Monday, February 28, 2011

The US Folly

I want to put this lightly; America has over reached.  Well, they are about to.  I think they have over reached, but the dollar still trades on market (how, I do not know).  Once oil production goes from a thought problem to one no one can solve, as the House of Saud is bluffing at their capability, the price will be a wrench in the financial machine. 

Creating destiny comes from the beginning, it is not something that can be dictated.  America has pushed a regime of total control over the States of the world and now they think it can continue to maximum.  The US has deployed the brilliant minds of Clinton, McCain, and Lieberman to solve the Middle East and North African problems.  Yet is it not ironic that it is these three who have created the mess?  Through back door spending and inane foreign policy they have created an unbalanced world demanding justice.  They now walk into their own fire.

They can site rhetoric and they can send messages, but any and all are hollow.  Clinton should note she spoke of civil freedoms while a leading intelligence operative, Ray McGovern, was beaten and taken away in hand cuffs for turning his back on her.  Hypocrisy will now once again show itself on the faces of the US envoy as they tell others what to do, but do not follow their own rules.

The riots are about living standards, as the ones in Wisconsin are.  Will Americans realize these before their politicians make fools of them and dictate terms to those who are not under their authority?  Will Americans realize that their politicians are figure heads, and actually have no authority in any matter, from Bahrain to Green Bay?  Politicians do not tell us what to do, and they do not tell anyone what to do.  We tell them what to do.  The serve the people, if they are American or otherwise.  If the US pretends like human rights and freedoms do not matter, it will be their wake up call, as the rest of the world knows the truth.  Destiny is created by the people, not by the politicians.

When trading Ends

Everyday I find a hot stock in the gold/silver mining sector or an oil producer that after gaining huge throughout the day's trading, enters the futures market red.  How could a stock, today Hess, go up all day, only to close with its futures red?  This is big money shorting stocks in order to keep a lid on things.

Last week on numerous occasions I saw ABX have a big day, and come one o'clock, it started out in the red.  Once again, this tells me big money is holding a short position to keep the stock from breaking out.  Who would do this and why?

As I have written, big money shorts the miners to keep spot down.  The miners hold huge reserves, and these reserves are part of their equity.  So if spot goes up, the corporation's equity goes up.  Well the reverse can be true if the scale is large enough.  f someone, I don't know, say the President's Working Group on Financial Markets, shorts ABX and suppresses their equity, their massive gold reserves are thus undervalued, and weigh heavily on spot.  Oh how the little things make all the difference.

As the World Burns

Gold finds support twice at $1407 today, as silver breaks out and wanders near $34.  Gold should pop next.  It should be above $1420 in the next 24 hours.

US leaders are in North Africa chasing windmills and trying to subdue the masses with useless rhetoric.  The people protest because food prices are killing their earnings, and they want a new way of doing business.  Tunisia has ousted PM after PM.  This is about economics, not politics.

Obama also disguises the issues and tries to live up to his Orwellian Nobel.  We will roll out aircraft carriers in the name of peace.  Bombs for peace.  Oil for peace.

Sunday, February 27, 2011

Hyperinflation: Stage One

There was the precurser in the form of steady inflation before the coming "hyper inflation" last year.  The prelude of what is to come.  Last year the 'flations meandered on bad news of oil spills and the like but always managed to climb higher.  It was that steady inflation of money printing coupled with steady deflation of wealth destruction of the consumer economy by bankrupting States and the people who embody them.  Now we enter the actual First Stage of hyper inflation.  We see this with the "Third World" hyper deflation amongst the riots and coups.  The value of their respective currencies is devaluing, so are the bonds that pay their debts, and they are forced to sell gold and other hard assets, like oil.  They are trying to increase oil output in the midst of protests and it will not be easy.  The Middle East and North Africa face a mighty battle.

If that deflation does not wipe out the world creditors first, then the world borrowers will spend their way to recovery, or die trying.  The "First World" is engaged, and has been, in the same paradigm, but it is termed "Austerity Vs. Money Printing".  So far the out come has been steady inflation.  Now the "First World" and "Third World" are combining forces in world finance.  This is the first stage of hyperinflation.

Soon Keynesiansim will fail and the end result will be the lack of ability to price assets in dollars.  The worlds of the world will not know how to trade oil and other commodities when fiat is shown as the ponzi it is.  There may be many stages to go, but we have hit V-2.  There is no coming back from Hyperinflation.

Asia dictating Gold

For a month now, before any spike in gold, the Asian traders have been the ones to start the rally.  I was examining the February AM/PM chart and I noticed that the bull runs happened the days after the PM session led the AM session.  Asia are the ones spring the price higher.  They are doing this because they are net buyers of gold, and this on the long end.

Understanding the dollar's relationship with gold and precious metals is simple, yet complex.  Simply, gold trades well on a strong dollar and weak dollar.  More complexly, gold trades well on a strong dollar, and strong Yuan.  The Yuan does have higher elasticity in correlation with gold than the dollar was.  This gives Asia more flexibility trading gold with the Yuan than the dollar.  This is one reason the Yuan is poised to replace dollar assets in the SDR basket.

Asia has a lot of room to make up for after they continually invested in the fiat ponzi empire.  Treasuries and cash reserves make up the bulk of their investments.  The Middle East and even North Africa have more diverse reserves than Asia.  Asia will have to make one last run at precious metals before the looming oil crisis.

Russia and China have brokered a deal for oil, but unless the Yuan can trade for oil, that deal may not matter.  It would take years for China to accumulate enough gold from production to match their cash reserves.  China has to strengthen their bank sheet and this means they have to buy gold on the open market.  They and Japan will now begin to move away from Treasuries in a massive way, and begin to buy large quantities of gold.

Yet since the world banks are net buyers of gold, how will Asia get the gold?  They may stage a raid on the COMEX, or on the LBMA.  They may also raise their own miner shares to the point where international mining prices could raise spot.  I say that because the opposite, that when miners are shorted it lowers spot, is true.

There are few solutions to the problems of governments collectively.  Finance will try to thread the fiat needle of austerity combined with Keynesianism, and they are sure to fail.  It may be that gold goes parabolic sooner than anyone thought.  How soon the panic sets in after the global food riots will soon be found out.

Iraq Protests

The Iraq  protest has changed everything.  The protests that have been ensuing in North Africa spread to a country where the US had put its seed, and the seed did not grow as intended.  The people must be upset not only with food prices, which are directly related to Central Bank policy, but with the way their Republics are set up to be reliant on a global finance structure.  The protests have changed the way world "democracy" works.

Basically the "Third World" states are taking their court back.  Not that it will do them much good now that fiat money has destroyed wealth creation in the "First World", but people take what they can get.  In the long run it will be better for the US and Europe not to be reliant on oil from the Mid East and Africa, but the snap back of higher oil prices is sure to roil global exchanges.

Oil is about to be very short in supply out of the Mid East and North Africa.  Oil production, whereas once at the top of priorities, is now below food and regime change.  People have to eat first, before they can work in the oil fields.  Now that they can not eat at a reasonable price portion of their earnings, they have begun to question their political, and financial, system.

As Asia by China and Vietnam join the protests, and Indonesia before them,  the wheels are falling off the economic car.  When the input cost of oil breaks the back of the consumer, there will be nothing supporting the system.  The world will now skid, and maybe for a while.  You know the action hero who rolls out of the car  before it flies off of a cliff?  Yeah, be that hero.  Buy silver.

Friday, February 25, 2011

Waiting on Gold

Platinum was in its "breakout range" long ago.  This range is $1800 to $1850, bottom to top.  After that, it is up to $2200.  Silver has also broken out of its old range, and looks poised to make significant gains on huge demand and supply problems.  Oil is out of the barrel, literally.  And so gold is the last to make it out alive.  It will, and we wait.

Gold is back in its range of $1400 and it will only take back to back up days to get it to $1440, at which point it and the other horsemen will besiege finance and rip apart the paper money system.  Precious metal is monie, and it will trade for oil better than anything.  It would now, if paper was not veiling the eyes of the world.  Soon it will not, and precious metal will take their place back as sole proprietor.

Thursday, February 24, 2011

Empty Threats and Vaults

What is causing gold to go down today?  All of a sudden, on Gadaffi assassin rumors, gold drops.  Oil went down heavy too.  Silver too.  Platinum not as much as $1800 is its support.  The weirdest thing?  The dollar failed to gain.

Equities bottomed off of Dow 12k.  They seem to have found a niche with the weak dollar over the last couple of years while Bernanke dangled his sword over the dollars neck.  How long will the dollar hold at DXY 77?  Depends on how long gold can be held below $1440.

The pace of money has sped up on all the uncertainty.  The volatility is still massive.  If things quite down, expect more of the same steady inflation.  If something momentous happens then anything could follow in finance, even the end of the Keynesian experiment.

We know in the end the bank vaults are empty and the banking system was never functional.   Any discourse from such entities is veiled and shallow.  They have not the necessary collateral or means to sustain what will be the old way of finance coupled with humanities tools.  Technology has changed since gold was monie, and maybe for the better.

Peak oil is here.  Even if we have a lot more the Middle East is about to cease as a viable option to rely on.  America will be forced to use its own, and destroy its habitat and thus erode its future.  Europe will be forced to pay out the nose, as they have little oil left.  China has Russia, but will compete with Europe at the price and margin.

All the while gold stays quiet.  It stays forever, in any amount.  This is what makes it monie, and monie creates finance.  As reliant on monie, monie is reliant on finance.  The better the world is is shaped by both and how both function.

Gold's new Support

Gold has found support at $1407 today after breaking through its previous $1403 resistance level.  There should be a big move in the next 24 hours, as gold will approach $1440, if not break away from it, by the weekend close.

Silver has still found support at $33, WTI is about to reach $105 while Brent has already broken from the way finance had priced it in.  Economics is pounding wood.  What could have gone so wrong?

Fiat is 100% overvalued.  It has no value, not even minimal.  The main question now is, how will contracts be kept?  Will the SDR save the dollar, if the Yuan or another "value" is added?  Will gold have to be made a debt payment for debt obligations by governments to save the Neo Keynesian system? 

Gold is monie, and if someone loans it, they better be ready to fight for its return.  Holding a goat, is better than holding a deed, and where will a goat get you?

How long will it take for the globalists to destroy Everything?

How long will it take for the globalists to destroy everything?

This is the new big question.  Let me start over.....

The rulers of the world, being despot dictators like Gadafi or  technocrats like Brzezinski, have one solution for their problems.  Chaos.  The cloud will engulf the people while the man behind the scenes slips out the back.  At this point, Jack, it would be best to slip out along with them, but please remember, they have something of yours.  It is your freedom of choice.

The globalists have set up the dominoes long ago by brainwashing the whole world except for a select few.  Was it the people's fault for buying into it?  Yes.  Buy how could anyone help it?  I know, it is defeatist to say, which is why, in the end, it is our choice to continue this fascist way of life.

People could live without corporations.  The main reason that the Constitution of the United States of America seperated itself from prior documents is that it specifically seperated people from corporations.  Corporations had to renew contracts, people could continue to work without permit.

This needs to be reastablished.  Corporations are not people, even if the opposite is true.  A person should have the right to do whatever they want as long as no one else is impeded.  Yes, defining this is difficult, but that is what the courts are for.  First we need to rewrite the original piece of legislation.  We need to renew the Constitution.

Once the Constitution is reastablished, America and the world will bloom.  It is a for private corporation that issues the monie supply.  This could not happen under the first, the original constitution.

But so goes the day into the night, with civil unrest on every inch of the land.  The turmoil could stop if the people wanted it to.  It is for the people to decide their lives, not the corporations.  People are what they are waiting for.

The Proxy's Silver Proxie

Last year I had a revolation.  In April upon hearing just how many shorts the House of John Pierpont Morgan had against silver I called them out.  I specifically targeted JPM and said by buying silver we could force them to take their positions off.  I also said it would happen enevitably, because silver demand is rising industrially.  I said, by mid summer, the paper price of silver will capitulate, and silver would reach $36 by the winter solstice.

I made this call based on a few things.  First the prices of platinum, gold, and oil must be taken into account, and those movements were charted.  Then I decided that silver was the easiest for us to buy, and the easiest for JPM to short.  I thought this because silver is so cheap.  Once silver is not cheap, which is wasn't when it passed $21, JPM no longer wanted to short it.

Still though there are silver shorts, and there are many being held by JPM.  They have lifted some, but those have been replaced, some by China and some by other proxy banks (which I assume have direct funding from the PDs, or the President's Working Group on Financial Markets itself).  Still, these entities burn fiat at their sacred alter.  How much longer will they?

This is not how I came up with the slogan to 'Buy silver' though.  That happened before I realized exactly what was going to happen with the silver market.  I wanted to people to buy silver because I was worried that the government would confinscate gold.  I thought it up after reading The Wizard of Oz.  Silly as that might be, the silver slippers I put on worked just fine, and I encourage you to click your heels three times too.  There is no place like home.

That being said, even though I am a couple months behind, my price target of $36 is still in line.  It will be here by the Spring Equinox.  This last move should rip the heart of those who short silver right from their chests.  The Fed et al have many other problems they are facing, and only one of which is silver.  Besides, economists want a weak dollar, so a rise in the price of silver will make that happen.

Wednesday, February 23, 2011

Steady Inflation

Steady Inflation is the process of massive money "creation" with an almost equal amount of debt destruction.  In the case of current US finance, the Fed is printing a little more money than what is being destroyed on the open market.  The little amount that is the difference is the inflation.  It has been 10% for the last two years YoY and is now approaching 20%.  This has been absorbed by precious metals and oil.  That is the price gain you see.

Dixie's route 66

The move to DXY 66 starts now and it will be completed by the Spring Solstice.  The dollar is struggling mightily trying to keep oil prices suppressed, and the dollar will lose that battle.  The dollar is also fighting to keep gold and silver down.  It will lose that battle as well.

The dollar is dead in the water, but what should have been expected by such a fiat.  There will be no replacement fiat either, they are all equally done for.  The pound, the Yen, the Yuan, these are merely different words for the same thing- fiat.  Fiat is the joke of the 21st century already, and there is still 90 more winters to go.

Platinum Tonight

Tonight platinum will take off from $1800 onward, it's next stop is $2200.  It will sweep gold off it's feet and gold will wind up at $1650.  Silver will move to $36/$37.  Oil will be at $150 per barrel.  This will all happen by the Spring Solstice.

This is the next move, and all the ducks are lined up.  With a plethora of bad news heading down the pipe the economy will be torn to shreds.  The smallest market, precious metals, will absorb the brunt of investment.  Many dollars will not make it to the safe haven, and will be blown out in the deflation bomb.  Bernanke and all economists will beckon their books and theorize inputs and proper outputs.  The game will continue the same way it has been going for decades now.  There will be only a few more bumps in the road for real monie, gold and silver, to once again be recognized for what they are.

Massive Money Unwinds

This is just as bad as the liquidation that occurred last Spring, in what has been titled the Flash Crash.  The reason is because the dollar has not been a safe play.  The Euro and other currencies have made gains, but it is nothing to the slaughter on equities.  Treasurie bonds continue to capitulate as no one wants to be holding worthless paper ten years down the road.

Gold and her sister metals are the only winner, that and oil production, but the gains are not close to the over losses.  Here is your deflation!  It happens in spurts.  Hyperinflation has been the steady one, and it has not been so much hyper as steady.  Maybe I should trademark this...steady inflation!

Gold to $1650

Tomorrow gold will break from its upper support level of $1440 to $1650 in the span of the next month.  It will happen by the Spring Solstice.  There are too many problems with the dollar, with oil production, and with entitlements to stop it from happening.  That and the charts say so.

This is resistence of my upper support level of $1440.  This is gold.  Gold may be a little over rated in my book, I am much longer silver than gold, but it is monie.  Gold has silver at its back, and oil is surging on turmoil.  Also with gold is platinum, who broke out long ago.  This is the first step of the climb up, which ends by 2012....

Gold at $10k easy.

Oil at $500/b easily.

Silver at $500 easy.

Platinum at $13k.

The dollar will be made not the reserve currencie.

This is inevitable, unless people take matters into their own hands and buy silver.

Third times a Charm

Gold broke through resistance for the third day in a row toady, blowing out $1403 with authority.  Silver has made steady gains too.  Platinum is near the bottom of its range.  The trade is becoming more and more volatile, which means things are speeding up.  Oil is having the dollar stay well below DXY 77.77 too, and 77.77 is the new resistance level for the dollar.

Things are going the way of the gold bug.  Nothing stands in the way of precious metals real worth shining through the long black veil of the dollar.  Every printing press has discovered problems.  Maybe it is time the President's Working Group on Financial Markets shorts ink like they do silver, you know, so they can keep the price down for the Chinese to buy it.  Man those printers, Keynesians!  And ride them until the wheels fall off.

The World Protests

Finally America and Europe have joined the world protests to eliminate usury from the system.  It is what is causing higher food prices.  It is what causes slave wages.  If we could take our monie back from the Central Banks I am certain we could share the resources well enough to all stand in equality.  Will it be a most difficult road?  Obviously, as equilibrium is hard to maintain.  But armed with our constitution, and our knowledge of human rights, I believe we can do anything.

Greece is back at it, and the Mid West of America is relentless in its protests of austerity.  Austerity is not the answer, the answer is ending the usuratory fiat system.  Once people stop paying the illegal Federal income tax, there will be enough monie freed up to do whatever we want.

I am not calling for a total end to America.  II think that a Federal government with minimal authority and a ceremonial Congress would be the best thing.  Everyone in America shares common memes and we should not forget that.  The Federal government should enforce foreign tariffs, and should guard our boarders.  This could be paid, as it is now, with the corporate tax.  The Federal income tax only pays the interest on the debt.  The debt is what is crushing our Republic, and we should rid ourselves of it and the banksters it rode in on.

Tuesday, February 22, 2011

Stocks fall on flat Dollar

The most interesting trade of the day was the fact that there was no clear winner in today's blood bath except the shorts and oil contracts.  Even then, oil was not a clear win across the board, as oil producers with exposure to Libya took a hit.  Those who sold into the market were not rewarded with a strong dollar, like usual.  Instead, the dollar remained flat.  Precious metals consolidated back into their three day average

Some major interests moved out of equity today, and even out of precious metals, but they were not rewarded with any stronger currencies.  Could it be that these interests equally dispersed the cash against a basket of currencies?  The currencies of the world are about to be recalibrated, and I was not surprised by today's moves.  The next moves may have quite a large impact on finance, assuming the ramifications are similar to what we have been seeing. 

The only way any bank, central or not, could get ahead of the curve is if one declared gold the backing of a new standard of monie.  Any State could charter a bank to do this, and it is not out of the question for a large State like China or Russia to do this as well.  It has been a waiting game until now, but with Africa and the Mid East set to explode, there is nothing holding the future back.

The Three Dollars

There has been three very different dollars since the inception of the for private Federal Reserve Bank.  The first dollar was almost identical to the one before it- the greenback that was redesigned by Lincoln.  It was backed both internationally and domestically by gold.  Then in 1933 with his first act as President, Roosevelt rid the world of the dollars ability to domestically settle for gold.  The second dollar lasted up until Richard Nixon banished the dollar's ability to settle internationally for gold, and that brings us to toady's dollar. 

Today's dollar is a total fiat debt instrument that has been monetized initially.  The whole fiat system is a charade from the get go.  It has been this way since 1971.  It was slowly eroded from 1933 until then, and of course since 1913, this was to be the plan.

Platinum's paper Decouples

If you have been reading this blog for awhile, which many people have (and it has been my pleasure writing for all of you) you may remember the original levels I set for the Next Big Move.  They were:

Platinum at $1800.

Silver at $31.

Gold at $1400.

Oil at $105.

I have noted the breakouts in platinum (from $1800 to $1840) and gold (from $1400 to $1440) and silver ($34 speaks for itself) so it is once again fun watching the ebb and flow of the manipulation mania that has taken hold of the paper markets.  They continue to decouple, and today platinum was let go of by many paper contracts.  Very little physical is being sold at a loss, as most is for long term holding.

Oil versus the dollar may be the last thing that goes.  Once it is past the tipping point, America will have to take major cuts in its standard of living.  If America had remade its infrustructure to maintain sustainability, maybe there would be no problem.  But now that America can no longer rely on Mid East/North African oil, it has little to do.  Military conquest is not a viable option, as it takes oil to power the fleets.  There is no good solution, but it may be an oppurtunity.

Time affords much to think about.  The future is for the making.  Humanity has come a long way since Earth's and life's beginning.  We still have love in our hearts.  We should never forget that.

Gold Breaks Again

It is moving fast now.  Gold is being manipulated through its support levels and breaking its resistance levels in the same day!  I had resistance at $1403 today, and it just broke it.

Gold, as any trade, always has a support level, and a resistance level.  There are sometimes more than one near term, and there are many support and resistance on the chart.  For example, platinum could
break to $2200 and not affect any other trade.  $2200 is its recent high, and the economy could handle the price action.  Another example is that the dollar could move to 66.  Any lower than 66 and the wheels fall off of its reserve status, because it would not have enough value to support the system.

So with $1403 broken, and it being a day after a successful break past $1400, I see only an open road ahead for gold.  I think that it gets to $1440 within this wee, and a successful break out to $1650 comes soon after.  We most likely will pause at $1440, as some day traders take profit, but it will be $1650 by the Spring solstice.

Economic Pseudo Science

The global food riots will get worse before they get better.  Even though Bernanke said he would rates if he had to, and he has to, he will not.  There is a direct disconnect between economists and their policies.  The theory goes that food prices are highly volatile, thus why they are not a component of CPI.  So basically Bernanke will not do anything to stop the run away inflation until it is too late.

The blind lead the blind in economics, as anyone who studies the psuedo science using neo Keynesian rhetoric has no sound theory.  After supply/demand the psuedo science falls off into theory based on fiat money, slave labour and numerous other atrocities to the society we have created.  This is very dangerous.

There really is no way to grab the control out of Keynesians hands other than to stand up and walk out on them.  Monetary policy is strictly influencing politicians and business people a like.  The game has gone their way so far, and they are too short sighted to see the on coming train of reality.  It is thundering along the tracks, and it will not be long until it demolishes those standing in its way.

Monday, February 21, 2011

The Dictator's Quandary

Should a dictator stay in his country if it is on the verge of revolution?  They will say they will fight for their Divine right to rule, but they will flee every time.  There is nothing left for the dictators to steal from their people now that the State Treasuries have been looted.  They were first looted by the IMF/World Bank, and now are being looted by the dictators as they flee the ruins.

Libyan Mumarr Gaddafi is the latest dictator to flee.  All are taking gold bullion reserves with them.  When the rulers of countries are fleeing with their chief asset, the end game is in sight.  What happens next will be dictated by monetary policy.

The Fed has its back against a wall.  They can not raise rates because the interest payments on the debt would crush the taxpayers, but the dollar will be printed into nothing unless otherwise.  The game is up for the Keynesians, but they will not walk off the field without a fight.  Their policy is about to die in front of the cameras.

Behind the scenes the rulers of the world plan to live out their days on acreage in sunny countries, away from the hoards of mad consumers.  They have gold and land and they plan on retiring that way.  These are the Rockefellers, the Bushes, the Gaddafis, the Mubaraks, and the Turners.  They are the planners of policy, and their back up plan is to walk away until the dust settles, if ever.

Riders on the Storm

Gold just now broke the $1400 level with authority now that it has cleared $1403.  This was the move we have all been waiting for.  The next resistance level is $1440, and with silver appreciating with break neck speed, gold should not have trouble moving past that and onward to $1500...$1600...$1700...$1800...$1900...whatever.  The next move up will shock the world, which appears to have its head in the sand as to what gold is; it is monie..

The reason I am confident about the next move is that I have all my levels in check.  Oil is above $100, and with the Mid East erupting into civil war, oil will only become more expensive.  Platinum is long overdue for its next break, as it has been sitting above $1800 for some time now.  It was waiting on silver, and silver has broken out.  So now gold joins its team.  The next big break out starts now.

How much gold will be looted by the dictators as they flee their kingdoms?  How much cash will be thrown from helicopters in order to sedate the masses?  The monetary system is in total shock right now.  It was not, nor was it ever, prepared to deal with such instability, especially at the height of its duress.  Fiat is dead.

Nothing stands in the way of precious metals taking back their role as reserve currencie.  Fiat is dead and Keynesians are lying to themselves or everyone when they presume that printing hundreds of trillions of more dollars will lead to a renewed and established banking system.  The new leaders will be those who understand what monie really is.  The new leaders will be riders out in front of the storm.

It is hard to lead a charge.  It is hard to know what to do when one is ahead of the pack.  But we know what the future holds for humanity, and we must take control of ourselves and our lives.  Buy silver.

Sunday, February 20, 2011

Asia jump Platform

Whether precious metals move parabolic now or later is besides the point.  It will happen eventually.  For now, the stage is set for a complete up move in all precious metals and oil.  Fiat is struggling mightily, and governments are failing left and right.  Still the President's Working Group on Financial Markets will team with the House of John Pierpont Morgan to keep the lid on the pot.  This ends with the prices of precious metals boiling over.

Metals have traded strongly to this point and there is no reason to think otherwise will be the case in the future.     Asia trades them strong, it rides a strong Euro, and of course it trades when the dollar is sucking wind on its last gasps of breathe.

Yet here we stand, on the platform, ready for the jump off.  Platinum is at its recent high, and so is silver.  Gold is just a NY minute from being at its recent high, and oil has pushed up above $100.  The dollar is burning its nights away keeping Wisconsin solvent, and even they admit their time has come to pay their dues.  There is one solution though.

The banksters do not need to be paid.  Yes pensions will cease to exist if the banks are let to fail, but that money was never to be expected anyway.  The fiat system is one of lies, and lies should not be lived.  The time has come, and the moment is at hand.  Let us keep our protest peaceful, not lose our heads, and BTFD.

Saturday, February 19, 2011

Brave New Future

The "Republicans" ie Karl Rove, are scaring the Democrats away from Ron Paul.  The perspective of the Democrats is one that is in control of society.  They are the nannies of the culture.  So when they Republicans are saying Ron Paul is crazy, then he has to be.

This is of course a false proposition.  The Democrats have nothing over any other league of politicians that use the fiat money system combined with  Neo Keynesian theory.  Also, why should what the republicans feel about Ron Paul sway ones opinion.  Paul's voting record is more similar to DeFazio and Kucinich than any others.  Ron Paul's voting record is what should decide his merit, and Paul has the most democratic possible.

Paul has not supported war throughout America's regime as the hegemonic military leader of the post industrial era.  This technocratic era has been dominated by the Military Complex, which although industrial, is a mere technocratic and strategic tool.  There has been little need to keep boots on the necks of the third worlds.  The need for oil and leisure was not too great  to afford real compassion.  With a little planning a few decades ago, the world could have been made sustainable.  The sad fact of the matter is, it is a little late in the game.

Yet the game could be ended with the drop of a hat.  This usuratory system is crippling nature, with us included.  Establishing State banks backed with real monie will end the fiat system, thus removing the leeches from peoples wealth.

Wealth is measured in things.  If you do not agree, go sit as a Monk on a temple.  Otherwise, we will trade.  Monie is what we use.

Monie has a remarkably complex definition, due to the fact that it must fit four categories.  If only one of those categories is not met, whatever the item was con not be used as the i) Medium of exchange  ii)  Store of wealth  iii))  It must be fungible  ii ii)  Standard of deferred payment.  It must have value.

The fact that economists do not ascribe to these rules is alarming.  How could a theory such as fiat ever exist when we know that the item must store wealth?  Luckily we have not been tricked long, as it has only been 40 years since Nixon completely rid the world of the gold standard.  At least officially.

Still today gold sits in Central Bank vaults.  Why?  The obvious answer is that it is still used as an asset on their bank sheets.  In fact it is the loan of first recourse.  It is the proprietary loan.  It starts the fiat ponzi rolling.

So gold then is still the standard.  So what happens when there is more deflation and more destruction of debt?  An asset must rise, and the only one left standing now that Keynesians have destroyed credit the world over, is gold.  Amidst the storm, gold sank to the bottom of the sea.  Because we know what it is proverbially we know where it is located on the oceans crust.  It is time the United States of America take the gold back.

Trouble is, there may be no gold in the vaults.  Some vaults that have been audited have no gold standing (and silver and platinum too).  Most bank vaults have never been audited.  What would happen if they were audited?  Spot gold would sky rocket, and credit would be further destroyed.

We face a brave new future.  We have made many achievements in our day and these things will be tools for a time to come.  We have harnessed energy like no creature before; we are the fire bearers.  This achievement must not be over looked, but should not be understated.  This power has brought us to the edge of darkness.

Luck may be our best friend, yet we should seek not its fortune.  We may invent further technology, but here and now, we have no energy source to replace the continuing depletion of oil reserves.  The oil reserves will peak production soon, if the haven't already.  This will change depending on the advancements of battery power.  The burden will lesson with the advancements of  energy sources such as solar.  But because the problem has not only been ignored but not even comprehended properly, there will be a dramatic change with the world culture.

War is the only thing standing in the way of a functioning society post fiat.  Living standards will change, but what does that mean anyway.  America will become  farmers once again.  Agriculture  is America's future.  Europe is well situated as they are connected to the Mid East oil  farm, but how sustainable will they live?  We will find out.  Africa has begun to understand how to organize itself, but war and disease still plague their  many States.  South Africa will likely bloom; they have the resource base as North America, and an infrastructure that rivals Asia.  Asia appears it will be sustainable, but how much will living standards appreciate?  Most likely wealth will be created slowly, and over time.

It will be interesting to see how the new governments of the world shape up.  It will be hard for China to move away from the technocratic era, and it will be difficult for the third world's to gain achieve value.  They are burdened with huge groups of completely impoverished people.  The wealth gap may be similar if not worse in America, but America will most likely feed itself, if only that.

The only thing that stands in the way is war and a tried lock down of the State.  That is why it is important to impeach all politicians and renew the Republic.  Of course this is unlikely to happen before the crash of the fiat system, scheduled for any year now.  People will most likely not take over the monie supply before the corporate interests loot the whole and entire financial system, but that is why we discuss it.  Those of us who understand the problem of fiat are the only hope.  As cheesy as it sounds, it is true.

Friday, February 18, 2011

The Desperate Keynesians

Keynesians are desperate.  They had an opportunity to unleash policy on the world and it failed.  They are closing the hatches to their bunkers.  Silver is blowing out the foxholes.  The battle is almost over before it even started.

Their is no back up plan for the Keynesians.  Fiat money is all they have.  They will not come up with new theories, because Keynesianism has nothing to build on; it is based on make believe.

The Dollar's Wall

The dollar is the first thing seperating the first world from the third world.  There are enough differences in the infrustructure, education system, and various other aspects of the cultures to seperate the two "worlds" generically; stereotypes can be made on any thing.

And with the world descending into choas, what will be the first dam to break?  It will be the dollar.  The wall was thin, and paper is not the best to withstand the elements, except when written on exclusively.

SLW over $37

Finally SLW clears the price I suggested buying at a couple moons ago.  It feels like it has been forever since silver was appreciated on the main stream level.  I get lost in the propaganda.  It is hard defending even the truth sometimes.

Silver is by definition monie.  It trades just as gold and platinum do.  It has not yet peaked production, and with its supply increasing, the price has not changed dramatically due to demand concerns.  If however there is a demand concern, which may happen soon, then price will sky rocket.  I can guess as to what the price action will be, but more than anything, it will make fiat money look stupid.

Thursday, February 17, 2011


I don't know whether to laugh or cry, and I haven't done either.  Both which way I care not how the demonstration begins.  I will have it for the attainment of rights or privileges.

If the people go after their privileges first, they may not be able to achieve their rights.  It could work as a choice maneuver if we act like we want pensions, but we must fire all the politicians right away.  The bank is broke on privileges, there is no monie for social programs anymore.  Now if people seize their rights away from the banks and federal government, then enough wealth could be gained to start a new system.  Otherwise both will be lost and the other side will establish the new order, or whatever.

Bernanke is Cornered

If he in fifteen minutes raised the interest rate, this would show weakness in the Fed's ability to control, or rather, manipulate prices.  This weakness would mean that money would flow to gold, which is real monie, because what else is there?  Gold is the world's reserve currencie by default, because all of the Central Banks hold it as collateral.  It is gold that backs the financial system, despite rhetoric.

If Bernanke raised interest rates, the gig would be up.  There would be such a panic that the whole financial system could capitulate.  What would be left?  Ashe and gold.

Raising the interest rate would instantaneously bankrupt the US Treasurie, which would end the dollar's rule.  Then the IMF and World Bank would be called in.  The US gold reserves would be used as collateral to support the SDR/bancor.  This is what the financier banksters will try to do.

This effort appears to me to be all for nought.  If the financial system can not keep itself together under bank rule, why should we continue this system?  I think it will be obvious to the world.  I think that Federal Governments will be passe.  I think State banks will take hold of the system.  It will be a whole new world, one where usury is absent.

Usury is the only thing to blame the failure on.  We can scapegoat as many people as we want, but the problem lies in usury.  The dollar be definition of its fiat nature is nothing but a tool of usury, as the dollar holds no value and only stands as an IOU.  The dollar is numbered, and this usaritory system with it.

Spot/Miner price Divergence

PMs go parabolic, and the miners sell off.  Who would sell their mining shares while silver breaks resistence at $31?  The President's Working Group on Financial Markets, that's who.  Considering that miners hold reserves, their price reflects spot price.  The opposite is obviously true, but what I am pointing out is seldom stated.

Barricks Gold Miners may have the world's largest private gold reserve.  Their shares reflect the price of gold.  If they are sold, does spot come down?  It has in the past, but now that paper gold has decoupled from physical (which I wrote about on January 7th) it matters little.  There is not much the Money Masters can do at this point to stop the price of the Trinity from being, well, priceless.

Wednesday, February 16, 2011

Gold trades Well

Gold today traded on a strong Euro.  Other days it trades on a strong dollar.  This is rhetoric.  More than anything, fiat trades on gold, and the fiat are just crabs in a bucket.  Gold is a goose in the bucket.  Luckily the crabs have not noticed it is not like the others.  The goose's time to fly out is here.

Open contracts on silver are at a very important level.  60,000 are still open with ten days to go before people will stand for delivery.  The final number could lesson dramatically, or it may not.  With finance on fire, and fiat burning up, it is likely that those who take physical possession of their wealth in precious metal will make it out of the flames.

Gold is the most liquid form of trade.  Yes, the dollar is the largest market, and yes technically it is the most liquid, but we know it is worthless.  Gold and the Trinity of precious metals will rule finance once again, sooner than most think.

As of now, silver, platinum, and oil have all come to the doorstep of the next big move.  Gold is needing to be around $1400 to start the show.  The time may be up on the fiat ponzi.  What lays in store no one knows.

The Ghost of Mubarak

What happens to a brutal dictator who does the bidding of the Neo Western Empire?  At his first refusal of an order he is removed.  His ghost now haunts history, as does other rulers, most presumably Ahkenaten.  What happened to the man before his story ended?

Mubarak had a firm grasp on Egypt during his whole rule, in part because he had the backing of the dollar.  Many dollars were invested in his regime.  These dollars were given to him to facilitate torture, among other atrocities.  The geography of Egypt is its next useful trait.  It has a huge river and coast and was a net exporter of oil.  It also has the Suez.  If it wasn't for these dollars investing in Egypts infrastructure, Egypt would have been nothing more than a large Panama.  And now that its oil has plateaued, all it has is the Suez.

Egypt now somewhat used up transitions into a new phase.  The first is strict military rule.  How long will it take to get a democracy, let alone a republic is uncertain.  They do not have many months to get their act together Before Bernanke's money printer raises the stakes at the table.

What must be done is a refusal to pay their bonds.  They must issue a new currencie backed by gold.  They must be self sustainable.  The final goal is a long way out, as all countries should benefit through trade, but Nation States must not partake in usury.  Usury ruins the State, and the purpose of the State is to benefit the people.

Lights, camera, Action!

The action on the exchanges today are telling.  The dollar is in full capitulation, but because only some monie understands true finance, the markets remain highly volatile.  The market is slowly remembering precious metals act as monie, and nothing else does.

The chant to end the dollar is deafening.  As of now the only viable option is gold, but these does not please the financiers.  They want a new currencie, or the SDR, to have unlimited elasticity and so they can not have a pure gold standard.  Gold eliminates usury because it is nothing more than a certain amount, and can not be asked to be more.

All eyes are on gold, but it has very few backers.  People will call it down until it reigns over finance once again, like it did only forty years ago.  Until then, there will be many top calling trolls, especially the higher it goes.  But until it is known for what it is, monie, jealousy will not affect it.  Only once it captures its throne should one worry about a bubble, as only once the top is made can it fall.

There will be a time when gold loses a lot of value, but it will not be for at least ten years.  The gold bull will run through the dubious finance practices of the last hundred years like in a porcelain shop.  Why the bull was brought to the shop I do not know, but it was, and there goes the porcelain. 

Tuesday, February 15, 2011

Paper oil Decouples

Paper oil has now officially decoupled from the price of real crude.  Brent is above $100 while West Texas Intermediate pulls back to $84.  Unbelievable price action, but anything is to be expected when the financial ship sinks into the current seas.

Paper is getting its just desserts.  It has no ability in finance when the chief officers, the US Treasurie and Federal Reserve, are bankrupt too.  IOUs and debt obligations are a thing of the past.  Collaterial will now dictate global trade.

Who will rescue the World?

America is bankrupt.  Europe is bankrupt.  China is pegged to these two.  What happens if the Middle East fails?

Certainly the IMF/World Bank would swoop in at the bequest of corporations.  Would this be an opportune time to create a world currencie?  The world will likely capitulate and adapt suchly, if the conditions are right.  The Muni market and housing market are on their heads.  It will not take much to get the world past the breaking point.

Everything is static, and even so much more when things are messed with.  Finance has been retarded by economics -if there is such a theory.  It will not end until economics is known as a fraudulent theory.

Another fraudulent theory is politics.  The Greeks had it right when they said he who does not want to serve should serve.  They never figured out how to do it, but hey, there's a start.  Hillary urges Iran, "Rise up!"  If she is against tyranny, she should resign.  America and the current Iranian regime are bed fellows in the scheme of things.

The merger of the corporations into politics is almost complete.  It may not last the night, but maybe this was all a game and the corporations are keeping score.   The NYX will now dictate global trade from a head quarters across the ocean.  This is a jewel in the crown of the corporations.

But like I said, the whole plan is doomed to fail.  People will no longer have the liesure to be so complacent, and consumerism will be a thing of the past.  There will always be room for entertainment, but price is now in ultimate flux.

It's getting Interesting

Things sure are turning hard and speeding up.  The next move will make the world wonder 'what has happened to finance when such enormous amounts of wealth are created and destroyed at such a whim?'  Silver is right back to its boiling point.  It is about to push to new recent highs.  Platinum has long been boiling over.  Brent has decoupled from WTI, which is the physical decoupling from the paper, as gold did in January.  Gold is a degree away.

The market broke its neck and died when Greenspan and Bernanke joined forces.  It had been laid to rest in the Fall of '08 after the housing bubble and equity bubble burst.  The next bubble is the dollar bubble and it will likely be an inverse collapse.  Corporate bond yields will fall, US Treasuries will rise, the dollar will become worthless and all currencies will have to be saved.

Gold and its sister metals will inherit the globe, as they should.  They are monie, and nothing else is.  Any finance will revolve around them like the earth to the sun.  As in nature, life.

Monday, February 14, 2011

Gold or Equities

Monie is making a play at buying precious metals and shorting equities.  The corporations do not want to be shorted, and Bernanke will do everything possible to keep them afloat.  This ends with the monie going all into gold, and maybe some capitulates into corporate equity/bonds.

A lot of this has to do with physical bullion decoupling from the paper price.  I wrote about this on January 7th.  The demand for silver coins has reached a new high.  Fascist dictators every where are fleeing their thrones but not before having their wives fleece the State gold vault.

The Dollar's Bubble

If the word "worthless" was uttered into a babies ear, maybe not a thought would be had, but when the word is uttered from experience, a dreadful notion takes hold.  Absolutely worthless?  How could anything be so?  Surely as in nature all items have worth in context.  Yet this remains untrue for one thing:  The Dollar.

The dollar as monie is supposed to hold four things true.  It is a store of wealth.  It is a medium of exchange.  It is a unit of account.  It is fungible.  The dollar passes the fungibility test, as we can rip it into small bits, but once the cornerstone of the argument is laid bare, that it is indeed NOT a store of value due to its fiat nature, the other requirements wash away.  If it is not a store of wealth, what account can it hold?  None.  If it is not a store of wealth, how can it be a medium of exchange?  It is not.  And so the dollar washes to the sea.

All fiat is such, but it so happens the dollar supports all fiat.  The dollar is the reserve currencie, and all debts can be paid in dollars.  The dollar holds the cup of life, as if one has dollars, any trade can be made.  The Euro is underscored by dollars, as many European banks have their debt denominated in the greenback.  The IMF facilitates loans, and those loans are denominated in dollars.  The dollar reigns over all fiat.

So if the dollar fails, all fiat fails.  This catastrophe will stop finance in its tracks for those not prepared.  As gold and its sister precious metals DO define monie, they are the alternative.  Everything else may very well wash away.

Saturday, February 12, 2011


Yesterday someone I know from Africa informed me Algeria would be holding protests today (they are, good source).  He also said Morocco would be next to protest.  With North Africa lined up to jump start the revolution, it surely is coming down the pike.

What I hope to see is the first worlders (sound like flat earthers) join in the party.  Greeks had protested, surely to no avail, but now maybe they can achieve something.  I also think it is time for the Irish to mass protest.  It is time to stop paying the IMF/World Bank our labor!

Europe and America better not sit from the sidelines on this one.  I do not mean they should start telling Africa how to protest, I mean they should protest with them.  We all know that it is monetary policy that is causing rising food prices.  We all know that economics has no room for real input costs (considering finite resources).  We should join the protests and overthrow the fascist governments of the world, all of them.

Friday, February 11, 2011

Life after Egypt

Platinum has found support at the all important $1800 level.  Silver rests easy at $30, and gold likes $1358.  I think the next big move is around the corner.  Blythe and Ben say, 'Thank god it is Friday!'

The revolutions of North Africa are likely to continue.  Algeria is setting up for protests this weekend, and a few more States are taking action.  If the wind is right, the monarchies could all fall.  Hopefully the people of the Middle East keep their heads.  They have a lot to gain, but a lot to lose.  Everyone must tread carefully.

I am very interested to see if this motivates America and Europe.  Peaceful demonstrations are proven to work, and if the people of the first world are as disenfranchised with their government's policies as they say, we may see some action.  Of course, it may be reserved for when oil hits $5/ gal.  Either way, the stage is set.

Egypt does what America Won't

Egypt just pulled off the first step in revolution.  The next is to form a Republic.  This is the tricky part.  The population is young and has no experience with a Republic.  Then again, does anyone?

The world has become a Keynsian nightmare.  The world revolves around money that is backed by nothing.  This has caused massive inflation.  If Egypt has any sense, they will start a new Bank and back the currency with gold.  This is what each State of America should do.

The only option to fight and change the system is with ideas.  The less blood shed the better.  Egypt just proved this.  What a beautiful day.

Thursday, February 10, 2011

Final Countdown

The question; will there be a final collapse of all markets before the dollar is done being the reserve currency?  There will be, but it may not look like a "colapse" of anything except the fiat currencies.  The dollar is sure to falter, as is the Euro.  I see no reason why the Sterling and Yen will not go with it.

The bonds should then take "haircuts" and to what extent should determine the subsequent currencies values.  There is equity in the bonds, and it will lose out.  What should not loose out, however, are the corporations.

Krugman, in his Nobel Lecture, said economics will allow a rise of firms.  The firms hold sway because of ability.  They will partner with the States.  The States will sell the resources to the corporations.  The corporations will produce the goods.

The people will be subsidized for their materials with some form of monie as their Central Banks will still issue credit.   They will issue them to the Major Banks, the Houses of the Morgan and Sachs.  They will loan to the system.

If this sounds similar it is.  This is the system that was underhandedly planted over the last one hundred winters.  But the dollar was not enough.  The world was at stake.  Now the world will have its own currency.

Egypt is the first major State to go.  It is happening slowly because they do not know what they want.  They have known nothing but monarchy.  Hopefully a leader will emerge that can declare the State a Republic.

Manipulation Mania!

The far reaching effort of the globalists is snatching the goods out of every pocket and cashing in.  The regime change in Egypt is in full swing, gold manipulation is in full swing, and so is the fiat ponzi in full swing.  Now is a major turning point in history.

The daily gold dump was once again made happen by proxy of the COMEX and the Major US Banks.  This is nothing new.  The manipulation will go on until it won't.  Gensler and his Goldman Team will stop at nothing to drain the gold pool dry.

The spook Number Two from Egypt will now be firmly placed into the throne, but his reign will not last.  Egypt knows as we do this is a game of musical chairs.  It will not be a few more months until the Muslim Brotherhood establish a regime in the Middle East, most likely starting in Egypt.

The debt ceiling will be raised like the effigy at Burningman, only to be sacrificially burned at the end of the festivities.  The dollar had a good run, especially considering it never had any worth to begin with.  This is like someone becoming a fan of Lindsey Lohan only to realize she is just like everyone else, except good looking.

The people of the world will be rattled to find out the lies, bu the truth is a healer.  It will take time, but people will realize reality was papered over.  Oil and precious metals are about to rise drastically in the wake of the soon approaching full capitulation of the pseudo science of economics.

Wednesday, February 9, 2011

Platinum crosses the Rubicon

Platinum is trading between $1865 and $1830 right now.  This is a huge range!  The fact that it has so much volatility should remind everyone one type of market we are in; a volatile one.

I an still waiting on gold to get up to $1440, but oil and silver are right where I want them.  Once gold springs to its recent highs the boats will be fully loaded.  Finance will embark on the new economy soon.  Reliance will be on precious metals to exchange energy, as monie.

Assange Covers Up

Assange has stated that his "bank docs" will not release any new information.  Is anyone surprised?  It is not for a lack of evidence, but a stealth and underhand move by the CIA asset.  It was all he had going for his operation too, by the way.

We have known since last year that the House of Saud was no longer the swing producer.  We had known the dogs of war fought mercilessly on the battle fields of Iraq.  He had known the world hates Hillary Clinton.  Nothing wikileaks had done up until the bank docs has been of any significance.

I admit to shedding a tear not only for those shot, but the troops shooting.  It is a horrible thing that Americans pledge to war when it is their own government running both sides of the Chessboard.  Wikileaks may continue to show the US War Machine for what it is; a total monster.

The matter is not what do they have, but what do we have.  We have all the fraud, we must act on that knowledge.  It will take people in the street like Egypt.  Hey, you think the rest of the world is trying to tell America something?

The question is not what do the bank docs contain, but how will the Major Banks react to the "news".  They may slash their equity if the documents mean a scandal, such as a mortgage meltdown if the bank does indeed to be Bank of America.  Wells Fargo also has exposure to the housing market.  If the doc suggests that the silver market is manipulated, another non sequitur, the House of John Pierpont Morgan may crumble.  In other words, there may be a reaction to the "news".

Or maybe it will be a non event, and equities will trade higher on the lack of surprise.  There really is not much time left to line up the corporations.  Oil will peak production soon.  The turn from there will only be known once we see it, but many good sci fi stories have been told about it.


Bondage/dominance/merger/acquisition.  Yes the corporations have vices.  They hope to dominate the world economy, and they are not shy about it.  Krugman issues this statement in his Nobel prize speech.  He likens the new economy as a rise of firms.  I could put that in context or I could say that is a direct quote.  I highly recommend watching his prize lecture.

The States of the world matter little now.  Industry is now the mother of invention.  Mergers of the largest financial instruments are counting down the days to where everyone is employed by the corporations, even the President of the United States of America.

The stock exchanges are coming together now on an epic scale.  London and Toronto, and New York with them.  I can not help but be reminded of Lord of the Rings.  One exchange to bind them, and one exchange to rule them all!

Coming Down the Mountain

Are they leasing gold on a weak dollar?  It appears the sellers are waiting for the dollar to fall before they "sell", or rather "lease", gold.  This would be hilarious, because they would be taking gold hostage with the dollar as the weapon.  This is like someone robbing a liquor store with a water pistol.  If the exchanges are waiting for the price of the dollar to fall before they lease, they are costing both the dollar and gold.  Such a mishandling would surely be done on purpose, for if there is one thing the exchanges know how to do, is make monie.

COMEX and the LBMA lease gold.  That is their function.  They decide how much to lease (the gold) ahead of the day.  This schedule centralizes gold's movements.  Of course there are many variables, and price can move to and fro quickly, but when a price hits, the sale is made.

This is how the organizations, the cartels of COMEX and LMBA, make their profit handily.  They decide the price action up and down.  The kicker is they are highly leveraged on the physical bullion.  This leverage could cause a squeeze on the physical market.

The economy has been papered over, but paper can't stand the rain.  A storm is brewing on the horizon.  Bernanke has sailed a ship into it.  He fights the sea.  Heading for high ground is the strategy now.  Having one's belongings in tow is a necessity.

There will be a time when the storm has come and gone.  Such is life.  Coming down the mountain will be a joyous event to reestablish culture and attitude.  We will get away from the complacent ways that makes work and play distinct from one another, instead of knowing they are one and the same.  We will fill the world with blessed thoughts once again.

Tuesday, February 8, 2011


Precious metals.............

    [shrug] smile.

What more can I say............

    [stretch] yawn.

Knowing gold is monie is a simplistic knowledge.  It is a fundamental theory of our ever broadening culture.  We accept a mind, a heart, and a body for what they are.  We like and appreciate items outside of ourselves as well, but above that is the person.  Still, the roles of our merits are established by a hierarchy.  The hierarchy's consistency is what happens to be in the real.  The weight of all things are at the whim of people, if we appreciate it or not.

If you gave a bag of Skittles to the average Joe they would thank you, rip the bag, and guzzle the dyed corn syrup down.  I would politely refuse, until you stopped offering.  There is no way I will treat my body with such visceral masochism.  The difference of the good is how it is used.  I would not use it.

So when it comes to precious metal, not only will everybody use the good as a commodity (thanks to today's technological advancements), but as money.  If you have gold, and someone is offering something for sale, you will accept that gold if it is the right amount.  You would accept it because you could turn and sell it to anyone else.  It is the most liquid means of monie because everyone and their mom will accept it as having value.

Price is dictated by dollars, and dollars are absolutely worthless.  What does that tell you about the price of all goods relative to gold?  Gold seems cheap to me, considering the housing bubble, Muni Madness, and failing fiat.  Gold may be expensive compared to a decade ago, but production has not yielded what it did back then either.  This is true for platinum as well.

Platinum has been let to appreciate, but it has much further to go.  First silver will make it back to $31, and gold to $1440.  I think silver will get there first, and gold should be to $1440 within two weeks.  Oil will still be hovering above one hundred (brent).  About oil, just to add, it is not being driven up by speculators, if anything, it is being held down!  This because the dollar is being propped up to support the weight of oil, which is the weight of the world.  Oil is the lifeblood of the economy, and if the dollar fails, the circulation stops.

No worries, we will start the heart once again, but with a conscious effort to keep it going for generations.  Fiat is not the way to trade energy and debt.  Getting a new way of currencie established will see trials and tribulations, but all things in life go through dynamic changes.  Money is a part of it.

Monday, February 7, 2011

Recent Weak Yuan Activity

The recent action in the currency market has been dictated by a weak Yuan.  This move happens when the Yuan slacks, and could be based on loose Chinese monetary policy such as a small increase in lending.  Of course this goes against the trend of an appreciating Yuan, and also against the interests of the US Federalista Banking Cartel.

Like every trade there are two sides.  The weak yuan is the dollar bouncing like water off of rocks; after a moment of air the water will be moving down the earth again.  Gravity makes it so, and gravity is a strong force.  But there is a stronger force. 

Monie acts as a current of energy, how ironic that these precious metals can do so in real life.  Technology has made precious metal a necessary commodity, and this adds to its worth.  The world that humanity has created  relies on precious metal.  This will now be so always.

Gold trades well on a weak yuan/strong dollar because it allows fiat currencie to buy more precious metal-the stronger purchasing power also causes precious metals to appreciate because more people are buying them with their strong dollars.

Of course this game of monopoly does not end with a strong fiat currency.  Bernanke wants a weaker dollar, Merkle..I mean Trichet, wants a weaker Euro, and Shirakawa wants a weaker Yen.  Soon China will have a "strong" Yuan.  Precious metals will enjoy the ride.

US Equities and the Dollar

Today, US equities moved with a stronger dollar.  The opposite has been the case since the crash of '08.  Since that Fall, the dollar has traded inversely equities, and vice versa.  Gold has managed to trade both with an outgoing dollar, as it has been able to swim upstream against the current of a "strong" dollar.  Gold has proved superior to equities because of this reliability.  Is that still the case?

People will always use gold as monie, but because corporations have established such blatant power regarded in the White House especially behind the likes of Daley and Immelt, they are reigning supreme.  Gold will always have a place at the table, as will the people of the world, but the oilgarchs have amassed incredible limit to this time.  Corporations may just be unstoppable.

If it is tax breaks or special permits corporations get their way when it comes to American business.  The culture has been made to accept this by the constant saturation of advertising.  It is even threaded into pop art.  Corporations wear a mask America can not see.

With the banking crisis unfolding towards a new design of global capitalism (whether it is capitalistic in definition or not) the world is set for change.  The change will come from activity.  Passivity will destroy the nature of humanity.  Corporations are not natural, they are mechanical.  If humanity can not recognize the separation of itself by the corporations it is doomed to repeat its cycle of self defeat.

Power should never belong to a force outside of humanity.  This is akin to accepting another species way of life.  We do not sleep like cows, because we are not cows.  Humanity's culture has been made separate by personal time spent not painting a landscape, but doing make up.  Not writing a poem, but surfing pornography.  Life is self fulfilling, like it or not.

We have chosen corporate rule since the Federal Reserve Bank was installed as the money issuer of the United States of America.  We can change this.  We must be the change we wish to see.  No one and no thing can dictate otherwise.

Saturday, February 5, 2011

When Walled Street Cyber Attacks

If there is to be a strike in America via Stuxnet, it is likely to happen on an exchange.  I think that Stuxnet would be the perfect proxy to blame for an economic crisis.  What if Stuxnet shut down the COMEX during trading?  How would anyone settle gold prices fairly (sarcasm)?  The crisis would be used as an opportunity to change the manipulation and to clamp down on markets.  It also may be too desperate an attempt to succeed.

I think the US and its allies have become increasingly desperate in their geo-political chess moves.  Ousting one blood thirsty dictator in Egypt is a bold but desperate move.  Now if Stiuxnet shuts down finance or another source (maybe the Internet itself) the economic crisis could take a final and decisive turn.

With currencies drowning in a sea of paper, the system is on the brink.  There will either be more chaos to pin the problems on, or the system collapses under its own weight.  Blame comes in handy for those in power.  e should be careful as to where the blame is pointed.

Friday, February 4, 2011

Yes Virginia, there is a President's Working Group on Financial Markets

Don't believe it?  Search the term.  You will find out the President's Working Group on Financial Markets is real.  They were established by President Regan (spelling is correct, see Don) in '87 after the crash, so to stabilize the markets.  This very illegal privilege has been used and abused to such an extent lately that it is obvious to even the untrained eye.  Want to learn how?

Today precious metals got truckin' and then they majically stopped when the miners turned down.  The miners stayed down, even after precious metals found support and ticked back up.  So ask yourself, if spot prices affect miners, do miners affect stock prices?  The betcha!

Barricks Gold Miners has one of the largest reserves on the planet.  When their equity falls, it affects their reserves.  When their reserves are affected, so are everyone else's.  So that is why Bernanke/Geithner top tick miners.  They are doing everything imaginable to keep gold down.  They probably have even raided their Mamas jewelry boxes.

On the Brink

Platinum had another explosive morning, and tested its recent high of $1840.  I have long said that the big bang occurs when platinum moves from $1800 to $2200.  I realized this months ago.  There is no resistance in between $1800 and $2200.  This move will be like when silver went from $20.92 to its recent high.

With the Middle East on the brink of collapse, the move could happen at any point.  I wanted the levels to be as follows before the move, but we are so close, I might have to ready the cannons.

Platinum at $1800...

Oil at $105....

Gold at $1440...

Silver at $31.

Those have been the numbers I have been calling for months.  They are almost lined up.  If something big happens the Trinity and oil will run for the exit.  I think it will, and it could be today.  If Mubarak announces he is leaving, then the Muslim Brotherhood takes over.  They will jaw at the other countries to scrap the Israeli peace Treaty.  This is big because Egypt has been one of the few countries to put up with Israel.

I imagine this will happen after the markets close to avoid financial turmoil, but of course it will do anything but.  Futures will go haywire.  There will be a rush to the coin shops.  By market open Sunday, the landscape will be unimaginably different.  This is why Mubarak has his gold safe in a vault far away from Egypt already. 

I am going out on a limb here, but Mubarak has likely known a Friday would be the best day to step down to avoid being responsible for volatility.

Thursday, February 3, 2011

The Dollar's Defense

Interesting move this morning:  the dollar rises and so does the Trinity.  Nothing new there, but still let us analyze how.  The dollar has basically blocked oil from rising.  Oil is not a currency, no matter how valuable it is.  It will always be a commodity.  Try carrying it around to use.  Not going to happen.

So basically the dollar "allowed" the Trinity to rise, but not oil.  Now Blythe and Ben are tag teaming the Trinity.  They are out numbered and will fail, but it is interesting to see how they can block a further rise in oil.  I would say this is the smartest thing I have see from Walled Street in a long while.

The Trinity Bounces

If I owned a club, and fiat tried to get in, I would say to them worthless currencies, "Bounce!"  Then when I walked past the dance floor, after giving the Trinity a smile, I would turn to my friends and wink, "Bounce..."

Every time the dollar rebounds it sends the Trinity flying, why?  Precious metals are real monie, and the exchanges are figuring this out.  So when their is a flight to safety, or rather, monie, precious metals are inheriting the area that the dollar once occupied by default.  Now when people want out of equity and into monie, they are buying gold and silver, even platinum.  It is the new hedge against risk.

What is risky about holding physical?  Will you tell random people you have it?  Will you not lock it up safely?  There is no other collateral in the world except it.  Any paper contract has to be redeemed, and no business partner is perfect.  Even the US government once defaulted.  Who is to say that will not happen again?

 It so happens that what comes up must come down.  The Trinity is no exception.  Along the way, people make moves on the Trinity like men make passes on a skirt in Miami.  Some are sellers, like team Blythe and Ben.  Others buy it up.  This causes major volatility.  The sellers would not have a chance in the game if it was not for the buyers, and unfortunately, the opposite is not true.  This is why so many gold bugs issue warrants on the House of John Pierpont Morgan.

This morning the Trinity popped off before Blythe could get to it.  Think someone is trying to say something?  It is true that no one wants to drop the proverbial ball, but the first one to do so gets to make a rush for the exit.  The waiting game continues with all eyes on the door.

Wednesday, February 2, 2011

Big cap digs in; Bernanke buys penny Stocks

Big cap corporate has balanced inflation with unnoticeable success.  Today, it was Disney that took the baton.  Disney is up 5% in the last two days.  Soon it will be another Dog of the Dow to bring home the bacon.

While the world shakes, rattles, and kicks the can down the road, Bernanke is taking it easy with his feet on his desk and a cigar in his mouth.  He bought the F'n dip this morning and his semi conductors are doing fine, thank you very much.  From across the sea Shirakawa sleeps with his ETF portfolio tucked safely under his mattress.

These two along with other fascists are hoping their printing presses will roll the debt into corporate equity, and corporate bonds.  Krugman is not shy in saying the firms will rise after the dust clears the economic landscape.  With equities rising on the weak dollar, should anyone be surprised the end result may be a corporate empire?

Tuesday, February 1, 2011

Egypt and Oil

Kissinger said, "Egypt is the key."  When referring to happenings, he is always cryptic.  What did he mean?  Is there a deeper motive behind the political musings of Kissinger?

How ironic that democracy started with Egypt.  Now once again, Egypt over throws its monarchy and establishes a democracy.  How much of a democracy is yet to be seen.  Back when they did it before, and expelled the Israelites, Moses or Ahkenaten depending on the language, the world was unmade by man.  Now there are other worlds at play.

I thought WTI would get to around $93 by now.  It may or may not right away.  One thing to note about all the finite resources is that they take turns moving up in price terms.  I think that Egypt is a cover to for the rising price of oil.  Yes the people are hungry and riot with cause, but I think the oilgarchs are being opportunistic.  They saw an uprising, and negotiated the terms.  They will continue to use the Middle East as propaganda for a rising cost of oil.  This is a front shop, as the price is due to decreasing supply (or at least a production plateau), rising demand, and inflation from the zero interest rates around the globe.  With Obama forcing regime change in Egypt "Now" anything could happen.  It appears Israel is going to be one of those anythings.

When Ahkenaten was forced out of Egypt, I am sure he was upset.  What followed was his only son was killed and another took his thrown.  By this time of course he was far away.  I am sure he cursed the Egyptians that forced him out.

Does the lineage of Ahkenaten remember this?  Do they still hold a grudge?  If this is true, it is very symbolic that Egypt has been thrown into chaos.  Whatever happens will be a key into understanding what the global politicians have in store.

Platinum takes Off

Platinum had been still above $1800 like a spider on prey.  Something may have just tripped the wire, and that something is time.  The other levels were set and the trap sprung.  Platinum will lead out ahead of gold, silver, oil, ahead of the dollar and all fiat for the last lap of the race to the bottom.

Platinum's production plateaued in '09.  That is a long time when demand continues to surge.  It is not used as bullion as much as it is an industrial.  It is hard to mine, it only grows with sister metals, and is more rare than silver.  Platinum, like silver and gold, is indestructible and lasts for basically ever.  It too is the perfect wealth preserver.

How many races until the masses catch on and the average Joe owns precious metal?  Well, the time may have dawned on the silver market.  Demand for silver is higher than ever.  Gold is the popular one when it comes to using it as monie, but platinum may have its time next.

More the Same

Asia loves gold, Blythe hates it, the dollar cowers in fear, oil wanders around like a drunk looking for its shoes.  Same as it ever was.  The dollar has equities up, the banks are making another desperate move to loot their shares, Treasury debt is spiriling out of orbit, same as it ever was.

China is flexing nuts, Bernanke and Geithner are nowhere to be seen (Bernanke's aniversary is today by the way), the Middle East struggles with peace, the weather is blamed for bad numbers.  Americans grow weary, Egyptians grow angry, Europeans....well what the hell are they doing?

Same as it ever was.....

Panning for gold, checking the couch, shaking the register, same as it ever was.....