I read and watch a great deal of debate on the U.S Govt and foreign policy. I see a lot of people getting very passionate about their feelings in these issues. my articles are more on the physical side of the situation when it comes to the economy, precious metals and energy. I rarely write about the US Govt or what is taking place in countries throughout the world.
The reason why I stay away from this sort of debate is due to the fact that IT IS A COMPLETE WASTE OF TIME TO GO AGAINST THE LEVERAGE WHICH IS CURRENTLY IN CHARGE. If we look at the past, political parties whether they be socialist, communist, fascist or etc.. run for quite a long time before they disintegrate. No amount of protest or revolt works. In the end, it is the entropy of the system that takes down the political party.
The Peaking of Oil and the coming energy shortages will destroy the present political systems.
Peak Oil & Energy Shortages Will Destroy the Present Political Systems
THE EROI - ENERGY RETURNED ON INVESTED between the GOLD RUSH SHOW vs BERING SEA GOLD
I don't know how many of you all have watched these two gold mining reality shows on the Discovery channel. So far this year, the Hoffmans in the Gold Rush Show have mined 82 ounces of gold... and basically the mining season is over. From my memory, Dakota Fred got about 65 ounces so far. From what I could get from the show, the Hoffmans consumed over $1,000 worth of diesel a day, while Dakota Fred probably uses close to that amount.
There are four different water dredges on Bering Sea Gold show. The largest is the Christy Rose which cost $500,000 to build in 2009. The other smaller dredges cost between $20-$40,000 to build. So far this past season, the Christy Rose has found 282 oz of gold.
If we consider that the Hoffmans spent about $100,000 on equipment it is only 1/5 th of what was spent on building the Christy Rose. But if we consider the amount of fuel that is consumed by the Hoffmans mining gold in Alaska compared to the fuel consumed by the Christy Rose, it is a drop in the bucket. The Hoffmans have 4 earth moving machines running all day plus their big sluice box which is run by a diesel powered generator.
The Christy Rose uses a little diesel to get the barge out to sea, but they only have to power the water pump, backhoe and sluice box. I would imagine the diesel consumption for the Christy Rose daily is 1/3 of the Hoffmans.
Here is the difference. In a day of mining the Hoffmans get about 5 oz of gold. The Christy Rose has found over 75-90 oz a day on three different days. The Christy Rose dredge consumes 1/3 the amount of diesel but can produce at least 50 oz of gold a day, whereas the Hoffmans can only produce 5 oz of gold while they consume 2-3 times the amount of diesel.
Here we can see the EROI is much better for dredging in the Bering Sea than it is mining gold ore from the ground in Alaska.
THE SUBJECT OF POLITICS & FOREIGN POLICY
I read and watch a great deal of debate on the U.S Govt and foreign policy. I see a lot of people getting very passionate about their feelings in these issues. my articles are more on the physical side of the situation when it comes to the economy, precious metals and energy. I rarely write about the US Govt or what is taking place in countries throughout the world.
The reason why I stay away from this sort of debate is due to the fact that IT IS A COMPLETE WASTE OF TIME TO GO AGAINST THE LEVERAGE WHICH IS CURRENTLY IN CHARGE. If we look at the past, political parties whether they be socialist, communist, fascist or etc.. run for quite a long time before they disintegrate. No amount of protest or revolt works. In the end, it is the entropy of the system that takes down the political party.
The Peaking of Oil and the coming energy shortages will destroy the present political systems. The threat of these Drone planes flying all over the United States is nice on paper, but the future logistics will prove this system a HUGE FAILURE. There is no need to protest and try to keep this sort of SPY PROGRAM from becoming reality.
UPDATE ON THE FIVE STAGES OF COLLAPSE
In my THE COMING PARADIGM SHIFT IN SILVER, I wrote how the price of silver would take off when the U.S. hits STAGE 2 or the Commercial collapse. Dmirty Orlov recently did an interview on Max Keiser where he updated his theory of collapse. Orlov now believes that because of the continued manipulation of the markets by the US Govt and Fed that we will have all three stages collapse at the same time. Basically, the whole system falls apart at once and there is no time to protect ones wealth if you have not done so already.
STAGE 1 the Financial Collapse took place in 2008, but the banking system is still functioning due to the US Govt manipulation. When the system finally goes, it will take down the Banking System, the Supply Chain system (Commerical Collapse - Stage 2) and the Political System (Stage 3). Things will really get out of hand.
When we have this huge collapse of 3 stages at once, we will not have to worry about the Federal Govt and its Homeland Security and etc, but rather we will have to protect ourselves from our more unprepared neighbors.
THE COUNTRY LIFE WILL SURVIVE, WHEREAS THE LARGE CITIES WILL BE THE WORST PLACE TO LIVE
My wife and I left the big city over five years ago. We have goats, chickens, garden, orchard and fresh water creek on our property. We can live without the supply chain or the electric grid. We have a neat solar cooker that uses the sun to cook meats, grains, breads and vegetables by the power of the sun. The unit gets up to 350 degrees and can cook a chicken in 2 hours. The neat thing about it... the chicken will not get burned if you leave it in the sun-oven for most of the day.
Today, my biggest concern is not the breakdown of the system, but the collapse of the electric Grid and the failure of Nuclear Power Plants as a result. Living in the country can protect oneself from the negative forces in the big city... but not from RADIATION spewing from failed nuclear power plants.
This is why my wife and I are now planning to leave the mainland. I believe the probability of the FAILURE of the NUCLEAR POWER PLANTS is 100% at some point in time. How many go down and in what areas is up to chance. If just 10-20% of the Nuke Plants go down, it makes a great percentage of the country uninhabitable.
Well....that's enough for now.
HAPPY TRADING
