Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
Aug 12, 2010
1. Goldman Sachs. Some of you pointed out that GS has a $1300 target for gold now. I have ZeroHedge.com news piped in on my site. If you go to the “Hot News” tab on the top right hand corner of the Graceland site, you see ZeroHedge in there.
2. The “banksters” are not the regular research analysts at Goldman Sachs or JP Morgan, generally speaking. They are the nominee shareholder families that control the entire banking system globally, including most of the central banks.
3. It’s tempting to assume that anything GS says is a lie or should be taken in reverse. That’s going to cause you to lose money, a lot of money. Most of the analysts at these banking institutions don’t even know what a bankster is, let alone operate as one themselves.
4. There is no bankster crew of evil analysts operating in the banks with their names out in the open, while taking the other side of the customers’ trades. The “dark side” of the banks is within the proprietary trading departments, and you’ll never see those people in the public eye, let alone publishing research reports for the banks.
5. The latest Goldman analysis of the gold market is SOLID, and their $1300 tgt for year-end is reasonable, given their view that QE is ramped up in late 2010 and early 2011. I’d suggest you read the paper. Again, you’ll find it by clicking “Hot News” and it’s called “Goldman goes goo-goo for gold”. The last thing on the planet those two analysts that wrote that report are is BANKSTERS.
6. If you look at the operation of the comex trading in the NIGHT, those two analysts are simply not capable of the intense work required to stare at the bids and asks all night long and create the kind of set-ups and painted charts to pick the pockets of the fundsters. Those are BANKSTER TRADERS and they have an entirely different AGENDA than the bank ANALYSTS who are just highly intelligent regular joes. It is the bankster traders that you need to worry about that NEVER show their face, not the analysts. ALL those traders care about is money flows and margin positions and buy and sell orders IN THE MARKET. They are warriors, not analysts.
7. That goldman report is a POSITIVE for gold and will attract some of their high net worth business owner clients to take SOLID gold positions for the long term, not futures trade flips. There is the odd statement made by Goldman and Morgan analysts that have a “bankster tint”, but it’s not very often.
8. The Goldman analysts go on to voice their view that 2010 and 2011 should see gold HIGHER, but then in 2012 as rates begin to rise, gold gets hit. OK, this is where the UNKNOWN comes into play. Modestly rising rates generally ARE a NEGATIVE for gold prices against paper money. SOARING rates, however, are the ULTIMATE POSITIVE for gold.
9. Those goldman analysts don’t believe rates will soar. The level of OTC derivatives marking to model is so enormous, that the total collapse of US bond market PRICE is a real possibility. Whether it HAPPENS or not, we can’t know. I’ve told you that the T-bond could go to 200, or even 500, if the crisis drags on and on, and Ben Bernanke is able to “extend and pretend” with QE for much longer than what seems rational. By definition, as rates go closer to zero, price of the bonds moves EXPONENTIALLY higher, and the VELOCITY of that price rise INCREASES. Bottom Line: Shorting the bonds other than as a GAMBLE TRADE is MADNESS.
10. A number of SUPERB technical analysts tried to top-call the bond recently (and since 2000). A big head and shoulders was built. The neckline at the 113 area held. Here it is:
12. The analysts IGNORED the fact that the right shoulder was taken out by QUEEN PRICE on the UPSIDE. I told you that when price moves above the right shoulder high of a SIGNIFICANT h&s top, you can have a HUGE move to the upside.
13. You can’t play technician and stare into the eyes of Dr. Pinocchio with his printing press and expect to win, and then when your OWN CHARTS give a MASSIVE BUY SIGNAL ON THE BOND, you still stand there looking at Big Ben clutching your crackerjack box full of bond market PUT OPTIONS expecting to MAKE MONEY. All you “make” is a fool of yourself.
14. What 90% of the gold community totally fails to understand is that when you own a printing press, you can buy the bond market price to INFINITY. There’s a COST to that GAME, which is the DESTRUCTION of the world’s reserve currency, the US dollar.
15. Fundamentally, the US bond market is a PIECE OF GARBAGE. That does NOT mean price goes DOWN. This is not 1979. Rising rates now mean the IMPLOSION of TRILLIONS in interest rate OTC derivatives and INSTANT breadlines for MILLIONS. What Ben “Dr. Pinocchio” Bernanke is doing with his bond mkt buy program, in plain English, is: He’s marking the bond to model, but doing it with real money that comes out of an electronic printing press. The amount of money he can print BEFORE destroying the currency makes China’s US T-bond bond mkt holdings look like a PEANUT PLAY. $800 billion in price chased US t-bond holdings versus the man in command of the world’s reserve currency printing press? It’s not even a fight. Ben Bernanke has a 100% chance of winning, by DEFINTION.
16. The upside pop over the head and shoulders at 124 on the T-bond signalled “something big” was in the air. The latest FOMC statement was that something. The banksters pumped the media with stories that the stock market could soar as the FOMC would be “forced” to announce an IMMEDIATE big QE rampup. I see those media stories as a bankster sidegame to blow out some new longs in the stk mkt, some new price chasers. That’s what happened. WHAT the FOMC announced, in my view, is that “things are much worse than you think, and our bankster bosses are in control, not you, and we will announce a rampup of QE, but not until we DUMP THE NEXT PHASE OF CRISIS ON YOUR HEAD AND TAKE MORE OF YOUR MONEY, HA HA HA!” That’s EXACTLY how I took the FOMC statement.
17. If you own bonds for YIELD AND SAFETY, you are better to own GOLD. If you own T-bonds for PRICE APPRECIATION, you may be shocked at how much money you make, shocked at how high price goes. Shorting the bond is like writing a check to the banksters, a charitable donation. More money has been lost by hedge fund managers, and the gold community, trying to top-call the bond, than any trade I can think of, over the past 5 years. Actions like ignoring the upside move over the right shoulder are just another sign of the MANIACAL OBSESSION with shorting the bond. Try reducing your bond short trade size by “only” 99%. That way you kill the obsessive urge that you “gotta be in” on the bond top, as if it’s written in the US constitution that gold players have to be short the bond. You WILL be in, but with MICRO MONEY. And the ten ZILLION losses you’ll BOOK on the road to your “I got the bond top, I called it” flag plant, will not HARM you financially. A WIN WIN deal, yes? It could be months or MANY MANY years before bonds fall to the level where I’ll buy them for THIRTY YEARS OF INCOME. The LATTER is MUCH MORE LIKELY, a wait of MANY YEARS. Extreme patience is required and I’m not going to waste time shorting a major asset in a one-time timing play, when I’ll make probably 10 to 100 TIMES more money, by buying the bond AFTER it’s played humpty dumpty on the CEMENT and the banksters order the govt to back the currency with gold as they buy the bond.
18. Because the amount of bonds issued by THAT point will be ENORMOUS, it will allow the banksters to buy MIND BOGGLING amounts of t-bonds. As they buy, you can bet your bottom dollar that the destruction of the paper currencies and the bond market is ENDED as they THREATEN the govt into taking major austerity measures SO THEY GET PAID THEIR MONEY FOR 30 YEARS, ALL OF IT.
19. Fundamentally, for the bond mkt to collapse, I believe QE must be deemed either a success or a failure by institutional money managers en masse, and maybe the same for gold revaluation. We’re at none of those points now. The bond could STILL rise even if QE AND gold revaluation fail. We could go into money printing as OFFICIAL FED POLICY, and the bond could be bought with obscene amounts of monopoly money, driving price higher while the currency collapses and gold goes into the stratosphere while Fudd grovels on the breadline.
20. The daily and weekly chart oscillators for the bond are overbought, but the monthly chart shows massive buy signals across the board. If you want to play ant in front of Ben Bernanke’s steamroller and believe you’ll win, my suggestion is to buy a TINY amount of bond mkt put options once a quarter. Eventually it bites the dust and you’ll be “KING OF THE BOND MARKET TOP CALLERS”. Will you build any WEALTH with this strategy? No. But it will kill the urge to short the bond with big money NOW and many have done for the past FIVE YEARS OBSESSIVELY, causing BIG BOOKED LOSSES, based on the various hair-brained bond mkt analysis that seems NEVER-ENDING in the gold community. You’re here to make money, not put a flag on top of the bond mkt. Let’s do it. I guarantee you little, but I guarantee you that on EVERY 10 point decline in the bond price, a MOUNTAIN of gold community and fundster analysts will SURGE forwards crowing, “the top is in, this time I got it.” End the insanity today.
21. I HATE losing money and one of the surest ways to ensure I lose is to confuse what I WANT to happen (the bond to tank) with what IS happening (the unlimited money of the Fed’s printing press is overcoming all sellers as a stated policy and one carried out clearly in ACTION).
22. Likewise, WANTING a gold standard to return, and fooling myself that the current BANKSTER GAME of blowing up paper money with OTCD’s and then selling their gold to the taxpayers at NOSEBLEED prices to “save them” is NOT the gold standard that will be here to stay. It’s a GAME. When the banksters bring in a gold standard when gold is in the TANK against paper money, then you have COMMON SENSE and ALTRUISM in play. All we’re involved in here and now, is a giant bankster scheme to make themselves quadrillionaires. The loading up of the central banks with debt is WEAKENING those institutions, and the banksters know EXACTLY what they are doing and why. You can’t have a global central bank if you don’t have a pile of national central banks in CRISIS. You put somebody in FINANCIAL crisis mode by ensuring they CAN’T PAY WHAT THEY OWE.
23. You’re watching, LIVE, as the banksters turn the central banks of the world into debt soaked pieces of junk issuing toilet paper for money. This is the STARTING GATE of that game, not the REDLINE POINT. What made the statement of the FOMC scumbags so important was that it’s now OFFICIAL POLICY of central banks, lead by America, to BE IN DEBT. Is that GOOD?
24. Would YOU make it official policy to carry a huge FLOOR of debt on your CREDIT CARD? That’s INSANE and a plan to BANKRUPT yourself.
25. I’ve told you many times that the banksters would make the most money by BANKRUPTING THEIR OWN CORPORATE ENTITIES, and they HAVE. Now the game is to bankrupt the central banks, and they’ll make trillions loading the central banks up with debt for YEARS, and make QUADRILLIONS blowing it all to bits after that.
26. It’s most likely that the game to destroy the individual central banks plays out down the road, perhaps decades down the road. Think of how many of you, and people you know, got in the bunker mentality in 1980. I know people that moved to the desert and onto farms with gold buried in a hole they bought at $500 and higher, WHILE THE BANKSTERS SOLD BILLIONS IN GOLD TO THE PUBLIC INVESTOR MORONS WHO LINED UP IN THE STREET FOR IT, AND THE BANKSTERS LAUGHED AND BOUGHT US T-BONDS YIELDING 14% A YEAR FOR 30 YEARS AND GOLD NOSEDIVED AGAINST PAPER MONEY. The bunker brigade thought that national govt debt had REDLINED in 1980. It was JUST STARTING!!!
27. The destruction of the system of individual central banks could see the level of debt held by these institutions go into the QUADRILLIONS. Why? Because the banksters WANT THAT MONEY. They will make money from commissions, interest, and spreads selling the central banks the debt GAME as the central bank beach ball gets inflated. It will go on and on and on, apparently redlining, and then going on and on and “impossibly” on, higher and higher. Finally, when coming generations of Elmer Fudd WIENERHEADS are indoctrinated that “gold is toilet paper, and central bank toilet paper is God, and the stock market is a new era, and what happened in 2000 will never happen again, so buy to the sky on your credit card before your dog gets ahead of you”, the banksters will unleash a crisis on the central bank system, and a huge array of laws and powers will be placed with a global govt and central bank to “save us all”.
28. Let’s stay focused on what we DON’T KNOW if we want to stay focused on MAKING MONEY. Maybe gold soars this fall, I think it does. Whether it does or doesn’t won’t change the big picture and the banksters are masters at delaying and twisting the APPEARANCE of the big picture so it appears to have CHANGED. Against what the banksters are doing, whether gold drops $100 or rises $100 is totally meaningless.
29. Both Mr. Macro and I feel predicting whether we go to 1160 or 1225 is a coin toss. Think about the really big picture. When the central bank crisis hits, probably decades from now, gold will probably go to $100,000 or more. It’s risen 600 TIMES in price over the past 100 yrs. In the next 100 yrs, without a real permanent gold standard, gold could go to a MILLION, and that’s JUST at the rate of increase of the past 100 yrs. Do YOU think the BANKSTERS want a PERMANENT gold standard? I don’t. I think they want a gold standard GAME and they already have it in play, and have had it in play for hundreds of years, and arguably THOUSANDS of years. I’d argue that the door is open to that 600 times rate of gold price velocity against paper money INCREASING.
30. I was EXTREMELY impressed with the ability of gold to hold its own yesterday, and be UP this morning, against the backdrop of the USdollar rising and the stk mkts tanking.
31. I hope today’s update has given you additional STRENGTH to HOLD your core positions, and to buy ANY weakness that transpires from HERE. Gold is “knocking” on the door of the highs of the past 2 days as I send this off. Attention all cash register personnel. Please report for duty with ear muffs at the ready!
Thank-you
Stewart Thomson
Graceland Updates