the government confiscates it to pay its own debts ...... has happened before in the US.

IFFF however uncle Ben and his bankers win the day by flooding the black hole with enough monopoly paper, then we have HYPERINFLATION, where cost of all hard assets sky-rockets in FIAT paper terms. Thats GOLD at 3000 bucks an ounce for starters. Unhedged ounces in ground are our best bet here.

At the moment in the US we have asset deflation ....... property market accelerating downward and equity markets showing signs of cracking etc whilst same time M3 runs at 15+ % (we really dont know how much anymore cos they dont have to tell us anymore) and USDX heads to new depths ........ monetary inflation ........ hence SEVERE stagflation. Thats where it starts and already spreading thru the western world.

So who wins out in the end? The forces of Nature and its cycles OR the US FED and its attempted controls ???

Normally I might muse that Superman can hold the floodgates closed BUT when I look at JP Morgans derivatives book expansion for JUST THIS QUARTER and see the FED's desperation in dropping interest rates at a time when its USD is falling, I gotta wonder just how much control these clowns actually have and what day coming will I wake up to a "new" world.

My portfolio in attempt to provide some kinda balance for my personal needs is structured to try and allow for all contingencies, with the full expectation I too will suffer with the rest but at least not find myself out on the street like many, hence :

Roof over my head only and NIL DEBT ......... cos debt means u have no control over what u think is yr asset.

One Third Cash at Call ....... just IN CASE the black hole wins in some kinda controlled sense and CASH indeed is King as the DJIA loses 90% of its value ........ 1929 - 1939 repeat. Dont know if applicable anymore tho, cos they didnt have the word "derivatives" in their lexicons then. This is the most clear cut option ...... u know where u stand, u take it on the chin a few years, rich get richer at plebs' expense then they con us out of it with an economic stimulatory WAR.

Two Thirds emerging Resources Olympians ..... cos I believe in the ongoing devaluation of FIAT paper against REAL resources that at least HALF the world will continue to need to come outa their past lowliness. China and India and rest of Asia are doing their own thing and they will need resources and energy to continue their global emergence relative to the West's accelerating demise ........ well we kept asking for globalisation ....... here it is ....... they go up, we go down to meet some half way. Gotta be careful in what u ask for sometimes.

Normally I would be 50/50 cash/resources right now but am banking on the China / India internals factor dominating and hence I retain a lower than usual cash component. But IN ANY CASE my equities holdings include CLEAR TITLE OVER REAL MONEY ANYWAY .... UNHEDGED IG OUNCES which everyone will be screaming for being a large part of my portfolio. I mean what bank do i trust anyway if we get a meltdown?

IMO, demand for URANIUM and BASE METALS will continue to increase as supply diminishes, whilst demand for GOLD and PRECIOUS METALS will continue to be sought as REAL money alternatives to burning paper ........ I kept looking for that 79.7 break in USDX which lot of u ridiculed me over and look what happened when it did break ...... plunge into the abyss with no end in sight!

GOLD & PRECIOUS METALS, URANIUM and LEAD are my priorities looking forward for various rerasons stated ...... the latter being cos it is the simplest most effective way to power-up pushbikes and hybrid cars and there just aint ENOUGH of it left in the world ...... volume of NUMBERS in China and India seeking "advancement".

Zen, u remember my GORM in answer to yr Q some time ago ........ actually glad u asked it then cos it allowed me to put into print from my jumbled mind and have actually used that as my guide ever since .........but there was one basic flaw , though game still on and jury still out so cant completely discount. I thought NORMAL economic theory would follow and we would have our asset deflation first then followed by monetary inflation to recover etc etc.

Well nothing "normal" you will find in any textbook written to date about whats going on now. The IDIOTS are STILL hampering Nature (started in 1993) and digging a bigger hole for themselves and us by trying to prevent the inevitable ......... pre-emptive monetary inflation to try and avoid the asset deflation stage ......... tho it now goes well beyond that !!!

So yeah jury still out on the GORM schedule IMO BUT if the ring-masters lose control, watch it over-whelm in an instant.

And THATs why I LOVE the Ice Queen ........ cos irrespective of what from here, we have clear title to unhedged real value in the ground that for reasons applicable to any scenario u can imagine, the major goldcos with hedged positions will be scrambling for as POG heads toward thousands of dollars an ounce in the 3- 5 years ahead IMO.

And I only talk about GOLD cos trying to keep it simple. Whats 6 mill ozs @ 1.7 g/t from surface gonna be worth to us at POG 1000, 2000, 3000 / oz in foreseeable(?) future ......... considering now it is only "valued" by the market at 10 bucks an oz ?

Glory days ahead bros ...... and thats only the toy facory's golden CORE I am looking at, tho gotta say im kinda feeling warmer by the day about Munni Munni's liley viability ahead. Watching Rhodium latey?

Anyway i aint attending the AGM so hopefully some of u guys can to focus on the body language and report back.

Meanwhile it is my birthday today so off to the TABARET for a punt and a pint. Aint the PPT a scream tho haha. Its OK for the DJIA to drift down toward 12800 or even 11600 for a "healthy" (haha) "correction" (hoho). We wouldnt want to see it sub 11600 soon now would we !

Have to further consider which is safer next ...... cash in "which bank" or Santa's gold IG. AND gotta start learning Mandarin and not just the bar-kind.

IMBOOC