Bullion Bulls Canada
Adrian Douglas of GATA Audio Interview
[note: we have split the interview into four parts, but there is also a link (below) to view or download the whole interview]
In our desire to bring our audience as much quality “content” as possible, Bullion Bulls Canada plans to start providing our members and guests with interviews of people who we feel can provide a valuable perspective – either on precious metals directly, or the markets which impact them.
We were pleased to be able to recently publish a written interview with respected silver analyst Ted Butler. Today, we are equally pleased to release our first audio interview – with none other than Adrian Douglas of GATA. He has recently become a “household name” to precious metals investors through helping to first publicize the revelations of metals-trader, “whistle-blower” Andrew Maguire, and then appearing with Mr. Maguire in the legendary “King World News” interview.
We don't repeat any of that material in this interview. Instead, we look at some of the repercussions of recent revelations, including those from Jeffrey Christian of the CPM Group, at the recent CFTC hearings. We also give Mr. Douglas the chance to provide viewers with many of his other interesting perspectives on the precious metals sector – taken from some of his recent and older work.
We hope that our audience finds this interview as enjoyable and informative as it was for us in getting a chance to talk with Adrian Douglas. And we hope that we can find a guest for our next interview who is as interesting and educational for our members and guests.
Canadian Government Blows-Up Housing Bubble
Stephen Harper’s Ultimate Crime is almost complete.
His campaign to destroy Canada’s economy began with his relentless, meticulous efforts to duplicate the disastrous U.S. housing bubble in Canada (along with piling up years of record deficits). We can be absolutely certain of Harper’s criminal intent here because he chose to duplicate the U.S. housing bubble in Canada after that market had already collapsed in an orgy of fraud-and-foreclosure.
But creating a bubble he intended to blow-up was only Harper’s first step in this malevolent plan. Step Two was preparing for after he blew-up his own bubble. Canada is the first – and only – Western nation to write “bail-in” provisions into its own, current budget.
For those readers, who were snoozing during the Cyprus Steal (and the details revealed about that crime in its aftermath); let me refresh your memories. The governments of Europe (under the control/direction of the One Bank) staged a carefully-planned “bank robbery” in Cyprus.
Of course it wasn’t the bank which was robbed. It was the bank which was doing the robbing (with the assistance of the Cyprus government), and the innocent depositors who were “held up” – after all the Big Money had been quietly warned to move their wealth out of Cyprus banks.
Immediately after this bank-robbery, we had the Corporate Media, the banking cabal, and the Traitor Politicians all proclaim that “a precedent had been set”; and they all immediately went about setting up their own “bail-in” frameworks, so they could rob their own populations. Some Western nations have done this surreptitiously, but not Stephen Harper.
Not only did Harper plant “bail-in” rules right into Canada’s most-recent budget, he explicitly stated that these rules were “based on” the template written by the One Bank itself, via one of its mouthpiece organizations, the (cynically titled) “Financial Stability Board”. Regular readers are familiar with my analysis of that policy-paper (No Paper Is Safe From A Bail-In: FSB):
6.5 As a last resort…some countries may decide to have a power to…recover any losses incurred by the state from unsecured creditors or, if necessary, the financial system more widely. [emphasis mine]
That’s right. The bail-in rules Stephen Harper planted into Canada’s Budget allow the government to steal any kind of paper out of any kind of account, from any part of the Canadian financial system. As I said at the beginning, “Ultimate Crime.”
So first Stephen Harper created Canada’s housing bubble. Then he (preemptively) put in place rules allowing the bankrupted banks to steal anything-and-everything from the Canadian financial system (i.e. ordinary Canadians).
All that remained for Harper to complete his crime was to detonate the bubble he created. The Corporate Media informs us that Stephen Harper has now done this as well. How? To understand this requires briefly backtracking, in order to explain to readers who didn’t read my original commentary how the Canadian Housing Bubble was manufactured.
The centerpiece to Harper’s plot was/is the Canadian Mortgage and Housing Corporation. The CMHC is an exact clone of the U.S.’s notorious fraud-factory, “Fannie Mae”. It provides virtually unlimited funding for the Big Banks to write-up fraudulent mortgages.
CFTC Silver Probe: See-no-Evil, Hear-no-Evil, Speak-no-Evil
When the world’s largest commodity futures “regulator” releases the results of a five-year probe; one expects to see a detailed, thorough, and well-reasoned analysis. What we see instead is a pathetic exercise in pseudo-logic – which could have been written in its entirety in a single afternoon. “Shallow” cannot begin to describe the lack of depth in this probe.
Indeed, one would not even attempt such a vacuous non-response to the question/issue of silver manipulation unless they were absolutely certain that their findings would not be questioned in the slightest – as poking holes in this drivel is proverbial “child’s play.” Thus in releasing such a farcical probe, this directly implies a totally corrupt (Corporate) media – one which only parrots, never questions.
Fortunately the CFTC has been kind of enough to place all of its pseudo-reasoning in bullet-point form, saving readers precious minutes of their lives which they would have otherwise wasted in going through its drivel line-by-line in order to expose this Big Lie. This makes the task of analysis simple: list these bogus arguments, expose the gigantic, unstated assumption (and omitted facts) upon which these “reasons” are based – and then translate them back into the Real World.
1) Silver cash and futures prices have risen dramatically between 2005 and 2007, with silver outperforming the gold, platinum and palladium markets, suggesting that silver futures prices are not depressed relative to other metals prices.
2) NYMEX silver futures prices tend to track closely the price of physical silver.
3) Concentration levels for the top four short futures traders in the silver market are comparable to those observed in the gold and copper futures markets, and generally are lower than the levels seen in the platinum and palladium futures markets.
4) The composition of the traders comprising the top four short futures traders, in terms of net positions, change over time. These traders represent a diverse group, and their futures positions are driven by an even more diverse group of customers.
5) There is no observable relationship between short-futures-trader concentration levels and silver prices.
6) There is a slightly positive relationship between the total net position of the large short futures traders and silver prices; this suggests that larger short futures positions are associated with higher, not lower prices.
All of this report is totally and completely predicated upon one, single assumption, with the exception of arguments (2), (3) and (4), which (because of their specific nature) are also based upon separate, false assumptions and missing facts.
The huge assumption upon which the entire CFTC report rests is that the silver market was “normal” at the time it commenced its sham-analysis, a market with supply and demand in balance, and prices in equilibrium. We know that this is an assumption in all of the CFTC’s reasoning, because never once does it attempt to address how its analysis would differ if one did not assume a market in perfect balance.
In fact, at the time the CFTC commenced its examination of the silver market; the silver market represented the most-tortured, perverted commodity market in the history of human commerce: prices near multi-century lows, inventories totally collapsed, near-complete genocide in the silver mining industry.
These fundamentals are so extreme that no “regulator” could possibly fail to be aware of them. Indeed, the CFTC deliberately, cynically chose the absolute lowest point of this multi-century silver trough as the “norm” upon which it bases its entire pseudo-analysis.
The Fourth Reich
It is historical fact that the United States “recruited” heavily from Hitler’s “Third Reich”, the Nazi regime which terrorized the world before and during World War II. Primarily, the U.S. wanted Hitler’s scientists, which it used to construct the world’s first Doom’s Day weapon – which it then immediately used on Japan, twice.
Given this disturbing pedigree; it is not entirely surprising that the United States has risen up in the image of Nazi Germany. The parallels are stark and numerous.
It has created the world’s largest war-machine (even more dominant than Hitler’s). It has turned its former democracy into a fascist, two-party dictatorship. It has no respect for international law. It has no respect for its own, domestic law.
The U.S. Constitution might as well have been burned, as this two-party dictatorship routinely ignores its mandates, passing illegal “laws” which flout those provisions, generally in the name of stripping personal liberties/human rights. A nation which used to be famous for building highways and bridges now devotes nearly all of its construction dollars to building secret prisons and hi-tech surveillance facilities (while its highways crumble, and its bridges collapse).
Like the Third Reich, the Fourth Reich is a rabidly racist and xenophobic regime. It has alternated hating/fearing/persecuting blacks, Latinos, (non-white) Muslims, and any other demographic not WASP’ish enough to meet its standards for racial purity.
Like the Third Reich; the Fourth Reich is an extremely belligerent regime. It indiscriminately engages in the use of military force, leaving a large wake of dead, innocent civilians in its litany of war crimes. It tortures, it detains people without charges, without evidence, and without habeas corpus (i.e. “indefinite detention”). It claims the “right” to assassinate anyone, anywhere, simply by pointing its finger at a target and claiming that they “deserve it”.
Perhaps more disturbing are the efforts of its massive propaganda machine to warp the minds of its own population. The resultant cultural insanity – this Binary Insanity – has made the U.S. population literally incapable of even considering “moderation”, in anything.
Deliberately divided into two opposing, hate-filled political camps; there is no longer any objective Truth in the minds of these Binary Drones. Rather, every single issue in their lives has either a “Republican truth” or a “Democrat truth” (depending on the political affiliation of individual drones).
But where objective Truth does not exist, there cannot be any “reality”. Instead there is simply the Propaganda Matrix (Republican version, and Democrat version); into which these Binary Drones willingly “plug” their own minds.
A legitimate news media is comprised of roughly 80% reporting of facts/information, and 20% opinion/analysis. The Propaganda Matrix is the precise, perverse opposite of this. Small amounts of heavily-filtered, fictionalized “news” are accompanied with endless, repetitive rants – as Republican propagandists and Democrat propagandists preach to their respective, Drone zealots.
The Drones are not simply told (again and again and again) how to interpret this “news”; they are told how to think. There is no longer any diversity of opinion. Rather, this Corporate Media preaches to the Drones as a single, monolithic herd – the classic trademark of any propaganda machine – except bifurcated into two parts, to create the illusion of “choice” (and illusion of democracy).
Proof of this two-party dictatorship comes simply from observation. While the two-halves of this dictatorship (neatly) alternate between titular control, the policies never change. The foreign policy remains identical. The monetary policy remains identical. The economic policy remains identical – subject to the fact that all these policies become steadily more extreme/radicalized.
While one could write chapters about the structure and evolution of this hate-filled society, this would fail to capture one of the most-important realities of this social, political, and military monstrosity. The Fourth Reich is, itself, a Puppet Regime.
Limiting Executive Compensation: the Swiss Example
Obtaining perspective with respect to the issue of “executive compensation” requires little effort. One simply compares historical norms with the outrageous excesses of the 21st century.
Go back a century ago; when our governments were solvent, our economies were prosperous, and everyone had jobs, and the pay ratio between senior management and the average worker ranged from roughly 3:1 to 10:1. Flash ahead to the 21st century; when our governments are bankrupt (from a massive revenue crisis), our economies are mired in permanent depressions, and structural unemployment is at all-time highs, and we now often see this ratio exceeding 1,000:1.
CEO’s (allowed to run amok) are awarding themselves compensation hundreds of times more than what they are earning. Let me quantify this more precisely for the mathematically-challenged majority. Being paid 1,000 times more than the median wage rather than 10 times more (the norm) equates to being paid 100 times more than one earns.
But understand that “100 times” doesn’t mean being overpaid by 100%. It equates to being overpaid by 10,000%. Put another way, the “compensation” being stolen by these corporate thieves would have to be reduced by more than 99% to lower it to what these executives actually earn.
Conveniently, Bloomberg has provided us with a corporate Hall of Shame, taken just from corporations listed on the U.S. S&P 500 Index, a (partial) list of the most overpaid CEO’s in an era of the most grossly excessive executive compensation in history:
JC Penny Co. 1,795:1 ($53.3 million)
Abercrombie & Fitch Co. 1,640:1 ($48.1 million)
Simon Property Group Inc. 1,594:1 ($137.2 million)
Oracle Corp. 1,287:1 ($96.2 million)
Starbucks Corp. 1,135:1 ($28.9 million)
Even if we take the high end of the historical norm (a 10:1 compensation ratio); every one of these corporate thieves would have to have their criminally-inflated “compensation” reduced by more than 99% to bring it down to what they actually earned. And understand that a crime is being committed here.
It’s called “misappropriation of funds” (i.e. embezzlement, i.e. theft). Taking more than 100 times more than one earns, and calling it “compensation” is no more legal than a CEO announcing he was using corporate funds to buy separate palaces for a harum of mistresses. The fact that corrupt/complicit boards of directors of these corporations allow this theft-in-broad-daylight to take place again and again and again does not make it legal – it only makes them accessories to these crimes.
Finally, the citizens of one nation are taking action. Put another way; the only nation which still has “citizens” is taking action: Switzerland. The people of that nation proposed limiting executive compensation to a hard cap of no more than 12 times the wage of the lowest paid worker (not the average pay). Thus this Swiss proposal would do nothing more than mandate compensation limits which are in line with historical norms, when our nations were solvent and prosperous.
It is ironic – but in no way surprising – that the workers/citizens standing up and saying “enough is enough” in Switzerland are already the highest paid workers in Europe. But even with the (relatively) high average wages in that nation; the corporate thieves of Swiss corporations would still see their own compensation reduced by 90% or more to bring it down to what they actually earned.
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