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- in reply to: Miscellaneous #5501
The grades are in from Yahoo and California of all 50 states is the worst run of all. The guys in Sacramento have failed.
50. California
Thinkstock> Debt per capita: $4,008 (18th highest)
> Budget deficit: 20.7% (17th largest)
> Unemployment: 11.7% (2nd highest)
> Median household income: $57,287 (10th highest)
> Pct. below poverty line: 16.6% (18th highest)California is 24/7 Wall St.’s “Worst Run State” for the second year in a row. Due to high levels of debt, the state’s S&P credit rating is the worst of all states, while its Moody’s credit rating is the second-worst. Much of California’s fiscal woes involve the economic downturn. Home prices plunged by 33.6% between 2006 and 2011, worse than all states except for three. The state’s foreclosure rate and unemployment rate were the third- and second-highest in the country, respectively. But efforts to get finances on track are moving forward. State voters passed a ballot initiative to raise sales taxes as well as income taxes for people who make at least $250,000 a year. While median income is the 10th-highest in the country, the state also has one of the highest tax burdens on income. According to the Tax Foundation, the state also has the third-worst business tax climate in the country.
in reply to: Stock exchange listing #5500Several processes are going on regarding stock certificates and safe deposit boxes. Most banks send notices to safe deposit holders when rent is delinquent. The times may vary but several notices will be sent before a box is cleaned out. The contents (inventoried and secured elsewhere) are held for seven years before the State gets involved. The bank notifies the State and the property is for default (to escheat). The State then holds power to dispose of the contents.
Our transfer agent has not received a request for transfer for these low selling shares. My question is, “How is the stock certificate transferred?” Someone must pay for the transfer: the seller; the buyer; a brokerage house that transfers it into “street name” and then sells it to a customer. This is why I always recommend taking a certificate for Original Sixteen to One Mine, Inc.
Our files have a history of certificates going back to 1911. While it is not an issue right now, short sellers must put up shares as collateral for the short (usually borrowed from another source). Over the years I have cautioned anyone from selling Original Sixteen to One Mine, Inc. short. You likely can speculate why. Like gold, a stock certificate is easily stored at home or office.
in reply to: Miscellaneous #5499From this morning’s International Forecaster:
8) Gun control is coming via a United Nations Small Arms Treaty to ban all guns. Within 24 hours of his “victory” Obama called to get a copy of this bill to submit to Congress. The real reason for the Second Amendment is protection against the government, not home defense, hunting, or sport shooting. Slaves can’t own guns, only free people can. You can’t have a police state when the citizens own guns.
All the scumbags waiting for free government handouts, free food, free medical care, and free everything else will starve in the streets as the government runs out of money. They will find their “free” health care means almost no medical care at all. You know, like in Cuba where healthcare is free, only there isn’t any.in reply to: Stock exchange listing #5498“If anyone can add light to this, please post you findings.”
stock certifices left in safe dipost boxes over 3 years without any action by the holder of the box or part of estates that fall into the hands of the state of calif get sold and the state does not care if they get the real value for the stock certifices they will just sell them and put the money in a account till the money is claimed
in reply to: Stock exchange listing #5495RE the info below – Just to clarify, it was not me, and I have zero info on these trades – just posted so that people are aware of what is going on.
in reply to: Stock exchange listing #5494For what it’s worth…
Recent trades:11/15 2,550 at 0.20
11/20 7,225 at 0.20
11/20 525 at 0.18
11/20 525 at 0.18
11/20 300 at 0.15in reply to: Stock exchange listing #5497Mike, sure looks like its a youngster…maybe he’ll use the $45 to go on a gold adventure…
in reply to: Stock exchange listing #5496I also have zero information as to why a shareholder would sell 300 shares for fifteen cents or $45. What would the minimum commission be? Does the buyer pay his broker a commission?
Until a couple of items are fixed, don’t look to the Company to get too excited about any stock trades. There are very few small companies in the gold business that ignore promoting their stock. In fact that is what most do all the time. My capital in Sixteen to One is patient capital. I look ahead to better times. What in the world did the seller do with the $45?
Our issues will be solved, the sooner the better. Thanks, cw3343. I look at our stock market page once in awhile. Those sellers could have really scored if they checked our web site. A buyer stepped up with a $0.30 bid.
These trades interest me because I have never met a shareholder in thirty years that would treasure a few bucks more that a small position in this company. If anyone can add light to this, please post you findings.
in reply to: Miscellaneous #5493We’re in a new era, that’s for certain.
While it shames me to witness Deserve-icrats voting presents for their apparent laziness, let’s foregive them for their ignorance, move forward and lead by example, since the strong always survives.
Our focus is the same: Discovery. In fact, it is even made that much more powerful by each caltrop thrown down in front of us, by each new regulation whose intent is lost in practicality, by the ignorance we must overcome, and by the challenge to enlighten the ill-informed…and by success which will never be squashed by those intent on control.
Hey, we just show them!
Human spirit defines Success…not all the crap that inevitably gets in the way.
ONWARD!!!
in reply to: Gold Enters Major Bull Market #5492Gold $1733.20 UP $19.50
Silver $33.18 UP $ 0.87Excerpts from an Eric Sprott/Greg Hunter interview:
Money manager Eric Sprott says, “The central banks’ gold is likely gone with no realistic chance of getting it back.” Don’t expect this revelation to get any coverage by the mainstream media. In an interview last week, Sprott’s analysis was met with words such as “gold bug” and “conspiracy theory.” Sprott answers that sort of disrespect by saying, “We’ve had so many conspiracies, I don’t know why anyone would think this was unusual.” To back up his point, he named “LIBOR, electricity markets in California and the Madoff” scandals. Sprott’s analysis shows a “flat supply” and at least a “2,500 ton net increase in gold demand” since 2000. “Where’s all the gold coming from?” asks Sprott. He says Western central banks “. . . keep supplying this market with product in order to keep the price down so nobody knows how vulnerable the situation is.” Sprott, who manages nearly $10 billion in assets, boldly proclaims, “We have a shortage of gold.” Join Greg Hunter as he goes One-on-One with Eric Sprott of Sprott Asset Management.
in reply to: INTERSTATE COMMERCE AND SMALL MINES #5491Judge Bulluck closed the MSHA administration hearing today before noon. Post hearing briefs are limited to 35 pages, doubled spaced, 60 days from the date of receipt of the second party. The Company will file a Freedom of Information Act request to the Federal Mine Safety Health Review Commission (FMSHRC) for a copy of the transcript. Both briefs will be filed simultaneously, which means each brief is the last word. I expect a decision before spring 2013.
We have contested the language and alleged harm to a Sixteen to One miner based on many assumptions in the citations. Good paper has been hard to find from inexperienced inspectors without a background in a mine such as ours. Currently, a serious concern about bad paper (poorly written expressions of negligence, gravity and potential harm to our miners) has hit northern California from not only inspectors with no underground gold mining experience but inspectors with none or little mining experience. The current batch of young men sent here to protect our safety need to be protected by us for their safety as they conduct an inspection in the mine. I am taking steps necessary to purge this unwarranted behavior.
Now some positive and great news: history treats Herbert Hoover in diverse ways. I’ve read a bit about his life. President Hoover began his career as a mining engineer. I think he was graduated from Stanford. He wrote, “The future of nations cannot be frozen . . . cannot be foreseen. If we are going to accomplish anything in our time we must approach our problem in the knowledge that there is nothing rigid or immutable in human affairs. History is the story of growth, decay and change. If no provision, no allowance is made for change by peaceful means, it will come anyway- and with violence.”
Five people made some history in a mining and judicial environment with this administration hearing. We failed to address one of the changes I sought: Does the mining program at the Sixteen to One mine meet the congressional intent of affecting interstate commerce? This question must be laid before another level for review, which I intend to do. This question needs an answer until it can go no farther. What President Hoover wrote fits out times and our industry. More on this subject will be forthcoming as the provisions for peaceful dialog are ascended.
in reply to: INTERSTATE COMMERCE AND SMALL MINES #5490Below is the opening statement I prepared to present at November 14th’s hearing. If you are looking at this topic for the first time, please scroll down to the first entry and read to the top.
The judge ruled in favor of the Secretary of Labor’s motion, so my preparations became inappropriate. Nevertheless, the issue remains for another day, and I thought those of you following our company should stay current with my attempt to bring clarity to this topic: interstate commerce and the intent of the language in the legislation that originated MSHA and the Code of Federal Regulations. The issue has never been whether MSHA has authority to inspect and write citations. It has; but that authority is qualified and currently the Sixteen to One does not qualify.Language is all we really have to maintain our social behaviors as Americans. The public has become so use to its distortions that too many people have turned off their abilities to understand. Our local government elected people who talk about “critical thinking and communicating”. It is typical and leads to constructive outcomes. My deceased friend and unusual California bred lawyer and I spent hours arguing (as law type people argue). He knew the law, its intent and its practices. I knew the facts and situations of the cases we fought for. George Gilmore is his name. He reminded me that the game of law is a “war of words.” Both of us knew ethics of the business under discussion and the justice we, as Americans, have earned through the deeds and sacrifices of our ancestors. Both of us deeply loved, respected and grieved over the demise of our legal systems. We pledged to each other and our country to carry forth in the spirit of justice and the integrity of the judicial branch of our government.
If this hearing is about the safety of miners in the Alleghany region and specifically working at the Sixteen, the primary issue is whether the federal agency abbreviated to MSHA (Mine Safety Health Administration) had the lawful authority to enter the private property of Original Sixteen to One Mine, Inc. at the times noticed in this hearing. Respondent does not challenge the United States Constitution or its founders thinking when they referenced the power of Congress relative to commerce in 1776. Nor does it rely on subsequent congressional decisions collectively referred as “the commerce act”. These are not the primary actors in dispute.
Congress has responded to economic and other social behaviors towards commerce over the past 236 years. It exercises its constitutional power. The INTERSTATE COMMERCE ACT is a law passed in 1887, due to a rising concern with the growing power and wealth of corporations, particularly railroads. Revenue, power or greed influenced Congress into action. Sitting here 125 years later and familiar with history, I agree with Congress. An Act that established federal agency Mine Safety & Health Administration (MSHA) was passed in 1977. Sitting here 35 years later and living the mining industry, I agree with Congress. The origin of MSHA was created in Congress and signed into law by the President. It is called An Act: Be it enacted by Senate and House of Representatives of the United States of America in Congress assembled. That this ACT may be cited as the “Federal Mine Safety and Health Act of 1977”.
Sections of An Act define the interactions of commerce, of regulation and of the duty and rights of miners and operators of mines. An Act clearly spells out Congress’s declaration in its Findings and Purpose in Section 2.
Congress also provided us with its intentions in Section 3 as to word definitions. It clearly specifies that language exclusively “for the purpose of this Act, the term ‘commerce’ means trade, traffic, commerce, transportation, or communication among the several States…or between points in the same State but through a point outside thereof.” The language becomes more specific in Section 4: “Each coal or other mine, the products of which enter commerce or the operations or products of which affect commerce, and each operator of such mine, and every miner in such mine shall be subject to the provisions of this Act.”
Today, Petitioner has moved away from the intent of Congress, laws established to protect America, the mining industry and “its most precious resource—the miner”. The health and safety of all in Respondent’s mining industry and those who prosper when minerals are extracted suffer from the consequences of these unlawful trespasses and inspections resulting from MSHA’s lack of compliance to An Act plus its own policies and regulations. MSHA has brought forth irrelevant cases in support of its right of inspection at this specific place and specific time. A broad brush approach to An Act is used to imply that the federal government has absolute control over all divisions of mining. This is absurd.
I do not agree with MSHA. When federal documents are read thoughtfully, it is obvious that today the intent of the authorizing Congresses is ignored. Even a careful reading of its case law, (stretched beyond credibility at times to keep power to MSHA) one cannot conclude that Section 4 of An Act established those qualifiers necessary to give regulatory privileges to MSHA. Such requirements to assert economic consequences from Respondents measly little operation as to quality, quantity, relevance between interstate commerce do not exist. There is no supportive evidence. The definitive phrase is “which affect commerce”. That which affects commerce must be considered in executing the right of control over those in the mining industry by MSHA. Unfortunately for Middle America and all US citizens over the age of eighteen, our government has stepped outside the law. If I could make a citizen’s arrest, Original Sixteen to One would arrest MSHA.
For the Respondent, this hearing and issues are not political. They are crucial for its survival. To reach our desired decision (the determination that MSHA lacked the authority at this time and at this place), we ask your Honor to embrace a progressive view of the facts presented by Respondent and the facts not presented by Petitioner. Yes, your decision fits the popular term, “progressive”. The strength to move into the 21st century from an outdated conservative attitude grounded in a farming incident in 1938 requires a liberal understanding: evidence presented, history, contemporary behaviors within and without the underground hard rock mineral extraction industry.
in reply to: Clips from Alleghany #5489The apparently most important item this week has been the administration hearing held in Nevada City. Haven’t seen munch of Mike’s truck outside the office. Just heard that it will continue until Monday. That will be four days to discuss 25 citations.
in reply to: Stock exchange listing #5488First Northern is actually listed as “FNRN.” Yes, they, too, are closely held and not wanting wide distribution of shares.
They, however, have ample capital and are content with their slow, steady growth.
I would recommend that OSTO consider some means of raising funds from shareholders via a rights offering or other mechanism. While OSTO has been willing to consider large block investors, none has come forward over the past several years.
Can we now utilize the small business exemptions for easier capital raising to go to current shareholders? Something like a new share for $0.25 for every 4 shares already held?
in reply to: Miscellaneous #5487Banksters Escape Jail Time, Again.
Seems the SEC has lost their deck of “go to jail” cards at public expense.
This is wonderful, the painful financial losses the public suffered at the hands of J.P. Morgan are now being shared with the SEC. Is the SEC now partners in crime with the banksters? It would seem so in the settlement as Morgan doesn’t admit wrongdoing, keeps their immoral profits, and therefore no one goes to prison.
What ever happened to the Golden Rule?
No Individual Charges In Probe of J.P. Morgan
By JEAN EAGLESHAM and DAN FITZPATRICK
November 12, 2012
The top U.S. securities regulator doesn’t intend to charge any individuals in its planned enforcement action against J.P. Morgan Chase JPM -0.12% & Co. for the allegedly fraudulent sale of mortgage bonds, according to people close to the investigation.
The largest U.S. bank by assets will pay a significant financial penalty under the proposed deal, which has been approved by Securities and Exchange Commission staff but not by the agency’s five commissioners, said the people close to the probe.
The J.P. Morgan deal is expected to be the first in a series of SEC enforcement actions related to Wall Street’s manufacture and sale of mortgage-backed securities, said the people close to the investigation. But the landmark deal could revive a long-running argument about whether the authorities have let too many individuals go unpunished.
The settlement stems from a wide-ranging SEC probe dating back to 2010. The proposed deal wouldn’t require J.P. Morgan to admit to wrongdoing or face any allegations against any current or former executives, the people added.
J.P. Morgan’s payment is expected to be significantly less than the $550 million paid by Goldman Sachs Group Inc. GS +0.34% in 2010 to settle claims by the SEC that it misled investors in a type of mortgage-bond deal called a collateralized debt obligation. Goldman didn’t admit or deny wrongdoing.
This is an excerpt. The full story is linked at http://www.jsmineset.com
in reply to: Miscellaneous #5486From this mornings International Fotecaster:
The debt is too great to be repaid.
The official national debt is $16 trillion—about $50,000 for every man, woman and child. Technically, that debt might be paid in full, but only after Americans were subjected to at least five years of austerity and Greece-like riots.
However, John Williams (Shadowstats.com) calculates that an honest measure of the national debt may be $85 trillion—about $275,000 for every man, woman and child. That debt can’t ever be paid in full, or even by half. Common sense sez there’s no way to squeeze $275,000 out of each American (over $1 million from the average family of four)—simply because the people don’t have sufficient assets to pay such bills.
If I had to bet, I’d predict that at least 80% (and perhaps 90%) of that debt can’t be paid and therefore won’t be paid. If so, at least 80% of the current value of existing treasury bonds will be repudiated. Those holding US bonds will lose their assets.
The Congressional Budget Office (CBO) has calculated that the entire funded and unfunded national debt is about $202 trillion—about $650,000 for every man, woman and child. If it’s impossible to pay the national debt as calculated by John Williams, it’s doubly impossible to repay the national debt calculated by the CBO—and doubly certain that those holding paper debt-instruments are going to lose their assets.
in reply to: Miscellaneous #5485Jim Sinclair’s Commentary from http://www.jsmineset.com
The most substantial development hides in Weed.
The national egg is slowly cracking, a heads up, from David Madisonstyle.
Remember the Russian economist that predicted the USA would break down into various United States versus the US Central Government? How could that happen? Well, here are the seeds planted for the conflict called nullification.
If the central government passes a law that exceeds its ceiling of power as described in the Constitution, the individual states have a right to refuse to obey it. Claiming rights today is a very dangerous act. Claim the right of Warrant and see what happens to you when the local or federal swat guys come through the door. By the way they are trained that the first thing they shoot are your dogs.
What many have feared for so long is developing right in front of your eyes.
BIG VICTORIES UNDER THE RADAR TUESDAY NIGHT
by Jon Rappoport
November 8, 2012Okay, so we saw Obama and Romney go head to head and grab the headlines Tuesday night. Clown puppet A beat clown puppet B. The real winner was big federal government, and that was a foregone conclusion before a single vote had been cast or rigged.
Big gov was going to come out on top either way. We knew that.
But at the state level, six things happened that are cause for celebration. Six states told the federal government to take a long walk on a short pier. They passed ballot measures which directly contradict federal law and, in three cases, the US Supreme Court.
The egg is slowly cracking.
It’s called Nullification. If the central government passes a law that exceeds its ceiling of power as described in the Constitution, the individual states have a right to refuse to obey it.
A continuation of the article can be accessed at http://www.jsmineset.com
in reply to: INTERSTATE COMMERCE AND SMALL MINES #5483Below are excerpts (also additional comments) from my filing with the Hon. Jacqueline Bulluck, ALJ with the Federal Mine Safety and Health Review Commission. To understand this topic, please scroll down to the beginning and read forward from the first entry.
LOCATION OF UPCOMING HEARING
MSHA v. Original Sixteen to One Mine, Inc. hearing is scheduled to begin at 9:a.m. on Wednesday, November 14, 2012 through Friday, November 16, 2012 and continues on Monday, November 19, 2012 in Nevada City, California at the Law Library at Superior Court of California, 201 Church Street. The Company is exercising its right to challenge the gravity of potential likelihood of injury, potential effect of injury, significance of injury, negligence and the financial impact of penalties. It has done this over the years when warranted. As written, the accumulated penalties are about $3,000. Numerous inspections over a two plus year span have been combined into this hearing.
Many large mining companies (small ones also) budget money as the preferred way of dealing with MSHA citations. This has encouraged questionable interpretations of those “potentials” listed above. The biggest mining companies hire a full time safety compliance employee. Perhaps they need someone to specifically deal with safety. Our operation is quite different. Our crew has multi-skills of mining, not specialized as is the practice where hundreds of miners work underground. Our crew is not only aware of safety issues but is the first line of defense or action to eliminate hazards THAT COULD INJURE OR KILL THEM. We continue to have smart guys with a good head on their shoulders, not idiots. I say idiots because inspectors must believe that most miners are idiots and too stupid to even walk, talk and work. If you want to see an example of the effects of the dumbing down of America, look at the citations written at the Sixteen to One.
Our crew is well experienced with the specific nuances found at the Sixteen to One. Our management always keeps supplies on hand and always encourages the crew with its slogan, SQUARE: S=safety Q=quality U=you A=accountability R=responsibility E=efficiency. In a non-dangerous business I expect many companies place efficiency first. Not so with underground mining. It is an inherently dangerous business. Once that point is expressed and understood, safety races to the forefront.
MSHA inspectors have little experience in a mine like the Sixteen to One; even those with careers at other mines have difficulties. Today inspectors appearing in Alleghany have little or no experience as underground miners. This hearing is important for several reasons. The press cites the number of citations in articles when an accident occurs. The reader lacks a background to understand the relevance but it sure sounds like management was negligent and cared little for safety. There is no lack of written regulations from federal or state bureaucrats in the mining industry. Our crew members have made the following comment many times over the past twenty years: “MSHA’s attitude towards miner safety will cut down accidents because it continues to eliminate job opportunities for men to be hired and trained. Why not close all the mines. Then the miners will be safe because no one will be working.”
I’m not that cynical. MSHA still has a purpose today. It was definitely created to help the industry’s accident and mortality rate four or more decades ago. It succeeded. Its existence is not the issue. Its execution of the intent of Congress when it created a law and subsequently funded it with public money is the issue. If specious citations are not challenged, the small fries in natural resource extraction industries may become extinct. They are miners, loggers fishermen and farmers. If our American leaders want to eliminate the little guy, our natural resource industries will become large multinational corporations. It’s worth a little fight to stop or slow down this trend.
in reply to: Miscellaneous #5484Mike, you might want to check out this page of the American Mining Law forum
http://americanmininglawforum.myfastforum.org/MSHA_amp_THE_1872_MINING_LAW_about70.html
Big Alin reply to: Gold Enters Major Bull Market #5482It doesn’t get any more bullish for buying silver in here than the news from Jim Sinclair of a major failure to break the silver market.
November 4, 2012, at 2:58 am
by Jim Sinclair in the category In The News | Print This Post | Email This PostMy Dear Friends,
There is much discussion this weekend of the following:
Almost 192 million ounces of paper Silver were ‘dumped’ on the market Friday within ten minutes upon the NFP release. This is the equivalent to one-quarter of the world’s annual physical Silver production.
–CIGA RS.Have you for a moment considered that 192 million ounces of silver were purchased on the market on Friday within 10 minutes?
Respectfully yours,
Jimin reply to: Miscellaneous #5481More on Frankenstein foods
The following was submitted by James Corbett in this mornings International Forecaster:
“Biotechnology”
Intended meaning: The modification of living organisms by scientific processes for the benefit of humankind.
Actual meaning: The use of technology to tamper with the genomes of plants and animals in order to create hybrid monstrosities for the benefit of well-connected corporations like Monsanto, Syngenta, Cargill and other seed monopolists. Funded and promoted by the Gates Foundation, the Rockefeller Foundation and other billionaires (who also happen to be heavy investors in the Svalbard doomsday seed vault project), GMOs and other examples of biotech are supposed to reduce farmers’ reliance on pesticides, increase crop yields, and create foods that are perfectly safe for humans to consume. In reality, GMOs increase reliance on pesticides, produce no gain in crop yields, and are consistently shown in independent testing to have disastrous health consequences including increased cancer rates and sterility. They are, however, perfect for helping a very few companies to concentrate more and more of the world’s food supply in the hands of fewer and fewer individuals, and have so far been spectacularly successful in accomplishing that very goal.
See also: Genetic engineeringin reply to: Gold Enters Major Bull Market #5480Here we go again,
Gold $1676.90 OFF $38.10
Silver $30.91 OFF $ 1.35Don’t know which is sadder either watching these foolish paper dragons scare holders of physical gold and silver with their dirty tricks or sensing their induced fright in people from losses they believe they are experiencing on days like these.
The only thing I know for sure is I have to pay more for less at the supermarket and I’m being bombarded on TV with Monsanto hacks telling me prop 37 here in California is a “no vote.”
Sorry, I’m not falling for manipulated metal prices(only to get great buys), thinking cereal boxes are as full as you would suppose from their box sizes and I’m not falling for all the hired quacks trying to get my approval against labeling Frankenstein foods.
I was thinking of food debasement because our currency debasement is a never ending story that requires us to add to our physical holdings with today being another great opportunity. This id not the day to be scared but the day to be bold with a few buy orders. Step up to the plate and take a few swings. I’ve been doing just that, even at last week’s higher prices. Early next week I’m going in for a few more pieces.
Jim Sinclair is looking for $6000 on the yellow metal. Mr. Sinclair is 71 years old and is referred to in the gold community as “Mr. Gold” for his past brilliant forecasts.
As the people get squeezed more and more by governments and as more and more inflation creeps into the system gold will always be your family’s savior.
Disclosure:
I use http://www.golddealer.com and http://www.apmex for my coin transactions.
in reply to: Clips from Alleghany #5479Too much time has eclipsed since a word from Scoop. At 6pm a community meeting begins with a member of the US Post Office. Federal law established rules and procedures when postal service to a community is considered for a significant change. Alleghany is under consideration. Congress laid down policy for keeping small and remote postal service available when revenue drops below expenses. The first hit to post office revenue happened when the school left Alleghany and moved down the road to Pike. That was about twenty years ago. The next hit in revenue happened about twelve years ago when that old Sixteen to One decreased mailing regular newsletters to its shareholders. The mine company also used the post office to ship gold bars to the smelter, which were heavy and insured. Ah, the good old days! A grip amongst the community is the existence of numerous post offices in the Tri County region that are less than tem miles apart. Alleghanians are going to take over a twenty two mile drive to the nearest post office for services and twenty two miles to return. Maybe no one cares but don’t bet on that.
The Sierra Nevada had a record early snow storm ten days ago. Rain last Wednesday melted the snow but what a great early warning to everyone who has not finished (or started) preparations for winter.
A big bear is wandering around the north side of town and a little bear that is believed to lost its mother is wandering around the south/western part of Alleghany. The pot harvest of the local growers is no longer in sight. Most folks are relieved that city slickers did not zero in on the possibilities of stealing the harvest and shooting up the town. Not much more to tell you.
in reply to: INTERSTATE COMMERCE AND SMALL MINES #5477Absolute power is a dangerous thing. Did anyone see the movie “V For Vendetta?”
The quoted marijuana case is interesting when more and more States now legalizing the weed. The past local Indian civilizations use to grow it and smoke it and they had no problems until the whiteman showed up.
I would bet that the States have or should have the right to govern their own citizens in a sensible manner. You can not throw a rule book meant for major corporations at small local business owners. All I know is the Sheriff has, regardless of who says what, more authority than MSHA.
The obvious overstepping of the Commerce Act is stepping on State’s rights. I
“Squeeze The People.”
Somewhere along in time the regulators will reduce us all to poverty levels where we won’t be able to pay our mortgages like some unfortunate folks at the closed down operations already know about.
The past Chairman of the FED, Alan Greenspan, gave the banks certain rights to govern themelves and they messed up and we were forced to bail them out. Why can’t we regulate ourselves and if we mess up, then the public can make any potential messes whole again like the get-out-of-jail cards that were given to the big banks?
Why do we need the duplication of expenses from regulatory agencies, especially one that sits 3000 miles from our operation in Alleghany? Mike, the next time MSHA comes up to the Mine just call the Sheriff and ask for patrol car ahead of time to enforce our no trespassing signs.
We already have enough difficulty to handle from the State. Having a mix of another body of fingermen knit-picking our area to death could eventually put the whole County out of work. Enough is enough!!!!!
in reply to: INTERSTATE COMMERCE AND SMALL MINES #5478STATEMENT OF MATERIAL FACTS IN REFUTATION OF SECRETARY OF LABOR’S MOTION FOR PARTIAL SUMMARY JUDGMENT AND STATEMENT OF MATERIAL FACTS IN SUPPORT OF OPERATOR’S POSITION
Of course the Congress is empowered to regulate commerce with foreign nations, and among the several states, and with the Indian tribes as presented in Article 1, Section 8(3). In 1977 Congress enacted by the Senate and House of Representatives of the United States of America An Act, Federal Mine Safety & Health Act of 1977, Public Law 91-173, as amended by Public Law 95-164.
For the purposes of this Act, Congress identified the Secretary of Labor or his delegate to conduct the implementation of the findings and purpose of An Act. The first priority and concern of all in the coal or other mining industry must be the health and safety of its most precious resource—the miner. For the purpose of this Act, the term “commerce” means trade, traffic, commerce, transportation, or communication among the several states, or between a place in a State and any place outside thereof, or within the District of Columbia or a possession of the United States, or between points in the same State but through a [point outside.
Mines subject to An Act is defined. If the intent of Congress were all mines in the United States shall be subject to An Act, there would be no reason to include specific language in An Act to restrict a generalization that all mines at all times are subject to An Act. Congress wisely was specific: Each coal or other mine, the products of which enter commerce, or the operations or products of which affect commerce, and each operator of such mine, and every miner in such mine shall be subject to the provisions of this Act. For Petitioner to allege that “there are no material factual issues to be resolved on this specific legal issue of whether the Secretary had jurisdiction under the Mine Act to issue ten of citations currently in contest” is absurd, self-serving in an attempt to expand its authority, arrogant, against intentions of Congress, not in the Publics’ best interest and not in the best interest of miners, which An Act professes to protect.
The burden of proof that no issues of fact apply in the case before you rests with Petitioner. Petitioner must present evidence that the following occurred at the times of its inspections: products were being mined; those products entered “commerce”; either the operation or products affected commerce for the operator and every miner was subjected to the provisions of this Act. Petitioner has failed to present such evidence. Respondent objects to all, if any, evidence presented by Petitioner alleged to support these conditions cited in An Act.
BACKGROUND
The Original Sixteen to One Mine, Inc. is the oldest mining corporation (incorporated in California) still in existence in the United States. The mine located in 1896 and its owner, established on October 11, 1911, is one of 500 public American corporations over 100 years old. The mine site has been worked for the production of gold since 1853. Due to vagaries of economics, commerce, laws, but predominately its unique gold deposit and other known and unknown uncertainties, its operation is considered as feast/famine, very irregular and speculative.
In 2008 the operator faced serious financial consequences, forcing it to lay off its crew and cease mining. Up to this time questions regarding whether the commerce clause referred to by Petitioner applied to this specific property and operation remained is the recesses of the mind. Due to the unwanted and dramatic situation, operator found it was required to do, as owner of the property of many people, the preservation of its assets that became its only goal
DISCUSSION
Summary judgment is only appropriate if the moving party has demonstrated that there is no triable issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Stated differently, if a single material fact is in dispute, the motion must be denied.” From commencement to conclusion, the party moving for summary judgment bears the burden of persuasion that there is no triable issue of material fact and that it is entitled to judgment as a matter of law.” Aguilar v. Atlantic Richfield Co (2001) 25 Cal. 4th 826, 850.
CONCLUSION
For the reasons set forth above and explained in greater detail in papers filed with the Secretary, operator, Original Sixteen to One Mine, Inc., respectfully requests the Court to deny Petitioner’s motion for summary judgment. Petitioner has not met its burden of showing that undisputed facts support each required element of its cause of action and Petitioner is not entitled to entry of judgment as a matter of law. To the contrary, Petitioner’s attempt to have the Court extinguish its right of due process, to operate under the intent of Congress as expressed in An Act constitutes violations of the operator’s rights, the mine’s rights and most importantly the miners’ rights guaranteed in An Act, the California and U.S. Constitution.
Petitioner continues to misrepresent the legal issue before the Court. It is not as he argues. It is not whether MSHA is to be tossed aside. It is about whether a small mine (once very active and likely affecting interstate commerce), that has reduced its operation to basic survival created an economic flow of money or influence over trade of mutual states. It has not by every degree of financial analysis. Petitioner has not presented any facts to support those cases he cites in his arguments. He speculates about gold entering the federal or local markets. Even then he misinforms the Court by advocating any unknown sale is from recent production not inventory from decades ago.
Wickard v. Filburn (1942) does not resemble Original Sixteen to One Mine, Inc. Gonzales v. Raich (2005) deals with cultivated marijuana and its use for personal consumption stretched to the argument that the grower would not be buying pot because he could grow it himself. Original sixteen to One Mine, has produced gold. It does not use gold, hoard gold or speculate in gold as a business.
U.S. v. Dye Construction Co (1975) is used by Petitioner to argue that “Sixteen to One falls squarely within the ambit of interstate commerce.” His facts are false. If the boundary of affecting interstate commerce is revenue of less than a dollar to AT&T 2011, then one of his “facts” deserve a hearing. Operating revenue of AT&T for 2011 was $126,723,000. Operator contributed less than one dollar. Citizen Bank cited by Petitioner as evidence of interstate commerce is in Rhode Island. Our Citizen Bank headquarters is in Nevada City, California. All seven of its offices are in Northern California.
Petitioner’s “fact” are mere speculations. He writes of what ifs or potentials not what has or realities. His closing idea of support is that respondent’s position “is solely based on a misinterpretation of a basic and long standing constitutional concept.” He would prefer that the Court look at operator as unable to understand his professional industry and the flow and ebb of legal discourse. Simply put, the issue of whether a “mine’s activities affect interstate commerce is not novel”. It is broader than those words expressed by a solicitor on behalf of the United States federal governments. “Nothing” proves that the times do change and change can be beneficial to miners and the American public. “Nothing” proves that the Secretary is out of step with the intent, language and enforcement of MSHA regulations as it applies to affecting interstate commerce as the recent Supreme Court Decision upholding the Patient Protection and Affordable Care Act by rejecting that this billion dollar legislation was constitutional under Congress’ power “to regulate commerce…among the several states”.
As Chief Justice of the Supreme Court John G. Roberts, Jr. wrote:
“The Constitution grants Congress the power to “regulate Commerce.” Art. I, §8, cl. 3 (emphasis added). The power to regulate commerce presupposes the existence of commercial activity to be regulated. If the power to “regulate” something included the power to create it, many of the provisions in the Constitution would be superfluous….
Our precedent also reflects this understanding. As expansive as our cases construing the scope of the commerce power have been, they all have one thing in common: They uniformly describe the power as reaching “activity.” It is nearly impossible to avoid the word when quoting them….”
Operator, Original Sixteen to One Mine, Inc. is doing nothing to affect commerce at the relevant times of this issue before the Court.
in reply to: 16 to 1 Mine #393in reply to: INTERSTATE COMMERCE AND SMALL MINES #5476INTERSTATE COMMERCE ACT is a law passed in 1887due to a rising concern with the growing power and wealth of corporations, particularly railroads. Revenue, power or greed influenced Congress into action. Sitting here 125 years later and familiar with history, I agree with Congress. An Act that established federal agency Mine Safety & Health Administration (MSHA) was passed in 1977. Sitting here 35 years later and living the mining industry, I agree with Congress.
Two section of An Act define commerce and today is used to imply that the federal government has absolute control over all divisions of mining. I do not agree with MSHA. When federal documents are read thoughtfully it is obvious that today the intent of the authorizing Congresses is ignored. Even a careful reading of case law (stretched beyond credibility at times to keep power to MSHA) Section 4 of An Act established qualifiers in order to give regulatory privileges to MSHA. The phrase is “which affect commerce”. That which affects commerce must be considered in executing the right of control over those in the mining industry. Unfortunately for Middle America and all US citizens over the age of eighteen our government has stepped outside the law. If I could make a citizen’s arrest, Original Sixteen to One would arrest MSHA.
A hearing is scheduled in November to address the issue of jurisdiction. MSHA filed a motion for summary judgment on commerce and its applicability to the operation of Sixteen to One in 2011, when MSHA inspected its property.
This very important topic is yours for the reading. Survival as the small miner has known it for 140 years is at risk… more on that in future entries. Five small mining operations have been shut down recently by MSHA inspectors in our region. None of them affected interstate commerce. All the guys were put out of work. We were attacked with unprecedented regulatory incompetence from March to last week. Our crew worked through the situation but the behavior remains a threat to America and the rights of Americans.
Federal lawyers based in San Francisco initiated the action. The administrative judge is based in Washington DC. Later the case was transferred to Denver to a lawyer who I grew to respect. All of us are just doing our job. A few are just blinded by conservative power: what was in place and needed over a century ago must be kept relevant. Below are emails a gentleman lawyer named Doug and I exchanged. Comments welcomed and more on this subject will come.
FROM MMM on May 25, 2012:
Doug,
Docket 2012-516M has one citation. The inspector’s language is not correct; however it is not a big issue. The elephant in the room is spelled out in my response and is a big issue: commerce and the authority for the federal government to invoke commerce as the justification for inspecting the Sixteen to One mine at the point in time of the inspection. The person that handles MSHA citations is on vacation. I will look more to find the second case you have with the Sixteen to One mine. At some point the elephant must have its judicial right of objection heard through the administrative and judicial system or all citations issued when the Sixteen to One did not meet the actual requirement for MSHA to inspect are withdrawn.My preference should be obvious. MMM
FROM Doug on May 25, 2012:
I understand your objections, and if you choose to argue them in trial, that of course is your decision to make. I am confident that we have jurisdiction, but I will leave it to a judge to make that determination.
As far as settlement goes, if you decide that these cases are not going to be the jurisdictional test cases, I will entertain any offers of settlement that you are willing to make. Thank you.From MM on May 25, 2012:
Why don’t you tell me why you MSHA is confident that it has jurisdiction over the Sixteen to One mine on December 13, 2011? I will appreciate MSHA’s opinion and may believe it is correct. I have read numerous cases set to me by the solicitor based in San Francisco and found none of them to remotely relate to the operation in Alleghany.
FROM Doug on June 19, 2012
Dear Mr. Miller,
I just wanted to follow up on the below email concerning MSHA’s jurisdiction over Original Sixteen to One, and get your thoughts on where we stand on resolving both WEST 2012-516M and WEST 2011-1239M. I am still hopeful that we can resolve these relatively small dockets without too much hassle. Thank you for your consideration.
Dear Mr. Miller,
I attempt below to provide you with adequate case law and analysis as to why Sixteen to One falls under MSHA’s jurisdiction. Regardless, I invite you to put both of these dockets to bed by making an offer of settlement.
Section 4 of the Federal Mine Safety and Health Act unambiguously evidences Congress’ intent to regulate mines to the full extent of its power under the Commerce Clause. D.A.S. Sand & Gravel, Inc. v. Chao, 386 F.3d 460, 463 (2d Cir.2004), cert. denied, 544 U.S. 1048, 125 S.Ct. 2294, 161 L.Ed.2d 1088 (2005). The Commerce Clause grants Congress power to “regulate purely local activities that are part of an economic ‘class of activities’ that have a substantial effect on interstate commerce.” Gonzales v. Raich, 545 U.S. 1, 17, 125 S.Ct. 2195, 162 L.Ed.2d 1 (2005) (citing Wickard v. Filburn, 317 U.S. 111, 125, 63 S.Ct. 82, 87 L.Ed. 122 (1942)) (finding that Congress properly penalizes noncommercial cultivation and possession of marijuana for personal medical purposes); see also D.A.S., 386 F.3d at 463-64 (finding that the Supreme Court has “long held” that Congress may regulate the “activities of an economic actor whose products do not themselves enter interstate commerce, where the activities of such local actors taken together have the potential to affect an interstate market …”).
Courts have routinely held that mines with entirely local sales affect interstate commerce and fall within Congress’s Commerce power. See, e.g., D.A.S., 386 F.3d at 464 (Commerce Clause grants Congress authority to regulate the sand and gravel company that sold product only intrastate through the Mine Act); U.S. v. Lake, 985 F.2d 265, 269 (6th Cir.1993) (small coal mine with entirely local sales and locally-bought equipment found to affect interstate commerce because small efforts combined with others could influence interstate coal pricing and demand).
Here, the Secretary expects that it will be able to offer evidence that Sixteen to One’s product is taken offsite and delivered to customers. You have stated that you produce product for a local market. It does not have to be known how and where your customers use the product. However, because Sixteen to One sells product to customers, even if entirely to local customers, your product could influence an interstate market that Congress properly regulates. Additionally, Sixteen to One likely purchases fuel for its equipment, as well as parts for its equipment, which are manufactured and produced outside of the State of California. We believe that Sixteen to One is subject to the jurisdiction of MSHA and is properly regulated by the Commerce Clause.
Please let me know if you still dispute the jurisdiction issue. If so, I will be issuing extensive discovery demands upon Sixteen to One to show that it is properly regulated under the Mine Act.
Thank you.From MMM on June 26, 2012:
Doug,
The way to resolve these citations is for MSHA to dismiss them. While they appear to be small, they represent a significant interference to our small operation. MSHA has no authority to inspect the current operation. Our goal is to get financially healthy, increase the operation and then evaluate whether our operation is affecting interstate commerce. If it does, which is our desired outcome, the issue of inspection is over. MMMFROM Doug on June 26, 2012:
Dear Mr. Miller,
Thank you for your quick response. Although I appreciate where you are coming from, I must level with you. First, I am not in the position to dismiss these citations, unless you can provide me with some legal backup for your position – I can’t just take your opinion to my client and expect anything in the way of progress. I can, however, take a legal authority that you can cite to me and take it to my client in the hopes of dismissal.
Second, the law is not only somewhat clear, but crystal clear that pretty much any mine, coal, metal/nonmetal, surface, underground, large, small, northern, southern, publicly traded, privately owned, etc…is subject to the interstate commerce clause. That’s not my opinion, or my argument, or even my personal political belief – it is the law. The interstate commerce clause applies to entities which are part of the “chain of commerce” such that even if you don’t sell to clients outside of California, those clients deal with out-of-state vendors and customers, and the parts that you purchase are manufactured by out-of-state (and probably, out-of-country) companies. I invite you to look again at the law I cited to you in my email dated May 29, 2012.
Should you choose not to engage in settlement discussions, that is of course your option, and I do respect your resolve. However, there is simply no possibility that I can dismiss these citations, and we will go to trial, which by necessity will be more costly and time-consuming than the $100 (WEST 2012-516-M) and $1,024 (WEST 2011-1239-M) dockets at issue.
Thank you, Doug SandersFrom MMM on June 26, 2012:
Dear Doug,
My choice to start the administrative process for the determination of this long standing issue occurred a long time ago. Therefore, you can decide if this will be the jurisdictional test case. You client is the advocate and leading edge of the cases before you. Check with your client because if this is the position of the United States Secretary of Labor, let no one claim later that he or she was unaware of the concerns of a small mining operation that has been overly regulated into the point of bankruptcy because it is affecting interstate commerce.
It causes me concern that you, a deputy attorney for a federal agency, has come to such an inequitable position without knowing the “on-the-ground” situation in Alleghany, California that is operated by Original Sixteen to One Mine. Convince me that the legislative intent in commerce passed legislation applies to Original Sixteen to One Mine, Inc. and I will extinguish its opinion that is has been attacked without merit with adequate evidence to convince the board of directors. MMMin reply to: Gold Enters Major Bull Market #5475Gold $1720.50 OFF $21.10
Silver $32.07 OFF $ 0.75Little men in the halls of power are paper-pushing gold lower with elections nearing in hopes of redirecting attention away from what gold has been shouting about their failures.
The games will be quite expensive down the road with the public holding the bag when the piper has to be paid.
It seems we currently have other big players in the game:
Billionaire Investor Giustra Stays Positive on Gold
posted on Oct 21, 12 01:28PM Use the IP Check tool [?]
Sunday, 21 Oct 2012 12:23 PM/marketwatch.com
By Dan Weil/excerpts
Billionaire Canadian investor Frank Giustra, who has been bullish on gold for at least 10 years, is sticking to his guns.
Gold’s appeal lies in the fact that it’s a tangible asset, Giustra says “It is moveable. It is easily transferable across borders in times of crisis. It’s a currency. It’s liquid. It’s easily tradable. I’m a fan of all hard assets, but particularly gold. It’s the largest part of my portfolio, and it will continue to be until this cycle is over.”
Frank joins the ranks of other billionaire gold holders like Carlos Slim from Mexico, the richest man in the world.
in reply to: Water and Arsenic: which came first? #5474Only a small number of the public have been exposed to elemental science as it relates to arsenic, mercury and the earth’s mineral composition. Most only read or hear about toxicity of arsenic and mercury. America’s tax revenue (in short supply) is regularly consumed from fear mongering. The public should be outraged by a gross infringement of morality or decency from the academic, journalistic, political and business predators that grovel in self-serving deceit about these natural elements. For years both found a medical usefulness. Maybe their use was over dosed (read in this subject about HORMESIS dosage and duration). What seems to be lacking throughout our 21st century society is common sense.
Today we posted an article in the NEWS section of this site written by Bob Shoemaker, who lives in our area. Science has disciplines or it would not be called science. Bob is in his 80’s and a person with the background, training and experience to teach us some real stuff about arsenic. I encourage you to click into the NEWS and read about arsenic.
in reply to: Gold Enters Major Bull Market #5473Check out http://www.kingworldnews.com and read the story concerning the LBMA being a Ponzi scheme in a part three interview of a London trader.
The whole Exchange operation is like a casino but when you go to cash in your chips that represent gold and silver you find that the cashier’s vault is empty. The Comex and LBMA today shouldn’t even be called metal exchanges but rather “betting parlors” or “bucket shops.”
The current environment with physical gold and silver is like it was in late 2008 following the financial crisis when the metals were beaten down with paper sales, people wouldn’t sell physical because they didn’t believe the posted prices.
The interview ended with these two sentences: “But we will see a day when silver(as well as gold) can no longer be capped through paper trading and various games being played at the LBMA and COMEX, and in the end, it will be the physical market which will be the deciding factor. At that point you will see the real price of silver for the first time, and it will leave people in disbelief.”
in reply to: Gold Enters Major Bull Market #5472Why can’t one establish an ETF
or an LLP for the purpose of
Holding Gold,ie the “Sixteen to One Mining Exchange Traded Fund”
(For the express purpose of group ownership of Gold. They are doing it in the oil and gas industry. The participants are partners in the operation and enjoy a significant tax advantage. The fields of endeavor are in exploration,
extraction, pipelines, storage
as well as tankers.in reply to: Gold Enters Major Bull Market #5471N.Y. metal changes
Gold $1749.90 UP $1.60
Silver $33.20 UP $0.24A quote from Jim Sinclair today:
“It’s clear that demand for the US Dollar is waning and certainly when national leaders watch a US debate like the performance yesterday they must reinforce their theories significantly that the path our nation is on is one of currency debasement.”
Our job is trying to save and add to our gold
in reply to: Miscellaneous #5470Excerpt today from a Jim Willie letter:
The deadly decline in California state sales tax receipts, down 40% from July 2011 to July 2012, in my view serves as the most deadly of highly visible signposts. The land of rotten fruits and bitter nuts is being racked by gasoline shortages.
in reply to: How to Approach Thin Veins & Cost #5469The definitions of a word used in the general population and the same word is used sometimes differ miners. Exploration seems to work well for efforts to describe an activity … to explore. In talc mining exploration aims to locate the presence of deposits and provides economic nature, shape and degree. Preliminary work in the mine exploration takes place along the strike and dip. This is done by disk, ups and downs. These openings follow the depositary both strike and dip. They are designed in such a way that makes use possibleness for mining exploration event that is favorable.
in reply to: Gold Enters Major Bull Market #5468Gold $1751.40 UP $14.00
Silver $32.99 UP $ 0.29The following is an excerpt from a London metals trader interview recently from kingworldnews.com relating to physical gold:
“We are continuing to see the bids get raised in these markets. This has become a competition for the central banks and sovereign buyers to get rid of their dollars and euros as fast as they can, and swap it for something of real value.
Meanwhile, the bullion banks run the COMEX and they are not stupid. They are going to ring the register on this managed money. The commercials have been doing extremely heavy short covering into the weak-handed longs which have been selling, but they are also covering into fresh shorts from speculators and managed money.
The question now is, where is the inventory going to come from to fill all of these physical orders? The physical market is already tight as a drum. I would be surprised if there is much more downside in this environment. Yes there is this game of the commercials covering into weak-handed longs, and fresh shorts, but there is reality here, and reality is the physical market, and these buyers have moved their orders higher, and will continue to do so.
Remember the old days, Eric, when the Indians would say, ‘I’m not buying at these levels. I will wait for a large pull back.’ Well, those days are gone. The physical market used to be India, and if India was on a buyers strike, the gold market would come down an awful lot in terms of price.
India would just say, ‘We’re the biggest gold buyers in the world, so we will just step back and wait for our price. We will wait for our price because we already have plenty of gold here.’ But now you’ve got too many competing entities all trying to acquire physical gold.
Suddenly China has overtaken India. So India doesn’t have the luxury of sitting back. India is back in the market now. India is back buying in the mid-$1,700s. India was back yesterday. India is back today. They need to buy gold and they are stepping ahead of other entities and becoming a large buyer.
The Indians are not stupid. They know the commercials harvest the weak hands on the COMEX. Once they see open interest get to a certain level, they fully expect a reaction in the price. But your readers have to understand that there isn’t going to be a ‘correction’ this time, there will only be a ‘pull back.’ There is a big difference between a pull back and a correction.
The reasons for this is there are just layers of central bank and sovereign physical buy orders in here right now. Some of it has already been filled. There has been tonnage filled at higher levels than we are currently trading. As soon as we went through $1,760, we started to see central bank buying.
Each layer below current levels there are exponentially larger physical orders. I would also point out that when we have seen smashes in the past from say 2008/2009, the difference this time is that the physical buying is now coming from central banks all over the world. That is what is different this time, and this is why we are not going to see a waterfall decline in the gold market.”
in reply to: Miscellaneous #5467An important quote from Canada’s Prime Minister, Stephen Harper:
“We cannot allow valid concerns about environmental protection to be used as an excuse to trap worthwhile projects in reviews-without-end,”
in reply to: Miscellaneous #5466Sutter Gold cranking up for production:
http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aSGM-2002691&symbol=SGM®ion=C
in reply to: Gold Enters Major Bull Market #5465Gold $1768.80 UP $6.20
Silver $34.09 UP $0.11The following was presented by the contributor Mark at the http://www.agoracom.com’s website under the security forum for PRB:
“Then There Was This. from Zerohedge.com. (one of my fave websites to visit). This is an article posted by the chief investment officer of Guggenheim Partners in New York and Chicago, Scott Minerd, who concentrates on an angle often raised by Jim Sinclair, the (purported) U.S. gold reserve’s “coverage ratio” of the U.S. money supply.
Minerd writes: “The U.S. gold coverage ratio, which measures the amount of gold on deposit at the Federal Reserve against the total money supply, is currently at an all-time low of 17 percent. This ratio tends to move dramatically and falls during periods of disinflation or relative price stability. The historical average for the gold coverage ratio is roughly 40 percent, meaning that the current price of gold would have to more than double to reach the average. The gold coverage ratio has risen above 100 percent twice during the 20th century. Were this to happen today, the value of an ounce of gold would exceed $12,000.
Well, dear reader, my guess currently stands at $18,000 the ounce, so the estimates are getting closer. But if gold only makes it to $12,000/ounce, I’m sure I’ll manage somehow…as silver will be many hundreds of dollars per ounce…and the “new” gold.”
in reply to: Miscellaneous #5464Jim Sinclair’s Commentary
To be right and very patient is the key to making major money in this financial world when playing it straight.
Stealing is the more popular way now used by the Western world financial entities, used by almost every one of them.
To know how to wait. It is the great secret to success.
–Joseph de Maistrein reply to: Gold Enters Major Bull Market #5463Printing Money – Price of Gold – Preservation of Wealth
October 9th, 2012 by admin golds
by Egon von Greyerz – October 20121. Worldwide money printing continues unabated
2. Just In 10 years $120 trillion have been printed making global debt $200 trillion
3. World GDP has gone from $32 trillion to $70 trillion 2001-2011
4. Thus $120 trillion debt is required to produce a $38 trillion annual increase in GDP
5. The marginal return on printed money is negative in real terms
6. Thus the world is living on an illusion of paper that people believe is money
7. This illusionary paper wealth will implode in the next few years
8. The initial trigger will be the collapse of the world’s reserve currency – the US dollar
9. The dollar is backed by $120 trillion of US government debt and probably NO gold
10. All currencies will continue their race to the bottom and lose 100% in real terms against gold
11. This will create a worldwide hyperinflationary depression
12. All assets financed by the credit bubble will go down in real terms
13. This includes stocks, bonds, property and paper money of course
14. The financial system is unlikely to survive in its present form
15. The banking system including derivatives has total liabilities of around $1.2 quadrillion
16. With world GDP of $70 trillion, the world is too small to save a financial system which is 17x greater
17. This is why there will be unlimited money printing and hyperinflation
18. The only asset that will maintain its purchasing power is gold Click here for chart
19. Gold has been money for 5,000 years and will continue to be the only currency with integrity
20. Western countries’ 23,000 tons of gold is probably gone. See recent article by Eric Sprott.
21. The consequence is that most of the gold in the banking system is likely to be encumbered
22. This means that Central Banks one day will claim it back against worthless paper gold IOUs
23. Thus gold and all other assets within the banking system involve an unacceptable counterparty risk
24. Gold should be held in physical form and stored outside the banking system
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