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Dec
30, 2010
1. Where
does it all go? The ultimate game for the banksters
would be to create
the appearance and feeling that real hyperinflation is coming
to the world's reserve currency, as QE fails to reverse home
prices but causes hyperinflation of everything
else. Interest
rates skyrocket and bonds crash. Do you see home
[p]rises
rising NOW alongside food and energy prices? Well,
picture a supersize version of what you see now. In
a hyperinflation, rising home prices help the mortgage holder,
yes, but they only help him with his mortgage debt. What
if his week's wages can't even buy him a loaf of bread?
2. What
if his house costs the same as a loaf of bread? In
a full hyperinflation, prices rise into the billions and
trillions for basic items, and
traditional ratios amongst financial assets can get
"waylaid".
3. As
the public's "growth with safety" fantasy morphs into
"bail with terror" reality show, the question is,
"where does it all go?"
4. Where
do all the dollars go? Who buys them as the world
goes into panic mode and bails on the dollar?
5. When
a paper money panic develops, the population sells paper money
and buys things for protection. Gold, the stock
market, commodities....stuff. But
WHO is buying all the paper money as the public loads up on
stuff?
6. Elmer
Fudd Public Investor doesn't want to think about such a
scenario. He doesn't want to envision a scenario of
vastly higher rates and a global paper money panic. He
wants to picture himself sitting with his golf ball advisor
price-chasing a little "here to stay" gold, and maybe
getting back in the market a bit, but only after the Dow rises
another couple of thousand points, so that gets his
price-chasing juices flowing too and he can rationalize a new
round of price plopping action for himself.
7. What
Fudd doesn't want to picture is a crisis that is accelerating
rather than waning, one that threatens his business and
standard of living in a drastic way. He doesn't want to
picture limits on QE, let alone a QE strategy that has
failed. He doesn't want to think about all the
Fannie, Freddie, GM, and other corporate OTC derivative debt
that is now in the hands of the
govt, the same govt that is
issuing unprecedented amounts of debt itself, while telling
Fudd that it isn't debt, but "growth with safety".
8. The
ultimate bankster game would be to create a REAL paper money
panic, then order their central bank managers to accelerate
gold buy programs as a solution, and if need be, adopt money
printing as the stated tool in play to reverse still-falling
(relatively but perhaps absolutely)home prices, rising debt
burdens, and import-export ratios.
9. The
ultimate game, quite simply, would be to buy all the dollars
from billions of the world's impoverished wienerheads as they
sell paper money en masse, in what could become the ultimate
market volume climax in the history of the world.
10. Then
the banksters would lock the dollar to gold and perhaps
announce the reverse of the current interest rate policy; they
could announce an extended period of high rates to restore
confidence in the then gold-backed currency. Gold is
more likely to back debt issuance
than currency issuance,
but for all intents and purposes, it would be a gold standard,
albeit a modified one.
11. Next,
or in conjunction with the new gold debt standard, the
banksters would order the Gman to announce massive austerity
programs, so "this never happens again". Effectively,
America would be transformed into a massive Switzerland, banker
and safe money haven to the world, while China would take on
the role of manufacturer for the world.
12. Of
course, as a "minor
side benefit", the banksters would be holding untold
trillions of gold-strengthened dollars and bonds (and perhaps
hundreds of trillions depending on how far the dollar falls and
how many dollars get printed).
13. There
is no way on this planet that those who spat on gold in 1999,
but now arriving at gold $1424 on the buy of gold as a here to
stay asset with micro allocations, have a clue in hades what is
going on, and no way in hades that they have changed a single
thing in their market tactics since 1999. Therefore,
by definition, there is no way
in hades that they are going to be capable of buying one iota
of any paper money if it goes into hyperinflation mode.
14. All
they are going to do
is ACCELERATE their buying of gold as the panic begins, and
exponentially accelerate it into a crescendo as
the banksters unload their gold in a
pyramid formation onto these lifetime market loser bustouts by
the TRILLION.
15. The
coming selling panic in bonds and paper money could make the
day of the low at Dow 6500 look like a cakewalk. Prediction
from Stewart: ALL that the gold community thought
WOULD happen at Dow 6500 with the SYSTEM, WILL happen at t-bond
50 and USD 50, and maybe long long before those pricings.
16. Picture
inflation rising at say, 70% per year. Now picture your
gold rising at say, 30% per year. Picture that going on
for 20 years. Whatever the actual numbers turn out
to be doesn't matter, but that is the game plan the banksters
have for those beginning to enter the bullion market now and
those who buy it in size at vastly higher prices than where we
are now. The purchases now are too small to give any
real protection and since the same bozos now entering gold at
$1400 with micro money are all in on bonds,
homes, and paper money, even their
best marking to model is not going to work this time. Protect
yourself against the banksters, not against the dollar or
bonds. Do
as they do in the market,
not as they tell you to do.
17. "97%
of you won't believe me when I tell you the gold bull market is
over"
- Jim Sinclair.
18. We
are really at only the beginning for gold stock, while
probably near, at least in time but
not price, EITHER the
end for bullion OR the start of semi or full
hyperinflation. Price
could shoot higher. I set my original $6000 target
for bullion based on the scenario I've detailed here; an
apparent or beginning hyperinflation unfolds, but one that gets
checkmated by a bankster move to lock gold to debt issuance.
19. Either
way, gold
stocks win monster style.
20. The
$1400-2000 zone is good enough to give YOU increases in gold
stock that could make even the moves from august look tame.
21. A
word of caution: Many
low grade gold stocks, even outright scams, will rise in price
in 2011. Don't get greedy. You can make
large percentage gains buying stocks of lower and lower
quality, but you need to book profit early on those. Don't
overstay your welcome like many did with internet stocks.
22. My
strongest suggestion is to hold high levels of cash and high
levels of gold. Because the
crisis is not over but
likely entering its most dramatic phase in 2011,
you also want to get a lot more serious about managing system
risk. If the banksters lose control (or arguably if
the sickest amongst them gain control) and real hyperinflation
develops, if you were say, 50% cash and 30% bullion, the
bullion would rise by billions of percent, while the cash loses
99% or 100%. You
don't need that much gold in a real hyperinflation to be a
monster winner even if you hold a lot of cash.
23. If
the banksters are successful in locking gold to the dollar
after mangling the dollar, it will be gold's "relatives"
that may have a problem. Institutions would exit
their hyperinflationary hedges in the stock and commodity
markets, and it is
possible that everything then crashes except gold, gold stocks,
and the US dollar.
24. Attention www.gracelandjuniors.com subs:
Some of you may have seen the article by Chris Ecclestone about
ECU
silver. A
very negative article. All negative in fact. One
of ECU's largest shareholders, and a paid graceland sub, notes
that certain hedge funds are naked short more than 10 million
shares of ECU, (and soon to be baked to charcoal).
25. I'll
add that I note one of Chris Flintstone's claims to fame is
that he used to work for the government. Some of the
statements made are just plain wrong, but my question to Mr.
Flintstone is, "how many shares of
ECU did you sell into $1.40 as it soared from august with the
PGEN, and how many did you buy into $1.00 as it retraced, and
how many wins did you book as it re-soared into 1.40?" The
most likely reality is that Mr. Flintstone [Ecclestone]
and his hedge fund pals are on fire on a mountain of ECU shorts
and desperately trying to talk the market down
before the bankster repo man knocks at his personal
door. Knock, Knock Mr Naked Gold & Silver Stock Shorty
Pants, anybody home?
26. There
are many writers who make a living pumping OR dumping various
juniors shares. I run a
pgen on the shares ignoring all the blab and have never
received one cent nor one share nor one "unit" of
compensation for pumping or dumping or promoting any of
them. I'm probably alone in the gold community to
call the president of a gold company an idiot WHILE buying his
stock. Am I really calling him an idiot? Gold
stock directors should look at OPEN market action from
Graceland subs, not talk, not paid shills, for your REAL
friends.
27. I
issued a sell alert on Donner yesterday (for trading positions
only) at 28 cents after putting out a very recent buy at 26
cents. That's a 7.5% move in a VERY short period of
time, and with these juniors under 50 cents you can often get
filled every ½ cent down on some, so a sell every 2
cents up is something to consider for TRADING
positions. GoldLion himself uses a 2 to 1 sell ratio on
some positions. I never go below 3, and with items
like GDX I'm currently using a minimum of 10 to 1, buying every
5 cents down. Some sell programs are 20 and 30 sell
increment to buy increment ratios. Outer core starts at 50
to one and goes to 500 to 1.
28. If
you have to flip a hamburger....Get some serious air!
29. The
bottom line: Core
positions are in a vice. Trading positions can be
your hottest potatoes, and never forget the percentages you are
making, especially when looking at the chart, mine reports, or
the quote machine.
30. Silver
went to a new high for the bull market yesterday. All
I ask of silver-only players is that you show "respect"
for your asset by being prepared to buy your baby to
zero. Blab about what silver IS means nothing if
you won't buy it on sale. Silver is now LEADING gold
higher and whatever remains of team "non-confirmation"
is almost invisible.
31. The
banksters made more money buying silver on weakness in the
depths of the bear market via the PGEN just between $4 and $6
than most in the gold community would make if it went to
$10,000 an ounce. Again, if you exit the
silver bull market with the same number of ounces you had at
the beginning, are you really any wealthier if you consider
silver, not paper money, to be wealth? Think hard on
that and do what it takes to build ounces, not marked to paper
money account values.
32. What
does the new high on silver mean? It means we're in
a new range and the demand line of that range is the old
high. I'll cover that on the site by video in a few
mins along with the RSI gridline video I missed yesterday.
33. Think
hard about gold at $1412 where it is now. Just that little
move from $1370 caused a significant rise in GDX and
GDXJ. What do you
think happens with GDX,
let alone GDXJ and a mountain of your individual juniors, from
$1470 to $1512? Are
You Prepared? Prepared for the ultimate gold stocks
party in 2011? Yes, book profits into strength. No,
don't play top caller with your core positions because the only
thing you'll succeed in top calling is your net worth!
Grid
Time, Show Time,
More
Top Callers To The Grave Time.
2
more days left in the year.
Let's
finish this week, and year, on the strongest possible note!
Charge!!!
Thanks!
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