• Windmills, Paper Tigers, Straw Men and Fallacious Fallacies

MK: I have to hand it to Mish for taking on this guy and picking his arguments apart piece by piece. I just look at prices. With Silver hitting a new 30 year high today – and RSI looking very, very attractive – I see $50 within reach. This is OUR MONEY people. We lent it to the banks – now we are taking it back. The bigger this movement gets, the higher Silver goes. If everyone around the world decided enough is enough and buys Silver – we get to $500 and the tables will have turned. The banks will be broke and we’ll be rich. The banks have lost our confidence. And it’s not coming back. Maybe at some point in the future, we’ll decide to start up a new banking system but for now – I suggest you get ahead of this freight train and continue to load the boat with Silver.

Silvergod says: “FOFOA’s a dick and so is Don Harrold”

US Mint is out of American Silver Eagles… again!

http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10001&storeId=10001&categoryId=13738&langId=-1&parent_category_rn=10191&top_category=10191

There is only 13 dealers that can buy these coins from the mint to my understanding.

Keep up the work Max and Stacey!

Crash JP Morgan, Buy Silver!

Ed

• Pope to Issue New Bank Norms Amid Laundering Probe

• J.P Morgan, the ultimate *ankers of 2010

• Investing in Gold Ahead of the Chinese

• How Allstate Used Sampling To Confirm BofA/Countrywide Lied About Virtually Everything When Selling Mortgages

• Credit Default Swap…Oui? Crash JP…Non?

• Suicides in India Revealing How Men Made a Mess of Microcredit

MK: Micro credit is a good idea – but until you fix the corrupt banker problem at the core of global finance anything that rests on top of it including micro finance, carbon trading, mortgage collateralization, etc. will be corrupted. Until the dirty bankers are removed from the core of the global banking system the current crisis will continue. This is interesting because in the past it eventually took the physical removal of the bankers by the people (France 1889) and it appears as though we are heading toward a similar outcome now.

• Sweden Shows Central Bankers How to Fight Next Asset Bubble

MK: Not to include asset prices is the same as non-accountability – which is how the Fed likes it.

MK: This vlogger – former military frontline combatant for the US armed services – reviews the latest “Keiser Report” and our expose on Bank of America. While watching, I thought of the classic novel “Catch-22″ that Joseph Heller wrote about the inherent insanity of war. Today, as we find ourselves – all of us – as frontline combatants in the global ‘currency war’ the message of inherent sanity resonates. This is why when we hear economic pundits on MSM ‘explain’ the crisis, we are left more confused. Think of the generals the Pentagon sends to Fox News to explain the ‘progress’ in Afghanistan. It’s insanity. But we are used to the Pentagon’s insanity. We don’t care any more. We know that America needs cheap oil (and what she has to do to get it) and we look the other way. But the currency war is a new kind of insanity. Every single dollar that you make puts you deeper into debt. Hanging over every man, woman and child in America is several hundred thousand dollars in debt and the policies implemented in Washington – to fight the debt – is to issue more debt. It’s a catch-22. No matter how many QE’s Bernanke launches, it only adds to the debt. It’s a hyper-inflationary currency collapse. It’s why Gold and Silver are surging in the last days of the year – an extremely unusual event – given that 99.9% of money managers have closed their books for the year. Anyway . . . Check out this guy’s vid. It’s real.

• BUYER BEWARE: Facebook’s $56 Billion Valuation Smells Like A Scam To This Guy

MK: I have been writing about the private market for Facebook and Zynga and other social networking sites (web 2.0) that are trading on the private market exchanges – a new thing in itself – trading Reg. D – insider stock amongst Reg. D compliant investors for a few reasons. First of all, Facebook and Zynga, the virtual currency market that markets the virtual currency that drives ‘farmville’, are new chapters in the history of fiat currency and debt-peddling. I have been warning for a few years now that virtual currencies tied to ‘games’ and virtual economies like Farmville can become just as predatory as loan sharking at ‘pay day loan’ shops – combined with the socially destabilizing effect of a casino (what I call the casino-gulag) and you produce an undesirable, volatile, economic cocktail of busted incentives and wonky assumptions.

Secondly. Reg. D exchanges that allow insiders to sell ‘insider stock’ reminds me of when online stock trading first hit the web in the ’90′s and the first stock people bought was – you guessed it – AOL. Buying stock in the online gateway that made it possible to buy stock online had an inescapable ‘twitch’ logic to it that drove millions – many of whom were first time stock buyers – to buy AOL stock; driving the valuation of that company so high it was able to swallow Time Warner whole in a stock swap (a deal many consider to be the worst deal of the last century) before crashing and burning millions with losses.

Internet enabled virtual economic narcissism was responsible for driving AOL’s stock and the whole sector to nose bleed levels on NASDAQ – that finally blew in 2000 – followed by a NASDAQ crash of 80% or so. Stocks like Akamai Tech. went from $300 to .50 cents to give just one example.

Let me be clear – I am not necessarily saying that Facebook is not worth 56 billion. Unlike the dot coms of the ’90′s it’s got cash flow – huge cash flow. And on a price-to-cash flow basis 56 bn. is not completely insane. For this reason Groupon passed on a 6 bn. offer from Google; it’s just got too much friggin cash flow, and cash flow growth, not to think 6 bn. might be too cheap.

But I am saying that business assumptions (and valuations) can change rapidly. The business assumption that drove Internet valuations in the ’90′s was web traffic that was growing at 40% a year. But then Bush won the Presidency and old line Hollywood interests (along with oil, and tobacco) reasserted themselves. All the talk about a ‘new paradigm’ died quick.

What could happen now that might pull the rug out from under these billion dollar babies?

For one thing – the new net neutrality killing bill just passed in Washington – will pretty much kill the growth of the web for real. The primary reason the web is a commercial powerhouse is that it’s growth is powered by both producers and consumers who both believe they have a vested interest in seeing the web get faster, more dynamic, and cheaper. But with this new anti net neutrality bill now upon us. Only producers have a vested interest in the growth of the web, consumers will become as ambivalent about the web as they are about cable TV or used car sales on Washington’s birthday.

The web is set to lose its mojo and the next generation will move on to something else – which means that without the captive audience of billions who think they are part of a dynamic growing eco-system – much of the ad dollars will go away too. And without the explosive ad dollars – you are back to 1999 – multi billion dollar enterprises with no business models.

• Dollar Weakens Against Commodity Currencies Amid Slow Growth