Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
Sep 22, 2010
1. Funeral for a friend. Rock star Elton John made that song, “funeral for a friend”, a hit. Perhaps Elton could do a command performance for my bank trader friend. Sadly, in the spring and early summer, like many in the gold community, and MOST outside it, he knew the top for gold was in, made his great gold top call, shorted gold stocks, bought the US dollar, AND shorted the general stock market, because multiple tops had to be in. Today, I’d like to announce to you: his financial funeral. Now, I want to ask a favour of YOU: Could you PLEASE turn off that darn gold kachingo dance music, just for ONE MINUTE PLEASE, so we can have a moment of silence for all the DEAD gold top callers?
2. OK, Thanks for that moment. Now you can turn the kachingo dance party music on again! Gold tagged 1296 last nite.
3. KACHINGO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
4. Gold Juniors SuperTrader GoldLion wondered out loud yesterday if the banksters had decided to fry ALL SHORTS in ALL MARKETS.
5. It’s important to enjoy success, but vastly more important not to forget what brings that success. The dark days on the buy side on price weakness are easily forgotten, replaced with a new fake mindset that good times are here forever, and we’re all supreme traders, and never again will we feel even mild discomfort in the gold market. Let’s just all throw what got us here in the garbage and join the price chasers because our current account values mean we’re invincible.
6. We will all feel discomfort again in the gold market, severe discomfort. That, I GUARANTEE you.
7. Question: How much wood would a woodchuck chuck, if a woodchuck could chuck wood? Let me state that question a different way: There is point of maximum pain that Elmer Fudd Public Investor reached in the stock and real estate markets. Likewise, this price-chasing MORON will reach a similar threshold as he sits in the paper money NOgrowth with NOsafety blast furnace, WATCHING GOLD RISE.
8. There IS a price-chasing BREAK POINT for this moron. Gold has risen almost FIVEFOLD from the low in 1999. Fudd is starting to notice. He’s wondering if he made a mistake standing in line at the pawn shop selling his gold.
9. The price chasing URGE is starting to grow within the world’s most moronic investors. It’s a PRIMAL urge they cannot fight. Price must be chased, like a lemming MUST march to the cliff, and gold’s price WILL be chased by these IDIOTS if it goes much higher. If gold doesn’t get correct soon, it could blast much higher, setting itself up for a major hit, as a modest sector of the public would march into the market, unable to resist their urge to buy.
10. I’m not talking about the GENERAL public, but a small sector of the public, mostly business owners and well-paid professionals who still have money to invest, free cash flow from their businesses and jobs. They will consult their advisors, advisors who only chase price, as they do themselves. The advisors will convince themselves they now understand the gold market, and make up nonsensical analysis that SOUNDS GOOD, nonsensical analysis that they themselves believe to be rational. It was rational, in the year 1999, and as price fell into 1156. Now? If you want to be a bankster MARK, then please step forwards and chase price before it gets away and you miss out on all the free money the banksters have ready for you. It’s not a question of WHETHER the bankster fry the current crop of price chasers. It’s a question of how big the take will be, and nothing else means anything.
11. The interesting thing about the current rise in price is that it comes VERY EARLY in the strong season for gold’s price.
12. The EURO made a new HIGH for the rally from 118 last night. Question: Where is the LIFETIME TRADE, the EURO TO ZERO trade put on by the hedge funds into 118, where is that NOW? The euro is aprox 133.50 (!) as I write this sentence. Where are all the Bloomberg euro to zero headlines put out every HOUR, where are THEY now? The fundsters’ euro to zero supertrade is now in a casket in the banksters’ PET CEMETARY.
13. The public’s “growth with safety” trade will meet a fate far worse than the euro to zero trade. Here’s why:
14. The OTCD’s (over the counter derivatives) crisis is not over. It’s HIDDEN. There’s a misunderstanding of the bank BAILOUTS. The bailouts were PAYOUTS to the otcd trade WINNERS.
15. The banks invented OTC derivative contracts as a master play to enrich themselves AND increase their POWER. They made money selling them to greedy buyers. The otcd buyers believed the status quo was here to stay, and we were in a new era of home prices to infinity, bought on a credit card. The OTCD’s themselves were catalysts for the home price gains. The banksters made many billions SELLING the OTCDs to companies, funds, and govts all over the world. Most of the otcds were BASED on AMERICAN MARKETS and structured in US currency, even though the buyers were worldwide. Interest rates, home prices, etc, in AMERICA. The buyers were worldwide, but the products were derivatives of US market prices. Think: US DOLLAR.
16. The otcd crisis is about the US dollar because the quadrillion dollars of issued otcds was mainly based on price movements of US markets. The banks are speculators that don’t like to lose. They lent out much more money than they had to the otcd buyers, so the buyers could buy the otcds. The banksters were on the other side of the trade, directly, and indirectly as guarantors.
17. If you enter into a contract where you make $100 million if home prices do ABC, the fact is that if they do the REVERSE of ABC, you are going to EAT $100 million in losses, in most cases. If you don’t have the money you lose, you OWE it. Because it’s a PRIVATE CONTRACT with EXCHANGE and no LIQUID MARKET, you can’t EXIT even when you get a MARGIN CALL. The banks won almost all the otcd bets, but because everything was so leveraged, the losers couldn’t pay.
18. Enter the “bailout”. The bailout was the banks saying to the Gman, “look, we won hundreds of trillions, we knew we could never collect all that, but we’ll settle for $10-30 trillion, now put the taxpayer on a payment plan and get some trillions flowing into our hands, or we shut down the financial system and you have a Mad Max world on your hands. The Gman thought about it carefully (for 2 seconds), and complied.
19. The OTCDs are now locked in a “mark to model vault”. That phase of the crisis is likely over. There likely can’t be another Lehman, because all the otcds are marked to model, not market. That doesn’t change the fact the system is broken and totally bankrupt, but just as a company can continue to operate while bankrupt, so can the whole system continue to OPERATE.
20. The next phase of the crisis is the Gold Punisher Phase, and that really started on the move up from gold 1156. I’ve highlighted the statements of the various major bankster front men recently, that “we know what the problem is, TOO MUCH DEBT, and we know what to do about it.” Notice how they are “accidentally” very VAGUE about that last part, about what that solution IS.
21. The Gman and his debts are moving to centre stage. The Gman has no intention of paying what he owes. Quite the opposite. The banksters have told the Gman they will happily bake his creditors in the paper money blast furnace, and create an illusion that the Gman will be RESPONSIBLE in financial action from here on in. “Never again must we repeat this situation, and if we just burn up paper money in this one-time debt reset, we promise all will be fine for the future.” -Gman, reading his bankster cue cards, Summer of 2011 or sooner?
22. The CRISIS is still 90% about OTC DERIVATIVES DEBT, not direct govt debt, but the Gman’s out of control debt will be used as the scapegoat for the otcd debt management program being wheeled onto the stage now.
23. Elmer Fudd and the fundsters will be told more and more frequently, “the debt is the problem, and the solution has to involve both debtors and creditors, making sacrifices for the good of all.” Translation: All wieners report to the blast furnace for baking.
24. I want you to get a VERY clear picture of what the bansksters appear to be working on behind the scenes, which is a plan to make the bond market and the dollar go into a tailspin that APPEARS to be headed to zero, then “save them” with the “we just thought of the solution now, thank goodness we did before it all collapsed!” re-instatement of gold in the money system, as a debt control mechanism.
25. Just as a corporation will dilute shareholders AND bondholders when it can’t meet obligations from corporate EARNINGS, the banksters have offered the Gman and the otcd trade losers the same “solution”. I want you to get a handle on just how much pressure the banksters can bring to bear on the Gman, by raising rates at a time when the Gman’s debt payment load is already “off the charts”.
26. If rates begin to rise, GOLD REVALUATION becomes almost a “done deal”. There could be great meetings held between the banksters and the Gmen, as they all nod their heads up and down that, “now that rates are rising, there’s NO WAY debtors can handle all this horrible debt they owe, and EVERYONE (except the banksters) is going to have to make some SACRIFICES.”
27. The public has NO IDEA what is coming. By the time the banksters get finished with the public, the public is going to wish they’d never heard of bonds or paper money.
28. The collapse of the bond market is probably going to trigger [would probably trigger?] marked to market losses of unimaginable numbers in the otcd contracts. Of course, there won’t be any marking to market of anything… except marking the US DOLLAR TO MARKET AGAINST GOLD. Marking that toilet paper entity DOWN.
29. The banksters are not unaware of the price chasers moving into gold now. Duh. Obviously, because they themselves are on the other side of that trade!!! If the price chasers think their current little wienerplay ends with anything but BOOKED LOSSES, I think they are MISTAKEN.
30. I’ve got a lot of emails to cover from you this morning, and I’ll be covering all the major mkts as well on the site.
31. I’ll end this update with a word to those of you on the buy in Natural Gas. Fudd doesn’t want to hear about natgas. He’s too smart for that. It doesn’t FEEL good to talk about that broken down asset, so he DOESN’T. As a natural gas accumulator, as a natural gas asset wealth builder, YOU are living in the PAST. You are living in 1999. Look out your market window. There’s Mr. Gold Accumulator in 1999. He then, is YOU now. Look at Fudd laughing his head off at Mr. Gold Accumulator while he himself slops away at the price-chasing trough in 1999, with his bullcrap advisors telling each other how smart they are, while they chase stock market price higher and higher like there is NO TOMORROW. What a LOSER. Fudd DESERVES everything that has happened to him to date, and he deserves the MUCH GREATER PAIN THAT THE BANKSTER MONSTER TRANSPORT TRUCKS ARE BRINGING TO HIS DOORSTEP NOW WITH PAPER MONEY ITSELF. Take some pride in yourself. You’re a wealth builder, not a price-chasing idiot. You better think about what it’s taking you now, to build that natgas asset, to accumulate it. When natgas starts to rise in price, don’t blow out that core position at the equivalent of gold $400 OR $600. Start to work that Iron Hand NOW. Grip that nat gas core position tighter and tighter. The banksters don’t care about you. You are not a MARK for them. The gold price chasers at current gold price levels ARE a bankster mark. Is that a RISK worth taking? Perhaps. If so, understand that it is a real risk, and keep the risk CAPITAL you ENGAGE on that trade of MODEST SIZE, and understand there is a strong possibility that every single buy goes DEEP UNDERWATER before you BOOK PROFIT, underwater to the point of “I want to liquidate, I want to end the pain”.
Let’s hit the price grids. Gold Kachingos! Stock Market Kachingos! Gas, oil, and grains buys!
Bottom Line: It’s time to start today’s work shift.
On the Pgen factory mass production line. See you there!!!
A last “PS” note: I met one of you, a paid lifetime sub, yesterday. You asked if all the characters in the letter, like Sad Sack, are REAL people. Here’s the answer: The letter is a product, and my correspondence with you as subs in personal emails is different than the letter. I’m not going to mention somebody in the letter that reads the letter and insult them without giving them the carrot as well as the stick. But the answer is that YES, incredibly, all characters mentioned in the letter are 100% REAL people, and all I write about them is 100% FACT.
Thank-you
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Written between 4am-7am. 5-6 issues per week. Emailed at aprox 9am daily.