Graceland Updates 4am-7am

Dec 18, 2009

1. George Soros has a team. They may simply be acquaintances, friends, or associates in related or even totally non-related businesses. But he refers on occasion to his team. Once a team exists, why bother mentioning specifics…..I agree.

2. I know some of you were disappointed yesterday. Gold fell only $48. I know, you wanted $50 to trigger a “weighty buy”. It didn’t happen, but that’s out of my hands. Some of you said, “ok ok I’ll pay up the extra $2, gimme some gold!”. We traded at $1100 in size. So those who were worried they were “too light” at 1225, well, your hourglass is refilling…When will it be time to turn it over? I guess when I get emails that feel like the ones I got at 1225. Only turned upside down…

3. What about gold land? What’s going on out there? Not much new, just the usual “I know I can identify the exact bottom this time!” If they say so…

4. One gold writer quoted Voltaire’s famous 1729 “Paper money eventually returns to its intrinsic value: zero” statement.

5. This isn’t 1729. It is 2009. Should gold become linked to any particular paper currency with some form of a gold standard, the paper currency road to zero would be halted, at least for a period of time.

6. Gold and the US dollar, in time, could be linked as friends. If I had to guess, I could see the US turning into a kind of Switzerland. The banksters appear to have hatched a plan 40 years ago to move the world’s manufacturing centre to China. They are executing on it perfectly. Is moving Switzerland to America the other half of the plan?

7. In time the US tax system could fall and be replaced with a money-attraction system. Until that time arrives? It looks rough. There are strong rumours that the US govt is currently has a major tax COLLECTION problem.

8. That problem is being exacerbated by the little-known fact that somewhere around $500 billion in taxes was CANCELLED during the 2008 crisis. Taxes owed by the BANKSTERS. That number could be VASTLY higher. It is a highly conservative number. The Gman decided YOU should pay it instead. And you will, like it or not. As an American, how does that make you FEEL about the Gman? Most Americans don’t understand what actually occurred during TARP. They were tarped and feathered. By the Gman and the banksters.

9. Continuing on a similar note, it’s very interesting that the BIS “knows” there was $382 billion in drug money laundered by the banks that “saved” the banks from the crisis, yet it’s “all clean” now and there’s nothing to be done. “We know exactly to the penny how much money they laundered, but there’s not one cent we can recover”….Sure…. The banksters are taunting YOU. They’re saying, “we just took in ALL the drug money cash, paid the riffraff dealers 10-20 cents on the buck, and now we have a few hundred billion in FREE MONEY and there’s nothing you can do about it. At the same time we blackmailed the Gman into cancelling near a trillion in taxes for us. You pay them for us or we’ll have the Gman throw you in the clink. Now… scram, we need time to work on our next mega scheme to rip you off.”

– Banksters, dec 2009.

10. The gold glass. Reggie Jackson used to tell his broker, “never call me when the market is down, I don’t need any negativity or bad news.” In terms of gold tactics, you can look at 1110 that way. The chartists will say, “1110 support broke, the door is open to 1070-1080. I don’t see it that way. I see gold as having ARRIVED at the 1100 buy marker. We can only HOPE we get to buy more gold at the next point of clarity at: Gold 1000. I don’t believe we will receive that gift, the gift of gold 1000, but we need to live in hope.

11. “I have ordered ten garbage cans. They are marked $1000, 900, 800, all the way to 100. At each marker, I plan to throw as much gold as possible into those garbage cans. My 1100 garbage can is full and the JP Morgan gold garbage truck just arrived to take away all the gold I threw into the $1100 garbage can. I thanked them for their excellent service. My $1000 and $900 garbage cans are much bigger, and JPM promises they will show up with whatever size truck is needed to service myself, and all my subscribers. As we place our gold, and ourselves, into the garbage cans.” –Joe Gold Writer. Dec 2009.

12. “10,000 dow. 9000 dow. That’s a 9 storey building. It’s possible that the Dow outperforms gold on the upside if hyperinflation occurs. Let’s stop linking the economy and earnings with the Dow. And if it doesn’t occur, and instead deflation occurs, then I want to own the Dow even MORE at the lower points of clarity. I keep banging the table that markets move on LIQUIDITY. The view that fundamentals drive liquidity is WRONG. It’s correct in a PARTIAL SENSE. But it is only ONE driver of liquidity movements. The Dow was VASTLY OVERVALUED in 1995 by all fundamental analysis. It continued higher for FIVE YEARS. You’ve seen a zillion tricks from the banksters. They understand how to drive liquidity flows better than anyone.

13. Having just returned from New York, I can vouch that this is true. When you are “on the ground” out there meeting people who have influence and monster capital that they MOVE, you realize that the reason people are placing huge money in Paulson’s gold fund is because of his real estate winning bet. Does winning in real estate make him a gold winner? No. Do the investors understand that real estate winning and gold winning are not necessarily correlated? Yes they do. Do they care? No they don’t.

14. Why did most of the world’s top money managers get BLOWN AWAY in the stock market in 2008? I’m talking about more than a MILLION money managers. And a BILLION investors. What do the leaders of my team understand better than any of you? Answer: Liquidity Flows. That’s why they are the champions they are, at what they do specifically. And it was why the banksters are at the top of the money pyramid. They understand Liquidity Flows better than everyone else.

15. To move money, whether in the market, or in business, is an art form. Can art be taught? Yes.

16. The Dow has 10 buy points of clarity. Gold has 11. There is a MANIACAL OBSESSION in the gold community with seeing the Dow and Gold trade at a one to one ratio. Out my market window, what I see is: They already are. Think big. Think big, in terms of points of clarity.

17. Oil has retraced all of yesterday’s losses and taken out this week’s highs, this morning. The $69 Oil Garbage Can is quite full. Did I expect to see this powerhouse price action today when I got up? No. Did I think I would be ringing my oil cash register today? No. NEVER ARGUE WHEN SOMEBODY PUTS AN ENVELOPE FULL OF MONEY UNDER YOUR DOORSTEP. THE FACTORY OWNER UNDERSTANDS THIS CONCEPT PERFECTLY. JUST TAKE THE ENVELOPE. KACHINGO….

18. Natural Gas. The profit-booking cash register was ringing yesterday. Some of you reported your NG sells cash register was “lighting up” like a Christmas tree. It’s a gas, gas, gas…

19. Most of you have forgotten about the grains market. One of you sent me an essay written by somebody discussing a food crisis in 2010. I don’t know about that, but if you look at corn for example, I see 4 points of buy clarity. $4 a bushel (we’re at that point now), 3, 2 and 1. Whatever happens on the upside, food is the only asset class that is a close competitor to gold for the title of world’s lowest risk investment. The corn house. 4 storeys high. So simple, yet so misunderstood. Most corn investors are really arsonists in their own home, with a death wish…

20. A word of caution: When a market begins trending sideways, strange things can happen mentally. Time is not always your friend. Don’t keep buying at the same price with a fantasy that price must “surely” turn up. Base your buys on price, not time. The banksters have unlimited patience, patience that goes into coming generations, not just their lifetime. Markets can trade sideways for a long long time, then turn down. Your “base” becomes a consolidation and you light on fire when price turns south. Respond to price, not time.

21. I got a mousepad in New York that is paper thin and lets my mouse move without friction. That, alone, was worth the price of the whole trip. I’m serious. I was beginning to think only Arnold Schwarzenegger could push my mouse around...

22. For some reason anyone with a Comcast email, it bounced back when I was in NY. Fine now. I’m looking into adding an additional sending mechanism to address that issue.

23. We end this week on the gold buy. Outstanding work on most of your “gold ranches”. Not one single “I’m afraid” email from one sub. Not one. Those who didn’t buy at least didn’t sell out in size, in failure. It’s still too early to know how January will play out. In the gold community, I’m seeing mostly “slop and chop” articles, which fits with the slop and chop trading action. The initial selling panic into 1110 has given way to broad-stroke articles about “general gold fundamentals” and “gold is going to a zillion dollars, later”. The traders tried to call a bottom at 1110 and blew up. Again. The losses are booked and they are moving back into gold pipedream mode.

24. The cot report comes out today. Covering the trading week from wed thru tues. I’ll post that on the site when it comes out. It’s looking more and more likely as though a significant dollar rally may be coming. The gold bears are dancing around right now. Simply ring your long USD cash register if you have long USD positions. Shorting the USD into strength while buying gold is overkill and right now it isn’t working. It’s important to keep your MENTAL STATE STRONG. So carrying a counter trend position (up to 30% of your main trend capital), regardless about what you THINK about that market, is a highly effective strategy. Ego in markets is deadly. The best traders are terrified of developing an ego.

25. Thanks to the firestorm of you renewing your subs this week. Some need to be processed manually. They will be.

26. Are we prepared to 2010? I will be spending the next 2 weeks in holiday mode. I’ll be working, but less hours and in a very relaxed state. My view is that now is not really the time to THINK nor ACT too much, except in response to price of course. Those who try to figure things out now with a huge effort are likely going to find themselves in a very weakened state come the New Year, a nervous wreck, when trends are highly likely to reveal themselves. Many investors will be too weak/strung out to take proper action then, even though the answers are being presented on a platter….

Cheers,

S “the gold waiter” t