Thursday, March 31, 2011

$1440 and $38

We saw gold touch resistance before easing, and silver made that $38 look easy.  Platinum is still lolly gagging.  Oh well.  Like I have said, if platinum breaks out, so goes the levy.  Blythe and the rest of them will do everything imaginable to keep platinum from moving past $1850.

Which is better?  The dollar...the euro...the dollar...the euro....who cares anymore?  The dance is tired.  It is a logical fallacy to compare one with the other, as both are used up like old wash rags.  Both are fiat, both do not meet the metric for real monie.  The bell is about to sound, and when the combatants step into the ring, it will be a knockout quick like Tyson used to make.  Very close now, we are very close to the next move.

Wednesday, March 30, 2011

The Long Range

March has seen the range of precious metals tested over and over.  Recently the bottom of the range has been dragged through over and over.  The technicals are pointing to gold and platinum to test the top of their ranges.  Silver is already there.  The dollar has never looked worse without making a new low.  I expect one shortly.

Look for gold to move back to $1440 by the end of the week.  I think platinum will be back at $1800 then too.  Silver may push $38.  Oil may break out from $105.  This all means we are very close to seeing the next move in what will be an epic breakaway from all things finance.  Equities may try to hang on to the Trinity's thunder, but picking stocks is a hard thing to do in this environment, and the main reason equities would respond is if the dollar moves lower.  This metric is tried and true.  Is there any other reason to own equity other than to guard from dollar debasement?  There are better investments.

The long range of the PMs has grown old.  The word has spread as to what the future will bring.  Not only are specs piling into the trade, but physical accumulation is still strong.  The move will happen soon, and it could be this week.

Tuesday, March 29, 2011

War is Peace

Barrack Obama won the Nobel Peace Prize, so he does not go to war.  He liberates, and stuff.  Yeah.  Just a little more double speak from the Commander in Chief, and a little more double think for all of his subjects.  People's cognitive dissonance must be in overdrive right now.  I wonder if people tell themselves to, "Shutup and sit down" when they themselves question his highness.  I wonder if anyone's splinters in the the back of their brains are causing them to scratch their skulls in confusion.  "War is peace....war is...peace....?"

It is sad, and I do not really want to think about it.  I would try and be empathetic, but I have no idea how people can justify any war.  Unless provoked, but just who is the aggressor in this case?  France is so gung ho about it, I am wondering what the show on the boob tube that rivals "Dancing with the Stars" is that has distracted what I thought t be an informed populace?  Hasn't Jerry Lewis gotten old yet?

The Fed continues to chastise American civil liberties.  Congress specified in the constitution that monie is gold and silver, and only such is legal tender.  How far will Bernanke drag we the people under the bus?

Russia and China are not having any of this either, and it looks like a line is being drawn in the sand that will pit east vs. west.  Build a house on sand and this is what you get.

Monday, March 28, 2011

When John Henry

One of my favorite quips over the years has been, 'If gold is manipulated on the downside, what makes it go up?'  Well, there are still fundamentals in the market, and I would say that they are more important than ever.  Yes it is extremely easy for the Majors and the Centrals to take gold down, if it is by moving gold to a reserve from an asset, which increases the supply and lessons the demand, or outright shorting the trade.  At the same time, there is a very finite amount of the metal, and it lessons everyday.

People are very able to call gold's progression.  The reason is they take into account the fact that it is manipulated.  We are ready for down days.  We know the siren song.

The long run is what matters.  Nit picking a range is fantastic, but the real value lies in the absolute.  Day trading gold is one thing.  Owning it is another.

Nickle and diming gold is fine and dandy if one feels like sweating through the day.  The other alternative is to know the basic supply/demand fundamentals and preparing to allocate cash towards the asset at the bottom of the long range. 

$1407 has been the support for weeks if not a month.  If platinum's range is understood, and it is known that the two correlate (as well as silver) then one would know that we were not to break out of this range.  This is why one must account for all three metals.

The dollar is a driver, but as the trends have shown, gold trades well on a weak Euro as well (the metric Euro vs dollar is simple, but it will do for now).  The main driver is supply/demand.  Banks through proxies of GLD, fractional reserve lending (all dollars are accounted for with gold reserves, even though the leverage is 100 to 1) and unaudited tungsten reserves, have created a false sense of supply.  This is one reason gold is trading for $1000 instead of $10,000.  So when the shoe fits, wear it.

Soon the fiat ponzi will crumble into tiny pieces.  It will because it was based on promises, and those promises are slowly unraveling.  There are too many charades now.  There is too much pressure on fiat, and the debt is crushing all leverage.  Real actions like earthquakes and hunger are ravishing the people of the world.  The lie of fiat can not save people from real problems.

Yet the unraveling allows the opportunity to change horses.  Finance has one last chance to remember what monie is.  The definition is for all to see.  Fiat does not fit.  Gold does.

We tested support today.  We may test it again tomorrow.  Deflation and debt destruction is in full force now.  Inflation is still falling from the sky.  The two have promoted a 'steady inflation' thus far.  Gold has 'steadily' benefited.  How much longer this will continue is any one's guess.

There will be a change in the trend.  It could be higher interest rates to battle the Fed's inflation.  It could be QE 3 to battle real debt destruction; fundamentals such as earthquakes.  Gold will rise with a rate hike, as this would show the dollar can not hold the world on its shoulders.  QE 3 would also be bad for fiat, as it shows the system is still weak.  Whatever way it goes, the best bet is a steady rise in gold.  Of course, there could always be a catastrophe.

Ireland wants to give bond holders a haircut.  Japan needs so much money it is sad.  America is a financial train wreck of a collapsed housing market, unemployment, and many other ills.  Anything that hits the fan will make a mess.  Gold is a reliable shield from any given storm.

Sunday, March 27, 2011

Dollar riding Shotgun

This week it appears that the Euro will take center stage, and the dollar will move over.  The Yen is along for the ride as well, and its baggage may weigh on all fiat.  Interesting that this happens at the same time that the debt ceiling will be breached.  Will a Euro catastrophe divert attention away from the dollar long enough for the US Treasurie to convince Congress that debt equals sustainability?

It is a simplistic view, but it appears that the Fed and Treasurie have only one measure of action to combat what was a poor use of funds.  Increase the debt level; continue to add funds across the board.  What is interesting is that they fail to see that this is not wealth creation.  They think that they are creating opportunity, because the loans they make will spur growth.  More than anything, the are fighting fire with fire.  The problem is that the house they built is made of wood, and it is burning down.

False paradigms beget fallacies.  Continuing with these policies is total madness, because it is these policies that created the problems in the first place.  Also, if the Euro struggles, does the dollar then become a better investment?  In comparison sure, but once again, why should we compare such with such, when both are fallacious?

Since fiat is an undeserved asset, the rubric is to shun all fiat.  Once fiat is off the table, what is left?  Equity and bonds trade in such, so they are off with it.  All that is left are tangible goods.  I will not deny corporations of their goods and services, nor governments, but the instrument used to measure them is not feasible.  Without measure, there is nothing.

This is what is to come.  Yes it numbs the mind.  Yes there is no fine answer.  Yet this is where finance has led us.  To wit, I do fear a Euro collapse that sees the dollar rise to a level that leaves it as a one eyed king among the blind.  Now that the Yen is as good as nothing, this scenario is very real.  This case would be great for precious metals, as last year's Euro panic showed.  Yet this would be where the SDR would step in, as it is well known that the dollar by itself can not sustain finance alone.

The tell will be platinum climbing the way it did a few months ago, from the $1700 to $1800 range.  Very few people will notice, as it appears very few people watch platinum.  Platinum is the real canary in the coal mine.  To know what direction this week is heading, watch for platinum to break out.  The other scenario would be for silver and gold to test support.  Gold's support is $1407.  Currently, both silver and gold are smack dab in the middle of their respective ranges.

If there is a deflationary storm, and gold tests support, platinum could shake a little lower.  This week will be interesting, because most fundamentals were thrown under the earthquake/tsunami.  Japan's problems will exacerbate Europe's and America's.  Let's wait and see what tomorrow brings.

Friday, March 25, 2011

The Tipping Point

Gold and silver have come back into the middle of the range, while platinum still sits a hair shy of what will be the jump off point for all three.  With the world waking up slowly to the world's worst man made nataral disater, and with the corporate enterprise known as the US government running roughshod over all other States that step in its way, it will not be long until real monie matters.

Portugal, Ireland, and now Canada have admitted failure, and it will not be long until the contagion hits bigger populations.  States are having a hard time, and all the while the Federal Reserve backs the corporations with its infinate money lending capabilities.  Of course, this matters not, as the dollars leant have no measure of standard.  Soon the world will be forced to recognize what fiat is.

In the end, all will be shown in truth for what it is, but the waiting is the hardest part.  Three of the four important figures in finance are ready for the break.  Once platinum hits a limit up, the fire will light the world.  This is the tipping point.

Wednesday, March 23, 2011

If something Breaks

Platinum is at the bottom of its range, so even with gold breaking through resistance I am not getting excited.  I think gold will trade around $1440 for a few days.  Silver is making the best gains right now, and could push $37 by the end of the week.  This would all drag platinum from her sleepy slumber, pushing her out of bed and into the $1800 range.  Oil will continue to rise.

If platinum has energy, and moves to the top of its range, then the whole complex could make a move higher.  Wait on platinum to guess when the Next Move will occur, but it is close.  Soon gold will be hundreds of dollars higher, and silver will once again be the best investment of the year.  OPEC has no problems selling oil at higher prices, but then again, why would they?

Tuesday, March 22, 2011

Catching the PPT

Who sells the massive moves?  Nike, Apple, Cisco, Newmont; huge corporations have had equity slashed reminiscent of the flash crash in an ordered progression over the months since May 6th.  There has been many corporations that have flash crashed.  The amount of capitol is huge.  What is causing these unorthodox moves, if not Gaddafi himself selling his market portfolio?

It is not insider trading that has explicitly caused the massive loss of equity.  If that ever happened the SEC would be forced to act.  No, it is a different group.  You may blame the algo machines, or a choice major bank, but all of those that collude and this leads to the top.  Yes, it is the President's Working Group on Financial Markets that are the big sellers.

They do it for two reasons.  It allows money to come in behind their sell and get a low buy position.  This can be done to appease governments like China who have been patiently waiting on the sideline while the US Empire collapses on top of itself.  It is also done for private investors like Warren Buffet.  In fact, the fall of '08 should have been stopped by the PPT, so why wasn't it?

Buying opportunities are hard to come by, unless you are a black box bank.  The PPT (Plunge Protection team, abr.) does just that.  And they get to make wild profits along the way.  How the glory!

Monday, March 21, 2011

Barack Takes Africa: Akhenaten's Revenge

Was the one reason that Barack was bank rolled by the Major banks the fact that he is of African decent and this could justify his move into Libya?  Considering he is their "brother"; so says Gadaffi.  I shall not go that far, but I will say McCain would never get away with leading an assault on Africa in the same manner.  Whoever spear headed the move into Africa was going to be of African decent.

Millenia ago, a Pharaoh was kicked out of his land for creating a one god system.  Akhenaten toppled the pagan system and instilled himself as god.  The other priests and people who were the pagans could not have this, and it was not long before Akhenaten was thrown out.

Now Africa is needed to move into the 21st century.  It has minerals, elements, and resources that the world will rely on.  The oilgarchs have taken up Akhenaten's revenge.  The goal is to take Africa.

Once again, is this the reason that Barack was a chosen son of Brzezinski?  Of Kissenger? Who knows, but it fit in perfectly with their plans, and since they have been the planners for so long, they may have chosen him accordingly.  There are many other things to consider, but Barak has done the bidding at every level.  He was always the perfect candidate for them.

Sunday, March 20, 2011


Madness has crept upon the sleeping and turned the tables severely.  We are all mad, shown creatively or not.  People have shunned this.  Now they will learn how to accept it.

Japan will soon be deserted.  One of the world's busiest and most important hubs is only just downwind from one of the worst nuclear disasters ever.  It will be a ghost town.  Massive deflation will hit the Japanese industry.  The trickle of people moving now will turn into a rush of tens of millions.  Many will never visit their homeland of Japan again.

A foremost nuclear disaster expert, Chris Busby, said, "Northern Japan is no longer habitable."  The investigative journalist Greg Palast said, "One hundred thousand people will die in direct consequence of this disaster."  His number might be small if action is not taken soon to help the Japanese people leave.

Japan may have been inhabited by people for 500,000 years.  It is sad that it will be abandoned like a sinking ship.  Its culture has brought great wisdom over the millennia.  It will stay intact, if only elsewhere.

Japanese will move to America, Europe, Australia, and China not to mention choice other places.  They will fill the depleted houses.  They will buy new clothes and cars.  They will be thought to reignite the bubbles, but only however long the Yen remains on life support.

Knowing that the Yen is on its death bed, I am sure it would want to be given its sword.  If it was a cognisant being.  It is not however, and the people of the world will try to keep it afloat.  As people we should be helping the people of the State of Japan, instead of focusing on the currencie benefit.  Yet the financiers focus on how to benefit from a crisis, and so they will go about this epic one with due vigilance to save the fiat.  Have we offered to fly everyone out of Japan?  Sail out of Japan?  No, but the US military fled the bases.  If our culture and its government is altruistic, then why has the only focus been the G 7 saving the Yen?

Altruism is being applied by a financial system based on fascism and falsehood.  The dollar, as the reserve, is worthless, because it trades for paper.  Its little bro Yen is just the same.  These things are not real.  So why are is the government acting altruistically on its behalf, but not o the behalf of the people?

The oilgarchs only think about money, and so thoughts of panic and problem solving has been relegated.  Cui bono?  Over and over.

Alaska is also under the radiation cloud.  The scenic and wild Alaska I am afraid is no more.  The benefit to this crisis will be that digging for oil will not harm the environment, because soon there will be none.

There will be panic.  Real panic.  As people die before one another, the bomb will remind like a sliver in the mind.  Northern Japan is uninhabitable.  Hundreds of thousands will die.  And this is not the only war being fought.

North Africa is a mess of Vietnam proportions.  The red, white, and blue coalition is out to put their foot in the door of Africa.  The State will be saved, and preserved.

The US is now fighting three wars.  The UN agreement was not unilateral across the world.  Many States have problems with attacking others preemptive, but there is no way to go back to the bargaining table; it has begun.

Unless a divine madness takes hold of all at once, the real madness we all feel everyday when we wake up, wonder about the way, and contemplate heaven will not be very applicable.  Well, who am I to judge.  Maybe this is how we all find happiness.

Friday, March 18, 2011

King Dollar!

Where to begin?  Gold stayed within range today, moving from middle to resistance to finish in between the two, nothing surprising there.  Silver is breaking out going into close, and that is a nice tell for what to expect next week.  Oil remained above $100, which is not surprising given the double speak that is the Libyan peace/war movement.  Japan remains "Operation Critical", putting the people of the State under dire stress.

Northern Japan will now be uninhabitable, says one Doctor Chris Busby, who is the foremost expert on nuclear catastrophes.  Greg Palast says one hundred thousand will die due to direct complications of radiation poisoning, not to mention the millions that will undoubtedly contact cancer during the next millennia.  Nuclear is done as a viable energy option.

I already had oil doubling by summer due to supply/demand strain and dollar devaluation.  Now I do not think $400 is out of the question by summer.  I know that is a little high, but what is a price target when denominated in dollars?  Precious metals will trade bullish on the back of the oil trade, and this whole move may be what sinks the dollar.

The dollar is now, again, the carry trade.  This is a problem, because the carry trade furnishes risk.  The dollar is also supposed to be the risk off trade.  So now it is the risk on risk off trade.  This is an oxymoron.  The trade will not last.

The Yen is dead, except for the dollar continues to play pretend.  The financiers can not have their cake and eat it too.  It is going to be, 'Save the Yen in the face of a dollar crisis' or 'The dollar dies, and a new currencie is born'.  This may be somewhat linear, but I am still digesting everything that has happened over the last month.  This is The Whiteness, after all.

Wednesday, March 16, 2011

The Dead Fiat

The Yen is done.  It is no longer a currencie.  If you voted for the Yen in my first poll, congratulations, you win!  So besides the obvious problems, there is no more carry trade.  Well, I suppose the dollar is the carry, but the dollar is not reliable.  At least I do not think so.  I think that in this environment, when the carry trade is supposed to be the most liquid way of trading, gold reigns supreme.  The electronic changes will have to digest this, but if a fiat currency falls off its horse, the whole army is vulnerable to the same.  And if fiat is mortal, then it can all die.

March's new Levels

New support at $1398.  $1407 will still play a role, I assume it will be the middle of the range, and I do simply because it was the old support.  I think resistence will be the old middle, which is $1428.  This is a slightly tighter range than last time (EDIT:  The range has loosened with support moving to $1390.  Also note the recent move that has the dollar getting dumped before chasing gold.  More on this later), but it will be viciously more volatile.  It may also only last three days.

I assume gold is set ready to explode in price, if there is any substitution effect in terms of demand and supply of iodine and any other real goods.  The role of oil will be epic, as the swing producers are currently facing tumolt.  With nature happening all around, the sky is the limit for gold.

The dollar has shown strong demand, but has been met with almost equal supply.  The liquadation is of epic proportions.  Unless M2 and M3 are tightenened somehow, the bottom could fall out of the trade.  There is plenty of supply for digtal dollars right now.  The world is awash in the liquidity of fiat.  It is an open ended trade.  Of course, one with no support.  It is like walking on a bridge that is old and without repair over a vaste gorge.  Why chance it when there is eden beneath your feet?

With the dollar looking weak, equities would seem a fair choice, yet they look weak and expendable..  When the market closees the bids are there for an up move, so why are the markets not moving up?  The bids are transparent and the buyer slips it out before a sell hits.  The manipulation comes from the ability to control both sides of a trade a la "black boxes".  They were jacked up by Bernanke's President's Working Group on Financial Markets.  Now the funding is losing its luster, and there is panic selling.  This will tighten M3, but probably not much.  Could the Dow pull back even to gold?  This is the long term scenario, and I would not be surprised to see lower equity.

The corporate monie will hide in corporate bonds, while the rest tries to fit into the precious metals market.  Fiat will be burned for a source of energy, and will not match the flame of oil, and the technology and monie of gold.  It will be a route.

Tuesday, March 15, 2011

Ides of March

There is disaster.  Will there be a better day?  Sooner than later?  All we can do is hope for the best, once we are prepared.

Who can be prepared for such disaster?  Will there be any lessons learned?  Qui bono?  Can society improve its culture to take notice of life's fragility?  Will it be the corporations who directly benefit from the ongoing disaster in Japan?  Or will the Federal Reserve, a proxy corporation, be the main benefactor?  Or will humanity breakaway from the shackles of the Hegelian dialectic, and make decisions for themselves?

I think finance and economics with it is about to change.  The paradigm was forced off a cliff by the bankers who have sold the world, but nature has reminded everyone what really makes the grade.  Finance will now be done realistically; complicity has been taken off the table, and with it, fiat money.  Will Shirakawa's investment in ETFs help rebuild his State?  Will Bernanke's loans to the Major banks refurbish the wealth destruction of the last hundred years?  The dollar has died, and with it, Keynesian economics.

A hallow day is today, for reasons of history and nature.  The moon is close to us now, and is influencing our attitudes.  Today is also dedicated to the moon by the Romans; how ironic.  It is also the day Julius was murdered.  A historic day indeed.  It is also now part of the continuing saga in Japan, a story that hopefully will end soon.  

Even with the horror, the world turns, and finance continues.  US equity bottomed at the start of the day, pointing to a bullish trend, and the precious metals have been acting bullish since there mid day drop.  What is in store for the dollar?  More printing, and more debasing, from both sides of the fiat aisle, as Japan needs liquidity, and the dollar must stay the most liquid investment of all or else it loses its risk free slogan.

Will there be a king investment after the markets take the shock of a failed energy source?  Nuclear is no longer viable, and so oil really takes the reigns of the economy.  There will be only one thing traded for oil in the future.  That will be real monie.

Precious metals have proven themselves a store of real wealth throughout the economic downturn, and there is no reason for that to change.  They track oil on the long term trend, and with oil at its most bullish in its history, precious metals have a drastic amount of leverage to take.  The economic system is about to realize that leverage needs to be made in precious metals in order to trade with oil, and other necessary goods. 

It could take only a week, or it could be a rather long month, but before this summer, oil will be spiked up towards the $200 per barrel range, because of demand/supply issues, and because of fiat debasement.  This will have precious metals trading along side it, as the oil barrons will want real wealth to trade for theirs.  Buy the dips if you can, but in the long run, invest in what is real, and try not to worry.

I will add that for all my friends who read this blog, please begin to take a regular dose of seafood, which includes kelp and other sea plants.  These foods will regulate your thyroid, and detour cancer from attacking if radiation is present.  Also I would like to say that I hope for the best, and may mercy be had for the Japanese and anyone else who could be affected by any radiation.

Critical inflection Point

Whatever the next move is for the Trinity will tell how it will respond to the disasters in the short term.  I am still long gold, physical.

Monday, March 14, 2011

There's $1407

Gold touched $1407 but more than anything I am still cocerned with the safety of the Japanese and everyone that could be affected by the nuclear meltdown.  It also seems like a brushfire has turned into the fire crowning when concerning finance.  The market was already so fragile.  This will not end well.

Future's Fate

As this disaster continues to dstroy the world around it I can not help but think about how the economy will end up.  Who could ever benefit from such a travesty?  Well, there will be a future, like it or not, and there will be an oppurtunity for a new day.

Nuclear technology is something that needs to be done in a conditioned environment.  How many palces on earth are there with stability enough for a plant nuclear?  Not many.  The future of nuclear should continue to be explored because another metal may prove to not have such high levels of radiation, but its use should be seen as unreliable.  Besides, its long term EROEI is negative, so it is not a loss.

Yes we have entered peak oil and yes oil will be continued to be relied upon like no other energy source.  It will continue to rise in pice, and with all governments spending their ways out of crisis upon crisis, currencie devaluation will also increase oil's value.  Oil will be more precious than we know sooner than later.

And oil will trade for precious metals.  Maybe by proxy of a paper IOU, but the proxy will be redeemable in such.  It is the only proper way to facilate trade; with real monie.

Japan is burning and the Yen with it, but this stress will not help the dollar from the clutches of Mid East protests and Federal Reserve devaluation.  The world is tied together intamately.  All things  must pass, and future is passing with fate together into the night.  We may ask where they are going to.

Platinum's Elasticity

Platinum's elasticity comes from the fact that it is a small but tightly controlled market.  The price can be altered in a wide range without too much notice.  The price is already high, so there are many substitutes for its industrial purposes.  This elasticity is what is used by Central Banks everywhere to prop up the markets.

If the world's largest money managers, the Fed and the Bank of Japan, wanted to make sure to put a floor under equities, they could make money by...

1a)  Moving platinum from Reserve to Asset (on the bank's balance sheet), essentially a sale or lease of platinum

1b)  Spin loans from platinum's sale/lease

The equity is now created.  This first step is bullish for platinum, as investment is put into it.  The next step is to:

2a)  Sell equity/stock

2b)  Short platinum

2c)  Return capitol

3)  Buy more platinum

The second step is where the price of platinum would decrease, as it is being shorted.  The third step is not only bullish long run, like the first step, it is bullish short term as well.  Even small demand trumps supply now, and since the platinum production peaked in '09.

The elasticity that is brought out in platinum's small market is being taken advantage of by the central bankers.  They know how much leverage they can generate with small investments of their fiat collateral.  Using the leverage, establishments like the President's Working Group on Financial markets is able to play with equity/stock, and put floors in the global exchanges.  The end result is of course an increase in the price of platinum, as supply is steadily decreasing.  If any other big monie comes into the market, the game could be taken to a whole new price range.

Sunday, March 13, 2011

Gold next Week

Gold will test support at $1407 Monday, but will end NY trading around $1412.  It will move slightly higher in Asia, and will close NY at $1423 on Tuesday.  Wednesday will see gold to resistance at $1440, and it will likely break through Thursday in Asia.  Friday will likely have gold in a new range, above the current $1407 to $1440 one.

The next range could be dramatically wider than the current.  It could be from $1440 to $1650, but realistically, it will test support somewhere along the way.  The range will likely be $1440 to $1510, with a pause to test support a few times at $1510, before the push to $1650 starts.  Once it gets started, $1650 will only be a few short weeks away.  We may not get there by the solstice, but  maybe by fool's day.

Neo Keynesian Gold

Will Japan's earthquake and subsequent nuclear problems affect the price of gold?  You betcha, but maybe not in the very short run.  I will tell you how I have been thinking through this.

First,  going into the close I was not surprised that the Trinity sigma'd into the middle of its range.  Then I thought with it proportioned to move down that Monday would test support, but yes, world events make all the difference, and when but a disaster is a better time to buy precious metal, the monie?

Next, in the long run, I think that nuclear is going to not be the leading way to make energy.  There are too many problems, and besides, its long term EROIE is negative when considering storage costs.  So oil in the short run gets another boost.  Since gold and silver trade with oil, the correlation will send precious metals higher, putting more stress on the dollar, and bonds.  Equities will continue to inflate at the heels of the Four horsemen as the great fiat ponzi collapses around the giant skeleton of culture and society.

Is now the time to go long solar?  If you mean to put a few voltaic  panels on your roof, absolutely.  Maybe the large corporations can facilitate plant production, but more than anything, look for solar to be done best at home. 

Re'al Monie

First my thoughts are out in Japan with the people there, and for that matter, anywhere that could be affected.  The country has a few reactors that have melted down.  If any explode, which one has, may the gods have mercy on our souls.

While listening to Jim Rickards on King World News I realised that Ben Shalom Bernanke thinks he is a financier.  I had always thought that he viewed himself as an academic, but because he is actually misinformed, he was led astray.  Now that I understand that QE was done to perpetuate the Fed's balance sheet until the wheels fall off I know that Bernanke is trying to make money.  How did I not see this.

The Federal Reserve is the world's biggest and most important corporation.  It finances all the other corporation.  This is why ending the Fed might end the system; the Fed looks to be the Chief beast.  Kill the Fed, and kill the destroyer.

The fog of war hangs low and in the dark of night we speculate the dollar could be substituted en force by Yuan, or rather gold and silver.  This reigning in the Fed, but unleashing another corporate fiat to take its place (however backed in "gold").  Once again, this is why ending the Fed is so important.

So if the question does Bernanke view himself a financier or academic is worth noting, but at the end, it matters nought.  He is running QE all the way down the line, because he has the stock to roll the balance sheet.  The Fed has more liquidity than the world can deal with.

But remember, this is all an illusion.  They have no power.  The power lies in real monie.  Real monie starts the fiat ponzi, and ends it.

Friday, March 11, 2011

Support tested Twice

Gold has now tested its support at $1407 for the second time, responding in an absolute bullish way.  So although I thought it would test it again because usually gold will test support three times before breaking back to resistance, the trend seems to be pointing at moving past the middle and up to resistance at $1440 now.  Once the price is back up there, there will have to be some news to bring it down, and I think the news will be bullish for gold, as the fiat system remains to pull economics into a shallow pool of water like an alligator tackling its prey.  The core problem of finance is that gold does not officially back the system, so banks cheat and trade paper as though it is worth something.  When the hot

Thursday, March 10, 2011

Back in an Uptrend

The thing about knowing that gold trades within a range is that you get to test support.  If one knows support, one knows the buy price.  Support is at $1407.

The top of the range, what is called resistance, is $1440.  We will most likely move to the middle of the range tomorrow, and then test support first thing Monday of next week.  Then it will find the middle, $1425 let''s say, before we know its next move.  Testing support is hpw the game goes.

I would sit back and see if support is tested once more.  If it was I would make a position at $1407 that was half of the cash I wanted to spend.  Then I would see if it tested it once more, for the third time.  Gold often tests support three times before moving to its resistence level, and considering the volatility in the global markets, I am sure it will this time.

Long term trend is still in line.  I want $1650 within the month, and I think, as I have often said, that breaking $1440 with authority will trigger the next move in all things of real value.

Plunge Protection Portfolio

Platinum has pulled back out of no where, and it fell below its medium term support level of $1800.  This made gold touch $1407, and silver came to $35.  Equities fell out of their seats, and the bear shorts had their day.  Bernanke's PPT from the President's Working Group on Financial Markets may have saved the day for now, but they were forced to unload their shares in Hess and SLW.  How many shares does Geithner have left after taking silver through its first ten year bull move in he Fall of '08?

I think that the President's Working Group came into the market at the bottom of the Fall of '08, and the Spring of '09.  I think they bought a lot of corporate equity, especially in the miners, and more towards the former than the latter.  I think in Spring '09 he invested in the corporations that the Fed had bailed out, for example CAT.  I think then they bought a shit ton of Netflix.  Precious metals bottomed in the Fall, and with it, Bernank's Plunge Protection portfolio.

Here's your Pullback

Here is the pullback to $1407.  Silver down to right where I called it a few days ago.  Let us see how close it gets today.  Support is there, so I am not worried about any other significant drop.  If there was a significant drop then equities would be down 3% to 4%% and the fasist economists in charge could never have that.  I bet the price dips just below my support level before getting back up to $1420 tomorrow.

Wednesday, March 9, 2011

Gold in Line

Gold looks to be back in an uptrend today, even though it pulled back from its highs a little for the day.  Silver too, but both are rebounding nicely.  Platinum is staying well balanced near the bottom of its range.  I will wait for platinum to charge its resistance before I get too excited about gold and silver.  For now, the Trinity shines for the whole world to see.

The dollar has not responded well today, so if it is not a risk asset, what is?  Nothing except two banking houses seem to be doing well.  Them and physical precious metal that is.  Oil is doing well too, and with the recent moves in commodities they are doing fine.  However, they are still traded for paper.  Paper trades are getting heavy.

Demand your Right

When the levy breaks it will first be four days a week where gold rises $20.  One red day a week will not even pull gold back.  Then ounce gold starts going up hundreds of dollars everyday, presumably next Fall, there will be no red days.  By that time the World Bank and IMF will trying to mitigate what will be a 180 degree philosophy of economics that was left for dead amidst food riots and demands better made than asked for.

Is America joking?  Bill Gross just dumped Treasuries en masse and went into cash.  Treasuries are for saving, dollars are for doing something with, so what is Gross going to do with all these billions of dollars?  Perhaps this move by the world's largest bond fund is signaling the next market crash, yet equities have pulled back minimally (granted some stocks are being butchered) and gold rises. 

What will Bill Gross do with Pimco's billions?  Bread for the 20% unemployed, and circuses for middle class Americans who ask for their rights.  Rights are to be demanded.  No one asks for rights.  This is happening because the politic is subservient to the Hegelian dialectic.  There is no us and them, it is everyone, and we all have free speech, whether it is by a union of consort or by an individual alone, we all have the right to be heard.

What the pensioners could get is a different story altogether.  Denominated in fiat and those paper IOUs that have no backing may transform by the Fed's inflationary wand.  Who wants dollars?  Other than Bill Gross.  Oh and once again, what will Gross do with all those dollars?

Tuesday, March 8, 2011

One World Rising

I hope that people in countries that have not yet taken to the streets to protest the way finance and economics is currently run will take to the streets like others all over the world have.  If people in America, and Israel, and Germany, and Russia walked out on the Federal Banking fiat ponzi that has engulfed the world then change would happen.  Otherwise people will remain only with a cold wad of change in their hand.


I am looking for a pullback in gold to $1407, and that pullback could be repeated after that, too.  What I mean is, after it pulls back this time, it may test resistance at $1440, and turn right back to support.  Many times gold, silver, platinum, and oil will pullback not once, or twice, but three times.  After the third is when it generally moves higher.  Also, the more and greater one of these assets is pulled back, the higher it goes.  Think of it as that which pulls it back gives it the energy to snap it forward, like a catapult.

Back in the 60's the world gold council tried to reign in the price of gold while moving finance into a fiat standard.  They sold tonnes of gold on the open market in hope to subdue demand.  It worked for a few months, but within a couple years the gold price started moving drastically higher.  Then the solution was to sell more gold, nearly flooding the market.  Did that stop gold's rise?  No, it was only when all the appointed leaders, however appointed they were, held hands with Richard Nixon and agreed to sell T-bills for dollars.

Silver has had a similar story of late with the House of John Pierpont Morgan shorting it in manipulation.  In fact, there are many shorts on gold too, but silver is the sleeper.  None the less due to strong gold demand and questionable supply, silver has broken out again and again.  $36 was a long term target of mine and so I think it will test this range  for a while.  In the meantime, gold will slip through its range, from $1407 at the bottom to $1440 at the top.  The Trinity will break out in the next few weeks, after testing support onced, twice, or maybe thrice.

Gadaffi's Gold

The only reason Gadaffi is not leaving his country is because he can not leave with "his" gold.  He could sneak down to Robert Mugabe's jungle love shack, but not with the dozens and dozens of tonnes of gold that his friend Rotheschilde promised him.  No fly zone, because Gates wants that gold!

Obviously his Libyan brothers and sisters have had enough of his dictating ways.  He may have his loyalists, but war is only good for causing smoke screens.  While he is waving his smoke and mirrors he is secretly trying to find his shiny out of the area.  This is proving impossible, and he as well as the other oilgarchs knows how this plays out in the end:  He with the gold makes the rules.  Gadaffi is a sociopath and wants to make rules forever!

And for a real conspiracy, I have noticed gold pullbacks on Mubarak's resignation, and now Gadaffi's rumored resignation.  I think that saying these rumors gives the excuse to sell and lease gold on the open market, quelling the price appreciation, and even reversing the action. 

Monday, March 7, 2011

Hyperinflation: Stage Two

We have entered stage two of the end game in finance.  What will be termed hyperinflation if no other term is better has just managed to slip into phase two on this:  This phase has gold making massive gains, but giving them up on massive pull backs in equity, all while fiat and the bonds that back them tread water.  Volatility, is steady and high.  Volatility has been the one consistencie in this market for the last four years and this bull market is still running; the bull could be the twenty year bull that takes over for gold in a decade.  How long could this trend continue?  Until people took notice and bought gold, but how low could it go?   Imagine Dow $1k: Gold $1k.  Maybe it only lasts a little while, until people catch the drift and run into the gold pool naked.

Any way this ends, gold will equal the Dow.  Dow $10k and why can't gold be worth ten thousand dollars?  We all know that the effect would be minimal to technology.  Yes things will be more expensive, but oil will be covered.  Oil will trade for gold, fair and simple.

There is only one more act in this drama, and that is when the bonds do not get bought, and the dollar fails as a viable currencie.  So goes fiat into the fancy of history, with its time short lived and short loved.  It will not happen in one day, this finale, but it will not be a drawn out happening.  The Trinity and oil will rise and rise, with equities only wishing to keep pace, and the dollar will drift into nothingness.  There will be little bliss, as all assets will be scrambling for cover.

China's friend, Blythe

Does it matter who is manipulating precious metal prices?  It is Blythe, it could be China, it is Ben, it could be Peter Pan.  It matters not.  All I know is that the COMEX and LBMA have still managed to continue the charade.  How much longer will it go on?

The Fed is pushing to consider ending QE 'Infinity', or at least that is what they want the world to think.  They can not end QE, who will buy the bonds?  Japan and Europe are monetizing their own, and China is worried about inflation, not what clip they can rail America.  America is essentially done being a good investment, on to the next one.

The thing is, no government bond looks apealling right now, so what will investors turn to?  Equity could be the winner, but everytime it gets pumped up, shorts come in and slash the earnings.  This is easy to do when everything is fiat and made up anyway.  Precious metals make gains, but those gains are stolen by naked shorting fools.  Oil looks like it will be what triggers any move higher in this corporate industrial complex that has become finance.

The recent tredns, and this is important, has precious metals apreciationg in Asia/Europe, and then due to them being higher, equities are lifted.  This happens because with gold being leveraged up, so are equities.  Then Blythe and her gang come in, and at the same time, equities are shorted.  This is a mess, and it is being done institutionally, as JPM is a proxy bank for the Fed.  How long before this churns reality from the ashes of finance is anyone's guess, but the day is coming.  This ends when precious metals are no longer shorted naked, and when that happens, all bets are off.  This would be when to really begin considering hyperinflation as a likely outcome.  This could happen as soon as the next several months, and probably will not wait until '12.

Sunday, March 6, 2011

Silver breaks $36

It was when spring had sprung and silver first hit $18 per once that I looked into my majik crystal ball and saw the House of John Pierpont Morgan's shorts getting decimated on a supply/demand squeeze.  I recalled my "Buy Silver" campaign and charged the House and by proxy the Fed with supplying unlimited shorts on a fixed asset.  I knew that if enough people bough physical we could break the shorts.  We have.

This is a nail in the coffin of the proxy banks of the Federal Reserve.  We should not let up our fight, but we do not have long to go until silver is at a price where it deserves to be, which is hundreds of dollars higher than where it is now.  This may end with silver replacing the dollar outright.  After all, silver is monie.

Gold to Test

Sometimes I give the money makers a little credit, and I will today.  I think gold will test support at $1407.  I think the world is still brainwashed enough to not do their homework and figure out gold is monie before peak oil production is priced into the supply side of the equilibrium equation.  People will most likely not buy in on these low prices, because it will only be a few weeks before gold spikes above $1440 for the last time.

Silver will pull back one dollar or so by Friday, before lurching forward and breaking off $36.  Platinum will likely touch $1800 one last time, presumably during an Asian trading session, as it has been then when the Trinity corrects best.  Oil is likely to stay above $100, as the House of Saud jockeys for position heading into the final turn.

Friday, March 4, 2011

Bank on Gold

Today gold and its sisters Trinity are up big.  The reason for this is simple:  The banking industry had to leverage gold up to support their balance sheet.  To stay solvent, while the rest of the world's assets were plunging, banks must loan their gold out, and this increases its value.  Gold became worth more to keep the clock moving, and people want to play this game all night.  The can is gold, and it will be kicked down the road as long as it has to.

Banks hold gold as an asset and subsequently loan it away.  It is the first loan of recourse; the chief investment.  Then the money earned from this is used again on loans.  This improves the asset side, and expands growth.  If gold is not loaned away, then it is used as a liability. 

Banks spin this how they need to.  When they need leverage, they loan gold, and earn revenue used to make more loans.  If they choose, they can also sit on their gold.  This is how a lot of the supply and demand has been created, until recently.

The movement into gold as a store of wealth instead of investing in paper assets is only just getting started.  The market is small, and the increases into it will expand somewhat exponentially.  The big question is, 'When will demand be greater than supply?'  For gold this could happen quite quickly.  In fact, it may have already happened.

Thursday, March 3, 2011

Next crisis, Please

So now that Team America, lead by an ignorant man named Barry, thinks they can solve the world's perceived problems by rolling out guns, what will the next State to fall be?  Pakistan?  The House of Saud?  Will the US be able to police the world?

Egypt seems to have figured out how to topple a dictator.  The world, especially the US- where the Federal Reserve is above the law, should take note.  Peaceful protests can change a regime.  Believe that.

Gold gets sold off on the news the US will invade.  Was this Libya saying 'Uncle' and selling some gold contracts to the IMF/World Bank?  I think that gold is consolidating right between $1400 and $1440 nicely, most likely in part of panicked selling by dictators on the run.

It should not be more than a few more days before gold breaks $1440 and never looks back.  Platinum, silver and oil will all go along for the ride.  The situation will begin anew on any oil production problems.  With the producing states in turmoil, I would say that it is most likely that oil will continue to rise higher.

All this and the MBS and Muni crises have not begun in earnest.  This and the dollar as an instrument and tool of finance is fading into history.  Fiat sure looks to get made out to be a scapegoat after this is all done.  Each state of the world has a problem, or two, and none of them are being resolved correctly.  Hedge accordingly.

Wednesday, March 2, 2011

Gold breaks $1440

If you know me, you know this is the limit that I have said the fiat ponzi can take before collapsing.  People can no longer afford oil prices, let alone eat.  How will they buy gold?  Well, once the price surges past $1440 and on up to the tens of thousands, they won't.

Historically the ratio of a suit is 1:1 with an ounce of gold.  If gold is undervalued right now, what does this mean for the price of a suit?  Lobour may not be worth what it is thought to be right now, because how many people out there could make a suit?

Dow Jones' $13,000

The dollar continues to fail as a risk asset today as it is currently down 1%. The trade was very choppy yesterday. It might be capitulating. If this is the case, the trend line suggests the dollar as the DXY could test a new support level, presumably around DXY 75. The main problem right now for the dollar is that it has never had support at any level beyond this point. In other words, it has no experience dealing with all other assets while it is below 77. Coupled with thes significantly higher oil prices, gold prices, commodity prices, and real estate which may be bottoming in areas with upside.

Platinum has broken resistance!  It is heading for $2200.  So now it is platinum and silver breaking way ahead, with gold and oil a few steps behind.  Gold is sure to catch up with the sister metals, and with the world turmoil, oil is also going to keep pace.  Platinum is a heavily manipulated investment due to the small bullion market, but with demand high, it could trigger a supply shortage.  As platinum is past its peak production ('09) there would be no solution except extravagantly higher prices.  Is this the first stage of this trend?  It is quite possibly.

As Africa unites under various factions, the oil trade could push prices higher. Gold being an asset, the only good one, on all Central Banks assets can not go down without significant pressure being placed on their bank sheets. Assets must equal liabilities....ALWAYS. Food has been leveraged up, and there is some room for downside action now, but if it is in a bull market, food could go higher. If oil goes higher by the way, food WILL go higher. So here once again we see trades that could be highly profitable. We should try and find the risks though.

How could the dollar reestablish itself as a risk asset? If the Federal Reserve raised interest rates, then the dollar would have to go up, right? Problem is, if the rate was raised, thyen the interest on the dollar would surely bankrupt the Treasurie. So this IS NOT DOLLAR BULLISH. The dollar will not profit from raised interest rates. Is there any scenario where the dollar could benefit? The only one is if Equity pulls back and goes to cash. This could pull the agrigate monie supply as velocity would slow. This is why one's cash position should equal their equity position; unless the cash has just been recently deployed on a pulllback as to purchase equity/other.

If the only way the doolar can rebound is an equity pullback, what are the chances of that happening?  There are many sectors in the economy that are weak right now.  There are so many bad stocks on emerging markets that I am sure foreign equity could dry up.  Also there is the for profit education schools, and public education, as those who have even graduated college are finding it hard, which is not suppose to happen in the First World.  P/E is high, and so is volatility.  They may steadily even each other out, but with the fiat printing press on high, who knows what the metric will be for the future to come.

The Mystery Tour

Roll up for the Mystery Tour, it's waiting to take you away!  Gold is now on the doorstep of $1440 and I could not be more excited than if I found a leprechaun.  Gold is monie and it looks like reality has noticed.  With the rest of the gang in line, it is time to start the show!

The  The walrus is the dollar!  I challange anyone wearing the rose colored glasses to see the dollar for what it is!  Fiat is nothing but a piece of paper, however colorful.

Tuesday, March 1, 2011

First date Jitters

Today was the first day of the month.  Usually it is a good day for stocks.  The word was that the trend was continuing because pay rolls were hitting mutual funds and then the cash dispersed into equity.  Today we went against that trend.  Why?

I think the Black Box Algorythem machines know the drill and wanted to get a jump on the fund managers, so the Algo Machines from Hell lowered prices while the managers were left footing the bill.  If I am right we should see a big day tomorrow, as the Algorythems make their play with their fresh fiat.  If not a few weeks of huge up moves, it will be a few days for sure.  The moves in gold means the system has had to massively leverage itself, and why will it not go for broke?

Gold stole the show today, and the scene has just started.  Bernanke may have been blind sided by corporate equity, but it will be the dollar that ends dead.  This is not the end of the play, but there is about to be a climax.  It is straight up from here.

Gold Bull Herd

Well, now, look what we have here!  A real breakout in precious metals confirmed this morning, and then it is off to the races by the end of trading.  Most noteably is the dollar move to the upside, and its subsequent sell off.  See that lightning rod ontop the DXY?  Yes, that is a selloff.  We will see Dixie move back into today's trading range shortly.

Gold has made the move we were waiting for!  It is time for the next move!  Platinum is at its resistance level of $1840, silver is in some new range that has not confirmed support or resistance, and oil is right back to its resistance level of $100 (WTI).  Gold has joined the fun, so it is time to get this party started!

Big cap corporate equity sold off today, in a last ditch effort to secure dollars which in turn will either be reinvested into big cap, precious metal, or oil.  The next move will leave everyone not in the know in the dust.  It will be the move that seperates the herd.  Move with the front runners, do not get trampled under foot.  Move with the gold bulls, they will not be run off any cliffs, as they alone have foresight.

Breakout Confirmed

Gold and silver broke important resistance this morning, and platinum has confirmed this breakout by moving to its resistance of $1830.  Silver is now in very fresh territory, which means it has no resistance.  Gold should next move to $1440 before a slight pause.  After it breaks $1440, all bets are off, and we could see a huge move up.

The dollar is under full capitulation, adding fuel to the fire.  Look at those up and down strikes.  They are huge.  WHACK!  WHACK!  WHACK!  WHACK!  Four of them so far; there has been four up and down moves across DXY 78, the current support level.  So the dollar gets hit over the head with reality.  Welcome to the real, doelarr (see Tracey R. Twyman).

And now with big cap corporate equity down, the world should see what the best investment is.  Oil is up, and oil is a horseman in this ride to glory, but how will anyone trade oi?  Oil will trade for precious metal, as for a currencie, with no fiat middleman.

Italian banks are the second to get wise now that they and Germany will use gold as official collateral for their liabilities.  Of course, they did that before, and this is merely a charade.  Gold is on bank sheets.  It sit in vaults.  It is the chief asset of the financial system, and has always been.

Yet the world does not know this.  People say we are off the gold standard but do not understand the double speak.  We are, but we aren't.  As the US is at war with Af/Pak, but are not.  We have pulled troops out of Baghdad, and so are pulling out of Iraq.  Double speak is common since 1984.

Oil is in a light of its own and it is only a matter of time before there is a supply crunch.  Oil demand will not lower with the billions of Chinese and Indians engaging in the global middle class.  America will pay up to $4 per gallon before it breaks GDP, and they will drive; they have to.

The world failed to remember peak oil.  They failed to remember because they knew and forgot.  Everybody can understand that reserves have been established, but not everyone understands the earth is not filled with unlimited oil.  There has been no major field found in forty years, the low hanging fruit has been picked, and technology only speeds production up.  The other alternatives to replace oil are either old tools, like windmills, that have no room for growth, solar which is in an infant stage of development. hydroelectric which takes oil tools to create (cement, trucks, bulldozers), and dirty energy like coal.  Natural gas has not been adequately brought to replace oil either.  Also coal and natural gas will peak too, eventually.

So as always the Trinity finds herself alone on the top of the mountain, away from everyone and everything.  The flood of fiat liquefies the world over, as people struggle for the truth.  The Trinity watches from safety, wondering if anyone will make it up the mountain.  They will find her there.