June 24, 2011

1.   Winning the fight.  Yesterday I ended the update with that phrase.  Click HERE NOW to view wheat in a heated battle with the dollar, and win this latest fight.

2.   It was a good try for Team Photocopier, as they valiantly waved their "we won't starve if wheat goes to zero!" flags from inside the insane asylum.

3.   Unfortunately, in a fight to the finish against Team "I'll starve you to death" Wheat, Team Photocopier tends to lose 100% of the time, but that doesn't stop Elmer Fudd Public Investor from swearing on his mother's grave that Nortel at $90 is a less risky investment than wheat.  Oh well, maybe in the next 500,000 years, a new generation of Fudds will learn what risk and reward in the market really are, but I doubt it.

4.  Thanks to one of you, new subscriber "NewGold", for sending me the powerhouse news that the entire global banking system is considering changing gold from a Tier 3 collateral rating, to Tier 1, following the lead of JP Morgan. 

5.   While the banksters and the gold community already know that gold is Tier 1 (or higher), and always has been, the banksters operate all their biggest wealth transfer shows around gold being portrayed as either a "must own" or "must never own" asset, to whip Fudd and the Fundsters, in the market. 

6.   If you are a bankster on the inside of the game, are your $20-50 billion a day in "non reportable" (?) gold transactions on the LBMA Tier 1 transactions?  Of course they are.

7.   The banksters operate a propaganda show that gold is risky when price is low, then when they want to unload onto the price chasing morons, they rant that gold is "must own".

8.  Right now, Fudd doesn't care about Tier 1 for gold. He's focused on hawking his mother's jewellery at the new pawnshops called "toilet paper for gold" (aka "toilet paper for idiots)", and price-chasing his growth with safety Gman debt-a-holic clown show, and it is that bond mkt price-chase that will be a key driver of putting him on the breadline.  In the magnificent words of sub GoldSong, By design, over time. 

9.  Fudd also recently bought a little stock in the market, after "only" price-chasing 400% gains on some Dow stocks, just in time to watch the Dow fall 1000 points and Grim Reaper Morgan Stanley make statements that this correction "might not be all that shallow", while the banksters dangle Greece in front of Fudd, saying "Is it Lehman 2?, ha ha ha!".  The blood is quickly draining from Fudd's face.  Oh well, I'm sure the Gman will look after him...

10.         When the Euro bites the dust in an implosion of infighting over who gets to control the euro photocopier machine, will institutions buy the dollar, that could be on fire itself at that point, or will there be a panic into gold? 

11.         Many Fudds are standing in line waiting for the banksters to make good on their promise to restart the "residential houses to the sky on my credit card" wealth building show.  Over time, Fudd will find that the banksters are more interested in turning that line into a bread line.   

12.           Institutional money managers are not so stupid.  They understand that Tier 1 status means the medium and smaller banks can use gold to make loans, and that is going to drive significant purchasing of gold by banks and many of their customers.

13.         And it seems to me, Team QE3, that you lived your life like a CANDLE IN THE WIND.  Click the link now to say goodbye to Team QE3.  The Tier 1 upgrade for gold is part of the monster tool of gold revaluation that is now in bankster play. 

14.          You "dialled down the intensity" on rates to zero as a tool of dollar devaluation and real wealth transfer.  Well, it's time to do the same QE, put that hunk of junk on the back burner, and focus on gold revaluation!  That's what the banksters are doing, so you need to do the same to stay onside.  This crisis is a lot bigger than anything QE can handle.

15.          Look at the latest pictures of Ben Bernanke.  He has bags under his eyes.  He looks horrible.  Why? Probably because he's been ordered by the banksters to begin imploding the bond.  He knows the horrors that lie ahead for Fudd.

16.          Mr. Macro is shorting the bond now.  He thinks it's over.  Technically, it ended years ago at 140 on the T-bond, but Fudd doesn't know it even went that high.  Both he and I called that 140 top "likely the end" as it happened, while Fudd bought like a madman in diapers ,while his "stocks in a new era" price chase imploded in a Morgan Stanley Triple Sell Signal fireball right before before his rose coloured eyes.

17.          Fudd buying the dips in bonds now, is just like how he bought the dips in Enron.  Do not forget that fact.

18.          Jim Sinclair calls shorting the bond a business, while Fudd and his crew of golf ball advisors call buying the bond "growth with safety".  That tells you all you need to know about the bond market.

19.          In terms of bond market action, YOU should focus on buying gold items, not shorting the bond, particularly if you felt some serious discomfort during this rally in the dollar against gold stocks.

20.          Click here now to view the MIGHTY GDX CHART.

21.          I've reduced my sells of GDX on strength to a drivel.  I don't want to be handing over positions here with microscopic profits that are dollars.

22.          I've taken some significant  bets on gold stocks into this weakness, and am prepared to take significantly more should the opportunity present itself.  I don't give any credence to the idea that gold bullion ETFs took money from gold juniors. 

23.          The winds of "bye bye Mr. Bond" are blowing, and that means the winds of HELLO SIR GOLD STOCKS PARABOLA are also blowing, but that doesn't mean it is scheduled for 10 am this morning, or delivered to you by your butler.  You'll have to crawl thru the mud to get it, but you will get it.

24.          The violence of the action in GDX and gold stocks generally from Wednesday afternoon thru yesterday is a huge positive, not a negative.  GDX feels to me like it is bouncing up on a down on a giant paper currency trampoline!

Gridtime.  Dr. "Just like my brother wheat, I'll starve you to death too, if you want a real fight" Corn also staged a monster-style comeback yesterday against the pathetic dollar bugs.  Team Leveraged Teckie thought they could short corn to zero.  I have to agree with some of the largest banksters that it is the action of the largest physical market players that move commodity prices, not hedge funds working the futures.  I'm probably alone in the gold community in that view, but I'll be proven correct.  The top banksters know you can't build wealth and keep it, working the short side of markets, unless you have a dealing position as large or larger than your short position.  Do the hedge funds have any product they are shorting wheat and corn against? No. Keep that in mind, or get blown away alongside the funds, by the banksters.  Today is report card day.  Let's see an all-A's day from everyone!

      Thankyou

Cheers

St out