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The Gold Market, Insider Trading and “Financial Terrorism” on Comex
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Jul 17, 2014 07:58:23   #
Patty
 
The Gold Market, Insider Trading and “Financial Terrorism” on Comex



By Dr. Paul Craig Roberts and Dave Kranzler

Global Research, July 17, 2014

paulcraigroberts.org

The first two days this week gold was subjected to a series of computer HFT-driven “flash crashes” that were aimed at cooling off the big move higher gold has made since the beginning of June. During this move higher, the hedge funds, who typically “chase” the momentum of gold up or down, built up hefty long positions in gold futures over the last 6 weeks. In order to disrupt the upward momentum in the price of gold, the bullion banks short gold in the futures market by dumping large contracts that drive down the price and make money for the banks in the process.

As we explained in previous articles on this subject, the price of gold is not determined in markets where physical gold is bought and sold but in the paper futures market where contracts trade and speculators place bets on the price of gold. Most of the contracts traded on the Comex futures market are settled in cash. The value of the contracts used to short gold and drive down the price is well in excess of the actual amount of physical gold that is kept on the Comex and available for delivery. One might think that regulators would pay attention to a market in which the value of contracts outstanding exceeds by several multiples the amount of physical gold available for delivery.

The Comex gold futures market trades 23 hours per day on a global computer system called Globex and on the NYC trading floor from 8:20 a.m. EST to 1:30p.m. EST (the 8:30 a.m. opening time on the face of the graph below is a draftsman’s error). The Comex floor trading session is the highest volume trading period during any 23 hour trading period because that is when most of the large U.S. financial institutions and other users of Comex futures (jewelry manufactures and gold mining companies) are open for business and therefore transact their Comex business during Comex floor hours in order to achieve the best trading execution at the lowest cost.

The big hedge funds primarily trade gold futures using computers and algorithm programs. When they buy, they set stop-loss orders which are used to protect their trading positions on the downside. A “stop-loss” order is an order to sell at a pre-specified price by a trader. A stop-loss order is automatically triggered and the position is sold when the market trades at the price which was pre-set with the stop-order.

The bullion banks who are members and directors of Comex have access to the computers used to clear Comex trades, which means they can see where the stop-loss orders are set. When they decide to short the market, they start selling Comex futures in large amounts to force the market low enough to trigger the stop-loss orders being used by the hedge fund computers. For instance, huge short-sell orders at 2:20 a.m. Monday morning triggered an avalanche of stop-loss selling, as shown in this graph of Monday’s (July 14) action (click on graph to enlarge):

Graph1

In the graph above, the first circled red bar shows the flash crash that was engineered at 2:20 a.m. EST, a typically low-volume, quiet period for gold trading. 13.5 tonnes of short-sales were unloaded into the Comex computer trading system. The second circled red bar shows a second engineered flash-crash right before the Comex floor opened at 8:20 a.m. EST. This was triggered by sales of futures contracts representing 27.5 tonnes of gold. A third hit (not shown) occurred at 9:01 a.m. This time contracts representing 40 tonnes of gold hit the market.

The banks use the selling from the hedge funds to cover the short positions they’ve amassed and book trading profits as they cover their short positions at price levels that are below the prices at which their short positions were established. This is insider trading and unrestrained financial terrorism at its finest.

As shown on the graph below, on Tuesday, July 15, another flash-crash in gold was engineered in the middle of Janet Yellen’s very “dovish” Humphrey-Hawkins testimony. Contracts representing 45 tonnes of gold were sold in 3 minutes, which took gold down over $13 and below the key $1300 price level. There were no apparent news triggers or specific comments from Yellen that would have triggered a sudden sell-off in gold — just a massive dumping of gold futures contracts. No other related market (stocks, commodities) registered any unusual movement up or down when this occurred:

Graph2

Between July 14 and July 15, contracts representing 126 tonnes of gold was sold in a 14-minute time window which took the price of gold down $43 dollars. No other market showed any unusual or extraordinary movement during this period.

To put contracts for 126 tonnes of gold into perspective, the Comex is currently reporting that 27 tonnes of actual physical gold are classified as being available for deliver should the buyers of futures contracts want delivery. But the buyers are the banks themselves who won’t be taking delivery.

One motive of the manipulation is to operate and control Comex trading in a manner that helps the Fed contain the price of gold, thereby preventing its rise from signaling to the markets that problems festering in the U.S. financial system are growing worse by the day. This is an act of financial terrorism supported by federal regulatory authorities. Another motive is to help support the relative trading level of the U.S. dollar, as we’ve described in previous articles on this topic. And, of course, the banks make money from the manipulation of the futures market.

The Commodity Futures Trading Commission, the branch of government which was established to oversee the Comex and enforce long-established trading regulations, has been presented with the evidence of manipulation several times. Its near-automatic response is to disregard the evidence and look the other way. The only explanation for this is that the Government is complicit in the price suppression and manipulation of gold and silver and welcomes the insider trading that helps to achieve this result. The conclusion is inescapable: if illegality benefits the machinations of the US government, the US government is all for illegality.





| Reply
Jul 17, 2014 08:53:32   #
Homestead
 
Patty wrote:
The Gold Market, Insider Trading and “Financial Terrorism” on Comex



By Dr. Paul Craig Roberts and Dave Kranzler

Global Research, July 17, 2014

paulcraigroberts.org

The first two days this week gold was subjected to a series of computer HFT-driven “flash crashes” that were aimed at cooling off the big move higher gold has made since the beginning of June. During this move higher, the hedge funds, who typically “chase” the momentum of gold up or down, built up hefty long positions in gold futures over the last 6 weeks. In order to disrupt the upward momentum in the price of gold, the bullion banks short gold in the futures market by dumping large contracts that drive down the price and make money for the banks in the process.

As we explained in previous articles on this subject, the price of gold is not determined in markets where physical gold is bought and sold but in the paper futures market where contracts trade and speculators place bets on the price of gold. Most of the contracts traded on the Comex futures market are settled in cash. The value of the contracts used to short gold and drive down the price is well in excess of the actual amount of physical gold that is kept on the Comex and available for delivery. One might think that regulators would pay attention to a market in which the value of contracts outstanding exceeds by several multiples the amount of physical gold available for delivery.

The Comex gold futures market trades 23 hours per day on a global computer system called Globex and on the NYC trading floor from 8:20 a.m. EST to 1:30p.m. EST (the 8:30 a.m. opening time on the face of the graph below is a draftsman’s error). The Comex floor trading session is the highest volume trading period during any 23 hour trading period because that is when most of the large U.S. financial institutions and other users of Comex futures (jewelry manufactures and gold mining companies) are open for business and therefore transact their Comex business during Comex floor hours in order to achieve the best trading execution at the lowest cost.

The big hedge funds primarily trade gold futures using computers and algorithm programs. When they buy, they set stop-loss orders which are used to protect their trading positions on the downside. A “stop-loss” order is an order to sell at a pre-specified price by a trader. A stop-loss order is automatically triggered and the position is sold when the market trades at the price which was pre-set with the stop-order.

The bullion banks who are members and directors of Comex have access to the computers used to clear Comex trades, which means they can see where the stop-loss orders are set. When they decide to short the market, they start selling Comex futures in large amounts to force the market low enough to trigger the stop-loss orders being used by the hedge fund computers. For instance, huge short-sell orders at 2:20 a.m. Monday morning triggered an avalanche of stop-loss selling, as shown in this graph of Monday’s (July 14) action (click on graph to enlarge):

Graph1

In the graph above, the first circled red bar shows the flash crash that was engineered at 2:20 a.m. EST, a typically low-volume, quiet period for gold trading. 13.5 tonnes of short-sales were unloaded into the Comex computer trading system. The second circled red bar shows a second engineered flash-crash right before the Comex floor opened at 8:20 a.m. EST. This was triggered by sales of futures contracts representing 27.5 tonnes of gold. A third hit (not shown) occurred at 9:01 a.m. This time contracts representing 40 tonnes of gold hit the market.

The banks use the selling from the hedge funds to cover the short positions they’ve amassed and book trading profits as they cover their short positions at price levels that are below the prices at which their short positions were established. This is insider trading and unrestrained financial terrorism at its finest.

As shown on the graph below, on Tuesday, July 15, another flash-crash in gold was engineered in the middle of Janet Yellen’s very “dovish” Humphrey-Hawkins testimony. Contracts representing 45 tonnes of gold were sold in 3 minutes, which took gold down over $13 and below the key $1300 price level. There were no apparent news triggers or specific comments from Yellen that would have triggered a sudden sell-off in gold — just a massive dumping of gold futures contracts. No other related market (stocks, commodities) registered any unusual movement up or down when this occurred:

Graph2

Between July 14 and July 15, contracts representing 126 tonnes of gold was sold in a 14-minute time window which took the price of gold down $43 dollars. No other market showed any unusual or extraordinary movement during this period.

To put contracts for 126 tonnes of gold into perspective, the Comex is currently reporting that 27 tonnes of actual physical gold are classified as being available for deliver should the buyers of futures contracts want delivery. But the buyers are the banks themselves who won’t be taking delivery.

One motive of the manipulation is to operate and control Comex trading in a manner that helps the Fed contain the price of gold, thereby preventing its rise from signaling to the markets that problems festering in the U.S. financial system are growing worse by the day. This is an act of financial terrorism supported by federal regulatory authorities. Another motive is to help support the relative trading level of the U.S. dollar, as we’ve described in previous articles on this topic. And, of course, the banks make money from the manipulation of the futures market.

The Commodity Futures Trading Commission, the branch of government which was established to oversee the Comex and enforce long-established trading regulations, has been presented with the evidence of manipulation several times. Its near-automatic response is to disregard the evidence and look the other way. The only explanation for this is that the Government is complicit in the price suppression and manipulation of gold and silver and welcomes the insider trading that helps to achieve this result. The conclusion is inescapable: if illegality benefits the machinations of the US government, the US government is all for illegality.
The Gold Market, Insider Trading and “Financial Te... (show quote)



Another piece of the bigger picture.

This kind of fraud can't happen under Capitalism, it would cause financial ruin.

But, it is needed under socialism to hide what's taking place until it's too late.
Then the government will blame the results of their socialist policies on Capitalism and demand more power to implement more socialist policies, there-by, guaranteeing the governments control over the people.

Ever notice, that in any depression, no matter how bad it is, the government always gets paid and they never starve.


American Economic Collapse, martial law and the coming fall of America
http://www.youtube.com/watch?v=LUJ-r4b0n9A

More Academic Evidence that Bigger Government Means Less Prosperity http://finance.townhall.com/columnists/danieljmitchell/2013/10/12/more-academic-evidence-that-bigger-government-means-less-prosperity-n1721976/page/full

The Biggest Scam In The History Of Mankind - Hidden Secrets of Money 4 - Mike Maloney
http://www.youtube.com/watch?v=iFDe5kUUyT0#t=29

| Reply
Jul 17, 2014 09:18:33   #
Floyd Brown Loc: Milwaukee WI
 
Patty wrote:
The Gold Market, Insider Trading and “Financial Terrorism” on Comex



By Dr. Paul Craig Roberts and Dave Kranzler

Global Research, July 17, 2014

paulcraigroberts.org

The first two days this week gold was subjected to a series of computer HFT-driven “flash crashes” that were aimed at cooling off the big move higher gold has made since the beginning of June. During this move higher, the hedge funds, who typically “chase” the momentum of gold up or down, built up hefty long positions in gold futures over the last 6 weeks. In order to disrupt the upward momentum in the price of gold, the bullion banks short gold in the futures market by dumping large contracts that drive down the price and make money for the banks in the process.

As we explained in previous articles on this subject, the price of gold is not determined in markets where physical gold is bought and sold but in the paper futures market where contracts trade and speculators place bets on the price of gold. Most of the contracts traded on the Comex futures market are settled in cash. The value of the contracts used to short gold and drive down the price is well in excess of the actual amount of physical gold that is kept on the Comex and available for delivery. One might think that regulators would pay attention to a market in which the value of contracts outstanding exceeds by several multiples the amount of physical gold available for delivery.

The Comex gold futures market trades 23 hours per day on a global computer system called Globex and on the NYC trading floor from 8:20 a.m. EST to 1:30p.m. EST (the 8:30 a.m. opening time on the face of the graph below is a draftsman’s error). The Comex floor trading session is the highest volume trading period during any 23 hour trading period because that is when most of the large U.S. financial institutions and other users of Comex futures (jewelry manufactures and gold mining companies) are open for business and therefore transact their Comex business during Comex floor hours in order to achieve the best trading execution at the lowest cost.

The big hedge funds primarily trade gold futures using computers and algorithm programs. When they buy, they set stop-loss orders which are used to protect their trading positions on the downside. A “stop-loss” order is an order to sell at a pre-specified price by a trader. A stop-loss order is automatically triggered and the position is sold when the market trades at the price which was pre-set with the stop-order.

The bullion banks who are members and directors of Comex have access to the computers used to clear Comex trades, which means they can see where the stop-loss orders are set. When they decide to short the market, they start selling Comex futures in large amounts to force the market low enough to trigger the stop-loss orders being used by the hedge fund computers. For instance, huge short-sell orders at 2:20 a.m. Monday morning triggered an avalanche of stop-loss selling, as shown in this graph of Monday’s (July 14) action (click on graph to enlarge):

Graph1

In the graph above, the first circled red bar shows the flash crash that was engineered at 2:20 a.m. EST, a typically low-volume, quiet period for gold trading. 13.5 tonnes of short-sales were unloaded into the Comex computer trading system. The second circled red bar shows a second engineered flash-crash right before the Comex floor opened at 8:20 a.m. EST. This was triggered by sales of futures contracts representing 27.5 tonnes of gold. A third hit (not shown) occurred at 9:01 a.m. This time contracts representing 40 tonnes of gold hit the market.

The banks use the selling from the hedge funds to cover the short positions they’ve amassed and book trading profits as they cover their short positions at price levels that are below the prices at which their short positions were established. This is insider trading and unrestrained financial terrorism at its finest.

As shown on the graph below, on Tuesday, July 15, another flash-crash in gold was engineered in the middle of Janet Yellen’s very “dovish” Humphrey-Hawkins testimony. Contracts representing 45 tonnes of gold were sold in 3 minutes, which took gold down over $13 and below the key $1300 price level. There were no apparent news triggers or specific comments from Yellen that would have triggered a sudden sell-off in gold — just a massive dumping of gold futures contracts. No other related market (stocks, commodities) registered any unusual movement up or down when this occurred:

Graph2

Between July 14 and July 15, contracts representing 126 tonnes of gold was sold in a 14-minute time window which took the price of gold down $43 dollars. No other market showed any unusual or extraordinary movement during this period.

To put contracts for 126 tonnes of gold into perspective, the Comex is currently reporting that 27 tonnes of actual physical gold are classified as being available for deliver should the buyers of futures contracts want delivery. But the buyers are the banks themselves who won’t be taking delivery.

One motive of the manipulation is to operate and control Comex trading in a manner that helps the Fed contain the price of gold, thereby preventing its rise from signaling to the markets that problems festering in the U.S. financial system are growing worse by the day. This is an act of financial terrorism supported by federal regulatory authorities. Another motive is to help support the relative trading level of the U.S. dollar, as we’ve described in previous articles on this topic. And, of course, the banks make money from the manipulation of the futures market.

The Commodity Futures Trading Commission, the branch of government which was established to oversee the Comex and enforce long-established trading regulations, has been presented with the evidence of manipulation several times. Its near-automatic response is to disregard the evidence and look the other way. The only explanation for this is that the Government is complicit in the price suppression and manipulation of gold and silver and welcomes the insider trading that helps to achieve this result. The conclusion is inescapable: if illegality benefits the machinations of the US government, the US government is all for illegality.
The Gold Market, Insider Trading and “Financial Te... (show quote)


In the face of this happening how does that make going on the gold standard such a good thing?

| Reply
Jul 17, 2014 09:22:39   #
Homestead
 
Floyd Brown wrote:
In the face of this happening how does that make going on the gold standard such a good thing?


Don't be an idiot.
The reason this kind of thing can happen, is because we are off the gold standard.

Gold is now, just another commodity.

| Reply
Jul 17, 2014 09:42:12   #
Floyd Brown Loc: Milwaukee WI
 
Homestead wrote:
Another piece of the bigger picture.

This kind of fraud can't happen under Capitalism, it would cause financial ruin.

But, it is needed under socialism to hide what's taking place until it's too late.
Then the government will blame the results of their socialist policies on Capitalism and demand more power to implement more socialist policies, there-by, guaranteeing the governments control over the people.

Ever notice, that in any depression, no matter how bad it is, the government always gets paid and they never starve.


American Economic Collapse, martial law and the coming fall of America
http://www.youtube.com/watch?v=LUJ-r4b0n9A

More Academic Evidence that Bigger Government Means Less Prosperity http://finance.townhall.com/columnists/danieljmitchell/2013/10/12/more-academic-evidence-that-bigger-government-means-less-prosperity-n1721976/page/full


The Biggest Scam In The History Of Mankind - Hidden Secrets of Money 4 - Mike Maloney
http://www.youtube.com/watch?v=iFDe5kUUyT0#t=29
Another piece of the bigger picture. br br This k... (show quote)


Only watch a bit of it but the part of the % of money coming from wages jumped out.

Less that 50% is paid in wages.

It would seem to me that is at the core of the problems with the the economy.

So tell my just how making the government smaller & leaving the private sector doing what they have been doing going to help?

If the private sector paid more in wages they would pay less in taxes.

Could it be that they want to keep all of the money that goes
through their hands?

So tell me what would the really fair numbers be?

They are enjoying a wind fall of money going their way now.

Just what would be a fair return for people's input to the economy?

| Reply
Jul 17, 2014 10:05:13   #
Ve'hoe
 
HAHHAHAHHAHAHAHAHAa!!!!


That!!! Is why you is po an livin onda streetz



Floyd Brown wrote:
In the face of this happening how does that make going on the gold standard such a good thing?

| Reply
Jul 17, 2014 10:08:31   #
Floyd Brown Loc: Milwaukee WI
 
Homestead wrote:
Don't be an idiot.
The reason this kind of thing can happen, is because we are off the gold standard.

Gold is now, just another commodity.


No you are the idiot for believing that those that control the gold will have you interests in mind.

In fact no matter what is use for money even just numbers in a computer. It is the one who controls what ever is used for money that controls the value of it.

| Reply
Jul 17, 2014 10:12:32   #
Ve'hoe
 
Example, when Reagan lowered the tax "RATES" the amount actually collected went UP!

Supply side economics, what you call "trickle down" was acutually what JFK desired,,,

In our current state,,, if 1% of the people have 90% of the money,,,and you tax them at 30 % on "income" you actually get less money, than if you taxed EVERYONE at 10%,,,, everyone gets a tax break,,, Revenues (what is actually collected by the IRS goes UP) Raising taxes, even on the 1% er-s actually NETS you less money.

How the smaller govt figures in:

In the above scenario, like the warren buffett BS story went, He gets taxed less, because he payed off his politicians and he lives off of what is called "Dividend Income" not a Wage, or a salary" Dividends are taxed less than personal income. The problem is that that same politician taxes the 1%er "higher rates" on an income source that he doesnt actually have, therefore it LOOKS like he is doing YOU a favor, when actually, he has done nothing, and your tax rate is still the same......

Get it?

Floyd Brown wrote:
Only watch a bit of it but the part of the % of money coming from wages jumped out.

Less that 50% is paid in wages.

It would seem to me that is at the core of the problems with the the economy.

So tell my just how making the government smaller & leaving the private sector doing what they have been doing going to help?

If the private sector paid more in wages they would pay less in taxes.

Could it be that they want to keep all of the money that goes
through their hands?

So tell me what would the really fair numbers be?

They are enjoying a wind fall of money going their way now.

Just what would be a fair return for people's input to the economy?
Only watch a bit of it but the part of the % of mo... (show quote)

| Reply
Jul 17, 2014 10:26:33   #
Floyd Brown Loc: Milwaukee WI
 
Ve'hoe wrote:
Example, when Reagan lowered the tax "RATES" the amount actually collected went UP!

Supply side economics, what you call "trickle down" was acutually what JFK desired,,,

In our current state,,, if 1% of the people have 90% of the money,,,and you tax them at 30 % on "income" you actually get less money, than if you taxed EVERYONE at 10%,,,, everyone gets a tax break,,, Revenues (what is actually collected by the IRS goes UP) Raising taxes, even on the 1% er-s actually NETS you less money.

How the smaller govt figures in:

In the above scenario, like the warren buffett BS story went, He gets taxed less, because he payed off his politicians and he lives off of what is called "Dividend Income" not a Wage, or a salary" Dividends are taxed less than personal income. The problem is that that same politician taxes the 1%er "higher rates" on an income source that he doesnt actually have, therefore it LOOKS like he is doing YOU a favor, when actually, he has done nothing, and your tax rate is still the same......

Get it?
Example, when Reagan lowered the tax "RATES&q... (show quote)


You can supply things till there is no room for any more.
But if there isn't enough money to buy the junk what do you have?

So get your head out of where ever it is stuck & see that supply & demand have to match up.

If you have to much of either, things don't work right.

So stop crying & pay more wages or more taxes. The money you keep in your pockets don't keep the economy going.

You only end up having more of less. More supply but less sales.

You can't depend on another person going in to debt to keep the bubble going.

| Reply
Jul 17, 2014 10:32:08   #
Floyd Brown Loc: Milwaukee WI
 


Floyd Brown wrote:
You can supply things till there is no room for any more. But if there isn't enough money to buy the junk what do you have?

So get your head out of where ever it is stuck & see that supply & demand have to match up.

If you have to much of either, things don't work right.

So stop crying & pay more wages or more taxes. The money you keep in your pockets don't keep the economy going.

You only end up having more of less. More supply but less sales.

You can't depend on another person going in to debt to keep the bubble going.
You can supply things till there is no room for an... (show quote)


I messed up the editing.

| Reply
Jul 17, 2014 10:46:11   #
Ve'hoe
 
That is not addressing anything I said,,,except,,,,, why it is abundantly clear to me, why you occupy the bottom rung of the societal ladder..........




Floyd Brown wrote:
You can supply things till there is no room for any more.
But if there isn't enough money to buy the junk what do you have?

So get your head out of where ever it is stuck & see that supply & demand have to match up.

If you have to much of either, things don't work right.

So stop crying & pay more wages or more taxes. The money you keep in your pockets don't keep the economy going.

You only end up having more of less. More supply but less sales.

You can't depend on another person going in to debt to keep the bubble going.
You can supply things till there is no room for an... (show quote)

| Reply
Jul 17, 2014 11:22:10   #
Patty
 
Its not going to be up to the US whether to go on the gold standard. Our currency might still be used here but will not be globally. Whether ist is monetized 50/1 10/1 or 100/1 fiat currencies backed by nothing have lost all confidence. That is why China/India/ Russia are buying upall the gold from the west. What are countries going to use currency backed by the US promise or a basket of BRICS currencies that are backed by gold?
Floyd Brown wrote:
In the face of this happening how does that make going on the gold standard such a good thing?

| Reply
Jul 17, 2014 11:39:11   #
Homestead
 
Floyd Brown wrote:
Only watch a bit of it but the part of the % of money coming from wages jumped out.

Less that 50% is paid in wages.

It would seem to me that is at the core of the problems with the the economy.

So tell my just how making the government smaller & leaving the private sector doing what they have been doing going to help?

If the private sector paid more in wages they would pay less in taxes.

Could it be that they want to keep all of the money that goes
through their hands?

So tell me what would the really fair numbers be?

They are enjoying a wind fall of money going their way now.

Just what would be a fair return for people's input to the economy?
Only watch a bit of it but the part of the % of mo... (show quote)




You do not seem to understand some basic principles.

All government is an expense that must be paid by those who actually create wealth.

Even when you pay for police and military, they are an expense that must be paid.

Neither the police nor the military generates wealth. They are expense that must be paid for, out of the wealth from those who actually do create it.

They are being paid to protect wealth, that has already been earned.

-------------------------------------
It doesn't just stop there.
All government employees get paid, but, none of them produce any goods or services that can be sold in the marketplace.

When a company builds an extra M1 Tank, is that put onto the market?
If a company builds an extra Patriot Missile, is that put into the market place?

If a company builds a tractor or truck, a farmer can use those things to farm, increase his production and live his life, what is he going to do with a tank?

If you work for a company that builds radios, the extra radios are put out into the market place.

A farmer growing wheat or corn may want to listen to the radio while he works. So he puts the extra goods he has onto the market, using the dollar as a unit of exchange, he trades it for the things other companies have put on the market.

What regulates the price of these things is the demand for them.

When you have government employees spending their pay-checks, they want the same things everyone else does, food, clothing, shelter..ect.

But, a government employee produces none of those things, yet, they consume them.

Not only does the government employee have a secure job, with benefits, that you have to pay for out of your pocket, but, after he gets paid you have to compete with him for the things on the market.

How many times have you tried to buy or rent a house, only to be out bid by someone with a government job.

They can afford it because, ultimately, your the one paying for it.
--------------------------------------------------

If your one of those that thinks that government has it's own money, then pray tell, why do any of us have to pay taxes?

If government is the source of it's own financing, then why must anyone pay taxes?

The answer is that government is paid for by the tax payer. The bigger the government the more taxes paid.

These taxes always come out of your pay check.
When people vote for businesses to pay higher taxes, what do you think happens to the price you have to pay for what their selling?
When you raise property taxes on businesses, what do you think that does to their cost of business and what you have to pay for their goods or services.
When you raise the cost of doing business so much, that you drive most of the other businesses out of business, you create a monopoly out of the few that are left and what do you think that does to what you have to pay.

What happens when.................say a local fire department costs so much to run, that it costs more in taxes than your house is worth?

You'd be better off letting it burn down, it'd be cheaper, but, the government requires you to pay their taxes. If you don't your house is taken for non-payment of taxes.

This makes you homeless and now your on welfare which requires even more taxes.

As taxes rise, businesses that used to be able to survive close down.
This puts more people out of work. The more businesses that close down, the less taxes they pay.

As more people lose their jobs, the less taxes they pay, plus now they are on government assistance which requires more taxes from businesses that don't exist any-more and more taxes from employees that don't have jobs any-more.

With less and less taxes collected the government resorts to fraud.
It prints money it can't back up.
This devalues the dollar and prices rise. This is called inflation and it is the government stealing from you.

But, because you don't understand basic economics or have the ability to do basic math, the government does this with your permission.

It is permission by ignorance, but, permission just the same.

| Reply
Jul 17, 2014 11:54:58   #
Ve'hoe
 
It doesnt do any good,,, he is a low information obama voter,,,,, what he said,,,, although it had zero correlation with the topic, is what he truly beleives... it isnt about facts or even education, it is about superstition, and entitlement.

"I did, nuffin wrong, ya'll stole my money, das why yallz rich, now the govmint gon take all yo moneyz and gib it too me,, but since I still aint gotz it, it muss be cuz, yall eifer steeled it agin, or the govmint needz to take mo frum yall,,,, "

He doesnt understand that it is the Govt who actually steals it... and he never will, that is why he votes democrat, why they like him, and why the want to open the border for more.


Patty wrote:
Its not going to be up to the US whether to go on the gold standard. Our currency might still be used here but will not be globally. Whether ist is monetized 50/1 10/1 or 100/1 fiat currencies backed by nothing have lost all confidence. That is why China/India/ Russia are buying upall the gold from the west. What are countries going to use currency backed by the US promise or a basket of BRICS currencies that are backed by gold?

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Jul 17, 2014 11:56:42   #
Ve'hoe
 
You only made ONE mistake,,, "Nothing comes out of Floyds paycheck" only yours and mine,,,,,,,,


Homestead wrote:
You do not seem to understand some basic principles.

All government is an expense that must be paid by those who actually create wealth.

Even when you pay for police and military, they are an expense that must be paid.

Neither the police nor the military generates wealth. They are expense that must be paid for, out of the wealth from those who actually do create it.

They are being paid to protect wealth, that has already been earned.

-------------------------------------
It doesn't just stop there.
All government employees get paid, but, none of them produce any goods or services that can be sold in the marketplace.

When a company builds an extra M1 Tank, is that put onto the market?
If a company builds an extra Patriot Missile, is that put into the market place?

If a company builds a tractor or truck, a farmer can use those things to farm, increase his production and live his life, what is he going to do with a tank?

If you work for a company that builds radios, the extra radios are put out into the market place.

A farmer growing wheat or corn may want to listen to the radio while he works. So he puts the extra goods he has onto the market, using the dollar as a unit of exchange, he trades it for the things other companies have put on the market.

What regulates the price of these things is the demand for them.

When you have government employees spending their pay-checks, they want the same things everyone else does, food, clothing, shelter..ect.

But, a government employee produces none of those things, yet, they consume them.

Not only does the government employee have a secure job, with benefits, that you have to pay for out of your pocket, but, after he gets paid you have to compete with him for the things on the market.

How many times have you tried to buy or rent a house, only to be out bid by someone with a government job.

They can afford it because, ultimately, your the one paying for it.
--------------------------------------------------

If your one of those that thinks that government has it's own money, then pray tell, why do any of us have to pay taxes?

If government is the source of it's own financing, then why must anyone pay taxes?

The answer is that government is paid for by the tax payer. The bigger the government the more taxes paid.

These taxes always come out of your pay check.
When people vote for businesses to pay higher taxes, what do you think happens to the price you have to pay for what their selling?
When you raise property taxes on businesses, what do you think that does to their cost of business and what you have to pay for their goods or services.
When you raise the cost of doing business so much, that you drive most of the other businesses out of business, you create a monopoly out of the few that are left and what do you think that does to what you have to pay.

What happens when.................say a local fire department costs so much to run, that it costs more in taxes than your house is worth?

You'd be better off letting it burn down, it'd be cheaper, but, the government requires you to pay their taxes. If you don't your house is taken for non-payment of taxes.

This makes you homeless and now your on welfare which requires even more taxes.

As taxes rise, businesses that used to be able to survive close down.
This puts more people out of work. The more businesses that close down, the less taxes they pay.

As more people lose their jobs, the less taxes they pay, plus now they are on government assistance which requires more taxes from businesses that don't exist any-more and more taxes from employees that don't have jobs any-more.

With less and less taxes collected the government resorts to fraud.
It prints money it can't back up.
This devalues the dollar and prices rise. This is called inflation and it is the government stealing from you.

But, because you don't understand basic economics or have the ability to do basic math, the government does this with your permission.

It is permission by ignorance, but, permission just the same.
You do not seem to understand some basic principle... (show quote)

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