Jun 24, 2013

"...I think gold is going straight to $1,150" said Dominic Schnider, UBS Wealth Management analyst, June 24, 2013.
The banksters won. Jim Sinclair was correct in forecasting that physical gold buyers in India & China would overwhelm fund selling on the comex, if the banksters pushed gold through key chart support zones.
What he didn't anticipate was that the banksters would cut off all financing to both Chinese & Indian gold dealers when the selling started, or that India's Gman would violently attack the gold consumer directly, with a modernized version of the CFTC's "liquidation only" order of 1980, in the silver market.
The banksters win, because they make the rules, and when they are losing, they change the rules, so they win.
Indian demand reached 800 tons in May, but the bankster chimps and the Gmen made sure only 160 tons made it to the eager buyers. Reliance Industries, the largest company in India, just announced they are getting out of the gold business, likely because of government threats. The bottom line: Indian gold dealers are under massive attack by the Gman and the banksters.
The "Gman & bankster rule change" show continues this morning; working in tandem with the Western banksters, the Indian Gman just announced that... all government entities in India will be banned from importing any gold at all.
The Western banksters issued immediate lower targets for gold, as soon as the Indian Gman decree occurred, by coincidence of course. These new bankster price targets are my $1033, $1105, and $1155 HSR zones.
For many years, I tried, with extreme vehemence, to make the gold community understand that when you get into bed with Chindia's commie rat Gmen and central bank manager scum, you are going to get brutally stabbed in the back, but nobody listened to me. I wonder.... If they are listening now?
The gold community's former heroes, the Chindia Gman & the Chindia central bankers, have taken off their fools gold masks, and revealed themselves as gold haters, gold community haters, and bankster whipping boys.
The size of the payoffs, from the banksters to Chindia's Gmen, especially in India, must be astronomical.
Could anyone have predicted the timing of the Chindia Gman/bankster attack on their gold-buying citizens? No, but it shouldn't come as a surprise, and when gold rises to $3000, you will be ready to endure a new scam that involves the bankster chimps changing the rules again.
None of this comes as any surprise to Chindia's citizens, who have experienced every conceivable Gman/bankster scam that is humanly imaginable, for thousands of years. It's why they own [physical] gold, period.
You've felt the real power of the banksters to move the mightiest market in the world. Gold. He who has the gold, makes the rules. The banksters continue to buy almost all the gold that is sold by their targeted marks, and the funds continue to build an ever-bigger short position, just as the funds built an ever-bigger long position as gold approached $1000, and as it approached $2000.

How do I expect QE tapering to play out? Well, if the Fed goes from $85 billion to $80 billion, I would expect $1 - $5 billion in BIs (bail ins) to occur, to make up some or all of the "shortfall" of OTCD payments to the banksters. Only a severe chop in QE would result in a direct BI attack on Western bank depositors, to "help the taxpayers".
Most of the BI action will instead involve wealth transfer from financial institution stock & bond holders, to the banksters. I'm cancelling my plan to buy Bank America stock on a hard sell-off, because of this wealth transfer BI scam.
Please click here now. Double-click to enlarge. That's the weekly T-bond chart, and the big head & shoulders top pattern coincides with the Yen H&S top, and it is why the US greenback is rallying.
All Graceland gamblers should short the bond, via pgen. I am. That h&s top on the bond is telling you that Ben will do his taper caper, and BI, but much more importantly, that top tells you that cost push inflation is coming. Stagflation will also appear soon in America, in a small way.
I told you all years ago that you wouldn't like what happened to gold, when the banksters turned their backs on the bond market, at least, not at first. You're living that experience now. Inside bond-land are the largest number of legacy OTC derivatives (backed by no clearinghouse).
The size of the bond market OTCD mountain is hundreds of trillions of dollars, and this top pattern indicates that an implosion off that mountain of OTCDs is a real possibility. Here's how it could play out, and it may explain why the bankster algo traders are huge gold buyers now, while their analysts are "super bears":
A mini-mountain of Fudds are invested in bonds they bought in total panic in 2008, at current price levels,but the Fudds are dwarfed by government, pension, and institutional holdings of interest rate OTCDs.
If you think the sell-off in gold was big, when the chimps opened the $1523 trap door, wait till you see what happens to the bond market, and perhaps to all the world's stock markets, if the chimps open Mr. Bond's trap door.
Dr. Pinocchio could issue a statement, as all the world's financial markets, except gold, totally implode, that the markets are imploding because the economy is superb!
Here's the problem with the bond-US dollar link; in a normal sell-off in bonds, the dollar rallies, but in a bond market OTCD wipeout, Ben might find himself ordered to buy the bond in gargantuan size, to stop the wipeout.
Because there are hundreds of trillions of dollars in bond market OTCDs outstanding, those entities holding them would be ordered by the banksters to liquidate property, stocks, funds, anything they own, to meet margin calls that would make the Lehman implosion look tame. Ben may have to print $20 to $50 trillion in US currency, or more, to stop the implosion of the financial system, while the gold-soaked chimps roll on the floor, laughing hysterically, and Fudds all over the world begin killing themselves.

Gridtime! If the bond implodes, OTCD-style, Ben's money printing may cause a loss of confidence in the dollar, and create the greatest short covering rally in gold, in the history of financial markets. When the chimps opened the trap door at $1523, the technical target became $1123. Are the chimps going to cover their huge gold short position profitably, and be sitting net long gold, on the comex, just in time for the bond market to implode, in a hail of OTC derivatives gunfire, sending the POYG (price of your gold) vertically higher? You can't know the answer to that question, but perhaps you should grab an extra bag of Orville Redenbacher's finest popcorn, because the bankster-owned super-crisis show, appears ready to hit the main bond market stage!

Thanks!

Cheers