May 28, 2011

1.   Jim Sinclair is now apparently suggesting that $12,000 gold is not necessarily a target price, but it could be in play.  My prediction for 2011 was that gold's volatility would grow, and the timers and their flock would be turned into dollar-obsessed roadkill, by the end of the year.  It happened earlier than I thought it would, and the situation will grow worse. 

2.   The road to $12,000 gold will be one where the dollar appears headed to zero one day, and to infinity the next.  Only the banksters and those with realistic buy/sell increment PGENs (you) will survive.  And profit. 

3.   The greedy definitely will not prosper.  Those who leverage paper dollars to build wealth, will instead build misery, while those who leverage patience will build fortunes.

4.   It was a decent week for me, and hopefully for you as well. Natgas, wheat, corn, gold, silver, GDX, and GDXJ all did well, while the USD began what appears to be its walk of the plank.  

5.   Oil may be trying to build a base to blow thru $115.  If not, and the dollar rallies, then you get more oil, for cheaper.  Then when it does go thru $115 you get even richer.  Hope oil goes lower, not higher, if you want to get richest.  He with the most gets the richest. He/she with the most now....already is the richest, if he/she understands the word "asset". 

6.   The scale marks your gold to market.  The dollar marks your gold to model.  In the biggest picture. Are you operating in the biggest picture in the biggest financial crisis of all time?  I'll dare to suggest that those who played counter trend timer when the DOW was the asset in play in 1929 were destroyed.

7.   This time, it is the dollar that is in play.  Let me repeat that sentence a little more forcefully:  This is the biggest debt crisis in the history of the world and it is the dollar, not gold, that is in play and in crisis. Focus on the biggest picture, the scale, in the biggest crisis, or be destroyed.   

8.   There are rumours from some of you that a Graceland Offshore Gold Fund will be incorporated as early as Monday or Tuesday and it would have a GDXJ component.  I was outraged to hear that, as I thought you should have a "short gold for eternity, because it's so risky and gold stocks will never rise, even at $12,000 gold" fund.  We could call it the Elmer Fudd Rides Himself To Zero Fund.  Should be a winner. 

9.   The timers, of course, have now noticed that the dollar has started to fall against gold and gold stocks again.   Gold top call 3,343,233...bites the dust.  Gold didn't go to 500 and nor did the Dow, like the dollar-holics promised you would happen.  Oh well, maybe next top call, it will all be different, and toilet paper out of a photocopier becomes king, and rules gold forever...or maybe not?

10.          Click here now to view the US dollar against Prince Silver chart, for the entire 2002-2011 dollar bear market.

11.          You are looking at Elmer Fudd's toilet paper superhero being mauled from 30 to 2.  Thirty to two.  The dollar is a penny stock against gold, and silver is along for the ride.  Do you understand? Would you go back in time and "buy the rally" in the Dow in 1929? 

12.          Well, stop wasting your time with "buy the rally in the dollar" garbage fed to you by the world's stupidest timers, who own no physical gold themselves, in this much bigger crisis, or you won't be financially around anymore, as the bond mkt implodes and the banksters pull the trap door on the dollar and the dollar goes vertically down, against gold.  How does that sound, "vertically down"?  I don't think most of the gold community really understands that this is a crisis of the dollar.  You don't play counter trend drug addict or you get wiped off the map.

13.          There is no gold bull market.  There is only accelerated destruction of the dollar by the gold punisher.  Stay on the scale or be destroyed.  Think of how hard it has been to survive in this market so far,using dollar valuation as a crutch.  Now picture the bankster games on the road to $12,000.  Only the scale will work, because only the scale marks to market...your wealth.

14.          Because the Gman attempted to spend his way out of the crisis, rather than admit that he is a prime cause of it, the level of gold revaluation required to make his debt payable continues to rise, and is beginning to rise exponentially.  

15.          Most of you are dollar millionaires many times over.  You have brought risk capital to various markets at various times.  I want you to understand that operating the PGEN on the buy for the dollar from the day of the USD bottom in 1980 against gold made sense, then, and for some time after that day,because rates were skyhigh. 

16.          Buying the dollar against gold as a primary move now, without a major "interest rate payout to you" crutch at your side is going to see nothing but harm come to your wealth.  Think about the dollar going up against gold.  Think about a penny stock having a counter trend rally.  How many ounces of wealth do you really want to commit to such an endeavour?  45 to 5 against gold, just in this bull market, 30 to 2 against silver, just in this bull market.  Is the dollar a penny stock? 

17.          How about 500 to 7 over 100 years?  How does an item that falls from 500 to 7 on a one hundred year performance chart against the world's lowest risk investment, please tell me how that piece of junk gets to be called a "risk off trade", when you buy it! Buying the 100 years of failure dollar is your risk on trade.  Putting your gold on the scale is your risk off trade.

18.          Obviously.

19.          Please take a look at the latest liquidity flows report I posted on the site for gold/silver.  Sadly, after booking massive losses into gold $1462, the funds just went on a buying spree at gold $1530.  The banksters are engaged in light selling of gold, here, for dollars.  That's what I'm doing, and what I've recommended you do.

20.          You want to focus on being prepared to buy where losers are sellers in size, and focus on the now.  The now involves gold $1462 and GDX $52.  If the dollar rallies against gold and GDX and we retest 1462 and GDX 52, I'd prefer to see you use some of the current profits you are booking here, to be sure you can buy under 1462 and GDX 52. 

21.          If gold blasts higher, you are already sitting on a lot of metals and gold stock you bought into this decline.  It doesn't really matter whether you put every PGEN cent to work between here and 1462, if we are going to blast to 1577, or way above 1577, and GDX 64. 

22.         On the other hand, if we melt thru 1462 and GDX 52 (30-50% likely and 100% possible), every single one of those dollars you booked in profits from 1462 to 1537 is going to need to be put to work down there. 

23.          Some of you have set your PGENs already to prepare for action down there, but unfortunately 93% of the gold community didn't have any PGENs.  They had price-chased plopgens, and instead of buying gold, they sold a load of price-chased gold and gold stock for dollars, at losses, into 1462 and GDX 52. What a horror!  This is our crew to take out the banksters; 93% of our team ran to the photocopier machine when it came time to walk the talk.

24.          Unfortunately, all that "team 93%" are thinking about now is getting more money from their businesses to put in the market, a bit now, and a lot if we "break out" above $1577.  If we blow out the lows at $1462, those "plans" will turn again to dollar worship.  The dollar is the world's largest market. Like Nortel or Enron or the Dow in 1929, each rally is declared "the bottom", or a turn point, by the world's stupidest investors. 

Report card day.  Unlike Nortel or Enron, or even the Dow itself, the dollar is a much slower moving entity, but it is in a huge bear market, just the same, and, just as same, there is a real risk it goes right off the board or is reverse split to worthlessness.  Be very careful about putting the dollar into play in size before interest rates have risen substantially AND the dollar is backed by gold in some way, or you may find yourself tumbling in a terrifying freefall, alongside most of the world, as the banksters yank open the trap door on the dollar.  Below the trap door is a giant fire pit with a crew of laughing banksters standing around ready to entertain themselves.  Stand not on the trap door, but on the scale.

 Thankyou

 Cheers

 S "working the scale" t, out!

The Air France Airbus A330 that crashed off the coast of Brazil on June 1, 2009 climbed after the autopilot was disengaged, stalled and remained stalled during its three-and-a-half-minute descent into the Atlantic Ocean, according to a new report (pdf).

‘The inputs made by the (pilot flying) were mainly nose-up,’ the report notes, indicating a potential pilot error. Generally, pilots would push the nose down to recover from a stall.

The interim report from France’s Bureau d’Enquêtes et d’Analyses into the crash of Air France Flight 447 noted that the autopilot and autothrust disengaged at the start of the incident, but did not say why. Air France pointed to fault airspeed probes.

The report gives the first details from the recently recovered voice and flight-data recorders. All 228 people aboard the flight from Rio de Janeiro to Paris died.

The report also notes that, when the event started, the weight and balance of the airplane were within the operational limits, the two co-pilots were in the flight deck, with Captain resting, the captain returned about a minute and a half after the autopilot disengaged and the engines were operating and always responded to crew commands.

In a statement, Air France said:

It appears that the flight deck crew was monitoring the changing weather conditions and thus altered the flight path, that the initial problem was the failure of the speed probes which led to the disconnection of the autopilot and the loss of the associated piloting protection systems, and that the aircraft stalled at high altitude. It also appears that the flight captain quickly interrupted his rest period to regain the cockpit. The crew, made up of three skilled pilots, demonstrated a totally professional attitude and were committed to carrying out their task to the very end and Air France wishes to pay tribute to them.

All the data collected must now be analyzed. It will only be at the end of this complex task, which requires patience and precision, that the BEA will be able to establish the causes that led to the disaster.

Airbus said:

The preliminary information released by the BEA today is consistent with facts published in the BEA preliminary and interim reports. The BEA’s work constitutes a significant step towards the identification of the complete chain of events that led to the tragic accident of Air France flight 447 in June 2009.

Here’s a rundown of events, according to the BEA (all times are Greenwich Mean Time):

• At 1:55 a.m., the Captain woke the second co-pilot and said ‘he’s going to take my place.’

• Around 2 a.m., the Captain attended the briefing between the two co-pilots, during which the pilot flying the plane said: ‘the little bit of turbulence that you just saw … we should find the same ahead … we’re in the cloud layer unfortunately we can’t climb much for the moment because the temperature is falling more slowly than forecast’ and that ‘the logon with Dakar failed.’ The Captain then left the flight deck.

• At 2:06, the pilot flying the plane told the cabin crew that ‘in two minutes we should enter an area where it’ll move about a bit more than at the moment, you should watch out.’

• At 2:08, the non-flying pilot said ‘you can maybe go a little to the left.’ The airplane began a slight turn to the left, changing its route by about 12 degrees. Turbulence increased slightly and the crew decided to reduce the speed to about Mach 0.8.

• At 2:10, the autopilot then auto-thrust disengaged and the flying pilot said ‘I have the controls.’ The airplane began to roll to the right and the pilot made a left nose-up input. The stall warning sounded twice in a row. Recorded data show a sharp fall from about 275 knots to 60 knots in the speed displayed on the left primary flight display, then a few moments later in the speed displayed on the integrated standby instrument system (the flight-data recorded did not record the speed displayed on the right side). Autopilot and auto-thrust remained disengaged for the rest of the flight.

• At 2:10, the non-flying pilot said ‘so, we’ve lost the speeds’ then ‘alternate law.’ (In alternate or direct law, the angle-of-attack protections are no longer available but a stall warning is triggered when the greatest of the valid angle-of-attack values exceeds a certain threshold.) The airplane’s pitch attitude increased progressively beyond 10 degrees and the plane started to climb. The flying pilot made control inputs to put the plane’s nose down and then alternately to roll left and right. The vertical speed dropped from 7,000 feet per minute to 700 and the roll varied between 12 degrees right and 10 degrees left. The speed displayed on the left side increased sharply to 215 knots. The airplane was then at about 37,500 feet with an angle of attack recorded at around 4 degrees.

• Starting at just before 2:11, the non-flying pilot tried several times to call the Captain back to the flight deck.

• At that same time, the stall warning was triggered again. The thrust levers were positioned in the takeoff/go around detent and the pilot maintained nose-up inputs. The recorded angle of attack continued to increase from around 6 degrees when the stall warning triggered. The trimmable horizontal stabilizer [the elevator] passed from 3 to 13 degrees nose-up in about 1 minute and remained in the latter position until the end of the flight. Around fifteen seconds later, the speed displayed on the the integrated standby instrument system increased sharply towards 185 knots and remained inconsistent with the other recorded speed for less than a minute. The pilot flying continued to make nose-up inputs and the airplane reached its maximum of about 38,000 feet, with a pitch attitude and angle of attack of 16 degrees.

• Just before 2:12, the Captain re-entered the flight deck. During the following seconds, all of the recorded speeds became invalid and the stall warning stopped. (When the measured speeds are below 60 knots, the measured angle of attack values are considered invalid and are not taken into account by the systems. When they are below 30 knots, the speed values themselves are considered invalid.) The altitude was then about 35,000 feet, with the angle of attack above 40 degrees and the plane falling at 10,000 feet per minute. The airplane was rolling side to side at up to 40 degrees. The flying pilot made an inputs to the left and nose-up stops for about 30 seconds.

• At 2:12, the flying pilot said ‘I don’t have any more indications,’ and the non-flying pilot said ‘we have no valid indications.’ Around fifteen seconds later, the flying pilot made pitch-down inputs. In the following moments, the angle of attack decreased, the speeds became valid again and the stall warning sounded again.

• At 2:13, the flying pilot said ‘we’re going to arrive at level one hundred.’ About fifteen seconds later, simultaneous inputs by both pilots on the sidesticks were recorded and the flying pilot said ‘go ahead you have the controls.’ The angle of attack, when it was valid, always remained above 35 degrees.

• The recordings stopped at 2:14. The last recorded values showed the plane falling at 10,912 feet per minute with a ground speed of 107 knots, pitch attitude of 16.2 degrees nose-up, roll angle of 5.3 degrees left and a magnetic heading of 270 degrees.