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*Excerpt from the
weekly “Friday Road Trip” posted on 4/9/2010 at www.roadtoroota.com
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Why I Think
Gold/Silver Mining Shares Are A Bad Investment
Mining shares are a
hot topic these days and I'd like to clarify my position on this issue but
let me tell you first that I don't have any answers. Only a feeling and some
common sense.
The question is... "Will
mining shares payoff more than physical metal when the manipulation
ends?" My answer is maybe...but ONLY if the fiat monetary system stays
in tact. If the crash is as serious as I think it will be, I can't see mining
shares paying off. They will all be nationalized.
Here is my reasoning:
1) When the
manipulation ends gold/silver will skyrocket many, many multiples of where
they are valued today. So much so that everyone will want answers to the
question "Why?". The manipulation story will come out and the
people will demand that the wealth of their nation be shared.
2) Globalization will
end with the monetary crash and everyone will close their borders to trade
for a while. Non-citizen claims of gold/silver mine ownership will be laughed
at.
3) There will be
anger towards the "rich people" that caused the crash such that
private ownership of a country's supplies of new money in the ground
(gold/silver) will not be allowed. The good guys want NO WINNERS in this
transition.
4) There is a massive
amount of phantom shares floating around in every brokerage house and at the
DTCC (some say 1,000x+ for most mining shares). When everyone who supposedly
holds shares tries to cash in there will be no way to allocate them because
there will be so many legitimate claims of share ownership.
5) All of the
brokerage houses will fail with the crash and there is only $263M in net
assets left in the SIPC insurance fund to insure TRILLIONS UPON TRILLIONS of
SIPC Member accounts.
There is more but you
get the idea.
Don't get me wrong
though...I think the mining companies hold MASSIVE wealth in the ground.
The problem is not
that the shares aren't valuable...IT'S THAT THEY'RE TOO VALUABLE!
Take the Gold
Manipulation Quiz and learn why!
http://www.roadtoroota.com/public/197.cfm
Preparing the
People...The Great Banking Con Explained on National TV!
Over the last year
the good guys have been working on the masses to get them knowledgeable and
prepared to take it out on the banking cabal. Here's the latest mainstream
education session...
http://www.msnbc.msn.com/id/21134540/vp/36233217#36233217
Citigroup on the Hot
Seat
One of the main
problems with holding this house of cards together is what to do with
Citigroup. Citi was the heart of the banking cabal and my sources say it has
TRILLIONS of undeclared losses. Citi will be in the front row when the people
want to know WHY everything has fallen apart.
The hearings continue
as we speak.
http://finance.yahoo.com/news/Fmr-Citi-exec-warned-Rubin-apf-712700185.html?x=0&sec=topStories&pos=1&asset=&ccode=
Citi is the elephant
in the room at the moment.
When will they break...
tonight?
Alan Greenspan's Big
Lies on Capitol Hill
I am knee deep in
comments, challenges and disbelief regarding my article yesterday on Alan
Greenspan. Many emails are coming from people who read it on Goldseek.com and
24hgold.com but haven't been "subjected" to the Road to Roota
Theory.
I have directed them
to the Road to Roota Archives to see how I came to such an unlikely
conclusion and hopefully they will begin to understand what is REALLY going
on behind the scenes.
Although Greenspan's
testimony yesterday was 100% scripted and rehearsed it should surprise no one
that he continues to lie to the world about his involvement in the
destruction of the world's monetary system.
There should be no
doubt about his fault in the matter… here is Greenspan's 1998 Testimony
about regulating OTC Derivatives...
http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm
July 24, 1998
Testimony of Chairman Alan Greenspan
The regulation of OTC
derivatives
Before the Committee
on Banking and Financial Services, U.S. House of
Representatives
Conclusion
"In conclusion,
the Board continues to believe that, aside from safety and soundness
regulation of derivatives dealers under the banking or securities laws,
regulation of derivatives transactions that are privately negotiated by
professionals is unnecessary. Moreover, the Board questions whether the CEA
as currently implemented is an appropriate framework for professional trading
of financial futures on exchanges. The key elements of the CEA were put in
place in the 1920s and 1930s to regulate the trading of agricultural futures
by the general public."
"The vast
majority of financial futures traded simply are not as susceptible to
manipulation as agricultural and other commodity futures where supplies are
more limited. And participants in financial futures markets are predominantly
professionals that simply do not require the customer protections that may be
needed by the general public. Regulation that serves no useful purpose
hinders the efficiency of markets to enlarge standards of living."
"In choosing a
particular regulatory regime it is important to remember that no system will
fully eliminate inappropriate or illegal activities. Banking examiners, for
example, find it difficult to unearth fraud and embezzlement in their early
stages. Securities regulators have difficulty ferreting out malfeasance. Even
trading on exchanges does not in itself eliminate all endeavors at
manipulation, as the Hunt brothers' 1979-80 fiasco in silver demonstrated. The
primary source of regulatory effectiveness has always been private traders
being knowledgeable of their counterparties. Government regulation can only
act as a backup. It should be careful to create net benefits to
markets."
END
Did I really read
that correctly? Let me take some of the extra Green-speak words out of the
Conclusion to find out what he really said.
"Aside from
safety and soundness...regulation of derivatives transactions...is
unnecessary."
"The vast
majority of financial futures traded simply are not as susceptible to
manipulation"
"Participants...are
professionals that do not require the customer protections."
"Regulation...hinders
the efficiency of markets to enlarge standards of living."
"No system will
fully eliminate inappropriate or illegal activities."
"The primary
source of regulatory effectiveness has always been private traders being
knowledgeable of their counterparties."
Can it be any clearer
that these statements and the subsequent lack of regulation is the cause and
reason behind the financial meltdown?
To me, the only
question left is "Did he do it all on purpose?"
As far as the housing
situation is concerned, it's hard for Greenspan to say that he didn't know
what was going to happen since the Federal Reserve published this EXACT
SCENARIO in their 1987 and 2007 editions on page 33 of "Banking
Basics":
http://www.bos.frb.org/education/pubs/bankingbasics.htm
Or take the case of
Bedrock Bank . . .
Bedrock Bank Gets Too
Big Too Fast
Bedrock Bank's new
president was determined to turn his bank into the region's biggest lender. Bedrock's
loan officers got the message and started making as many loans as they could
for condominium developments, shopping centers, office buildings, and
high-priced suburban housing developments. Loan applications were not always
checked as closely as they had been in the past, and some of the loans were
approved more quickly than they had been in the old days. But nobody seemed
concerned because the local economy was strong and real estate values were
rising rapidly.
Everything seemed
fine; everyone was making money. But then the economy slowed down, and things
took a turn for the worse. The weak economy forced many businesses to close,
leaving lots of vacant office space. Real estate values plummeted, and many
developers fell behind on their loan payments.
In the end, Bedrock
Bank was losing so much money on bad real estate loans that government
regulators were forced to step in and close it. The regulators tried to find
a buyer for Bedrock, but no other bank wanted to get stuck with all the loans
that had gone bad. Eventually, another bank agreed to buy Bedrock if the
federal government would agree to keep many of the problem loans.
END
Look through the
pages of the 2007 version for all the pictures of people cashing in their
gold at the bank!
Of course Greenspan
knew what was going to happen.
It was all part of the
plan.
Plot to Over Throw America
More on our
mysterious past...
http://www.fourwinds10.com/siterun_data/history/american/news.php?q=1270669273
My friends. We are
about enter a very, very scary time but keep your head up and your eyes open
for our freedom is just around this dark corner.
May the Road you
choose be the Right Road
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