How U.S. states cook their books

(TheComingDepression) – Here’s a trick used by bankers, states trying to add debt without getting voter approval and companies like Enron or Worldcom — and we know how that worked out (they both went bankrupt and their executives charged with fraud). This from the New York State Comptroller (hat tip to our of our viewers): Read More Here

Why Gold Is Dropping When It Should Be Rising

Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, “because Comex-gold isn’t gold” – and because it deceptively pretends to be ‘the’ price-setter for real gold.

Gold is gold, paper is paper, and “Comex gold” is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked.

The real supply and demand determinants for Comex gold are not actual gold investors but fund managers . Fund managers are inextricably intertwined with the world of contract-based credit instruments. They use bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will ‘go up’ in value while everything else is going down.