Dec 12, 2011

Congratulations to IB (interactive brokers) for issuing a tongue lashing to fear-mongering operators. Gerald Celente ranted on and on, for years, about the end of the universe, and then in the ultimate irony, it was HE that came to an intermediate term end, as his leveraged gold play at MFCorswine was force-liquidated.
This crisis is about the destruction of leverage, and the punisher will take no prisoners.
An army of fear-mongers jumped on the MFG fear-mongering wagon. "Let's see, if MFGlobal was in trouble, I'll make up a story that every broker operated just like Corzine did, and I'll be famous. Who cares if I panic a million investors with my fear-mongering, I'll be famous!" -Fear mongers, dec 5-12.
I never bought the HH (hyper-hypothecation) numbers that the Thomson-Reuters hypster pumped into the media, but I said I'd hire a securities lawyer, to get further clarity. IB's numbers seem solid to me. The Thomson-Reuters maggot should crawl back to his hyped up hole in the ground, until he can think of new lies to pump at you.
This HH issue reminds me, very much, of the fear-mongering about "banksters about to blow on comex any microsecond now, because my insider janitor contact at the comex says so!". That nonsense has been used for fear mongering since gold $340. Buying gold because trillionaire banksters are supposedly about to blow up on the comex is the world's stupidest reason to buy gold.
Buying gold because leveraged traders will be blown to financial kingdom come when the banksters turn off the leveraged trading tap on the comex... is a realistic reason to own gold.
A broker that uses customer funds to buy govt t-bills or loans out a stock to somebody to short, is not the same as using the brokerage's funds to buy illiquid OTCD credit default swaps on greek bonds, with 8 to 1 leverage, and keeping the show 100% off-book. Corswine should be stripped of all his wealth and made to work at menial taks, for the rest of his life, for minimum wage. A politician needs to be held to higher standards.
IB didn't issue a denial. It was a tongue lashing. Let's hope more brokers do the same. It's Thomson-Reuters that needs to issue a denial, and get on the defensive. Just as gold went on the offensive against the pathetic dollar bugs in 2011, so IB is on the offensive against the fear-mongerers. Congrats to IB.
Own bullion? Yes. Own lots of it? Yes. Panic into it and out of your other exchange-traded investments because of statements made by a talking crackerjack box? No.
Take calm, measured, steady, and moderate actions, and do so... consistently, with extreme patience.
Nobody is interested in buying stock certs from you when their grocery has no food. The main reason to hold stock certs physically is so you don't blow them out [sell them] when price tanks, like it did in 2008. The other reason to hold them, the MF Global event, has already occurred.
The next insurance job in front of you is to be sure you have some physical gold & silver bullion, cash, and food in your possession. The financial system is likely to have a number of short term closures, 1-3 day bank holidays. That is the event you are insuring against, not the end of the universe, and it is probably a quite a number of years away.
Prepare now, and predict later or never. Put your car insurance certificate in your car. [Pepper spray?, or ??] Put your food insurance in a defined insurance area. Don't grandstand. Just do it. You don't need a thousand acre farm in your cupboard, but something needs to be in there that is left alone.

Gold is trading down about $30 this morning, on sale at about $1685.
One of you, (GoldGas?), mentioned that some reports show that almost a million jobs could be created thru the shale gas industry over the next few years. What that does is build the quality of the natural gas asset. Not for price appreciation, but for a reduced risk of the item going off the board.
That's pgen-friendly. The more natgas that is used, the lower the risk it has of going off the board. I wouldn't give up my short position on NG, but the power of the natgas asset is growing and confirming the power of the much larger long position accumulation plan.
Some analysts say the number of jobs that will be created in shale gas is almost negligible. If the shale story turns out to be shorter term, then price appreciation occurs. If it turns out to be solid, then gas is likely to become a more solid asset, from an ultimate risk point of view. Eiether way, YOU win.
It's important that silver investors stay focused on this metal's role as gold's little brother. The banksters are working steadily to put Elmer Fudd Public Investor into a position where he couldn't buy any silver, even if he wanted to. Institutional money manager liquidity flows, central bank gold buy programs, and the printing press, are what is going to fuel gold, silver, stocks & commodities higher.
Forget about Fudd. He's a victim in this crisis, not a player, and his final play takes place on a bread line, not the "more affordable than gold" silver pipedream market.
I own silver, and I'll own more if price declines more. Do I own more silver than gold? No. In a greed-based metals bull market, silver should be the biggest bullet in your metals gun. In a fear-based one, it's gold. Click this silver chart now.
Note the head and shoulders top pattern that I talked about a week ago. We're at the neckline now, and price could easily melt to $26. Gold has already blown it out. Does this mean silver is acting better than gold right now? Well, the Dow is acting like a champ around 12,200, and central banks are loaning out gold, not silver, so yes, silver is acting better than gold. Will that continue? I wouldn't predict that....
I have no idea if a neckline break and tanking on silver happens, but my buy orders bullets are locked and loaded for accumulation action, if it does.
European banks are pulling deposits from each other like a wildfire on wheels, and depositing it with the ECB. That action is, ironically, further weakening the euro commercial banks. Gold is weaker today based on euro bank shorting of gold reserves to get dollars to meet margin calls. European commercial banks are not willing to invest in traditional collateral, and gold is acting like a champ against this kind of action, down only about $35.
Click this gold chart now. Note the head and shouldering action and necklines in play. There are more necklines that can be drawn in, but you get the point with these. The question: is gold leading silver lower?

Gridtime. I think the proper question is: Where are your buy orders?!

Thanks!

Cheers