Friday, December 31, 2010

Strong Dollar/Strong Yuan Gold Play

That is right, no longer will I use the terms weak dollar and strong dollar to describe how it is that the currencie is panning gold.  It was not a precise enough statement.  I am going to run down exactly how the dollar is panning gold.  I hope I was not confusing anyone with my thoughts on how gold will rise on a 'strong dollar' and also a 'weak' one.  After noticing that it is the Yuan that has driven dollar weakness this week, I will now be saying gold is rising and will rise on the back of a strong dollar and a strong yuan.  The same win win situation for gold lovers, just a different lexicon.

The oscillation between the currencies has and will continue to "pan" gold.  The yuan strength will leave gold  primed for breakouts, and then on dollar strength the metal will surge to new highs.  The gold trade was set up on inherent dollar weakness.  Once the Eurozone collapsed and the risk was taken off of the Euro was when this trade really got moving.  Then the Yuan took over the policy upon the flash crash.  Was the series of events last spring coincidental?  Were they purposeful?  No matter the questions, the answer is gold.

What a day, huh?  Gold reaffirmed its status as champion and crushed all comers on the back of a....wait for it....strong Yuan (I can't get enough of this win win situation).  Once again, shall we review?  The Yuan has been crushing the dollar and gold settles in nicely on this.  Then when global fear jumps out, the dollar gains and gold runs alongside.  The trade will continue until the gold is all panned out of the dollar.

Facebook will be bought by a Tech Giant

I saw a headline that facebook had more hits than Google this year.  That is outrageous.  Facebook is total isolation/narcissism.  What is happening is going to be people's most epic failure.  Constant window dressing will never get rid of the truth that life is pain, and life is suffering.

I am not against enjoying oneself, staying in contact with friends, taking pictures, sharing time, but if anyone spends longer than half an hour around the water cooler something is up.  It is hard to judge the collective, but, it is obvious that the 1st World is rather lacking in this sense.

Unless our mettle is sincerely tested by an outside force I doubt we will recognize our surroundings.  While the dollar holds its thin grasp on people's reality, I think there will be a bid on facebook by a Tech Major.  I think Google, Apple, and Microsoft all could provide the support to make facebook the biggest thing since sliced bread for years to come.  A company flushed in cash, like GE, could also make an attempt to buy it.  Take your pick as to which company would buy facebook if given the chance.

Then again, facebook may stay private or go public.  There are going to be variables.  But if facebook is bought out, the new company would be a monster.

Dollar Blowout Sale

Spend 'em while you got 'em, the dollar might not be around in a year.  It is true that maybe none of the major current FIATs will be around; they will likely be replaced by a global standard, a new world currency.  Whatever the order of the fall, one thing is certain, the existing FIAT regime is dead in the water.

The reasons I think the dollar is in worse shape than other FIAT are numerous, but there is one that stands out above the rest.  The dollar supports the US War Machine, and is the most blood soaked FIAT in the history of the world.  FIAT history is only several decades old, which is one reason I ask 'How long will the FIAT experiment last?'  The dollar leads the dive head first into the abyss of failed finance.  How much longer will it last?

As others have said, it is possible that the dollar is dumped in coordinated unison across the globe one day or night soon.  If a run on the reserve currency started, it would be hard to stop, especially considering the Fed, which is the custodian of the dollar, is out of gun powder.  It is ironic that the US has left itself so vulnerable.  The military is the only thing the US has that the world does not (other than the reserve currency).  I am surprised they let it go so easy.  And they did let it go.  There is no way the dollar will trade for oil very much longer, and once that happens, the military is up the creek with no paddle.

FIAT is a made up fun-fun happy go lucky concept that 'all debts will be paid by the debtor.'  This conspiracy will end in tears for many.  Any believing the lie will be caste out of the old and thus the new financial world.  The only thing that will save wealth is gold, unless one lives sustainably, which is like one in a hundred Americans at the best.  Get monie!

Thursday, December 30, 2010

Asia to Buy the Fuckin' Dip

Asia likes gold and wants nothing more than to have it now that it was lowered by New York Algo Trading Machines.  Asia thanks the US for dumping their gold.  They would like nothing more than to continue to buy at $1400.  If the deflation goes unnoticed, why would the creditors care?  As long as the dollars the Central Banks swap are deemed non negotiable, both parties, as debter and creditor, will stay in business.

What is austerity to the Chinese?  There is none and they are accepting a rising currency.  Their story would be impeded if wages don't rise.  On the other side of the equation is the debtor.  Now austerity must be implemented in an economy that is reeling from the depression that never was.  The sides have little margain for profitability.  Sell low priced products in China.  Seems to be the only sure bet when the American economy has a long way to go down.  Will there every be 'High End China'?  Probably not.  Maybe more than now, but how much potential for growth is there?

Remember GS and BP Took a Dive

I was parusing stocks and remembered that Goldman Sachs threw a fight back last spring.  I then remembered that BP basically did the same.  By allowing this massive deflation, the inflationary forces cooled; money and oil both got pulled back from risk on.  Now I am wondering, will the inflation be let out of the spigot?  Or does the New World Oder have another trick up their sleeve?

It would be best for the fascist to pull monie back to the dollar.  This way, the Fed can print as much as Treasurie need.  If the wheels fall off that trade, the race is over.  So by adding drama to the markets is in the best interst of the market itself.  Both sides have been played.

But have they been played out?

Finally the finacial's have pasued during the rise that has seen Citi and GS higher since June.  Bac was not spared the same, and JPM has traded evenly.  I could see JPM taking a hit if they try to hold their silver shorts while silver rises through range after range next year.  Or maybe Bac crumbles under fraudclosure and that is the deflation.  Whatever way it goes, it will end this year, and probably sooner rather than later.

Always Strapped

Knowledge is power no doubt.  It does not take an oz of metal to move your body up a hill faster than a coming fire.  You do that on your own.  It is what one does that matters.

Give me a pen and I am free, give me a mountain and I will climb it.  The world is my oyster, as it is everyone's.  No matter how we go about our way we will affect the world.  It may be slight as a butterfly's breathe but all matters.

In life there are many choices.  Being prepared is the first choice.  It can be overdone but it is necessary, or else expectations begin to mask the situation.  This is how problems happen.

With wealth, it is the same way.  Expectations should not be had of a house when it is in suburban Las Vegas considering the house will be worthless in a matter of years.  Expectations of US bonds should be nill considering the US is bankrupt and only functioning on the belief of fiat value.  That term, fiat value, is ab oxy moron.

So the gold is insurance.  It is a physical thing that is always reliable as a trade.It is rare, and it is highly fungible.  It is perfect monie.

Testing the New Support

Take her for a spin!  The support level has hit, and if gold bounces at $1400 it will be confirmed.  I love today's action!  It is just how I wanted it, and word to the wise, the bottom is where the big monie is made.  Do not let the haterz stop you from using your illusion and watching how gold's price moves naturally and manipulated.

Wednesday, December 29, 2010

Strong Move Heading into Asia

I am sticking with a correction tomorrow because it makes sense but I thought I would point out the bullish action heading into Asia.  Silver for example opened lower but picked up right after.  It made  a nice little checkmark pattern if you will.  There was a similar move two days ago at the same time.  Silver is very bullish.

Gold is following the same trend as it did two days ago, and that was right before todays big day.  Platinum is trending lower.  I could see platinum consolidating at $1750 during the next 24 hours.  Will there be another big day of trading tomorrow?  We will see.

How to Trade Best

Keep an open mind and you will do your best.  This is true with all things.  Right now, and I mean right now, precious metals look really strong and the dollar looks like it could fall off of a cliff.  Maybe we get to $1440 on the back of a weak dollar?  Like I keep writing, weak dollar/strong dollar are barely nuances of the end game.  The end game has real monie taking the reigns of the world's economy.

The Question Remains, 'Will They Consolidate?'

The Question Is, 'Will They Consolidate?'

Precious metals are very volatile and now the question, 'Will they consolidate now that they are at the top of their range?'  It is a fair question because of volatility, for better and worse.  If you sell, you could miss the next big big move, but if you do not sell, you could have made a better trade.  The short term investment strategy is trumped in the long run, as the trend for gold price continues.

If silver consolidates it will be in the range of $30.  If gold does, it will be at $1400 per Oz.  How is that for round numbers.  I picked them because they are right between the recent low and high.  I expect the move to happen in the next 24 hours.  I would then expect the next trading day to see gold get a big gain.  I am still waiting for back to back 'up ' moves of the precious metals price.  I think there will be a week in January where the metals gain 5%, and I think that should be a knockout punch on those who do not understand, gold is monie.

When DXY 80 Breaks, Have No Place to Stay

The dollar has traded at DXY 80 forever.  The upside came and so did downside.  Over the last few decades, DXY 80 has been the norm.  What that meant for gold, equities, inflation, and other metrics of measurement is what stories are made of, but the crumbling of the dollar will be the end of it.

I can not say enough that Bernanke wants a weak dollar.  All economists do.  It will 'spur trade', and more than anything, it will alleviate the debt.  If bond prices stay high, like the Fed wants, then interest stays low.  This low interest rate is needed to keep the ponzi churning.  The weak dollar is the backbone.

Today Treasuries strengthened and the dollar weakened, what does that tell you?  That tells me the wheels are falling off, and Bernanke is driving off a cliff.  If the dollar makes a significant break below 80 then we will be in a brave new financial world.

Tomorrow I think the dollar will stay pinned at DXY 80.  I think gold and silver will sell off.  Then, on the following trading days, I think there will be either a big move down or up for the dollar.  If news comes out of Europe like, 'Spain Will Default' I think the Euro could get wrecked.  Then the dollar could move to the top of its recent range, at DXY 81.5.  This would have gold testing higher than $1500.  The other scenario is that the US reports bad news and the DXY lowers, to 79 abouts.  Then gold would see a similar move up but probably only to$1440.

Gold trades better on a strong dollar.  It is part of the risk off trade now.  It is also risk off as no one, and I repeat no one owns gold.  The matter is that it is a small market, that is why ist is risky.  I know, I can hardly believe it.

Sit Back and Watch the Cows Come Home

For any day spent worrying if gold will go up or down, it is the flat days with a hint of strength that put my mind to ease.  No matter how the news is spun, gold is undervalued, so is silver, and so is platinum.  The precious Trinity may take lumps as a barberic relic that only is good used as a commoditty, but as banks empty the coffers of the public good, the cows will come home from pasture. 

Yes it takes work to keep cattle together and going here and there, but at the end of the day, the security of knowing that one has a store of wealth is easing, and what else need there be.  The work put in on the long days up and down the hills, from inside to outside, are never avoidable, but neither are one's dreams.  You gotta dream, plain and simple.  The body and mind require it. 

Gold will probably sell off tomorrow.  Traders, always confused why gold is worth anything at all, will want to call it down.  Gold is known to consolidate after trending higher day over day.  Look for its price to come down tomorrow, and for the build up of the next epic move to start shortly.

Of course, there is much news that can favor gold that could send it sky rocketing as soon as tonight.  The Euro is said to be on its deathbed (as all currencies are).  With a Spanish default in the making and Ireland fresh from the brink of its waterboard death torture, the Euro could very well pull back sharply.  The dollar, not much the better if at all, would "strengthen" marginally.  Gold has traded well on a strong dollar for the more of the year and I see no reason for a change in that trend.  If there is a safe play at this point there is nothing better than gold.  This of course has been its history over time.

Tuesday, December 28, 2010

Sell It Off

Go ahead, sell your gold, see if I care.  Asia has precious metals trending to consolidation.  Silver would consolidate around $20.70.  Look for it to trade around there when NY opens.  I am still waiting for one more big move in silver.  My long term target had silver at $36 by the end of '10, now I would love to see half dollar raises day after day some week soon.  Imagine fifty cents here, fifty cents there, and soon, a new range.  After yesterday's move, what if we had two more days straight like it?  $31.50 by '11 sounds pretty good huh?  Yes I am excited!  Silver is very volatile and can make these types of gains.

Platinum is still trading in some sort of haze.  It has not broken out of its all time highs, where as gold and silver are at all time nominal highs.  Compared to platinum they have made gains.  I am looking at platinum having the greatest long term upside out of the three.  The first move is on deck.

I think that platinum will make a sudden move to $2200 one of these weeks.  It will happen when silver goes to $36, after silver manifests absolute demand (and then the next move would be when platinum broke its all time high of $2200).  Gold has huge upside, but it will be the one metal the Central Banks are holding on to and gold may be the one most manipulable.

Which Currencie Will Fail First?

Yes that is a dramatic statement, but I do believe that there will be a point in time when FIAT is seen for what it really is:  a failure.  As for which fails first, my guess is as good as any, but I do have some thoughts on the question.  First, which are the most oversold/overbought?  How does debt correspond?  Does this question, which currencie will fail first, even matter?

If one is looking to make money short term then it will matter which currencies fail first.  What ever the order is could play a role in equity positions and bonds.  I will discuss each of these points with the individual currencies.

Let us begin with the Yen.  I believe the Yen is the most overbought one.  That would mean it is the strongest currencie right now.  For that reason I think it could sell off.  The Japanese debt is huge and they have a weak Yen policy.  Shirakawa has the Japanese PPT buying ETFs on the open market for lord7s sake.  If there is not a more desperate move than that I don't know.  I think the Yen will not strengthen more than where it is now, vs the dollar, and could move to 90 in only a month if the conditions are right.

The Pound Sterling is overbought, but not as much as the Yen.  I think that because at least the Brits are doing austerity measures (not that I agree with austerity), which the Japanese are not.  I think the Pound could continue to trade around where it is now, but it could go to $1.40 vs the dollar.

The Euro is a mystery to me.  The Euro Zone is not supposed to print money out of proportion with GDP, but they do.  They have a massive debt, but they are slowly instituting austerity.  There currencie is weak, but compared to the dollar?  I think in the end the Euro will win out only because geographically Europe is well situated to survive peak oil.  I think that that reason alone will keep the currencie afloat.

The dollar is the world reserve currencie and if it fails all fails, but I think that that is a distinct possibility.  What better way to end the Neo Keynsian system than to flush the Chief asset down.  The US has done no austerity and continues to spend trillions on worthless bank propositions by the Federal Reserve.

I think the dollar has the bullseye on its back because what better way to make monie than to take down the giant?  Ask yourself, which trade would make the most monie?  The dollar is the reigning champ and it would be a heavyweight title fight.  I think the dollar is past its prime.  I think it goes first, and takes the system with it.

Predominant Buying

Predominant buying came out of the woodwork today at various times throughout.  There was between 4-6 major buys today, and that is obvious by the bottoms of the chart; bottom, and boom!  Another buy.  Do yourself a favor and look at the graph from today.  Where the big moves start.  Big buys came out of almost no where.

At the beginning of each day the LBMA members gather and decide how many tonnes of gold they will sell, and at what price.  The selling and buying is coordinated from both sides.  This is how the LBMA has worked for almost a century.  The other players like the COMEX operate a little differently, which is why these large purchases come in New York time.  Interestingly the monie has moved into the rest of the world in masse.  How much longer can the LBMA fix their prices?  Also, will they want to keep the price suppressed for very long?

All the other markets were confused by these currencie moves.  Oil was up on supply concernes.  The dollar was up on risk concerns.  Stocks were pulled across sa wide range of prices.  Treasuries are failing.  Nothing looks better for gold.

Mining equities will play this better than anything, like I said last night.  Oil corps will also make large quantities of cash.  If Bernanke continues to print, and it is the Federal Reserve that prints, all equities may be inflated.  The farce continues.

Call out at 5:30 has gold and silver trending with the dollar lock step.  The strong gold strong dollar trade continues.  If risk is on there could be a dollar/gold meltup.  This would happen because gold is monie and if risk is off investors will want monie as to stay liquid.  Gold does provide perfect liquidity, as it is fungable, a unit of account, and a reserve asset.  Today people bought gold be

Otherwise maybe Bernanke continues to monetize the debt by printing dollars, and continues to inflate the dollar, and gold rises in price accordingly.  Of course the squeze could come from both sides of the equation.  WHat I mean is DXY could stay at eighty, wish washing between 81 and 79.  All currencies could wash out but still trade evenly.  Gold would domianate this scenario.

Basically, nothing stands in the way of gold to continue to dominate the economic landscape for the next decade.  Not only does it have the fundamentals to provide as a great asset, but technically the price could increase due to supply/demand equations.  As there is less and less gold mined every year, and if demand continues to rise, their will be sharp price action to the upside.

Monday, December 27, 2010

The Next Move for Miners

I think precious metal stocks have consolidated nicely and I think there is a lot of upside here.  ABX, the world's largest mining corporation was flat today even though other miners were down.  I think that shows the strength of spot, because ABX also has the world's largest inventory and reserve (per miners).  Once the price of spot goes up, and I think it is on the doorstep, one move away from $1440, then the producers should reap huge rewards.  Mining stocks should benefit nicely from this next move up which is setting up because of the inability of all governments to solve their credit/debt problems.

As far as middle players like SLW I think they will benefit the most.  The middleman is usually the most profitable position to be in for business and with the huge upside to silver and all precious metals, there will be money made on this play.

For example I think SLW is priced well here, at $37, and I think it will only take two or three days to get the price to $46.  The move may have started already.  Today's price action saw SLW move bottom to top with high velocity.  If Tomorrow and Wednesday can play out, we could be at $46 soon.

Now That is My Kind of Action!

Look at how gold and silver jump as the dollar is dumped.  Strong dollar and weak dollar have been good for precious metals since the Fall of '08; gold traded directly inversely with the dollar until the dollar's reversal I called for on April 21st, but then precious metals traded even better on the strong dollar.  We then had a weak dollar that gold traded on this fall, with a little pause in the whole game until now.  So now look for some epic moves, and yes weaker dollar or strong dollar does not matter, they both return monie.

I know the Euro is weak but all FIAT is.  I do not know why the DXY could not move down from here.  Gold is worth many more dollars than its price and could flatten the dollar.  But the old way of finance is that when risk is off, money goes into bonds and this is bullish for the dollar.  I think if nothing else, the trend of whipping from back and forth between these two trends will continue into '11, but at some point the wheels will fall off.  I prettiest pony in the glue factory means nothing, and besides, gold is a Thoroughbred and we should not waste its time but on the track.

As far as China hiking rates, what does that means?  Why did they do it?  They failed a bond auction on Wednesday and they needed the buyers to want to cone in, so they raised rates.  Why are people scared of Treasuries?  Because the are scarred of debt.  What is the opposite of debt?  Monie, get monie!

You Must Have a Case of the Mondays

Platinum rocked the Sunday Asia open, but from there the rest of the news ain't nothing new.  Gold and silver stay on pins, financials make for the door, and currencies can't figure out who is the prettiest piggy?  I did not enjoy the AIG pump or any of the Banks gaining today.  While TARP/STIMULOUS/QE continues banks should be returning monie for the taxpayers or something.  I mean, I do not agree with usury, but the cash at Majors is not legit and needs to be reappropriated.

Friday, December 24, 2010

Oil: The Final Frontier

Evidence that monetary policy is affecting the price of staple goods shows how all prices for commodities have risen.  From cotton to soy, no crop has been left cheap.  Geography may have played a role in the price fluctuations, as space is intricately interwoven with time, but a uniform increase is more than naturally ironic.  It is a sign.

Oil has been let to hover in a tight range for the last decade, an average of $80 per barrel except for the brief price explosion before the collapse of the financial system.   If the Federal Reserve's price stability mandate means anything, it means keeping gas prices stable.  I will point out the ludicrousness of keeping a ' unit good' stable by using a paper IOU as collateral, and I will point out that the 'Federal Reserve Note', the paper currencie that keeps the Bank solvent and the currencie the Federal Reserve uses as a proxy to determine price stability, has no effect on oil production, as oil is not an excess commodity of the United States of America, let alone the Federal Reserve.

This is because a price rise in oil affects all inputs-not only commodities but any good that must travel.  Oil is the all important input, and if its price is rising, that means the gig is almost up.  A high price destroys discretionary spending.  This would wreck havoc on the already fragile economy.

Is there anything ominous about the recent price increase during the 'Holidays'?  Well nay sayers say the recovery dictates the price, but you and I know we are headlong in a depression.  What if the power grab becomes desperate?  What if the final squeeze of America happens now?

There will be blood when oil stays over $105 per barrel.

Tuesday, December 21, 2010

What a Day For a Solstice

All is well in the markets on the winter solstice, at least for the fascist.  The only thing that is not going perfect for the system is that bonds are not priced higher.  Then again, maybe now is a buying opportunity, if the Federal Reserve can get bond prices back to where they were highest.  Other than that, all is well!

How is it that the dollar, equities (especially the Russell 2K), and even the precious metals (platinum is doing great today, and gold and silver are doing fine too) can be up on the day?  Well look no further than the PPT.  How to know?  First, news from Zerohedge has non US banks increasing their silver and gold short positions.  Isn't it ironic that JPM just alleviated many of their own short positions?  Looks like a new proxy for the US government, or at least, a discrete one.  It is a little known fact the CIA has operational hedge funds off coast to do the US government's dirty laundry.  Now that the House of  John Pierpont Morgan is done as the 'Silver Proxy', the CIA will takeover as chief lackey.

The blatant manipulation in equities, obviously is another tip off.  Not only are bank stocks doing abnormally well, but precious metal stocks are hurting.  This jacknife trend has to do with the PPT selling a long trade of SLW and buying JPM et al.  The PPT got the drop on the miners and other precious metal socks before the open.  The open sell orders had futures for the sector red all night.  It really is the maoist and fascist trade in the history of 'free trade'.  Who is surprised when former Presidents sit at the head of the board at the world's largest miner?   Mulrooney has always done thy bidding, and can be called old faithful.

And just as reliable as the fascist presidents are the fascist bankers, who being no less than reliable, own one trillion dollars as proxy by the Federal Reserve Bank.  This number means the Treserve is the number one owner of its own debt.  This boggles logic, so do not even try to figure out how this is manageable.  It is not.

The plan for management was into a police state.  This was why measures of austerity had not been promoted by the US government in real terms of deficit cuts, because the police state was not in full effect yet.  Two years past the Fall of '08 has made the US ripe for positioning.  The question now is, how will the government and its forces afford it?  Will the military cease its ungodly wars abroad as its domestic empire collapses?  The opposite is also true, for how will the dollar pay for oil after the US becomes an island Nation (albeit abundant in resources)?  The question is not, can America be self sustaining, but rather, how sustaining will it be?  Pittsburgh proved paramilitary is a paranoid function of government more than anything.  As a police state, there will be no nourishment for anyone except a governing authority.  The authority was only one goal, and that is this police state.

Americans and their amendments will beg to differ with the fascist oilgarchs, however.  It is an amazing thing that the Constitution makes up.  Guns are personal proprty, and the right extends to all.  If their is a necessary evil, it is private gun ownership as protection from other humans, in the form of handguns.  As far as hunting is concerned, well, giving that up would make humans as docile as cows.

Platinum, which is still the only of the Trinity to have not broken past its all time nominal highs (minus the Hunt $50) is trading in the tightest of ranges.  The band is almost one of suppression.  It appears Platinum is being kept in the opium, or rather, dollar den.  To add, now an hour after I typed the former, platinum has broken out of the previous range.  It appears silver and gold should follow shortly.

Many moons ago I predicted silver would be at $36 today.  As it was around $18 at that time, I knew a doubling was in, and I took the higher price.  But it was from the near low of $14 that it would occur.  Still, like the moon, silver shines on.

Monday, December 20, 2010

High Volatility; Parlour Tricks and Pick Up Sticks

The reason for a breakout in PMs will be because they are currently being sold and leased on a massive scale.  Any big move down is a major indicator of one, and they are happening multiple times a day, NY standard time.  Then even after hours, like with platinum tonight, there are massive selloffs.  This gives support more than anything else though, and that is why, even though most of the selling is illegal, as it is highly leveraged, the favor is for a strong price down the road. 

A future strong price is always true after times of massive selling.  It was the reason Nixon close the gold window in '71; he couldn't afford to lease any more gold because the price was increasing past his selling price.  Then of course gold has been the best investment since, as it has maintained prime stability.  In this volatile market, stability is a price unparalleled, thus why precious metals 'allure de shine'.

The market makers, from the LBMA to the NY/WASH President's Working Group on Financial Markets, have a large stake in this market, but their unwind is at hand.  Watch them spin SLW for NFLX overnight and by day let JPM draw dawn their naked short positions.  Let not forget Asia is a control market by all means and look how the pigs do fly!  All is majok though, and none exists but the real.  The rest are parlour tricks and pick up sticks.

Speaking of gambling, the dollar is showing major signs of topping again.  The only thing that could get it above its DXY 80 orbit is a Spain or Italy default.  It is one thing for Greece and Ireland to accept massive penalties by the IMF, it is another for the core to set ablaze.  Then again, if it gets that far, the game should be over, and besides, the US has California, New York, and Illinois to match.

Friday, December 17, 2010

Whistling Dixie; Just the Trends, 'Mam

DXY's chart was very bearish today, only with the one huge hike after having been sold out in Asia and Europe.  Very bearish.  It had one good massive move today and that wreaked of manipulation.  Contrast gold and especially silver's charts.  During the start of the dollar "rally", the precious metals began to turn down, but caught wind after only a moment before turning up.  Remember, gold has been trading better on a stronger dollar than a weaker dollar since April 21st.

A Perfect Day!

First I would like to point one thing out:  see how we are coming into the three day average (gold chart)?  This is very common.  Consolidation on the third day is standard.  If there is one up day, and then a down day, the third day should finish right in the middle.  This trend is the most common trend. 

I would not be surprised if silver made its way down and finished at $29.  Platinum is still the strongest of the three right now, and may finish on the high side, let us say, $1697.

I love having precious metals break out on a Friday.  It shows the real mentality and uncertainty of the market; for all of the talk by dollar bulls this week, precious metals still reign supreme.

Congress Pillages the Country Into the Night; Boy George was a Genius, Who Knew?

As an empire surrounded by ashe burned into the night, its "government" continued the paradigm that furthers the division of labor; the poor will get food stamped before they return to their prescribed "dull" lives, the television watched as an idol and the "monied class" can make sure they can keep their heads in the clouds, worried only by runs in their stockings, not runs on their banks, as shopping for Nordstrom leather and cotton is so much more pleasing than the thought of waiting in a line at a bank.  It seems the cuts were sold as necessity, and each the "upper" and "lower" (term in context) classes needed theirs.  For the rich, it is not giving some millions to public works, as the government will spend it poorly, and besides, the rich think they deserve all they earn.  For the poor and disheveled, it was an extension of their insurance that was pro bono, which seems demonstrative of the government to say, considering unemployment would not have been a problem if NAFTA had been put down.  Too bad Billy C sold out just like Barry did.

I was not shocked that William Clinton was caste before the Fem Dems as a Tax Banger, but I was surprised it worked?  I should not have been, for politicians understand economics as adolescents understand etiquette.  Was it the whole of the government that sold America out?  Apparently, that statement is answered unabashedly, 'Yes'.  This group of fascist technocrats are blind and deaf in the face of reason, and will never tire of carpet bagging the "middle class" standards the world had relished before manically relinquished.  What is the real difference between the puppet presidents of the US?  If Obama is renewing the "Bush Tax Cuts", should it be Bush that is looked on as 'Economic Savior', or at least finally, Obama's prototype?

The circle has come complete with the Tax Cuts; Obama changed not but one of Bush's policies.  Obama is Bush is Clinton is Bush is Reagan is Carter is Ford is Nixon is Johnson.  I will end with Jack Kennedy, as he at least listened to his brother and stayed away from total fascism.  Even though Eisenhower was friends with some weird dudes, I liked his warning of the coming Military Industrial Complex, but no other man since Jack has sat tall in my book, and many before him were naive.  How many solid Presidents have we had, anyway?  It should not take more than two hands to count.

So it was that if we are to favor Obama, we must favor Bush, and vice versa.  For all are under one party now, fear not a lesser or two evils.  With Obama ramming Bush Tax Cuts through, and by the accepting Democrats, the country has officially been made for no one to deny.  Obama supporters bow to Bush, and let the Red's paint themselves blue.  With nowhere left to hide, all the waywards will be holding hands as the burn jumps the tree tops.  Was it a fear of nature that led the waywards to the forest?  That would be ironic.

With the flame of fascism on high, does that mean the culture will now face the shadow of democracy, and have its subconscious pattern pointed out to be a fallacy?  What is righteousness other than cognitive awakening?  Is this the righteous moment that awaits America and the world, 'It was all a joke, and the joke a lie'?  How will Isis deal with her love gone lost?  If it is but a myth remains a non sequiture; for Isis will make her moment as she will.  For nature it is only nature.  So it shall be for all.


Now that the hub bub is done, the deal is called a "Compromise" for the sides of this one entity.  Double speak as always from the main stream media.

America is Atlantis

History is nothing but revisionista; moderately corrected at any chance by victors of viceroys.  How long do the annals of time go back but forever?  How correct can the imperfect peoples of this earth be when it comes to the tales?  Surely counting myth we have much understanding, but however smart our running thoughts surely are not absolute.

Recent discoveries have the Sphinx as a 12,000 bce monument, the same time reference as Stonehenge.  King Aurthur was to be buried on the Isle of Man, but why not sail to America?  It was known long ago that there was another continent across the Atlantic.  Myths by Vikings depict the realm Vahala.  Mayans guided stars.  The world is smaller than we know.

Now America sits in a perfect isolation from the rest of its world.  Guided by oceans on either side, America stands alone.  Its lifeblood circulation has been withering since the early 70's, because oil production peaked then.  Soon it will be its last tool, the dollar, that will fail, killing America in her hopium high.

Thursday, December 16, 2010

Corporate Takeover

The corporations may now think they have their ducks in a row.  I don't blame them, they have had it easy their whole existence; Rockefeller still runnin' things, 'Yo!'  From their point of view, there may be a silver thorn in their side, but if they are worried then they will pull at the string.  Their trick is to wait as long as possible to pull the proverbial chord so as to milk the system of all its heavenly glory, and that meant waiting on peak oil. 

The next big monie move should have massive amounts of dollars moving from the Major Banks into the corporations.  Is there any other option to make big monie now?  Other than to be a corporation itself, with the peak of finite resources, is there a way to become rich other than one's own ability?  Easy credit is now gone.  Lady luck has walked out of the theatre. 

The balance will have to be kept without tilting things in any which way other than equities (and also not to show too much favor to the DOw and commodity corporations), yet big monie will roll out of sovereign debt instruments (the dollar et al) and towards the monie magnet that is commodities.  The President's Working Group on Financial Markets will try and keep the game in check as they have for decades now, but it will be difficult to keep the big monie from pouring into oil and gold when even the normal person is getting into silver.

Unfortunately not everyone will be getting into silver, let alone gold, and few have the opportunity to own an oil rig let along a gas station.  It will not only affect those who have not gotten their foot in the door, it will affect everyone equally.  How often do people rely on favors?  Without precious metal, everyone will be asking for help.

The IMF will of course ride to save America of fallen glory, saying 'Look how it has worked in Europe!'  They will offer at least some assistance, 'You do not want to fail, do you?'  There will be new debt issued against the old, with a new currency promoted by France and Russia, backed by China and Germany, and there will be issued an according transfer of former debt, to be repaid in whatever the name of the credit:  dollars, bancors, what have you.  Where someone made a $100,000 year pension, they will receive a $10,000 check, because that is how many dollars they deserve vs. bancors.  So the retired Arizonian moves to south China, live in a hi rise condo, and still watche Glenn Beck on Fox.  Ain't it grand!

How could this happen?  China is connected to Russia and the Middle East via land routes, which means easy access to natural gas.  America does not have the natural gas to facilitate peak oil.  Enough said there.  What is the difference between the whore houses of Saudi Arabia and Nevada?  What is the difference between the House of Morgan and the House of Saud?  There is none and now that distinction can be realized for what it was; a shame.

The new way, and whatever that may be, will have upside of course as communities will bond out of necessity.  That is what gives me hope.  Everyone can see their place in it is my hope.  We have come down a path that got us lost, but we should not jump off any waterfalls until we have seen their wells.  It is time to climb down and find out if the waterfall that we found is worthy of a jump or not, and if it is too shallow we can find another to jump off, and have some fun.  My point is, I think the corporate shell game is shallow, and I think it would be best to move on from where we are.

Wednesday, December 15, 2010

It Was Asia

Who dropped the bottom out of the prices of treasurie bonds, equities, and precious metals today?  Look no further than Asia!  That's right, big monie messed up the US so as to buy into any move, or at least to sell the news:  the US is going for broke.

If you were to follow the US, as Asia does, you would trade away bonds and equities for cash to buy back into precious metals at a lower price too.  This way, Asia eliminated any pesky move coming around the bend, and gives itself the opportunity to buy back in low into whatever it is they have been buying lately [cough, gold, cough, cough].

Waiting on a Breakout

I have been waiting on a breakout for a little over a week now.  I expect it soon.  The dollar is dead in the water, hence the grand looting by the Congress.  It is only a matter of weeks before the DXY moves to 66, whereby it should be announced that 'the former FIAT system has failed.'

Whenever this break happens gold's first move would be to $1440, then to $1500, then $1650, then $1850.  There is always consolidation, and it is to be expected after these moves.  The move in its entirety could take months, but it will happen.  The following moves will have gold doubling over and over again until the Dow is even with the price of one ounce of gold.  The end result may take years to register, as modern day appears slowly to most.

Market Crash

Double market selloff today, as the market was top ticked twice on the brunt of a "strong" dollar.  The dollar is testing resistance, and resistance is at 80.5.  Look for a selloff on the dollar to happen as soon as tomorrow.

Although I have not got the moves in PMs that I had been calling for on the week, I did get the consolidation I called for.  Last weekend, and I always decide on the week ahead on the weekend, I called for a consolidation on the news of Ireland's bankruptcy.  Little did I know the Tax Cuts were also going to make the news.  This is the US Government front running the news.

Today the dollar has tugged the rug out from all markets.  Not even the US Bond market was safe.  PMs are barely holding onto their ranges.  Interestingly, Platinum has had a good day so far, in the face of a strong dollar.  What is causing this and how is cash still King?  The unbearable darkness that is the FIAT is trying to make one last desperate attempt at regaining control of the FIAT ponzi. 

I am willing to bet China or some force is sending a signal to the US about their Tax Cuts.  The tax cuts will further the US bankruptcy, a bankruptcy that is unstructural in nature; there is no way to repay the debt, other than to sell US land, and that would only happen as paper deeds from government to government; Americans would never be owned by another country, as they have proven over the years.  I do not think the people would allow the trillions of dollars owed to mean China would own the whole continent.

Europe Anyone?

News today that Greece still burns (what is in a name!) and Ireland may shortly join them in a riot.  The political yet also economic squeeze is coming from East and West now.  It is surely to join the middle of the continue in ashes.

Being over here on the fairy island across the Atlantic, I have very little ability to know what is going on in Europe.  I am curious to hear the stories of the people there.  If anyone could, please share with me the thoughts, concerns, opinions, and actions that Europeans have and will take, I would be obliged. 

Debt and Taxes; Ireland and America

Do any of the debt issues matter anymore?  We know the debt will never be paid in full like Eric B and Rakim.  Does it matter if Ireland takes the IMF loan if they can not make the cuts?  The necessary cuts to cut the deficits without raising interest rates would cripple the country, and this goes for all.  The only other way to do it is to increase taxes, and we see that ain't happening.

Everyone is saying a tax cut would be a good thing, but if there is to still be no capital gains tax, then what is stopping the big monie from dumping their equity in stock and government bonds and start buying, oh I don't know, gold?

Tuesday, December 14, 2010

The House Bank's Proxies

Sometime around the turn of the 20th century the Major US Banks came to an agreement regarding what they thought was the 'proper structure' of the American system of banking and how to formalize its formula.  Many technicalities are not known to be exact, and many questions remain about the original partners:  what was their exact motive?  What was their plan for the short and long term?  One thing is certain, they were to use the guise of the Federal Reserve Bank as a proxy to run the US Government.  Once the Government had given them what they wanted, which is control of industry by ways of corporations, they were to abandon the carcass.  The final move is for the Majors to cut ties with the Central Bank itself, or at least try and parlay the system globally.

The system, despite what many would have you believe, revolves around precious metals; gold plays the biggest part.  In the early 1900's gold was known to be the best store of value and thus it backed the paper currencie specified by the American Government.  At one point, there was a rumor fornicated by John Pierpont Morgan that the banking system was insolvent and there was a panic at the banks and a run on the dollar.  With this the Federal Reserve Began.

The Fed, which operates as a private organization, then began a derivative scheme only lately rivaled, and it was after that the the Nation's gold was confiscated.  This gold was used and operated the collateral structure of the finance system.  It was not until '71 that gold traded on the open market, and then only for private, as the governments stepped out.  The short term advantage was the Federal Resserve and chief proxy to the US Government could issue debt without real credit.  The dollar would now be forced upon the world instead of the gold, but the gold would still have a fundamental role to play.

Due to their great abilities as a ways to trade by being fungible and maintaining value they are kept in the vaults of banks worldwide.  They act as collateral, or more specifically they are reserves.  Reserves but they can be traded as both an asset and a liability, making one's bank sheet extremely flexible.

Yet the fathers of the FIAT system hid the fact, and posting revenue doing it.  Twofold, the gold that was put in the Central Banks was to be loaned out and that same gold was possibly stolen and replaced by tungsten bars (there has been many forgeries over the years and Knox has not been audited since the Second World War.  This may be how COMEX, the LBMA, and the ishares got their gold.

Speaking of COMEX, LBMA, and GLD, where is their gold, and is that gold properly audited?  Is the SEC to be trusted as the auditor?  Is having Moody's as the creditor a conflict of interest?  But as far as the US Governing ruling body is concerned, the audit is trusted, everything is fine.

With that, the banks saddle up on the pony.  Equity in the ETF and Central banks is bought via stocks and bonds, and shorts are put on the same plays as credit default swaps and an equity put option.  So if the Central Banks may not have the gold, and the exchanges and ETFs do not have the gold, then should this gold be sold and should this gold be shorted?  Should the bonds the Banks issue as collateral be sold, bought, and shorted?

The ball is dropping on these scheme, with Americans and the world now taking possession of precious metals as a store of wealth, the Majors are dropping their proxies the Central Banks and Central Governments over board.  What holds in store for the current system is anyone's guess.  What is correct is that gold and precious metals, which have always been the corner stone to the financial system, will continue to hold their weight.

Debunking the Federal Government; Debunking the Federal Reserve

The Federal Reserve is (soon to be was) nothing more than a proxy used by the Major US Banks (as well as International banks, as all banks and corporations are globalists) and US Government to leech the world of its resources and wealth by the apparatus known as the FIAT Dollar.  History will show that along the way the US Government also became a proxy of the Majors.  The US Government had acted in the Majors best interest since the conception of the Federal Reserve by creating military conflicts and thus "stabilizing" the world for the Majors.  Now that the Majors are done with their plan for a global move to install usury on all peoples, the Federal Government will burn in a green paper death shroud; it has served its purpose.  As the proxies will now fail, it should be the US Government taking the Federal Reserve's bullet, and the Major's leaving the Fed in the dust.

The dollar has been the US' blinding light onto the world.  The world, stricken with the same ignorance as Americans, never questioned the governing rule of the dollar over all FIAT, and let the games slide into formation.  Once FDR and Tricky Dick had formalized the formula, that no gold would be accepted for debt by the US, the game was over.  Ever after, the sound of the reverberating death rattle has caused many to dance to music that generates fight and flight responses while gasping for air, as the world has been starved of real credit.  Only once gold is seen by the world as monie will people step away from the falling Fed FIAT piano.  The piano has crashed.

Now that the House Bank John Pierpont Morgan has alleviated their naked shot position on the future derivatives of silver, the piano is on the ground.  Underneath are the world paper chasers.  I can not stress that one enough.  The reason is simple:  the dollar trades inversely to silver and gold, as it does against all currencie.  As gold and silver are the ultimate currencie, well, you get the point.  It will not be much of a match from here on out.  In fact, the Federal Reserve should do the proper thing and fall on its sword, but of course it will not.  The Fed will burn America at the alter of the Majors.  Luckily for some, precious metal does not burn, and the future will be forged anew.

Trinity Breaking Out

After the news that the House Bank of the US Government, its now former proxy, House bank of John Pierpont Morgan, will no longer do the dollar's dirty laundry, silver and her sister precious metals began a large scale breakout in Asia and through to Europe.  Once the metals got to New York the breakout had been epic.

There may have been a call from the Federal Reserve Bank this morning from Blackhawk Ben S. Bernanke to Jamie Dimon.  He would have told him to get Blythe on the job.  Jamie surely responded by letting Ben know Blythe was retiring soon to the Bahamas where she was to live her life smoking camel pinks and snogging the help; soon JPM and all Majors will no longer be shorting silver.  It will be the dollar, and Ben Bernanke, that are to be handed their walking papers.  Maybe Ben will join Blythe in the sun.  Maybe he will feel the cold concrete of a jail cell instead.

NY's move has been epic!  It is a classic double bottom, that is highly bullish.  This is because the second move down was not as low as the first.  Blythe couldn't get that price twice today.  The other thing to note is the classic W formation.  This allows for maximum opportunity on both sides of the trade by way of selling, shorting, and rebuying low.  All paper is done this way, and sometimes there is leverage.  Finally, the finish is a near hyperbolic move up.  Today was extremely bull'ish.

And I expect gold to now move to $1400, before it finishes its NYC minute at $1405.  I expect the same movement during Asia and Europe, but the question is, 'How much longer will Dimon let Blythe out of her cage?'  Not too much longer, and we are talking months and weeks, not years.

There will be a breakout to around $1500 during the next week, and then a following move to around $1650, by the solstice.  Silver will see a greater breakout, and as far as Platinum, the sky is the limit, as it has not broken past its recent ('07) high.

JPM, One of the US Government's Main Proxy Banks, Will No Longer Be the Former

The House Bank of John Pierpont Morgan has finished doing the US Government's laundry, after alleviating their short positions they inherited from Bear Stearns.  Remember, there are always two sides to every coin, and both the Majors and the US Government .  Now that the Majors are jumping ship from short silver vs. the dollar to long silver vs. the dollar, the tide will go out on the dollar's proxy, the US government.

Monday, December 13, 2010

Silver Shell Game Over: Crash JPM Revisited

Well many moons ago I predicted this.  John Pierpont Morgan's Bank has officially announced they lifted their shorts.  This is cause for a celebration!!!!!

by Mr Lennon Hendrix
on Wed, 04/07/2010 - 14:12
So Max Keiser is killing it and he cleared some shit up for me.  We have until $20.92 to buy silver (this is its nominal high), because that is when JPM should be done unloading their shorts (more specifically the shorts they inherited from Bear Sterns).  Once that happens, the whole market should capitulate, and then silver to the MOON (we have our own Argonaut, GET THE FUCK IN THE BOAT PEOPLE!) followed by gold and oil.  By my calculations we will reach $20.92 at mid summer, then the market should capuitulate for 2-6 weeks, depending on how bad peak oil is right now, and then KABOOM!  Anyway, my two sense...I could be wrong. MB anyone?
Also, a low of $8.88 during the "crisis".  They are saying something.  They are saying 'We will run this town for infinaty'.  I cry ISIS!  Then I go to war with these damn JPM "M"arket "M"anipulators.  Join me!  BUY SILVER!
$36 silver very quickly.  Some people who want to own it will not buy it below that price, that is how quick it will be.

The Whiteness

Whiteness.  It has a ring to it doesn't it?  Whiteness is the term for a group of swans.  A blinding Whiteness.  That is what we are experiencing; we are in the middle of a wedge, a whiteness.  The whiteness is descending, and when it lands it is all over.

The whiteness includes:

The fundamental system of FIAT is a lie.  FIAT monie is a lie.

Silver and gold price manipulation by Major banks, including Central Banks.

The Fraudclosure scandal that is the MBS market.

These are the main ones.  If I think of anymore I will let you know.

Charting Monday: Dollar and PMs

I really enjoy charting precious metals.  It is fun to watch the appreciation, and what it leads to.  It is also interesting to note the manipulation, and even more interesting when so few realize when it happens.  Lately it is my guess that the Fed has been leasing a massive amount of gold.  This is why the dollar has been let to hold on to its status as reserve currencie by the rest of the world, however temporary; because they are buying gold contracts.  Too bad the world's countries are stupid enough to play make believe.  If you do not have the physical you do not own it.

The dollar has had a late day rally.  Well, it is less of a turnaround, and more of a stopping of a run.  The run on the dollar stopped, I will say that.  The dollar was running because no one except Blackhawk Ben wants to pay for the US fiscal irresponsibility.  The effect on gold and silver was to the PMs advantage.  They both had several break outs today.  Platinum also had a great gain, while remaining highly volatile.

Days like this create a wide trading range which is easy to nickle and dime.  If someone can buy huge contracts then PMs make for great action.  With the gains far outweighing the losses, the manipulation is not what it used to be, but it is still there.

We could see this exact pattern all week, as I think that $1500 gold is not far off.  Gold has caught at $1394, and support at that price is justifiable based on last week's action.  I think tomorrow will be another huge day, with Wednesday seeing a consolidation.  The news on Ireland will see huge gains for gold:  the IMF either takes control of another country's soveirgnty, or Ireland leaves the EUro.  Both instances will be good for gold.

I think silver has another +2% day tomorrow and gold will likely rise $10 per ounce at the least.  There will be big gains later in the week too.

About TIme: Moody May Cut US Rating because of Tax Package

When the US rating gets cut, the snake has moved on from eating its tail to snarfing the rest of its body.  It appears it may only be a matter of time before this happens, as Moodys has begun deliberating what should happen if the US passes the Tax Cut extension.  If the measure passes, there may be a ratings cut.

It is not news to the world that the US government is broke.  China has already downgraded the US several times now to the glee of "Third World" nations everywhere.  Everyone knows the only thing keeping the US solvent is its status as reserve currency manipulator.  Once it is accepted that FIAT is a lie, and the US ability to create lies at will is devastating to the world economy, then there will be a revolution!

Hold your Own; $500 Silver

The peak resource investments will be very similar to investing in technology during the last 40 years; there will be only, 'I wish I shoulda...' and 'I got rich of the trade!'  You know the ones: apple of the eighties, apple of the '00s, microsoft.  Well $500 silver will be looked back at one of those trades that nobody should have missed.

It would have been the same for other investments such as oil, but because commodities are traded in paper, expect to be paid in paper.  This is the fundamental reason silver will be the best investment of the next decade.  You will be holding your best investment.  Unless you don't, and a bank stores it in vault.

Banks will want precious metals like no other asset very soon.  The PMs are highly valuable assets for banks to loan against.  They act as amazing credit.  Interest will attract precious metal loans.

I would never recommend using a bank.  Banks are thieves in trade.  Usury was spoke against in all sacred texts.  I would hold one's own.

Of course the reason silver will be $500 per ounce very soon is not only because precious metals are the best store of value, but because demand is increasing rapidly as supply decreases.  Supply is decreasing because there is a run on bullion.  People are investing in silver at a breaking speed.  This is putting a squeeze on the amount that is available for industrial use (medical equipment et al), photography, and jewelry.  Once production peaks, watch out!

Gold production peaked at the latest by '01, and platinum peak production was last year (at least less was mined last year than the previous in platinum's case).  Silver has been mined as a resource for thousands of years, and I expect it to peak production soon.

One last thing to consider is oil's production.  If oil's EROEI (energy return on energy invested) falls significantly from where it is currently, it will become more expensive to mine silver, and all things.  Once oil production peaks, then these metals will find themselves sold only to the highest bidder.

Once this is done, then monie has returned to the individual, and monie can no longer be manipulated.  Holding one's own resources is the only way to protect oneself from mistakes made by others.  Do not subject monie to the torture of the banks.  Buy and hold your own silver.

Friday, December 10, 2010

AP Enterprise: FAA loses track of 119,000 aircraft

NEW YORK – The Federal Aviation Administration is missing key information on who owns one-third of the 357,000 private and commercial aircraft in the U.S. — a gap the agency fears could be exploited by terrorists and drug traffickers.
The records are in such disarray that the FAA says it is worried that criminals could buy planes without the government's knowledge, or use the registration numbers of other aircraft to evade new computer systems designed to track suspicious flights. It has ordered all aircraft owners to re-register their planes in an effort to clean up its files.
About 119,000 of the aircraft on the U.S. registry have "questionable registration" because of missing forms, invalid addresses, unreported sales or other paperwork problems, according to the FAA. In many cases, the FAA cannot say who owns a plane or even whether it is still flying or has been junked.
Already there have been cases of drug traffickers using phony U.S. registration numbers, as well as instances of mistaken identity in which police raided the wrong plane because of faulty record-keeping.
Next year, the FAA will begin canceling the registration certificates of all 357,000 aircraft and require owners to register anew, a move that is causing grumbling among airlines, banks and leasing companies. Notices went out to the first batch of aircraft owners last month.

Dollar Futures Down?

Not that I put much credo into futures, but I have not seen the dollar down on futures since the turn last 4/21/10 (see The Doelarr post as reference to dollar strength).  It is only down a fraction, but it is down.  This should be a very good indicator indeed.

Have people forgot that only a few weeks ago, Russia and China will no longer do business in the dollar?  The Yuan has opened for rubles.  The impact has not been felt yet, as Bernanke and his Sackman are busy monetizing away the debt, allowing Congress to issue massive deficits.  But it is only a matter of time before the sand shifts under Bernanke's Temple of Power.  Whatever secret agenda the Mad Professor had matters little in the face of catastrophe.  The end of the dollar is at hand!

Gold Next Week

Gold and the dollar shared their tightest trading bands to be seen lately.  Both were roped right in by the big monie.  No one was going to act out of line today.  The reason was big monie wanted to skim a little something off of the top.  Get the best cream, ya dig?

But the dollar cow is tired, and the strong bull gold looks to take the plow.  Don't ask why a milkcow was doing an ox's job- that was John Piepont Morgan's move.  Too bad Wiilson took his advice.  Feel sorry for Obama?  No, he should have read his American history books.

Big move in gold next week.  Huge move in gold next week.  It will mimic its other big moves this fall.  Move to $1440 next week.  That would leave me $200 off from where I wanted it a year ago, but maybe we could get there.  I know, I know wishful thinking.  Oh well, I am still quite confident we will see $36 silver by the solstice.

Silver has had a great run and let us not expect that to end now.  With Max Keiser squeezing every last ounce out of the mints, the miners are set to ramp production to high levels.  These will only further its depletion, which could mean silver joins the trinity in its peak production. 

One of the reasons I feel this way is because the dollar has become fat once again, and I do not think there will be many more times to milk it.  She is an old cow, best left for pasture.  America will not be doing business with the rest of the world as 70% consumption from here on out, it is only a matter of time before the dollar loses its status as reserve currencie.  Once that goes everything will even out.  The ration could be gold 1:1 with the Dow, as it had been for decades.  Trying to pick the week is almost pointless after thinking about that, but hey, what else is there better to do!

Gold will have a $20-$30 day Monday and be followed by a similar move on Tuesday.  Wednesday, the reigns are likely to be pulled, but come the end of the week there will be a third large move up.  The final price of the week in gold will be around $1440 to $1470

What's In Kanye's Back Pack?/When Will the Working America Unite?

I have two questions this evening.  The first deals with some sort of paraphernalia.  The questions is always answered quipptly, 'What else can there be besides drugs?'  But it is not that question at all that matters, for the back pack symbolizes something vastly devastating.  Kanye had a back pack to be mobile; as with no need for a home, or anything besides what he could carry.

Kanye and soon to be his America are untied by status, but just as with any other bullshit artist both live paycheck to paycheck.  Kanye is afforded this luxury because it is hard to make Hip Hop sound as bad as he does.  America, with its huge military, is like the record company; they have their foots at the throats of the entire industry.  But as with all empires they fall, and while waiting for musicians to start using their own labels and be rock gods I marvel at Americas total loss of self reliance.  Not only is Julian Assange taking down Hill Clinton and other CIA lackeys, but unemployment is still flat lined between 20% to 30%.  The grave is dug for the American Consumer, and its US government.  The next question is, 'Who will rob the graves?'

Of course it was America who was to bury its own government.  This is when something interesting happened.  America kept digging, and digging, and digging.  One US President remarked of American's ability to hold more than one job, "Truly remarkable!  Uniquely American."  He championed it as well, as it is his government that enjoys a last meal be its delayed but inevitable execution. 

But still in the gallows the rumor is tomorrow will be the day.  The talk has grown louder than a chatter. 

I'll let you guys in on a little secret: it ain't working. Some of largest swathes of vacant retail stores are in Newport Beach. Fucking believe it.
Secondly, many of the beach cities set aside summer parking lots for RV 'camping' during the winter. And these ain't the el cheapo RVs of summer family vacations either. Nope, these are mostly million dollar rigs, complete with brand new tow-along Jeeps, and satellite hook-ups for TV, Web, etc.
Anyway, the point is that these overnight, full hook-up lots are fucking empty. In as many years as I can remember, they were always full. But now it's freakin' spooky. Oh, you'll see a couple here/there, but overall it's a ghost town.
OTOH, the number of old jalopy bandit RVs (being used for housing) hanging out in the remaining day use lots (all vehicles have to vacate each night) is growing by leaps & bounds.
We are getting ready for stage 2.
This quote is from B9K9.  I think this sums up the state of the country.  The rich ain't milking the cash cow anymore, and the poor are running for the hills.  But I want to know why the two are going anywhere at all.  Shouldn't we all be taken aback at the ineptitude of our foreign governments?  The economy is a mess because of the old system, then we need to change the system.  All working people, no matter how many thousands of dollars you make, are in the same boat.  IT and bus drivers, doctors and garbage men, all in the same boat.  This is your country and the current system is strangling its people, your people.  Unless you own a farm in Colorado and have a cool billion to your name (presumably to buy a fuck ton of gold off of the comex at 'Go time!') you are not going to matter.  A few thousand dollars is not going to matter.  When the federalis collapse it is not going to matter.



"The final bubble will be gold.  The gold bubble will be the last hurrah." -George Soros

The doelarr's history is unmatched.  Never before has a worthless FIAT IOU had such great acceptance.  The scale is massive; the world was leveraged at maximum.  So it went, day by day, the world turned.  The birds sang a morning tune, and the rivers flowed on.  Suffering was still prominent, as it is always present in nature, but at the forefront of the mind was extrinsic behavior, and due to complacency, many people held the said behavior over intrinsic instinct.  Even though this logic is false, it being accepted inspired thoughts of grandeur, and this ushers in the new toy, with the same value.  ZERO.

However, in the financial world, things were different.  Dams were busting, and diseases spred.  Interesting it was all going according to plan.  Bank lending will fall to the medium sized banks, this after the Majors fall into submissiveness to Congress et al.  Congress will force lending in the face of the currentsea.  So they steer towards volatile seas.  See you fools later.

The voyagers will attempt to leave this shore with head wimds, even though the seas are calm.  They may have the seasons time, but their sense of direction is not the only other failure.  They wish to travel to unforgiving lands.  Their work is horrible.  Let them go.

After they leave we will have one more bonfire party tonight; play the music, and love in the night!  Do not worry, we are to bring the instruments, to play in celebration when we arrive.  Of course we practice along the journey too, we stay sharp bypractice.  For iron work, as well as jewelry.  We do work with metals.

"When your shining, some chumps will want to dull ya." -Guru

The illustrious history of gold and silver is unrivaled.  Kings, Queens, and thieves have launched wars simply over the precious metals.  Gold and silver were the reasons to seize the Treasuries of Rome by Constantine, the metals were swiped by the Nazis during their terror (only to end up....where?), Yamasheetas gold through the 19th century-only to be had by Scull and Bones banksters, and the Armored trucks below the Word Trade Center on 9.11.01.

Blobflation Casino has taken over; not only the stock market, but the minds and hearts of its players.  Some are killing the poker tables, others are losing at the roulette table.  All around there are winners and losers, as there always has been.  The stakes are higher now though, and when great fortunes are made, great fortunes are lost.

The stock market is forced to go big or go home.  Bold moves must be played.  GE will tell us that their profits must be not only legitimate but real (Mark to Cocaine is a hellavu drug).  Breathing in the season is hard to do when time is busily spent at ill gotten work, yet it is all there is.

So the earth had come alive again!  For no sake of the big animals; we will hibernate.  Complaints still heard and registered.  If it is registered, will it then be sold as a positive for the economy, these higher stock prices?  If the volatility subsides for now, will America work at spending their re-funds like good little children?  Tell me, 'how much is a one ounce silver coin worth?'  Twenty dollars.  How many do you want?

Nickolaz Sarkozy is no good guy, merely a pimp of a higher order.  The beast has two heads and spew lies from both mouths.  State and banking, separation non withstanding.  At dinner on April 16th he fortified his authority.  "Fuck you, Goldman Sachs.  I am your daddy, and I am going to get some too!  And if this volcano erupts further, and we can not buy any crap from Asia, do not worry, we will still buy gold."
There is an impressive thing happening here.  Because of Hekla, the Icelandic volcano, there might be a little air blown into the doelarr for the next month.  The effects:

First, the doelarr "strength" to continue tightening the trading range of Euro/USD.  The move to $1.30 will happen quick, in the next week or two.  DXY to trade roughly at 81.5.  Gold and silver will continue to make nominal highs against the Euro, as well as push back up to the nominal highs for the doelarr.  Then there will be a move down to $1.25 Euro USD with the DXY staying in the 81.5 range.  By late May, the pressure from the doelarr will have peaked, as the State budgets of Amererica will once again be addressed. California, will legalizing pot combine with personal investment by Walled Street in Hollywood save your ship?

Hollywood Bulletin!!  Hollywood goes public!  The Future is Now!  "I'm buying."   James Cramer said, plain faced to "Cramerica", his made up realm of market serfs.  Also flaunting the new Hollywood Futures Exchange, Christina Romer.  "It is a wonderful chance for everyone to participate in the movie industry."  The CEO went on after her at the press conference.  "For our new 'land' of "Today Sucks" themed section of Disney World, you have the ability to make out with Megan Fox's virtual self from her straight to DVD film, "Sex, Lies, Faces".  How extreme will Hollywood get?  Will they be bought up by Apple?  Steve Jobs picks up MGM Grand?  How personal will this trading become?  Will people have the ability to invest their 401ks in Cantor/Fitzgerald Xchange?  What is money anyway?  I digress.

Will folks in Hollywood feel regret and show concern of the decision?  1)  How long will Hollywood last in the clutches of Walled Street?  2)  How will this bubble work?  3)  How much leverage will it create?

What the hell is BS doing?
The "currentsea bubble" is a misnomer.  Any FIAT will have waves.  Flooding is happen stance in Europe and America; it was formally a way of life.  Mother earth changes.  Still geographically true, and by the grace of technology, in the said States, flooding is a quelled thing.  So far the above States have enjoyed economic escape from flooding as well; they have had sure currentseas.  This status was achieved seemingly due to superiority of grace, and wits.

How much does a militia cost?  Army, Navy, Air Force, CIA, FBI, IRS, ATF, FEMA, ETC.
This is weight on the scale on the side of the doelarr.  The dollar was supposed to hold weight in the first place.  This is a mighty load.

Raising Required Reserve Ratios Matter Little

Raising reserve requirements have nothing to do with bank lending.  The only reason that it would matter is that there will be less cash to loan out.  But with excessive monie printing happening around the globe, how would it matter if cash can be fractionaly reserved at 10, 9, or 8 times the amount held?  Loans are not being made, so once again will it matter?  It will not. A rate hike on the other hand...

A real rate hike for real interest rates could have an effect on  the markets.  The signal would flash a lack of confidence in the current cooperative world Central Bank policy, as all Major Central Banks have sustained rates near zero.  If anyone of the Banks flinched, there would be a rush to the exits.  Look for gold to be the beneficiary of this action.

The dollar has a long history as the world's reserve currency, the longest ever before it, because before, the only known currencies traded around the globe were precious metals.  The dollar is an imposter.  It is a trick on all people.  Many have and are becoming aware of this fact.  It is now only a matter of time before its fungibility is not only questioned, but retired.

They Really Shouldn't Do That

Look no further than the World Gold Council of the '60's for an example of how overt manipulation in the price of precious metals does not stabilize the price.  Back then, selling gold on the open market created long term implications of massive demand, as every time the US and Britain put some up for sale, the sale was met with huge demand.  Currently we know that demand is strong, not only for Russia and China and India who have all tried to double reserves over the last few years, but also remember that the "First" World has massive "gold" (Tungsten?) reserves in their Central Banks (supposedly).  There is nothing better for the long term price of gold than this, because the market will now expect massive selling.  What happens when it does not meet the supply?  Well that is the time bomb that Blythe and the rest of the gang has set off.

After being dumped on this morning, probably by a new algo feature fresh out of Blythe's stocking, gold has already made it back to its 1st support level of $1385.  This is what happens after several long days of manipulation by algos hoping to hit short positions; the buyers of the shiny stuff jump at the low price and demand outweighs supply.  The tricky part would be finding excess supply, but the LBMA and COMEX use leverage of 100 to 1 and few have questioned these tactics (question these tactics!).  Second support is at $1395, and if we can break out of $1400 I would think that we could see $1414 by the end of the day.

As far as next week is concerned I am already expecting great things.  With the world focused on China raising rates, I think there will be a very strong attempt to find investment in the least risky asset.  Gold has proven to be just that since the fall of '08, and even before.  Nothing changes the reliance on gold as a hedge away from FIAT currencies, and all paper assets.  The further down the yellow brick road we go, the more apparent that becomes.  The road will be crowded at some point, for now, enjoy the breathing room.

Thursday, December 9, 2010

Dow Jones 12,000

That far off rumbling noise isn't just boredom setting in.  Restless hunger has the Americans wondering how they will become a dancing with the Starz contestant while maintaining a way of life that is conducive with $4 gas.  The pump is a necessity, but to what end?  Americans are reliant on oil, but what does that mean for the future of the country?  How will monie be made during the end of peak oil production?

Thankfully corporations have all the abilities to maintain order through the insolvency of the world governments.  Just kidding, but really, we the people stood by as the politicians chose to bail out the corporations at the expense of the governments.  We already chose, through proxy, the fate of the governments.

Corporations were illegal by law in the beginning of America's Independence.  The Wall Street business men who held off the British attempts at New York held firm with Philadelphia and the Eastern Seaboard and stayed United against Britain.  It wasn't until after the civil war that corporations were allowed to function by right as a person.  This change has been at a loss for people everywhere.

It has been corporate policy up until this point and there appears to be no change on the horizon.  The politicians are still revolving into the banking system (there is Orzag) and vice versa.  Until this corporate/fascist policy changes there is no hope for the US government to dig its way out of its massive debt pile.  As the US suffocates under the debt, the corporations loot the remains in the rubble.  This looting could see an increase in equity indexes, US and worldwide (as the corporations are multi national).  If the Tax Cuts are extended look for Dow Jones 12,000 to be flashed.  Why not?  As economists have decided the recession over, who will care if unemployment stays high (U6 near 20%).  Not anyone seeing a rise in their stock portfolio!

The Trinity

Take a look at the graph of gold this evening.  See how they are coming in above the past two days trading?  That shows strength

Platinum is currently ahead of its price from the last two days; the last two days it consolidated.

Silver is staying right under $29, way above where it was trading only 24 hours ago. 

From 0:00 saw gold move up, breaking its 48 hr price.

Look for NY to trade gold strongly tomorrow.  Trends like these don't fade quick.  Asia and the world likes gold, NY is best to recognize. 

Da Bernank Is Betting On Deflation; Questions For the Midnight Rambler

He is not shy about his bet on deflation, and when it comes to policy he holds nothing back.  To withstand the massive deflation that is occurring in the financial system Bernanke will buy hundreds of billions of dollars of paper market monie.  This is the near term plan.  The short term has the US deficits continuing their steepening.  The debt is now astronomical.  The weight of the world is on the Bernank's shoulders.

If it is a matter of strength, how solvent is the Fed's banksheet?  How much toxic paper does it own?  In the face of calamity the Bernank has managed to absorb the deflation, will it continue?  What kind of debt issuance will need to be met in the short term?  The $600 billion dollar QE II has already halfly expierd and the Bernanke is doing another round shortly.  Is the Fed abusing the dollar's right as a single account of unit value?  What is one dollar anymore, anyway?

Look at the precious metals go!

Here they come, right around the bend!  Tonight is, 'Consolidation in Asia' night.  See how the Trinity comes right into the middle of the three day average?  This is common, especially after days following a wide move down, after a big move up.  Yesterdays consolidation left little room for downside today, as support had mostly been taken out on Wednesday.  PMs always consolidate.  Always.  And when the trading band gets wide the next thing for it to do is average out.  Up...down....consolidate.  It is usually as simple as that, as there are a few other variations of PM price patterns.  Sometimes the PMs consolidate for two days before swinging up or down.  Sometimes there are back to back up days or back to back down days before a consolidation.

The consolidation is a welcomed brake in the process of the always moving metal.  The sun never sets on the gold market, and its volatility can be mind numbing-especially when considering the manipulation!  After drops like earlier this weak, one can consider buying more, as the price drop has nothing to do with long term behavior.  Environment dictates a roof, and standard of living decrease investment.  Whether it is gold or water, food or comic books, everyone saves.  Paper savers have lost their tickets, fundamentally for some mortgage payers.  The US government has also lost deeds, and the IOU dollars will serve as payment.  Who wants the dollar?

Major Dollar Weakness Ahead

The whip is snapping back on the dollar.  Yesterday it was European currencies that were strong against it, today it is oil and precious metals.  Asia has also favored tightening the trading band between precious metals and the dollar and the rope is going to break here at some point.

With the world's economist's chanting recovery, what do you think will happen?  With the bond bubble bursting and Fraudclosuregate about to blow, the only option left for the wanker bankers is to invest their monies into corporate stock and bonds.  How else will the corporate pigfaces move their worthless paper IOUs before a major run on the dollar occurs?

The Majors, those banks that have tens of billions of dollars stuffed down their throats and by which have fractional reserved multiples more, have so much cash what should they do with it?  Perhaps they will continue to use cash to suppress and hide losses on their MBS holdings?  Perhaps they will have the cash loaned to the big cap corporations and only they?  hatever they are going to do, they should do it fast, because the currencie they all use is running out fast.

Could major Euro and other currencie weakness cause a hold on the dollar's release out to see?  That has been the game thus far; it has always been a matter of time before a currencie gets washed away, and a matter of when before we find out which one.  Come to think of it, maybe no swan is needed for a financial system failure to occur.  The debt levels are so astronormous that the time has already come and past, but because Bernanke et al have subdued the market, we the collective have not noticed the currencie's faint breathing has stopped.   This implies the collective has not paying attention to the cooperative.  This would be correct.  Obviously the attendant had become complacent of its chores-tending to the care of its Frannkenstein Bride; creating monie out of thin air makes little sense.

Yet making monie will not be stopped.  The Bank of England has announced they will continue easing quantitatively, and keep their rates near zero.  Shirakawa's Japan spends Yen on ETFs.  Bernanke prints and spends $600 billion more dollars on MBS; and remember he is considering raising the cost.  Maybe the Chinese raise rates this week, but only their overnight rate.  As for now, everyone has their cake, plenty of it matter of fact.  The morbid eating contest festers, and the contestants' bodies strain to keep gorging, but the body can only handle so much, and the system has eaten itself dead.

Friday Gold

Gold has consolidated nicely just under $1400 after a rough week of trading.  The earlier half of the week saw gold brought through its entire range and then some, as it retreated under support levels at $1395 and $1385, finally stopping its move lower at $1372.  It was moderately volatile today, but traded nicely in its lower range of support.  I expect it to come out swinging tomorrow, and rise to $1430.  Nothing in the economy has changed and gold knows this.  Nothing except the Federal (Private) Reserve no longer prints monie.  Just kidding, they do, it says so on the Federal Reserve Notes they issue.  Ben lied.

QE 2 policy is not increasing the monie supply, but the monie supply is increasing.  What is causing it?  M2 is increasing and most likely this is due to banks making performing loans.  Most of those loans are extended to large corporations.  The corporate global sector is the beneficiary.  Main Street, by its local governments and local sectors, is not helped by this extension.  M2 will do little for Main Street, much the same way the Bush Tax Cuts will.  The Tax Cut extension will once again help the corporations, as the big investors can now decide what to do with their fun bux.  The currencies will now be made to invest, and the investments are not in the back yard.

America has experience life for three generations complacent due to its use of the world reserve currency.  This brought about a country who could not do much other than drive cars and eat.  The dollar was the backbone of this experiment.  Without access to the reserve unti, America has nothing but dirt.  But let's not be too hard on dirt.

The dollar is waving in the wind like a beat up old flag, and gold is wondering how much longer it can stand the current storm.  If for some reason there is a move to the dollar, current trends has gold rising in price in unison.  This is because gold is seen as a safe haven currency, as the dollar formally did.

Silver Slippers

An allegory that most people are familiar with is Dorathy of the Wizard's Oz.  It is a story that will be known as an epic of its time.  The story is learned in childhood and forever fancied by us.  Yet even though we are cognizant of it in its entirety, we miss a little but all important fact:  Dorathy's slippers were silver.

What does this tell us about Baum, and the story of a young adolescent who has been caste onto a place without experience?  Baum's play, one that is considered for children, focused on economic policy more than anything else.  The story starts and begins with depictions of assets; first silver and later a great emerald balloon (this after the townsfolk were to always wear green tinted goggles).  Add the yellow brick road, and how it takes the silver slippers to the den of lies, and it can be understood what the story means.

Baum wrote in a time when governments had begun to mess with real monie.  Institutions were using FIAT after ripping the silver standard away from the exchanges.  Banks were consolidated into large corporations, and these new entities began to rule the roost.  They took over policy and government with it.  Oz was Baum's attempt to put history in its place.

Today silver is being bought as a store of value with an effort not seen for some time.  It is rightfully retaking its place as a store of value, and as a medium of exchange (if only being traded for FIAT).  Oz and Co may end up escaping in the emerald bubble, where they will go is anyone's guess, but Dorathy would only have Kansas, and in Kansas monie is in silver.  Take the yellow brick road if you must, but with the click of your heels, you are home.

Wednesday, December 8, 2010

Bac in the USSA

The financial sector is supposed to be a vital part of the economy.  It is currently in shambles having been destroyed in the wake of the Bear Stearns and Lehman Brothers crisis.  A bank's only charge is to make monie; to hold some form or instrument of monie for safe keeping and turn a profit in the process.  They have not been able to do this for years now, with thousands of banks being captured by Sheila Bair and her FDIC cronies.

Since  the announcement of a Bank Doc Release by Assange, Bank of America and for that matter all Majors have experienced gains for their stock price.  Has Bac made a turn around?  The reason that Bac is in the spotlight is because they are smack dab in the middle of Fraudclosuregate, sure to be the biggest scandal since Bear Stearns and Lehman dealt the first and decisive blow to the financial system; until JP Morgan's silver market manipulation comes to light.  What could empty from Bac's coffin is a slew of corruption.  They have created a monster of fraud, and the monster has turned into a destructive fiend.

Citi, which has been passed around like mistletoe at the holiday party, now has the US government almost done propping them up on the open market (who knows what type of share holder the President's Working Group on Financial Markets is), at little benefit to the US government.  So this gigantic failure, the most traded stock in the world, has been on the rebound of late.  Will this price action last?

If there is any sustained rally in the financial sector it will not be on strong fundamentals.  Fraudclosuregate has only just begun, and nominal gains on dollar devaluation is an unsustainable way to create growth.  Reliability has left the banks, and their zombie corpses will continue to feast on the remaining healthy assets.  This will eat away at growth in the long run, for the only return will come in the short term, albeit nominally.

Why is Now the Best Time to Invest In Precious Metals?

I think that we are facing the best time ever to invest in PMs for two main reasons.  First, world oil production, in the least, has plateaued (it may already be on the downside of production), and due to lowering EROEI, it will make mining more expensive.  If costs rise, price will rise.  Now throw in the fact that gold production peaked over a decade ago, platinum peaked last year (abouts), and that silver is being mined ferociously (and should peak within a year maybe), and see how it would be the best investment.

The best way to understand how declining supply raises price is to draw a supply/demand graph.  Then shift supply lower.  Now price is higher.  Usually demand would drop, putting price in equilibrium, but.....that is for when considering standard behavior.  Economics discounts peak oil theory (peak anything theory in fact, due to "technology" and other made up factors).  I think that once the supply crunch happens, it will actually INCREASE demand.  So now put that on the graph.  Price has now doubled.  This in a moment.

It is important to understand this window, but now remember this:  prices of PMs have been suppressed by Major banks shorting them (here's looking at you, JPM).  This was done to keep the dollar's purchasing power in a range where the world thought it was still a viable means of exchange.  Once peak oil is realized, the window closes, and the window is closing.

Always Volatile: Follow Up

Last night I provided some reasons that the Precious Metal market is the most volatile, and today has proved to be an example of this volatility.  The trade today was sandwiched by investor liquidation (presumably by Hedge Funds who are going for broke, after being broke), rumors of financial war (Chinese Rate Hikes), and JPM capitulating (Yes I see the bank as in its death throes). 

I was somewhat surprised by the price action today, as I had called for consolidation between $1395-$1405, but in this market always expect the unexpected.  When the Market Manipulators smell the slightest fear, they will mobilize their collective and gather dollars in the face of the precious metals.  There is no better analogy than sharks smelling blood in the water.

It is not fair that real assets can trade based on the lack of knowledge that most have concerning the PMs, but then, so is life.  If you had the opportunity to buy today, I hope you did.  Current trends look to have PMs have a great move up soon.  Let me detail some of the new reasons.

First, it is important to understand how gold could rise while interest rates rise.  Case in point, look no further to Volker's term as Fed Chair.  If you can put a chart of interest rates next to the price of gold, do so.  You will see that the two moved in lockstep.  Why is this?  Because while interest rates are being raised, a lack of  faith enters into the market.  This is based on 1) the fact that the Fed has admitted inflation is a distinct possibility 2) the Fed has admitted it is behind the (inflation) curve.  Rising interest rates will also, or at least is suppossed to, stem inflation.  Lately I have noticed speculation talk gold up vs. inflation.  It is also true that gold is a great hedge against deflation.

Precious metals (I realize I sometimes use the word gold in place of PM, you will have to excuse that) value is also at the whim of the market's expectations.  If there is faith in economic and fiscal policy, as well as faith in the market itself, then PMs maintain their value.  Once that faith is lost is when cash moves into PMs.  Once again, this is true in times of inflation, but especially in times of deflation.