June 16, 2011

1. Keen gold investors note that while most contra-dollar items are falling hard in price...

2. Gold bullion is holding up pretty well.

3. No it isn't. It is the dollar holding up pretty well, and pretty temporarily, against gold. Gold rules the dollar. Photocopier machines, drunken debt-a-holics, and lobotomized price-chasers do not rule gold, and believing so is idiotic.

4. Some juniors have started to rally against the dollar. Focus on large amounts of weakness, and remember the lessons learned from buying too large, and into too little price weakness.

5. Remember those lessons... when GDX rises above $64. Above GDX $64, don't swallow the price-chasing swill that will be sold to you by those bailing on gold items now, those calling their personal terror... "analysis".

6. Jim Rogers announced he is long the dollar (and willing to take a stoploss on this purely speculative trade), but he's also bought more silver and has sold no gold. Have YOU sold core gold and silver out of fear, and then called that action "analysis"? A sprint to the photocopier machine on price weakness is not analysis, no matter what kind of candy coating you put on the action.

7. Take a fine tooth comb and go over a long term chart for gold. Show me how you "knew" where gold was going next at all the intermediate tops and bottoms. Then do it with the minor tops and bottoms.

8. There are only 3-4 real timing opportunities, maximum, in a year that present themselves to investors, in terms of intermediate swings, 3-4 total opportunities on all markets worldwide,not 3-4 on each market. The last one was the gold head and shoulders continuation pattern between $680 and $1033.

9. Pros "shave off" some positions into strength and weakness. Idiots and paupers call tops and bottoms. They look like Dr. Pinocchio as they tell their market timing stories. "I called the top!". Sure, this top, and 500 non-tops before this one.

10. I rang the shortside cash register this on wheat this morning. That made me profits, and more importantly, more long.

11. Click here now to view the LINE OF TERROR chart for wheat. Buy into the line of terror with your PGEN. Then buy below if it breaks, while you take all the wheat from the photocopier worshippers. Let's see, the photocopier versus food. I wonder who wins... Make it a personal fight. Because that's what it is.

12. Jim Rogers notes that the average farmer is 58 yrs old. Fresh farmer troops are needed. They aren't there. Fudd thinks we could put his price-chased Nortel & Enron stock certificates in the fields, and they would do the farming, but I'm less sure of the viability of his plan... Maybe Ben Bernanke could photocopy food and that would fix the situation. Then again, maybe you should continue on the food buy into the line of terror and below, if it happens.

13. The banksters have increased their long position on wheat to a size larger than their short wheat dealing position. Why would that be?

14. They have also brought Greece back and shoved it into the terrified face of Elmer Fudd Public Investor. The price-chasing blood is draining out of Fudd's face and he's lost his "crisis is over" hat. So much for the celebration. Lehman was a "B" event in the big crisis picture. Lehman was an investment bank, like Merrill. If a major commercial bank like Bank America had gone bankrupt, (an "A" size event) the system would have closed or hyperinflation would have begun in 24 hrs.

15. Greece is also a "B" event. But the system is much weaker now. The banksters are having a laugh-a-thon watching Fudd turn white with fear as they dangle the "will we implode it or won't we, ha ha ha!" knife in front of Fudd's face.

16. The technical picture of the oscillators on the major market monthly charts suggests they do plan to cause some kind of system shock, yet their liquidity flows suggest it is more of a "fakeout" than a real implosion.

17. What could actually transpire is a mass "here comes 2008 again" mindset that sees mindboggling amounts of assets transferred to the banksters for dollars. What I think is happening is that the banksters are preparing, slowly, to say good-bye to the T-bond.

18. The "all aboard the dollar" bullhorn is being blown very loudly. If the bond went south, the banksters may then say, "look, it's the dollar or the bond, we have to tank the dollar, sorry". Because 65% of the world's financial transactions are in dollars, almost everything is tied to the dollar, whether directly or not.

19. I'm getting a limited number of emails now, obviously, because investors are hugely demoralized by the gold stocks disaster, but the few I'm getting are almost all QE-related. There's an almost "shrill scream" that "No, QE can't end, won't end, must not end, will not end, no, no, no, don't let it end or we're all finished, ahhhhhh, help me, I'm going to burn!!!!"

20. People like Sad Sack (who reported a solid minus 94% 12 month performance in his trading account yesterday, by the way) "know" that QE will not end. All he really knows is how afraid and demoralized he is, like most investors.

21. You need to look at the analysis being pumped out by the big banks right now. QE is finished. [This is not what Jim Willie is saying. Finished in the sense that it doesn't work to defuse the GFC, maybe -FNC] Face the facts. It's over as lead-dog tool in the crisis. The gold price is most likely being held firm by central bank buy programs.

22. Gold revaluation is in play and QE is on the backburner. QE is about dollar devaluation, and it has failed to achieve anything significant except in the stock market, and the inflation achieved there is evaporating fast.

23. The small amounts of gold bought by the Chinese central bank are not "the smart Chinese are buying gold!". The Chinese central bank is onside with the other banks in the great global paper money devaluation. The Chinese central bank is not "buying gold to protect the people against a falling dollar". That's idiotic. They would need to buy 100 times more gold than they are buying now to actually provide any real protection. They are buying gold to assist the other banksters in devaluing the dollar, and they are succeeding.

24. This is arguably the greatest financial crisis of all time. Jim Sinclair claims it will be 100 years before America gains a standard of living equal to that reached in 2005. How is that possible? It is possible because of hundreds of trillions of dollars in blown OTC derivatives contracts. All debts are paid, whether by creditor or debtor, and this OTCD debt will indeed be paid. I told you to use the good times to prepare foodstuffs, money outside the banking system, buried gold, etc. Now maybe Lehman2 is here, or maybe it isn't. There will be many many more "Lehman type events" as the dollar crisis rolls on. Are you prepared? Prepare now and throw your QE hero in the garbage can where he belongs. He's a candle in an OTC derivatives hurricane wind. It's time to say goodbye to him.

Gridtime! Let's hit the gridlines.

Or should I say...the bloodlines! Remember, your friend is your enemy. Remember, it is the banksters, not the gold community or the fundsters, who are on the BUY, here and now, in massive size, in gold, silver, food, energy. Who, really, is your marketfriend, here and now, today?

Thankyou

Cheers