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 and energy. 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

I am so relieved (LOL). The self absorbed, would be, masters of the universe (our "inside the beltway" House and Senate representatives) have saved us from plummeting off the Fiscal Cliff, whatever that is. I have made a point to ask everyone I know if they understand what the Fiscal Cliff is, to a resounding No. If there really was a budget, it would have run out long before now. What would happen if there was no money left to pay the ludicrous salaries and perks of our failed federal government representatives. Would they stick around and try to continue to perpetrate the myth of their existence, or would they pack up and go home? And if they did leave, what difference would it make? Would it be better or worse?

They did manage to pass an additional year of unemployment benefits for those who have been out of work for the past 4 years. Where does this money come from? In order to insure that they would continue to receive their paychecks, they also raised taxes on everyone from $50,000 and up. There are now 128 million Americans on the federal government's teat. Why does that bother me? Why should it bother you? Might it be because we are the ones that are paying for it?

From Darryl Robert Schoon:

It’s going to get better; but, first, it’s going to get worse -Time of the Vulture, 3rd ed. 2012

When I presented Time of The Vulture: How to Survive the Crisis and Prosper in the Process to the Positive Deviant Network in March 2007, the economic collapse hadn't ’yet happened. The next year, it did.

At the time, I suggested those in attendance shed debt, sell their homes and buy gold. Then, the US real estate market was functioning without direct government aid, gold was $650 per ounce and the financial system was stable.

Those days are gone and are never coming back. The imbalance between credit and debt that occurred during the Great Depression is now back; but, today, the à la 1930s massive deflationary collapse will be accompanied by monetary disorder on a cataclysmic scale.

On the Economic War Front

The issue of the 2nd Amendment has resounded time after time since the founding of our country, but no time in our history has the level of the din exceeded its current level. The Pilgrims and other one worlders have been so successful in their dumbing down campaign that last week a newspaper in New York took it upon themselves to publish the names and addresses of all gun owners in two counties.

A newspaper in New York has received a wave of criticism from its readers after publishing the names and addresses of all of the individuals with handgun or pistol permits in its coverage area.

This insane, unlawful invasion of privacy on the part of the publishers of The Journal News is just one more sign that our country is rapidly moving towards civil disunion. This unmitigated act of criminal malfeasance should not, in my opinion, be allowed to go unpunished. I do not need to cohabit with a bunch of mislead, dumbed down sheeple whose only toady desire is to serve their Orwellian masters. I personally, could get along fine without the repressive, draconian legislation that causes126 million Americans to require financial aid. And if that means no government at all, then so be it.

From Jon Rappoport:

The first thing I want to hear Obama say about guns is what I'd expect from any rational person:

"Here is where gun murders are occurring in the United States. Look at this map."

Yes, let's start there. I mean, if we were heading up a campaign to stop gun murders and gun maiming, wouldn't we do that?

Let's see where all this gun violence is happening. Is it on Western ranches? Is it in the desert? Is it in the Everglades? On Mt. Whitney? In Scarsdale? Shaker Heights?

Gangs! That's a good place to start, wouldn't you say? Especially since gangs can obtain guns whether or not they're legal. So no new law is going to stop them from what they're doing.

(Editor's Note: The St. Louis youth gang homicide rate is 1,000 times higher than the U.S. homicide rate. - S.H. Decker and B. Van Winkle, Life in the Gang: Family, Friends, and Violence, New York, NY: Cambridge University Press, 1996. - JSB)

If Obama really wants to solve the problem of gun violence, why doesn't he say anything about gangs?

Why doesn't he say anything about New Orleans, Chicago, Baltimore, Detroit, Philadelphia, and St. Louis?

Is it because he's not trying to solve gun violence but only gun ownership? Is ownership what's really bothering him?

And then I want to hear him say this, too:

"A father is home at night. An intruder breaks in. The father is armed. To defend his life and the lives of his family and his property, he has every right to shoot the intruder.

"If he does that, if he shoots the intruder, he's a good father."

This is what I want to hear from the lips of the president, just to make things clear, just to set the record straight. No equivocation.

I don't want to hear anything about calling 911 or waiting for the police. I don't want to hear anything about turning on the lights or inspecting the safety on the intruder's gun to see if it's engaged.

Precious Metals

As reader of "the Bear" you realize that, I believe that the Precious Metals Markets are being manipulated with the complicacy of the federal government and the federal reserve. We know why the federal reserve would want the price of PMs to remain constrained by felonious manipulation, they hate the competition. But who else has skin in the game?

The following is an excerpt from my 2004 investigation.

From Yours Truly:

In an attempt to continue to purvey the "big picture" in the silver market, here are some interesting facts for your consideration.

Silver is as important a strategic commodity as oil. The need for a supply of silver in times of war is so essential, that a shortage of the metal could pose dire and direct consequences to the continued well being of our country. With the evolution of technology, silver has become so intrinsically important, that a lack of it will adversely affect America's national security. Meanwhile, as a result of the collusion between industrial users, central bankers, the Commodity Futures Trade Commission, (CFTC), the Chicago Board of Trade, (CBOT), and government regulators, spanning the past fifty years, inventories have all but disappeared.

How and why have our silver reserves been so radically depleted? The major causal factor for the growing scarcity of silver in the United States is an organization called the Silver Users Association, (SUA). This group was founded in 1947 for the sole purpose of controlling the price of silver, and has since manned a small army of lobbyists. These lobbyists represent some of the biggest corporations in the country. As the industrial uses for silver are quite diverse, so are the types of companies that engage the services of the SUA. It is their job to lobby politicians and persuade them to suppress, depress, repress, oppress, or do what ever it takes to maintain a grip on the price of silver. The SUA coordinates campaign contributions between association members and the complicity of politicians in return for quasi-legal legislation designed to keep the price down. It does not matter to them whether the means of suppression are legal or illegal, so long as the price does not rise.

The chief purpose of the Silver Users Association, when it was formed 54 years ago, was to lobby and convince the US Government to dispose of its immense stockpile of silver, as much as 4 billion ounces of silver, at as favorable a price as possible. Of course, when I say "favorable", I'm talking about as low a price as possible to the members of the SUA. The prices were decidedly "unfavorable" to the owners of that silver, the citizens of the United States. But, in any event, the SUA was successful beyond imagination. In my opinion they conspired to hold down prices and that's an anti-trust violation. The SUA achieved an almost impossible feat. They made off with the world's largest known stockpile of silver. Let's see - the US Government had billions of ounces of silver the year the SUA was formed, and 54 years later, the US announced it would have no silver left this year. That is truly remarkable. And the best part (or worst part, if you are a regular citizen) is that the SUA got a real "steal" of a price on that silver, roughly one dollar an ounce. Slick and successful would be mild words when judging the accomplishments of the Silver Users Association. So would price fixing. - Taken from Ted Butler's 2001 essay entitled"Silver Users, Silver Abusers"

SUA members include corporations like Eastman Kodak and Polaroid who use great quantities of silver for the production of film. Obviously, the price of silver plays an important role in their bottom lines and it is of great advantage to keep the price of silver as low as possible. Other clients include Lockheed Martin, Raytheon, General Dynamics, American Superconductor, and Intermagnetics General who use even greater quantities of silver for the production of super conducting cables, missiles and torpedoes. All companies that produce electrical components for use in weapons, high tech aircraft, fighting vehicles, ships, communication devices, almost everything that has to do with the war machine, depend heavily on silver.

An interesting thing to point out is that when a missile or torpedo explodes, as much as 1400 ounces of silver is vaporized. This is one of the industrial reasons why the above ground stockpiles of silver have already been depleted to the point of scarcity. The artificial capping of the price of any commodity is not unlike the insertion of a huge cork in a volcano. This can result in nothing less than the massive explosion of its price in the immediate future.

Members of the SUA also include Union Carbide, Dow Chemical, Du Pont, Goldman Sachs, and JP Morgan Chase. Why would Goldman Sachs and J.P. Morgan Chase be members of an organization whose sole purpose is to suppress the price of silver? Well, from a central banker's standpoint, a worldwide recognition of the superiority of silver, as money, over their "funny money" would be a disastrous occurrence. Am I singing to the choir here?

The Federal government, apparently to make the paper dollar appear worth more than it is, allows artificial price depressive tactics aimed at silver and gold---Constitutional money. When Federal regulators default on their duties, it is up to state officials including you to take action. If anyone attempted to sell short 22 times the number of Ford Motor shares in existence, the SEC would lock that person up for 200 years. Yet, in silver, the CFTC allows such insanity. Such insanely huge and totally un-backed short positions cannot help but have the effect of smashing the price to the ground, a situation on the COMEX complained about by high-ranking Mexican and Peruvian government officials as far back as 1971 (see New York Times, June 10, 1971, page 67, and June 21, 1971, page 42). Producers are cheated of fair prices for this commodity, and thousands are out of work because of this and central bank silver "leasing." Taken from a letter written by Charles Savoie to Drew Edmondson, the Oklahoma State Attorney General, on September 29th, 2003.

Again let me state, the radical depletion of our country's strategic silver reserve and the incessant, illegal action of the naked COMEX shorts who routinely sell 22 times more silver than is available for delivery is illegal, abhorrent, and reprehensible.

Common gambling, so-called, was a crime. The gambling of the exchanges was legitimate and legalized, and the men who thus gambled with the resources of the nation were esteemed as highly respectable and responsible leaders of the community. For a penniless man to sell anything he did not own, or which was not in existence, was held as a heinous crime and was severely punished by a long prison term. Gustavus Myers in History of the Great American Fortunes (1907) page 303

From Silver Strategies:

It may also be the case that bullion banks with large concentrated short positions are using the pretext of the Federal Reserve minutes to manipulate the price lower - both to profit and to allow them to close out their significant short positions at more advantageous prices and possibly even go long.

"Fed trying to suck and blow at the same time. This was an effort to bomb real assets. It will fail ," commented Eric Sprott from Sprott Asset Management on a phone interview.

Energy

About 80 percent of the gasoline consumed in the U.S. is blended with ethanol, primarily with a 10 percent mix of ethanol, generally derived from corn.

The use of a grain which is as oil and nutrition rich as corn is for the production of ethanol is insane.

A world wide food shortage has been exacerbated by the rechanneling of corn crops to ethanol production. Riots in India, Mexico, Italy and throughout the Middle East have erupted as the price of corn has skyrocketed.

The use of ethanol in your car does irreputable damage to your engine and produces far less efficiency and milage.

The only people that benefit from this moronic activity are the share holders of big Agra (Archer Daniels Midland and Monsanto, et al).

Politicians are eager to pass ethanol positive legislation in return for the bribes they receive from their corporate benefactors. Now Kate Sheppard writes that the Environmental Protection Agency has approved a new policy that will allow states to raise the blend to up to 15 percent ethanol (also known as E15), approved for use for cars and light trucks from the model year 2001 and later.

A few weeks ago, AAA issued a statement saying that the EPA's new policy creates the 'strong likelihood of consumer confusion and the potential for voided warranties and vehicle damage.'

From Fox News

The Fed

My main intention , when editing articles and essays for the Fed Forum is to expose the Federal Reserve for what it is and has always been: a criminal crime syndicate.

The Federal Reserve constitutes the the single largest problem in the entire world. They, along with all other central bankers, are a pox on humanity.

We have posted over 5000 articles which lend credence to this issue. Until we abolish the FED, prosecute and execute the criminals that run it, and then dig up their dead predecessors and hang them, our country will remain perilously close to futureless.

From Raul Ilargi Meijer:

The US won't hit the debt ceiling. All the stories already doing the rounds about the 14th Amendment or a platinum trillion dollar coin serve only to dress the windows so much you can't see what's going on behind them. And to put rich food on the media table. Can you imagine the amount of advertising revenue they would miss out on if these three events could not be presented the way they are, as tight races that decide everyone's future? The only alternative for them would be to invent stories out of thin air. Imagine that.

The trillion dollar coin or some other kind of silliness may still happen, but it doesn't matter, since none of it will change the reason it's contemplated in the first place: the debt that resides below the one inch layer of veneer. Or the one inch and a trillion dollar coin thick layer, if you will.

There is no debt ceiling issue simply because the GOP, even if it would want to show its muscle by drawing the country into that fight, has no such muscle. At present, they're just a bunch of unguided missiles looking so desperately for a target they forget to launch in the first place. While the Democrats are the outer layer of a slick bank machine built to always and on every transaction give back less than you and everyone else put in. A quasi-perpetual money maker that they’ll keep running as long and as far as they can. The golden egg at last.

The only thing you can really be sure of is that the debt ceiling non-crisis will be averted with measures that will cost you dearly. The fear of the debt ceiling that has been instilled in you will be used to further strengthen the grip of the financial industry on society at large. The adagium is to never let a good crisis go to waste, and if there is no crisis, you create one.

And in case it wasn't clear yet: all the hullaballoo from crisis to precooked crisis serves to hide an infinite number of other, real, crises. Like, where's the media attention for the reports about the FBI, Homeland Security, the Joint Terrorism Task Force, the Naval Criminal Investigative Service, the Domestic Security Alliance Council and the Federal Reserve all teaming up with Wall Street banks to bring down the Occupy movement?

Still, most of all what this crisis to crisis circus seeks to hide is a fast deepening financial disaster, even as no-one has been persecuted or gone to jail. And as we speak, banks sign off on more foreclosure fraud with mere fines, while at the same time managing to have regulators loosen more rules such as the Basel ones, intended to make sure any next crisis would be less severe. In other words, absolutely nothing has been done or is in the process of being executed to smoothen the effects of the financial meltdown on Joe and Jane. Quite the opposite, they are set up to pay up for the damage the bank owners and their lackeys have suffered. And the media faithfully report an economic recovery. Just for good measure.

America, you're being punked.

Financial Survival

This week we posted Mr. Charles Savoie's outstanding exposé of the Pilgrim Society, an organization that has been conspiring to rule the world for over 100 years.

Are you interested in protecting your ownership rights in precious metals? It is not only your ownership of precious metals that is at stake, it is the whole idea of private property that is at risk. Private property is one of the most important corner stones of a free society. Without it, we will be rendered serfs again. Our freedoms are currently under more adverse pressure than anytime in history. If you can understand that fact then please read this piece. Take weeks to check out the documentation if you dispute it, and do everything you can to encourage the widest possible readership for it! This Mephistopheles and his associates and successors must be stopped from using the President to seize metals!

Ted Butler, the most widely followed silver commentator, has often said to buy and hold physical, because that puts you beyond COMEX rule changes. That's correct! However, there remains an immeasurably more insidious, far reaching entity that can change rules - Uncle Sam, and he's tightly in the grasp of the same forces who've depressed silver for generations. Uncle Sam nationalized gold and silver in the Franklin Roosevelt administration; this is subject to a repeat! Now that the price can't be suppressed, what's next? FORBID OWNERSHIP! You have hours for professional sports and Oprah Winfrey; how about some time for your property rights, without which you can go broke? Whether the excuse cited is North Korea, the Middle East or other, the actual reason is to break us and prevent capital formation on our part! Please read and act on what follows.

From Charles Savoie

"Cecil John Rhodes," The American Monthly Review of Reviews, New York, May 1902, pages 556-557 describes the life's work and globalist ambitions of South African diamond cartelist Cecil Rhodes, a man financed both by The Crown and the Rothschilds, out of whose wills came the subversive Rhodes Scholars, the Royal Institute for International Affairs in London, the Council on Foreign Relations in New York, and others, all under the concealed supervision of the controlling organization - The Pilgrims of Great Britain and The Pilgrims of the United States, the hidden Senate of the transatlantic super-rich, founded in 1902 and 1903, respectively, drawing into itself the prominent "robber baron" dynasties of the 19th century and the financiers of the centuries old British Empire. Their last ace in the hole for global control is the United Nations, and if it fails, they fail.

"It would have been better for Europe if Napoleon had carried out his idea of Universal Monarchy; he might have succeeded if he had hit on the idea of granting self government to the component parts. Still, I will own tradition, race, and diverse languages acted against his dream; all these do not exist as to the present English speaking world, and apart from this union is THE SACRED DUTY OF TAKING THE RESPONSIBILITY OF THE STILL UNCIVILIZED PARTS OF THE WORLD. The trial of these countries who have been found wanting - such as Portugal, Persia, even Spain - AND THE JUDGMENT THAT THEY MUST DEPART, AND OF COURSE, THE WHOLE OF THE SOUTH AMERICAN REPUBLICS. "

This "secret one" or society, which sprang into existence a few months after Rhodes death, is the only organization that answers to the descriptions conceptualizing it in this rarely seen article buried deep on unfrequented library shelves. Notice they admitted to trying to recruit into their ranks wealthy men and take control over their fortunes after their death for their globalist vision. Their definition of "uncivilized parts of the world" includes any areas they wish to bring under control, by means of World War I, World War II, regional wars, and the Third World War, still to come. They speak of their judgment that certain nations must "depart," meaning, cease to exist as sovereign states! That includes all of South America, with its silver producing belts! This presentation won't try to convince the reader that their global reach is still an influence that will override all others, such as China and Russia. They unquestionably do possess the means to start World War III; is that influence enough? There is no way to know, but it should be supposed, that in exporting America's industrial base overseas, they retained ownership, and hold vast assets elsewhere. The effort is to convince you of their domestic control over these United States and by extension, Canada, and if the North American Union materializes, Mexico. There is no threat to your gold and silver ownership remotely as severe as that presented by The Pilgrims Society of the United States, based in New York City!

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 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 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.