Sunday, July 31, 2011

Debt Deal Done

Apparently this time the deal is sealed.  $1 trillion of cuts to the people that need the money most, while Wall Street can continue to pimp DC into perpetuating the fiat ponzi.  The first reaction was a sell off in gold and silver and a rise in the dollar.  I think that tomorrow will see precious metals pull back a little further, and the dollar will consolidate.  I think a brief rally for equities is in store, but only to the top of this recent range (Dow 12,800).  Then it will be time for QE 3, and then into the final stage of this prolonged inflationary depression.

The first thing the Major Banking Houses will do now that they have their credit reestablished is short metals.  It is a good shorting opportunity with them being at these prices during summer, and they want to bring the prices back down for political reasons.  Because GDP was so horrible, Bernanke will issue QE 3.  For anyone who thinks Bernanke needs equity prices to come down to issue QE 3, think again.  He can use any talking point he wants, and the paltry GDP number is a good one.

Once Bernanke makes his announcement equity will fly through Dow 13k like a bat out of hell.  He needs to keep prices on T-bills/notes/bonds high to fund his ponzi, and a rise in interest rates would also do his cartel in.  He needs QE 3.

After precious metals test support tomorrow and the days following we will see exactly what is in store for August.  This test is the important one.  If PMs test and bounce, look for them to break out.  If they fall through support, we are going to an old range.  Silver's support is between $38.50 and $39.  Gold's is $1585.  Key trigger points there.  Platinum broke out after the raise was announce which makes me think the breakout is at hand, but wait for support.  Third times a charm.

Friday, July 29, 2011

Soon, Debt Default

Dow pull back to 12k.  Check.  Oil pullback to $94.  Check.  Precious metal testing support?  Almost.  Maybe close enough, but I am still not sure if the breakout will happen right now.

Debt debate continues, politicians look like clowns, and Obama waits ready to pull the ultimmate fascist move:  invoke a raise in the debt ceiling.  Interestingly the Democrats are scared of what?  Helping the poor?  Since when hes this system helped the poor!  Dems are scared of corporate equity tanking?  Why?  Because the economy revolves around the well being of corporations.  Now we see where their alegience is:  with the corporations, and against the American people.

Before I finish this post, I want to make a comment.  Lindsey Williams said on the Alex Jones Show there would be a default.  I don't always think he knows what he is talking about, but he usually knows what will happen with geo-politics. 

From a post I made on another site:

And Mel Watt just screamed his head off about lord knows what.  And now Fwank is on the mic, looking like he just swallowed his tongue.  Name calling, name calling, name calling.  And Shiela Jackson Lee urges the President to invoke a debt raise on his own, which is insane.  She is insane.  Repubs look just as stupid.  They have not brought up one real issue on why the debt is a problem.  The problem is this country has handed over all their wealth to an group of corporate banks.  There is no accountability from either side.  Both ignore the problem:  Monetary and fiscal policy is a sham.

It is run by a private banking cartel known as the Federal Reserve System.  The "Fed" and its cartel of globalist banking housees seem to be in the clear, while politicians nit pick about the crumbs that are left out of the people of the Unidted States of America's pocket.

One big circus, I tell you.  One big circus.

Oh, and the US government will default.  Yes they will.  And then the BIS, IMF, and World Bank will swoop in and treat the situation like they do with failed 3rd world states.  They will use as collateral the gold on the Fed's books, the debt/GDP of the US, and the other credits and obligations of the Treasurie and Reserve Bank.  Good luck America, for we hardly knew thee.

Thursday, July 28, 2011

Soon, the Future

Soon, all debt will be collateralized by the Bank of International Settlements.  Soon they will back a one world currencie put forth by the World Bank and IMF.  Soon all debt will be collateralized.  This is how it will break down.

Gold will be collateralized.  All government debt as bonds held will be rated and collateralized.  All fiat currencie deposits by Central Banks will be rated and collateralized. 

GDP/debt will be put into play upon its "fair" analyzing. 

It is simple really, the world will be audited, and judged accordingly, and then each country will be given specific rates on their loans.  It will be similar to how the IMF rolls in on a 3rd world nation and asks them to repay their loans with collateral of such and such.  This time it will be the world at once.  This has been the plan all along.  A one world take over.

Wednesday, July 27, 2011

It's Getting Close

The pullback in the Dow is almost done.  I have been looking for a pullback to Dow 12k, and the big drop today brought it close.  I thought this weekend there might be a flash crash this week, and many stocks have lost their shorts, and big stocks too.  3M lost big, Netflix too.  When large cap equities lose as much as they have recently, you have to wonder what is happening.  It is part of the deflation equation that I have gone over previously, and it is also large investors moving their chips around the table.

Money has been steadily moving into precious metals over the last month or so.  We have reached an important reflection point.  A while ago I called the bottom in silver at $41.  I did so because $41 was a point where the price of silver started to goo parabolic.  It is also an important psychological price.  Moving over $40 shows that silver has more than industrial worth.

Monday, July 25, 2011

Weak Dollar

Last week came and went without a rally in the dollar, and now the dollar is trading below DXY 74.  I was going to write this article a few hours ago, and I would have looked brilliant, but I will still say what I thought even if it is expo-facto.

The dollar chart looks very weak.  Take it from a dollar bear who had given the dollar as much short term benefit as I could.  Will it collapse now?  I do not know, but the way it is trending I would not want to be long the dollar.  What is a better fiat?  The Swiss Franc?  The Yen?  Who knows, and better yet, who cares.  Go with gold, silver and platinum.  They are currencie and better yet, they are monie.

With the death of the dollar at hand, and it has been a long time coming, look for precious metals to take the slack.  Other fiat is just as fake as the dollar, and short term, they may benefit, but long term, cash will turn to gold.

I was wondering if Obama and Bernanke ever consider trying to learn about gold.  Do they ever go to sleep at night wondering, 'Why is gold still going up?'  They may already know, too, and they may be feinting ignorance.  If that is the case, we have to wonder, would either one ever try to save his career be saying, 'This morning while tying my shoes I figured out gold is the ultimate store of wealth!'  It would be interesting if they did, for at this point it is the only thing that could save their careers. 

Of course, they are puppets, and only do the bidding of their masters, and their masters do not care about a single man's legacy.  They have the broader scope of history to watch.  Most likely, gold will continue its steady parabolic climb, while fiat turns to ashe.  Dust to dust it burns, and in the end, the furnace will only have gold.

Bread and Circus

Every politician wants to stamp a debt deal as theirs.  There is nothing new about this bureaucracy.  Politicians are attention hogs, and nothing more.  It looks like Obama will stamp Reid's plan.

Any plan is a show for no one.  No plan solves the crisis.  The crisis is that the current fiat standard is not sound.  There really is no other problem; all problems stem from this one problem.  The only solution, and it will solve it eventually, is to have gold back debt like it did in the past.

Because of this, precious metals have risen steadily since the problems hit the apex point that is peak resource.   Now the problem is at  the crux of world issues.  Debt needs to be backed by gold to pay for the resources.  This is a fact.

Short term, I still want precious metals to test their support and then move up to where they are now.  I want to confirm the new level.  This is a conservative view, but being conservative in the short term is the best way to trade for someone long PMs.  Long term, the metals will continue to rise and rise.

Sunday, July 24, 2011

That's All, Folks!

Well, the bread and circuses have come and gone, with Congress aproving an austerity measure fit for the King's plebs.  No revenue increases, just budget cuts.  What do I think, personaly?  I don't care, it is all a game.  One big game.

This is the most bullish case for US equities there is.  Surprised?  Me neither.  No new taxes means the uber-rich will still have as much as they want, and all the austerity will do is break Grandma's bank, and she was not going to invest in anything but CDs anyway.  This also means Giethner will not have to put as much money back into the public pension fund and the Social Security Trust, where he robbed those banks.  This is the best case scenario for the mega wealthy, and now all Obama has to do is sign it.

You would think he wouldn't, but if he does not, he is risking the markets, and all Obama has done is improve the (appearance of the) market.  He will sign this package, and then he will golf.

I assume a selloff to start the week, probably to my call of Dow 12k, and then a steady rise.  I think the pullback will come in the form of a flash crash, but probably not with the magnitude of the May 6th one.  Look for Moday or Tuesday to have a 200 point drop with a similar amount of correction.  DC has averted hyperinflation's Stage Three for now, and it will be steady rampant inflation for a while longer.

Precious metals were due to test support anyway, and they will do so next week.  This is a big week for PMs because if they bounce off of support, their prices are going higher, but if they fall through, then support moves down one range.

Thursday, July 21, 2011

The Big Day

Tomorrow is the big day.  Tyler Durden says it is the last day that the US government has to settle the debt ceiling.  I am not sure why, maybe I missed that article, so if anyone knows, do tell.  But Tyler knows best.  Tomorrow is the big day!

I do think it is appropriate that the EU settled the day before the US' big day.  They got ahead of the debt curve, and Nash would be proud (or understanding at least).  The EU may have made a grave mistake, but this is a race to the bottom.

China is likely to be happy about all of this, as raising debt continues the fiat ponzi a little longer.  How much longer, well, not too much.  Likely what will happen is that the excess liquidity will be used to throw precious metals in the fire, but, of course, in the end, they will come out unscathed.  There will be a lull in price for the rest of summer due to this technique.  The dollar will stay in its current range of DXY 76, because every country is now printing ferociously.  The fiat ponzi is in full force, but in equilibrium.

The rush will come next Fall, when all the problems have been solved.  It will be seen as the great recovery, as fiat becomes worthless but corporate equity goes to the moon.  After all, all anybody watches are stocks; no one knows what the DXY is, or the comparable equivalents.  EUR/USD will stay in a range like to falling rocks, and since the people are falling with it with their heads focused on the money instead of the world around them, they will not figure they are falling.  This is the alchemists trick.

So for a few dollars more, the end game will be put into play, and the corporations will inherit the economic landscape.  China will become the US (or vice versa) and the world will become flat, once and for all.

Debt Support Tested

The support has been tested in the time of debt talks.  This is the second time it has tested support, $39 silver and $1585 gold.  If it falls through support, we are looking at the old support levels you know so well:  $37 for silver, $1550 for gold.  If support holds I will wait to see it tested once more before calling the new range.

The debt talks seem to have been made whole.  The left and right wings of the evil US bird are flapping as one, just like the mouths of Boener and Obama.  Soon consensus will be reached for the debt ceiling to be raised.

This will give Geithner and Bernanke green lights to usher in their spending programs, which will mean more liquidity, and higher prices.  I think that the first move for the President's Working Group on Financial Markets will be to suppress the price of oil, gold and silver, but that is a "problem" that can only be papered over.  Soon, after QE 3, at the start of the Fall, prices will again surge.

Wednesday, July 20, 2011

Interesting Gold Move

Gold just made a surprising move up.  It gapped up and capped yesterday's losses.  This is a first confirmation that it has found a new range.  Now we wait to see if it tests $1585 twice more.  If it tests that number twice and does not fall to its old support range, it may have found support here.  This would be great news, because then we would see a move higher sooner than I thought.

Silver too has made a strong move.  It sold off last night at Sydney's close, but has ramped up towards the middle of its three day range.  I want to see it test $38.50 twice more before I decide that we will not see $37 any time soon though.

Platinum gapped up too, and when the Trinity moves in unison like this, it is indicative of a coming price explosion.  I will want platinum to test $1760 twice more.

I may be changing pitch, and that has to do with the way PMs are charting, but it is also because I have not seen support in the dollar.  This may have to do with oil's price.  Maybe oil's price is now out of the hands of the oilgarchs.  War appears to be at hand with Iran.  A drone was shot down over their nuclear power plant, and the have opened an oil bourse.  There is nothing more bullish for PMs and oil than war, and nothing more bearish for the dollar, because the dollar will be the first weapon used by the "enemy"; it will be dumped accordingly in a show of force.

Tuesday, July 19, 2011

Precious Metals Pullback Continued

You didn't buy the top of that range, because you read this blog, but now you are wondering if that was it as far as how much the prices will pullback.  Well, if you own no precious metals, there is never a bad time to buy, but stay patient, because there is still a little further to go.

Daily support is in for gold at $1585, and for silver at $39.  Platinum didn't pullback much, but then again, it hadn't gained much either.  I still think the pullback will continue, maybe not tomorrow or the next day, but within the week, gold should test $1550, and silver will pullback to $37.  We will see for platinum, as that is hard to call, but $1720 looks about right.  Oil will probably also test its support at $94.  I still think the dollar will benefit, but it is running out of time.

Yet all of this is running out of time.  The whole fiat ponzi is running out of time.  Once the debt ceiling is passed, then QE 3 will be ushered in within the month.  Precious metals will remain volatile, but they will gain huge next Fall, if not in late summer.

Precious Metals Pullback (Updated)

The only thing certain in this market is volatility.  Repeat that outloud if you have not figured such into your daily calculations of the market:  Everything pulls back.  Espercially gold, silver, and platinum.

Support for gold is around $1550.  Support for silver was $34-$36, and the run up means that it will test the high end of that range.  Oil's support is just under $96, and the move will see the dollar go to almost 77 DXY.

Good luck trading.

Greece may have just defaulted, so there is no telling what will happen.  If you are not extra long PMs, you may want to consider that position.  I highly recommend it.

Monday, July 18, 2011

Equity Pullback

Caught flat footed, I can point to equities to show the pullback.  The dollar has high volatility, and made gains early in the day, but sold off late, and has not made the gains I thought it would.  Oil has stayed in the middle of its range.  But when it comes to precious metals, I will note, I have misjudged their current moves!  And yes, I am happy I have.

Ever cautious I wonder what this means for future price moves, as the markets follow gold, and not the other way around.  Does this spell the demise of the dollar in short?  For if gold continues to move higher, surely the dollar will fall!  That would mean oil and silver would break out, and platinum would not be left behind.  Is this what is about to happen.

I think not yet, but the support levels may have moved up.  For now, silver has broken to a new range, so its support has moved up.  Gold's breakout continues, and so its support is still in the $1550 area.  Platinum is back to the middle of  range that has lasted it almost a year, and oil, the dollar, and the euro are in the middle of their ranges, too.

Equities are right in line to where I thought they would go, so I will say to look for Dow 12k to be tested, but as equities have an inverse relationship with the dollar, and if the dollar has its ass handed to it by the Trinity, then equities will again rise.  This will happen once the debt ceiling and QE 3 are ushered in, and I have stated  that, but maybe the breakout occurs  before then.  Remember, I did call this the last pullback from the get go for a reason.

Silver Breaks Out

The dollar is up slightly, the euro is weak, gold is flat, equities are down, and oil is down.  So the trend is almost in line, because then silver broke out.  Well, although surprised, I am not too much so.  Silver is the most under appreciated asset class, as it is a main industrial component and also defines monie.  So silver has broken the trend.

The most interesting thing is that it has done it alone.  Their has been no major currencie breakout, gold is flat, and oil is down.  And it is interesting that oil is down, because usually silver and oil trade closely together.  This leads me to believe either oil is about to see a huge gain, or silver will pullback.  Either way, silver has made yet another run at its all time nominal high of $50, and once that number is breached, the sky is the limit.

Sunday, July 17, 2011

The Dollar's Last Stand

This week, it will be all about the strength in the dollar.  The debt talks will keep people wondering how the ceiling will be breached (as it has been already- justified by plundering public pensions, the question is if it will be officially so).  This will mean that traders will remain skeptical of their respective investments, and will seek a safe haven.  Gold has provided this immensely over the last few weeks, and although it is the safest trade in the long term, I think institutions will look to take some gains.  The problem will lie with the euro.  Europe is about to enter the house of pain now that Italia is on the chopping block.

Since the dollar will see a gain, it will be first silver and oil that take a hit.  Silver will test $35-$36 in a few days, and oil $96.  Gold will come down then, too, to its support of $1550, abouts.  Equities will see Dow 12k.  But this will only last a week or so, as the US will be the one to fall hardest.

Deflation versus Inflation

One of the best debates for the last few years has been the inflation versus deflation debate.  It seems people can only take one side of the discussion, and the context of the two are simplified.  But what has happened is there has been massive inflation and massive deflation, culminating to a point where nothing is relevant.  I have called this point hyperinflation for lack of a better term, and I have also called it blobflation although that term is obtuse.  Really, the best way to understand it, is that there has been so much deflation and inflation over the last few years that the system will break because of it.

Murdoch's scandal shows how deflation can still tear a hole in the wall of the system, which allows inflation to seep in and soak it up.  Murdoch 's failure has allowed tens of billions of dollars to vanish into thin air, making room for Bernanke's fresh printed dollars.  The game ends when there is no more deflation, so the best way to know when the game ends is to know when the deflation has been used up.

The housing market has supplied ample deflation to the market over the last several years, and it still has some room to provide.  Housing prices are going to be cut in half by next summer, and then maybe only then will they bottom.  That is why the fiat ponzi should last one more year.

The debt default is another story.  I have not considered it deflationary or inflationary.  If the ceiling is raised, then that adds inflation, but if not, I do not think the term would be deflation.  All that will happen is that no one will buy US bonds for a few years, and money will run to gold etc.  This will be seen as hyperinflation, because the system will have broken down.

So when considering the debate, it is best to have a view from afar, and understand that both are present in the system.  The fight is to match deflation with a little higher inflation.  This is the trick of the banks, and the trick of the fiat ponzi.

Thursday, July 14, 2011

QE, or No QE

Bernanke sank hopes of unlimited free money today, but he did so to confuse those he calls "rational consumers".  He says the markets are forward looking, and he wants to create as much instability as possible, this so his proxie banks can loot the economy to bits.  The more volatility, the more money for the Algo Machines from Hell to make.  His main goal is to loot the world, and leave his Masters holding the purse.

The markets will stay int the range I have outlined.  Bonds will rise a little, the Dow will move to around 12k.  Gold will test support at $1540.  Silver will test $35.  Platinum will move down slightly.  Oil has gotten a head of the trend, and has dropped to around its support already.  It may test $94.  The DXY will continue to fluctuate to almost 77.  The EUR/USD will test $1.38.

Then, in a few weeks, when the debt ceiling is passed, Bernanke will say, "To keep the recovery on track...." and he will usher QE 3 in the door.  It will create massive inflation, but it will give the proxie banks one more chance to carpet bag the world.

Wednesday, July 13, 2011

Tradition Walks

As if Bernanke was getting all the publicity, Obama, the drama queen he is, decided to steal the spot light on the day Moodys warns of a US ratings downgrade.  What a day!  Bernanke started it off claiming once again he has no idea why gold has value, but that it sits in his vaults, the largest in the world, because of "tradition".  Then (and I am not sure which happened first) Obama walks out of budget negotiations because some one kept interrupting him.  Obama, you are the with it, man!  Washington fought a war for us, and you can not handle being interrupted.  Patience is a virtue, and what, Obama needed to touch up his short game? 

Bernanke is looking like a doofus, not to mention a hooligan.  Since he knows gold is a reserve, an asset, why is it that he knows nothing about its rising value?  He lies.  He knows very well, as he loans it out.  He sets its price.

Moodys is prepared to downgrade US debt, which is like calling "game over".  Downgrading the US will be downgrading the dollar, and since all money is marked in dollars, the world will be downgraded.  This is one way to exercise some reality into the world, but the right way would be to institute constitutional money.

Bernanke hints at QE 3

Bernanke killed the pullback.  He slayed the Dragon.  He is a battle tested warrior.  Or maybe just a mad man.  He hinted that QE 3 would be for the benefit of the world.  Cui bono?

He knows nothing other than neo-Keynesian policy, and when one only has one way of thought, he puts himself in a dark, dark hole.  He has one plan of action, and that is to create more debt.  More debt, I will say, out of nothing.  Interesting that he owns the worlds largest gold reserve.

All of that debt will find its way to golf of course, and each brick in his vaults will become more valuable than he can imagine.  Maybe this is his plan.  Or maybe he is just stupid.

The pullback will continue, as money is repositioned, but the low may only come inbetween 12k-12,200.  PMs should come to the middle of their ranges before exploding higher.

Tuesday, July 12, 2011

Major Bank Selling

The Major Banks are liquidating all their positions to stay solvent, and it is not working.  Their liabilities are huge.  They have more toxic mortgages than they know what to do with, they were blown out shorting silver and gold, and they have little performing assets.  This is why their prop desks are selling everything the got.  They are trying their hardest to stay solvent, and it is not working.

The best evidence today to show that the Major Banks are liquidating their assets is that even though oil went through the roof, the Oil Majors had no gain.  This was because the largest share holders, the Major Banks, sold their shares.  Selling performing assets means either the seller thinks there is a correction coming, or that liquidity is needed.  The Major Banks are long oil, so much in fact that they were the ones who bough the SPR release.  The only explanation for them selling Major Oil equity is that they need liquidity.

Since the Discount Window borrowings had gone berserk it was obvious that the Major Banks were in trouble.  Through in the way their equity is trending and nobody will argue.  Yet now we see them selling their performing assets:  something big is around the corner- the Major Banks are going to fail.

Pullback in Line

This pullback will happen over the course of the next few weeks.  It should have been realized by the last week of July.  Not everyday will be down 100 points like happened the last couple days.  The dollar is weak, and although the euro looks weaker, they are both dead ducks.  But US equities are heading further south.

The Heng Seng lost 3%.  Europe has been down huge lately, some of their banks have seen 10% losses in a day.  Italia has joined the news in talks of Euro default.  The world is in disarray.  Yet America will not escape any of its problems.  The dollar almost made it to 77 on the DXY, but failed and is not down from there.  Gold keeps trending higher.  Oil has made comeback.  Platinum is going for a ride.  Silver is trending higher after falling a little.

Gold will stay where it is, above $1540 during this next pullback.  Silver's support is at $34, maybe just below there.  Oil has support at $92.  Platinum around $1700.

After this pullback, there will not be another.  If the debt ceiling is raised, the third leg of hyperinflation will begin, because it will give Bernanke the breathing room to POMO QE 3.  If it is not, the pensions that have not been paid will never be, and all public provisions will cease.  The dollar will die either way, one the quicker and the other the slower.  The Fed prefers the slower because there are still pigs to fry, but either way, the end result is the same.

Monday, July 11, 2011

Calling JPM's Naked Silver Shorts

The COMEX has been looted of its silver during the last few months to little fanfare.   Not only has not many people noticed, but the ones that have have not asked who and why this happened.  It happened because JPM and other proxie banks were forced to cover their naked short calls, and they had to go out on the market and get the collateral.  This because long calls exercised their strikes and wanted payment.

How the price went crashing back down afterwards is hard to know considering that the dollar, with its inverse relationship to silver, only gained marginally, and there has been no let up of demand.  Supply is staying tight too, so the only reason can be the fact that oil and silver trade 1:1 and the SPR release, however brief, brought the price down.  The dollar showed its weakness, then.

JPM may have lost their shorts, but the longs ended up with collateral.  Could this have been a ploy from major buyers who knew when to exercise on JPM?  Was JPM willing to be a proxie?  More than likely this is true.  More than likely, this was an orchestrated plan so a few insiders could walk away with collateral at a cheap price.

The Pullback Continues

US equities will wash them selves again while finance spins with volatility.  The Dow will test its support of 11,900 and it will give Bernanke the excuse to pull the trigger on more QE.  All the while gold will stay at a premium.  The dollar will have strength versus the euro, and  so it will be the former that follows gold's moves, as it is always the stronger fiat that follows gold.  Silver and oil, since they trade inversely the dollar, will find their support levels, but their range will tighten.

QE continues today, for if it did not, the depression would be realized.  He will have to leverage his gold reserves further, but this is the cost to his benefits.  His benefit will be to monetize more trillions of Treasurie bonds, alleviating his Federal Reserve of the chore of holding worthless assets.  He will love to watch equities fall into August.

The debt ceiling will fuel political debate, and will keep the eye off of the real prize:  further monetization.  The debt debate is inane; it does not matter.  Raise it, and inflation will make the dollar absolutely worthless.  Do not, and all bonds will escape from purchase.  It is a lose lose situation.

The only solution is to reconstitute real monie, and if America does not do it, another entity will do it for them.  Lagarde in all her fury is already arm twisting, and given the chance, she will play cop and say, 'I told you so.'  The IMF would love to have the responsibility of the reserve currencie, and if their SDR is thought to be backed by gold, the dollar will have to be the same.  Yet this will be on globalist terms, and America will have little choice to lay down their wealth in the hands of global bankers formally.

Friday, July 8, 2011

The Pullback Begins

It will be a short and quick one, but it will cause a panic.  It will remind everyone, even bulls, that the "recovery" is "fragile", and this at the least.  It is the depression that never was; the greatest depression never discussed.  Once it is known by the public, it will be too late.

The pullback will wash the Dow once again.  The Dow failed to hit its recent high, and will now run through the 12K range.  But Bernanke will have some ammunition dry; still the world thinks that QE 3 has not been initiated- it has, but in a Light form.  The Light will be turned on for a third time, and the debt will be monetized massively.

Obama is doing everything he can to put buffers on the economy:  He is letting everyone unemployed live in their homes free from their mortgage for another year.  How this is legal, well, Obama does not know the law.

The Military Industrial Complex is still in full swing for the time being, and this is making the Major Banks money hand over fist.  How long oil will be cheap enough to run the war machine, time will tell.  Oil will likely be the end all of the fiat ponzi.

This, but the US debt is still not solved.  If the debt ceiling is raised, finance will be walking dead once again, but with a very inflationary twist.  If not, public pensions will not be securitized, and the unfunded Social Security Trust Fund will be no more.  There is no solution to any problem, except for one.

When all of this hits the proverbial fan, gold will be sought over all other assets.  This will, in the least, double demand, and since supply has been lessening since 2000, price will sky rocket.  All of this comes to a head by August.  What is in store is right around the corner.

Thursday, July 7, 2011

Charting vs. Fundamentals

Charting PMs, it looks like prices are going higher, and since PMs lead all assets, then US equities should rise, and the dollar should fall.  Yet, the fundamentals are saying that there should be a pullback.  There is QE Light, but this should hardly mean the usual exasperation that the dollar has felt this year.  So which one will win out, the charts, or the fundamentals?

There has been no significant selloff in gold over the last few days, and silver has shown very bullish tendencies.  Silver has tested daily support over and over again.  Oil has broken out.  Yet, still, the fundamentals are bearish.  The dollar has a little room to maneuver on a technical basis, especially considering the Yen and Euro are weak, too.

But technicals have been the superior to fundamentals for years now, so will we see the sharp rise in US equities now instead of this Fall, like I have supposed?  The bet is on gold, and her sisters Trinity.  Oil will also dictate the terms.  Precious metals lead all assets, and this is the stone cold truth.  Watch them to know the next move.

Wednesday, July 6, 2011

Dollars of Gold

Today's trend of interest is that the dollar traced gold's move on spot.  Silver, after yesterday's route, went for the ride as well.  Oil almost sold off, and did momentarily, but crept back in line with the aforementioned assets (for better, or worse, in the case of the dollar, considering its historical relationship with oil).

This move is quite a gesture for things to come.  Whichever the stronger fiat between the dollar and the euro always follows gold, so this may mean that the dollar is about to be the better of the two.  This would make sense, considering the move has already started.  Let us see if the EUR/USD makes a run at $1.38.

If this happens, oil and silver will likely pullback to their support, but gold should stay above its support level, if only barely.  Platinum continues to be the weakest of the sisters Trinity, so it will test support too.  As far as US equities, the long trend would say they will pullback.

This has been the Summer Trend I have outlined.  A pullback may be in store in equities for the next month.

Tuesday, July 5, 2011

Bernanke the Bloody

Maybe history will remember Bernanke as a warrior King.  An economists who led a war against the lower class and Third Worlds, to better humanity.  I hope that is not the case, but history is written by the victors, and Bernanke, through and by his fascist policy, is wrecking havoc on the world.

Rice prices are quadrupling, which is putting Asia on edge.  Africa is having a hard time affording food too, which is why they began to rise up against the system; and it was the system that they rose up against; it was not against any single person:  it was against the system.  The CIA have tried to manipulate the situation, but they have had little effect.  More than anything, it is economics that is doing the heavy lifting of bankrupting the world, and the poor are the first to suffer.

The poor in America suffer too.  Gas is too expensive to make minimum wage for those who do, and to drive around trying to live the American dream.  Food prices are high, and food stamps are not sufficient to live the dream.  Maybe the dream was not a fine goal, but wealth is still disproportionate across the board, and until it is distributed more evenly, there is room to complain.

The greater good is just that; the good lies in the collective: separate we are at the whim of nature, and nature is not a force to face alone.  In time, even the rich will face the destiny that we have chosen, that we haveasked for, and it will hit them as it hits everybody.  If Bernanke thinks he is doing the work of a god, he is mistaken.  He is endangering everyone, including himself.

Today's Route (6-5-11)

Signs point to a coming surge in the prices of precious metals and oil.  Today showed that there is still a lot of strength in the trade.  The dollar has stayed flat, undoubtedly because the Euro is weak, too.  The long trend of Fiat currencie washing itself out in terms of gold will continue, leaving the world of finance at the whim of the real monie and collateral:  gold.

Oil ans silver gained big today because of supply constraints.  The SPR release only calmed markets for a moment, and silver demand has been crushing supply on the physical market.  Industry will have to come to terms with the fact that many people are buying silver bullion to hedge against inflation, which is near if not at 10%.

Finance is spinning its wheels.  The recent news that banks will forgive upwards of half of mortgage obligations may help bank balance sheets, but it will take massive reserves off of the books as well.  This is hugely deflationary, and will provide cover for the coming QE Light program that POMO has devised until QE 3 is ushered in by Bernanke sometime around the Jackson Hole conference.

My summer trend is still in line.  Look for gold, silver, platinum, and oil to trade in their respected ranges for another month.  We will look closely to find if the range is being spread or tightened; as of now it is in line between support and resistance.

Sunday, July 3, 2011

The War on Peak Oil

Barrack Obama declared war on peak oil when he released the US' strategic petroleum reserves.  He showed that the cards dictated he move his chips all in to bluff the market, or he verbally surrenders political policy that there is a coming oil crisis that can not be mitigated.  He chose the former, and if there is a market that can not be bluffed, it is that of oil.

The US release was not equal to half a day's consumption considering world demand.  The total release, 60 million barrels, was still short of one day's consumption.  This did little to mitigate the supply problem that concerns the oil market in terms of rising demand.

Now that the US is using its reserves it has left open the possibility that a world supply crunch will leave America vulnerable.  There will be no mitigating the market if the Middle East decides to not import (as much) oil to the US.  The US has left its fate up to the whim of the oil producing nations.  This may be a fatal mistake for the Empire that almost was.

As soon as the US won the cold war, the country over shot and spent its excess wealth destabilizing emerging countries.  Now these countries and the population of the world, is sick of US foreign policy.  The dollar is seen as a way to destabilize the fascist US.  Unfortunately for the former Republic, the people of America will lose out, while the corporations hold sway.  A rising oil price will generate more revenue for big oil.  Because America has been taught that Nationalizing corporations is socialist, they fail to see the upside.  The hands of big oil will stay firm on the production of the lifeblood of the economy.

More would need to be done than just to nationalize oil production, because the oilgarchs could find a way to benefit.  More than anything people need to express themselves and become involved in finance.  People need to take a more hands on approach.  Due to oil needing to be weighted by precious metal, all that people need to due is invest in this asset class.  This asset class controls all of finance, because it is gold that works to balance out Central Bank loans, and it is silver that is as industrial as oil.  Since oil and silver trade one to one, an investment in silver is an investment in oil .  Since oil trades inversely with the dollar, an investment  in silver is an investment away from the fascist fiat ponzi system.  This is how the war can be won:  Buy silver.