Mar 28, 2011

1.   What is the main theme of the markets, right now? Is it Japan?  Is it the wonderful revelation that President Obama has sent American military to fight for Al Queda in Libya, paid for with money to be collected from your grandchildren?  Is it the stock market?

2.   The main theme right now in the markets is the Bankster Boa.  The constrictor.  Gold investors have had their worldview squeezed repeatedly, so that now just a $20, $10, or even a $5 move in the gold market seems "big".  

3.   A similar squeeze occurred in the 1990s in the stock market.  The public and many fund managers came, literally, to believe that the stock market could never again fall by 20-30%, let alone more than that. Let alone enter a 10 year quagmire.  Let alone....the breadline.

4.   Thanks to one of you for sending me stats that show the public is now more heavily invested in bonds than they were in the stock market in 1999-2000.  That is "insanity beyond insanity", to quote master trader "the brain". 

5.   The idea of 50-90% losses in bonds is incomprensible to the public.  They have been squeezed into a worldview where if they can make 1%-4% a year while prices of everything else are hiked 10-20% a year, they believe they are getting richer. 

Because the Gman and the banksters say so.

6.   A similar situation exists in the gold market.  It has been so long since gold has moved down by more than $100-150 in an intermediate move, that such an event now seems almost impossible.  Instead, $20,$10, and even $5 drops are becoming scary.   The banksters say "booh!", and the average gold investor rushes to the sell button.  This is not a good situation for them, yet a great one for YOU.  The PGEN lets you trade smaller than rational, and remain a PLAYER, alongside the BANKSTERS, while everyone else hides in their bunkers.  The banksters' kiddies are applying "team yellowbellie" stickers to each bunker.

7.   IF the market were to be hammered by $200-400, many of the gold community's investors would liquidate all their holdings.  I doubt they would come back at all in this bull mkt.

8.   Yet, the same facts apply to the upside.  Each $5, 10, or 20 move upside could be "the last", so investors are ultra-timid. 

9.   A reminder:  When I talk about building cash in your accounts as an asset, I'm not talking about buying forex contracts or USD ETFs.  I'm talking about buying and selling stocks, or whatever it is you are buying & selling now, and when you sell those items at a profit, you have more cash in your account. 

10.          When you sell a stock, you are buying cash.  Buy cash when it is low.  Gold is "tanking" this morning. Let's see now, if gold is tanking, that would mean cash is rallying!  Should your focus this morning be your gold, or your cash? 

11.          Look at the block of cash in your account.  That just rose in price.  Use your pgens to get more cash and more gold.  If you are going to stare into the quote machine this morning, I'm all for that, believe it! 

12.          Provided you are staring at the cash in your account that is rising in price, making you a profit on it!  Put your gold on a scale.  Stare at it. No, that's not good enough.  Put in a good couple of hours staring at it.  Do you see any change on the numbers on the scale?  Keep staring, because any second now that weight might change, that's what the banksters want you to believe.  Quick, sell everything, because the weight could change any second now!

13.          The reality is there is only one way to change the value of your gold.  The number on the scale has to increase.  To 50,000 ounces.  Cash is cash.  Gold is gold.  Get more of both.  You can't get more gold by staring at what you have now!  You have to pick an item to use to get more gold.  Maybe it is cash, maybe it is silver, or oil, or wheat, or dow.  You can't get more cash by chasing after it as it rises in price.  All market transactions need to be winners.

14.          Shorting gold is like going long cash.  Shorting the ETF that is GLD-nyse comes with a free option. The option is that the banksters may have designed the ETF to blow up.  GLD-n is a thing.  When the thing moves down from point A to point B, I book profit on it.  So should you.  I've already rang the GLD cash register numerous times this morning while booking profits on cash assets, as I bought gold on the longside.   It takes time to view the cash in your accounts as an asset; don't expect to understand it in 24hrs.

15.          What happens if your cash rallies more today?  I don't know, perhaps you should start crying.  "Oh no, my cash just rallied again, this is a disaster, I'm getting richer!"  Cash has rallied by $30 an ounce against gold.  That's a decent little snack pack of profit.  If your gold is not on the scale, and you have no cash, what PROFITS are you going to book TODAY?

16.          Mr. "Golden Rig" reports that the natgas rig count has stopped falling, while price has risen.  He's lightened up on some natgas here.  I've been adding shorts into this strength.  With no shorts and no cash, you're a cork in the banksters' sea. 

17.          After blowing up totally on their stock market price chase in the 1990s, the public has done the same thing again in bonds.  Their bond market cork in the sea floats helplessly.  Do you really think these people can respond to a 30%, 40%, 50%, 60%, 70%, 80%, or 90% hit on their bonds? 

18.          What will they do, IF it happens?  We all know it can't happen, because the banksters say so, but what if it DOES?  What will they buy with the USD on fire? Do you think the public will buy the stk mkt even it is rising as institutions panic buy it? 

19.          I'm not so sure.  I think that as the banksters turn the bond market into an inferno, the public is going to go to all-cash.   Many well-known gold writers (WHO FAILED TO SELL ANY GOLD AT THE TOP OF THE 1970S BULL MARKET) talk of a "third phase".  They envision the PUBLIC coming into the gold market to buy as they finally recognize gold as an asset that is "here to stay".

20.          I don't think these analysts are getting the OTC derivatives message.  This is one of the most horrific financial crises in history, and it is absolutely the greatest transfer of wealth in the history of the world. If the bond market implodes, and the odds are 99% that it will, the public is going to be DRAMATICALLY poorer than they are now.  There's a remote possibility that the banksters BAN the public from buying gold.  Rather than confiscation (there's nothing to confiscate; the gold community as a massive ego as to how much gold they own in terms of that gold dust being relevant to the banksters),  ban on buying is far more likely.   The public has NO GOLD, while the banksters are LOADED with it.  They are not going to confiscate their own gold and hand it to the Gman. Enforcing a global gold confiscation is IMPOSSIBLE, given the globalized gold markets in Asia and the Mid-East.  They MIGHT consider BANNING the public from buying any.  

21.          Enforcing a BAN on new gold buying by AMERICANS is a lot easier to enforce than a confiscation.  Elmer Fudd Public Investor might buy the Gman's lies that it would be in the national interest to put the ban on.

22.          Right now, buying gold is the last thing on the planet the public is thinking about doing. (and the same for most of the gold community, THIS MORNING).

23.          Imagine a situation where the bond markets start tanking.  Tim "The Terminator" Geithner is likely to start buying gold for the treasury, to devalue the dollar.  Ben "Dr. Pinocchio" may soon [call] a time-out, after heading the main stage of the wreck the dollar show in Act One of the play (rates to zero), and Act 2 (QE). For those of you who don't know, Dr. Pinocchio cannot legally devalue the dollar, which is Act 3 of the play.  Only the treasury has authority to proceed with dollar devaluation as policy.  If there is an act 4, it will be Ben operating the photocopy machine as TREASURY POLICY.  Act 4, if it happens, is MONEY PRINTING as POLICY, to whatever level is required to make the OTC derivatives debts payable by the debtors (taxpayers), to the creditors (banksters).

24.          But let's stay focused on the BOND, which is where Fudd is floating in a 125-140 US t-bond market proxy price plop.  If his "growth with safety" fantasy is RAZED, he's not going to be rushing to buy gold juniors, like many think he will.  He's going to be almost SUICIDAL.  The fear Fudd feels in a bond rout will DWARF what he felt at Dow 6500, and by definition he must move to cash first, as he exits his failed bonds.  Rather than buying gold, Fudd is going to demand the Gman "do something".  A ban on new gold buying, if it happens, is likely to occur as the bond rout occurs.  Gold dealers would still remain in biz, but their only customer would be the US Treasury.  I don't think most of the gold writers really understand the full ramifications of a bond market wipeout.  As the bond investors come OUT of the bond at EPIC losses, there is very little left of their savings, and many would have NO JOB.  They are going to be DEMANDING a solution from the Gman. Huge austerity programs would come into play. Buying gold, let alone gold JUNIORS, is the last thing on the mind of the IMPOVERISHED.  The implosion of the bond market would send millions NOT to the GOLD MARKET, but to the BREAD LINE.  Are YOU prepared?   

Gridtime.  There's some significant loss-taking going on around us, and substantial worry.  I checked my calendar.  It doesn't say yesterday or tomorrow. Focus on ringing the cash register on cash, gold shorts, and buying gold longs, today. 

Thanks!

Cheers,

St out