GREEK 1 YEAR BOND @ 128.94%
LOLOLlOLOLOLHHHHHHAAAHAHAAAAAAAAAAA....
Can you imagine that? If you had a million clams and the Greek 1 year bond would survive a year, you could make $1.29 million dollars on a million dollar investment. I am completely amazed by all the crap going on today. All the economic indicators came out negative and the DOW PUSHES higher.
I am still working on the PEAK SILVER ARTICLE, but had to come in here and give you all my TWO CENTS. Also for those who do not know what the EROI is….it is the ENERGY RETURNED ON INVESTED. U.S. Oil and gas in 1930 was 100/1, in 1970 it fell to 30/1 and in 2000 it had fallen to 11/1. Today I would assume it is below 10. This means for every unit of energy invested in oil or gas it now provides less than 10 units of energy. This will be explained more in my article and why it is so important of a factor.
HOW ON EARTH IS GOLD AND SILVER DOWN
....when the whole European market is getting ready to implode. Hell, even the US Dollar is down today. Uncle Ben has got his finger in every market today I am surprised CNBC just doesn't take a vacation for the next week stating reasons of "INABILITY TO MAKE ANY STUPID FORECAST DUE TO THE FED'S HAND IN THE MARKET".
TOP STORIES:
Resource Nationalism tops mining/metals risks for 2011-12—E&Y
RENO, NV -
Ernst & Young's latest mining and metals report cites resource nationalism as miners' top risk for 2011 while skills shortage, capital allocation and infrastructure access continue to dominate the business agenda.
In the past 12-18 months, 25 nations have increased or announced their intention to mining taxes or royalties, as some have invoked "use it or lost it" clauses.
Governments worldwide are looking to increase local participation in mining projects "and we think this trend will only increase," said the E&Y report, "Business risks facing mining and metals 2011-2012.
.....Infrastructure access climbed from its sixth ranking in 2010 mining business risk to third among the 2011-2012 risks. "The lack of available infrastructure means that production cannot get to the markets where the demand is," said the report.
"A lack of sufficient rail networks appear to be the largest global bottleneck," said E&Y. "However, if the sector is meet the expected supply challenges for the expected growth in demand from the rapidly developing economies, greater innovation is required to bring together producers, customers, infrastructure, operators, financiers and governments."
Did Wages Top Out with Domestic Oil?
Was it coincidence that wages topped out with domestic oil production? Perhaps not.
Yesterday we considered the possibility that it was not coincidence that the U.S. abandoned the gold standard at almost the precise point that domestic oil production topped out, launching a need for vast quantities of imported and increasingly costly oil.
Today we further that idea by suggesting that labor's share of the national income--a more important metric of household fiscal health than the widely trumpeted GDP--also topped out in that same time frame for the same reason: the economic wealth was all based on abundant cheap domestic oil. Once that foundation eroded, then a multitude of tricks were needed to create the illusion of advancing household wealth.
http://www.financialsense.com/contributors/charles-hugh-smith/2011/09/14/did-wages-top-out-with-domestic-oil
You can continue reading the article from the link provided above. This goes further to prove that all the derivatives, money printing and TOM FOOLERY was to keep the illusion of a productive economy going for several decades longer than it was physically possible.
Here is a tidbit that ONLY YOU ALL AT SILVERGOLDSILVER will know before my article comes out:
AS OF TODAY SAUDI BREAK EVEN OIL PRICE IS $84 a BARREL
Anyone who tells me that SHALE OIL is our savior...I will look you in the EYE and tell you that if the SAUDIS (cheapest oil on the planet) break even is at $84 a barrel, there is no way shale oil will save us. Let me make this perfectly clear, SHALE OIL will COST A GREAT DEAL MORE. Is anyone familiar with the name Porter Stansberry? He is the person who put together the video “END OF AMERICA 2011” which was advertised on many main stream media networks like CNBC. Hell, Alex Jones did the narration.
Porter Stansberry and his crew of analysts are now pushing SHALE GAS and OIL as the next savior. Porter thinks oil is overpriced due to money printing. He has no science background or grounding in geology. The Falling EROI is creating havoc in the world economies especially the western ones. In future articles, I plan on tearing apart Porter Stansberry’s lousy investment advice on Shale Gas and Oil. The decline rates in both of these fields are off the charts. Remember, the US Suburban Leech & Spend Warehouse-Strip Mall Economy was designed on $20-$30 a barrel oil.
ITS GAME OVER BABY....
You got your SILVER?
Donald Trump Now Takes Gold as a Security Deposit
ReplyDeleteDonald Trump, chairman and president of The Trump Organization, explains why he will accept gold as a security deposit in lieu of U.S. dollars.
VIDEO: http://www.thestreet.com/video/11250464/trump-now-takes-gold-as-a-security-deposit.html
I guess highrise may never get evicted! The banks are way to busy!
ReplyDeletehttp://finance.yahoo.com/news/Mortgage-default-warnings-apf-157937671.html?x=0
Great info man. Keep it up.
ReplyDeleteHey you know what ? I think they're actually gonna save the Euro... don't be surprised if the new euro monetary system bails everybody out.
ReplyDeleteI am gonna buy so much damn silver when it hits 30$ I am saving cash from my business by the bucketful for that day.
ReplyDelete@SRSrocco,
ReplyDeleteExcellent! Waiting for the peak silver article.
@zepster,
I doubt it!
@Commodity
ReplyDeleteI don't think that day will come.
there is no liquidity in the market, quant funds are being shut, prop desks are freezing trades, pm charts have perfect bearish technicals and a dollar rally is probably underway.
ReplyDeletethe ubs trader was the icing on the cake for big banks restricting their gold and silver traders
ReplyDelete@Commodityworldnews,
ReplyDeleteYes, you mentioned that a week or so ago. I got that they were short not long.
the big banks can be short or long they are almost equally and fluidly both, (their trading costs are $0 because they are market makers) they just can't take the positions anymore, its also looking like the big ubs trader was a currency trader actually, based on anecdotal evidence circulating the internet. Possibly he traded gold too
ReplyDeleteGreat stuff SRS Rocco! Look forward to your contributions on the new site also. ;)
ReplyDeletePeak oil my ass. This was disproved a long time ago. 84$ break even for the Saudis, no no no. Exxon replaces it's reserves at 10$ a barrel as of 2 years ago. Stop taking the blue pill and listen to the James Norman interview. He's the guy that broke the Enron scam and Iraq oil for food story plus he was the lead editor of Platts.
ReplyDeletehttp://www.youtube.com/watch?v=pcvyU2k0L0o
http://www.platts.com/Home
"Banks rush to lend gold to get dollar funding"
ReplyDeleteHmmm...
http://www.ft.com/intl/cms/s/0/9c5ec914-deed-11e0-9af3-00144feabdc0.html
SRS, I learned it as Energy Returned On Energy Invested. Not that it changes anything. More, please!
ReplyDeleteJasper, I don't know much about Saudi crude oil pumping costs, but I do know that there are certain oil wells where it is very cheap to pump the crude out and refine it. We have burned and are burning that stuff NOW. It is running out. NEW oil wells are going to be drilled where the oil is six freakin' miles under the ocean plus another mile or two of mud/rock. To get that oil will take a LOT of suckage (and spillage-remember Macondo). Crude + condensate peaked in 2006, as this new oil CANNOT come on line fast enough to stop the decline in production from old wells.
Executive summary: The new oil is expen$ive and scarce. The legacy oil is cheap but running out, plus wars are starting for access to them.
"Running out of oil" type Peak Oil is a scam and a lie.
ReplyDeleteI am of the opinion that peak oil is only valid in that the extraction/refinement/price is controlled in relation to demand or lack thereof. The actual market for oil, options, futures, etc. just skew the basic fundamentals of price itself, sometimes horribly.
The Russians proved abiotic oil is reality, the concept of deep drilling technology was invented there over half a century ago and is one of the reasons Russia is the world's largest producer.
I assume most still don't think "fossil fuels" come from reservoirs of rotted dinosaurs and palm trees at this point?
I assume most here are aware of why Macondo was venting at thousands of psi over ambient water pressure (~2200 psi)?
Drill into a major migration channel in the Earth's mantle and there you go...
There are limitless oceans of oil down there but you'll be hard pressed to find your average petroleum geologist who will agree or admit it. The CIA sure knows. Sure the rate of extraction will likely decrease capacity of a given reservoir over time for a few reasons other than lack of oil but the moral of the story is there is no shortage of oil. There is political leverage, price control, the ever-present propaganda and control of the truth.
Solid write up SRS! Greetings from the slums of Oakville, ON!
ReplyDeleteI'm just saying there's another whole story to this. Russia and Saudi's have an allocation agreement (fixed production rates) The west Exxon (aka standard oil) and BP and the rest have the Achnacarry agreement since 1928 fixing market share. They say they no longer do but market share is almost the exact same! Chance my fat ass. The Macondo well and it's sister next to it where to be drilled and capped for future use not bring on line. Iraq and Lybia basically 90% off line and Iraq was the worlds fourth biggest producer and Libya was in the top 10 yet supplies are robust. Blyth is more powerful than Darth Vader when it comes to national security pushing the levers anyway they want them to go hurt or help who they choose.
ReplyDeleteI hope Nibiru kills everyone.
ReplyDeleteAnybody ever bought from Northwest Territories mint before? They seem like to be lower over spot than APMEX. Wonder if delivery is pretty quick?
ReplyDeleteThanks for the comments on my post. I am away from my computer for a few hours, so I will respond in the morning.
ReplyDeleteThorfinnr
ReplyDeleteI ordered from Northwest Once ! it took Almost Four Months to get my order.. Most of the time Provident Metals has better prices as well as Gainesville.. I Have good luck at Provident as far as speed..
But for the most part anymore I use my local coin shop, where I walk out with it, and they always beat their Prices.. I went there over my lunch time and picked up ten Eagles, two Silver maples and a Kookaburra for forty one dollars each.. Dumbasses go in there every day and trade for fiat.. Check out your locals.. Speedy Delivery! lol
http://www.providentmetals.com/bullion/gold.html
http://www.gainesvillecoins.com/
Thorfinnr
ReplyDeleteBullion Direct is also interesting.. They have a Catalog side where you pay their price,but they also have an Auction Side called Nucleo Exchange..You can buy Physcal Silver and Gold and leave it there to put it up for auction in the future, or you can take delivery of it.. And there Delivery has always worked for me as well..
http://www.bulliondirect.com/catalog/home.do
Thanks for the advice bflowers1-
ReplyDeleteAlso, enjoyed your article SRSrocco. Seems like the early 70s was right about the time feminism was PUSHED on women, and they were encouraged that it was in their best interests to work as birthrates plummeted. But I guess there was no Bilderberg planning behind that.
SRSrocco
ReplyDeleteWhat ever happened to the Bakken oil reserves, that haven't been developed.. Isn't it supposed to be one of the largest finds ever.. And all that un tapped oil in Alaska.. Sometimes I don't know what to think..lol
an old article
http://thecypresstimes.com/article/News/Opinion_Editorial/USA_SITTING_ON_2_TRILLION_BARRELS_OF_OIL_AS_CAP_AND_TRADE_THREATENS_TO_CRIPPLE_ECONOMY_AND_ESCALATE_ENERGY_COSTS/23266
The Bakken fields are being developed/exploited. Crescent Point Energy ring a bell for one. North Dakota being one of the soundest states in the union financially? Check-out the Green river deposits of Wyoming, Utah and Colorado that are just sitting there undeveloped. An estimated 1.5 trillion barrels or something? Shale oil is messy business though with fracking, etc. coming under scrutiny. The U.S. alone has hundreds of years of oil within it's borders.
ReplyDeleteIt's kind of amazing how many people still don't get peak oil theory. They refuse to believe oil is a finite resource which is non-renewable except on geologic time scales. When asked how King Hubbert could have so accurately predicted the bell shaped production curve for the lower 48, they'll answer with some pre-digested diatribe about environmentalists blocking access to reserves. Right. That's why BP had to drill through miles of water and rock to hit pay on Macondo, because some tree hugger in Texas stopped them from setting up a rig in Spindletop. That's why crude is now 1000% higher than ten years ago. Environmentalists. No, it's the greedy majors conspiring to keep prices high. Never mind they only control 4% of reserves. Oil has been effectively nationalized, why do you think our Hessian troops are stationed all over the globe? Freedom? Democracy? Israel? Well, maybe.
ReplyDelete"What ever happened to the Bakken oil reserves..."
ReplyDeleteThe important thing to remember about EROI is that the most important aspect is the world nett EROI, rather than that of the individual fields.
World EROI is decreasing. IN case EORI still seems vague, think of it as efficiently.
Whether the world has this or that new field or some untapped exiting reserve is -completely immaterial- to EROI. It's all about the cost to extract the oil. EROI focuses on the 'cost' not as a dollar value, but the 'effort' needed to get the energy(oil) out in to a useable medium.
Thats why SRS is completely correct.
My guess is that Central Banks are dumping gold on the open market.
ReplyDeleteAfter all, it's not THEIR gold they're throwing away.
I have been thinking for a while about starting a blog as well to discuss these kinds of thing. My friends and family are worn down now :)
ReplyDeleteMy angle is debt expansion is indirectly linked to energy availability. They operate independently, but symbiotically. In a nutshell:
"As the monetary supply expands, we produce more 'stuff'.". As most money is debt, the yield that must be paid on that debt dictates the physical expansion of good\services necessary to cap inflation. As we need energy to produce the 'stuff', a disruption between nett energy consumption and nett currency unit creation is formed when they grow at differing rates for a sustained period of time.
Since Nett energy consumption(and hence production) peaked in 2006 we have been relatively flat since. The Currencies units continue to be created however as the yield on debt must be paid so that debt destruction will not occur.
To me, a peaking in the energy available for consumption together with the the desire to not destroy currency to match the consumption of 'stuff' is sure fire path to inflation.
What would you do if energy was not available for 'stuff' production at a time when debt was going to be destroyed? Force the creation of more debt irrespective, and use that to pay the yield. In order words, to me, debt has formed a bubble and is like a runaway feedback loop at this point.
Hyperinflation here we come.
Remember, key to the EROI topic is a peaking of nett consumable energy as the easy to exploit energy sources dry up. Once EROI starts dropping, you can literally add more fields and drop more wells, but the dropping efficiency erodes those gains.
See, many 'peak oilers' don't make a very compelling argument. They blame, OPEC for increasing reserve size, blame the US gov or big oil for capping wells, they blame Canada for not wanting to turn their contry in to an open tar pit or the US and Australia for not not fracking the hell out of thier ground water supplies in food producing area's. The most important point, is that the only reason we have so much 'stuff' (and think we need more) is because debt expansion demands continual growth. Growth that can no longer be accommodated.
Hope this wasn't too boring....
We all know there is a boatload of oil left on earth, it's just mofo expensive to get out. Deep salt oil off Brazil, heavy oil in Venezuela or right in my backyard - the oilsands of Alberta. Fort McMurray is a disgusting place, but oil oozes from the ground here on a hot summer day just like the on the Beverly Hillbilly's teevee show - I've seen it.
ReplyDeleteLots of Oil left, just gunna get real expensive to mine, real quick - that means phyzz goes higher too, right quick.
Just sat through a mofo boring private fundraiser for, likely, the next premier of Alberta. During his stupid little speech, his 'economic growth' plan is to build a monster pipeline to Kitimat. Liquify Nat Gas and sell it to the Chinks at a 2-3 X markup. That's where we are headed folks, our overpaid Politicians selling our soul to the Chinks (no offense to any Chink readers) to prop up the economy until the next election. This Phucker claims to have Harper in his back pocket too so screw the native lands b/n here and the BC coast.
peace out.
King of the Coin Toss
I spent years reading theoildrum, and matt's site. I haven't been over there in awhile, but I do remember quite a bit of discussion regarding EROEI. That is really the big problem with so many of the so called alternative energy sources. I am afraid there will be no GDP growth without growth in energy production. The future post peak oil is a perpetual recession / depression. If you think back to what spawned the whole credit collapse to begin with, it was high oil prices that finally triggered it. Down the road, there will be moments when we feel like we have minimal nominal GDP growth, but oil prices will then climb enough to choke it off, and down we go again. I am not sure how long that cycle will last before we succumb to war, famine or both. No you see why I quit reading those sites. Disturbing to say the least.
ReplyDeleteI have a small automotive shop.. And I'm working with a near death machine shop to change over some and start building, Wood Gasifiers.. It's not new, but rather old technology .. But these units will, heat a home, heat water, and run a Generator.. All off Wood, and all at the same time ! I live in the Midwest, and we have to clear hedge rows every year of over growth.. These units will unlock the Hydrogen from the wood, and create energy, in multiple ways.. FEMA, even has plans on the internet that you can build one..lol Of course Technology has moved up since then..
ReplyDelete@DM I think you nailed the oil industry. You control the supply and sit on it, you control the price. There is plenty of oil locked up in various nature preserves/occupied territories and many untapped mega fields....read Lindsey Williams book the engery non crisis. The other thing I don't think that has been mentioned, is the US policy has always been to exploit/use foreign reserves first before digging into our own...that is just plain smart. Give everyone the useless fiat for oil and drain them dry, then collapse the currency and 'discover' your mega fields within US and start bringing those online. Double cross the Arabs and everyone else in the end...he called it the Kissinger Plan. Hard to argue that is not where we are headed...no? http://www.youtube.com/watch?v=fmE_6U4JQNI
ReplyDelete@Whiskey Six: I heard Lindsey say that theory. My word, if that happens, that will be a sh!tstorm of all sh!tstorms. Of course, the eco Marxist will try like hell to avoid bringing anything on line. Libs. are a cancer on this society and this world.
ReplyDeleteREPLIES, CLARIFICATIONS & COMMENTS
ReplyDeleteThe information below is not to convince or change anyone's opinion. Rather it is there to provide additional information to either clarify or reinforce my position.
sciencewishdom.....It is true that in the beginning the abbrev was EROEI. Over the past several years the top minds such as Hall, Gagnon, and Murphy from New York State University, Cutler Cleveland in Boston University, Ugo Bardi in Italy and most of the engineers and geologists at the OILDRUM.com have dropped the "E" and simplified it as EROI. Charles Hall is by far the foremost authority on the subject and his website is titled "EROI". Either way works.
JASPER & DM....there is some credibilty to the abiotic oil theory. That being said, let me give you my example. Say we have a 50 foot round pool 2/3's full of water. On one end we have 6 African Elephants sucking water out of 2 inch wide straws. On the other end of the pool we have a 1/4" tube placing a drop of water every hour. In a nutshell that is the abiotic theory.
Not every oil field has an abiotic source. So you can see in reality it doesn't matter if an oil field is being slowing replenished by this abiotic process. The Elephants win in the end.
It is also true that the Russians experimented with ULTRA-DEEP oil wells in the mid to late 1960's. After some degree of initial success, they had two huge blowouts similar to what happened at the Macondo field in the Gulf. The Russian scientists had to resort to detonating mini nukes down at the base of the well, to seal in the geology of the field. If you remember, this was one of the methods discussed as an option during the capping of the Macondo well.
The Russians BLOWOUTS were on LAND...not in the deep ocean. Only BP would attempt something INSANE like that. It goes along with their name. Its not BEYOND PETROLEUM....its BEYOND PRINCIPLES. BP has a long history of leaving a mess behind. Macondo was their FINEST HOUR.
ULTRA DEEP WELLS COME WITH INHERENT DANGER
In drilling so far down in the earths crust the amount of extreme pressures exceeds any equipment the oil industry has developed so far. That is why Brazil is taking it slow with their Deep Salt Oil Fields.
Furthermore, there is a risk of penetrating the entire crust and hitting the mantle below. This would turn out to be an unstoppable VOLCANO....something that almost took place in the Gulf last year.
BP was banking on proving up huge reserves of light sweet crude with the Macondo Field. Instead they tapped into some of the worst type of oil....HEAVY SOURY ASPHALT OIL that is orange and full of toxins and impurities.
There is so much more I can write on this subject....I don't have the time or the motivation.
I will touch on one last topic and that is SHALE OIL. Sure it is true that there are trillions of barrels of oil in the United States. It is also true that there are 20 million tons of gold in the world oceans. Both are uneconomical and enviromentally stupid to attempt.
I will explain more in future articles why SHALE OIL is a DEAD END as it will not supply cheap enough oil to sustain our SUBURBAN LEECH AND SPEND ECONOMY. The EROI of SHALE OIL is about 3/1. Sounds great huh? Well, unfortunately we need at least 8/1 EROI to have a minimum sustainable modern society.
We have to remember it takes energy to REFINE & TRANSPORT the OIL, and it takes a great deal of the energy to MAINTAIN the Interstate and Hwy system of the USA. This all comes out of that 8/1 EROI.
PEAK OIL is here...but that is only part of the problem. The falling EROI is another, and the third is the ICING on the CAKE. That will be discussed at a later date.
Happy Trading.
There is no peak oil. Oil is abiotic. Energy produced by the Sun effects the core of our planet. The Planet Earth is getting heavier.
ReplyDeleteThe centre of the Earth is receiving energy and material and is continually producing minerals/oil etc. which gradually force their way to the surface. Yes Silver and Gold as well: eventually.
Oil is like Diamonds. Both prices are kept artificially high.
Peak oil is a scam.
Thanks for your comments SRS Rocco. I agree with much of what you say but allow me to qualify the fact that abiotic oil is 100% credible despite the fact, as you point-out, that all oil "fields" do not necessarily have direct and open abiotic "sources" so to speak (tar sands and shale oil fields). How accurate your elephant and straw analogy is will always remain unknown to us commoners unfortunately. Don't mean to argue but enjoy these discussions and look forward very much to more of your contributions. Best regards
ReplyDeleteIF ONE IS WRONG ABOUT PEAK OIL...THEY WILL NOT HAVE THE LUXURY FOR LONG
ReplyDeleteBack in the day....the peasents of the world thought the earth was flat. They continued to believe so for centuries until science was taught widespread to prove otherwise. Even though they held this incorrect belief, life went on. It did not really hurt their livelyhood. Of course Columbus put a nail in the coffin when he discovered the NEW WORLD without falling off the end of the earth.
Today, those who believe there is no PEAK OIL...may be doing so in their own peril. Why? If they have made the wrong decision about it, they will not have the luxury to live a long life with this misbelief. The world we change drastically and they will not be able to prepare or alter their life as life will be altered for them.
This is the IRONY....
I think the whole carbon model is obsolete at this point given the technologies that have been hidden from us. There are a number of control mechanisms...one of them of course is energy. You give people free energy, you lose control. Simple as that. I wonder how many patents are sitting on the shelves of the oil industry never to see the light of day. For example, lets say I make a fuel efficient engine that gets 100 miles a gallon or more...1 oil company such as Chevron could offer me a billion dollars for it...hell they make 6 billion a quarter, they buy the patent and it never sees the light of day in order to keep their profits intact. Energy is all political at this point rather than limitations in technology.
ReplyDeleteWhiskey Six,
ReplyDeleteExactly, it's all control, power and money.
The True "evolution" of mankind has long been pirated, controlled with "science" itself, by the military industrial complex that uses this leverage over the sheeple at large while furthering it's own agendas. Some of which would blow the average person's mind...
Whiskey Six & DM....I would like to remind you all that the Roman Empire sat on huge Reserves of Oil...and their Empire still collapsed.
ReplyDeleteHere's my take. I believe in PEAK OIL...that's my deal. But if you don't and you believe there is this GRAND CONSPIRACY to control everything and keep oil supply off the market and prices high....IN THE END...does it matter?
PEAK OIL....PEASANTS LOSE
GRAND CONSPIRACY.....PEASANTS LOSE
PICK YOUR POISON...