As the editor of the Silver Bear Cafe, I spend most of my time researching current events. I explore the markets, the economic war that is being waged on the middle class, precious metals, the Federal Reserve, energy, and how to go about surviving financially. In this weekly column I will attempt to condense the week's events and examine how the news might affect your pocketbook. JSB

Financial Markets

There was a time when the earth was populated by a bunch of tribes. A tribe is a self nurturing, self sufficient entity. A tribe is a naturally balanced, healthy cultural group. By examining the oldest tribes still existing, we find that they have no need to invent new laws, as the laws necessary for tribal order have been passed down, through generations, from the elders. If they were to persevere, they would have had very healthy, self serving tenets that have successfully provided for the well being of individual tribe members for thousands of years. Most of the cultural problems we currently face stem from energies being applied, by those who would be kings, to force us to assimilate. Assimilation is the manner by which most tribes, throughout modern history, have been eradicated. They have been eradicated by the same people working towards the same goal.

Assimilate into what? The answer to that question provides the source of the problem. Instead of calling it the "the Dark Side", let just call it "the BORG". The forced assimilation of all cultures, into one culture, rings of Star Trek.

The Borg are without question one of the most fearsome and relentless forces in the Milky Way galaxy. A massive society of cybernetic automatons abducted and assimilated from thousands of species, the Borg Collective is intent on achieving "perfection" by spreading its influence into every corner of space, consuming technologies and individuals without conscience, obliterating entire civilizations in its wake. And it has a particular interest in incorporating the human race into its "Hive." - Captain Jean Luc Picard, U.S.S. Enterprise-D

Who is forwarding this inane agenda? It is the work of the Collectivists, the One Worlders, the New World Order. Their quest for world domination, has unbalanced the world, and all its inhabitants as well. The forced cultural diversification of our country has rendered us tribal-less. Forced cultural diversification is the scourge of individualism as it strips us of our tribal vitality. It is designed to cause the gradual elimination of all Collectivist opposition. We, as a group, have lost concern for tribal nurturing. We, as individuals, are losing our support groups. Without our support groups, we are alone and helpless. We have been unknowingly led away from any rational balance. When the chips are down, socialists don't tend to be either willing or or even capable of "covering your back".

I believe that the powers that be have employed their ability to invent money by using its corrupting influence to cataclysmically screw things up. They have, with the help of their bought and paid for acompli, screwed it up so bad that it won't be easily fixed. I have always believed their plan was to casually strip up of all our liberties before they pissed us off. They have been doing a pretty good job of stripping us of or freedoms and liberties for years, and no one seems to have minded very much. After all, they successfully debased our currency and pocketed the difference, entwined us in a mire of disputes all over the globe and managed to get the whole world pissed off at us, strapped us with untenable debt that will eventually enslave our offspring, dismantled the Bill of Rights through Patriot Acts One, Two, and soon to be Three, are currently scheming to rob us of our retirement by hijacking social security, and still we re-elect them. Apparently, they haven't pissed us off enough for anyone to do anything about it.

One of the most damaging side effects of this perverted quest has been the dismantling and subsequent destruction of capitalism and our economy along with it. There remain, no free markets, anywhere. There are bozos and morons running the show with an ever growing constituency of bozos and morons scrambling for the crumbs their moronic zoo keepers toss their way. We, my dear readers, have become a distinct minority. Given that I can't even wake up my friends and family (I suspect you know what I mean) I have little hope for derailing the leviathan before a great reset is necessitated.

The irony of all this is that, no matter what it looks like now, collectivism is destined to fail. The same song, second verse, is provided, this week, through the insights of Martin Armstrong.

From Martín Armstrong:

An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that Obama's socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, "OK, we will have an experiment in this class on Obama's plan".. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all).

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that.

On the Economic War Front

As the realities of the abomination which is the Affordable Care Act (Obamacare) continue to unfold, it becomes increasingly apparent that it has little to nothing to do with health care, and very much to do with wealth transfer through the collection of undue and unwarranted taxes.

But, I think, there is something much larger and more insidious at work in the shadows of all this brew ha ha. Obamacare is going to screw almost everybody. It will force kids, who really don't need health insurance, to pay for it anyway. Young people, who were, in great part, responsible for election of our "chief moron, what's in charge", are being disenfranchised and, when the smoke clears, will turn on their fearless leader, and drop him like a toilet seat.

Perennial liberals and other left leaning hangers on will also feel the brunt of this unconstitutional and thereby illegal legislation. I mean, after all, they have money too, and the Obama Administration wants it.

I believe this is shaping up to be a standoff between those people, no matter what their political ideology prescribes, who make money, and will, thereby, be relieved of it, to pay for some substandard version of "health care" designed to, alledgedly, benefit those that don't make any money, and contribute little or nothing to anything (worthless eaters). The extremely wealthy are not involved or concerned. They can afford real health care, which is provided by physicians that have, long ago, opted out of the health care system, which was already a scam. Politicians also have received "immunity " from having to roll up their sleeves and bend over, like the rest of us. Poor people have a very little to gain, for nothing, After all, what do you want for nothing, your money back? The only ones who will find true value in this program are the pharmaceutical companies and insurance companies whose bribes to congress, via lobbyists' donations will provide a spectacular return.

From James Howard Kunstler:

The ObamaCare website rollout fiasco, joined by the bait-and-switch "You can keep your current insurance (not)" tempest, obscure the fundamental quandary about so-called health-care in America: that it is a gigantic racket structured to allow countless layers of grift and counter-grift. The end product of all that artifice is that medical care costs twice as much in America as any other civilized country, and that it has to be operated by a cruel and despotic matrix of poorly coordinated bureaucracies that commonly leave people more disabled financially than the diseases that brought them into the system.

ObamaCare was designed to work like a giant roll of duct tape that would allow the current cast of characters in charge (Democratic Progressives) to pretend that the system could keep going a few years longer. But it looks like it has already blown out the patch on the manifold and is getting ready to throw a rod — which duct tape will not avail to fix.

I had three major surgeries (hip, open heart, spine) the past year and paid attention to the statements that rolled in from my then-insurer, Blue Shield (the policy was cancelled in October). These documents were always advertised as "this is not a bill" and that was technically true, but it deflected attention from what it really was, a record of negotiated scams between the "providers" (doctors and hospitals) and the insurance company.

There was never any discussion (or offer of discussion) of the cost of care before a procedure. When asked, doctors commonly pretend not to know what their work costs. Why is that? It's not to spare the patient's feelings. It's because sick people are hostages and both the doctors and the hospital management know they will agree to anything that will get them through the crisis of illness. This sets up a situation that allows the "providers" to blindside the patient with charges after the fact.

Precious Metals

As I watch the epic battle between good and evil, which plays out everyday on Kitco's gold and silver charts,, I can't help but wondering, when will the manipulation end.

I heard Jim Sinclair in an interview with Greg Hunter last week. During the interview, Mr. Sinclair announced that he would be participating in the Singapore Gold Exchange as Chairman of the Advisory Committee. The Singapore Gold Exchange will deal exclusively with physical bullion. It will not be a futures exchange and thereby not a "paper gold" market.

As a result of the availability of a physical bullion exchange, I anticipate that the price of gold will accend to its rightful place, pricing wise, in the near future. Mr. Sinclair refers to this event as "the emancipation of gold". He suggested that the exchange would be operational early next year.

I think that the advent of an honest precious metals market will, initially, usher in a gold price exceeding $2500 per ounce. I also believe that silver will regain its historical ratio to gold which is 16 - 1. $2500 gold equals $156.25 silver. James Sinclair went on to predict that "emancipated gold" will trade at $50,000 per ounce. $50,000 per ounce gold equals $3125 per ounce silver. I have heard it said that there will come a day when you will be able to buy a very nice house for 100 ounces of silver. By the way, silver is currently on sale.

From Michael Lombardi:

In the first 10 months of this year, the U.S. Mint sold 39.2 million ounces of silver in coins.

In the same period last year, the Mint only sold 28.94 million ounces of silver in coins. A general negativity by investors surrounding silver this year has not stopped people from buying silver coins. In fact, demand is up 35% so far in 2013. (Source: U.S. Mint web site, last accessed November 1, 2013.)

Meanwhile, if I look at the chart of the gold-to-silver ratio—which shows how much silver is needed to buy one ounce of gold bullion—silver prices look undervalued. (I've posted the chart for my readers below.)

At present, it would take 60 ounces of silver to buy one ounce of gold bullion. The 200-year historical average is 37 ounces of silver to buy one ounce of gold bullion. (Source: Market Watch, July 19, 2013.) If we go back to the historical average, and we eventually will, silver prices would have to rise to $35.00 an ounce given the current price of gold bullion.

And if we look at the "natural gold-to-silver ratio," that's the amount of silver in the earth's crust compared to gold, then the ratio is 17 to one. Yes, in that case silver would have to increase in price to $77.00 an ounce!

The more realistic picture, dear reader, is for silver to go back to its record high reached in April 2011 of $48.70 an once—that's more than twice the current price of silver.

Since silver prices fell this spring, silver producers don't have much incentive to explore for more silver—they have started to cut back on their production. So supply is soft for silver, demand is rising, and investor sentiment is very negative—the perfect scenario for silver prices to start rising again.

It's also very interesting to note that for gold bullion prices to get back to their peak of $1,900 an ounce, they would have to increase 44% from today's gold bullion price. But for silver prices to get back to their peak of $48.70 an ounce, they would have to rise 132% from today's prices. Silver prices have been much harder hit than gold prices—and that tells me silver has more upside potential.

Energy

Here comes the helicopter -- second time today
Everybody scatters and hopes it goes away
How many kids they've murdered only God can say
If I had a rocket launcher...I'd make somebody pay

If I Had A Rocket Launcher - Bruce Cockburn

Those that read me regularly may be familiar with a recent rant I posted concerning the second amendment. In that commentary, a couple of weeks ago, I suggested that:

"The Second Amendment was intended to allow citizens the right and opportunity to defend themselves with equally formidable weaponry as might be used against them. It is unconstitutional. then, to prohibit the citizenry from possessing military grade arms, including fully automatic weapons, rocket launchers, grenades, mines, drones, anti-aircraft weapons, F-16s, nuclear submarines, hydrogen bombs or any other kind of weapon that some power mad maniac might see fit to use against us."

There are those that might interpret that sentiment as, somewhat, sensationalist. To those readers, I respond "drastic times call for drastic measures". While I speak of drastic times, I feel compelled to remind you of the paramount need we all have to be able to accurately recognize and define the enemy.

On June 6, 1972, acting Secretary of the Treasury, and former Vice President and Economic Advisor to the president of the Federal Reserve Bank of Dallas, Charles E. Walker signed Treasury Order Number 120-01 which established the Bureau of Alcohol, Tobacco and Firearms. He did this with the stroke of his pen, citing "by virtue of the authority vested in me as Secretary of the Treasury, including the authority in Reorganization Plan No. 26 of 1950." Mr. Walker was acting on the behalf of the banksters, not the people. His motive was to more greatly enable the fleecing of the citizens through bogus taxation. This was certainly not the act of a Treasury Secretary, acting on the behalf of Americans. He was not constitutionally authorized to issue such an order. In spite of the illegal nature of this turpitude, he ordered:

...the transfer, as specified herein, the functions, powers and duties of the Internal Revenue Service arising under laws relating to alcohol, tobacco, firearms, and explosives (including the Alcohol, Tobacco and Firearms Division of the Internal Revenue Service) to the Bureau of Alcohol, Tobacco and Firearms (hereinafter referred to as the Bureau) which is hereby established. The Bureau shall be headed by the Director, Alcohol, Tobacco and Firearms (hereinafter referred to as the Director). The Director shall perform his duties under the general direction of the Secretary of the Treasury (hereinafter referred to as the Secretary ) and under the supervision of the Assistant Secretary (Enforcement, Tariff and Trade Affairs, and Operations) (hereinafter referred to as the Assistant Secretary)."

I have never quite understood the legitimacy of the BATF (Bureau of Alcohol, Tobacco, Firearms and Explosives) or what business it, or the government, has in the production and sale of alcohol, tobacco, or firearms. The BATF is a division of the IRS. It is really not part of the government, but rather, along with the IRS, a support group (read in: collection agency) for the Federal Reserve. It's all about the collection of unconstitutional taxes to pay the unconstitutional interest on the illegal and unconstitutional (isn't that redundant) loans that the Fed makes to the government.

When I came across the following report I was heartened to find that the powers of technology may provide the counter balance to the evil which seem to be making increasing in rows in America. How about a 3d printed version of a Colt Model 1911 semi-automatic pistol...

From David Szondy:

In a prime example of past meets future, a Texas-based company has used a century-old classic firearm as the blueprint for the world's first 3D printed metal gun. Solid Concepts' use of a laser sintering method to create a fully functional Model 1911 automatic pistol is the latest demonstration of the potential of 3D printing techniques in industrial processing.

3D-printed guns aren't new, but most of those produced until now have been made of plastic. They may have given law enforcement and gun control advocates the hives, but at the end of the day they appear to be nothing but overpriced zip guns that are more dangerous to the shooter than the target. Some companies have produced metal gun components, but, to date, that's as far as it's gone.

It's ironic that Solid Concepts, one of the world leaders in 3D printing services, chose the 1911 45ACP for its model. The pistol is a classic and has long been a favorite of armies, law enforcement, shooting enthusiasts, and pulp fiction artists, but what made it stand out is that when it was designed by John Browning, he made the layout of its working parts two dimensional. In fact, he sorted out the arrangement by using cardboard cutouts of the parts on a table top. Its classic nature, and its design being in public domain, attracted Solid Concepts.

The Fed

How many of your close associates, family and friends are still asleep? How often do you wonder and worry what might happen if their lives are suddenly turned upside down as a result of the coming reset. Do you ever wonder whether or not you might be over reacting and the state of the world is not near as dire as you seem to make it out to be?

Most of the fine folks that frequent and peruse the offerings of the Bear's contributors are not looking for answers. They may be in the process of discovery, but already know, basically, what is happening. Rather, they are seeking affirmation. I try diligently to re-enforce the awareness of just how screwed up everything has become, and also attempt to initiate a discussion concerning the choices we might have as far as protection and preparation.

The process of our group emasculation has been going on for a long time. Up until the relatively recent "internet reformation" we were not able to, easily, recognize just how we were being screwed. or why, or by whom. It remains uncommon knowledge. The majority of the citizens in the U.S. still think that the Federal Reserve is a part of the government. They think, as was discussed above, that the IRS, and the BATF are part of the government. The thing that these agencies do have in common is that they are all owned by the same people. The government, the Federal Reserve, the IRS and BATF, the IMF, the BIS, the UN and NATO are all owned and controlled by the same, small group of people. In order to achieve this feat, they have been forwarding their collectivist agenda for many, many years.

The collectivists believe that only they are smart enough to govern and rule the world. They also believe that only they deserve to control the resources of the earth, including fresh water. They believe that there are far too many people on the earth. On that last note, I tend to agree with them. I believe that the population of the earth has been, in the last 100 years, unnaturally increased for very some nefarious reasons. The reasons are not germane to this discussion, although I would be happy to approach the subject in another post, if anyone is interested.

The collectivists, have, by hook or by crook, attained a position whereby they can invent money. With the ability to make it, comes the ability to take it away. Until this situation is rectified, the rest of us will forever be slaves. The first step in the rectification, it seems to me, is to be aware of what is happening. You must be awake. If you snooze, you lose.

From Wayne N. Krautkramer:

The snooze button; what a great invention. When you have awakened from a deep sleep, and know you can get ready in less time, just hit the snooze button. You know it will still awaken you for your test or to get ready for your 8:00 flight, but in the meantime, you can enjoy a few more moments of precious sleep.

However, if you keep hitting snooze and fail to look at the time, you can also awaken to find that the extra sleep has now placed you in a position where you missed the final exam or your flight. The rewards for a few extra moments of sleep have suddenly become very costly.

Since the largest collapse of financial assets in history in 2008, the major central banks in the world, the Bank of Japan, The People’s Bank of China, the European Central Bank, the Federal Reserve, and the oldest of this group, the Bank of England, have worked together to create the largest asset bubbles ever seen while keeping the public in a perpetual state of blissful sleep. The method is actually quite simple.

Financial Survival

As a refreshing diversion to my, usually, doom and gloomy diatribes, I decided to feature Paul Rosenberg's missive extolling the inimitable nature of the American Spirit. I, wholeheartedly, agree with his assessment.

We as a people, or at least the three percent of us left that represent the American Spirit, are intractable, stubborn, self righteous and tenacious. We are well aware of the differences between good and evil, can readily recognize both, and will not be deterred from our self appointed mission which is to insure that Truth, Justice and the American Way prevail.

Our present administration continues to provide one abomination after another that we are, ideologically, forced to deal with. We get no help from our representatives (we really don't have any) what-so-ever. The Affordable Care Act (Obamacare) is, perhaps, the most ambitious attempt yet, at one more tyrannical shit storm. The underlying intentions of the act have been, to date, successfully kept out of the public eye. This will soon change when the real motives start being felt in everybody's pocketbook.

From Paul Rosenberg:

In the early Middle Ages, the Vikings wrought havoc on the British Isles. They plundered wherever they wished, extorted astonishing amounts of silver from the kings of England, and never suffered a serious defeat. They conquered, clearly and definitely.

But a funny thing happened to the Vikings over time – they became Englishmen.

The Vikings started as a wild band of pagan destroyers and thieves, and ended up, in a fairly short span, as Christian British farmers.

Why did they make this change? Because the English way of life – English culture – was far more attractive than a life of frozen oceans, killing, and drunkenness.

The Vikings conquered militarily, but they were defeated culturally.

The same thing is happening to Obamacare in America: It conquered politically, but it will fail culturally.

Culture trumps conquest, whether it be the conquest of arms or the conquest of politics.

Obamacare will fail because Americans expect to choose, and to change their choice when they want.

When Americans want a different doctor or hospital, they expect to get it. If they don't, they'll break the rules: either they'll bribe people to get what they want, pay for political favors to get what they want, go to the black market to get what they want, or start taking over hospital administration offices. (I fear that there may be a few shootings too.)

American culture expects choices; it is built for individual changes, not collective changes. This is in the DNA of the culture, and no matter which political gang controls the levers of rulership, the culture will not simply follow.

Whether in one way or many, sooner or later, Obamacare will fail. American culture is not dead yet.

You must first realize that there are, present in our lives, enemies. You must then know who those enemies are and act accordingly.

Eliminate as much debt as possible, especially “variable rate” debt, such as credit cards and lines of credit. Interest rates will be rising, so the elimination of debt offers a “real return” of escaping rising rates by creditors.

Get some control over some fresh water.

If you are depending exclusively on Social Security, stop.

Follow the course opposite to custom and you will almost always do well...

Its not what you don't know that will screw you up, it's what you think you know that is wrong. The spin you hear from the mainstream media is intended to mislead you. Open your eyes and face the future. If you leave your head in the sand and ignore it, you are only leaving your butt exposed for the world to kick. This all may sound like gloom and doom, but when you get a handle on what is going to happen, you will have a future filled with opportunity. Fortune favors the Informed.

More next week...

May the Great Spirit be with you always,

Johnny Silver Bear
Chief cook and bottle washer, The Silver Bear Cafe

Disclaimer

All statements and expressions are the sole opinions of the editor and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The staff of Silver Bear Cafe are not registered investment advisors and do not purport to offer personalized investment related advice. The publisher, editor, staff, or anyone associated with, or associated to the Silver Bear Cafe may own securities mentioned in this newsletter and may buy or sell securities without notice.