The WH is delaying the debt increase until Congress comes back from their recess. So, based on what happened last time, we should see the Treasurie come in and use the SSTF and public pensions as collateral to buy the debt. This would mean liabilities will leverage up, and since they have used as an asset to loan, they will need a reserve to replace it. That reserve is gold.
Look for gold to move back above its 200 MDA in January while the politicians fiddle about.
While I am at it, let's discuss the Fed swap. These swaps don't last long, so the Fed is hoping that the collateral for the dollar (yen/euros) rises in the next two weeks. This will put a floor under equity while the politicians fiddle.
After that, the world is awash in fiat. And most likely the Fed will use the collateral (which will be paid back in dollars) to monetize more debt as Operation Twist and POMO continues. This will continue to decrease the DXY.
All the while Europe implodes, the US banking system gets propped up by the incestuous nature that are Treasurie auctions (Treasurie auctions to PDs, PDs flip the bonds to the Fed the next day, the Fed sits on the bonds and sells the bills). While the housing market continues its epic collapse, no one is kicked out of their homes, meaning the average bankrupt family spends their mortgage on ipads and popcorn. Thus the news is that the economy is the same as it ever was, even though the aggregate M2 is spun by the massive velocity of lending by the CBs.
The EU will lead the way as the FX swap from the Fed has already been loaned to PDs to buy the rolling debt from the CBs. This means that that system will be leveraged up on top of itself. Right now it is at 40 to 1, I won't pretend to know the next leveraged increase, but it could be as high as 400 to 1. You read that right.
Most likely, there will be more intervention by the Fed though, and the Fed will continue to monetize. This will marginalize the leverage, so instead of using the max 10 to 1 of fractional reserve lending it will likely end at 2 to 1, but because of the number of loans it will take to fund the debt there will be an increase in the velocity of the money supply. The kicker is when the system needs to releverage after all of the above. I am not sure they can do it.
This phase that I have put above will take a few months to wrap up. Let's say this all happens by the Spring equinox. After that it happens again. I'll tell you what the policy makers are hoping: this first phase has a massive amount of debt issuance. Q1 is about twice the size of Q2. They are thinking if they can get past Q1 they can make it to the end of the year.
They are facing higher prices and thus political blowback. They are facing the end of the Fiat Ponzi. Yet they have no other option. The rub lies in the little things. Will a spike in oil crush GDP (it will if it rises above $192). Will the occupy movement gain traction in movements that actually do something (shutting down ports, etc) instead of building community (which is not a bad thing, but it isn't furthering a movement that can take freedom back now). Will there be bank runs as the whiff of inflation grows into a nauseating smell? Finally, and this isn't small, but it has started that way (with rumors), will there be a war with Iran?
There are other little things that will show up along the way. It will be the little things that break the camels back. One of those things might very well be taking physical silver off the market. The BUY SILVER movement feels like a pipedream to me now; not because I don't think it is wise to own physical (which is the reason why I started it) but because I just don't know if taking it off the market will stop JPM et al from naked shorting. I have no faith in the system, so I don't know how to stop it. I do know that silver is monie, and the best way to protect your wealth is with real monie. This is why owning physical PM is the best option for maintaining your freedom, no matter if the system implodes this March, Dec 21, or in 2015. This Fiat Ponzi makes me sick, and I want it to end, yet I know alone I don't do anything. My vote doesn''t matter. My stacks of silver don't matter, but together we can do it, we can change things. If we all continue to make our moves, we can take our freedom back. This is why we must continue to fight the good fight. This is why we must continue to buy silver.
Friday, December 30, 2011
Wednesday, December 28, 2011
Lindsey Williams on Bernanke
It's funny when someone as regular stumbles upon Bernanke and his asinine speeches. It's almost funny that modern schools think that economics is science. Bernanke's speech, titled "Making Sure Deflation Doesn't Happen", is a gem. In it he told how he has found the Philosopher's stone, how lessening the value of the dollar increases prices, and that he could drop money from helicopters and solve a crisis. Yet Bernanke is the most powerful man on earth, despite all of this.
Sure to be told, the fascist system has kept the best for last. They have waited for the election year to pull out all the stops. Obama has done exactly what he has been told every step of the way; shake the pom-poms, read the teleprompter- that's it. So now Bernanke, who has kept rates low, bought everything under the sun, will now increase the velocity of the dollar, and decrease its value, increasing prices, so pensions will return, etc.
The kicker is the volatility, and this is how it works: the overnight lending facility, the emergencie facility, will increase swaps. This will increase the velocity. This is key. This is Bernanke's science of economics. And this is your brain on drugs.
So here we are, and all the pieces are set. Time to check mate the system. The dollar is the King, and Bernanke has it where he wants it.
This lie was set up a long time ago. The plan was careful. Fiat has no worth, and now the world will find out the big con. Now everyone finds out that the last 100 years lived was a lie.
Sure to be told, the fascist system has kept the best for last. They have waited for the election year to pull out all the stops. Obama has done exactly what he has been told every step of the way; shake the pom-poms, read the teleprompter- that's it. So now Bernanke, who has kept rates low, bought everything under the sun, will now increase the velocity of the dollar, and decrease its value, increasing prices, so pensions will return, etc.
The kicker is the volatility, and this is how it works: the overnight lending facility, the emergencie facility, will increase swaps. This will increase the velocity. This is key. This is Bernanke's science of economics. And this is your brain on drugs.
So here we are, and all the pieces are set. Time to check mate the system. The dollar is the King, and Bernanke has it where he wants it.
This lie was set up a long time ago. The plan was careful. Fiat has no worth, and now the world will find out the big con. Now everyone finds out that the last 100 years lived was a lie.
Tuesday, December 27, 2011
SHLD
The PTB have let their shield down. They do this from time to time. RIMM, and others; sometimes they can not afford to hold each part of the Ponzi up, and it makes for a great shorting opportunity.
They let their shield down, and now all the world can see. MF has gone bankrupt, don'cha know; a major hedge fund, guys on the inside. Last time this happened it was during the Fall of '08. The shield is down, and that means they are on the offensive.
The Central Banks of the world have tied their interest rates together. The fascist states of america has made everyone a terrorist. The desperate have become awkardly desperate, and are now taking stabs at windmills.
They have let their shield down, for all the world to see.
They let their shield down, and now all the world can see. MF has gone bankrupt, don'cha know; a major hedge fund, guys on the inside. Last time this happened it was during the Fall of '08. The shield is down, and that means they are on the offensive.
The Central Banks of the world have tied their interest rates together. The fascist states of america has made everyone a terrorist. The desperate have become awkardly desperate, and are now taking stabs at windmills.
They have let their shield down, for all the world to see.
Monday, October 3, 2011
Plan B
We know the Treasurie is going into debt head long, and we know that means the Federal Reserve is issuing just as many dollars, but the real question is, why are these dollars no being thrown from helicopters. I know, I know, it sounds ridiculous to think, but this is, after all, Ben Bernanke's solution to a liquidity crunch; they are his words.
He did say in a very famous speech he made right before he became Fed Chairman that if there was a liquidity problem he would "throw dollars from helicopters". He has been doing it ever sense the Fall of '08, proverbially of course as no dollars have made it onto Main Street. The real question now is, why is he not throwing dollars at Walled Street like he has since that great Fall?
It looks like the whole financial sector is set to fail, and all the while, corporations like Nordstrom, and Lulumon hold onto their moving averages. How is it that these corporations can stay solvent when the banks that loan them their money can go out of business? The answer is somewhat obvious, but my question is, why have these banks put themselves in this situation?
It seems to me that either this was an orchestrated effort to ruin the status quo now, which means the game is up, or these institutions are completely inept. It is likely a combination of both; let me explain: Likely, the oilgarchs decided that they needed to enact chaos now so to rebuild the system in their desired image. The main point of revolution has to do with oil production. The former swing producer was the House of Saud and their production peaked over a year ago. Russia is now the swing producer and they peaked in 1989, so that should tell you how much oil they will produce over the next decades. The North Sea's production fell by 25% the second quarter, which means oil is drying up everywhere. There will be no growth when oil production has peaked, so the oilgarchs threw in the town.
Now the system will leverage itself off of precious metals dramatically. The value of fiat will be made to depend on where equities are needed. Equities are needed to be at certain levels to return pensions. The status quo will be held onto until the wheels fall off; yet this could be the wheels falling off. My recommendation is to let go off the status quo, and grab precious metals. It is the only thing you can rely on.
He did say in a very famous speech he made right before he became Fed Chairman that if there was a liquidity problem he would "throw dollars from helicopters". He has been doing it ever sense the Fall of '08, proverbially of course as no dollars have made it onto Main Street. The real question now is, why is he not throwing dollars at Walled Street like he has since that great Fall?
It looks like the whole financial sector is set to fail, and all the while, corporations like Nordstrom, and Lulumon hold onto their moving averages. How is it that these corporations can stay solvent when the banks that loan them their money can go out of business? The answer is somewhat obvious, but my question is, why have these banks put themselves in this situation?
It seems to me that either this was an orchestrated effort to ruin the status quo now, which means the game is up, or these institutions are completely inept. It is likely a combination of both; let me explain: Likely, the oilgarchs decided that they needed to enact chaos now so to rebuild the system in their desired image. The main point of revolution has to do with oil production. The former swing producer was the House of Saud and their production peaked over a year ago. Russia is now the swing producer and they peaked in 1989, so that should tell you how much oil they will produce over the next decades. The North Sea's production fell by 25% the second quarter, which means oil is drying up everywhere. There will be no growth when oil production has peaked, so the oilgarchs threw in the town.
Now the system will leverage itself off of precious metals dramatically. The value of fiat will be made to depend on where equities are needed. Equities are needed to be at certain levels to return pensions. The status quo will be held onto until the wheels fall off; yet this could be the wheels falling off. My recommendation is to let go off the status quo, and grab precious metals. It is the only thing you can rely on.
Where's Bernanke?
The market has been getting pummelled and I have to ask how it is that the President's Working Group on Financial Markets has not come in to support markets, like their mandate states? I also wonder how it was that the east has been getting the West lower at the open of East trading every time? So far, the best price to be had on silver came during Asian trading. Who is in control of this market, and why is Bernanke gun shy?
Could China and other Eastern countries be holding the fiat ponzi hostage? If Bernanke increased lending would the dollar be dumped? There is something very big brewing over seas, and apparently Bernanke is at the whim of these motives. I think something very big is about to happen; it could be a European Explosion, or the dumping of the dollar, but the technical patterns are all running haywire, and with this full capitulation of the system one must wonder, when will the time be up on the fiat ponzi?
Could China and other Eastern countries be holding the fiat ponzi hostage? If Bernanke increased lending would the dollar be dumped? There is something very big brewing over seas, and apparently Bernanke is at the whim of these motives. I think something very big is about to happen; it could be a European Explosion, or the dumping of the dollar, but the technical patterns are all running haywire, and with this full capitulation of the system one must wonder, when will the time be up on the fiat ponzi?
State Policy
The dollar just sold off, and silver and gold (especially gold) are trending bullishly on the day. In the long run it is still a race to the bottom between the dollar and Euro, but with their back up against the wall not only will the policy makers print, but they will lend.
What if they don't? Then Keynesian policy was wrong all along? System failure now? They will print, and lend, because they have no other option. Will they let the system crash and go to a gold standard now? No, that is in the cards for after the next election. They can not have Ron Paul as President, and if they let the system fail again now, that is what will happen.
The oilgarchs want four more years of the status quo, and then they will go to the gold standard. The still need time to fully implement their Police State.
What does this mean for equities? Not much. They may pair their losses in nominal terms, but really, what good is this?
If one cares to preserve their assets then the only real investment, besides investing in self (such as learning a trade) is to own gold/silver/platinum bullion. These assets define monie by monie in definition. They hold value in that they last forever, they are a means of an exchange, they are a unit of account as they are fungible, they are a standard of deferred payment because it is a finite resource.
What if they don't? Then Keynesian policy was wrong all along? System failure now? They will print, and lend, because they have no other option. Will they let the system crash and go to a gold standard now? No, that is in the cards for after the next election. They can not have Ron Paul as President, and if they let the system fail again now, that is what will happen.
The oilgarchs want four more years of the status quo, and then they will go to the gold standard. The still need time to fully implement their Police State.
What does this mean for equities? Not much. They may pair their losses in nominal terms, but really, what good is this?
If one cares to preserve their assets then the only real investment, besides investing in self (such as learning a trade) is to own gold/silver/platinum bullion. These assets define monie by monie in definition. They hold value in that they last forever, they are a means of an exchange, they are a unit of account as they are fungible, they are a standard of deferred payment because it is a finite resource.
Sunday, October 2, 2011
Occupy Walled Street
The Walled Street has a dubious nature to say the least. It first came about as a trading post during colonial times. It then became a fortress of sorts during the revolutionary war, when a wall was built around it to protect the goods. Over the years it has become a part of the common tongue; known for its better or worst parts, the Walled Street trading post has established itself as one of the most prominent fixtures in human history.
Today this street lies in the middle of turmoil, with people protesting whom are not employed and most important not benefiting from the trading that goes on behind it. This is a trend that began from afar, for America is the last to adopt the protest scene. Yet this trend may end with America, as now the whole world has risen in unison to take part in the freedom we know we have.
Media has been borne anew with the death of the corporate ones. Now people use their own devices to spread the word. It took time but the resistance has bloomed. This revolution will not be televised, and it will be interesting to see how long it lasts, and how serious it becomes.
The status quo is being tested, and the power hungry have few options to quell it. Police violence will turn the cameras on, and when the world sees that the police which are supposed to serve and protect still take the side of the corporations, it will press against the system harder. Walled Street has few options to stop the revolution.
One thing to watch for will be to see if Walled Street, at the hand of the Chairman of their Federal Reserve, lets the dollar loose so to raise stock prices. Bernanke is often criticized for his reliance on stock prices, but this is what the world knows and understands. Pensions and other investments that the common rely on is the market, and if it is doing well they sleep better. Bernanke can easily let the dollar depreciate, he is back doing POMOs and he is keeping rates low, and if he does it could well be to quell the uprising.
This will only work in the short term however, because it will increase the price of oil, and it won't take people long to realize that just because their stocks have gone up does not mean they have more wealth in real terms. But, this is Walled Streets only option.
So look for the dollar to fall. Hopefully the masses will not buy any nominal gains in stocks and keep the press on the banks. This movement, 'Occupy Walled Street', could be the straw that breaks the back of the fiat ponzi system.
Today this street lies in the middle of turmoil, with people protesting whom are not employed and most important not benefiting from the trading that goes on behind it. This is a trend that began from afar, for America is the last to adopt the protest scene. Yet this trend may end with America, as now the whole world has risen in unison to take part in the freedom we know we have.
Media has been borne anew with the death of the corporate ones. Now people use their own devices to spread the word. It took time but the resistance has bloomed. This revolution will not be televised, and it will be interesting to see how long it lasts, and how serious it becomes.
The status quo is being tested, and the power hungry have few options to quell it. Police violence will turn the cameras on, and when the world sees that the police which are supposed to serve and protect still take the side of the corporations, it will press against the system harder. Walled Street has few options to stop the revolution.
One thing to watch for will be to see if Walled Street, at the hand of the Chairman of their Federal Reserve, lets the dollar loose so to raise stock prices. Bernanke is often criticized for his reliance on stock prices, but this is what the world knows and understands. Pensions and other investments that the common rely on is the market, and if it is doing well they sleep better. Bernanke can easily let the dollar depreciate, he is back doing POMOs and he is keeping rates low, and if he does it could well be to quell the uprising.
This will only work in the short term however, because it will increase the price of oil, and it won't take people long to realize that just because their stocks have gone up does not mean they have more wealth in real terms. But, this is Walled Streets only option.
So look for the dollar to fall. Hopefully the masses will not buy any nominal gains in stocks and keep the press on the banks. This movement, 'Occupy Walled Street', could be the straw that breaks the back of the fiat ponzi system.
Tuesday, September 27, 2011
Gold, Long and Short
I am moving my timeline for gold's appreciation. I think we will see it build a base for the next few weeks. Gold will stay in the $1650 range until mid to late October, before it moves back to its recent highs. Then come late October we will see a move to $2,500 before the winter solstice.
We will see huge demand moving into physical with the Indian wedding season, as well as continued bullion demand from everywhere. The price will be at $2,500 in late December, and will likely consolidate at $2,200 in January and February. Then next Spring will see the move to $3300, and I think $3,300 is a very magic number for sentiment. I believe once the price is at $3,300 the status quo will have changed and most people will begin to invest in gold. That is why I think the move from $3,300 to $5k will be quick, and the move from $5k to $10k will be quicker. I think we will be at $10k by the next Presidential election, most likely assuring Ron Paul victory, even if he is written in.
We will see huge demand moving into physical with the Indian wedding season, as well as continued bullion demand from everywhere. The price will be at $2,500 in late December, and will likely consolidate at $2,200 in January and February. Then next Spring will see the move to $3300, and I think $3,300 is a very magic number for sentiment. I believe once the price is at $3,300 the status quo will have changed and most people will begin to invest in gold. That is why I think the move from $3,300 to $5k will be quick, and the move from $5k to $10k will be quicker. I think we will be at $10k by the next Presidential election, most likely assuring Ron Paul victory, even if he is written in.
Sunday, September 25, 2011
A Capitulating System
What we are witnessing is the death throes of the financial system. It is in full capitulation. There is a big move coming up, and everyone is going to have to pick a side, because there will be no middle ground.
The strict deflationist camp says that all prices are going down, and capital will move into USTs and dollars. This is the typical scenario concerning deflation for the last umpteen years.
The strict inflationists point to the money printing of the central banks, and say prices are going to rise. Inflation will be the Fed's main concern and they will keep their target come hell or high water.
Stagflation is also a worry. Here, the concern is that prices will rise, but that wages will not keep pace. This has been the scenario so far, albeit without the proper inflation numbers. Using oil in the CPI, inflation is much higher than the US government is saying.
All of these scenarios are likely, and in fact, all will occur. That is why the system is dying; it is pricing all of this in at once. Once the system realizes the dire straights, it will finally roll over. Anything could happen to equities, but concerning the dollar and USTs, I don't think they are the safe haven the once were. Maybe they do not go into hyperflation, but they should not be the only safe play. Precious metals will keep that hedge.
With oil production peaking, oil will not fall much, and this too will keep a lid on the dollar, since they trade inversely. This scenario is bullish for silver, as silver trades with oil, and with gold.
In all likelihood, the system is set to fail, and I am not sure how much longer it can be propped up. What matters is what new policies arise. If money printing continues at its breakneck pace, inflation will take the lead. If not, the massive deflation hitting real estate etc could take down equities. I would also not be surprised if stagflation ruled for a few months while politicians and policy makers messed around.
The strict deflationist camp says that all prices are going down, and capital will move into USTs and dollars. This is the typical scenario concerning deflation for the last umpteen years.
The strict inflationists point to the money printing of the central banks, and say prices are going to rise. Inflation will be the Fed's main concern and they will keep their target come hell or high water.
Stagflation is also a worry. Here, the concern is that prices will rise, but that wages will not keep pace. This has been the scenario so far, albeit without the proper inflation numbers. Using oil in the CPI, inflation is much higher than the US government is saying.
All of these scenarios are likely, and in fact, all will occur. That is why the system is dying; it is pricing all of this in at once. Once the system realizes the dire straights, it will finally roll over. Anything could happen to equities, but concerning the dollar and USTs, I don't think they are the safe haven the once were. Maybe they do not go into hyperflation, but they should not be the only safe play. Precious metals will keep that hedge.
With oil production peaking, oil will not fall much, and this too will keep a lid on the dollar, since they trade inversely. This scenario is bullish for silver, as silver trades with oil, and with gold.
In all likelihood, the system is set to fail, and I am not sure how much longer it can be propped up. What matters is what new policies arise. If money printing continues at its breakneck pace, inflation will take the lead. If not, the massive deflation hitting real estate etc could take down equities. I would also not be surprised if stagflation ruled for a few months while politicians and policy makers messed around.
Friday, September 23, 2011
A Call to Arms
Sometimes it takes a conversation to spur a thought. I wrote the following on the site we all frequent earlier today. If you do not frequent the site, I am sorry, because the first rule is......
To have a short position, someone either needs to own the security, or needs to be able to locate it; the latter is when we call it a 'naked short'. There is not enough gold bullion to locate to justify their short positions. This mean that their shorts are unqualified. So if the CFTC ever decided to be a properly run government organization (they won't be) then they would regulate the shorts, sanction JPM et al, and nix the shorts.
Yet, just like in life, reality always descends eventually. There will be a time when traders understand what is happening, and there will be a panic move to get physical. I don't think this will happen until gold is in the range of $3300-$5k. Once it does there is no top on gold. It could go to $10k, it could go to $40k, it may very well take the dollar under and its price be invaluable.
To put this in context, look at oil. Who bought the SPR release, and why? JPM did, so they could locate their shorts. The oil market is better regulated than gold, and so they needed to prove their shorts. Thus Obama did another favor for the Banking Houses and greenlighted the release; JPM bought the oil and stashed it offshore, and JPM bought their short positions.
Of course, there is a direct way to go after these measures, and that is by buying physical silver. Silver trades with oil 1:1 on the long term. Oil trades inversely 1:1 with the dollar on the long term. Take a position on silver, and you take the most promising short position against the dollar possible. Shorting the dollar is the final battle, because it is the dollar that holds the world from reclaiming its prosperity. The dollar backs the Banking Houses; it is their only weapon in the financial war that has destroyed the America our fore fathers built. The dollar, and the corporations that back it, is exactly why this great country was founded.
It funds the war machine, and it is the war machine that is Wall Streets prize possession. Without it, Wall Street has no power over the oil producing States. The dollar is soaked in the blood of young Americans who have been stricken by poverty and had little options available. The catch 22 of the dollar has pitted America against itself.
Victory will be had by real monie, because the dollar has no backing and is an amalgamation of creative thinking. Alchemy took hold of money after the philosopher's stone failed. The dollar has no intrinsic value; it has no general worth and is merely an IOU. The dollar is backed by lies.
Silver is real monie. This real monie has had the same short positions unjustly levied against it. Since silver is cheap, it is rather easy for us to target. It is the belly of the beast.
I will be visiting the coin store today, and I will be buying with both hands. I believe that our best hope to take the Banking Houses down is to take possession of silver. This because silver is a very industrial commodity and if we squeeze the physical market the price will rise. Then, when the price rises due to supply constraints, JPM's shorts will crush their balance sheet- this has already been happening over the course of the last year and a half, since we started our movement. So please, join me, take down the Banking Houses, take back your monie and wealth, and take back your freedom!
BUY SILVER!
To have a short position, someone either needs to own the security, or needs to be able to locate it; the latter is when we call it a 'naked short'. There is not enough gold bullion to locate to justify their short positions. This mean that their shorts are unqualified. So if the CFTC ever decided to be a properly run government organization (they won't be) then they would regulate the shorts, sanction JPM et al, and nix the shorts.
Yet, just like in life, reality always descends eventually. There will be a time when traders understand what is happening, and there will be a panic move to get physical. I don't think this will happen until gold is in the range of $3300-$5k. Once it does there is no top on gold. It could go to $10k, it could go to $40k, it may very well take the dollar under and its price be invaluable.
To put this in context, look at oil. Who bought the SPR release, and why? JPM did, so they could locate their shorts. The oil market is better regulated than gold, and so they needed to prove their shorts. Thus Obama did another favor for the Banking Houses and greenlighted the release; JPM bought the oil and stashed it offshore, and JPM bought their short positions.
Of course, there is a direct way to go after these measures, and that is by buying physical silver. Silver trades with oil 1:1 on the long term. Oil trades inversely 1:1 with the dollar on the long term. Take a position on silver, and you take the most promising short position against the dollar possible. Shorting the dollar is the final battle, because it is the dollar that holds the world from reclaiming its prosperity. The dollar backs the Banking Houses; it is their only weapon in the financial war that has destroyed the America our fore fathers built. The dollar, and the corporations that back it, is exactly why this great country was founded.
It funds the war machine, and it is the war machine that is Wall Streets prize possession. Without it, Wall Street has no power over the oil producing States. The dollar is soaked in the blood of young Americans who have been stricken by poverty and had little options available. The catch 22 of the dollar has pitted America against itself.
Victory will be had by real monie, because the dollar has no backing and is an amalgamation of creative thinking. Alchemy took hold of money after the philosopher's stone failed. The dollar has no intrinsic value; it has no general worth and is merely an IOU. The dollar is backed by lies.
Silver is real monie. This real monie has had the same short positions unjustly levied against it. Since silver is cheap, it is rather easy for us to target. It is the belly of the beast.
I will be visiting the coin store today, and I will be buying with both hands. I believe that our best hope to take the Banking Houses down is to take possession of silver. This because silver is a very industrial commodity and if we squeeze the physical market the price will rise. Then, when the price rises due to supply constraints, JPM's shorts will crush their balance sheet- this has already been happening over the course of the last year and a half, since we started our movement. So please, join me, take down the Banking Houses, take back your monie and wealth, and take back your freedom!
BUY SILVER!
Wednesday, September 21, 2011
Operation Twist II
Gold has held support at $1775. In the face of market turmoil this shows how strong gold is. It is what makes the world of finance go 'round, literally.
Bernanke was forced to loan out a tremendous amount of gold to finance his operations, thus one reason why gold has appreciated so much over the course of his tenure. The dollar still spins it's wheels at DXY 77, as equities fall down to earth. The inorganic nature of bonds seems to be the only thing left from turning the system back over to a gold based one. That day will come soon.
The demand for US Treasuries has soared, which is why Bernanke is the only major buyer now. If he did not have 14k tonnes of gold to loan then his game would be up. He will loan gold until the wheels fall off.
Operation Twist II will buy at the long end of the curve, flattening it, and setting it up for a violent move north. The short term rates always move first, and now that he has focused on the back end he has left the most important part vulnerable. After all, how many more easing efforts can he do?
Gold has tested support three days at $1775, and three is the magic number. I would look for gold to move back up to the middle of its range by Friday. Then we will wait on news to figure out if we are moving higher and testing the recent highs, or if we find support again.
Bernanke was forced to loan out a tremendous amount of gold to finance his operations, thus one reason why gold has appreciated so much over the course of his tenure. The dollar still spins it's wheels at DXY 77, as equities fall down to earth. The inorganic nature of bonds seems to be the only thing left from turning the system back over to a gold based one. That day will come soon.
The demand for US Treasuries has soared, which is why Bernanke is the only major buyer now. If he did not have 14k tonnes of gold to loan then his game would be up. He will loan gold until the wheels fall off.
Operation Twist II will buy at the long end of the curve, flattening it, and setting it up for a violent move north. The short term rates always move first, and now that he has focused on the back end he has left the most important part vulnerable. After all, how many more easing efforts can he do?
Gold has tested support three days at $1775, and three is the magic number. I would look for gold to move back up to the middle of its range by Friday. Then we will wait on news to figure out if we are moving higher and testing the recent highs, or if we find support again.
Thursday, September 15, 2011
European Explosion
The "M"arket "M"arkers did what I expected them to do and come together with a very incestuous bailout. First China pledged support of Europe, then Geithner demanded the status quo stay, and now Europe has offered up their sovereignty for pennies on the dollar.
Gold crashed because it was loaned out to finance the effort. I think its support is at $1775. As I write it is slipping past that but maybe support will catch around there. Oil was up today on the back of a weak dollar, which shows how oil still trades directly against the greenback; this is one trade that has not failed yet. Stocks capitulate, as they have no idea what to do in this sea of financial turmoil. They should go down but Geithner, Bernanke, and their Working Group will not let that happen.
On the horizon something ominous looms. It can't be made out, but we can see it's black cloud like shadow. What ever it is it will destroy the fiat ponzi. We will meet it soon, and find out accordingly.
Gold crashed because it was loaned out to finance the effort. I think its support is at $1775. As I write it is slipping past that but maybe support will catch around there. Oil was up today on the back of a weak dollar, which shows how oil still trades directly against the greenback; this is one trade that has not failed yet. Stocks capitulate, as they have no idea what to do in this sea of financial turmoil. They should go down but Geithner, Bernanke, and their Working Group will not let that happen.
On the horizon something ominous looms. It can't be made out, but we can see it's black cloud like shadow. What ever it is it will destroy the fiat ponzi. We will meet it soon, and find out accordingly.
Tuesday, September 13, 2011
Inflation: Resources vs. Debt
The more debt issued, the more inflation in the system. Inflation is when the debt is weighed against the resource base. When the resource base stays the same or decreases, while debt increases, this causes inflation.
The resource base includes goods, but only critical goods for survival. Food, water, oil, and precious metals are at the top of the list. Food and water are having a rough time because of man and mother nature. Man because we are using GMOs and this is destroyer the DNA of the crops, and killing honey bees. Nature because the world is always in flux, and with man hurting his chances, nature is leaving humanity in the dust in many parts of the world.
Oil production, and precious metals (for the most part) have peaked production. This is important because oil is what runs the economy, and precious metals back the debt (officially or not).
China is betting that they can afford higher precious metal and oil prices, which is why they continue to bailout the fiat ponzi. The are calling the West's bluff. They are confident with the oil they receive from Russia and the Middle East, and they are confident with their gold production.
This may be smart, or it may be as dumb as the West asking for more and more bailouts. Either way, the cake is baked: there is a lot of inflation in the pipeline.
The resource base includes goods, but only critical goods for survival. Food, water, oil, and precious metals are at the top of the list. Food and water are having a rough time because of man and mother nature. Man because we are using GMOs and this is destroyer the DNA of the crops, and killing honey bees. Nature because the world is always in flux, and with man hurting his chances, nature is leaving humanity in the dust in many parts of the world.
Oil production, and precious metals (for the most part) have peaked production. This is important because oil is what runs the economy, and precious metals back the debt (officially or not).
China is betting that they can afford higher precious metal and oil prices, which is why they continue to bailout the fiat ponzi. The are calling the West's bluff. They are confident with the oil they receive from Russia and the Middle East, and they are confident with their gold production.
This may be smart, or it may be as dumb as the West asking for more and more bailouts. Either way, the cake is baked: there is a lot of inflation in the pipeline.
Monday, September 12, 2011
The Big Trades
Precious metals will appreciate for another decade, and this will prove to be a great investment opportunity. Along the way, there will be plenty of other opportunities. Many of them have to do with the destruction of the fiat ponzi.
On the Fall solstice the Federal Reserve will show their hand, and begin to implement further easing. How fitting that this will happen on the solstice! The pagan alchemists will grow their fiat from their tree of knowledge. Unfortunately for them the tree is not real and soon the world will know what this false worship will beget.
The dollar will be weakened further. Rates will be held low so that the Federal Reserve can make as much as possible when bonds come due. The Treasurie also needs this premium. With European bonds collapsing European investors will go to cash, and that means Euros, as dollars will not store wealth with Bernanke and Geithner at the helm.
So the EUR/USD will go to $2.00 during the next year, just as the Mark once did. Greece and other small States will leave the Euro, and this will make the Euro more expensive. This is will help keep US rates low, and will keep the dollar low too.
With the dollar dropping, oil will rise. Because the Euro will gain, Brent should come back to a more normal price vs. WTI. I think by late winter we could be looking at $150 per barrel. I think that due to price action of fiat, but also because of supply. OPEC is 'cutting' supply. What this really means is that OPEC has peaked production.
With supply dropping prices are set to increase, for oil and precious metals. This will squeeze the dollar. So the dollar is getting squeezed on all sides. Equity looks weak, and will not make real gains, but it will either rise marginally or trade sideways while the dollar flounders. This will provide perfect cover for finance to continue to loot the system with Keynesian policy.
Monetary solutions are QE. Fiscal solutions are Stimuluses. These measures will continue until the system falls apart. Once again, the fiat ponzi is getting squeezed from all sides, and it is only a matter of time before it explodes.
On the Fall solstice the Federal Reserve will show their hand, and begin to implement further easing. How fitting that this will happen on the solstice! The pagan alchemists will grow their fiat from their tree of knowledge. Unfortunately for them the tree is not real and soon the world will know what this false worship will beget.
The dollar will be weakened further. Rates will be held low so that the Federal Reserve can make as much as possible when bonds come due. The Treasurie also needs this premium. With European bonds collapsing European investors will go to cash, and that means Euros, as dollars will not store wealth with Bernanke and Geithner at the helm.
So the EUR/USD will go to $2.00 during the next year, just as the Mark once did. Greece and other small States will leave the Euro, and this will make the Euro more expensive. This is will help keep US rates low, and will keep the dollar low too.
With the dollar dropping, oil will rise. Because the Euro will gain, Brent should come back to a more normal price vs. WTI. I think by late winter we could be looking at $150 per barrel. I think that due to price action of fiat, but also because of supply. OPEC is 'cutting' supply. What this really means is that OPEC has peaked production.
With supply dropping prices are set to increase, for oil and precious metals. This will squeeze the dollar. So the dollar is getting squeezed on all sides. Equity looks weak, and will not make real gains, but it will either rise marginally or trade sideways while the dollar flounders. This will provide perfect cover for finance to continue to loot the system with Keynesian policy.
Monetary solutions are QE. Fiscal solutions are Stimuluses. These measures will continue until the system falls apart. Once again, the fiat ponzi is getting squeezed from all sides, and it is only a matter of time before it explodes.
Friday, September 9, 2011
Blame Europe
Apparently America can not handle blame. Fault is never owned here. It is always an outside force that causes the problem. Interestingly Europe is beginning to blame the US, so I guess it is just the nature of the status quo now. Either way, the game is almost over, and people can not handle the problem.
The news is reporting that today's equity downturn was caused by Europe, when any able minded individual should understand the problem is the system. The system. The system is the problem.
There is no difference between the European system and the US system. They are the same. Greece needs to pass austerity, for a bailout. California needs to pass austerity, for a bailout. Here we point to the fact that US bonds are low as evidence for demand, but the Federal Reserve is buying all the bonds, which negates that theory. In Europe the ECB has been stepping in and buying the Greek bonds. It is the same solution to the problem.
This weekend may be the weekend where a European country implodes, and it looks to be Greece. If that happens all European banks will be affected directly, and because of that the rest of the world will suffer. If that happens, European investors will turn to the Euro instead of the bonds, Jim Rogers has already recognized this. I recognized it months ago, as I started saying that when Europe implodes, the EUR/USD would go to $2.00.
This in part is because the dollar is weak and will get weaker. Obama's "Jobs Program" will spin $4.47 trillion after the banks use fractional reserve lending to spin the loans. Bernanke will use new tools to monetize the debt.
Also, the Swiss have backed the Euro. This may have been stupid, but it was a monumental decision. The Euro is not strong, but it looks to take the benefit of a European collapse. Of course, the major beneficiaries are precious metals and other commodities. Look for precious metals to sky rocket from here on out.
The news is reporting that today's equity downturn was caused by Europe, when any able minded individual should understand the problem is the system. The system. The system is the problem.
There is no difference between the European system and the US system. They are the same. Greece needs to pass austerity, for a bailout. California needs to pass austerity, for a bailout. Here we point to the fact that US bonds are low as evidence for demand, but the Federal Reserve is buying all the bonds, which negates that theory. In Europe the ECB has been stepping in and buying the Greek bonds. It is the same solution to the problem.
This weekend may be the weekend where a European country implodes, and it looks to be Greece. If that happens all European banks will be affected directly, and because of that the rest of the world will suffer. If that happens, European investors will turn to the Euro instead of the bonds, Jim Rogers has already recognized this. I recognized it months ago, as I started saying that when Europe implodes, the EUR/USD would go to $2.00.
This in part is because the dollar is weak and will get weaker. Obama's "Jobs Program" will spin $4.47 trillion after the banks use fractional reserve lending to spin the loans. Bernanke will use new tools to monetize the debt.
Also, the Swiss have backed the Euro. This may have been stupid, but it was a monumental decision. The Euro is not strong, but it looks to take the benefit of a European collapse. Of course, the major beneficiaries are precious metals and other commodities. Look for precious metals to sky rocket from here on out.
Thursday, September 8, 2011
Helicopter Time
Bernanke front ran Obama's speech today, once again confusing the rational consumer. Yes, there will be more stimulus, and easing to infinity. Take that to the bank.
The first thing that happened after Bernanke took his foot from his mouth was a sharp rise in the DXY. This is because in order to move the market, money needs to unwind. This was the short against the dollar unwinding, so that it can be put to use buying things like gold, silver, and oil.
Bernanke is such an opportunist, isn't he? He crept into the spot light ahead of Obama's Jobs Program speech, a speech I started writing about one and a half years ago, only to say what we already knew: he will keep rates at zero forever, come hell or high water.
The world is mired in paradox. The world has no liquidity, yet it has too much liquidity. Unemployment is outrages, but food stamps keep America fed. Europeans can only vacation for two weeks instead of four; oh the humanity! Soon the system will collapse. Will it be one year? Or two? It matters not. The policie has stayed the same for decades: keep the people fed, and loot the system by the back door. The house is almost empty.
So, to reiterate, all things will now come unhinged. Precious metals and oil will fly, the dollar will die, and the Euro will levitate while European bonds crash in value. Bernanke will print $447 billion and loan it to the Majors, they will use fractional reserve lending and turn it into $4.47 trillion, and M2 will rise sharply. This will crater the value of the dollar, and, well, you know the rest.
The first thing that happened after Bernanke took his foot from his mouth was a sharp rise in the DXY. This is because in order to move the market, money needs to unwind. This was the short against the dollar unwinding, so that it can be put to use buying things like gold, silver, and oil.
Bernanke is such an opportunist, isn't he? He crept into the spot light ahead of Obama's Jobs Program speech, a speech I started writing about one and a half years ago, only to say what we already knew: he will keep rates at zero forever, come hell or high water.
The world is mired in paradox. The world has no liquidity, yet it has too much liquidity. Unemployment is outrages, but food stamps keep America fed. Europeans can only vacation for two weeks instead of four; oh the humanity! Soon the system will collapse. Will it be one year? Or two? It matters not. The policie has stayed the same for decades: keep the people fed, and loot the system by the back door. The house is almost empty.
So, to reiterate, all things will now come unhinged. Precious metals and oil will fly, the dollar will die, and the Euro will levitate while European bonds crash in value. Bernanke will print $447 billion and loan it to the Majors, they will use fractional reserve lending and turn it into $4.47 trillion, and M2 will rise sharply. This will crater the value of the dollar, and, well, you know the rest.
Wednesday, September 7, 2011
Gossip Kills
A boss of mine once said, 'Complacency kills.' This is apropos to any situation. Furthermore, gossip kills, in today's day and age. It is gossip that makes us complacent, for the most part.
While gossiping, people miss the little things in life; the little important things. Two girls could walk past Cupid while discussing the Kardision TV show. Two men could walk by Aphrodite while discussing sports. I am sure it happens all the time.
Today, no choices are had, they are forced. People discuss topics given to them by the main stream media. There is very little creative thought. Lovers manage their time. Families subdue theirs. Life is not known until it is too late.
The culture has unraveled at the strings. The emperor of humanity is naked, and even the children have not noticed. This because the parents hide all eyes behind a veil of gossip. Now people have steered clear off of a proverbial cliff. The gossip of our society has killed the dream of nirvana, before the dream had a chance to be realized.
While gossiping, people miss the little things in life; the little important things. Two girls could walk past Cupid while discussing the Kardision TV show. Two men could walk by Aphrodite while discussing sports. I am sure it happens all the time.
Today, no choices are had, they are forced. People discuss topics given to them by the main stream media. There is very little creative thought. Lovers manage their time. Families subdue theirs. Life is not known until it is too late.
The culture has unraveled at the strings. The emperor of humanity is naked, and even the children have not noticed. This because the parents hide all eyes behind a veil of gossip. Now people have steered clear off of a proverbial cliff. The gossip of our society has killed the dream of nirvana, before the dream had a chance to be realized.
Tuesday, September 6, 2011
Just a Taste
Many Americans have had a taste of the good life now. Many have flown, many have had a well paying job, many have experienced the life of luxury. Now that is about to end.
Once the dollar loses its status as the reserve currencie the little things that Americans have enjoyed will go the way side. The rest of the world is not making it easy for the dollar. The Swiss have joined the Euro; yes, that is what happened today. The BRICs have aligned against the Super Power. No one is rooting for America, maybe not America itself.
Apparently America is very masochistic. it was obvious it was sadistic by its insane war mongering, but now it has taken a turn into absolute complacency, and it shows no concern. The problem is that everyone is focused on the men and women running the system, when the system itself is the problem.
Society is too self involved. Everyone that has money is too concerned about keeping it. Sharing is not in the mindset of the status quo. Taking time away from a busy day to spend for the future's concern is too caring. Caring is not cool. People no longer care about their brothers and sisters.
Where are the hippies who pride themselves with sticking up for the common man? Where are the Tea Partiers who understand, or rather, who understood, the main problem with the financial system is that the income tax is unconstitutional? Where is everyone?
They are in their houses, these houses that have ended up owning them. They are in the bars, reaching for the stars of the flag. People have lost their foresight, and the turn has happened. Society has lost its fabric, and the strings are unraveling right before our eyes.
Once the dollar loses its status as the reserve currencie the little things that Americans have enjoyed will go the way side. The rest of the world is not making it easy for the dollar. The Swiss have joined the Euro; yes, that is what happened today. The BRICs have aligned against the Super Power. No one is rooting for America, maybe not America itself.
Apparently America is very masochistic. it was obvious it was sadistic by its insane war mongering, but now it has taken a turn into absolute complacency, and it shows no concern. The problem is that everyone is focused on the men and women running the system, when the system itself is the problem.
Society is too self involved. Everyone that has money is too concerned about keeping it. Sharing is not in the mindset of the status quo. Taking time away from a busy day to spend for the future's concern is too caring. Caring is not cool. People no longer care about their brothers and sisters.
Where are the hippies who pride themselves with sticking up for the common man? Where are the Tea Partiers who understand, or rather, who understood, the main problem with the financial system is that the income tax is unconstitutional? Where is everyone?
They are in their houses, these houses that have ended up owning them. They are in the bars, reaching for the stars of the flag. People have lost their foresight, and the turn has happened. Society has lost its fabric, and the strings are unraveling right before our eyes.
Monday, September 5, 2011
Fall Price Targets
The first thing that will happen this week will be a fall in the DXY. Obama will slice it up during his "Jobs Program" speech. He will spend his way to bankruptcy, and say later he didn't know any better. He didn't study economics, anyway. It must be Bernanke's fault.
Once that happens gold will capitulate. It will fall back to around $1850. Then it will catch on the strong bid of the Euro. The Euro is the stronger currencie of the two fiat because it trades for Mid East oil and Russian oil via a land bridge. America needs to receive their oil via sea, and this is very expensive. The other reason is that Euro bonds are getting cheap, and investors are going to cash. The Euro is the safe haven currencie, not the dollar, because Bernanke will print his way to the end of the road, and Geithner will continue piling on the debt.
Once gold catches a bid around $1850, and it will only take a week or so, the next move will push it through $2k and onward. Silver and oil will enjoy the death of the dollar, as they trade inversely to it. Silver will find itself around $100 by the winter solstice. Gold will be at $3300. Oil will be at $150.
The Euro will test $2.00 this time next year. It will not be a straight shot. The fiats will continue to trade back and forth. Other currencie that will rise are AUD, CAD, and the Swiss Franc. As you can tell, I think the trend will revolve around the death of the dollar.
After the dollar dies, and that should happen in about a year, then the vacuum of fiat will suck them all into oblivion. I think the DXY will be at 66 come this winter solstice. By that time people might catch on to what is happening. Maybe not.
Once that happens gold will capitulate. It will fall back to around $1850. Then it will catch on the strong bid of the Euro. The Euro is the stronger currencie of the two fiat because it trades for Mid East oil and Russian oil via a land bridge. America needs to receive their oil via sea, and this is very expensive. The other reason is that Euro bonds are getting cheap, and investors are going to cash. The Euro is the safe haven currencie, not the dollar, because Bernanke will print his way to the end of the road, and Geithner will continue piling on the debt.
Once gold catches a bid around $1850, and it will only take a week or so, the next move will push it through $2k and onward. Silver and oil will enjoy the death of the dollar, as they trade inversely to it. Silver will find itself around $100 by the winter solstice. Gold will be at $3300. Oil will be at $150.
The Euro will test $2.00 this time next year. It will not be a straight shot. The fiats will continue to trade back and forth. Other currencie that will rise are AUD, CAD, and the Swiss Franc. As you can tell, I think the trend will revolve around the death of the dollar.
After the dollar dies, and that should happen in about a year, then the vacuum of fiat will suck them all into oblivion. I think the DXY will be at 66 come this winter solstice. By that time people might catch on to what is happening. Maybe not.
Our Jobs, Our Companies
A job is not something that is permanent, and these corporations are not any ones persons corporations. The corporations have no allegiance to anyone in particular. They function apart from any code of ethics. This is why they were created.
Instead of people being upset with a Rockefeller, now they become upset with Exxon, or BP. The corporation is then fined, and life goes on, with no one held accountable.
So when people say "our jobs" and "our corporations" they do not understand, they are not ours. They are temporary means of labor. There is no permanent structure in fascism. The only thing permanent is the corporations that tower over the world like a dangerous beast.
Instead of people being upset with a Rockefeller, now they become upset with Exxon, or BP. The corporation is then fined, and life goes on, with no one held accountable.
So when people say "our jobs" and "our corporations" they do not understand, they are not ours. They are temporary means of labor. There is no permanent structure in fascism. The only thing permanent is the corporations that tower over the world like a dangerous beast.
Sunday, September 4, 2011
Fukashima
In a few short weeks the world will visually find out what happens when a nuclear plant explodes and no precaution is taken. Mothers in their first trimester when Fukashima blew are about to give birth to babies exposed to massive amounts of radiation. The visual of broken DNA sequences will tip the world on the reality that it faces concerning what will be the greatest man made disaster in the history of this planet.
Saturday, September 3, 2011
It's September
Anyone familiar with this blog knows I thought, and still think, the big move in precious metals will happen this fall and winter. I still believe that, even with gold's 10% plus move this summer. Gold leverages the system, and the system is failing. The leverage will have to be proportionally increased and with finance falling apart, gold is the only thing that will keep it together.
I think gold will need to rise a few hundred dollars every month to keep the numbers where they are now. Interest rates want to rise and holding them back is inorganic. Equity wants to drop and holding it up will kill fiat. Killing fiat kills the ponzi.
Yet, this is what needs to happen to continue the front of recovery. Obama's Job Program will do nothing but spend money short term and will not fuel growth. The banks are failing because their balance sheets are underwater. Economics still thinks that spending money now and paying for it later is the answer to create growth; there is nothing further from the truth when there is no revenue stream.
The river of growth has dried up due to poor irrigation techniques. We are now stranded in the desert of the real. There is nothing saving finance, except higher gold prices, since it is the gold loaned out by Central Banks that is their only performing assets.
I think gold will need to rise a few hundred dollars every month to keep the numbers where they are now. Interest rates want to rise and holding them back is inorganic. Equity wants to drop and holding it up will kill fiat. Killing fiat kills the ponzi.
Yet, this is what needs to happen to continue the front of recovery. Obama's Job Program will do nothing but spend money short term and will not fuel growth. The banks are failing because their balance sheets are underwater. Economics still thinks that spending money now and paying for it later is the answer to create growth; there is nothing further from the truth when there is no revenue stream.
The river of growth has dried up due to poor irrigation techniques. We are now stranded in the desert of the real. There is nothing saving finance, except higher gold prices, since it is the gold loaned out by Central Banks that is their only performing assets.
Thursday, August 25, 2011
The Only Bubble Left
The only bubble left to have, besides what will be a precious metals bubble occurring in about ten years, is the fiat bubble. The Tech bubble was popped as fast as it ballooned, the easy liquidity bubble followed, and now all that is left is fiat currencie. Once the fiat currencie bubble pops, and only then, will there be a gold bubble.
The fiat bubble may have a year or two left, depending on how fast people wake to it. If people do not understand it, it could last several more years. Every country, and every establishment is fine boiling the frog slow. It means that more control can be leveraged out of the police state, and taking away freedom from the common person is the main goal.
The financiers and oilgarchs are taking their time pushing on the string, allowing both sides of the system to stay in flux. The economists want easy liquidity, while the other side ask for austerity. Both sides mean to slowly defile the system that has been set in place.
Tomorrow Bernanke will play his role, if that is by announcing anything or not. He is already providing liquidity to Europe, and this has dire consequences for fiat currencie. He will continue to inflate the fiat bubble, until there is only the gold bubble left to inflate.
The fiat bubble may have a year or two left, depending on how fast people wake to it. If people do not understand it, it could last several more years. Every country, and every establishment is fine boiling the frog slow. It means that more control can be leveraged out of the police state, and taking away freedom from the common person is the main goal.
The financiers and oilgarchs are taking their time pushing on the string, allowing both sides of the system to stay in flux. The economists want easy liquidity, while the other side ask for austerity. Both sides mean to slowly defile the system that has been set in place.
Tomorrow Bernanke will play his role, if that is by announcing anything or not. He is already providing liquidity to Europe, and this has dire consequences for fiat currencie. He will continue to inflate the fiat bubble, until there is only the gold bubble left to inflate.
Wednesday, August 24, 2011
America's Last Day
The markets: who really cares, right? Gold and silver have storable value, and everything else is worth the paper it is printed on. That being said, there will be fire works, if not a fire storm, starting Friday. Bernanke has his back up against a wall and the walls are closing in. Bernanke's policy is boxed in, but he thinks he is Houdini.
How will he have ZIRP for the next few years without a stimulus/easing program? Is China going to stay in the market, along with all the other indirect bidders? Are the Private Dealers going to be able to afford the debt, without the Fed flipping the bonds for them? I do not think this will happen, I do not think it is possible.
And Bernanke can not achieve the impossible. He is not a magician, despite his wishes. His other alternative is to let rates rise, and then all social programs will get cut due to the interest on the debt outweighing inflows. If that happens then America is debt in the water, and it will be forced to default, and not for political reasons. A default in that scenario will prove Keynesian policy and monetary policy does not work.
Gold sold off like I thought it would, albeit at a higher price than I thought. Gold's bull run moved higher than my target price of $1850, one that I had for 9 months. Once it got going, it was obvious the reason: Bernanke needed its price to appreciate so that he could get the highest return possible when he loans it out. Now he can afford QE 3, because he has his cash from his gold loans.
This is why Bernanke is such a donkey. He acts like he does not know what gold is used for by the Fed, when gold is loaned out to other Central Banks as a performing loan. It is, in fact, the only performing loan on his books. Everytime he has a comment concerning tradition, he lies.
How will he have ZIRP for the next few years without a stimulus/easing program? Is China going to stay in the market, along with all the other indirect bidders? Are the Private Dealers going to be able to afford the debt, without the Fed flipping the bonds for them? I do not think this will happen, I do not think it is possible.
And Bernanke can not achieve the impossible. He is not a magician, despite his wishes. His other alternative is to let rates rise, and then all social programs will get cut due to the interest on the debt outweighing inflows. If that happens then America is debt in the water, and it will be forced to default, and not for political reasons. A default in that scenario will prove Keynesian policy and monetary policy does not work.
Gold sold off like I thought it would, albeit at a higher price than I thought. Gold's bull run moved higher than my target price of $1850, one that I had for 9 months. Once it got going, it was obvious the reason: Bernanke needed its price to appreciate so that he could get the highest return possible when he loans it out. Now he can afford QE 3, because he has his cash from his gold loans.
This is why Bernanke is such a donkey. He acts like he does not know what gold is used for by the Fed, when gold is loaned out to other Central Banks as a performing loan. It is, in fact, the only performing loan on his books. Everytime he has a comment concerning tradition, he lies.
Saturday, August 20, 2011
Panic on the Exchange
There are many factors for the selloff: prices were overvalued, there was easy money pumped into finance via Central Banks, but the main one was that Major Banking Houses needed liquidity. Major Banks are insolvent due to toxic collateral from fraudulent loans. These banks needed needed cash, and fast.
The prop desks of the Major banks, from Europe to America, had to sell stakes in equities among other things to have enough assets to balance their balance sheets. This was the major cause of the correction. Some banks, like Bank of America, were forced to liquidate their portfolios. Some, like JP Morgan, were shorting the market knowing that this move was going to happen. So while Bank of America sold their equity positions in Exxon and Hess, JP Morgan was selling calls and using the Special Petroleum Release to locate their shorts.
This caused a huge downward move, and since JPM was going to benefit, the President's Working Group did not step in. I am sure JPM floated some Fed funds loans to Bank of America in exchange for the market making, too.
So now that the cascade has happened, the questions are, where do we go from here? Does the Federal Reserve step in and monetize the debt, so that Primary Dealers can flip their bonds and use the cash to get back into the corporate market place? Does the President's Working Group prop up the trades while the scheme begins anew? Will the Federal Reserves first move be to loan gold out, giving them cash to marginalize assets 100:1 by using fractional reserve lending?
All I know is that a big week lies in store for the markets.
The prop desks of the Major banks, from Europe to America, had to sell stakes in equities among other things to have enough assets to balance their balance sheets. This was the major cause of the correction. Some banks, like Bank of America, were forced to liquidate their portfolios. Some, like JP Morgan, were shorting the market knowing that this move was going to happen. So while Bank of America sold their equity positions in Exxon and Hess, JP Morgan was selling calls and using the Special Petroleum Release to locate their shorts.
This caused a huge downward move, and since JPM was going to benefit, the President's Working Group did not step in. I am sure JPM floated some Fed funds loans to Bank of America in exchange for the market making, too.
So now that the cascade has happened, the questions are, where do we go from here? Does the Federal Reserve step in and monetize the debt, so that Primary Dealers can flip their bonds and use the cash to get back into the corporate market place? Does the President's Working Group prop up the trades while the scheme begins anew? Will the Federal Reserves first move be to loan gold out, giving them cash to marginalize assets 100:1 by using fractional reserve lending?
All I know is that a big week lies in store for the markets.
Friday, August 19, 2011
So It Begins
It begins: the final move into whatever way the financial world crumbles has started. It could mean hyperinflation of the currencie, it could mean using a gold standard to back currencie, it could mean the Dow falls to Zero, it could mean anything, and it has begun.
I have watched in amazement as the world has revalued gold up and up higher this summer, and until now, I felt like I was dreaming, but waking up and seeing that my all important number of $1850 was broken last night, I realize that this is not a standard move- this is the move that reintroduces the world to gold being monie.
I have written about $1850 so much that I think I was actually numb from it. I had $1850 as my target price for last winter's solstice starting the spring before. When I did not get close I went to the drawing board and became more conservative. Then I watched gold breakout this summer, something that is very unusual, but still I thought this move would happen in Fall.
So now here we are, the end of summer, and gold is heading home full steam. This is why JPM called gold to be at $2500 by the end of the year, because gold has nothing stopping it. There are a few reasons for this. Central Banks need their gold worth something so to leverage their bad loans, as both sides of the balance sheet need to be balanced (Assets=Liabilities), and also investors will try to catch the wind by throwing their dollars at the metal.
Most investors will buy Barclay's ishares and eventually they will come up empty handed. Only the five largest shareholders will get payment in physical; everyone else will get paid in cash. Cash that is likely to be worthless.
So here goes nothing: Gold to the moon!
I have watched in amazement as the world has revalued gold up and up higher this summer, and until now, I felt like I was dreaming, but waking up and seeing that my all important number of $1850 was broken last night, I realize that this is not a standard move- this is the move that reintroduces the world to gold being monie.
I have written about $1850 so much that I think I was actually numb from it. I had $1850 as my target price for last winter's solstice starting the spring before. When I did not get close I went to the drawing board and became more conservative. Then I watched gold breakout this summer, something that is very unusual, but still I thought this move would happen in Fall.
So now here we are, the end of summer, and gold is heading home full steam. This is why JPM called gold to be at $2500 by the end of the year, because gold has nothing stopping it. There are a few reasons for this. Central Banks need their gold worth something so to leverage their bad loans, as both sides of the balance sheet need to be balanced (Assets=Liabilities), and also investors will try to catch the wind by throwing their dollars at the metal.
Most investors will buy Barclay's ishares and eventually they will come up empty handed. Only the five largest shareholders will get payment in physical; everyone else will get paid in cash. Cash that is likely to be worthless.
So here goes nothing: Gold to the moon!
Thursday, August 18, 2011
My Dream Last Night
I won't be making this a dream journal, don't worry, but I want to brief one of mine from last night. I had a momentary dream that the markets were down 1k today. I also want to add I NEVER dream about finance. I only dream about my little bubble of a world- my freinds of old. So imagine my surprise when I awoke this morn, later than usually, to find everything scrapping the bottom of the barrel once again.
The Fed's board said they did not want to be involved in markets yesterday, which is surprising considering that is all they have done for decades now. Is there a trick going on? And who benefits? It will be odd if gold is on par the Dow at $5k, but not out of the ordinary. I only say odd because that was not the plan of the Working Group on Financial Markets for the last, again, several decades.
If this happens everyone part of the establishment will resign, and pensions will turn negative. The only saving grace will be oil's price, which will remain cheap after it hit its production peak. This is not ironic, it was done on purpose by the oilgarchs. I suppose they figure they would rather not return as many dollars as they would like if that means they can keep the dollar ponzi going that much longer.
The Fed's board said they did not want to be involved in markets yesterday, which is surprising considering that is all they have done for decades now. Is there a trick going on? And who benefits? It will be odd if gold is on par the Dow at $5k, but not out of the ordinary. I only say odd because that was not the plan of the Working Group on Financial Markets for the last, again, several decades.
If this happens everyone part of the establishment will resign, and pensions will turn negative. The only saving grace will be oil's price, which will remain cheap after it hit its production peak. This is not ironic, it was done on purpose by the oilgarchs. I suppose they figure they would rather not return as many dollars as they would like if that means they can keep the dollar ponzi going that much longer.
Wednesday, August 17, 2011
Unicorns and Moonbeams
The world somehow is still playing imaginary; the dollar and all fiat assets have levitated for the last week. Real monie- precious metal, has inched up, but there has been no major move since gold topped at $1820. What is the next move, and what is the world waiting for?
Apparently, people have not figured it out yet. People are only jealous that gold is appreciating in value, and above all other "assets", whether they are or aren't such. Oil has come up a little, but has only pared losses. Fiat is still playing its game of pretend.
People will rather live in fairyland than face reality. This is the truth. Of course, reality always makes itself known, and it needs no precedent, but the slightest thing can bring it to the fore. A flap of a butterflies wings, if you will.
It could be Bernanke at Jackson Hole announcing, or not, QE 3. It could be Hugo Chavez demanding gold and it being delivered in the form of a cash check. At this point, anything could set the world of reality in motion, but the funny part, people will go to the ends of the earth to maintain the status quo.
So, we keep pretending. We pretend until the wheels fall off. This will be disastrous, like a night blacked out drunk awoken in an unknown place naked. This is what will happen, it looks like, as the world appears more belligerent than ever.
Apparently, people have not figured it out yet. People are only jealous that gold is appreciating in value, and above all other "assets", whether they are or aren't such. Oil has come up a little, but has only pared losses. Fiat is still playing its game of pretend.
People will rather live in fairyland than face reality. This is the truth. Of course, reality always makes itself known, and it needs no precedent, but the slightest thing can bring it to the fore. A flap of a butterflies wings, if you will.
It could be Bernanke at Jackson Hole announcing, or not, QE 3. It could be Hugo Chavez demanding gold and it being delivered in the form of a cash check. At this point, anything could set the world of reality in motion, but the funny part, people will go to the ends of the earth to maintain the status quo.
So, we keep pretending. We pretend until the wheels fall off. This will be disastrous, like a night blacked out drunk awoken in an unknown place naked. This is what will happen, it looks like, as the world appears more belligerent than ever.
Sunday, August 14, 2011
The Looming Support
This week's test of support is far and away the most important support test ever seen on US equities. If Dow 11k fails to hold, the event could trigger a watershed of selling. It would mean the President's Working Group has a new plan in mind other than holding up the markets. It would mean the Greatest Depression would be secure in name.
If equities hold on Monday, it would mean support has tested and held three times, which is the number I look for when analyzing support levels. It will take Tuesday to know, since markets have such a global market and either Asia or Europe could sell it off. So if equities hold through Tuesday trading, look for consolidation in the 11k range.
This would be perfect for QE 3, for II do not think that QE 3 can be announced as a solution to falling (or rather failing) markets. If markets continue to slide, then it shows stimuluses and quantitative easings have not worked. Yet if it holds, then it will be "needed" so as "to keep the recovery on track".
Gold sold off like I thought it would, even though it went way higher than II thought. Silver has been at the least a safe haven amidst the turmoil. Oil has traded with equities.
One reason I think prices of these goods will continue to rise is that they, oil and gold, have peaked production. I think the market follows these goods, and this while fiat fails as a store of wealth. That is why in the end I think that the rise of precious metals and oil is in the bag, while fiat fails. And while fiat fails equities become more expensive. Could the Dow trade even with gold? Yes, and it will. But at what price. Does it matter? Dow 11k, gold $11k, once again, does it matter?
And this will likely be the end result. Gold will equal the Dow again like it had until the early '80s. Oil will rise, but higher gold prices could stem the gains. Yet silver trades 1:1 with oil, and if gold goes higher so will silver, because both define money. This is why I see not only higher gold, and silver, but also oil, for the trend together. Oh, and never forget platinum. She is there with them, too.
If equities hold on Monday, it would mean support has tested and held three times, which is the number I look for when analyzing support levels. It will take Tuesday to know, since markets have such a global market and either Asia or Europe could sell it off. So if equities hold through Tuesday trading, look for consolidation in the 11k range.
This would be perfect for QE 3, for II do not think that QE 3 can be announced as a solution to falling (or rather failing) markets. If markets continue to slide, then it shows stimuluses and quantitative easings have not worked. Yet if it holds, then it will be "needed" so as "to keep the recovery on track".
Gold sold off like I thought it would, even though it went way higher than II thought. Silver has been at the least a safe haven amidst the turmoil. Oil has traded with equities.
One reason I think prices of these goods will continue to rise is that they, oil and gold, have peaked production. I think the market follows these goods, and this while fiat fails as a store of wealth. That is why in the end I think that the rise of precious metals and oil is in the bag, while fiat fails. And while fiat fails equities become more expensive. Could the Dow trade even with gold? Yes, and it will. But at what price. Does it matter? Dow 11k, gold $11k, once again, does it matter?
And this will likely be the end result. Gold will equal the Dow again like it had until the early '80s. Oil will rise, but higher gold prices could stem the gains. Yet silver trades 1:1 with oil, and if gold goes higher so will silver, because both define money. This is why I see not only higher gold, and silver, but also oil, for the trend together. Oh, and never forget platinum. She is there with them, too.
Friday, August 12, 2011
All Tied Up
The markets have been tied together since the Fall of '08, and maybe even just before then. If gold goes up, equities go up. When oil goes down, equities go down. The dollar is at an inverse relationship to equities and oil, and sometimes the dollar- gold leads the strongest of the fiat currencie, whichever that may be at any one time. Silver trades with this relationship too. All of the markets are tied together, and they will fall and rise the same.
If there is going to be an announced depression then oil and equities could drop. It would take a change in monetary policy though, because otherwise the dollar is set to fail. Gold will win no matter the case, as was seen last week: even when equities are weak, gold will rise.
The dollar has not followed gold lately though, even with all the market turmoil. The market has not ran to the dollar as a safe haven, and has now shunned Treasuries. Hyperinflation of the dollar is looking more and more likely by the day, and with it, all real assets.
Stage Three of the Steady Inflation scenario is only waiting on one more stimulus, or quantitative easing, whichever it may be. Once the system is juiced again, there really is nothing stopping the wheels from falling off. Confidence is low so people know the game is over. The money knows gold for what it is- a store of wealth. The dominoes have been falling for a long time, and the script is nearly at its climax.
Throw in peak resources and the timeline is becoming. Oil, gold, and platinum have peaked production. Once silver does, it is lights out on the fiat ponzi. That could be a few years out, but the trading channels remain the same. Resources up in price, fiat currencie down.
If there is going to be an announced depression then oil and equities could drop. It would take a change in monetary policy though, because otherwise the dollar is set to fail. Gold will win no matter the case, as was seen last week: even when equities are weak, gold will rise.
The dollar has not followed gold lately though, even with all the market turmoil. The market has not ran to the dollar as a safe haven, and has now shunned Treasuries. Hyperinflation of the dollar is looking more and more likely by the day, and with it, all real assets.
Stage Three of the Steady Inflation scenario is only waiting on one more stimulus, or quantitative easing, whichever it may be. Once the system is juiced again, there really is nothing stopping the wheels from falling off. Confidence is low so people know the game is over. The money knows gold for what it is- a store of wealth. The dominoes have been falling for a long time, and the script is nearly at its climax.
Throw in peak resources and the timeline is becoming. Oil, gold, and platinum have peaked production. Once silver does, it is lights out on the fiat ponzi. That could be a few years out, but the trading channels remain the same. Resources up in price, fiat currencie down.
Wednesday, August 10, 2011
Monetizing the Debt
Who knew that monetizing the debt was so important to the system? It was important to the Private Dealers because they needed the cash that they received when the bond's were flipped to the Fed. It was important to the Fed because it kept their income stream alive. It was the only thing propping the system, so why have they not continued it?
I think that, more than anything, it was a psychological experiment. I think they want to make people emotionally attached and thus "dependent" on their investments. It has made people crazy, from Israel, to London, to America, and people are going insane. Of course, there is no real action to the people's motive; they steal useless items and get in fights, instead of marching against the system. This is what the oilgarchs and financiers wanted when they dropped the bottom out of the markets.
Need I say anything about gold? The sky is the limit, but if QE 3 is trotted out, the first move will be to drop the price of gold. It will be done two ways: First the Fed will loan gold out, this will happen during Asian trading. Then after QE 3 is announced, the President's Working Group on Financial Markets will short gold, and maybe even buy puts. Yes, they have a margin account. Anything you can do they can do, and with unlimited liquidity.
This is the reason I think it is a psychological experiment: the PPT aka Plunge Protection Team (President's Working Group) is mandated to stop these type of routes, yet they are no where to be found. The G-7 is also staying out, after they said they were coming in, same with Europe and same with China and Russia. Either they all lied together, or they will conduct policy coordinatedly, but only after the world burns.
This is the most facsist thing I have ever witnissed; and while it happens CEOs like Jaime Dimon smile. There is a plan, no matter what it is, and it matters naught if we know it, for we know the one thing that matters: precious metal is a store of wealth, and thus, monie.
I think that, more than anything, it was a psychological experiment. I think they want to make people emotionally attached and thus "dependent" on their investments. It has made people crazy, from Israel, to London, to America, and people are going insane. Of course, there is no real action to the people's motive; they steal useless items and get in fights, instead of marching against the system. This is what the oilgarchs and financiers wanted when they dropped the bottom out of the markets.
Need I say anything about gold? The sky is the limit, but if QE 3 is trotted out, the first move will be to drop the price of gold. It will be done two ways: First the Fed will loan gold out, this will happen during Asian trading. Then after QE 3 is announced, the President's Working Group on Financial Markets will short gold, and maybe even buy puts. Yes, they have a margin account. Anything you can do they can do, and with unlimited liquidity.
This is the reason I think it is a psychological experiment: the PPT aka Plunge Protection Team (President's Working Group) is mandated to stop these type of routes, yet they are no where to be found. The G-7 is also staying out, after they said they were coming in, same with Europe and same with China and Russia. Either they all lied together, or they will conduct policy coordinatedly, but only after the world burns.
This is the most facsist thing I have ever witnissed; and while it happens CEOs like Jaime Dimon smile. There is a plan, no matter what it is, and it matters naught if we know it, for we know the one thing that matters: precious metal is a store of wealth, and thus, monie.
Monday, August 8, 2011
The Greatest War
We are in the midst of a great war, one that may end up rivalling alll the other great wars. So far, this one has been fought economically.As of now, the US oilgarchs think it is in their best intrest to sacrifice their banking housees to lower the price of oil. They are doing so to have oil cheap while they plan an actual war, because once the real war starts, oil will be extremely expensive.
This is also China calling the US' bluff. They love deflation. Inflation is running rampant in certain sectors of their economy and it does not bode well with them.. They would much rather have inflation, because they can feed their hungry populace easier, and continue to use dollars and euros to buy gold and stuff.
This bodes worst for liberals, for they look insane saying we need more stimulus. I think this fits in with republicans who are running for office, even though they won't be able to solve these problems, lest the name Paul, and really, even Paul is up a creek without a paddle. I hope everyone learns to swim.
This is also China calling the US' bluff. They love deflation. Inflation is running rampant in certain sectors of their economy and it does not bode well with them.. They would much rather have inflation, because they can feed their hungry populace easier, and continue to use dollars and euros to buy gold and stuff.
This bodes worst for liberals, for they look insane saying we need more stimulus. I think this fits in with republicans who are running for office, even though they won't be able to solve these problems, lest the name Paul, and really, even Paul is up a creek without a paddle. I hope everyone learns to swim.
QE 3 is Certain
I looked at some charts and I figured looking back I nailed the Dow pullback to 11,800. The next thousand blindsided me. Luckily I have no stake what so ever in the markets right now. I might get into Sprott Trust positions if I did not like the metal in my hands so much. But I think at this point that would be the only stock I could recommend.
Buying right now is like catching falling daggers. It is either bravely done, or plain stupid. Soon Bernanke will step in and issue his mandate: a continuation to "keep the recovery on track". I am surprised he did not just let it roll, and have a few blow hards mad at him. Now people should know it does not work.
But rather it appears that Americans will cry for more QE like a baby for a binky. They know not why they want it, but they think they need it. Little do they know it is what will keep them naive. They should grow up, and throw their passafire down the toilet.
Yet people only learn from their mistakes in this day and age, if even then. The financial system will need to end for anyone to realize they are living a pipe dream. That day is fast approaching, but Chair Bernanke will keep the show going with one more round. Three is the Majik number, after all.
Buying right now is like catching falling daggers. It is either bravely done, or plain stupid. Soon Bernanke will step in and issue his mandate: a continuation to "keep the recovery on track". I am surprised he did not just let it roll, and have a few blow hards mad at him. Now people should know it does not work.
But rather it appears that Americans will cry for more QE like a baby for a binky. They know not why they want it, but they think they need it. Little do they know it is what will keep them naive. They should grow up, and throw their passafire down the toilet.
Yet people only learn from their mistakes in this day and age, if even then. The financial system will need to end for anyone to realize they are living a pipe dream. That day is fast approaching, but Chair Bernanke will keep the show going with one more round. Three is the Majik number, after all.
Sunday, August 7, 2011
The Two Scenarios
One scenario is absolute deflation where the Dow goes to 2k and meets gold there. I do not mention that scenario too often because it is unlikely due to Keynsian economic policy. More than likely, the Central Bankers of the world will issue hundreds of trillions of dollars to keep the ponzi going. That is why the likely end game is hyperinflation of the currencie.
Word is out that the G-7 will step in where Bernanke left off. Does this mean Bernanke will not need to mention QE 3? Can he back door the program through the global banking cartel? He may still do it, as placating the masses that his plan will work may be in their best interest short term. The wool is still over the eyes of many, especially the Greatest Generation and Boomers. These two generations are like dogs on a track; they think they are dependant on a system in which they think they have been part of building. When one not only thinks one has something at stake, but that one's ego is on the line, one will do almost anything to maintain the status quo. This is why society is spinning its wheels.
This is why the looming disaster is more than a financial one; the world has its ego at stake. Yet the ego only resides outside of self: it is a creation of whits. Most important to the scenario is that the ego is let go, for it will hold society back from a nirvana that has been at hand since the beginning.
Because the G-7 is stepping in, they will try to spur growth by loaning gold out. It is the only system of leverage they have, as printing fiat is only like throwing paper in a fire to put the flames out. This will add supply (albeit it in paper), and quell demand (if only for a minute). I think gold will pull back similar to how silver did last spring and how oil did recently.
After gold pulls back, there will be no turning back. The gig will be up as the globe prints to infinity. Once the Central Bankers make their move, the third and final stage of hyperinflation will set in soon after. I think it will be apparent by the next winter solstice that something is askew.
Word is out that the G-7 will step in where Bernanke left off. Does this mean Bernanke will not need to mention QE 3? Can he back door the program through the global banking cartel? He may still do it, as placating the masses that his plan will work may be in their best interest short term. The wool is still over the eyes of many, especially the Greatest Generation and Boomers. These two generations are like dogs on a track; they think they are dependant on a system in which they think they have been part of building. When one not only thinks one has something at stake, but that one's ego is on the line, one will do almost anything to maintain the status quo. This is why society is spinning its wheels.
This is why the looming disaster is more than a financial one; the world has its ego at stake. Yet the ego only resides outside of self: it is a creation of whits. Most important to the scenario is that the ego is let go, for it will hold society back from a nirvana that has been at hand since the beginning.
Because the G-7 is stepping in, they will try to spur growth by loaning gold out. It is the only system of leverage they have, as printing fiat is only like throwing paper in a fire to put the flames out. This will add supply (albeit it in paper), and quell demand (if only for a minute). I think gold will pull back similar to how silver did last spring and how oil did recently.
After gold pulls back, there will be no turning back. The gig will be up as the globe prints to infinity. Once the Central Bankers make their move, the third and final stage of hyperinflation will set in soon after. I think it will be apparent by the next winter solstice that something is askew.
Friday, August 5, 2011
The Greatest Depression
The Greatest Depression is now staring the world in the face. Gone are monetary policy, fiscal policy, and all other quick fixes. It has been proven that they do not work, and here lays the waste of the economy.
The world's power hungry politicians will continue their maniacal ways, but only to have the system collapse on top of them. The Central Banks will continue to run monetary policy into the ground, and governments will do the same fiscally. Yet the world watches passively. The discourse has ended.
The capitulation of the system has wrecked havoc on growth and wealth. People are mired in a calamity of finance. The finance was based on the lies of economics. Now everything is in ruins.
The collapse has occurred in slow motion over the course of the last few decades. It has reached an apex. The world has changed, and the people will change with it.
The world's power hungry politicians will continue their maniacal ways, but only to have the system collapse on top of them. The Central Banks will continue to run monetary policy into the ground, and governments will do the same fiscally. Yet the world watches passively. The discourse has ended.
The capitulation of the system has wrecked havoc on growth and wealth. People are mired in a calamity of finance. The finance was based on the lies of economics. Now everything is in ruins.
The collapse has occurred in slow motion over the course of the last few decades. It has reached an apex. The world has changed, and the people will change with it.
Wednesday, August 3, 2011
Jobs Program
It could be as early as this week, but before Bernanke utters the words 'continued easing', there will be a proposal put forth by President Obama to have a quote, 'Jobs Program'. It will outline how we are going to build roads one last time before oil peaks, how we will make plantations of solar energy, and other somewhat dubious industrial feats. The reason that I say dubious is not because some bridges are in disrepair, or that our State will need to ween itself from oil (how I am not sure), but because it will once again be a corporate bailout, by the government. It will once again be a fascist decree.
I have been proposing that Obama would do a hands on 'Jobs Program' since the Spring of '10, but to my dismay, America has accepted crumbs and asked for nothing. Yet now Americans are truly in need of funds, and unless Bernanke really does drop cash from helicopters, then this will be how dollars are put into the mouths of the babes. I imagine it will be very inustrialish, probably creating jobs that will build things. They will be contracts to corporations, and the corporations will hire. New power plants, prisons, bridges, etc. I do not know how it will go, but it will.
The front will be for jobs, but it will be so that banks can make new performing loans. The crux of the problem is the banks, and the fascist system wants to fix that. This will be what will 'save the system', or so they say. More than likely, this will be how America ends its status as global empire; spending its way into oblivion.
I have been proposing that Obama would do a hands on 'Jobs Program' since the Spring of '10, but to my dismay, America has accepted crumbs and asked for nothing. Yet now Americans are truly in need of funds, and unless Bernanke really does drop cash from helicopters, then this will be how dollars are put into the mouths of the babes. I imagine it will be very inustrialish, probably creating jobs that will build things. They will be contracts to corporations, and the corporations will hire. New power plants, prisons, bridges, etc. I do not know how it will go, but it will.
The front will be for jobs, but it will be so that banks can make new performing loans. The crux of the problem is the banks, and the fascist system wants to fix that. This will be what will 'save the system', or so they say. More than likely, this will be how America ends its status as global empire; spending its way into oblivion.
Monday, August 1, 2011
Walled Street Vs. the World
First, the Dow hit 12k on the head. Now we will see it consolidate for the next few days, before moving back to the top of its range. Gold looks bullish, silver bounced off of support, and platinum is catching up to her sisters two. The dollar had a dead "dollar" bounce today, if it fails to rally from here, which I expect it too. I gave it the benefit of the doubt a few weeks ago, for one last rally, and it failed to move. The dollar is going lower from here on out.
Everything is in line for QE 3, especially with all of the horrid economic news coming out. Oh, and it looks like the Muni bond massacre has begun, with a Rhode Island town declaring bankruptcy.
You would think Congress would have listened to America when the people voiced their opposition to the bailouts of '08, but you would have thought that the people would have stayed strong and marched on DC as well. Walled Street does have the world by the ears, but they have empty threats. Congress thinks it is at the whim of the oilgarchs, but it is the people of the world that have the strength. If the people ever turn on the system, it will end quick.
The people, unfortunately, are complacent, and pretend not to know what is happening to finance, although in the back of their minds they know all to well. Soon the world of finance will spin so that the lower and middle classes become one, and they will be left with little to no power considering what they once had. It will be a sad day, but one in which people will wake up. At that point it will take a concerted effort to change things. The fate of humanity is in its own hands.
Everything is in line for QE 3, especially with all of the horrid economic news coming out. Oh, and it looks like the Muni bond massacre has begun, with a Rhode Island town declaring bankruptcy.
You would think Congress would have listened to America when the people voiced their opposition to the bailouts of '08, but you would have thought that the people would have stayed strong and marched on DC as well. Walled Street does have the world by the ears, but they have empty threats. Congress thinks it is at the whim of the oilgarchs, but it is the people of the world that have the strength. If the people ever turn on the system, it will end quick.
The people, unfortunately, are complacent, and pretend not to know what is happening to finance, although in the back of their minds they know all to well. Soon the world of finance will spin so that the lower and middle classes become one, and they will be left with little to no power considering what they once had. It will be a sad day, but one in which people will wake up. At that point it will take a concerted effort to change things. The fate of humanity is in its own hands.
Sunday, July 31, 2011
Debt Deal Done
Apparently this time the deal is sealed. $1 trillion of cuts to the people that need the money most, while Wall Street can continue to pimp DC into perpetuating the fiat ponzi. The first reaction was a sell off in gold and silver and a rise in the dollar. I think that tomorrow will see precious metals pull back a little further, and the dollar will consolidate. I think a brief rally for equities is in store, but only to the top of this recent range (Dow 12,800). Then it will be time for QE 3, and then into the final stage of this prolonged inflationary depression.
The first thing the Major Banking Houses will do now that they have their credit reestablished is short metals. It is a good shorting opportunity with them being at these prices during summer, and they want to bring the prices back down for political reasons. Because GDP was so horrible, Bernanke will issue QE 3. For anyone who thinks Bernanke needs equity prices to come down to issue QE 3, think again. He can use any talking point he wants, and the paltry GDP number is a good one.
Once Bernanke makes his announcement equity will fly through Dow 13k like a bat out of hell. He needs to keep prices on T-bills/notes/bonds high to fund his ponzi, and a rise in interest rates would also do his cartel in. He needs QE 3.
After precious metals test support tomorrow and the days following we will see exactly what is in store for August. This test is the important one. If PMs test and bounce, look for them to break out. If they fall through support, we are going to an old range. Silver's support is between $38.50 and $39. Gold's is $1585. Key trigger points there. Platinum broke out after the raise was announce which makes me think the breakout is at hand, but wait for support. Third times a charm.
The first thing the Major Banking Houses will do now that they have their credit reestablished is short metals. It is a good shorting opportunity with them being at these prices during summer, and they want to bring the prices back down for political reasons. Because GDP was so horrible, Bernanke will issue QE 3. For anyone who thinks Bernanke needs equity prices to come down to issue QE 3, think again. He can use any talking point he wants, and the paltry GDP number is a good one.
Once Bernanke makes his announcement equity will fly through Dow 13k like a bat out of hell. He needs to keep prices on T-bills/notes/bonds high to fund his ponzi, and a rise in interest rates would also do his cartel in. He needs QE 3.
After precious metals test support tomorrow and the days following we will see exactly what is in store for August. This test is the important one. If PMs test and bounce, look for them to break out. If they fall through support, we are going to an old range. Silver's support is between $38.50 and $39. Gold's is $1585. Key trigger points there. Platinum broke out after the raise was announce which makes me think the breakout is at hand, but wait for support. Third times a charm.
Friday, July 29, 2011
Soon, Debt Default
Dow pull back to 12k. Check. Oil pullback to $94. Check. Precious metal testing support? Almost. Maybe close enough, but I am still not sure if the breakout will happen right now.
Debt debate continues, politicians look like clowns, and Obama waits ready to pull the ultimmate fascist move: invoke a raise in the debt ceiling. Interestingly the Democrats are scared of what? Helping the poor? Since when hes this system helped the poor! Dems are scared of corporate equity tanking? Why? Because the economy revolves around the well being of corporations. Now we see where their alegience is: with the corporations, and against the American people.
Before I finish this post, I want to make a comment. Lindsey Williams said on the Alex Jones Show there would be a default. I don't always think he knows what he is talking about, but he usually knows what will happen with geo-politics.
From a post I made on another site:
And Mel Watt just screamed his head off about lord knows what. And now Fwank is on the mic, looking like he just swallowed his tongue. Name calling, name calling, name calling. And Shiela Jackson Lee urges the President to invoke a debt raise on his own, which is insane. She is insane. Repubs look just as stupid. They have not brought up one real issue on why the debt is a problem. The problem is this country has handed over all their wealth to an group of corporate banks. There is no accountability from either side. Both ignore the problem: Monetary and fiscal policy is a sham.
It is run by a private banking cartel known as the Federal Reserve System. The "Fed" and its cartel of globalist banking housees seem to be in the clear, while politicians nit pick about the crumbs that are left out of the people of the Unidted States of America's pocket.
One big circus, I tell you. One big circus.
Oh, and the US government will default. Yes they will. And then the BIS, IMF, and World Bank will swoop in and treat the situation like they do with failed 3rd world states. They will use as collateral the gold on the Fed's books, the debt/GDP of the US, and the other credits and obligations of the Treasurie and Reserve Bank. Good luck America, for we hardly knew thee.
Debt debate continues, politicians look like clowns, and Obama waits ready to pull the ultimmate fascist move: invoke a raise in the debt ceiling. Interestingly the Democrats are scared of what? Helping the poor? Since when hes this system helped the poor! Dems are scared of corporate equity tanking? Why? Because the economy revolves around the well being of corporations. Now we see where their alegience is: with the corporations, and against the American people.
Before I finish this post, I want to make a comment. Lindsey Williams said on the Alex Jones Show there would be a default. I don't always think he knows what he is talking about, but he usually knows what will happen with geo-politics.
From a post I made on another site:
And Mel Watt just screamed his head off about lord knows what. And now Fwank is on the mic, looking like he just swallowed his tongue. Name calling, name calling, name calling. And Shiela Jackson Lee urges the President to invoke a debt raise on his own, which is insane. She is insane. Repubs look just as stupid. They have not brought up one real issue on why the debt is a problem. The problem is this country has handed over all their wealth to an group of corporate banks. There is no accountability from either side. Both ignore the problem: Monetary and fiscal policy is a sham.
It is run by a private banking cartel known as the Federal Reserve System. The "Fed" and its cartel of globalist banking housees seem to be in the clear, while politicians nit pick about the crumbs that are left out of the people of the Unidted States of America's pocket.
One big circus, I tell you. One big circus.
Oh, and the US government will default. Yes they will. And then the BIS, IMF, and World Bank will swoop in and treat the situation like they do with failed 3rd world states. They will use as collateral the gold on the Fed's books, the debt/GDP of the US, and the other credits and obligations of the Treasurie and Reserve Bank. Good luck America, for we hardly knew thee.
Thursday, July 28, 2011
Soon, the Future
Soon, all debt will be collateralized by the Bank of International Settlements. Soon they will back a one world currencie put forth by the World Bank and IMF. Soon all debt will be collateralized. This is how it will break down.
Gold will be collateralized. All government debt as bonds held will be rated and collateralized. All fiat currencie deposits by Central Banks will be rated and collateralized.
GDP/debt will be put into play upon its "fair" analyzing.
It is simple really, the world will be audited, and judged accordingly, and then each country will be given specific rates on their loans. It will be similar to how the IMF rolls in on a 3rd world nation and asks them to repay their loans with collateral of such and such. This time it will be the world at once. This has been the plan all along. A one world take over.
Gold will be collateralized. All government debt as bonds held will be rated and collateralized. All fiat currencie deposits by Central Banks will be rated and collateralized.
GDP/debt will be put into play upon its "fair" analyzing.
It is simple really, the world will be audited, and judged accordingly, and then each country will be given specific rates on their loans. It will be similar to how the IMF rolls in on a 3rd world nation and asks them to repay their loans with collateral of such and such. This time it will be the world at once. This has been the plan all along. A one world take over.
Wednesday, July 27, 2011
It's Getting Close
The pullback in the Dow is almost done. I have been looking for a pullback to Dow 12k, and the big drop today brought it close. I thought this weekend there might be a flash crash this week, and many stocks have lost their shorts, and big stocks too. 3M lost big, Netflix too. When large cap equities lose as much as they have recently, you have to wonder what is happening. It is part of the deflation equation that I have gone over previously, and it is also large investors moving their chips around the table.
Money has been steadily moving into precious metals over the last month or so. We have reached an important reflection point. A while ago I called the bottom in silver at $41. I did so because $41 was a point where the price of silver started to goo parabolic. It is also an important psychological price. Moving over $40 shows that silver has more than industrial worth.
Money has been steadily moving into precious metals over the last month or so. We have reached an important reflection point. A while ago I called the bottom in silver at $41. I did so because $41 was a point where the price of silver started to goo parabolic. It is also an important psychological price. Moving over $40 shows that silver has more than industrial worth.
Monday, July 25, 2011
Weak Dollar
Last week came and went without a rally in the dollar, and now the dollar is trading below DXY 74. I was going to write this article a few hours ago, and I would have looked brilliant, but I will still say what I thought even if it is expo-facto.
The dollar chart looks very weak. Take it from a dollar bear who had given the dollar as much short term benefit as I could. Will it collapse now? I do not know, but the way it is trending I would not want to be long the dollar. What is a better fiat? The Swiss Franc? The Yen? Who knows, and better yet, who cares. Go with gold, silver and platinum. They are currencie and better yet, they are monie.
With the death of the dollar at hand, and it has been a long time coming, look for precious metals to take the slack. Other fiat is just as fake as the dollar, and short term, they may benefit, but long term, cash will turn to gold.
I was wondering if Obama and Bernanke ever consider trying to learn about gold. Do they ever go to sleep at night wondering, 'Why is gold still going up?' They may already know, too, and they may be feinting ignorance. If that is the case, we have to wonder, would either one ever try to save his career be saying, 'This morning while tying my shoes I figured out gold is the ultimate store of wealth!' It would be interesting if they did, for at this point it is the only thing that could save their careers.
Of course, they are puppets, and only do the bidding of their masters, and their masters do not care about a single man's legacy. They have the broader scope of history to watch. Most likely, gold will continue its steady parabolic climb, while fiat turns to ashe. Dust to dust it burns, and in the end, the furnace will only have gold.
The dollar chart looks very weak. Take it from a dollar bear who had given the dollar as much short term benefit as I could. Will it collapse now? I do not know, but the way it is trending I would not want to be long the dollar. What is a better fiat? The Swiss Franc? The Yen? Who knows, and better yet, who cares. Go with gold, silver and platinum. They are currencie and better yet, they are monie.
With the death of the dollar at hand, and it has been a long time coming, look for precious metals to take the slack. Other fiat is just as fake as the dollar, and short term, they may benefit, but long term, cash will turn to gold.
I was wondering if Obama and Bernanke ever consider trying to learn about gold. Do they ever go to sleep at night wondering, 'Why is gold still going up?' They may already know, too, and they may be feinting ignorance. If that is the case, we have to wonder, would either one ever try to save his career be saying, 'This morning while tying my shoes I figured out gold is the ultimate store of wealth!' It would be interesting if they did, for at this point it is the only thing that could save their careers.
Of course, they are puppets, and only do the bidding of their masters, and their masters do not care about a single man's legacy. They have the broader scope of history to watch. Most likely, gold will continue its steady parabolic climb, while fiat turns to ashe. Dust to dust it burns, and in the end, the furnace will only have gold.
Bread and Circus
Every politician wants to stamp a debt deal as theirs. There is nothing new about this bureaucracy. Politicians are attention hogs, and nothing more. It looks like Obama will stamp Reid's plan.
Any plan is a show for no one. No plan solves the crisis. The crisis is that the current fiat standard is not sound. There really is no other problem; all problems stem from this one problem. The only solution, and it will solve it eventually, is to have gold back debt like it did in the past.
Because of this, precious metals have risen steadily since the problems hit the apex point that is peak resource. Now the problem is at the crux of world issues. Debt needs to be backed by gold to pay for the resources. This is a fact.
Short term, I still want precious metals to test their support and then move up to where they are now. I want to confirm the new level. This is a conservative view, but being conservative in the short term is the best way to trade for someone long PMs. Long term, the metals will continue to rise and rise.
Any plan is a show for no one. No plan solves the crisis. The crisis is that the current fiat standard is not sound. There really is no other problem; all problems stem from this one problem. The only solution, and it will solve it eventually, is to have gold back debt like it did in the past.
Because of this, precious metals have risen steadily since the problems hit the apex point that is peak resource. Now the problem is at the crux of world issues. Debt needs to be backed by gold to pay for the resources. This is a fact.
Short term, I still want precious metals to test their support and then move up to where they are now. I want to confirm the new level. This is a conservative view, but being conservative in the short term is the best way to trade for someone long PMs. Long term, the metals will continue to rise and rise.
Sunday, July 24, 2011
That's All, Folks!
Well, the bread and circuses have come and gone, with Congress aproving an austerity measure fit for the King's plebs. No revenue increases, just budget cuts. What do I think, personaly? I don't care, it is all a game. One big game.
This is the most bullish case for US equities there is. Surprised? Me neither. No new taxes means the uber-rich will still have as much as they want, and all the austerity will do is break Grandma's bank, and she was not going to invest in anything but CDs anyway. This also means Giethner will not have to put as much money back into the public pension fund and the Social Security Trust, where he robbed those banks. This is the best case scenario for the mega wealthy, and now all Obama has to do is sign it.
You would think he wouldn't, but if he does not, he is risking the markets, and all Obama has done is improve the (appearance of the) market. He will sign this package, and then he will golf.
I assume a selloff to start the week, probably to my call of Dow 12k, and then a steady rise. I think the pullback will come in the form of a flash crash, but probably not with the magnitude of the May 6th one. Look for Moday or Tuesday to have a 200 point drop with a similar amount of correction. DC has averted hyperinflation's Stage Three for now, and it will be steady rampant inflation for a while longer.
Precious metals were due to test support anyway, and they will do so next week. This is a big week for PMs because if they bounce off of support, their prices are going higher, but if they fall through, then support moves down one range.
This is the most bullish case for US equities there is. Surprised? Me neither. No new taxes means the uber-rich will still have as much as they want, and all the austerity will do is break Grandma's bank, and she was not going to invest in anything but CDs anyway. This also means Giethner will not have to put as much money back into the public pension fund and the Social Security Trust, where he robbed those banks. This is the best case scenario for the mega wealthy, and now all Obama has to do is sign it.
You would think he wouldn't, but if he does not, he is risking the markets, and all Obama has done is improve the (appearance of the) market. He will sign this package, and then he will golf.
I assume a selloff to start the week, probably to my call of Dow 12k, and then a steady rise. I think the pullback will come in the form of a flash crash, but probably not with the magnitude of the May 6th one. Look for Moday or Tuesday to have a 200 point drop with a similar amount of correction. DC has averted hyperinflation's Stage Three for now, and it will be steady rampant inflation for a while longer.
Precious metals were due to test support anyway, and they will do so next week. This is a big week for PMs because if they bounce off of support, their prices are going higher, but if they fall through, then support moves down one range.
Thursday, July 21, 2011
The Big Day
Tomorrow is the big day. Tyler Durden says it is the last day that the US government has to settle the debt ceiling. I am not sure why, maybe I missed that article, so if anyone knows, do tell. But Tyler knows best. Tomorrow is the big day!
I do think it is appropriate that the EU settled the day before the US' big day. They got ahead of the debt curve, and Nash would be proud (or understanding at least). The EU may have made a grave mistake, but this is a race to the bottom.
China is likely to be happy about all of this, as raising debt continues the fiat ponzi a little longer. How much longer, well, not too much. Likely what will happen is that the excess liquidity will be used to throw precious metals in the fire, but, of course, in the end, they will come out unscathed. There will be a lull in price for the rest of summer due to this technique. The dollar will stay in its current range of DXY 76, because every country is now printing ferociously. The fiat ponzi is in full force, but in equilibrium.
The rush will come next Fall, when all the problems have been solved. It will be seen as the great recovery, as fiat becomes worthless but corporate equity goes to the moon. After all, all anybody watches are stocks; no one knows what the DXY is, or the comparable equivalents. EUR/USD will stay in a range like to falling rocks, and since the people are falling with it with their heads focused on the money instead of the world around them, they will not figure they are falling. This is the alchemists trick.
So for a few dollars more, the end game will be put into play, and the corporations will inherit the economic landscape. China will become the US (or vice versa) and the world will become flat, once and for all.
I do think it is appropriate that the EU settled the day before the US' big day. They got ahead of the debt curve, and Nash would be proud (or understanding at least). The EU may have made a grave mistake, but this is a race to the bottom.
China is likely to be happy about all of this, as raising debt continues the fiat ponzi a little longer. How much longer, well, not too much. Likely what will happen is that the excess liquidity will be used to throw precious metals in the fire, but, of course, in the end, they will come out unscathed. There will be a lull in price for the rest of summer due to this technique. The dollar will stay in its current range of DXY 76, because every country is now printing ferociously. The fiat ponzi is in full force, but in equilibrium.
The rush will come next Fall, when all the problems have been solved. It will be seen as the great recovery, as fiat becomes worthless but corporate equity goes to the moon. After all, all anybody watches are stocks; no one knows what the DXY is, or the comparable equivalents. EUR/USD will stay in a range like to falling rocks, and since the people are falling with it with their heads focused on the money instead of the world around them, they will not figure they are falling. This is the alchemists trick.
So for a few dollars more, the end game will be put into play, and the corporations will inherit the economic landscape. China will become the US (or vice versa) and the world will become flat, once and for all.
Debt Support Tested
The support has been tested in the time of debt talks. This is the second time it has tested support, $39 silver and $1585 gold. If it falls through support, we are looking at the old support levels you know so well: $37 for silver, $1550 for gold. If support holds I will wait to see it tested once more before calling the new range.
The debt talks seem to have been made whole. The left and right wings of the evil US bird are flapping as one, just like the mouths of Boener and Obama. Soon consensus will be reached for the debt ceiling to be raised.
This will give Geithner and Bernanke green lights to usher in their spending programs, which will mean more liquidity, and higher prices. I think that the first move for the President's Working Group on Financial Markets will be to suppress the price of oil, gold and silver, but that is a "problem" that can only be papered over. Soon, after QE 3, at the start of the Fall, prices will again surge.
The debt talks seem to have been made whole. The left and right wings of the evil US bird are flapping as one, just like the mouths of Boener and Obama. Soon consensus will be reached for the debt ceiling to be raised.
This will give Geithner and Bernanke green lights to usher in their spending programs, which will mean more liquidity, and higher prices. I think that the first move for the President's Working Group on Financial Markets will be to suppress the price of oil, gold and silver, but that is a "problem" that can only be papered over. Soon, after QE 3, at the start of the Fall, prices will again surge.
Wednesday, July 20, 2011
Interesting Gold Move
Gold just made a surprising move up. It gapped up and capped yesterday's losses. This is a first confirmation that it has found a new range. Now we wait to see if it tests $1585 twice more. If it tests that number twice and does not fall to its old support range, it may have found support here. This would be great news, because then we would see a move higher sooner than I thought.
Silver too has made a strong move. It sold off last night at Sydney's close, but has ramped up towards the middle of its three day range. I want to see it test $38.50 twice more before I decide that we will not see $37 any time soon though.
Platinum gapped up too, and when the Trinity moves in unison like this, it is indicative of a coming price explosion. I will want platinum to test $1760 twice more.
I may be changing pitch, and that has to do with the way PMs are charting, but it is also because I have not seen support in the dollar. This may have to do with oil's price. Maybe oil's price is now out of the hands of the oilgarchs. War appears to be at hand with Iran. A drone was shot down over their nuclear power plant, and the have opened an oil bourse. There is nothing more bullish for PMs and oil than war, and nothing more bearish for the dollar, because the dollar will be the first weapon used by the "enemy"; it will be dumped accordingly in a show of force.
Silver too has made a strong move. It sold off last night at Sydney's close, but has ramped up towards the middle of its three day range. I want to see it test $38.50 twice more before I decide that we will not see $37 any time soon though.
Platinum gapped up too, and when the Trinity moves in unison like this, it is indicative of a coming price explosion. I will want platinum to test $1760 twice more.
I may be changing pitch, and that has to do with the way PMs are charting, but it is also because I have not seen support in the dollar. This may have to do with oil's price. Maybe oil's price is now out of the hands of the oilgarchs. War appears to be at hand with Iran. A drone was shot down over their nuclear power plant, and the have opened an oil bourse. There is nothing more bullish for PMs and oil than war, and nothing more bearish for the dollar, because the dollar will be the first weapon used by the "enemy"; it will be dumped accordingly in a show of force.
Tuesday, July 19, 2011
Precious Metals Pullback Continued
You didn't buy the top of that range, because you read this blog, but now you are wondering if that was it as far as how much the prices will pullback. Well, if you own no precious metals, there is never a bad time to buy, but stay patient, because there is still a little further to go.
Daily support is in for gold at $1585, and for silver at $39. Platinum didn't pullback much, but then again, it hadn't gained much either. I still think the pullback will continue, maybe not tomorrow or the next day, but within the week, gold should test $1550, and silver will pullback to $37. We will see for platinum, as that is hard to call, but $1720 looks about right. Oil will probably also test its support at $94. I still think the dollar will benefit, but it is running out of time.
Yet all of this is running out of time. The whole fiat ponzi is running out of time. Once the debt ceiling is passed, then QE 3 will be ushered in within the month. Precious metals will remain volatile, but they will gain huge next Fall, if not in late summer.
Daily support is in for gold at $1585, and for silver at $39. Platinum didn't pullback much, but then again, it hadn't gained much either. I still think the pullback will continue, maybe not tomorrow or the next day, but within the week, gold should test $1550, and silver will pullback to $37. We will see for platinum, as that is hard to call, but $1720 looks about right. Oil will probably also test its support at $94. I still think the dollar will benefit, but it is running out of time.
Yet all of this is running out of time. The whole fiat ponzi is running out of time. Once the debt ceiling is passed, then QE 3 will be ushered in within the month. Precious metals will remain volatile, but they will gain huge next Fall, if not in late summer.
Precious Metals Pullback (Updated)
The only thing certain in this market is volatility. Repeat that outloud if you have not figured such into your daily calculations of the market: Everything pulls back. Espercially gold, silver, and platinum.
Support for gold is around $1550. Support for silver was $34-$36, and the run up means that it will test the high end of that range. Oil's support is just under $96, and the move will see the dollar go to almost 77 DXY.
Good luck trading.
Greece may have just defaulted, so there is no telling what will happen. If you are not extra long PMs, you may want to consider that position. I highly recommend it.
Support for gold is around $1550. Support for silver was $34-$36, and the run up means that it will test the high end of that range. Oil's support is just under $96, and the move will see the dollar go to almost 77 DXY.
Good luck trading.
Greece may have just defaulted, so there is no telling what will happen. If you are not extra long PMs, you may want to consider that position. I highly recommend it.
Monday, July 18, 2011
Equity Pullback
Caught flat footed, I can point to equities to show the pullback. The dollar has high volatility, and made gains early in the day, but sold off late, and has not made the gains I thought it would. Oil has stayed in the middle of its range. But when it comes to precious metals, I will note, I have misjudged their current moves! And yes, I am happy I have.
Ever cautious I wonder what this means for future price moves, as the markets follow gold, and not the other way around. Does this spell the demise of the dollar in short? For if gold continues to move higher, surely the dollar will fall! That would mean oil and silver would break out, and platinum would not be left behind. Is this what is about to happen.
I think not yet, but the support levels may have moved up. For now, silver has broken to a new range, so its support has moved up. Gold's breakout continues, and so its support is still in the $1550 area. Platinum is back to the middle of range that has lasted it almost a year, and oil, the dollar, and the euro are in the middle of their ranges, too.
Equities are right in line to where I thought they would go, so I will say to look for Dow 12k to be tested, but as equities have an inverse relationship with the dollar, and if the dollar has its ass handed to it by the Trinity, then equities will again rise. This will happen once the debt ceiling and QE 3 are ushered in, and I have stated that, but maybe the breakout occurs before then. Remember, I did call this the last pullback from the get go for a reason.
Ever cautious I wonder what this means for future price moves, as the markets follow gold, and not the other way around. Does this spell the demise of the dollar in short? For if gold continues to move higher, surely the dollar will fall! That would mean oil and silver would break out, and platinum would not be left behind. Is this what is about to happen.
I think not yet, but the support levels may have moved up. For now, silver has broken to a new range, so its support has moved up. Gold's breakout continues, and so its support is still in the $1550 area. Platinum is back to the middle of range that has lasted it almost a year, and oil, the dollar, and the euro are in the middle of their ranges, too.
Equities are right in line to where I thought they would go, so I will say to look for Dow 12k to be tested, but as equities have an inverse relationship with the dollar, and if the dollar has its ass handed to it by the Trinity, then equities will again rise. This will happen once the debt ceiling and QE 3 are ushered in, and I have stated that, but maybe the breakout occurs before then. Remember, I did call this the last pullback from the get go for a reason.
Silver Breaks Out
The dollar is up slightly, the euro is weak, gold is flat, equities are down, and oil is down. So the trend is almost in line, because then silver broke out. Well, although surprised, I am not too much so. Silver is the most under appreciated asset class, as it is a main industrial component and also defines monie. So silver has broken the trend.
The most interesting thing is that it has done it alone. Their has been no major currencie breakout, gold is flat, and oil is down. And it is interesting that oil is down, because usually silver and oil trade closely together. This leads me to believe either oil is about to see a huge gain, or silver will pullback. Either way, silver has made yet another run at its all time nominal high of $50, and once that number is breached, the sky is the limit.
The most interesting thing is that it has done it alone. Their has been no major currencie breakout, gold is flat, and oil is down. And it is interesting that oil is down, because usually silver and oil trade closely together. This leads me to believe either oil is about to see a huge gain, or silver will pullback. Either way, silver has made yet another run at its all time nominal high of $50, and once that number is breached, the sky is the limit.
Sunday, July 17, 2011
The Dollar's Last Stand
This week, it will be all about the strength in the dollar. The debt talks will keep people wondering how the ceiling will be breached (as it has been already- justified by plundering public pensions, the question is if it will be officially so). This will mean that traders will remain skeptical of their respective investments, and will seek a safe haven. Gold has provided this immensely over the last few weeks, and although it is the safest trade in the long term, I think institutions will look to take some gains. The problem will lie with the euro. Europe is about to enter the house of pain now that Italia is on the chopping block.
Since the dollar will see a gain, it will be first silver and oil that take a hit. Silver will test $35-$36 in a few days, and oil $96. Gold will come down then, too, to its support of $1550, abouts. Equities will see Dow 12k. But this will only last a week or so, as the US will be the one to fall hardest.
Since the dollar will see a gain, it will be first silver and oil that take a hit. Silver will test $35-$36 in a few days, and oil $96. Gold will come down then, too, to its support of $1550, abouts. Equities will see Dow 12k. But this will only last a week or so, as the US will be the one to fall hardest.
Deflation versus Inflation
One of the best debates for the last few years has been the inflation versus deflation debate. It seems people can only take one side of the discussion, and the context of the two are simplified. But what has happened is there has been massive inflation and massive deflation, culminating to a point where nothing is relevant. I have called this point hyperinflation for lack of a better term, and I have also called it blobflation although that term is obtuse. Really, the best way to understand it, is that there has been so much deflation and inflation over the last few years that the system will break because of it.
Murdoch's scandal shows how deflation can still tear a hole in the wall of the system, which allows inflation to seep in and soak it up. Murdoch 's failure has allowed tens of billions of dollars to vanish into thin air, making room for Bernanke's fresh printed dollars. The game ends when there is no more deflation, so the best way to know when the game ends is to know when the deflation has been used up.
The housing market has supplied ample deflation to the market over the last several years, and it still has some room to provide. Housing prices are going to be cut in half by next summer, and then maybe only then will they bottom. That is why the fiat ponzi should last one more year.
The debt default is another story. I have not considered it deflationary or inflationary. If the ceiling is raised, then that adds inflation, but if not, I do not think the term would be deflation. All that will happen is that no one will buy US bonds for a few years, and money will run to gold etc. This will be seen as hyperinflation, because the system will have broken down.
So when considering the debate, it is best to have a view from afar, and understand that both are present in the system. The fight is to match deflation with a little higher inflation. This is the trick of the banks, and the trick of the fiat ponzi.
Murdoch's scandal shows how deflation can still tear a hole in the wall of the system, which allows inflation to seep in and soak it up. Murdoch 's failure has allowed tens of billions of dollars to vanish into thin air, making room for Bernanke's fresh printed dollars. The game ends when there is no more deflation, so the best way to know when the game ends is to know when the deflation has been used up.
The housing market has supplied ample deflation to the market over the last several years, and it still has some room to provide. Housing prices are going to be cut in half by next summer, and then maybe only then will they bottom. That is why the fiat ponzi should last one more year.
The debt default is another story. I have not considered it deflationary or inflationary. If the ceiling is raised, then that adds inflation, but if not, I do not think the term would be deflation. All that will happen is that no one will buy US bonds for a few years, and money will run to gold etc. This will be seen as hyperinflation, because the system will have broken down.
So when considering the debate, it is best to have a view from afar, and understand that both are present in the system. The fight is to match deflation with a little higher inflation. This is the trick of the banks, and the trick of the fiat ponzi.
Thursday, July 14, 2011
QE, or No QE
Bernanke sank hopes of unlimited free money today, but he did so to confuse those he calls "rational consumers". He says the markets are forward looking, and he wants to create as much instability as possible, this so his proxie banks can loot the economy to bits. The more volatility, the more money for the Algo Machines from Hell to make. His main goal is to loot the world, and leave his Masters holding the purse.
The markets will stay int the range I have outlined. Bonds will rise a little, the Dow will move to around 12k. Gold will test support at $1540. Silver will test $35. Platinum will move down slightly. Oil has gotten a head of the trend, and has dropped to around its support already. It may test $94. The DXY will continue to fluctuate to almost 77. The EUR/USD will test $1.38.
Then, in a few weeks, when the debt ceiling is passed, Bernanke will say, "To keep the recovery on track...." and he will usher QE 3 in the door. It will create massive inflation, but it will give the proxie banks one more chance to carpet bag the world.
The markets will stay int the range I have outlined. Bonds will rise a little, the Dow will move to around 12k. Gold will test support at $1540. Silver will test $35. Platinum will move down slightly. Oil has gotten a head of the trend, and has dropped to around its support already. It may test $94. The DXY will continue to fluctuate to almost 77. The EUR/USD will test $1.38.
Then, in a few weeks, when the debt ceiling is passed, Bernanke will say, "To keep the recovery on track...." and he will usher QE 3 in the door. It will create massive inflation, but it will give the proxie banks one more chance to carpet bag the world.
Wednesday, July 13, 2011
Tradition Walks
As if Bernanke was getting all the publicity, Obama, the drama queen he is, decided to steal the spot light on the day Moodys warns of a US ratings downgrade. What a day! Bernanke started it off claiming once again he has no idea why gold has value, but that it sits in his vaults, the largest in the world, because of "tradition". Then (and I am not sure which happened first) Obama walks out of budget negotiations because some one kept interrupting him. Obama, you are the POTUS...deal with it, man! Washington fought a war for us, and you can not handle being interrupted. Patience is a virtue, and what, Obama needed to touch up his short game?
Bernanke is looking like a doofus, not to mention a hooligan. Since he knows gold is a reserve, an asset, why is it that he knows nothing about its rising value? He lies. He knows very well, as he loans it out. He sets its price.
Moodys is prepared to downgrade US debt, which is like calling "game over". Downgrading the US will be downgrading the dollar, and since all money is marked in dollars, the world will be downgraded. This is one way to exercise some reality into the world, but the right way would be to institute constitutional money.
Bernanke is looking like a doofus, not to mention a hooligan. Since he knows gold is a reserve, an asset, why is it that he knows nothing about its rising value? He lies. He knows very well, as he loans it out. He sets its price.
Moodys is prepared to downgrade US debt, which is like calling "game over". Downgrading the US will be downgrading the dollar, and since all money is marked in dollars, the world will be downgraded. This is one way to exercise some reality into the world, but the right way would be to institute constitutional money.
Bernanke hints at QE 3
Bernanke killed the pullback. He slayed the Dragon. He is a battle tested warrior. Or maybe just a mad man. He hinted that QE 3 would be for the benefit of the world. Cui bono?
He knows nothing other than neo-Keynesian policy, and when one only has one way of thought, he puts himself in a dark, dark hole. He has one plan of action, and that is to create more debt. More debt, I will say, out of nothing. Interesting that he owns the worlds largest gold reserve.
All of that debt will find its way to golf of course, and each brick in his vaults will become more valuable than he can imagine. Maybe this is his plan. Or maybe he is just stupid.
The pullback will continue, as money is repositioned, but the low may only come inbetween 12k-12,200. PMs should come to the middle of their ranges before exploding higher.
He knows nothing other than neo-Keynesian policy, and when one only has one way of thought, he puts himself in a dark, dark hole. He has one plan of action, and that is to create more debt. More debt, I will say, out of nothing. Interesting that he owns the worlds largest gold reserve.
All of that debt will find its way to golf of course, and each brick in his vaults will become more valuable than he can imagine. Maybe this is his plan. Or maybe he is just stupid.
The pullback will continue, as money is repositioned, but the low may only come inbetween 12k-12,200. PMs should come to the middle of their ranges before exploding higher.
Tuesday, July 12, 2011
Major Bank Selling
The Major Banks are liquidating all their positions to stay solvent, and it is not working. Their liabilities are huge. They have more toxic mortgages than they know what to do with, they were blown out shorting silver and gold, and they have little performing assets. This is why their prop desks are selling everything the got. They are trying their hardest to stay solvent, and it is not working.
The best evidence today to show that the Major Banks are liquidating their assets is that even though oil went through the roof, the Oil Majors had no gain. This was because the largest share holders, the Major Banks, sold their shares. Selling performing assets means either the seller thinks there is a correction coming, or that liquidity is needed. The Major Banks are long oil, so much in fact that they were the ones who bough the SPR release. The only explanation for them selling Major Oil equity is that they need liquidity.
Since the Discount Window borrowings had gone berserk it was obvious that the Major Banks were in trouble. Through in the way their equity is trending and nobody will argue. Yet now we see them selling their performing assets: something big is around the corner- the Major Banks are going to fail.
The best evidence today to show that the Major Banks are liquidating their assets is that even though oil went through the roof, the Oil Majors had no gain. This was because the largest share holders, the Major Banks, sold their shares. Selling performing assets means either the seller thinks there is a correction coming, or that liquidity is needed. The Major Banks are long oil, so much in fact that they were the ones who bough the SPR release. The only explanation for them selling Major Oil equity is that they need liquidity.
Since the Discount Window borrowings had gone berserk it was obvious that the Major Banks were in trouble. Through in the way their equity is trending and nobody will argue. Yet now we see them selling their performing assets: something big is around the corner- the Major Banks are going to fail.
Pullback in Line
This pullback will happen over the course of the next few weeks. It should have been realized by the last week of July. Not everyday will be down 100 points like happened the last couple days. The dollar is weak, and although the euro looks weaker, they are both dead ducks. But US equities are heading further south.
The Heng Seng lost 3%. Europe has been down huge lately, some of their banks have seen 10% losses in a day. Italia has joined the news in talks of Euro default. The world is in disarray. Yet America will not escape any of its problems. The dollar almost made it to 77 on the DXY, but failed and is not down from there. Gold keeps trending higher. Oil has made comeback. Platinum is going for a ride. Silver is trending higher after falling a little.
Gold will stay where it is, above $1540 during this next pullback. Silver's support is at $34, maybe just below there. Oil has support at $92. Platinum around $1700.
After this pullback, there will not be another. If the debt ceiling is raised, the third leg of hyperinflation will begin, because it will give Bernanke the breathing room to POMO QE 3. If it is not, the pensions that have not been paid will never be, and all public provisions will cease. The dollar will die either way, one the quicker and the other the slower. The Fed prefers the slower because there are still pigs to fry, but either way, the end result is the same.
The Heng Seng lost 3%. Europe has been down huge lately, some of their banks have seen 10% losses in a day. Italia has joined the news in talks of Euro default. The world is in disarray. Yet America will not escape any of its problems. The dollar almost made it to 77 on the DXY, but failed and is not down from there. Gold keeps trending higher. Oil has made comeback. Platinum is going for a ride. Silver is trending higher after falling a little.
Gold will stay where it is, above $1540 during this next pullback. Silver's support is at $34, maybe just below there. Oil has support at $92. Platinum around $1700.
After this pullback, there will not be another. If the debt ceiling is raised, the third leg of hyperinflation will begin, because it will give Bernanke the breathing room to POMO QE 3. If it is not, the pensions that have not been paid will never be, and all public provisions will cease. The dollar will die either way, one the quicker and the other the slower. The Fed prefers the slower because there are still pigs to fry, but either way, the end result is the same.
Monday, July 11, 2011
Calling JPM's Naked Silver Shorts
The COMEX has been looted of its silver during the last few months to little fanfare. Not only has not many people noticed, but the ones that have have not asked who and why this happened. It happened because JPM and other proxie banks were forced to cover their naked short calls, and they had to go out on the market and get the collateral. This because long calls exercised their strikes and wanted payment.
How the price went crashing back down afterwards is hard to know considering that the dollar, with its inverse relationship to silver, only gained marginally, and there has been no let up of demand. Supply is staying tight too, so the only reason can be the fact that oil and silver trade 1:1 and the SPR release, however brief, brought the price down. The dollar showed its weakness, then.
JPM may have lost their shorts, but the longs ended up with collateral. Could this have been a ploy from major buyers who knew when to exercise on JPM? Was JPM willing to be a proxie? More than likely this is true. More than likely, this was an orchestrated plan so a few insiders could walk away with collateral at a cheap price.
How the price went crashing back down afterwards is hard to know considering that the dollar, with its inverse relationship to silver, only gained marginally, and there has been no let up of demand. Supply is staying tight too, so the only reason can be the fact that oil and silver trade 1:1 and the SPR release, however brief, brought the price down. The dollar showed its weakness, then.
JPM may have lost their shorts, but the longs ended up with collateral. Could this have been a ploy from major buyers who knew when to exercise on JPM? Was JPM willing to be a proxie? More than likely this is true. More than likely, this was an orchestrated plan so a few insiders could walk away with collateral at a cheap price.
The Pullback Continues
US equities will wash them selves again while finance spins with volatility. The Dow will test its support of 11,900 and it will give Bernanke the excuse to pull the trigger on more QE. All the while gold will stay at a premium. The dollar will have strength versus the euro, and so it will be the former that follows gold's moves, as it is always the stronger fiat that follows gold. Silver and oil, since they trade inversely the dollar, will find their support levels, but their range will tighten.
QE continues today, for if it did not, the depression would be realized. He will have to leverage his gold reserves further, but this is the cost to his benefits. His benefit will be to monetize more trillions of Treasurie bonds, alleviating his Federal Reserve of the chore of holding worthless assets. He will love to watch equities fall into August.
The debt ceiling will fuel political debate, and will keep the eye off of the real prize: further monetization. The debt debate is inane; it does not matter. Raise it, and inflation will make the dollar absolutely worthless. Do not, and all bonds will escape from purchase. It is a lose lose situation.
The only solution is to reconstitute real monie, and if America does not do it, another entity will do it for them. Lagarde in all her fury is already arm twisting, and given the chance, she will play cop and say, 'I told you so.' The IMF would love to have the responsibility of the reserve currencie, and if their SDR is thought to be backed by gold, the dollar will have to be the same. Yet this will be on globalist terms, and America will have little choice to lay down their wealth in the hands of global bankers formally.
QE continues today, for if it did not, the depression would be realized. He will have to leverage his gold reserves further, but this is the cost to his benefits. His benefit will be to monetize more trillions of Treasurie bonds, alleviating his Federal Reserve of the chore of holding worthless assets. He will love to watch equities fall into August.
The debt ceiling will fuel political debate, and will keep the eye off of the real prize: further monetization. The debt debate is inane; it does not matter. Raise it, and inflation will make the dollar absolutely worthless. Do not, and all bonds will escape from purchase. It is a lose lose situation.
The only solution is to reconstitute real monie, and if America does not do it, another entity will do it for them. Lagarde in all her fury is already arm twisting, and given the chance, she will play cop and say, 'I told you so.' The IMF would love to have the responsibility of the reserve currencie, and if their SDR is thought to be backed by gold, the dollar will have to be the same. Yet this will be on globalist terms, and America will have little choice to lay down their wealth in the hands of global bankers formally.
Friday, July 8, 2011
The Pullback Begins
It will be a short and quick one, but it will cause a panic. It will remind everyone, even bulls, that the "recovery" is "fragile", and this at the least. It is the depression that never was; the greatest depression never discussed. Once it is known by the public, it will be too late.
The pullback will wash the Dow once again. The Dow failed to hit its recent high, and will now run through the 12K range. But Bernanke will have some ammunition dry; still the world thinks that QE 3 has not been initiated- it has, but in a Light form. The Light will be turned on for a third time, and the debt will be monetized massively.
Obama is doing everything he can to put buffers on the economy: He is letting everyone unemployed live in their homes free from their mortgage for another year. How this is legal, well, Obama does not know the law.
The Military Industrial Complex is still in full swing for the time being, and this is making the Major Banks money hand over fist. How long oil will be cheap enough to run the war machine, time will tell. Oil will likely be the end all of the fiat ponzi.
This, but the US debt is still not solved. If the debt ceiling is raised, finance will be walking dead once again, but with a very inflationary twist. If not, public pensions will not be securitized, and the unfunded Social Security Trust Fund will be no more. There is no solution to any problem, except for one.
When all of this hits the proverbial fan, gold will be sought over all other assets. This will, in the least, double demand, and since supply has been lessening since 2000, price will sky rocket. All of this comes to a head by August. What is in store is right around the corner.
The pullback will wash the Dow once again. The Dow failed to hit its recent high, and will now run through the 12K range. But Bernanke will have some ammunition dry; still the world thinks that QE 3 has not been initiated- it has, but in a Light form. The Light will be turned on for a third time, and the debt will be monetized massively.
Obama is doing everything he can to put buffers on the economy: He is letting everyone unemployed live in their homes free from their mortgage for another year. How this is legal, well, Obama does not know the law.
The Military Industrial Complex is still in full swing for the time being, and this is making the Major Banks money hand over fist. How long oil will be cheap enough to run the war machine, time will tell. Oil will likely be the end all of the fiat ponzi.
This, but the US debt is still not solved. If the debt ceiling is raised, finance will be walking dead once again, but with a very inflationary twist. If not, public pensions will not be securitized, and the unfunded Social Security Trust Fund will be no more. There is no solution to any problem, except for one.
When all of this hits the proverbial fan, gold will be sought over all other assets. This will, in the least, double demand, and since supply has been lessening since 2000, price will sky rocket. All of this comes to a head by August. What is in store is right around the corner.
Thursday, July 7, 2011
Charting vs. Fundamentals
Charting PMs, it looks like prices are going higher, and since PMs lead all assets, then US equities should rise, and the dollar should fall. Yet, the fundamentals are saying that there should be a pullback. There is QE Light, but this should hardly mean the usual exasperation that the dollar has felt this year. So which one will win out, the charts, or the fundamentals?
There has been no significant selloff in gold over the last few days, and silver has shown very bullish tendencies. Silver has tested daily support over and over again. Oil has broken out. Yet, still, the fundamentals are bearish. The dollar has a little room to maneuver on a technical basis, especially considering the Yen and Euro are weak, too.
But technicals have been the superior to fundamentals for years now, so will we see the sharp rise in US equities now instead of this Fall, like I have supposed? The bet is on gold, and her sisters Trinity. Oil will also dictate the terms. Precious metals lead all assets, and this is the stone cold truth. Watch them to know the next move.
There has been no significant selloff in gold over the last few days, and silver has shown very bullish tendencies. Silver has tested daily support over and over again. Oil has broken out. Yet, still, the fundamentals are bearish. The dollar has a little room to maneuver on a technical basis, especially considering the Yen and Euro are weak, too.
But technicals have been the superior to fundamentals for years now, so will we see the sharp rise in US equities now instead of this Fall, like I have supposed? The bet is on gold, and her sisters Trinity. Oil will also dictate the terms. Precious metals lead all assets, and this is the stone cold truth. Watch them to know the next move.
Wednesday, July 6, 2011
Dollars of Gold
Today's trend of interest is that the dollar traced gold's move on spot. Silver, after yesterday's route, went for the ride as well. Oil almost sold off, and did momentarily, but crept back in line with the aforementioned assets (for better, or worse, in the case of the dollar, considering its historical relationship with oil).
This move is quite a gesture for things to come. Whichever the stronger fiat between the dollar and the euro always follows gold, so this may mean that the dollar is about to be the better of the two. This would make sense, considering the move has already started. Let us see if the EUR/USD makes a run at $1.38.
If this happens, oil and silver will likely pullback to their support, but gold should stay above its support level, if only barely. Platinum continues to be the weakest of the sisters Trinity, so it will test support too. As far as US equities, the long trend would say they will pullback.
This has been the Summer Trend I have outlined. A pullback may be in store in equities for the next month.
This move is quite a gesture for things to come. Whichever the stronger fiat between the dollar and the euro always follows gold, so this may mean that the dollar is about to be the better of the two. This would make sense, considering the move has already started. Let us see if the EUR/USD makes a run at $1.38.
If this happens, oil and silver will likely pullback to their support, but gold should stay above its support level, if only barely. Platinum continues to be the weakest of the sisters Trinity, so it will test support too. As far as US equities, the long trend would say they will pullback.
This has been the Summer Trend I have outlined. A pullback may be in store in equities for the next month.
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