Graceland Updates 4am-7am

Sep 8, 2010

1. I post the email count a few times a week, so it goes DOWN. The excessive number of emails in there is caused by me. By me FAILING to organize myself correctly, which I’m slowly addressing. It’s NOT caused by YOU sending too many emails. Keep that in mind. Just remember to send me reminders if you want to hear back and have not.

2. The year was 1999. Business owners around the world were involved in the stock market, in a FRENZY. The banksters were 100% successful in pushing their propaganda that “this time is different”. It was. The losses for the price-chasers were bigger. Investors had accounts with 3,4,5,6, even 7 different advisors. Every strategy in the world was employed.

3. Every strategy except buying at more than one price point.

4. If you are not diversified over price, you are not diversified at all, and in the eyes of the trillionaire banksters, you are a MORON and a MARK.

5. As 1999 rolled on, the banksters hadn’t laughed so hard since 1929, as they sold stock to all comers, all price chasers, all morons, all marks. King Kong sent me a note he sent to one of his buddies, worth hundreds of millions, over the weekend. The fellow is loaded up on muni bonds. Kong said, “At market tops, people tend to come up with NONSENSICAL reasons why it can’t end.”

6. To that, and to those of you involved in accumulating natgas and uranium, I’ll add: At market bottoms, it is the SAME. Investors come up with equally NONSENSICAL reasons why price can’t rise, why it has to keep going down to serve his fears, his terror, and to serve the diaper companies.

7. The fact there’s a natural gas GLUT has ZERO to do with natgas bottoming. If there was a SHORTAGE, price wouldn’t be low, it would be HIGH. DUH….You buy when there’s a glut, when Fudd is in liquidation mode, when ALL those around you KNOW it’s not only going down, but going to STAY down. That’s how to WIN. I don’t play to lose in the market. When I told my people in 1999 that Arthur Ziekel, head of Merrill Lynch Asset Management, had told me on the phone, “it’s 1929 again”, some listened and moved, gradually, into gold and immediately and totally out of the stk mkt. Others consulted their price-chasing advisors and came back with a PARADE of NONSENSICAL reasons why stocks could be permanently in a “new era” of 100 to 1 PE ratios, WHILE THE BANKSTERS WERE IN LIQUIDATION MODE.

8. CHILDISH NONSENSE.

9. The end of the ride in the bond market could start a whole new and bigger leg in the CRISIS. Pension funds are underwater, but have made progress since the bond markets have soared. WHO do they SELL TO, if they wake up and realize the fundamentals and liquidity flows of that market are NONSENSICAL?

10. That is the greatest error in analysing the market. The failure to understand that when the public and the funds are ALL IN on an asset class, HOW does it go HIGHER? When the banksters are on the OTHER side of that trade, the answer is: It DOESN’T. The answer is:

11. Lights out. Bedtime in the financial coffin for the public price chaser.

12. GoldLion, the world’s greatest juniors trader, told me a couple of months ago, that his average of 100 wins a week could go to 200, as the juniors “Golden Popcorn” theme became dominant. For those of you signed on Graceland Juniors, you saw he bagged 100 wins YESTERDAY alone in the GJr Top Ten Takeover Candidates list of juniors, and suggested if YOU have a package of juniors YOU should have got at least TEN wins. Whatever the number is, it shouldn’t be ZERO.

13. Think hard about 1156. What was the theme? Uncertainty. Nervousness. And…BUYING. This is 1256, not 1156. The theme is…Good Times that get BETTER, smiles when looking at account values, and….the cold hard reality ofPROFIT BOOKING.

14. I want you to picture the American ARMED FORCES in a MAJOR WAR. The REALITY is that some groups of the force are going to be in ADVANCE mode, some in RETREAT mode. Some will be using SMALL ARMS FIRE, and others will be using BIG GUNS. That’s the simplest explanation of the PLAYER versus the TRADER. In one account you might be buying Gold every 2 dollars down, selling every $6 up. In another, you are buying gold call options for a major home run. All strategies are working together as a total FORCE. Would you, as President of the United States, order ALL your Armed Forces to have ONLY nuclear weapons? No ships, no tanks, no fighter jets, no marines, no machine guns? Would you order them ALL to use only handguns? No aircraft carriers, just speedboats? Obviously NOT.

15. 99% of the time, the PGEN rules ALL. But 1% of the time, a possible reward/risk SUPERPLAY appears. If the GDX takes out the highs, I see it like Gold taking out 1033 as bullion rose up from 970. I called market PLAYERS to the starting gate as gold rallied to $970, and APPEARED set to LAUNCH. We can’t know if GDX will launch or not, and those demanding an answer should go home to mommy where all their answers await them in black and white 100%-for-sure letterhead.

16. That CALL I just made created huge CONFUSION amongst many of you. What? Stewart is saying buy strength? I called PLAYERS to the starting gate, not PGENS. While 99% of what I do involves the PGEN, I do make the odd market CALL that price could have a HUGE MOVE, and I see that time as NOW for gold stocks, and, NO, it is NOT a call to stop using your NUCLEAR WEAPONS ARSENAL PGEN.

17. The next 12 months offer, in my view, an APPARENT EXTRAORDINARY balancing of reward to risk in the gold stocks market.

18. For those of you who are wondering what I think about bullion, here it is: I think we’re nearer the end of the gold BULLION bull market than the beginning, but gold STOCKS will probably rise for anther TEN OR FIFTEEN YEARS, because the “end” of the gold bull market is NOT going to be like the 1970’s, not at all.

19. This is a FEAR based bull market in gold, not a 1970s GREED market. In the 1930s, gold revaluation was used as a TOOL to END the crisis. (or, if you prefer, as a tool to impoverish Elmer Fudd in the paper money blast furnace, after barbequing the moron in the stock market).

20. This coming “gold standard” is about locking gold to DEBT LEVELS. Not to a DOLLAR PRICE. In practical terms, it will be locked to a dollar price, but that is a peripheral EFFECT of the DEBT LOCK. The crisis is about DEBT first, dollars second.

21. Some of you might be concerned that the gold price could stop rising sooner than you “plan”. I want you to think carefully about what I’m about to say, because if you understand it, and apply it, you have IN YOUR LAP, as close to a FREE MONEY party TOOL, as anything you’ve EVER experienced in the MARKET.

22. Debt is out of control. That’s what a crisis IS, an item that is OUT OF CONTROL. Out of control debt means your ASSETS, your NET WORTH, is overwhelmed by LIABILITIES. The Gman, lead by Timmy THE TERMINATOR Geithner, will soon seek to CONTROL the debt level. Not end it. CONTROL IT. Institutional money managers want to see a market under CONTROL. That ATTRACTS capital. The only mechanism to CONTROL debt is: GOLD.

23. The banksters run the financial system. They INVENTED it, and the system is based on GOLD, not PAPER MONEY. When they want the world soaked in DEBT, they REDUCE the amt of gold the taxpayers own. When they want debt reduced, they INCREASE the amt of gold in the system, or the value of the existing gold, or both. All is done with the first and foremost goal of making a profit for THEMSELVES. Most in the gold community think the banksters don’t understand gold, or they hate it. That is totally NONSENSICAL.

24. They run the system, and run it with GOLD. “Gold is money, and nothing else.” –JP Morgan, 1913. “The photocopy machine is my God.” –Elmer Fudd, 2010.

25. Let’s get back to today, and why the coming implementation of gold, again, as a debt control mechanism is going to make some of you rich, and most of you RICHER THAN YOU ALREADY ARE! Here’s the answer:

26. When gold is locked to the level of US Gman debt (and as a wild card, locked to total debt including private debt, but I don’t see that happening since the Gman will never really admit that the taxpayers, not himself, OWN the gold), it will be maintained in place by central bank policy, central bank buy programs. It’s not like the 1930s, where the population owned gold, and knew what gold IS. The Gman had to take away Elmer Fudd’s gold because that’s where a lot of wealth existed, in gold held by Fudd. Now, the banksters have successfully brainwashed Fudd to the point he’ll unload any leftover bits of gold at a PAWN SHOP if the Gman tells him to do it. Fudd, for all intents and purposes, owns NO GOLD.

27. Gold, as a debt control mechanism, is structured such that if the Gman wants to issue more debt, he can, but the NET WORTH IN DOLLARS of the Gman’s gold horde must remain in a CONSTANT RATIO to that debt. Whether there is 8000 tons in Fort Knox and the New York Fed Vaults, or 8 ounces, it doesn’t matter. What matters is how much gold the Gman claims is there. That’s what the ratio is based on, the CLAIM. I personally think it’s there, but it’s been leased to the banksters, by themselves.

28. So, going forward, if the Gman has 20 trillion in debt, and he wants to borrow another 2 trillion (to make another 2000 laws or whatever), he CAN, but the central bank(s) now have to either REVALUE the US Govt gold horde HIGHER in dollars per ounce, OR buy more gold, to maintain the CONSTANT GOLD HORDE NET WORTH TO DEBT RATIO.

29. So, unlike the 1930s, gold is locked in more of a price BAND, than a single price POINT. Either way, Fudd is locked into a lower net worth, PERMANENTLY. The gold community is waiting for a “third speculative phase”. WRONG. The market will likely end with gold LOCKED in a PRICE BAND via the DEBT RATIO. Gold will likely RANGE TRADE at a PERMANENTLY HIGHER PRICE. There’s not going to be any 3^rd speculative phase. Fudd won’t be participating. He’ll be DEVALUED, just like he was in the 1930s, and so will all his price-chasing advisors be DEVALUED.

30. By the BANKSTERS.

31. If Fudd is LUCKY, he’ll just get to live out the next 20-50 years at a lower standard of living on a 50 year debt PAYMENT plan to the BANKSTERS. If he’s UNLUCKY, he goes to the BREADLINE.

32. For YOU, it’s going to be the ULTIMATE GOLD BULLION SUPERPARTY.Why? Because a RANGE TRADE is as close to FREE MONEY as it gets with the PGEN. Imagine gold trading in a $500 range, up and down, for 20 YEARS!!!!

33. I’ve tried to tell you in the past that the biggest money is made in markets that nobody cares about, as they appear to WALLOW sideways. When that action is OFFICIAL CENTRAL BANK POLICY, The PGEN is like a GOBBLING TURKEY.

34. While bullion is LOCKED HIGH, gold stocks are going to LOVE the lock, and probably soar higher for ANOTHER TEN OR FIFTEEN YEARS.

35. The only question is when does the lock occur. OK, here’s the answer: You know that Fudd, or Joe Blow, or whatever you want to call the price chasing moron, is OBSESSED with the “growth with safety” SCAM the banksters sold him. He refuses to acknowledge that it could even POSSIBLY end, let alone that it WILL end, let alone that he’s in a paper money BLAST FURNACE operated by the BANKSTERS. The lock comes AFTER the banksters turn ON the furnace, and burn Fudd and his NOgrowth with NOsafety clown act to ASHES. It is THEN, with Fudd DEVALUED, that they lock gold to debt levels, to “save” Fudd from further debt growth pain.

36. Why would they lock gold now? They won’t. They want Fudd’s bonds. But not at these prices. Not at anything even REMOTELY resembling these prices. Look at the stock market, look at what they did to Fudd there. They TOOK his stocks, AFTER mangling the moron. It will be the SAME in the bond market, only the stakes are VASTLY higher.

37. The banksters don’t want to buy Gman toilet paper bonds backed by a photocopy machine. They want bonds backed by MONEY, which means backed by GOLD. Paper money is DEBT. Gold is MONEY. Never forget that fact, because the banksters LIVE by that reality. The gold to debt ratio lock is a quasi gold standard, and provides a BACKING to paper money debt the banksters seek to ACQUIRE from FUDD.

38. Guessing about what price the lock occurs is interesting, but I don’t see the GAIN for YOU in guessing at it. We’ll adjust our PGENS as the answer becomes more apparent. Focus on trading the range WHEN it occurs and BUYING BONDS FROM FUDD AS IT OCCURS. Fudd will be selling his bonds to PAY BILLS, NOT TO BUY GOLD JUNIORS!!! Some of you are spinning your golden wagon wheels in the mud trying to short bonds, now, as a BIG PLAY. The GDXJ and the juniors sector, and GDX itself, are the BIG PLAY. Look at the percentages. MANY gold stocks are up 20% to 100% in TWO MONTHS!!! Shorting bonds is INEFFICIENT other than as a GAMBLING PLAY with SMALL GAMBLING MONEY.

39. Let’s get out there on the Grid and take some names. Remember 1999. The move from gold 1156 to 1256 is not 1999, but all market moves are microcosms of the same human emotions. As price goes higher, the WANT for price to continue higher begins to overwhelm rational thought. Some of you who set tight range pgens will think, “but gold has to correct soon, right?” Wrong. It MIGHT correct, crash, go sideways, or go HIGHER, way higher. If that is YOU, do NOT sell your core positions to “stay in the game”. That’s not staying in the game. It’s NONSENSE. Limit the nonsense to MINIMAL cannibal acts on your core,especially now.

40. On the other hand, some of you are underestimating what the banksters can do to you, MENTALLY, by taking price DOWN, even modestly. You are acting like a PLAYER with your trading positions into this strength. PGEN trading positions are sold into strength and bought into weakness. If gold rises for a period of time while you are OUT, and you are FREAKING OUT, then you need to set a new pgen rather than PLOP into the market with crazed buying because you “know” you are going to be left behind. Set a peak at 1400 if need be, and a base at 1260, so you are in the game, but not a MARK.

41. I KNOW that some of your technical analysis heros have recently TOTALLY FAILED YOU. They thought gold was going to 1120-1130 based on fib lines and other CHARTS. They are OUT now, and bought NOTHING into 1160. Liquidity flows MAKE charts, not the other way round. The BANKSTERS control liquidity flows, so THEY make the charts. NOT some wienerman sitting at his keyboard trying to guess at the next cycle low with a glorified dice roll. The Elliot bears are DESTROYED. I told you gold stocks, gold juniors, and SILVER would CONFIRM gold’s blast thru 1033. There never was any non-confirmation, except in the DOLLAR, which is going to APPEAR to be headed to ZERO and OFF THE BOARD very soon, but in reality will become the AMERICAN SUPERPLAY of the 21^st century…THANKS TO GOLD. What happens to the cycle brigade, the “I can draw 900,000 Elliott Bear Waves on a 6 inch Gold Chart, but I can’t make ten dollars in the market” parade of market LOSERS, as they take on the Central Banksters in a liquidity flows war? Answer: Nothing. The more things change, the more they stay the same. You get richer, they get poorer, that’s what happens.

42. Your technical analysis heroes have only JUST STARTED to feel the pain as gold goes “UNTRADEABLE” by ANYTHING but the PGEN, which is EXACTLY how the banksters operate in the market themselves. Some guys who claimed it was 2008 again, are claiming after gold fell ten bucks their prediction came true. That’s a JOKE, and the jokes they have become, will GROW going forwards.

43. This whole bull market in gold is about the banksters devaluing Elmer Fudd and taking what he has. The gold community will have an Epiphany of Horror as you grasp this reality more and more to be FACT. The central bank isn’t broke and nor is the US Treasury, because they legally CONTROL GOLD. The banksters’ NUCLEAR WEAPONS are GOLD REVALUATION and MONEY PRINTING. You have NOT seen money printing as a NUCLEAR WEAPON yet. Most thought QE was money printing as a tool. WRONG. You haven’t even seen gold revaluation, but are likely ABOUT TO LIVE IT, over the next 6-12 months. It’s nuclear weapons time. My question to you is:

44. Are you riding the Gold Nuke, or are you the Gold Nuke’s Target? Fudd is about to get nuked. My suggestion, if you are in the Paper Money Blast Furnace, you better get out of there, before the banksters NUKE IT.

Thanks

Thank-you

Stewart Thomson

Graceland Updates