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A Classroom Without Walls

By Alexander Green

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07/31/10 Charlottesville, Virginia – Last November, my wife Karen and I toured the Mediterranean with a group of friends, landing one day at the Great Pyramids at Giza.

It’s not those marvels of the ancient world that I remember most vividly, however, or the majesty of the Sphinx, or the sweep of the desert beyond. It’s the camel abduction.

On the way to the pyramids, our guide told us to keep a wary eye on the local peddlers. “Having someone take a photo of you in front of the pyramids should cost a dollar,” he said. “A camel ride is about three dollars.”

Minutes later, as I was gazing up at the imposing Pyramid of Khufu, an older gentleman invited me to take a jaunt on his camel, a mangy beast who was, unfortunately, standing just upwind. As I looked on with mild interest, he whistled for the animal to kneel down.

The next thing I knew he was firmly escorting me onto the saddle and whistling for the camel to rise. Our group laughed and cheered as the camel driver led me off toward a rocky outcrop eighty or so yards away.

As soon as we were out of sight, however, the driver brought the camel to a halt and I was quickly surrounded by eight or ten Arab men shouting angrily at me in broken English to pay them each twenty dollars for the ride…now!

I said no and told the camel driver to take me back. He turned away as if he couldn’t hear me.

The group of men now pressed in tighter, feigning greater anger, as if I had somehow stiffed them all for the ride, which had so far lasted about 45 seconds. “Pay us now!” they shouted again, their hands stretched upwards.

We were…Read more…

Goateed Jon Stewart: Goldman Abolishing Swear Words, Now Makes Sweet Love to You

By Rocky Vega

07/30/10 Alexandria, Virgina — Goldman Sachs not only has a unique knack for practically minting money, it’s also got a special way with words. Already well known for “doing God’s work,” is also professes somewhat of an expertise in a more carnal sort of profession.

In the clip below, from Jon Stewart’s Daily Show, you can learn more about Goldman’s renewed emphasis on correcting the problem that clearly matters most to investors… its dirty, dirty language.

This post came to our attention via Jesse Felder’s blog post on Goldman S@#%$ wanting to make sweet, sweet love to you.

…Read more…

US Economic Outlook: Indebted to Death

By The Mogambo Guru

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07/30/10 Tampa, Florida – John Stepek at MoneyWeek.com, talking about the “European bank stress tests” that were “a whitewash, of course” said that it kind of reminded him of “one of Gordon Brown’s budgets.”

My immediate reaction, of course, and speaking as a true American, is to ask, “Huh? Gordon who?” as a clever way of reminding these British guys that real Americans, like me, don’t know about anything, or care about anything, that is not about America and/or Americans and how it affects us, as Americans, but mostly me, personally, as an American.

And this goes Freaking Mogambo Double (FMD) for some dirtbag, lying piece of worthless has-been British ex-prime minister named Gordon Brown, which rhymes with “clown,” which could explain how he is infamous for having sold all of Britain’s sovereign gold at the exact low price for gold, which makes you laugh at him – hahahaha! – even though the record-low price is more probably explained by the fact that he sold all of the gold, glutting the market and driving the price down.

Usually, I would just dismissively say, with a condescending sniff, “Bah! More euro-trash acting badly!” and let it go at that. I soon realized that if I had, then it would certainly have been my loss, as his next sentence is pure gold as regards the economic state of the world.

He wrote, to my delight, “You know the sort of thing – a glossy sheen of half-truths and not-quite-outright-lies disguising the true horror of the underlying economic situation.” Bravo! Wonderful!

He goes on, although almost anti-climactically, “A…Read more…

More Rampant BIS Gold Swap Speculation

By Rocky Vega

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07/30/10 Alexandria, Virgina — Not one to let a sleeping dog lie, today we’ve encountered a new explanation for the mysterious Bank of International Settlements’ 380 tonnes in gold swap operations. Before this week, James Turk, co-author of The Collapse of the Dollar, had yet to voice a theory on the swap. However, after learning Portugal is taking an unusual step (as a sovereign borrower) — of setting aside assets as collateral against derivative transactions in order to bring down its funding costs — Turk couldn’t resist sharing his hunch.

From the Kitco Commentator’s Corner:

“It has long been recognized that Portugal is active in the gold market. It had loaned gold to Drexel Burnham in the 1980s [...] So it is not farfetched to assume that Portugal had loaned its remaining gold to a commercial bank, which meant that Portugal was exposed to the credit risk of this bank.

“Now consider for a moment, what if that gold loan had been made by Portugal to Citibank or some other zombie bank? It wouldn’t look very good on Portugal’s balance sheet to be owed 380 tonnes of gold by a near-bankrupt institution. Given that Portugal is taking steps to ‘to reduce its funding costs’ as the FT reports, it would be logical for it to get rid of that gold loan.

“The best choice of course would be to demand repayment of the loan and put the 380 tonnes of gold back in its

…Read more…