Friday, January 28, 2011

The Watcher

The levels.....


$105.....Brent checks.

So now we are waiting on silver and gold.....

Next week should start with platinum as volatile as ever,  Gold and silver will then touch their recent highs (gold $1400 and silver $31).  Platinum will be around $1850 by that time with Brent pushing $105 and WTI catching up quick.  This will all come together by Mid February at the latest.  Then on the back of an Irish default/Spain bailout, the Euro will begin to capitulate.  The dollar will rise but not as fast as the trinity.  Oil will seem subdued.

Then Muni madness will descend on America.  The dollar vs Euro will be the most pointless exercise ever upon open markets.  Both are worthless and both will fail.  The trinity and oil will rise while the currentseas wash, rinse, repeat.

I also want to point out one thing.  Do you see that straight up tick on gold?  The one before gold slumped into the weekend?  That was a large gold sale.  What the COMEX does is time their sales specifically throughout the day to quell the market.  Before the start of the day, the amount total is decided.  This is why big monie disrupts the market.  The COMEX is not ready for big orders.

The LBMA do it to.  It is the manipulation in action.  The big drops in price are the opposite.  When there is a straight down move it was a buyer reaching down.  It is down when both sides of the trades are controlled.  This is the control the Fed shares with JPM et al.  There is your manipulation in action.

Gold will sell off after the big up moves, and it will rise after the down moves.  Everyone is panning gold right now, and the person who is most patient will get the bullion.  Staying with the gold in the long run is the best bet.  When you have the nuts, you stay in the pot.

Oil is going to double with the protesting in Egypt and the rest of Northern Africa.  If it spreads to the Middle East, then oil will double again.  Because silver tracks oil it will double, too.  Silver tracks oil because oil needs something to measure its worth besides the dollar.  The dollar does not really value anything.  The dollar's relationship vs real goods is inverse and as you see there is no contest between them.  The dollar has never won a round.  It is a wonder how she has managed to stay in the game this long.

The dollar may not make it through the Suez canal, but if it does make it to the Mid East, could it get to China?  If the dollar's death happens on China's watch, there will be a funeral right away.  Ask yourself why the world is rioting?  The do not like the dollar.  The do not like this way of finance.  What will replace it?

Offered up like a cheap dinner, Zoelick and friends will try to have a gold backed currency served to the world.  If the bankers are still in charge, it will not be to the benefit of the people.  Any form of usury is a horrible idea.  We call populations names like cities and states.  Maybe that is as big as government should get.  A government that holds power over hundreds of millions of people is bloated.  Government needs to be agile, for life happens fast.  End the Fed and let them all fail should have happened in place of the first QE, TARP.

 The road to nowhere started by Bill Clinton continues.  Boomers think they have their bases covered.  They have homes and a pension coming.  They saw their kids through school and wish them the best.  They drink beer like they are in college and tune out all the rest.  The have there jobs but only for a little longer.  It is the funniest thing to watch, this utter complacency.  And I am not trying to single anyone out, the "Greatest Generation" were tricked into thinking Hitler was not a puppet of the New World Order.  Today's kids have there heads up their asses.

So when the dollar gets washed by the rest of the world, what will come of America?  Would the places Americans refer to as "Third World" and "Developing Nations" starve while America collapses?  Who would have believed that.  Soon enough riots and protests will come to America.  It will be because the government is spent, but it will be fueled bu high oil prices.

I think the real issue is if America's infrastructure can hold up on expensive oil.  How many people in LA will not afford their commute?  What happens to Natural gas prices?  Some cities will shut down.  Suburbs will be non functional.  What will Americans do?

The house of cards is falling, and America watches.  America has become a country of voyeurs.  The culture was taught to watch with tools like the television.  The country has not needed to act except in faux exercises like the September 11th bombing.  Then they play hide and seek with ghosts of opium dealers.  America has chased the vapors for decades and decades.  If America does not stand up now, it will turn into the countries it is watching.


  1. Had tarp failed and there was no QE, you wouldn't be typing your ignorant blog to the world; you would be on a street corner begging for food.

  2. Oil is not going to double unless there is a revolution in Saudi Arabia. A doubling of oil will cause a complete economic collapse, taking all commodities with it and a huge spike in the U.S. dollar.

  3. Before you can teach, first you have to learn.

  4. Who's this Anonymous gimp?

  5. Anon, enough with the insults. f my vocabulary does not meet your standards, and my grammer with it, why read my posts? If it is a personal vendetta, fear not, I don't bite.

    As for oil and the dollar both moving higher together, if that is the case, it will be only for a minute. Oil trades in dollars and it has an inverse relationship with the world reserve currency. Thus why people say the DXY is not much weaker than it was even decades ago; they fail to note oil has become expensive. But that is what happens when supply and demand find equalibrium. Once supply moves left, the price will skyrocket (as long as demand stays high, whic I think it will).