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Aug
8, 2012
Monday:
Canadian markets closed. Action? HUI, GDX & GDXJ blast
higher.
Tuesday:
Canadian mkts open. Action? Hedge funds resume their shorting
on the CDNX market, and HUI, GDX, & GDXJ promptly look
like the 3 stooges stuck in quicksand.
The
Ontario Securities commission was founded by a crooked cop who
owned a chain of boiler rooms. What's changed? Answer:
Nothing.
At
some points in market time, gold can fall $200, and nobody
cares. At other times, a $100 fall can cause a raging bear
market. Now is probably one of the latter points of
time. That could change in a few weeks, and likely
will.
In
a bear market, when price bounces, there are no price chasers
to buy, and when price falls, strong hands don't buy. They
sell. That's what a bear market is. In
gold, silver, and gold stocks, there
are no more weak hands to sell. Most
writers say: "If
the weak hands are gone, now gold and silver go to the moon!"
There
are no more weak-handed sellers, but here's what no writer
wants to face: If gold falls now, who is selling?
Horrifically, the answer is: The first wave of the gold
community' strong hands, pension funds, and gold-holding
institutions. They sell. And they don't come back if
price bounces, any more than the price-chasers do.
How
many writers have talked seriously to their readers about
managing the horrific hits that occur on the road to
the supposed honey pot zone in the sky? Answer: None. That's
why their subscriber lists look like gas tanks on fire.
If
GDXJ blows out the blows, I have no choice but to see my pgens
to zero trigger much bigger buys. I'm fully aware that most
gold community investors will be screaming in agony, as my
buys are triggered. That's the real world where I live. I also
live in a real world where GDXJ $50 and GDX $70 are the real
prices required to restore any semblance of sanityto
the general gold community, but the community, in our
lifetime, will never be the same.
Live
and fight for GDXJ $50 and GDX $70, while buying any and all
weakness to zero. With every bit of your soul, on both fronts.
If
you want to see the strongest hands in the gold community
bailing on their gold in terror, keep cheering for the bond
market to really crash, and your insane wish will come true.
The Lehman-caused crash was a peanut parade compared to what
happens in OTC derivatives land, if the bond goes south in a
big way, at this point in market time.
Gold
probably goes to $500 if the bond crashes now. It might go
under $200. A decline to say, 100, on the T-bond could be
bullish for gold, but once rates start seriously rising as the
bond goes under par, interest rate derivatives cause hundreds
of trillions of dollars in margin calls, and the entire system
closes down. All banks close. All brokers close. All gold
community bond market put options would cease to exist, and
that will be the very least of your problems. Mad Max
will be standing in front of the grocery store with a gang of
500 murderers, and barter will be the last thing on their mind
when you show up, holding your "silver, because it's the
real money, for barter!".
Luckily,
for you, that's not a card the banksters are interested in
playing."If you are treading water, even if you are a
good swimmer, at some point you need to get to land." -
Eric Rosengren, Boston Fed President, Aug 7, 2012. The
banksters are short the dollar in epic size, and they are
preparing to collect a much bigger amount of the money they
are owed on their OTC derivative contract wins. And
Eric has his orders to help make it happen.
Open-ended
QE is Jim Sinclair's QE to infinity, which is what I told you
from day one: bankster repo to infinity. The
banksters want the hundreds of trillions they legitimately won
on the OTC derivative contracts, and they are coming to get
it, in a legal but illegitimate way:
Repo
To Infinity.
Shorting
the bond in the face of what happens to the system at lower
bond prices, AND in the face of open-ended QE (bond buying
with money from an electronic printing press), is
madness.
Repo
1 and Repo 2, wildly cheered by the gold community, made the
banksters trillionaires. How anyone thinks that the entire
open interest of the gold and silver positions on the comex
are anything other than an ant in a jar, in the big bankster
scheme of things, totally blows my mind. It blew my mind at
gold $340!
I
expect Repo To Infinity to be launched before Oct 1, because
it will give Ben Bernanke high standing with President Obama,
while giving enough time for the citizens to view it as normal
and successful.
No
Fed Chairman reaches election day in bad standing with the
President, and this election will not be an exception. In
fact, it could feature Ben is wearing a "Vote For
President Obama, I am!" T-shirt.
I
don't expect Repo To Infinity to make the banksters
quadrillionaires, but it will set the groundwork for it to
happen, and it will, when they begin to buy the public's bonds
and dollars in super-size, after the supply of US
dollars has been increased by a staggering amount.
After
the banksters have completed Repo To Infinity, the bond can be
dropped thru a trap door, without destroying the system, and
it will be bye bye Fudd then.
I
don't think I'm capable of imagining the wealth the banksters
will create for themselves by buying OTCD long-side bets on
the dollar when the dollar is at a point like the Dow
was in March 2009.
Think
about YOUR actions in Oct 2008 at the tick lows of gold
stocks, and in March 2009 at the tick lows of the Dow. The
question isn't what you did then, but what will you do when
the same thing happens to the dollar? Hint: 3 strikes
and you're out.....
At
the tick lows for the dollar, will you join the general gold
community (and Fudd) in screaming, "hyperinflation now!",
or, will you find the intestinal fortitude to take
a position in the dollar, alongside the
banksters?
Today,
a gold bear market that sees YOU sell your gold in SHEER
TERROR has 10% odds, and RepoToInfinity, which blasts your
gold higher, has 90% odds. Are you prepared?
Gridtime! Let's
close with a sweet note. Please click
here now. Sugar has a small h&s top, and has arrived in
the vicinity of mini HSR. My short positions look like giant
candy bars in front of me, coated in mouth-watering profit.
Should I eat them all? Well, mini-weakness requires mini-buying
of longs, and mini-profit booking on shorts. Ok Sweetie, see
you out there....
On
the Repo To Infinity gridlines!
Thanks!
Cheers
St
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