Thursday, May 26, 2011

thermodynamics, or the laws of everything.

I'm merely paraphrasing. These things are worth saying,
again and again and again, until we all get too cold.

from wikipedia:

* The first law of thermodynamics expresses the existence of a quantity called the internal energy of a system, and shows how it is related to the distinction between energy transfer as work and energy transfer as heat. The internal energy obeys the principle of conservation of energy but work and heat are not defined as separately conserved quantities.
* The second law of thermodynamics expresses the existence of a quantity called the entropy of a system and states that the entropy of an isolated macroscopic system never decreases.
* The third law of thermodynamics concerns the entropy of a perfect crystal at absolute zero temperature, and implies that it is impossible to cool a system to exactly absolute zero.

To restate more simply:
from Ugo Bardi and others:

1. You can't win
2. You can't get even
3. You can't quit the game

And, like the speed of light,
its not just a good idea, its the law.

Thursday, May 19, 2011


(The title of this post is written in "Fidel" script, an alphabet in use
throughout the horn of Africa, in the language of Amharic. the word is
pronounced "kel'-al" and translates to "easy".)

I just have one question for you all.
When did "easy" start having anything to do with "good"?

Just think back, to that one incident in your life, when you were ecstatic, jump-for-joy, hug-a-stranger happy.

Now think, for a minute, about what had happened to make you that way. What had you just done?

Did you like feeling that way? Did you enjoy it? Did the people around you enjoy it? Do you hope to feel that way again sometime?

Now, just ask yourself, whatever you did to feel that way. Was it easy?

Wednesday, May 11, 2011

Price Controls

The US Government,
in cahoots with the COMEX and sundry other parties,
is attempting to manipulate the price of crude oil (downward!)
by manipulating the futures markets.
Its a more obfuscatgory tactic than Nixon's simple price controls
and its difficult to explain to the ovine --
they won't know who did it.

But the results will still be the same.
Within months from now,
The USA is going to start experiencing spot shortages
of gasoline and other crude oil by-products.

Hang on, folks.
Your life is about to get seriously ugly.

Monday, May 9, 2011

Nelson Bunker Hunt

(just in case you have been asleep in a cave)

The recent run-up in the amount of fiat currency that people are trading for hard silver has been quite spectacular recently, from $17 to $49 in one year’s time. For at least the past several weeks this has been garnering widespread publicity. As can be expected, comparisons and contrasts are being drawn with an incident within my memory and that of numerous other market participants, namely the attempted cornering of the whole silver market by Nelson Bunker Hunt and associates during the decade of the 1970’s.

An article that appeared in 1980 in Playboy which detailed the machinations is making the rounds and being extensively quoted and paraphrased.

I am finding that there is a rather extensive omission in the information of that article. Yes, it says that for a brief time Bunker was the wealthiest that any single man has ever been, with a NAV north of $4B at a time when the advertising campaign at McDonalds was “a big mac, fries, a coke, and change back from your dollar!”

Okay, yes, the roof fell in on him. Yes, the tightening of margin requirements at the Comex had a lot to do with the crash. Yes, after the crash he was, if not left penniless, at least reduced back to human proportions. Okay, so where did the $4B go? Did it just vanish, as all the articles seem to imply? Did it (Ha Ha!) go back to "the people"?

I can’t offer cold, hard facts here, I seem to recollect a few admissions at the time which have since disappeared from print. Volker was of course involved; he backed up the project with the unlimited credit of the Federal Reserve. There were key players. Partners at the Comex. Large bankers who could not stand for inflation to get out of hand, let alone for it to be generally understood by the public for what it really is, grand theft by the bankers and politicians from everybody with a positive net worth. Partners such as JPMorgan. As I recall, the Comex changed its rules, somewhat illegally, to establish not only margin limits but position limits on longs (but those same limits have never been enforced upon shorts!). And NY megabanks, operating together behind the scenes, took out huge short positions.

So where did the $4B go, now? Well, of course, it all went to the banks holding the shorts.

And some of them remember. Greedily? Well you know about bankers by now, right?

Now I know you all are now realizing something. There is no NBH this time playing on the long side against the establishment. The situation is different this time. Its all of us, isn’t it ….
And all the talk, all the bombast, all the paper, all the contracts, all the fake news articles opining about bubbles, all the bamboozle in the world, cannot create one more dime of real silver.