Oct 3, 2011
The winners. Click HERE NOW to view the gold "1,2,3!" chart. YOU are already a double winner if you bought the weakness towards $1530, even if you never got the low.
"Retail investors pulled $36 billion out of U.S. stock funds in August, according to preliminary data from the Investment Company Institute. That's second only to the $47 billion withdrawn from U.S. stock funds at the height of the financial crisis in October 2008." - AP, Oct 2, 2011.
I told you the bankster main game in play is: Get Elmer Fudd Public Investor and certified Grad A moron....out of the stock market. If $36 billion in stock was sold the by wiener ranch at massive losses, my question to YOU is...who bought it?
Fudd thinks it's 2008 again. Do YOU think like he does? I hope not, especially when it comes to gold, because the consequences of such thought could put you on the breadline, clutching a photocopier that prints toilet paper at a tremendous rate of speed, with little or no value.
I still believe the banksters would need to send the Dow below the lows of August to permanently send most of the world's business owners and the last mom&pop stock mkt diehards out of their stock market priced chased clown act, in a loss-booking frenzy.
A lot of loss-booking took place in August by Fudd the lifetime market loser, but the "seal the deal" number to make it a lifetime exit from the market, never to return, is a move below those August lows.
Congratulations to Martin "Martyman" Armstrong, for highlighting the mistake of the public in hanging the bankers in the panic of 1869, rather than the banksters. "Can we glue their heads back on, maybe they'll be ok, we hung the wrong guys, sorry!" -Joe Public, 1870? I've mentioned in the past that those families who control the banks are the banksters, and those you see in the role as directors and traders are bankers and managers, albeit...prospective banksters.
Martyman speaks of manipulators vs bankers, with the manipulators at the top of the financial/power totem pole. I refer to banksters in the same way as he refers to manipulators. The banks are bankster wealth transfer machines, and the greatest wealth transfers to the banksters from the public occur, ironically, when the banks are either near-bankrupt, or actually bankrupt, as they are now.
In good times, the banksters make money from the banks from fees and usury, and tremendous businesses are built as a result of the credit extended to budding businesses. In crisis, they make it from direct wealth transfer. That's the two faced nature of the banksters. Dr Jekyll the business builder in a boom becomes Mr. Hyde the financial rape and pillager, in a crisis. A crisis designed and carried out by Mr. Hyde.
I want to talk about the technical condition of the gold market, now that some dust has settled, emotionally. First off, a solid price sale has occurred, and a 50% one in silver. The short term daily charts are very oversold, price bounced off an uptrend demand line on the weekly chart, and tagged the 200day moving average.
At the same time, it's important to understand that the longer term monthly charts remain seriously over-bought, much like the Dow did in the late 1990s, but for reasons of fear this time, not greed. My concerns for a 2008 again/crash scenario are not here and now, but down the road into 2012.
It's very important to remain rational in this crisis, and understand that massive drawdowns are part of the crisis survival game, and much more massive drawdowns lie ahead for YOU, despite the promises of the world's worst investors who promise to play timer for you, and guide you thru the next moves for gold, all the way to the other side of the crisis. Those who cannot let go of timing as a tool are being set up for financial damage that goes far beyond "complete wipeout".
Attempting to trade your way thru a parabola represents sheer lunacy of financial thought, but the "beyond outrageous" egos of the timers won't let them face the mirror, even for a few seconds of time, and close down their "we gotta know what's next for gold against the dollar, gotta, gotta, gotta!" crisis survival manual for you, that they got out of the cracker jack box.
Do YOU think I don't have the urge to play timer now? Of course I do. The difference between the professional trader and the ego-fuelled idiot is the professional knows when to sit on the bench and let gold itself work for them, and that time is now.
Gold is only on the cusp of the volatility theme. It's not right in it, but team timer doesn't care about your wealth. All they care about is "scorin' big calls". The banksters are going to really destroy the timers over the next few years, and it will end beyond horrifically for them. Are YOU onside?
Keep yourself in that sweet spot between fear and greed/ego. Yes, gold is oversold in the short term, and the top callers are already mostly underwater on their short positions as of this morning, because they piled them on in a reverse-pgen price plop as price fell, rather than as it rallied, as the banksters did. So, rather than booking massive profits into the decline as the banksters did, team flipper/timer/shorty pants is now underwater, and set to be roasted by the banksters in a major way.
Huge legs to the crisis, surprise legs, lie ahead. All will be resolved with gold going higher, and all will result in massive drawdowns to YOU as that happens. Use the 1900-1500 peanut show to train yourself for the supreme endurance that will be required in the parabola zone. It's not free money that's coming to you. It's drawdowns that are off the charts. Team Endure will build mind-boggling wealth. Everyone else, and I mean everyone, will be obliterated. Endurance is what the best timers are focused on, here and now. The worst are focused on everything but endurance.
Work methodically to end the use of leverage. When an item is poised to rise tenfold, (or 100 fold) you don't need to try to make tenbillionfold. Leverage is a target of the banksters/Mr Hyde in this crisis. The banksters tend to let their marks build huge egos and profits, for many years, before taking it all away. The set-up is in play now for the leveraged marks. Understand that you [are] marked for extermination, if you use leverage.
The size of the OTC derivatives marked to model debt ball exceeds the net worth of the world. It all will be marked to market, and as the rate of marking to market accelerates, the revaluation of gold must accelerate, or the system will close. As the revaluation accelerates, so will the volatility, as the banksters exponentially accelerate the increase in margins on the futures markets worldwide.
That revaluation against the OTCD blowout is more leverage than you could ever borrow. Few understand that the ultimate leverage in this crisis is to operate without leverage, with gold bullion as the bedrock of your operations. Few understand. Few are getting richer. Focus on de-leveraging yourself, so you end the crisis at the finish line, not the breadline, which is where most citizens appear headed.
I want to be clear about what happens if gold were to fall. In 2008, trillions in OTC derivatives blew up as real estate and stock markets fell. At Dow 6500, the financial system verged on shut down. If gold falls hard in price, other assets are falling, and more OTC derivatives could blow up. If gold fell hard, say to $500, you can kiss your bank deposits a permanent good-bye.
The reason Bernanke has to hold the bond up in price is not to generate growth. That's Dr. Pinocchio telling you what you want to hear. He has to hold the bond up because there are so many OTC derivatives written on the bond markets that a collapse there could cause so many trillions of derivatives to blow up that gold would probably have to be re-valued to GoldPriest's $80,000-$100,000 number overnight. All stock markets and banks would be closed immediately and all short sales banned, probably for decades.
A slow bleed of the bond price is the only way to "manage" the marking to market of the bond OTCDs, which is inevitable. Gold will be re-valued accordingly, to manage the blowout. A gold price of $10,000 or higher is probably sufficient to allow the financial system to be kept open while the bond goes into a bear market. A collapsing gold price is by definition financial Armageddon. The central bank managers know they cannot stop buying gold at an accelerated rate or everything shuts down once the bond goes from bull to bear. QE targeted at bonds has always been a smokescreen, a peanut play, and a warm up act. Only gold revaluation or money printing as official central bank policy can end the crisis.
The downside on gold, to a price of zero, is dwarfed by the upside. India understands. China understands. The Western [market] timers do not understand. They almost took you out of your gold, in some cases. Don't let it happen again, that urge to liquidate. Play smaller, but understand the consequences of selling gold because of what the timers tell you. The story of gold now, is about the risk of being out of gold, not the rewards of being in. If you think about the financial language that I use, for me to speak of the risk of being out of gold, rather than the reward of being in, should give you an idea of how serious the crisis really is, and the size of the legs that lie ahead.
Gridtime. The champions of this crisis will be, for 99.99% sure, those who emerge at the other end of the parabola with their physical gold and gold stock positions intact. The biggest money will be made by those who survive with their gold items intact, and then move a portion into bonds. The compounded rates of return in US Treasury bonds, as that bear (which has yet to start) winds to an end, will be surreal. Those who are focused on flip trading their way to the finish line [of the gold bull] will not survive. The 1900-1500 micro move is your gift. Not as a price sale. It is your parabola zone training session gift, but almost none understand. What's coming in the real parabola zone is going to make team "2008 again" beg for 2008 again. 2008 again saw Lehman marked to market. Now you get to see what happens when the other 95% of the derivatives get marked to market. When the crisis ends, leverage can be used to operate in one of the great range trades in gold in world history. Patience, leveraged fans. Know your spots. There are years of time between them. Understand patience, to get richer.
Thanks
Cheers
St out