Graceland Updates 4am-7am

Email:

Jan 31, 2011

1. Dare I suggest you may not want to be overly hasty to embrace Ben Bernanke's Electronic Photocopy Machine, as the ultimate wealth-builder, particularly when you consider that this machine has a 100 year winning track record in both its current electronic and former physical form, as the ultimate wealth transfer machine. Transferring wealth from the funds and public.... to the banksters. Love of the photocopy machine is certainly a root of great pain.

2. As you look now at the DOW, look at a possible correction there, now, as Mr. Macro looks at it the same way, I would urge you, not him, to keep point number one in mind. If you have no long positions on the Dow put on into Dow 6500 as he does, and as I do, independently of each other, then the strongest advice we can both likely give you is:

3. Unfortunately, you are likely not capable of playing any correction in the Dow, now, on the short side, and doing so is by definition.... an embracement of Ben Beranke's photocopy machine as a wealth-building mechanism, which it isn't. More DOW shares is wealth. More dollars of a fixed amount of Dow shares is...NOTHING.

4. My partner Gold Artist's advice to the Gold Community this morning is: "The gold people need to focus on building up cash now from their businesses and jobs, to be prepared to buy gold on a much bigger hit, hundreds of dollars bigger, than what we just went through. It doesn't matter if we go to $3000 gold, the size of the hits getting there are going to destroy most gold investors long before we get there. The damage to the gold people as gold goes higher, generally speaking, is going to rise with gold's rise in the coming next few years, because the size of the hits is going to rise, and they will not be able to handle it."

5. Elmer Fudd Public investor bought a microscopic amount of Dow as it fell in the year 2000, from 11,700 to 11,000. He bought even less as it then fell to 10,000. At 9,000 he was sweating, not buying. Some liquidation was occurring. At 8000 this pinhead was in major liquidation mode, and as we approached 7000, and put in what I termed the "Bin Laden lows", Fudd was all-out in head-in-the-sand mode and "gimme all the paper dollars in town, I'll pay anything for photocopied toilet paper, just gimme it now, I'll pay anything, gimme it now!" mode. What a disgusting and pathetic display of market action. Like watching a lobotomized 2 year old in action, horrifically.

6. Fudd got a 2^nd chance in 2007 to do it all correctly, or even a tiny bit correctly. To show he LEARNED a micro lesson about MARKETS. Learn something, anything, just show us one iota of learning. Could he do it? No. Instead, he made a 1000% effort to set a new record, and behave as a lobotomized ONE YEAR OLD. In the MARKET. If you call it good news, the good news is he achieved this goal of behaving in the market like a lobotomized one year old, and put on a massive lemming charge, price-chasing Helicopter Ben's photocopied toilet paper as it rallied against the mighty Dow. Instead of buying a fraction of ONE SHARE the 30 mightiest companies in America with even ONE DOLLAR OF PHOTOCOPIED TOILET PAPER, Fudd's selling frenzy of the 30 mightiest companies in America earned him one of the greatest standing ovations ever given by the banksters, as they watched this show of shows, on the main stage of their largest comedy club.

7. The Dow is an anti-dollar asset, which makes the gold communities hatred of the Dow all the more bizarre. Hate the Gman. Not the Dow. Keep in mind, however, this is not 1974 like many in stock market land want it to be. 1974 is probably 20 or 30 years away. The stock market is a great relative value, not a great absolute value.

8. It is also not 1979 like many in the gold market want it to be. Imagining that the public today is like the public in 1979 is "beyond insane". The public today is, literally, one bankster push button away from....the bread line. The Dow at 6500 was an opportunity to attempt to buy generational lows, not because of price to earnings ratios, but IN SPITE OF THEM. The Dow verges on becoming the institutional safe haven of choice in the next round of the crisis, bigger than the T-bond was in the last round. Bigger, because the crisis is not ending, is not fixed, but rather is....accelerating.

9. The soaring Dow has little to do with earnings, and everything to do with becoming a currency for institutional money managers, like oil has, like gold always has been. A generational VALUE buying low for the Dow occurred in 1974. A bigger generational buy occurred for the Dow in the 1930s than occurred in 1974. It was not a VALUE buy. It was a protection low, a protection buy against president "I'll steal your money now and you'll thank me for it later" Roosevelt, one of the banksters' great robber-managers, who is ironically hailed as a saviour by those he robbed, those he locked in poverty with gold revaluation.

10. Gold revaluation ended the crisis of the 1930s. It ended the crisis by completing the transfer of wealth from the regular joe to the banksters. The poor booked their losses. The rich booked their profits. It will be the same again. My prediction remains: Gold revaluation, not QE, will end this crisis. QE has failed to raise real estate prices at all. It's raised stock market prices. Has it addressed the underlying cause of the crisis, debt? No. Debt has GROWN exponentially. Gold revaluation will finalize debt payments that owed.

11. Some payment will be made by debtors, most by creditors. But all debts are always....fully paid. This gold revaluation will take the form of central bank buy programs, a supersize price-chase, and will be sold as "quality thinking about gold as an asset" to an unsuspecting public.

12. My message to Fudd is: If you want to end up like the Fudds of the 1930s, keep on making your best effort to maintain your pride. Keep those Enron and Nortel skeletons in the closet marked to zombie model, and learn nothing about market action from the banksters. If you copy Fudd of the 1930s, and that's exactly what Fudd of today IS doing, he will EXPERIENCE exactly happened to Fudd of the 1930s, and maybe get it worse.

13. Being successful in business is not a guarantee of being successful in the market, any more than being a good boxer guarantees success in a military war when a boxer getS sent into battle there. Winning consistently in the market is a vastly tougher fight than building a business is. The banksters want all to believe the opposite. Nothing beats having a ego-bloated hog as your opponent, in a death fight.

14. Are you prepared? Are you prepared to buy the Dow every 1000 points down in a fight against the photocopy machine?

15. If you have money to short the Dow, save that. Save it to buy gold, to build wealth, when it is down $200 and $300 from a high point. And down: $400. Those types of hits are coming. Prepare now and forget the Dow.

16. The idea that you'll be able to TRADE YOUR WAY THROUGH the coming hits on gold is....IDIOTIC. You must build a reserve of cash now to manage the hits when they occur.

17. How many people thought you would FEEL the way you FELT last week, in the gold market, NOW, back in October as price surged to $1387? How many thought gold would be caught in a paper money quagmire valuation trap today, then? We are now 3.5 months past the $1387 "loss of sanity" point, and gold is way underwater against that October high, and gold stocks are what at least FEELS like Mariana Trench Underwater against their October highs.

18. The daily chart technical indicators show gold as a screaming buy here, and your pgens should have bought as gold declined into the lows of $1310. CLICK HERE NOW TO VIEW THE GOLD DAILY BUY SIGNALS FIRING!

19. But you should not pat yourself on the back if you "called the low". No, far from it. You want to have reserve capital ready to buy gold to $1210 and to $1110. If you have that reserve capital ready to allocate, then pat yourself on the back. If not, no pats on the back please! Right now, $300 is the minimum range you need to have as reserve to... MAUL GOLD ON THE BUY.

20. The monthly chart shows the current "correction" as a barely visible blip down. CLICK HERE NOW TO VIEW THE COMING ASTRO VOLATILITY CHART!

21. In some ways, I have great fear of seeing gold surge to $1450, because, sadly, what will transpire above that point will make $1387's "loss of sanity" point look like a GAIN of sanity point. I see complete and utter lack of rational market action coming, above $1450.

22. The gold community will return to the buy there, rebuying all they sold into the current $1310 lows, only buy less than they sold, or more with leverage, locking in that loss of wealth, accelerating their ongoing impoverishment as the bull market in gold rolls on. What a horror. All the mine reports will be dragged out again, and the juniors touted as "solid as bullion, only better!". A complete and utter wipeout is coming ahead for most gold investors who think they are gold bugs, but are really photocopier worshippers, obsessed with paper money valuations, not ounces of weight, building of wealth.

23. Don't you engage in the tactics that will put you in alliance with Team wealth destroyer, or you will experience the same end game they experience, and let's just say it's not going to be a winning one, to put it mildly.

24. I met in Miami with the retired owner of 3 Canadian brokerages. He mentioned his hot juniors stock he likes to me, and suggested I "check it out". I told him, "I'm not so interested in checking out a stock, as I am in MAULING it." I told him he needs to be prepared to buy his stock, which trades under 50 cents, every HALF CENT DOWN to ZERO, if he really believes in the company, and trade out part of that on 1.5 to 2 cent rallies, if he really wants to get his risk capital OFF the table. Then use that capital to PGEN into BULLION so he's building WEALTH with his penny stock play, not marking to model a pile of photocopied widgets.

25. When I told him how I operate with the PGEN, he said, "you have obviously been operating in the market a long time; you understand how to make money in the market. You're very smart". I replied, "well, I'm not as smart as people think, but I understand how to bet against my stupidity, and the wealth building looks after itself once I've got that covered consistently."

26. So, I come full circle back to the DOW. Remember my 70% long and 30% short RULE that most broke when approaching NatGas? $4 natgas is reasonable, but not ultra cheap. Even at gold $250, employing up to 30% of the risk capital you allocated to buy gold, to shorting it with shortsale pgens, would let you build yourself into gold while remaining MENTALLY stable. So what if you would have built only 70% of the ounces you THEORETICALLY would have. It should be the same in the Dow. The fact is that employing short side bets with a SMALL PORTION of risk capital can ENHANCE your accumulation of the long side, by building yourself financially and mentally on price weakness.

27. The Dow is overbought on many charts, and the Dow Transports show a breakdown.

CLICK HERE NOW FOR THE TRANSPORTS BREAKDOWN.

28. A breakdown to WHERE? The Dow Transports MORE THAN DOUBLED from the march 2009 lows. On the next gold-related super-move UP in the Dow, who knows how high we are going. So, yes, feel free to SHORT the Dow, if that seems important to you. I see naked shorting the Dow as a DRUG ADDICTION. Like price chasing is a DRUG HABBIT and the supposed buying of claimed new positions in one asset is really loss booking in another. Marked to closet model as "new position" by the loss-booker.

29. Short the Dow, yes. But short it with no more than 30% of the capital you allocate to your LONG SIDE pgens.

30. The Dow is NOT going to lose to Ben Bernanke's toilet paper maker in the coming fight. The STATED tools of the US central bank YET TO BE USED are: Gold Revaluation and MONEY PRINTING.

31. Most people think you have seen huge volumes of money printing. You have seen Quantitative Easing, and MINOR money printing is a BY-PRODUCT of that policy. REAL money printing as the STATED POLICY of the US Central Bank would make QE as a tool look like a house of cards compared to a hurricane. QE compared to MONEY PRINTING as an official central bank tool is comparing an ANT to ELEPHANT. Think $100 trillion or a QUADRILLION when you think about money printing as an official central bank tool IN PLAY, not $2 trillion or $20 trillion. If it is REQUIRED, or even if it isn't but PUT IN PLAY anyways by the banksters, it will DWARF qe in a way most can't conceptually IMAGINE.

32. The bottom line: you don't fix a multi hundred trillion dollar problem with a $600 billion solution.

33. QE is TOO SMALL to work. There are NOT enough PHYSICAL OR CORPORATE ASSETS to buy in the ENTIRE UNITED STATES to fix the OTC derivatives blown debt problem. That shall become apparent very soon, as shall the role of the Dow as the prime DEFENSE mechanism of institutions against the coming bankster attacks on paper currency.

34. Picture a guy making $30,000 a year, who gets a credit card with $20,000 of credit on it. Now picture the same guy getting a card with $200 million of credit on it. He spends the whole 200 million on heroin for 50,000 of his buddies. They shoot it all.

35. That's the debt crisis in a nutshell and QE can't solve that problem. Buying Joe Blow's house with printed money and hoping that action pays off a 200 million dollar heroin debt is a grandiose pipe dream. Lying about the size of the debt is what the banks have done with mark to model accounting. That doesn't eliminate the debt. Putting Joe Blow heroin addict who makes $30k and owes 200 million...putting him on a payment plan doesn't get that debt paid.

36. The banksters want to get paid a solid chunk of their $200 million they loaned to a lot of Joe Blow OTC derivative heroin addicts. And they aren't going to wait as long as everybody thinks they are to collect on it.

37. The coming dollar devaluation is going to see a lot more money printed than most are anticipating, a lot more wealth transferred to the banksters, then locked to gold after the transfer is complete. Should they FAIL in their attempt to lock gold to halt the decline of the dollar after buying in size, then they will instruct Ben Bernanke to turn on the money printing machine as official policy, and THAT is when street violence becomes HUGE. Do I think we go that far? NO. But QE is a clown act of a solution to the current crisis, just as Joe Blow making 30 grand with a 200 million dollar debt who has made $10,000 in payments is a clown act of a payback. The Gman tells you that Joe Blow is going to make $32,000 next year, as GDP grows to 4%, so all is fixed. I say: NO.

38. QE is simply one MODEST stage in the devaluation process show. It is NOT a solution to ANYTHING except facilitation of SOME wealth transfer.

39. The crisis is nowhere near over, and nor are the tools, the WEAPONS, that Helicopter Ben has YET TO EMPLOY in what may be alternately termed the " greatest battle" or the "greatest wealth transfer".

40. Use weakness in the Dow to protect yourself. By BUYING it. The world is maniacally obsessed with predicting rallies in the US dollar against various mighty assets, in the great toilet paper bear market. I don't see any use to predicting those microscopic rallies....if you are not booking profit on your US dollars as those rallies occur.

41. I talked fairly extensively yesterday in my "essence of money" video I posted on the site about the fall in the US dollar on what is the THEME CHART OF 2011, from 46 to 6. CLICK HERE NOW TO VIEW THE THEME CHART.

42. When you get new dollars from your business or work, don't sell those dollars at a loss. Look at the point in time you got them. When the dollar rallies against gold, buy gold and book profit on those dollars. The dollar is an asset. You can use it to measure your wealth if you want. I wouldn't suggest you make it your PRIME wealth measurement. Why? Well, so far that strategy has resulted in a overall 98% loss over the past 100 yrs, and a 46 to 6 beat down JUST in this bear market. Yes, paper money pays interest, but not at a greater rate than the disintegration of its value against gold, and if you buy bond market TOPS, then you learn the pain of usury rather than the gain of INTEREST.

43. Instead of sitting on 50,000 ounces of gold bullion WEALTH, the average millionaire is now sitting on 700 ounces of SURVIVAL. Where did the other 49,300 ounces go? The wieners GAVE it to the banksters, for NOTHING. The banksters want the average millionaire to be sitting on SEVEN ounces next, while puffing a cigar telling his friends how rich he is.

44. "I'm rich! I just bought 7 ounces of gold for a million dollars!" - Elmer Fudd Public Investor Millionaire, 2080? If OTC derivatives were marked to market, gold would probably be trading at $80,000 to $100,000. NOW. Think about that. And, think about the fact that all debts are eventually paid.

45. The public, most money managers, and even many govt officials think the crisis is about "finding a solution". The banksters think the crisis is about.... wealth transfer. You can either sit there with the Fudds and Fundsters and wait for solutions that are nothing but your own guaranteed impoverishment, or you can join the banksters and start transferring WEALTH to YOURSELF.

46. Think bigger. $1430-1310 was a major wealth transfer mechanism. $1310-$1225 is a bigger wealth transfer point. Counting rolls of toilet paper from inside the paper money blast furnace is not going to build you any wealth.

47. Make no mistake. It is GOLD that is being transferred to the wealth builders, not paper money. My mandate is to make you richer, not to make you PRETEND you are richer.

48. How many of you really UNDERSTAND that last week you just got RICHER? The answer is: Many more of you than before, and that's major progress.

49. The asset in play last week was: PAPER MONEY.

50. NOT GOLD.

51. You thought you bought last week. Wrong. You sold. You sold paper money AND BOOKED A PROFIT ON IT.

52. Congratulations, you are all RICHER now, than you were last week.

53. GOLDLION mostly understands what I'm talking about. Doctor Ultimate understands totally. The banksters understand totally. While there are two sides to every trade, paper money is the ASSET IN PLAY. NOT GOLD. Last week was MOSTLY about booking profit on the paper money asset.

54. Most of the world, and even most of the gold community, have been TRICKED by the banksters into believing that a rally in paper money against gold makes you richer if you own gold, when the reality is that building OUNCES OF GOLD is what defines getting RICHER.

55. Most of you got RICHER last week. Stand up and give YOURSELF a standing ovation. You DO deserve it. It's not easy to BUST out of the bankster web of marked to model propaganda. Because you are only in transition to understanding gold as MONEY, as paper currency as ASSET, last week felt ROUGH, rather than GREAT.

56. India has THOUSANDS of years of understanding what gold IS. The Indian culture understands that more gold is more wealth, and when you get more wealth you are HAPPIER. Were YOU happier LAST WEEK as YOU got... MORE GOLD? NO. But at least you GOT more gold. That's a FIRST STEP. The Indian understands totally that more paper valuations of a fixed amount of gold is, sadly.... MEANINGLESS.

57. Last week, most of you got...More gold. So you got...RICHER. Let's drive hard, towards the Indian mindset. Which is to be HAPPIER that you are RICHER. You are ONLY richer with MORE ounces. I don't want you to end this dollar bear market "less poor" than the average person. I don't care if you are relatively richer than somebody else. I care about seeing you CONSISTENTLY BUILD OUNCES OF WEALTH.

58. The Indian mindset is not easy to achieve, but it's REAL. Wealth is gold. Weight of gold. The scale is ALL-MIGHTY and the photocopy number is: NOTHING. 50,000 ounces to 700. End the horror of paper money accounting today. End the impoverishment. Break the bankster chain before the remaining 700 ounces becomes 70, then 7, and finally....nothing. "Here he lies, buried with his photocopier in his arms". Don't let that be you!

59. Those who fail to make this transition in MIND are going to get WAYLAID by the banksters, in ACTION.

See you out there. On the (Indian) Gold Wealth Gridlines!

Thanks,

Cheers,