It's not easy being an animal

Hello everyone. After several years of reading and commenting here, I’m pleased to have been given the opportunity to provide some posts for your perusal.
I’m going to start by sharing some thoughts on some apparent ironies and paradoxes of evolution on our planet. I’m going to focus specifically on the Darwinian theory of natural selection, also commonly known as ‘survival of the fittest’, and how this may apply to humankind in particular.
We humans are so much further down the evolutionary path than every other species aren’t we? We have amazing technologies, we are self-aware, we have governments to organise things, and we seem to continually be making great strides in improving our living standards, as well as our average life spans, especially in the developed (part of the) world of course. There also seems to be a continuing and growing desire to move towards humankind sharing its resources more, and looking out for those who are in need, especially within national borders.
Some call this socialism, which I believe means being friendly and caring to your fellow humans, and sharing with them (unless they’re very rich or foreign of course), ideally via a government agency, as opposed to getting one’s own hands dirty. The desire to see a fair society and a fair world, where everything is shared via central planning is perhaps not a good fit with the ‘survival of the fittest’ principle. Also, the internet seems to be enabling people from around the world to join together in a way never seen before, sharing information and views. In many ways it is a whole new world these past 20 years.

The Wheels on the Bus go ...

Over lunch last week, the Australian branch of the Screwtape Files team got talking world matters. Big topic: 'How is it that the wheels have not yet fallen off?'. Here we are in 2015 and the horrific financial collapse and devastation predicted by many - take your pick of the massive smorgasboard of potential disaster: Armstrong's Big Bang 2015.75, Australian Property Crash, China Economy Collapse, Revaluation of Physical Gold, Hyperinflation, Global Derivatives failure, Grexit from Eurozone, Kondratieff Winter, Bond Bubble Busting (etc) ... all of these are big ticket items so the fact that none of them have yet come to pass in finality (despite appearing to be constantly on the brink) seems to indicate that Ben Bernanke and his ilk really have worked some magic, albeit arcane and unholy.

Checking in

Hello friends,
As I mentioned in a previous comment, I'm on a brief sabbatical from STFU. But I see our friend Gary requested a chart a while back, so here are six (no financial repression here!).

First, a big picture view of gold.

Looking at 5 wk exponential moving averages in 5 major currencies, we see (1) the 2013 crash was minor in the big picture, but (2), (as I've been saying since then) that marked the end of the bull market of 2001-2011, and consequently, it would take some time before the next up-leg. Regarding which (and I'm in complete agreement with the most rabid gold bugs here) is on its way. Just not yet.

Incidentally, I have to laugh at the establishment types and apologists who think gold has no tie-in to macroeconomic fundamentals anymore. I.e. the blinkered ones who willfully refuse to see the tie-in between the growing debt (and consequent income inequality) since the 1970s and the jettisoning of what was left of the gold standard.

... e.g. note when the wage curves actually flatten, and where the New York Times puts the vertical demarcation here:

If you integrate under (Productivity - Wage),  you get ($$ stolen by Financial Parasites)
As I predicted it would do when I unveiled this chart many months ago, gold hit the MA-rainbow and has turned, just as it has done in previous corrections. Keep your eye on the horizontal green RSI line above.





Australian Data Retention Proposal = Stalin's Wet Dream [updated]

I barely have time to look up these days but when I do it's normal to discover Australian Politicians finding new ways to waste public money on inefficient and unecessary things. The 'data retention' scheme is one such, with the added of bonus of highlighting what an oppressive communist country we have become. It's back in the news because our government has estimated the cost - they want to spend over AUD$400 Million to systematically retain national communications 'metadata'¹ for a period of two years. Exactly which element about the proposal most offends me is difficult to determine ... possibly that whoever has the motive to circumvent the monitoring will definitely have the means to do so, and that for the most part the ability to track all this stuff is already in place and can be obtained should the target be important enough. The cost is apparently an ongoing one, in terms of sheer economic brilliance it's right up there with Kevin Rudd in 2008 giving out free 'stimulus' money to everyone including backpackers and some on temporary work visas.

Reserve Bank of Australia admits to holding only Unallocated Gold

This is a criticism of for the Reserve Bank of Australia (RBA) for their sloppy handling of Australia's gold reserves, lest they think they are somehow immune to scrutiny. During 2014, Bullion Baron (B.B.) has been on the case, pushing several freedom of information (FOI) requests in an effort to obtain some visibility - no less than three detailed articles HERE, HERE and recently, HERE.


Digging into the matter ourselves, Screwtape Files has hacked into their systems been fortunate enough to obtain a record of a phone conversation which took place between an RBA official and the Bank of England (Boe). The individuals remain unidentified but language pattern analysis indicates the conversation is authentic. For those of you without audio, I've taken the time to loosely transcribe the conversation (below).


(note: if the soundcloud applet above doesn't work, please use this link)

December Metals Report

Greetings friends- I'm basically just pasting a bunch of charts for you today that caught my eye, with only captions. But I'll have a more thorough year end post for you. Following my successful guarantee that the Swiss Initiative would fail, I am emboldened to make another --but only to my Platinum Members ... $1350 gold in the next three months.