Tuesday, September 27, 2011

Gold, Long and Short

I am moving my timeline for gold's appreciation.  I think we will see it build a base for the next few weeks.  Gold will stay in the $1650 range until mid to late October, before it moves back to its recent highs.  Then come late October we will see a move to $2,500 before the winter solstice.

We will see huge demand moving into physical with the Indian wedding season, as well as continued bullion demand from everywhere.  The price will be at $2,500 in late December, and will likely consolidate at $2,200 in January and February.  Then next Spring will see the move to $3300, and I think $3,300 is a very magic number for sentiment.  I believe once the price is at $3,300 the status quo will have changed and most people will begin to invest in gold.  That is why I think the move from $3,300 to $5k will be quick, and the move from $5k to $10k will be quicker.  I think we will be at $10k by the next Presidential election, most likely assuring Ron Paul victory, even if he is written in.

Sunday, September 25, 2011

A Capitulating System

What we are witnessing is the death throes of the financial system.  It is in full capitulation.  There is a big move coming up, and everyone is going to have to pick a side, because there will be no middle ground.

The strict deflationist camp says that all prices are going down, and capital will move into USTs and dollars.  This is the typical scenario concerning deflation for the last umpteen years. 

The strict inflationists point to the money printing of the central banks, and say prices are going to rise.  Inflation will be the Fed's main concern and they will keep their target come hell or high water.

Stagflation is also a worry.  Here, the concern is that prices will rise, but that wages will not keep pace.  This has been the scenario so far, albeit without the proper inflation numbers.  Using oil in the CPI, inflation is much higher than the US government is saying.

All of these scenarios are likely, and in fact, all will occur.  That is why the system is dying; it is pricing all of this in at once.  Once the system realizes the dire straights, it will finally roll over.  Anything could happen to equities, but concerning the dollar and USTs, I don't think they are the safe haven the once were.  Maybe they do not go into hyperflation, but they should not be the only safe play.  Precious metals will keep that hedge.

With oil production peaking, oil will not fall much, and this too will keep a lid on the dollar, since they trade inversely.  This scenario is bullish for silver, as silver trades with oil, and with gold.

In all likelihood, the system is set to fail, and I am not sure how much longer it can be propped up.  What matters is what new policies arise.  If money printing continues at its breakneck pace, inflation will take the lead.  If not, the massive deflation hitting real estate etc could take down equities.  I would also not be surprised if stagflation ruled for a few months while politicians and policy makers messed around.

Friday, September 23, 2011

A Call to Arms

 Sometimes it takes a conversation to spur a thought.  I wrote the following on the site we all frequent earlier today.  If you do not frequent the site, I am sorry, because the first rule is......

To have a short position, someone either needs to own the security, or needs to be able to locate it; the latter is when we call it a 'naked short'.  There is not enough gold bullion to locate to justify their short positions.  This mean that their shorts are unqualified.  So if the CFTC ever decided to be a properly run government organization (they won't be) then they would regulate the shorts, sanction JPM et al, and nix the shorts.

Yet, just like in life, reality always descends eventually.  There will be a time when traders understand what is happening, and there will be a panic move to get physical.  I don't think this will happen until gold is in the range of $3300-$5k.  Once it does there is no top on gold.  It could go to $10k, it could go to $40k, it may very well take the dollar under and its price be invaluable.

To put this in context, look at oil.  Who bought the SPR release, and why?  JPM did, so they could locate their shorts.  The oil market is better regulated than gold, and so they needed to prove their shorts.  Thus Obama did another favor for the Banking Houses and greenlighted the release; JPM bought the oil and stashed it offshore, and JPM bought their short positions.

Of course, there is a direct way to go after these measures, and that is by buying physical silver.  Silver trades with oil 1:1 on the long term.  Oil trades inversely 1:1 with the dollar on the long term.  Take a position on silver, and you take the most promising short position against the dollar possible.  Shorting the dollar is the final battle, because it is the dollar that holds the world from reclaiming its prosperity.  The dollar backs the Banking Houses; it is their only weapon in the financial war that has destroyed the America our fore fathers built.  The dollar, and the corporations that back it, is exactly why this great country was founded.

It funds the war machine, and it is the war machine that is Wall Streets prize possession.  Without it, Wall Street has no power over the oil producing States.  The dollar is soaked in the blood of young Americans who have been stricken by poverty and had little options available.  The catch 22 of the dollar has pitted America against itself.

Victory will be had by real monie, because the dollar has no backing and is an amalgamation of creative thinking.  Alchemy took hold of money after the philosopher's stone failed.  The dollar has no intrinsic value; it has no general worth and is merely an IOU.  The dollar is backed by lies.

Silver is real monie.  This real monie has had the same short positions unjustly levied against it.  Since silver is cheap, it is rather easy for us to target.  It is the belly of the beast.

I will be visiting the coin store today, and I will be buying with both hands.  I believe that our best hope to take the Banking Houses down is to take possession of silver.  This because silver is a very industrial commodity and if we squeeze the physical market the price will rise.  Then, when the price rises due to supply constraints, JPM's shorts will crush their balance sheet- this has already been happening over the course of the last year and a half, since we started our movement.  So please, join me, take down the Banking Houses, take back your monie and wealth, and take back your freedom!


Wednesday, September 21, 2011

Operation Twist II

Gold has held support at $1775.  In the face of market turmoil this shows how strong gold is.  It is what makes the world of finance go 'round, literally.

Bernanke was forced to loan out a tremendous amount of gold to finance his operations, thus one reason why gold has appreciated so much over the course of his tenure.  The dollar still spins it's wheels at DXY 77, as equities fall down to earth.  The inorganic nature of bonds seems to be the only thing left from turning the system back over to a gold based one.  That day will come soon.

The demand for US Treasuries has soared, which is why Bernanke is the only major buyer now.  If he did not have 14k tonnes of gold to loan then his game would be up.  He will loan gold until the wheels fall off.

Operation Twist II will buy at the long end of the curve, flattening it, and setting it up for a violent move north.  The short term rates always move first, and now that he has focused on the back end he has left the most important part vulnerable.  After all, how many more easing efforts can he do?

Gold has tested support three days at $1775, and three is the magic number.  I would look for gold to move back up to the middle of its range by Friday.  Then we will wait on news to figure out if we are moving higher and testing the recent highs, or if we find support again.

Thursday, September 15, 2011

European Explosion

The "M"arket "M"arkers did what I expected them to do and come together with a very incestuous bailout.  First China pledged support of Europe, then Geithner demanded the status quo stay, and now Europe has offered up their sovereignty for pennies on the dollar.

Gold crashed because it was loaned out to finance the effort.  I think its support is at $1775.  As I write it is slipping past that but maybe support will catch around there.  Oil was up today on the back of a weak dollar, which shows how oil still trades directly against the greenback; this is one trade that has not failed yet.  Stocks capitulate, as they have no idea what to do in this sea of financial turmoil.  They should go down but Geithner, Bernanke, and their Working Group will not let that happen.

On the horizon something ominous looms.  It can't be made out, but we can see it's black cloud like shadow.  What ever it is it will destroy the fiat ponzi.  We will meet it soon, and find out accordingly.

Tuesday, September 13, 2011

Inflation: Resources vs. Debt

The more debt issued, the more inflation in the system.  Inflation is when the debt is weighed against the resource base.  When the resource base stays the same or decreases, while debt increases, this causes inflation.

The resource base includes goods, but only critical goods for survival.  Food, water, oil, and precious metals are at the top of the list.  Food and water are having a rough time because of man and mother nature.  Man because we are using GMOs and this is destroyer the DNA of the crops, and killing honey bees.  Nature because the world is always in flux, and with man hurting his chances, nature is leaving humanity in the dust in many parts of the world.

Oil production, and precious metals (for the most part) have peaked production.  This is important because oil is what runs the economy, and precious metals back the debt (officially or not).

China is betting that they can afford higher precious metal and oil prices, which is why they continue to bailout the fiat ponzi.  The are calling the West's bluff.  They are confident with the oil they receive from Russia and the Middle East, and they are confident with their gold production.

This may be smart, or it may be as dumb as the West asking for more and more bailouts.  Either way, the cake is baked:  there is a lot of inflation in the pipeline.

Monday, September 12, 2011

The Big Trades

Precious metals will appreciate for another decade, and this will prove to be a great investment opportunity.  Along the way, there will be plenty of other opportunities.  Many of them have to do with the destruction of the fiat ponzi.

On the Fall solstice the Federal Reserve will show their hand, and begin to implement further easing.  How fitting that this will happen on the solstice!  The pagan alchemists will grow their fiat from their tree of knowledge.  Unfortunately for them the tree is not real and soon the world will know what this false worship will beget.

The dollar will be weakened further.  Rates will be held low so that the Federal Reserve can make as much as possible when bonds come due.  The Treasurie also needs this premium.  With European bonds collapsing European investors will go to cash, and that means Euros, as dollars will not store wealth with Bernanke and Geithner at the helm.

So the EUR/USD will go to $2.00 during the next year, just as the Mark once did.  Greece and other small States will leave the Euro, and this will make the Euro more expensive.  This is will help keep US rates low, and will keep the dollar low too.

With the dollar dropping, oil will rise.  Because the Euro will gain, Brent should come back to a more normal price vs. WTI.  I think by late winter we could be looking at $150 per barrel.  I think that due to price action of fiat, but also because of supply.  OPEC is 'cutting' supply.  What this really means is that OPEC has peaked production.

With supply dropping prices are set to increase, for oil and precious metals.  This will squeeze the dollar.  So the dollar is getting squeezed on all sides.  Equity looks weak, and will not make real gains, but it will either rise marginally or trade sideways while the dollar flounders.  This will provide perfect cover for finance to continue to loot the system with Keynesian policy.

Monetary solutions are QE.  Fiscal solutions are Stimuluses.  These measures will continue until the system falls apart.  Once again, the fiat ponzi is getting squeezed from all sides, and it is only a matter of time before it explodes.

Friday, September 9, 2011

Blame Europe

Apparently America can not handle blame.  Fault is never owned here.  It is always an outside force that causes the problem.  Interestingly Europe is beginning to blame the US, so I guess it is just the nature of the status quo now.  Either way, the game is almost over, and people can not handle the problem.

The news is reporting that today's equity downturn was caused by Europe, when any able minded individual should understand the problem is the system.  The system.  The system is the problem.

There is no difference between the European system and the US system.  They are the same.  Greece needs to pass austerity, for a bailout.  California needs to pass austerity, for a bailout.  Here we point to the fact that US bonds are low as evidence for demand, but the Federal Reserve is buying all the bonds, which negates that theory.  In Europe the ECB has been stepping in and buying the Greek bonds.  It is the same solution to the problem.

This weekend may be the weekend where a European country implodes, and it looks to be Greece.  If that happens all European banks will be affected directly, and because of that the rest of the world will suffer.  If that happens, European investors will turn to the Euro instead of the bonds, Jim Rogers has already recognized this.  I recognized it months ago, as I started saying that when Europe implodes, the EUR/USD would go to $2.00.

This in part is because the dollar is weak and will get weaker.  Obama's "Jobs Program" will spin $4.47 trillion after the banks use fractional reserve lending to spin the loans.  Bernanke will use new tools to monetize the debt.

Also, the Swiss have backed the Euro.  This may have been stupid, but it was a monumental decision.  The Euro is not strong, but it looks to take the benefit of a European collapse.  Of course, the major beneficiaries are precious metals and other commodities.  Look for precious metals to sky rocket from here on out.

Thursday, September 8, 2011

Helicopter Time

Bernanke front ran Obama's speech today, once again confusing the rational consumer.  Yes, there will be more stimulus, and easing to infinity.  Take that to the bank.

The first thing that happened after Bernanke took his foot from his mouth was a sharp rise in the DXY.  This is because in order to move the market, money needs to unwind.  This was the short against the dollar unwinding, so that it can be put to use buying things like gold, silver, and oil.

Bernanke is such an opportunist, isn't he?  He crept into the spot light ahead of Obama's Jobs Program speech, a speech I started writing about one and a half years ago, only to say what we already knew:  he will keep rates at zero forever, come hell or high water.

The world is mired in paradox.  The world has no liquidity, yet it has too much liquidity.  Unemployment is outrages, but food stamps keep America fed.  Europeans can only vacation for two weeks instead of four; oh the humanity!  Soon the system will collapse.  Will it be one year?  Or two?  It matters not.  The policie has stayed the same for decades:  keep the people fed, and loot the system by the back door.  The house is almost empty.

So, to reiterate, all things will now come unhinged.  Precious metals and oil will fly, the dollar will die, and the Euro will levitate while European bonds crash in value.  Bernanke will print $447 billion and loan it to the Majors, they will use fractional reserve lending and turn it into $4.47 trillion, and M2 will rise sharply.  This will crater the value of the dollar, and, well, you know the rest.

Wednesday, September 7, 2011

Gossip Kills

A boss of mine once said, 'Complacency kills.'  This is apropos to any situation.  Furthermore, gossip kills, in today's day and age.  It is gossip that makes us complacent, for the most part.

While gossiping, people miss the little things in life; the little important things.  Two girls could walk past Cupid while discussing the Kardision TV show.  Two men could walk by Aphrodite while discussing sports.  I am sure it happens all the time.

Today, no choices are had, they are forced.  People discuss topics given to them by the main stream media.  There is very little creative thought.  Lovers manage their time.  Families subdue theirs.  Life is not known until it is too late.

The culture has unraveled at the strings.  The emperor of humanity is naked, and even the children have not noticed.  This because the parents hide all eyes behind a veil of gossip.  Now people have steered clear off of a proverbial cliff.  The gossip of our society has killed the dream of nirvana, before the dream had a chance to be realized.

Tuesday, September 6, 2011

Just a Taste

Many Americans have had a taste of the good life now.  Many have flown, many have had a well paying job, many have experienced the life of luxury.  Now that is about to end.

Once the dollar loses its status as the reserve currencie the little things that Americans have enjoyed will go the way side.  The rest of the world is not making it easy for the dollar.  The Swiss have joined the Euro; yes, that is what happened today.  The BRICs have aligned against the Super Power.  No one is rooting for America, maybe not America itself.

Apparently America is very masochistic.  it was obvious it was sadistic by its insane war mongering, but now it has taken a turn into absolute complacency, and it shows no concern.  The problem is that everyone is focused on the men and women running the system, when the system itself is the problem.

Society is too self involved.  Everyone that has money is too concerned about keeping it.  Sharing is not in the mindset of the status quo.  Taking time away from a busy day to spend for the future's concern is too caring.  Caring is not cool.  People no longer care about their brothers and sisters.

Where are the hippies who pride themselves with sticking up for the common man?  Where are the Tea Partiers who understand, or rather, who understood, the main problem with the financial system is that the income tax is unconstitutional?  Where is everyone?

They are in their houses, these houses that have ended up owning them.  They are in the bars, reaching for the stars of the flag.  People have lost their foresight, and the turn has happened.  Society has lost its fabric, and the strings are unraveling right before our eyes.

Monday, September 5, 2011

Fall Price Targets

The first thing that will happen this week will be a fall in the DXY.  Obama will slice it up during his "Jobs Program" speech.  He will spend his way to bankruptcy, and say later he didn't know any better.  He didn't study economics, anyway.  It must be Bernanke's fault.

Once that happens gold will capitulate.  It will fall back to around $1850.  Then it will catch on the strong bid of the Euro.  The Euro is the stronger currencie of the two fiat because it trades for Mid East oil and Russian oil via a land bridge.  America needs to receive their oil via sea, and this is very expensive.  The other reason is that Euro bonds are getting cheap, and investors are going to cash.  The Euro is the safe haven currencie, not the dollar, because Bernanke will print his way to the end of the road, and Geithner will continue piling on the debt.

Once gold catches a bid around $1850, and it will only take a week or so, the next move will push it through $2k and onward.  Silver and oil will enjoy the death of the dollar, as they trade inversely to it.   Silver will find itself around $100 by the winter solstice.  Gold will be at $3300.  Oil will be at $150.

The Euro will test $2.00 this time next year.  It will not be a straight shot.  The fiats will continue to trade back and forth.  Other currencie that will rise are AUD, CAD, and the Swiss Franc.   As you can tell, I think the trend will revolve around the death of the dollar.

After the dollar dies, and that should happen in about a year, then the vacuum of fiat will suck them all into oblivion.  I think the DXY will be at 66 come this winter solstice.  By that time people might catch on to what is happening.  Maybe not.

Our Jobs, Our Companies

A job is not something that is permanent, and these corporations are not any ones persons corporations.  The corporations have no allegiance to anyone in particular.  They function apart from any code of ethics.  This is why they were created.

Instead of people being upset with a Rockefeller, now they become upset with Exxon, or BP.  The corporation is then fined, and life goes on, with no one held accountable.

So when people say "our jobs" and "our corporations" they do not understand, they are not ours.  They are temporary means of labor.  There is no permanent structure in fascism.  The only thing permanent is the corporations that tower over the world like a dangerous beast.

Sunday, September 4, 2011


In a few short weeks the world will visually find out what happens when a nuclear plant explodes and no precaution is taken.  Mothers in their first trimester when Fukashima blew are about to give birth to babies exposed to massive amounts of radiation.  The visual of broken DNA sequences will tip the world on the reality that it faces concerning what will be the greatest man made disaster in the history of this planet.

Saturday, September 3, 2011

It's September

Anyone familiar with this blog knows I thought, and still think, the big move in precious metals will happen this fall and winter.  I still believe that, even with gold's 10% plus move this summer.  Gold leverages the system, and the system is failing.  The leverage will have to be proportionally increased and with finance falling apart, gold is the only thing that will keep it together.

I think gold will need to rise a few hundred dollars every month to keep the numbers where they are now.  Interest rates want to rise and holding them back is inorganic.  Equity wants to drop and holding it up will kill fiat.  Killing fiat kills the ponzi.

Yet, this is what needs to happen to continue the front of recovery.  Obama's Job Program will do nothing but spend money short term and will not fuel growth.  The banks are failing because their balance sheets are underwater.  Economics still thinks that spending money now and paying for it later is the answer to create growth; there is nothing further from the truth when there is no revenue stream.

The river of growth has dried up due to poor irrigation techniques.  We are now stranded in the desert of the real.  There is nothing saving finance, except higher gold prices, since it is the gold loaned out by Central Banks that is their only performing assets.