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Monday, July 19, 2010

Conveniently Unreported News

Gulf oil spill:  Hey, did ya hear?  The US government has decide it doesn't need the services of the A Whale oil skimmer.
The Coast Guard said “thanks, but no thanks” to the superskimmer “A Whale” Friday, as the 1,100 foot-long converted iron ore freighter failed to make a sizeable dent in the Gulf oil spill during a 24-hour testing period.
Where was all of the press on this?  I had to dig like hell to find any information on what was going on with this thing.  The basic "excuse" was that it wasn't able to suck up enough oil to make the feds happy.

Geez, I wonder why that might be -
Although the ship was the only vessel collecting oil during a period of stormy weather, the amounts ultimately didn't justify the expense.
WTF?  You test them during a period when no one else is out sucking up oil due to bad weather, and you THEN call the test a failure?  Again, WTF?

The owner of the ship doesn't seem to be making too much of a stink about this.  I'm guessing they had an anonymous deposit made to their checking account...

I can't figure out what the game is that the Feds are playing, but I'm sure there is some strategic plan in play that ties into the upcoming elections.  Call me jaded...

Shouldn't someone that works at a newspaper ask a couple of questions about this?  Right.  Never mind.

Gold and silver have been getting hammered the last few sessions.  It NOW comes out that the minutes of the June Federal Reserve Bank meeting were released last week -
Gold prices have edged lower Monday as investors continue to digest information from minutes of the Fed's June 22 to 23 meeting, which were released on Wednesday and suggested the possibility of deflationary pressures.
The Fed's minutes indicated that "several participants noted that a continuation of lower-than-expected inflation and high unemployment could eventually lead to a downward movement in inflation expectations that would reinforce disinflationary pressures."
Ah.  Those deflationary pressures that result from a flat and declining economy?  Would those also be the same deflationary pressures that PRECEDE a high inflation period?
Still, some officials had noted during the meeting the possibility of a potentially unsustainable fiscal position, and that the size of the Federal Reserve's balance sheet could boost inflation expectations and actual inflation over time.
Yeah.  Well, it clearly makes sense to keep all of the Fed's actions under lock-and-key.  Their policies sure seem to be working like a charm...

The Fed is giving major hints about the downward spiral of our economy, and there's not a single byte written about this outside of some technical financial sites.  Unreal.

So, we have a double-hammer of inflation to look forward to.  The first blow coming from the "free market" deflation (product on-hand, no demand, slash prices to move inventory) which then turns inflationary once the producers cut back production and Supply and Demand move to equilibrium, raising prices.

This is in concert with the Fed monetary polices which reduce the value of the dollar as they continue to print up money out of thin air ("quantitative easing" is the fancy term).

Throw in the metaphysical certitude of new taxes from Obamacare, Cap and Trade and Financial Reform.  Local and state taxes sure to go up because they're all dying.

Good Times ahead.

If you've got all of your preps taken care of, buy gold and silver during this period.  It's impossible to tell how long this period will last.  The only thing we know for certain is that it won't last forever.

Accept The Challenge

I have no clue what's going on with the oil skimmer.  There is some Major League gamesmanship going on right now between BP and the administration.  Nothing seems to make any sense...

Buying gold and silver has risks.  No doubt about it.  Although I personally buy them as an inflationary hedge, you need to have it in your mind that you are making an investment.  And sometimes, investments loose value.

I don't think they will (over the next few years at least), but this is something YOU need to understand and accept BEFORE you spend your hard-earned dollars.

I suggest anyone who is consider this type of investment spend sometime reading articles about what types of entities are buying gold.  China, India, Russia.  Mind-boggling sums.

Billionaire George Soros says publicly that he believes there is a "gold bubble", yet he DOUBLED his stake in gold last year.  Why might that be?

Trust your gut.

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Joseph said...

Shouldn't someone that works at a newspaper ask a couple of questions about this? Right. Never mind.
You seem to be articulate and able to write a few words so why don't you try it? It would be a boost to your site and might gain notoriety with the lazy journalists who only take the real investigative journalism and wrap it up with pretty graphics. Maybe do it on a Skype interview and record it or something similar?
Best Wishes

suek said...

Check this out. Talk about an attack from an unexpected source...!

Here's another. I have no idea how valid the info it - it _appears_ to have a valid source, but I know nothing about oil, so can't really judge. The news is _not_ good. I hope he's _way_ out in left field...

Chief Instructor said...

Joseph, I regularly write my local papers and occasionally the news services (AP, etc) asking them what they were thinking, or if they did their job to dig deeper. I've yet to receive a reply.

I have had a number of items I've been pissed off about brought to light on a Nor Cal radio station. I'm doing what I can with the resources I've got.

I wonder how you get a "press pass". Do you have to be associated with a "real" publisher or can you just print one up and say you're the beat reporter for Accept The Challenge? I dunno. Something to think about.

suek, LOL, read today's post. The precious metals trade is going to change... considerably.

The oil stuff has been around for a while. Like you (and the author), I just don't have enough first-hand knowledge to determine if this is a valid concern or not.

It seems plausible, but that's the way rumors like this get started and spread. A little kernel of truth or logic, and it goes viral.

If it is true or plausible, we'll never know until TSHTF. BP and the government will NEVER make this public. The panic would be unmanageable.

On the other hand, the tin-foil hat wearer in me says THAT would be the perfect excuse to institute martial law...

Excuse me. I need to go bucket up some more grain... ;-)

Joseph said...

Hopefully you understood I wasn't trying to jab at you but instead since I enjoy your posts and believe that the blogging community offers more hard-hitting news than the lamestream press it was intended to be an encouraging comment.

Anyway, in the event you do decide you are serious and want to get those press credentials. Heck for the price I may very well get one just to have special privileges at some events.
Press Pass for Bloggers

Chief Instructor said...

Joseph, hmm, I DID sound a bit defensive in my response! That was not my intention and I didn't think you were taking a jab at me.

Thank you for press pass link. Interesting stuff. I need to think this through. I tend to go "balls to the wall" when I do something. I need to do a personal cost/benefit analysis here!