Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
Aug 19, 2010
1. They call him the “King”. King of the bond markets! He’s Bill Gross, co-head of PIMCO, the world’s largest bond fund.
2. The “king” said this week that he thinks the US govt should consider taking over the home mortgage market completely. King Bill’s rationale is that the govt is able to offer low rates to home buyers while the private sector, including PIMCO, just can’t compete, and unless we get the rates that homeowners have to pay DOWN, there can’t be a revival of the good old “house prices to the sky on a credit card” engine, to power up the US economy.
3. King Bill also has coincidentally increased his holdings of US govt bonds quite substantially, [This seems to fit right in with what Antal Fekete, who is under a 'cone of silence', has been saying! See discussion on Making bond speculation risk-free at the bottom of this page. Thomson is saying that Geithner & Co will eventually have to pull the rug out from under this manipulation, which has been going on, with increasing intensity, since about 1980. (I may be over-simplifying, since Thomson is speaking in part of Fannie/Freddie debt while Fekete is speaking of T-bonds.) -FNC] so lower rates mean his funds make money.
4. The King may have a little problem on his hands, as not everyone is so keen on adding to the 5 trillion dollar sinkhole that is better known and as Fannie & Freddie, and is marked (to model?) OFF the US govt BALANCE SHEET.
5. As the King sits in his thrown on the top of his giant mound of bonds, he has a (very) vested interest in promoting the “house prices to infinity” theory of wealth building. One of the banksters’ leading front men is Tim “powderpuff” Geithner, who is “only” the head of the US Treasury, a position arguably more powerful than that held by Ben “Dr Pinocchio” Bernanke, head front man for the US Central Bank, home of the world’s largest photocopy machine, a machine owned and operated by the banksters, for the benefit of the banksters. Sorry to break the bad news to Elmer Fudd Public Investor, but yes, the central bank exists for the benefit of its OWNERS. It does NOT exist to fulfill Fudd’s price plopped and price-chased “home prices to infinity to build wealth on a credit card!” pipedream.
6. My view is that you have yet to see the teeth of Mr Geithner, and I think Bill “the King” Gross is vastly underestimating the real agenda being moved forwards by Tim, who is not a powderpuff but a TERMINATOR. Yesterday, the King of the bond market house of cards got a TINY glimpse of the very real teeth of Mr Geithner, as Tim said that rather than moving DEEPER into financing the revival of Elmer Fudd’s Fannie and Freddie home prices to the sky pipedream, what HE was considering was giving Fannie and Freddie an elegant FUNERAL. Millions of Fudd investors in Fannie and Freddie, already down about 90% on that “can’t lose” safety with growth wienerplay, stand to be wiped out totally as Geithner moves Fannie and Freddie into the CREMATORIUM for their “elegant funeral”. Does it really matter, if you are a wienerhead investor in Fannie and Freddie, if your financial funeral is elegant? “I lost everything, but I did it with style!”- Elmer Fudd Fannie & Freddie investor.
7. For NOW, Tim “THE BOND MARKET TERMINATOR” Geithner will continue to wear his powderpuff mask, continue to backstop Fudd in his mentally retarded actions to buy MORE housing, thinking it’s all going to restart again. Fudd is buying the housing dips like he bought Nortel when it went to $90 from $120. On the road to $1.
8. I had people with MBA degrees telling me at $90 that buying Nortel was FREE MONEY. It was the same with Citigroup at $40, and Fudd is doing it AGAIN with HOUSING.
9. Remember that only Tim Geithner has legal power to devalue the US dollar. NOT Ben Bernanke. Ben is an AGENT for the Treasury when it comes to any decision to REVALUE gold higher, any decision tomassively DEVALUE Elmer Fudd Public Investor’s total net worth, as OFFICIAL GOVT POLICY.
10. Tim is not a powderpuff, he’s a TERMINATOR, and his boss is theGOLD PUNISHER.
11. A picture speaks a thousand words. Here’s Tim “The Bond Market Terminator”, looking at Bill “King of the bond market house of cards” Gross. YOU tell me who looks like a TERMINATOR and who looks like a DEAD MAN. Click the link to view:
12. The Terminator Looks At His Dinner
13. Kachingo Mania is back in town in the wheat and corn markets this morning. After falling to the “it’s all over, people will stop eating from now on, the CEO of Fannie says so” low point of 6.45 a bushel yesterday, wheat has surged about 30 cents to the 6.75 cash register kachingo level, and has taken out a supply trendline.
14. Some of you have asked me about using futures in the food markets. If you are KING KONG, and you can EASILY buy HUNDREDS of contracts of corn big contracts that are FULLY PAID FOR, then you don’t need to waste time in playing with ETFs, ETCs, and other funds. The bottom line in ANY market is you need BULLETS in your GUN. The more bullets you can employ without going into the pain zone, the irrational decision-making zone, the “none of this is my fault, gimme more paper money in the blast furnace before I lose everything on my price-chased price plop” zone, the more you stand to BUILD WEALTH without BLOWING UP.
15. A corn MINI contract is 1000 bushels. One of you mentioned there is a 100 ounce contract somewhere, but I don’t know where that is, and it is likely at OTC contract, not an exchange contract thru a clearing house. It could still be ok for some money, but you want to be careful of placing large monies in items that trade with no clearinghouse.
16. Remember that futures contracts in some ways are SAFER than stocks, because the CLEARINGHOUSE settles the CASH ACTION between the winners and the losers in the futures markets on a DAILY BASIS. If you bought gold futures at $1160, there was a wienerhead that shorted it as you bought, and if the wienerhead is still alive here at $1230, the clearing house has transferred $70 of CASH from the wienerhead’s account to YOURS. That’s done DAILY. Stocks have a 3 day settlement. Futures are settled THE SAME DAY. It’s not a big issue in normal markets, but it’s a fact worth keeping in mind and especially when large monies are on the line. As people like KingKong get a handle on the power of the Pgen, large monies are going to flow and system-safety is a priority.
17. The mini contract for corn is worth about $4200 at today’s prices. The big one is about $21,000. That means it costs you a MINIMUM of $4200 per “share” of corn. When operating your pgen, can you AFFORD enough $4200 bullets?
18. For most of you, the answer is: YES. Some of you can afford a pgen using $4200 bullets, but you want to be a player over a tighter gridline of price points, and that’s where the ETF type funds can help manage your PRICE PLOPPING [price plopping is his term for bottom or top calling with all your money at one price point instead of buying weakness or selling strength at many price points] risk. With GOLD, the mini contract is about $40,000, and the big one about $120,000.
19. The decision to use futures contracts or not depends on how tight your buy increments are. I’ll post a mini corn futures pgen on the site after sending out this update. What you need to do in the pgen to make it into afutures pgen is enter the “share price” for corn as the VALUE OF THE CONTRACT. So you enter $4000, not $4. That will tell you how many contracts you can do, laid out in a buy/sell pgen.
20. If you use LEVERAGE in the market, you need to either use a STOP LOSS, or have the capital on hand to put in the account if price declines to the point where you face liquidation. You need to REALLY have the capital available, not PRETEND to have it while “knowing” you won’t need it because you “know” where the mkt is going…The stop loss could be a MONEY stop loss or a TIME stop loss. With OPTIONS, you really are dealing with a TIME stoploss. An option has an expiry date, and if price is below the “strike price”, it expires WORTHLESS, but no matter how far the price falls, you can’t lose any more than the money you paid for the option.
21. I rang the GOLD cash register as we surged above $1230. There’s a DEAD feeling out there in the gold community, with those who bailed at 1200, having watched gold fall to 1160, where they bought ZERO, because even some of the BEST technicians thought we were going lower, likely to 1130 or LOWER. Oh well, another failed market prediction for them, another load of BOOKED WINS for you!
22. While those of you who bought 1200, 1190, 1180, 1170, and 1160 with your PGENS may now wish you’d bought MORE, the fact is at 1160, most wished they hadn’t bought ANY at that point.
23. NOW, of course, we all “know” that 1160 was the bottom, and we all know we should have bet the ranch on 1160. What you are going to see, of course, is a wave of bottom callers surge forwards now, claiming they went long at the bottom, or at least stayed strong, when the reality is they liquidated into the tanking and are buying it back now, afraid gold will REALLY RUN and they’ll be left behind.
24. I don’t think gold is QUITE ready to REALLY RUN, but when it DOES, I’m afraid the price chasers will NOT be participating in anything but a devaluation of their toilet paper money. Maybe they can try and ask the pawn shop for a refund on all the gold they sold at a 40% markdown. That in itself is probably good for a few bags of Orville Renenbacher’s best, for us. “Can I trade my toilet paper money ashes for gold now?” –Elmer Fudd, at gold $3000. “Sorry, MORON, gold BUYING is BANNED now, stop bothering us or we’ll have you ARRESTED.” –banksters, at gold $3000?
25. Fudd is going to learn a whole new definition of REALITY at gold $3000, courtesy of the GOLD PUNISHER. Gold doesn’t trade at $2000 or $3000 on GOOD NEWS. Gold is the financial thermometer of the WORLD, and gold $3000 says most of the world will have financial CANCER. Gold $6000 says they have EBOLA. Gold $80,000, which is the current VALUE of gold according to GOLDPRIEST, who handles gold dealing for GoldLion, is ARMAGEDDON. If GoldPriest includes a range of zero to twenty cents on the dollar for the market price of $300 trillion of otc derivatives, I wonder what number he gets as the marked to model price for GOLD? We’ve heard all the bullcrap marked to model pricing for various DEBT assets. Let’s do a marked to model pricing for GOLD! Based on marking a quadrillion dollars of worthless GARBAGE to MARKET.
26. The bottom line: Attention all paperbugs: Your party is OVER. PERMANENTLY. Ha! Ha! Ha! Get your diapers and run to mommy & daddy Gman. There’s no mommy there waiting for you, just a BOND MARKET TERMINATOR.
27. Click here now to view another shot of Tim Geithner and as he ponders Elmer Fudd’s “growth with safety” price plopped plan of action:
29. I told you all gold goes on the AGGRESSIVE in 2010. Anyone still think I’m WRONG?
30. ALL that the gold bears THOUGHT would happen to gold NOW, is VERY likely to happen, but ONLY TEMPORARILY and from muchhigher prices.
31. I’m in the final stages of preparing things for those of you who asked me to do a fund, so the next 2 days may or may not see me miss some postings on Graceland and on Juniors. On the other hand, maybe I ramp things up even MORE, in an adrenaline-fuelled PGEN FRENZY!
32. The Bank of Montreal Gold Juniors ETF has BLASTED thru its highs, stunning the lobotomized bears. I wonder if team Space Rocks Alignment noticed the BLACK HOLE in front of their alignment of space rocks. Instead of crashing, gold juniors are LEADING GOLD HIGHER! I’m an owner and a “pgenner” of the BMO ZJG.to item.
33. How do YOU spell Kachingo? I spell it:
ZJG and GDXJ !!!
Are You Prepared…. Prepared For The Party?!
Grid Time. See You Out There!
Thank-you
Stewart Thomson
Graceland Updates
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From 20071101 articles_AEFTheShadowPyramid.html reprinted below for convenience.
Making bond speculation risk-free
But how can the government persuade bond speculators, arguably the smartest lot in finance, to do its bidding? Well, that’s just the thing. The government has to make bond speculation on the bull side of the market risk free. That is a tall order. How can it be pulled off?
Here is how. Speculators are encouraged to build up large inventories of T-bonds and “hedge” their long position in the futures market. That’s the tricky part. Simple hedging won’t do. The hedges must also be hedged.
In effect, the government legalizes unlimited short selling of T-bonds thereby creating unlimited demand for them. As [And?] any demand for bonds when fine-tuned is expected to result in a declining long-term rate of interest. To guard against the danger of falling interest rates spreading the fire to falling prices, the central bank stands ready to hose down the price-decline with liquidity. The arsonist is girding [presenting] himself as a fire-fighter.
In the absence of unlimited short selling the value of dollar-denominated bonds would be devastated [by bond vigilantes] even before that of the dollar. But as the recent sub-prime crisis has demonstrated, this is not what is happening. There is hardly a ripple-effect in the bond market even after the value of the dollar is shattered. Bond hedges do work. Bond values can be insulated from the vicissitudes of the dollar by the layered structure of the shadow pyramid.