Stewart Thomson sounds wild, but he is, I think, actually rather
methodical and risk-avoidant.
You can see a number of his
dailys here.
Below are a lot of excerpts from those dailys.
Here, I try to summarize what Stewart Thomson is telling us about how to invest.
Glossary:
Bankster: An actual (beneficial) bank owner or a Bankster Nominee Shareholder. For such an owner to be a bankster, they must own a significant percent of the bank, have not made efforts to divest themselves of that ownership except possibly for tactical purposes, be affirmative to, if not actively seeking, greater ownership and control, and approve of bank expansion.
Bankster Hierarchy: Banksters themselves, Bankster Nominee Shareholders, and Bankster Traders. Think those controlling the Rothschild banks. And then add in whatever equivalents there may be in India and China. Then assume that these people can influence central bankers such as Bernanke. Include 5-25 central bankers at each major central bank. Include 20-50 traders within the proprietary trading departments of each too-big-to-fail bank. Then include any Gmen who, via a revolving door, have sympathies more with the banksters than the government. Then, perhaps, include all those decision-makers of money-lending (parts of) institutions. Then exclude all those doing honest traditional small-town-style banking (profiting only on the spread between what they pay depositors and what they charge borrowers).
Banksters - discussion:
Thomson: The reason I call them the banksters (a moniker I did not invent), and not the bankers, has nothing to do with what they do in the major markets, which is how most writers use that term “bankster”. In the market, they display the greatest exhibition of courage and emotional control in the history of markets, and it has nothing to do with their power to print money. The[y] eat iron for breakfast. I call them the banksters because of their total disdain for the US constitution, and for the regular person. They view themselves as some sort of “superior entity”, and they ENGINEERED the otc derivative crisis, and ENGINEERED the coming SOVEREIGN DEBT CRISIS, which is better termed the sovereign TOILET PAPER MONEY CRISIS, as a means to a world central bank, run by a grand central bankster puppet they control. The banksters are not communists. They are slavemasters at worst, benevolent dictators at best. They learned their trade from the ancient Egyptians and Chinese dictators, the trade of keeping the population productive and creative, and controlled. To enrich themselves to the maximum extent possible. In some ways, they are almost more machine than human. The sole purpose of the coming global central bank is to make them QUADRILLIONAIRES. That’s a million billions, a thousand trillions, for those of you who are wondering. The US constitution is the prime target of the banksters, because by definition you can’t have slaves in a nation where the Gman actually operates under such a document. The banksters plan to replace the US constitution with a world constitution, and you can bet all the tea in China it won’t look much like what remains of the US constitution.
Aug 12, 2010: The “banksters” are not the regular research analysts at Goldman Sachs or JP Morgan, generally speaking. They are the nominee shareholder families [the actual or beneficial owners (who cluster in families, such as the Rothschilds), presumably -FNC] that control the entire banking system globally, including most of the central banks. ..... There is no bankster crew of evil analysts operating in the banks with their names out in the open, while taking the other side of the customers’ trades. The “dark side” of the banks is within the proprietary trading departments, and you’ll never see those people in the public eye, let alone publishing research reports for the banks.....If you look at the operation of the comex trading in the NIGHT, those two analysts are simply not capable of the intense work required to stare at the bids and asks all night long and create the kind of set-ups and painted charts to pick the pockets of the fundsters. Those are BANKSTER TRADERS and they have an entirely different AGENDA than the bank ANALYSTS who are just highly intelligent regular joes. It is the bankster traders that you need to worry about that NEVER show their face, not the analysts. ALL those traders care about is money flows and margin positions and buy and sell orders IN THE MARKET. They are warriors, not analysts.
nominee shareholder Ostensible or registered owner who holds shares (stock) on behalf of the actual owner (beneficial owner) under a custodial agreement. Also called nominee stockholder. Christopher: "By "nominee shareholder families" I assume Thomson means those families that use nominee shareholders in order to mask their ownership of banks and other institutions. If anyone knows more about this practice some details and examples would be helpful."
Oct 16, 2010: ....there is no competition between China and America. The global financial system is operated by banksters, and that includes Chinese banksters. Banksters operate together, against everyone else.
March 17, 2011: The banksters have low levels of morality and are tactical geniuses. A deadly combination.
Jul 12, 2011: The gold community vastly outnumbers the banksters, but the banksters act professionally in the market responding to HSR in their trading.
Sep 22, 2011 22. The gold community needs to get "only" about 1000 times more serious about just who the banksters really are. They are not a bunch of bozos obsessed with shorting gold and silver to "stop them from rising". They are the greatest traders in the world. They are massively long gold and silver and they are totally ruthless. They don't care about rules or ethics. They care about power and maintaining that power. They want the public out of the stock market and the gold community out of gold, and this morning they are working methodically to get that job done in part. 23. "Just like in the last bull market, it will be the banks that make all the profits in gold this time" - Jim Sinclair, 2010. Few believe. Few understand. Few will survive. 24. Gold would be down $500 this morning if the banksters were not on the buy. They ARE on the buy which is why gold is not down $500, and the only reason it is not down $500. That doesn't mean they don't want it lower. The lower it goes, the more they take, and the only question is, are YOU joining them on the buy, at all? If not, at least don't join all the idiots in selling to them.
Oct 3, 2011
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.
Bank Economists: a highly competent legitimate economist in the employ of central banks.
April 18, 2013
Bank economists are not "the banksters". They are legitimate economists, and much smarter than any economist in the gold community. They don't have an "agenda". The chimpsters that control the banks do have an agenda, and the chimps use the analysis of the economists to create economic policy at central banks. That policy leads to other changes in the economy that is analysed by the bank economists, better than anyone else analyses it, except for the chimps themselves.
Bank economists don't have giant arrows to zero or Pluto, drawn on their gold or Dow charts.
Here's what these economic mighty men see out their analysis window: Put Options. The same thing I told YOU about. Protection. The economists believe gold is going higher, and the Black Swan event is gold $1100, not gold zero.
Chimpster: Evidently similar to bankster. (??) Perhaps Stuart Thompson is defining Banksters ~ Chimpsters + Bank Economists.
Bankster Nominee Shareholder: a trust, bank, company, foundation or other entity which is an ostensible or registered owner of bank shares and which acts in the interests of and is controlled significantly by a bankster.
Bankster Traders: Anonymous individuals who do “the intense work required to stare at the bids and asks all night long and create the kind of set-ups and painted charts to pick the pockets of the fundsters.” “The “dark side” of the banks is within the proprietary trading departments, and you’ll never see those people in the public eye, let alone publishing research reports for the banks...”
Gmen: These are the treasury officials responsible for funding the government's social programs and wars. If there should be a surplus (there almost never is) then they manage this surplus. They are under pressure almost impossible to resist to turn to banksters to finance deficit spending.
Core Position: The part of a position you don't trade. Thomson sometimes distinguishes outer core and inner core, held for the duration of the bull market.
Trading Position: The part of a position you use in PGEN style investing. It may be all in your base currency or it may be in the position.
Fundsters: Thomson seems to view most hedge fund managers as little better than any other price chaser. He does respect a few: John Paulson, Paul Tudor Jones, Jim Rogers, ....
Base Currency: Money. For US investors it is almost always the USD. For a Canadian, it is likely the CAD. Thomson is suggesting that everybody begin to use Gold. Not “my net worth is $2,000,000” but my “net worth is 2,000 ounces”.
PGEN-style investing: The PGEN tool implements Thomson's style of investing. To start, you pick a security that “isn't going to go to zero”. (Enron, a gold mining junior, and an energy storage company like VRB Power Systems can go to zero. Commodities, Utilities, etc. pretty much can't go to zero. Gold most assuredly can't go to zero.) It may be possible to use a fund such as GDXJ which can't go to zero but is made up of 30 or so juniors which individually can go to zero. The essence is in buying weakness and selling strength. And to do this your transactions must be much smaller than the total value of your trading position. You admit that "you better have sold your positions before the mkt tops out, well before it happens, or you failed." and "selling at the top isn’t a victory. it’s failure. it’s a lotto win". You do not do a “price plop” of your whole trading position out of or into the security at what you think is an intermediate top or the bottom. PGEN-style investing is a lot of work. You establish a buy increment for weakness. You sell your trading position into strength at increments 3 times the buy increment. You may also sell your outer core at 10 times the buy increment. Your inner core position is held for the duration of the bull market in that security. A Thomson subscriber will have access to the tool, his site, and much more accurate info.
Thomson's Take on what is Coming:
The Stimulus Toolkit
Reduce bank reserve requirements. Cut interest rates. [This is oh-so last-century!]
Cut interest rates to zero. Even to negative real rates.
Encourage Congress to do Deficit Spending, Stimulus Plans. No longer justifiable/effective, after marginal productivity of debt (the amount of GDP contributed by the creation of $1 in new federal debt) goes below 1.0 .
Do Quantitative Easing [ref] : a form of monetary policy used by central banks to increase the supply of money in an economy when the bank interest rate, discount rate and/or interbank interest rate is already either at, or close to, zero. "Quantitative" refers to the fact that a specific quantity of money is being created; "easing" refers to reducing the pressure on banks. (Open Market Operations, TARP, ...) MINOR money printing is a BY-PRODUCT. Think 2 trillion to 20 trillion.
Fix the Dollar to Gold. This will have to be at several thousand $/oz. If this does not take us through the wormhole to the other side (with the new currency the “dollar” but backed by gold) then go to step 5.
Money printing. Just add digits to the Government's deposit accounts. Think $100 trillion or a QUADRILLION when you think about money printing as an official central bank tool.
Stewart Thomson on 2010 August 14: “...we are not even at the ramping up stage yet of [step 3] QE, let alone [step 4] revaluation, let alone [step 5] official money printing.”
Stewart Thomson on 2011 January 31: “you don't fix a multi hundred trillion (1014) dollar problem with a $600 billion (1011) solution.” (It's 103 times too small!)
Stewart Thomson on 2011 April 30: “Killing the leverage, locking gold in a tight range, and hiking rates so leveraging the range trade is prohibitively expensive, is how the banksters further erode the wealth/buying power of the taxpayer, as they sell gold back to the taxpayers at the end of this gold bull mkt, in exchange for a sea of gold-backed US dollar denominated T-bonds, paying the banksters massive rates of after-inflation interest,...”
Stewart Thomson on 2012, Sep 14: “The biggest bankster play is yet to come. .............The banksters know the US dollar can be diluted vastly more than most investors can imagine, and still remain a major reserve currency and the fiat bedrock of the world's financial system. The game is to increase the supply of dollars to surreal levels, create a panic out of them, and out of the bond, and buy them ALL for themselves, then re-introduce gold back into the money system”
Excerpts from Some of His Dailies:
Note that these are written from 4 to 7AM and distributed immediately. Six days a week!
Sept 2, 2011
Gold bullion runs the show. Gold bullion has outperformed in the show. The pecking order is: Gold, GDX, GDXJ, GLDX. That will reverse in time so that in terms of performance, the juniors will run the out performance show.
FNC:
Physical gold held for you. GTU, PHYS, GoldMoney, BullionVault.
Major gold miners. GDX.
Junior gold miners. GDXJ.
Gold exploration companies. GLDX.
After things become disorderly.
Physical gold in your posession.
Junk silver. Federal Reserve Notes.
Oct 14, 2010:
YOU are 33% trading Pgen, 33% outer core Pgen, 33% inner core Pgen as a "baseline", but tweaked by you, to manage your personal greed and fears.
Sept
1, 2010:
Just
to remind everyone,
trading positions are typically sold at 3 times the buy increment,
outer core positions sold around 10 times the buy increment, and
inner core positions attempted to be held for the DURATION OF THE BULL MARKET, or even into a bear market, depending on the prices paid for the positions.
Nov 2, 2009
17. Gold is the PUNISHER. And the banksters are using gold to punish all paper currencies with their game [being] to then claim, “look, all the banks and paper currencies under the system of national currencies isn’t working, the only solution is a BIGGER one, a global solution. We promise this time it will be different!” And all the public puppets will dance the “We’re saved by the global currency” dance. The banksters will let them out of the paper currency gas chamber and hand them gold at THOUSANDS of dollars an ounce that they CANT AFFORD. The pinbrains will buy anyways, with the carcass of their worthless savings.
18. “America has got to increase it’s saving rate now!”. Yeah sure, just in time to hyperinflated into oblivion. Thanks Mrs. Bankster, I’ll get right to it.
19. As the gold cover is introduced, the US dollar will effectively become the WORLD’S LARGEST GOLD STOCK. And the public will be selling it right at the bottom like there’s no tomorrow. Gold will be valued at thousands of dollars and ounce, so the dollar value of the banksters’ gold holdings will be huge, and what will occur with all paper currencies, will be like ALL your current gold stocks falling to 10 cents a share and then you sell them ALL to the banksters. That WILL be the action of the public with the dollar at the BOTTOM of the dollar bear mkt. Wait till you see what happens when the fundsters realize they should have ran a USD to gold carry trade, but they focused on the INTEREST rate differentials and leveraged that, per the banksters’ instructions. That strategy will in end in disaster for the fundsters. The time to play interest rate master comes after a bond bear market, not after a 28 year bond bull market. The public and the fundsters are SOAKED in bonds and various interest-bearing bond mkt sideshows. Junk bonds, income trusts, whatever. They will ALL be RAVAGED by the banksters very soon.
20. After 1929, John “Sir Johnny” Templeton bought all the NYSE big board stocks he could trading under a dollar with leverage (borrowed money). He made a fortune. After the dollar devaluation/printing extravaganza comes to an end, the US dollar market will look like the NYSE did after 1929. Those who buy into that lake of USD carnage stand to create massive wealth. But today is about creating the lake, not buying it for anything but a small range pyramid trade.
21. Those of you with ZERO Dow should keep in mind the Dow is the Gman’s main target of his hyperinflationary actions. The banksters’ main target is gold, but the Gman needs tax revenues, that’s WHAT he is, a tax collection machine. A soaring Dow, creating by the banksters destruction of the dollar, is just what the doctor ordered for Mr. Gman. Think about what you MISSED at Dow 6500. Do not allow your Dow short positions to exceed your long positions in size, but be prepared to buy the Dow at levels below 6500.
22. A number of people have said to me, “What can the bank of Canada do to lower the Canadian dollar? They are basically helpless.” Wrong. It’s called the Printing Press. Mark “Goldman Sachs” Carney lobbied parliament for absolute power to buy US bank otcds in UNLIMITED quantities, with printed Canadian dollars and then hand the worthless OTCDs to Canadian taxpayers to baghold. He didn’t get his way. But he’s got another kick at the can now, to pay off the winners of those otcds with Canadian taxpayer money. The Cbone (Canadian dollar) has rallied strongly, and the economy has started to slump, something he can blame on the “high” cbone. Mark is like the little brother watching big brother play out the window while he’s stuck inside. Mark is watching Helicopter Ben have all the fun while he is stuck staring at the Canadian central bank’s annoying charter, which is to maintain a strong Canadian dollar. Mark will do whatever it takes to get into the playground with Ben. And push the hyperdrive button on the printing press together with all the other central bank mangers. The bill for letting Mark outside to play will be astronomical, probably paid by generations of Canadian taxpayers.
Oct 27, 2009
The beat down on the energy ETF’s is likely a test track run for the gold etf’s. As a result of the “position limits”, the US natural gas fund has been forced to go into the OTC derivatives mkt and buy contracts for natural gas there. The banksters must be lying on the floor screeching with laughter as they watch this saga unfold. A saga they deliberately created. And of course only the banksters will be exempt from the energy position limits, big surprise. My suggestion is not to panic if you are a holder of the energy ETF’s, but to do further buying via either smaller ETF’s on Canadian exchanges, or via oil and gas companies and company etfs. The banksters want you to go to the futures market, where most of you will be trading too big for your britches with margin, and they can stomp on you like an ant.
I believe leverage in most parts of the gold market will be eliminated before the gold bull ends. Any short term success with leverage now, could be turned to longer term horror by the banksters. It is going to get harder and harder to stay in the gold market even without leverage, so don’t make the banksters’ work easier and buck yourself off the gold bronco by putting her on a trampoline!
Oct 26, 2009
1. A man falls from a 3 storey building on the concrete below. The ambulance arrives. The man has actually got himself into a standing position despite having a shattered back. He noticed a rope hanging down from the building and pulled himself up and tied the rope around his hand, holding himself upright.
2. The ambulance crew looks at him and exclaims, “He’s Healed!”. They drive off leaving him there. A few minutes later, he dies.
3. The major global economies are that man. Two consecutive quarters of positive GDP growth are the equivalent of the man dragging himself to his feet with a money printing rope.
4. Many analysts are wasting their time with their wet noodle fantasies that “the banks might have to raise rates to prevent inflation”.
5. The reason the banks would raise rates is to cut the rope holding the economic man upright. Not to help anyone. The sole reason the central banks exist is to take what you have. The commercial banks would love rates to go higher. So they can continue their world’s largest repo of real assets.
6. If you think the central bank ambulance is coming to help you, I think you’ll find their real plan is to race to the accident scene, an accident they created, then run you over and leave you for dead.
7. Any clown act of raising rates now won’t serve to “pre-empt” any inflation. It will blow out the economic recovery candle with an F5 Tornado. And it will be followed by massive money printing as govt tax revenues, already in the tank, go into a coma.
Oct 24-25, 2009
6. It was another winning trading week. The Pgen is full of surprises. [This is his little computer program that, for a secular bear or bull market, lays out a series of small buys on weakness and small sells on strength.] It surprised me this week with the additional strength in the aussie and especially oil. If I’d bet against King Pgen, I would have thrown away my week’s profits, and then some. Instead, I booked them! When I spoke of oil falling $11 and asked “Is anyone paying attention?”, well, I never thought it would rally so fast and ring the cash register so many times. Don’t fight your Pgen, you will lose!
7. ................... Price strength is for lightening up. Price weakness is for accumulating. ..........
8. IF you sold too much too fast, no you don’t rebuy it $200 higher to play catch up. Wait for REAL weakness. It may come from $1400, it may come from 1070. Some gold writer will nail it perfectly this time, just as SOMEBODY has nailed every single top and bottom since gold $250. The problem?
9. It’s never the same guru at each turn!
10. ..............
13. When you respond to price with a pyramid formation of buys and sells, you are effectively taking the market one day at a time, and there is NO DAY that you are not prepared for.
14. Bloomberg headline: “Bernanke says financial firms should pay for closings”. I agree. Let’s start with: closing the fed. I’ll go a step further. Let’s not charge Ben anything to close it. Ben, just close the thing down and get lost. We’ll cover your plane fare to move in with your hero in Zimbabwe. Question: what CEO of a business gets appointed for a fixed term of FOURTEEN YEARS, no matter how bad a job he does? No, the banksters don’t have unlimited power. Just 14 years of absolute power with NO AUDIT EVER. My mistake. I apologize. Attention all CEO’s of public companies: You can now refuse all audits by the tax dept and you can’t be removed from your position for 14 yrs. I’m sure Ben is ok with it… And remember, that’s NOT absolute power. That’s HELPING the public. In Ben’s words.
15. In his latest speech (a “masterpiece” available on Bloomberg), Dr. Pinocchio just announced a brainstorm: When times are GOOD, banks should save some capital, for when times are bad. Thanks Ben, none of us thought of that idea…
16. Then the man goes on to say that he’s noticed that the banks have actually INCREASED what he terms “quality capital”. This appears to be another brainstorm on his part: If we print 10 trillion and hand it to the banks, then give the bill for that 10 trillion to all taxpayers (who are penalized with JAILTIME if they don’t hand it over), that is truly “quality capital”. I agree with Dr. Pinocchio, the banks have indeed added quality capital to their asset base. Just as a successful art and jewel thief has added quality capital, after his latest heist of a major museum.
...............................
19. Nouriel Roubini should not have said what he did about GOLD. Picture Muhammed Ali in his prime. Now picture him fighting overweight, older, out of shape, against Larry Holmes. Beaten like a child. Do NOT slander gold. It will come back to haunt you and it will come back to haunt Nouriel with a beating he will never forget for the rest of his life. Remember Henry Kaufmann? He thought he was Mr. Smarty Pants too. Nouriel will look like a COURT JESTER as this gold bull market accelerates, just as Henry Kaufmann did as the bond bull mkt accelerated in the 1980s. I think Jim Sinclair is likely paying a level of respect to the man (while disagreeing with him on almost every point about gold), because he knows the end won’t be pretty for Nouriel, and he knows the banksters are using him…
20. I believed from the time Nouriel showed up on the scene that he, unknown to himself, was a bankster puppet, used to gain the trust of the public. What member of the public is going to buy gold after listening to Nouriel calling $1500 gold NONSENSE?
21. The dollar has already taken a 98% beating at the hands of gold. A further 50% beating during the greatest money printing, freedom robbing, and govt spending extravaganza in American history is NONSENSE? Suggestion: If I were you,
22. I wouldn’t bet too much money on Nouriel Kaufmann…
Oct 23, 2009
8. It’s too late to audit the fed. Ron Paul is wasting his time. The Fed should be closed down, not audited. Ron wants to shut it down, but after an audit “proves” that it should be closed. It’s time for a bulldozer, not negotiation. We’re LIGHT YEARS beyond the point where auditing would do ANYTHING. The printing of money should be returned to the US Treasury TODAY. Period. Think about that institution, the Fed: They are a private institution that control the American PEOPLE’s money supply. THEY decide how much to print, NOT the US Treasury. They have never allowed an audit, not even in good times. The fed shareholders get an 8% fixed dividend. Hello? In WRITING, they have gold bullion on their books at 40 dollars an ounce. Anyone with ANY common sense can see this is nothing but a RIP OFF MACHINE. And it’s doing ALL it was designed to do. It’s PERFECT. Yet the American public is demanding MORE regulations and BIGGER institutions, thinking that............. I still get emails from people saying, “Stewart, show me evidence that the banksters are all-powerful”. A thousand trillion dollars in otc derivatives with JP Morgan backstopping the bulk of it, in a combo with the burning of the constitution of the United States via a ZILLION “AMENDMENTS”, THAT isn’t all-powerful? What is then? How much more of a RAZING of America’s constitution is needed to open Joe Blow’s eyes? What kind of human being legally values the nation’s gold at $40 in the year 2009 and refuses to let a big 5 accounting firm look at it?
9. Answer: A MAGGOT.
10. Let me repeat: Govt is NOT bigger than markets. Govt can’t fix the crisis. There is a thousand trillion dollars to fix. There is NO SOLUTION. There is only DECADES OF PAIN coming as the debt losses are BOOKED thru both the destruction of the debt itself and thru the destruction of the paper currencies the debt is denominated in. Currencies held by the winning and losing side of the trade.
11. Those who have bought TOKEN amounts of physical gold are FOOLS. They continue to laugh in the face of the world’s lowest risk investment while they stand in the eye of a force 5 economic hurricane that is far beyond their worst nightmare. They are vastly bigger fools than they were when they price chased the stock and real estate markets in years passed. And the price they pay will this time will be logarithmically larger. This is the RAPTURE.
12. The real estate bear market is not over. It’s JUST STARTING. In terms of valuing it against gold, real estate is going into the GARBAGE CAN.
13. Don’t waste your time shorting the bond with anything but wild gambling money. That’s chump change even if you nail it perfectly. I WILL be laying it out technically for those who want to play the gamble. The time is near, but it’s not here yet. The big money made on the destruction of the world’s govt bond holders comes from focusing on gold and gold stock.
14. Many analysts are talking about the “speculative phase” of the gold bull market. One analyst thinks the juniors will be “hotter than the dot coms”. I agree with all he wrote about the golds. EXCEPT THAT. I don’t subscribe to that thinking, not at all. I say: The rocket move UP in PRICE will indeed be bigger than the dot coms, but it won’t involve ANY greed. It will involve TERROR. I don’t believe any speculative phase is coming. A DEATH phase is coming. The financial DEATH of those who hold only TOKEN PHYSICAL GOLD. The public will be engaged in breaking into each other’s homes to get food when gold is $3000 an ounce, not calling their golf ball advisor about the hottest gold junior stock. Their golf ball advisor will be in the bathroom with his wrists slit. DEAD. I am 100% serious.
15. If you want to make money in gold, really make money in it, you need to understand that you will be TAKING your PROFIT from the REST OF THE WORLD’s LOSS. An ocean is trying to squeeze itself into a water gun. [Exter's inverse pyramid 1, 2] That’s the picture you should have of gold. Why do you think not even the president of a major mining company knows where the GLD-nyse gold is stored? We’re entering the stage of GOLD REVALUATION, the 2nd to last tool in Dr. Pinocchio’s tool box. For those who need a translation, Dr. Pinocchio also goes by the name of Dr. Ben Bernanke. He WILL use revaluation tool. Unlike in the 1930s, this time the only “confiscation” will be the surprise discovery that a lot of paper gold is not backed with enough real gold. The banksters may enact some kind of “cover ratio” for the paper gold assets that is essentially saying “sorry, but your GLD-nyse stk is actually trading at a huge premium to bullion, sorry about that, but tough luck for you. To make sure this doesn’t happen at the comex, effective 10 seconds from now- to give you a heads up- there will be no more margin allowed, it’s a cash market now. Have a nice day.” Investors will likely panic and charge from paperland to physical gold. THAT will most likely BE the revaluation.
16. Those trying to value gold in different currencies and decide whether it is “really” rising have “lost it” in my opinion. Gold is not rising against paper assets. There is no “non-confirmation” because gold hasn’t gone to a new high against certain currencies. Gold is PUNISHING and DESTROYING ALL paper currencies. You can ride in the driver’s seat of the gold steamroller. Or get flattened by it. The choice is all yours. I’ve made my decision.
Oct 21, 2009
10. Remember the movies about the spies pretending to be double agents? I do. The bankers aren’t idiots like the fundsters. They know the US dollar is in a major bear market, because they created it! They know there’s big money to be made. And they are working feverishly to figure out how to take the Lion’s share.
11. At this point, the banks are making money on fees and interest as they sell the funds their carry trade positions. When you carry a position on leverage, you pay for that “privilege”. If you carry too much leverage, you may pay more than just interest, but that doesn’t worry most fundsters as they engorged on shorting the US dollar.
12. Investor memories are short. What happened to the Yen carry trade? Answer: It blew up as Lehman detonated. The yen on a cash basis rose from 90 to 114. That’s a 26 percent move, with no leverage. Picture a highly leveraged fund that has rolled all it’s past winnings into an even higher leveraged bet on the yen carry trade. When it melted, a supercharged rush into the US dollar occurred, which combined with the bustouts from the stock market joining them, blasted the USDollar right thru the supposed cement lid at the 80 marker on the index.
13. Now picture this: The banksters convince the funds that OTC derivates on the US dollar carry trade will make them even more money than leveraging their forex and govt bond currency spread trades. The only question the fund managers have is, “Where do I sign my name, can we do this before the market closes today?”
14. At this point, it wouldn’t take much of a rally in the US dollar to cause a huge malfunction of the carry trade. The funds made the right call, the dollar is toast. (Brilliant call, fundsters, noticing the dollar is in a bear market 7 years after the top). The problem is they got carried away with the reward side of this deal. The want to be Henry Paulson, but they forgot that he did a massive amount of homework on the housing market and then shorted it with huge leverage into an overbought market. He did not price chase it into an oversold market.
15. Sadly, it will take only a small rally to put the carry trade into the hands of the banksters as the ultra-leveraged funds have to liquidate. Bottom line: Don’t behave like a fundster in the market!
16. Why did Henry [John] Paulson, with his massive booked winnings from shorting real estate, buy PHYSICAL GOLD and not some major paper currency, for his play on the carry trade? I’ll tell you why and it will blow your mind. First, he bought GLD-nyse, the gold etf run by the banksters. But then he sold that soon after he bought it, and bought physical gold. Why? I have information that the President of a major mining company asked the banksters to prove that the gold held by the GLD etf really exists.
17. He was taken blindfolded in a van with no windows and driven around London until he had no clue where he was. He was then taken into a massive underground storage facility where he was shown the massive GLD etf physical bar holdings.
18. I personally believe that the etf did buy all the gold they claim they bought with the shareholder funds. And I believe those are the bars that he saw. I just have to wonder whose name is on those bars. Why all the secrecy, the James Bond action? If nobody can access the gold in normal way, well, if I was Mr. Paulson, I’d be looking for some assurance that there was some link between the billions I handed the banksters, and the actual gold that money bought.
19. One can only conclude that Mr. Paulson wasn’t satisfied with that link, and probably incurred a substantial cost to dump GLD and buy the real deal, and store it where he could touch it, and create the comfort that what he was touching was both really his and really accessible. I doubt he would have been thrilled with being driven around blindfolded and told, “here’s some gold that may or may not be yours, but if you want it, you have no clue where it is. Ha ha!”
Oct 19, 2009
2. The failure to focus on otc derivatives is behind most of the failed analysis in both the mainstream and the gold community. The mainstreamers are engaged in a mass head in the sand action, where if they just pretend a thousand trillions (a quadrillion) of worthless garbage does not exist, it doesn’t! They are just dying for a reason to get back into the stock market and they seriously believe that rising house prices, not rising house sales, is the cure for the all problems in the universe. What is more likely coming to them is an interest rate smackdown with a collapse of the bond market taking centre stage. Meantime, the gold community is focused on the fantasy of a Dow at ZERO with gold at INFINITY. The otc meltdown HAS occurred. The decision was made to fake-account it and an agreement was made with the banksters, the winners of most of the trades totaling a thousand trillion dollars, to pay them off over many years by sucking the money out of the taxpayers rather than shutting down most major corporations in America. .......... Don’t confuse a depression surrounded with money printing as meaning the stk mkt collapses to zero. A depression, yes, but with stk mkt soaring for years while the public takes turns lining up outside closed banks and slitting their wrists at home. .............
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15. Right now, the fundsters are leading the move OUT of the US dollar, after it is FAR into the bear market. The public is starting to join them in their own mini carry trade in the forex markets. Rather than buying hard assets, they are buying the commodity paper currencies. Far less risky than the aussie or the Canadian dollar is: FOOD and COMMODITIES. But the public got BURNT there. They price plopped and bailed when price went down instead of BUYING.
16. I want to quickly review the gold cover again in a few sentences. Repetition is important for learning. There is no question as to whether the banksters can halt the US dollar bear mkt with a gold cover clause. By linking a ratio (and perhaps listing that ratio in the markets as a PRODUCT to trade) of the gold held by the treasury to the rate of M3 or other money supply number, the dollar stops falling. The question isn’t whether the dollar stops falling or not, the question is whether the economy blows up like taking a gold blow torch to a hydrogen balloon, when that cover is put in place, as the otcd margin calls cant be met with printed money and default occurs. My view is the amt of dollars that still need to be printed is way higher than what we have seen to date.
17. Confiscation of gold COULD occur, because the MARKET may decide that the ratio of gold to printed money (and the ratio is against the rate of money printing, not the total dollars, meaning a 5% cover clause allows M3 to grow at 5% a year with no change in the gold PRICE, but a 6% change in M3 would mean gold is valued 1% higher or 1% more gold is bought by the treasury) is not high enough to provide confidence that the gold guaranteeing the debt is enough to convince bond buyers to buy bonds. The immediate target of such a confiscation is the ETF GLD-nyse. A thousand ton snack pack for the Gman.
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19. But that rally is an opportunity to buy gold, buy commodities, not a call to sell gold and commodities now in anything BUT your normal pyramid selling. There is no gold top. There are only gold top callers. If you want to buy US dollars, keep it small and do not forget you are buying an item that will be printed over and over again to cover a thousand trillion dollars in otc derivatives, of which vast sums in the tens of trillions at MINIMUM, and probably hundreds of trillions, are worth zero and in many cases far less than zero. When you get a margin call and FAIL TO PAY and then price turns up, YOU DO NOT OWN THE ITEM ANYMORE. Goldland and mainstreamland is living the fantasy that the losing side of the otc derivatives still own those bets. The losses are booked, but lied about. If the bets come on side, it is the banksters that collect now, just as a blown up commodity position with a broker is not yours anymore after your fail to meet the margin call. If the brokerage decides to take that position (or has to take it) and not liquidate it, any gains that come later are NOT YOURS. This is the same with the otc derivatives. Tens of trillions have been BOOKED as losses between the banksters and losing side of the trade, but not booked for the public to see. The banksters own BOTH sides of those trades now.
Cheers
Oct 17, 2009
20. I want to talk more about the END of the gold bull mkt. There’s a bit of a problem making an appearance and it isn’t very funny.
21. The Gold Cover Ratio Issue. When gold was fixed by the US Treasury at 20 dollars an ounce, that meant if you handed the US Gman 20 paper dollars, he handed you an ounce of gold. He was under LEGAL OBLIGATION to do so. Right now, at $1000 an ounce, the value of gold itself has not changed. It still buys the same amt of bread as it did at $20 an ounce. The dollar has changed. The supply of dollars has risen, so the price has fallen. There is more to the VALUE of the dollar than just the supply numbers. Demand of both debtors and creditors for dollars, and confidence, are factors more difficult to measure. There is no obligation of the US Treasury to hand you an ounce of gold if you hand them a thousand dollars.
22. At 20 dollars an ounce, if the Gman printed more dollars, he had to have more ounces of gold on hand to back up what he printed. He had 20,000 tonnes 80 years ago to back up his play money. As the financial crisis of 1929 accelerated, he got the brainstorm: “We need to spend money. Let’s print more money and spend THAT. First we’ll forcibly buy all the gold we can. Then we’ll print the money which will mean it takes more dollars to buy gold. But the stupid citizens won’t have any gold because we scammed them out of it. So they’ll buy the stock market and other “stuff” as they’re afraid the dollars will decline more in value. The US gold reserves have fallen from 20,000 then to 8,000 tons today(and many argue the number is less than 8000).
23. Some of you have said, “a new gold standard can’t work, there’s not enough gold to cover all the dollars !!”.
24. This is where it gets very very serious. In the 1930s the govt didn’t have enough gold to cover all the dollars they printed at $20 an ounce. So they raised the price they would pay for gold by about 70% to the $35 area. Instead of covering the dollars with more gold OUNCES, the Gman covered his dollars with more gold PRICE.
25. Right now, there is NO COVER. None at all. Jim Sinclair has HOPED the Treasury would launch a new GOLD COVER at about $500 an ounce. He believed that would stop the otc derivatives implosion. That didn’t happen. A ONE TO ONE gold cover ratio means, in my strictest definition, that all the dollars issued by the central bank are no more than the number of dollars required to buy all gold held by the treasury at the current market price.
26. But a gold standard need not be a full one-to-one ratio. Some gold cover ratios of possibility include only locking the dollars held by the central bank against the gold held by the treasury. The gold standard can be of varying strength. The more dollars covered with gold means either more ounces of gold or a higher gold price to do it, or both.
27. Now, I know the public spent most of their investment lives in a laughing contest over who could bash gold the most. Laugh at the gold sword and you shall die by it. Gold has only just BARELY begun it’s punishment of these idiots.
28. Here’s the great danger we face: Jim Sinclair’s hoped for $500 gold cover ratio has NOT occurred. There is still ZERO gold cover in place. The economies of the world are in MELTDOWN mode, notwithstanding the mark to model accounting that President George Orwell now uses to show a new boom is coming any day now. Jim believed a failure to enact the gold cover at the gold $500 marker would unleash “unthinkable” economic consequences as a $70 trillion garbage dump of otc derivatives would explode. He then surmised that the $1600 area would be the next stop for gold where the gold cover could be installed.
29. The HORROR is that the OTCD garbage dump grew from $70 trillion to $700 trillion with no cover ratio brought in. Tens of trillions of dollars of these contracts went to zero for the losers. OTCD’s are simply a private bet between two parties, like me betting you that gold rises to $1400 by year-end.
30. The banksters are on the winning side of most of these contracts, as most of the buyers were fuelled by greed, as the bankers knew they would be, leveraging their corporate net worth many times over in the greatest price chasing frenzy in history, dwarfing all other bubbles in world history.
31. Huge numbers of major firms worldwide were suddenly facing total bankruptcy and liquidation as the stk mkt and real estate prices turned down. Their leveraged bets (otcds) had bankrupted themselves. To collect a portion of their winnings, the banksters would have had to close down most major American businesses in an asset liquidation beyond comprehension. They agreed to settle for a partial payout, via a taxpayer funded money printing spree.
32. The financial system is dead. It’s worthless. Whatever happens going forward is about the banksters collecting the hundreds of trillions they won on the otcd bets. AFTER the banksters collect all they’re owed, they’ll really go to work to recapitalize the system. This is all an act right now. How much do they figure they’re owed? I don’t know, but I’d put $100 trillion as realistic. That’s assuming only 10% of the otcds are worthless. I’m being conservative. They’ve collected about 10% of that $100 trillion estimate. My view of the banksters is they want EVERY PENNY they are owed. The global currency is about paying off the banksters with creative financing. If the US govt prints up $100 trillion to pay the banksters right now, the USdollar goes to worthlessless and gold goes infinity. That won’t happen. The banksters don’t want to be paid in monopoly money. A world currency and a world tax will make sure the banksters receive every penny of the trillions they won legally on the otcd bets. A world central bank makes it a DONE DEAL. There will be no real mark to market accounting, because the system would shut down one second after the numbers were released, and the banksters would never collect a fraction of their debt, let alone get their world superbank new playtoy.
33. It is beginning to look like a gold cover at $1600 gold CANT WORK. Because it won’t just FREEZE the growth of otcds, debt growth, govt spending and the dollar bear, rather it will CAUSE the MARKET to recognize tens of trillions and probably hundreds of trillions in losses on the otcds. BECAUSE THE OTCD LOSERS AND THE GOVT CAN’T EVEN EXIST WITHOUT BORROWING MORE MONEY IN MASSIVE QUANTITIES RIGHT NOW. IF THE MONEY PRINTING MACHINE IS LOCKED DOWN VIA A NEW GOLD COVER RATIO, THEY ARE TOAST. A GLOBAL IMPLOSION WOULD OCCUR, PROBABLY WITHIN IN DAYS, BUT CERTAINLY WITHIN WEEKS AS THE ELECTRONIC PRINTING MACHINES WERE TURNED OFF.
34. So it appears the decision has been made to once again, to raise the point in time and price for the gold cover. Like raising the debt ceiling, raising the gold cover clause is underway again. Because the otcds grew by tenfold, from 70 trillion to 700 trillion, the gold cover is showing higher and higher odds that it CANT work to halt the dollar bear nor the OTCD monster at gold 1600. The world’s largest debtors, meaning the losers of the otcd contracts and the US govt, need to borrow MORE money to EXIST right NOW. Not less.
35. What gold price and what number of ounces can cover the growing pile of US dollars being printed in a manner to stop the growth of the dollars being printed without causing a deflationary detonation as the cover is implemented?
36. IF it’s “on to Alf [Field]’s numbers” it’s also “on to Ben Bernanke’s final tool: Money Printing.” WHAT could cause Ben to pull out his final tool, his nuclear bomb, and USE it? You need a DEMAND for dollars to print them. That demand can be the demand of the debtor or the demand of the creditor. It is the demands of the otcd debtor for dollars that are behind the logarithmic rise in the govt debt. The govt debt is really the otcd debt with some trimmings. And you know the banksters love nothing more than a great family dinner of roast public money pig with ALL the trimmings.
37. The reality is that instead of a gold cover implemented at 1600, the US dollar is at risk of REAL hyperinflation actually occurring. This goes beyond “the funds might become afraid that hyperinflation could occur, but it won’t”, which was the backbone of a gold 1600 cover. Where will it all end? With programs like “cash for clunkers” being replaced with “mass bombs for mass bodies”? Suddenly my own $6000 target for gold… is alive again.
38. Be prepared. Be prepared for any possible gold weakness as the daily and weekly chart are overbought. Be prepared for that overbot condition to continue for months while gold surges higher. Be prepared for the stock market to continue much higher as some small institutional money fears hyperinflation. Be prepared for the stk mkt to collapse on some surprise otcd meltdown. All revolves around the OTCD crises, but how it plays out can’t be predicted, but it CAN be prepared for.
39. When I mention increasing your sell increments, I’m talking about tactics like tweaking your weightings in the DIRECTION of outer core position parameters, to increase possible reward, going from buying gold $10 down and selling $30 to say buy gold every $10 down to selling every $35 or $40 higher with some of your trading sell points. Or buying every $15 down and selling every $45 higher. Tweaking in favour of reward. Do that if you are a professional who is interested paying SOME attention to the head and shoulders pattern. If you are a player, this is your time to shine, as either a bull player or a bear player. ONE of you is going to make a pile of money and the other is going to take some major damage. Only Dr. Time knows who will win.
40. ...........
Oct 6 2009
1. George Soros yesterday called the US banking system, “Basically Bankrupt”. He said, “The United States has a long way to go.”
2. The good news is the public has built a special George Soros language translation machine. Their machine translates “basically bankrupt” into “Buy anything the insiders liquidate, pay any price, and do it now!”
3. “A long way to go” is translated by the public to: “The recovery will take 2 more weeks, but windows and orphans should wait 3 weeks before investing all their money in stocks. Gold is going to zero, sell it all on the next hundred dollar decline.”
4. High oil prices are now deemed great news for the stock market. $70 oil was deemed a disaster for the stock market just 2 years ago. Now we’re to believe it is “fantastic news”. All that is left for George Orwell Financial Markets now, is to mandate mark to model accounting. After your stocks drop 90%, your statement will show a 100% gain. Of course, there will be the minor detail that you can’t take out that money, and the banks will use it, for loans to themselves.
5. “And today, marked to model, the Dow soared 50%, and home prices were marked up 40%. Nobody has any food, suicides are pouring in by the hour, but those small problems aside, the recovery continues to beat expectations!” –Bloomberg News, 2012.
6. A bull market takes no bear prisoners. The banksters are long gold. Not short. I’ve been saying this for years and few have listened. They use the comex to book profit against their physical gold and to take your gold. It is some of you in the gold community who are naked short gold, not the banksters. This is madness. There’s nothing wrong with shorting gold, as long as it is against a much larger long position. I sell 2-5% of my gold into $50 to $100 of gold price strength. Not 5000% of my gold, like many in the gold community have done, hoping to “get in cheaper” later. The gold head and shoulders pattern has already broken out upside on the monthly chart. You’ve been told. “As always the Goldman’s of the world will end up the biggest winners long gold. You can bet on that.” – Jim Sinclair, Oct 5, 2009.
7. Dr. Jim Willie has showed “respect” for the massive head and shoulders continuation pattern on gold. So have a few other writers, with the emphasis on “Few”. It will be the Few that make large money on this move in gold.
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9. Don’t try to outsmart the banksters. You will fail. There’s a reason why they are trillionaires, while most GCMs (gold community members) will barely break even on their gold stock portfolios even if gold hits $1200 on this move! I’m being swamped with two polar opposite types of emails. ........
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12. I want to give you a clear picture as to why the volatility in the gold market is about to grow incredibly. In the late 1990s, the banksters convinced the public that the stock market was “here to stay”. Most of you were conned by the banksters. Those of you that weren’t weren’t conned on the long side, probably lost money trying to short the Dow from 1995 in a series of failed price plops.
13. What is happening now is a similar situation to what the bankers did with the Dow, but with the US dollar, the world’s largest market. This is their showcase play.
14. Gold is the world’s smallest major market. The bankers, who are massively long gold, are creating a situation where the public is being indoctrinated in the view that the US dollar is finished, a very similar view to the view the banksters created with their “here to stay” stock market of the 1990s. Most importantly, that view is now being pushed, and accepted by, <font face="Trebuchet MS
Aug 6, 2009
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23. The bankers said to the govt, “Doctor the books, hand us trillions, or we shut it ALL down. You decide. We own a monster pile of gold, so if the show shuts down, we couldn’t care less, how about you Mr. Gman, I wonder what the general population will say when ALL the banks are closed tomorrow morning and ALL the money in them is GONE when we announce hundreds of trillions in losses. YOU will be target number one. Not us.”
24. The Gman knew the bankers weren’t bluffing. So he handed over the first of many blackmail payments. These payments will go on for many years. The bankers then told the Gman to get ready to start printing money so the market price of the otc derivatives starts to rise.
25. The idea that the Chinese Govt dictates anything to the bankers, including their own bankers, is: Nonsense. The bankers couldn’t care less about the $800 billion t-bond peanut held by the Chinese Govt. Nor does the US Govt, and nor does the Chinese Communist govt. Ben Bernanke could buy the entire Chinese t-bond holdings tomorrow morning and announce he’s increasing the T-Bond buy program to $5 trillion. Bonds would end the day limit UP. The US dollar would tank, gold would likely skyrocket. And the gold community would scratch their heads.
26. The bankers have a real “problem” and that is one thousand times bigger than the Chinese T-bond smokescreen/clownshow.
27. A quadrillion dollars of worthless OTC derivatives.
28. I don’t know whether President Obama is on the inside, or the outside, as far as what the bankers have planned. If he’s on the outside, then he’s really going to go after the bankers. If so, the OTC derivatives skeletons will start cascading out of the closet. Stock and commodity prices will have a nasty setback, and more money will be printed to keep the system alive. I do find it very strange that the man who is arguably the most socialist congressman in America just “happened” to get elected as President, just in time for the greatest money printing show in America’s history.
29. There is no solution to the Quadrillion dollar problem except quasi-hyperinflation. The bankers have everyone in a trap. Quasi-hyperinflation will allow the derivatives to be raised in price, so the margin calls end. But inflation causes a lower standard of living for the general population. Much lower.
30. The solution to high inflation is: Gold. Gold is the tool the bankers will use to end the inflation they create. A quasi-gold standard, which is the Gold Certificate Ratio that Jim Sinclair has detailed, is the only solution. High interest rates would likely cause a massive depression. Market valuation of OTC derivatives would cause a complete wipeout. Neither are planned by the bankers. The[y] plan to revalue gold upwards against the US dollar, print massive amounts of dollars, and then lock the dollar in price against gold.
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Sep 25 2009
10. Hyperinflation. Remember Ben Bernanke’s words, “we’re going to make a profit on all these investments”, referring to the worthless OTC derivatives he stuck to the taxpayer, handing the bankers trillions in cash and t-bonds in return.
11. Something struck me about Dr. Berananke’s tone as me made that statement. He seemed very sure. He tends to stammer when he lies, in my opinion. When he made his bizarre “profit on the totally worthless otc derivatives” statement, he seemed very sure of himself, not a liar. He may be correct.
12. Here’s why: Should the next economic downturn occur, shall we say, slightly sooner than the public thinks, should the crisis actually not be over, but only just beginning, Dr. B may be forced to start printing money, even after revaluing gold upwards. I’m talking about serious money printing. Here’s the kicker:
13. In hyperinflationary incidents, the prices of all assets rise, but many FAIL to keep up with the rise in the gold price. Real estate is on the list of FAILURES. So, what the banksters’ lead manager, Dr. Bernanke, may have planned is a reflation of the otc derivatives against the US dollar.
14. If house prices rose to their former highs, or exceeded them, Dr. Bernanke’s prediction of making a profit on the currently completely worthless otc derivatives would come TRUE.
15. The “minor problem” for Joe Public is that the profit would be just a technical profit. In terms of real dollars, that profit could actually a massive loss, trillions of real dollars.
16. Let’s say the average house price is $300,000 in a certain area. Let’s then say the OTC derivatives need a $500,000 house price to come onside. If Dr. Bernanke were able to print enough money to start a general inflation, in time the otc derivatives WOULD come on side, and the taxpayers would make a profit.
17. What Dr. Pinocchio accidentally forgets to mention is that his bosses have ZERO intention of letting the taxpayer make a REAL profit. They want what they’re legally owed for placing their money on the winning side of the trade.
18. If your house price doubled tomorrow morning, but in terms of OUNCES OF GOLD (REAL DOLLARS) to buy that house, it took 10 times more ounces, did the taxpayer win?
19. No. He LOST. Bigtime. This is the plan, I believe, the bankers have for Joe Real Estate Investor and for the holders of the other side of the trade of their otc derivatives. And it is why the fraud accounting was legalized. While the bankers would make a few trillion if the entire system blew up, since gold would rise probably to $100,000 an ounce or higher, that’s a COMMUNIST type play with limited upside.
20. Communists see the financial world as a limited size pot of money. Just as an employee only knows to cut expenses to increase their money, whereas a business owner focuses on revenues. You can only cut costs so far. Revenues, theoretically, can be increased logarithmically and to an unlimited degree.
21. Think about that point carefully, particularly if you ARE a business owner. Most gold analysts are not hardcore business owners. They see the bankers through THEIR eyes, not the eyes of a business owner. Bankers understand the unlimited growth potential that the world’s human beings are capable of producing. There is vastly more money in running a massive ongoing SKIM operation, than a wipeout “gimme it all now” game.
22. The game the bankers are playing with OTC derivatives, and the ongoing game they play with the public, is much like the ‘don’t kill the golden goose” game mainland China’s Gman played with Hong Kong. When mainland China’s govt took over Hong Kong, many panicked. They pictured a pillaging operation. That never happened. A casino is a similar analogy. If the average player loses $10 of every $100 they bet, they may return and lose more than $100 over time. If their $100 “pot” is taken from them in one shot, most will never return to play.
23. If mark to market accounting was utilized today, all banks would shut down tomorrow morning. All YOUR money would be gone. All of it. The stock market would close, because if it opened the price of the Dow would be: ZERO. Tens of trillions in losses, maybe hundreds of trillions, would be announced. Gold could skyrocket to tens of thousands of dollars an ounce in 24hrs, as all business would close. Mass starvation and war would occur immediately.
24. The bankers would have their gold, but that’s all they would have.
25. Today, the net worth of the world outside of the bankers, under mark to market accounting, is probably near zero, and more likely less than zero.
26. This is a boring point but it is key to understanding the OTC derivatives situation: Ben Bernanke is the manager for the current job the bankers want done. That job is to PRETEND to reflate the public’s assets, but the main reflation will be an inflation of the banksters’ assets. Against the public’s assets. Picture your favourite stock falling from the $50 price you paid on MARGIN to a price of $5 very quickly. You now OWE the brokerage money. You don’t have the money. The brokerage liquidates your position. When a stock is sold, money transfers from the account of the buyer to the account of the seller. Let’s say that instead of liquidating you (like the otc derivatives loser), the brokerage says, “we’ll loan you $200,000 to carry your position at 12% a year, take it or leave it, or we take your house and all your possessions.” You take the deal. Over the next 3 years, Dr. Bernanke prints more and more money. The value of the dollar buys less and less. The stock rises back in price to $50, but now $50 only buys what $5 bought before.
27. You lost money. You paid interest, your stock is back to what you paid, but it’s real worth is peanuts.
28. THAT is what the bankers have planned for YOU in the coming years, a reflation of your assets to the old price, but a DEFLATION in terms of REAL WORTH.
29. If something goes wrong with the bankers’ reflation plan, and mark to market accounting is forcibly restored, they still win, if you call holding an underground vault of gold while living in a bunker “winning”. I don’t think that is the win the bankers are seeking…. I suspect President Obama would over ride any attempts to restore such accounting. Regardless, those holding gold are the only winners in ALL scenarios. Once the great reflation is underway, mark to market accounting will likely return, in stages. As it has for eternity, gold again is proving itself as the ultimate investment.
30. Bank stocks, real estate, and perhaps soon bonds, will probably undergo unprecedented dilution and deflation in real terms, for many many years. Some on the fringe edge of the gold community believe the bankers want a massive reduction in global population. They look at starvation and war as the tools the bankers will use to accomplish that goal. Many of the bankers have stated they DO want a major global population reduction of several billion people, not simple as a goal, but as a policy. A real deflation in the net worth of the public is a far simpler tool, one that enriches the bankers without risking life and limb, since for every seller there has to be a buyer.
31. It is a tool that works with TIME. The reason for holding physical gold is primarily in case I’m either wrong or if the bankers make a mistake. If the super-reflation fails (but in theory it can’t as the amt of dollars that can be printed is UNLIMITED), economic armageddon would occur within a 24 hour period from the point of failure, that being via the exact marking to market of hundreds of trillions in otc derivatives.
32. Physical gold, food, fuel. Those would be the only items of any real value until a global barter system got put in place. I would suspect Bin Laden is looking to find a way to trigger a failure to reflate the otc derivatives. Just as a REAL gold standard should have been put in place at the BOTTOM of the gold market, mark to market accounting should have been put in place then. A SUDDEN announcement, an real and true audited marking to market of the otc derivatives NOW, would cause INSTANT destruction of the entire wealth of the non-banking world.
33. The bankers’ reflation “solution” is the boa constrictor approach. As home prices decline in real value, the public will have less children, believing that without a large home, they can’t run a family. Just as an investor grows tired of looking at a stock, they will grow tired of watching their home go down in real value. The “new savings generation” is really the generation of: “I’m a slave to a thousand cuts of asset dilution and slow motion liquidation”.
34. Did you see the news on the California muni bond issue of about $5 billion, paying about 1% interest? A STORM of PUBLIC investors lined up to get their guaranteed 1%. Do you know how totally PATHETIC that is? These same people DEMANDED 20% a year FOREVER in the stock market. Now they are grovelling on their knees for a 1% handout from the Gman.
35. The money matures next spring, and by that time their dollars will have been diluted by the Gman. It will be another booked loss for them, but they’ll once again refuse to face the mirror. I would guess at that point the bankers start instructing the public to buy gold.
36. ..........
Sep 24, 2009
1. Silver. I received many emails on silver in the past. Many of you bought into $13 and I encouraged that. I bought as well. Many of you have been running your pgens and booking profit as I have. Many built core positions.
2. In the 1970s it was a time for 80-90% silver, 10-20% gold. That was the TIME for silver. Today the ERA for GOLD. Those of you focusing just on silver’s potential REWARD and ignoring the REAL risks are making an error, possibly a fatal one. ........
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6. Hyperinflations, whether full or limited, tend to END with a CRASH. Silver is an industrial item. It tends to rise and fall WITH the stock market. By locking the US dollar to gold, it would signal the end of the hyperinflationary/money printing period, and all asset prices would TANK. ALL except GOLD. The stk mkt would look like a hand grenade went off inside a light bulb. Real estate prices would fare even worse than the stock mkt. Silver would fare no differently than the stk or commodity markets.
7. .............
8. This is the bottom line in the metals market: “Gold is MONEY. Silver is a GAME” – Jim Sinclair. The hunt brothers carried around 10,000 silver contracts in the last bull market. Jim carried about 6000. Jim sold at about $35. The hunt brothers lost everything. Jim owned the clearing house where the hunts traded. The hunts bought MORE as Jim sold. When the owner of the music hall locks the doors with you inside, do you turn UP the music, or try to break out of there? Jim asked the hunts to LEAVE, to move their account OUT. THAT should have been (along with a VERTICAL price rise and people lined up in the STREET buying) a signal to the hunts to consider selling, not buying. Why did Jim ask the hunts to leave? I’ll answer that with another question. If YOU were in Jim’s place, and you somehow KNEW the bull mkt was soon to blow up, would YOU want to be RESPONSIBLE for $2 billion in ultra leveraged silver futures on the long side? If a retail commodity or stock brokerage client gets a margin call, and can’t pay, the brokerage is liable to the clearing house for that money. If the brokerage can’t pay, the clearing house is liable to the exchange, in this case the comex, for that money. In 1980 $2 billion was like 10 billion today, or even 20 billion.
9. If you think you have the silver market all figured out, if ................... If you “fly” in this bull mkt with 70% gold and 30% silver on your metals plane, you have massive upside exposure for a silver super spike, while maintaining massive downside protection with gold, the world’s lowest risk investment.
10. You don’t need to hit the 30% marker in the next 10 seconds. The possible hyperinflationary spike hasn’t even started, let alone ended. But if you can’t mentally and emotionally sell any silver now after it just DOULBED from $8 while gold rose 50% from 680, how will you do so when a real super spike occurs?
11. I mention past leaders, both winners and losers, of bull/bear markets because NOTHING EVER CHANGES IN MARKETS. Except the size of the wins and losses, and the names of the players. Embrace the past, study it, try to get into the minds of the players to some extent. Why would the hunts buy more silver as Jim booted their account out? The answer has to be: They weren’t thinking. They were WANTING. Wanting more money.
12. Focus on what the market is OFFERING you, not what you DEMAND out of it. “I need A,B,C” is the first thing an investor says to a financial advisor. The advisor’s next question should be, “how much drawdown can you handle?”
13. For those of you who are traders, there is very good money to be made simply watching the gold to silver ratio. ...........
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15. Now, at this point I can already “see” some of you metals gamblers making your way to the gambling deck on the metals ship, thinking, “well, I can see the logic here, so maybe what I should be doing .................
16. What if there is only a small reaction in the gold price now, and then the head and shoulders activates, the Dow soars (the MACD on the MONTHLY Dow chart is giving a massive BUY signal right now), the USD tanks instead of rallying, gold leaps up, and silver goes into gap-up mode?
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June 5, 2009
2. All Gmen are the same. They exist to rape and pillage their citizens. They are more of a machine than a man. They can’t be reasoned with and their souls are ruined. The bankers have spent hundreds of years exploiting the Gman’s character, moving assets from one location to another, creating booms in one, then bust. Enriching themselves while impoverishing entire nations and creating wars. The Gman is the primary tool the bankers use to accomplish their victories. Their game to move American (and Euro) assets to China was hatched 50 years ago. The first actions began 40 years ago. As the game reaches its Zenith, the public has come to the table, like the good little price chasers they are.
3. The markets are a bank congame. And you are the bank MARK. The US dollar isn’t going to zero. It is nearing the end of a massive bear market, not starting it. When the last bull market in gold ended as Jim Sinclair’s own employees worked thru the night selling his 2 million ounce gold position, those employees did not sell their own gold. Some went to the POORHOUSE as gold crashed.
4. “When this gold bull market ends, 97% of you won’t believe me when I say it’s over.” – Jim Sinclair. World’s Largest Gold Trader.
5. How will the gold bull market end? And more importantly, what actions will you be taking when it does? Answer: Most likely, the gold bull market will end will a new gold standard, a watered down version of a real gold standard. I don’t know what actions you will be taking when the bull ends, but I know what actions I’ll be taking. And it won’t be the actions that Jim’s employees took. In the last gold bull mkt I sold at the top while most gold writers said rates would soar and the dollar would collapse.
6. The solution to the current otc derivatives crisis, the economic crisis, the debt crisis, the solution is: Gold.
7. Some of you have written me asking if Ben Bernanke thinks gold is a currency. Of course he doe. He knows it is the only real currency. Is he a jerk and a liar? I think so. An idiot? Not at all. He’s a genius. His actions are carefully planned, and he understands gold far better than most of us. He, togther with the Treasury will use gold to end the crisis, taking his orders from the bankers that created the crisis to enrich themselves. Creating the crisis enriched the major bank families. Ending it will make them richer still.
8. The revaluation of gold against the US dollar will be accomplished by the re-introduction of gold as a CONTROL on the paper money supply of US dollars. It will likely be a control event, not a price event, not a conversion event.
9. Right now, every time the US govt prints money, there is no control on how much money can be printed. Put your car in park. Start the engine and floor it. With no governor on the engine it will blow up. The bankers removed the governor from the US dollar engine in 1970. The governor [(rpm limiter)] is gold.
10. The revaluation of gold against the dollar will be the re-instatement of Governor Gold. The mechanics of this control mechanism will be twofold: First the US Treasury and global central banks will create a buy program for gold. If [thereafter] the supply of US dollars is to be increased annually over a certain floor percentage, say 5%, enough gold must be bought by [the gov't?] so the ratio of dollars outstanding to gold [troy ounces held] increases by only 5%. [gold priced how?] [Such a buy program would tend to cap the price of gold. It would enhance the effectiveness of all the current price-capping activities.]
11. What this means in plain English is that Helicopter Ben could increase the money supply by 10,000% if he wanted to, provided that he then bought enough gold to maintain the ratio of dollars to gold showing just a 5% increase. Bottom Line: Helicopter Ben gets his rotors clipped.
12. The bad news is this should have been done at gold $250. Or gold $400. Or gold $500. Why wasn’t it done then? Because the bankers wouldn’t have made trillions, that’s why. The crisis, and the solution, is about them. Not you. Accept it. I have.
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15. I’m focused on the winning side of the trade. The bankers holding the bull side of aprox $400 billion in otc gold derivatives. The bankers are net short about $20 billion on the comex.
16. Hello? Anyone listening? Look at who really owns Barrick. The barrick shareholders have paid the bankers billions in “dividends” from the gold hedge derivatives while the price sat there. Of course, you may have noticed that the rest of the gold community shareholders didn’t participate in the free money party. The bankers are like a giant leech. Sucking the bulk of Barrick’s gold production for themselves while holding a fool’s gold carrot on a string in front of the lemming gold community. Now have you got a tiny inking of how smart the bankers are? Hope so. Throw your “the bankers are going to burn because they are idiots” theories in the garbage. Before they cost you any more real money. I HATE losing money. Which is why I study the actions of the bankers so intently. They are the greatest money makers in the world. And right now they are raking it in like there’s no tomorrow with a nuclear-powered gold vacuum cleaner. Question: Do you want to be the vacuum cleaner operator, or the gold bug sucked inside it?
17. A massive gold stock repo is coming as the gold price soars. Just as the bankers collected trillions in winnings from the taxpayers on their real estate, stk mkt, and bond mkt otc derivatives, the bankers will collect the winnings from the hedged gold companies via a stock repo: “Hey Mr. Mining Company, you’ve got a 10 billion dollar margin call on your bustout gold hedges you wrote with me. You’ve got 24 hrs to hand over the dough or I repo your stock, got it?” - Mr. Banker, 2010-2011.
18. “I don’t have any dough. I’m broke. Here’s 51% of my stock” – Joe Mining Company CEO.
19. My estimate is that within two years the bankers will control virtually the entire gold production of the world. Just as they have in the past.
20. If there is no Gold Governor installed, the gold market could spiral to the hyperinflationary targets envisioned by the gold community’s superbulls. And then crash even faster than it rose, as a full communist govt is installed in the USA. The size of the OTC derivatives fireball is so big that there is no other outcome. It’s not a solution. It’s an outcome.
21. I personally believe that Governor Gold will be “elected” before any actual hyperinflation occurs, before any communist govt is installed. The main reason I believe that is the bankers simply can’t physically collect their winnings without Governor Gold in place. They have every intention of collecting every cent they win. If you look at their actions in the gold market alone over the past view years, you know they leave nothing on the table for the little people. They vacuum it all. Even the gold dust.
22. ............ If you are afraid, then you are betting too big, end of story. My exclusive Pyramid Generator, the Pgen, has helped thousands of investors turn decades of failed tactics into a winning approach. More importantly even than the profits (ok not really), is the feeling of control that is achieved. I get truckloads of letters from subscribers every week. I’m not a tipster. I teach you to sculpt your buys and sells. Like a real sculptor, sculpting yourself into a mini banker.
23. The bets on gold placed by the bankers involve hundreds of billions in paper gold bull bets. When they collect, they will collect in: Dollars. US dollars. American Greenback.
24. Governor Gold will turn the American greenback into a company emerging from Chapter 11. The taxpayers will be left holding the dollar bag. The dollar, with Governor Gold firmly in control, with start a massive ultra long term bull market, and if I’m reading the bankers correctly, the US T-bond will be the flagship vehicle the bankers use to cash out of their paper bull gold bets and into the new gold-backed dollar. When the dollar bottoms, well, I want you to start preparing now. Meantime, don’t blow out your gold stocks on weakness. Yes, the bankers are going to take the bulk of the world’s gold production for themselves via the gold bull otc derivatives vacuum cleaners. But there will be PLENTY of upside action for YOU. And, think about this, if the bankers hadn’t created the crisis, hadn’t sold the otc gold derivative hedges to the mining ceo coconut heads, YOU wouldn’t be about to make a fortune in gold stocks. Thank the bankers, not the gold community leaders, for your profits. Ok, maybe thanking bankers is going a bit too far. While yes they destroyed the world’s economy, they also built it first. They will build it again, bigger and better. And destroy it again, bigger and badder. Keep your friends close, and your enemies closer. Your friend is your enemy and your enemy is your friend. Look at the leaders of the gold community bashing the bankers as idiots. In terms of making YOU money, are the leaders of the gold community your friends? Or are the bankers your friends? Hmmm.
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Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am.
[Stewart Thomson, is a fan of Jim Sinclair. He also seems to like pyramid investing. Not as in pyramid scam, but as in price averaging, portfolio risk management, or something.]
[See Sinclair’s Best, pages 64-74 (roughly) for Sinclair’s discussions of this reintroduction of gold as backing for the USD. Expository writing is not Sinclair's forte: I remind myself that he is balancing 2 contradictory goals (educating people and keeping his strategies secret).]