The Gold Bubble and the Gold Bugs
BUT THE REALITY IS GIVEN BETTER BY THE AUTHOR OF THE FOLLOWING ARTICLES.THE OLD SYSTEM IS USING COMPLEXED EXCUSES,FOR COVERING ITS INABILITY TO OPERATING.
THE LATEST ARE THE GOSSIPS AND IDEAS ABOUT THE FANTASTIC ECONOMIC DEPT PROBLEMS FOR GREECE AND DUBAI,WHEN THE WHOLE SYSTEM (ALL COUNTRIES,PEOPLE,ENTERPRISES ETC) IS DEBITED TO THE SAME CREDITORS,WITH PAPER MONEY.
A)If This is Recovery, Where Are the Taxes?- Total Intervention Thursday By the US and ?????
Today is a fantastic buying opportunity for those who thought that they missed the Gold and Silver Boat. Today's action is the Cartel along with some other entites that really are hoping for a strong dollar, believing that they can make big changes through intervention. Guess what, the cat is out of the bag and this type of intervention is going to backfire because a new breed of longs have abandoned their black boxes, margin and the trading mentality and started following fundementals. Last Friday the MOPE (managment of perceptual economics) tactic used to bomb gold and prop up the dollar was the ridiculous non farm pay rolls employment number. Today its that the problem with debt and possible sovereign debt failure in Greece and the Fed's outlook that the US economy is recovering.
First of all the Fed's outlook on the economy:
November tax receipts just don't support that theisis in my opinion:
November tax data:
Income Taxes Withheld -10.98% y/y
Individual Tax Receipts -20.36% y/y
Definitely no signs of improvement.
As for the action in the dollar and gold today, I'll on an excerpt from yesterday's Midas Letters:
"…UNLESS YOU KNOW ABOUT THE PRICE SUPPRESSION SCHEME AND HOW MUCH CENTRAL BANK GOLD THE GOLD CARTEL WENT THOUGH IN ORDER TO MANIPULATE THE PRICE, YOU WILL ALWAYS BE CLUELESS ABOUT WHAT GOLD IS DOING AND WHY. UNLESS YOU KNOW ABOUT WHAT CAUSED THE MASSIVE SHORT POSITIONS IN GOLD, THEN YOU CANNOT EVER GET IT RIGHT AS TO WHAT THE GOLD PRICE WILL DO IN THE MONTHS AND YEARS AHEAD!!!"
Finally, I believe the Chinese really want into gold at a better price and for that reason, the US and China's short term goals are alligned. However, I think if the Chinese actually understool the GATA story, they would know that Gold would be a great deal even at $2,500 an ounce and that its probably going well above $5,000 and to be tinkering with the market at these levels along with anti-gold pirates is not a good long term strategy. You can pump the dollar up for a few weeks, even a few months, but what is happening in Greece is a microcosm of a much bigger currency avalanche building in the US dollar.
Rick Ackerman made a great post on the subject of the last paragraph recently:
Are U.S. and China Together on Gold?
"…With Time magazine’s momentous selection of Ben Bernanke as Person of the Year, there were reports of people dancing in the streets in, um, Oslo. Leave it to Time to figure out a way to make Henry Luce roll in his grave while the magazine tries to outdo rival Newsweek in the race to claim publishing’s trophy for irrelevance. While the understandably isolated delirium over Bernanke’s selection subsides, we thought we’d update the prospectus on gold with a contribution from a Rick’s Picks subscriber who has requested anonymity. His thoughts run counter to the popular notion that investors can count on steady buying from China to lend buoyancy to bullion quotes. As the writer makes clear, China may have a mind of its own, and it will not always be perfectly aligned with the thinking of gold bulls. Here we go:
While many precious metals bulls have been insisting for months that China is gold and silver’s greatest ally, we saw first-hand last week exactly how capable the Chinese are of pulling a rabbit out of a hat when need be. Much of the finger wagging for the recent decline in the price of gold – as usual – has been directed towards those dastardly Americans. This time
around, the gold bull’s disdain had to do with the recent US jobs report on December 4. Yes, the numbers – which are unquestionably fabricated – had an impact on the precious metal markets; nevertheless, those gold bulls who insist upon using the adage of “see no evil, hear no evil, speak no evil,” where China is concerned are fooling themselves and living in a sugar-coated dream world.
A full two days ahead of the jobs report, Chinese officials called gold’s recent surge a “speculative frenzy.” Yet, it is the jobs data that bears the brunt of the blame for gold’s pullback. China had nothing whatsoever to do with this? Since when did they become our friend? Furthermore, how do we know the U.S. and China didn’t act in unison here? A little of the “I’ll-scratch-your back, you-scratch-mine,” thing between old friends.
Damned Lies, and Statistics
Phony jobs report or not, who in their right mind believes statistics coming out of the U.S. to begin with? Perhaps those who frequent tractor pulls and WWE wrestling events are so naive. Maybe even Middle America. But then, they’re not typically the ones buying gold, are they?
Big government is big government, and while China and the U.S. clearly have their differences, they also have a responsibility to co-exist and cooperate wherever possible, even though what we read in the papers and see on television often appears to dispute that. Why would anyone think China is any less qualified than the U.S. for pulling off a performance in price suppression where gold is concerned? Now that is naïveté."
Big intervention days are great days to buy physical gold. My rule is never use margin and only buy on big pull backs. Both conditions are active today.
B)"Fitch warns that Britain and France risk losing their AAA rating" – The Debt Virus is Accelerating
When we had gold as a regulator of debt, and the existance of derivatives nominally valued by the Bank of International Settlements at around $1 Quadrillion, and unknown total of fiduciary media floating in cyberspace was science fiction or more likely a nightmare, money had meaning and the only thing that could bring on such debt imbalances was the planned wars which profited only a very few of the smartest financiers who under wrote the wars and thereby became more powerful than governments. Problem is now that so much money has been loaned and the advent of the computer has made is temporarily possible to substitute a massively complex illusion in place of real money. Such illusions, even when performing trillions of computations per second can not withstand the winds of economic and financial reality, which ultimately require money to be an actual store of value and to be un-encumbered of any function that to hold value.
In the meantime, even the agencies which were central to rating so many of the "toxic assets" as AAA via the securitization and derivatives process are now admitting that soverign debt is going to be more of a risk. I believe they greatly under state it as they greatly over stated the value of much of what we now call "toxic assets."
Those who believe that the US is less of a risk need to see both the trees and the forrest. Perhaps the forrest only looks pretty bad, but when you look at State Budgets, Debt and go deeper to municipalities and cities, to see the trees, you can see that the forrest is in deeper trouble.
While the entire question of where did these entities once called "banks" get the money to pay back TARP without dropping their stock values far more than they dropped during the dillution has not been addressed, much less answered by the mainstream financial or general investigative journalism core because the new standard in journalism is "don't rock the boat," the question of why the US political system can not use the money it does borrow to actually make the US a much smarter economy stands. We should be pressing not for bigger farms with more genetically modified fruits, veggies and meats in our stores, but towards smaller family farms and means by which we can cut down on the over concentration of wealth, which saps would be consumers from the ability to purchase more local products to stimulate actual wealth and spending and efficiency. We should not be encouraging one company to try to buy up and dominate the and own patents on every food seed in the world via genetic modification but anti-trust and pro-competition measures.
The lessons of the Great Depression that we did learn and in some measure apply such as the Glass Stegal act and the anti-trust laws and the idea that if you take care of the middle class, the middle class takes care of corporate America, and the idea that competition and more evenly distributed wealth is far more efficient, stable and sustainable than ever increasing concentrations of wealth, corporate and banking power and decreasing competition and monopolization as we now see in agriculture, banking, oil, airlines, insurance, and stock brokering.
The new financial reform bill studiously exempts most of the big players and is filled with so much obfuscating complexity that it creates a snow blizzard of language while allowing the same thieves to steal off in the night and allowing them the power to obliterate our economy in my opinion. You can read about that here at MSN market talk in a post I helped a message board friend get started:
The Root of the Financial Tsunami and A Solution: Banks Unleashed, OTC Derivatives, Phantom Money and Deregulation. – The thinking of Old and gray on the Financial Crisis.
n the meantime here is the link and an excerpt from the Telegraph in the UK entitled:
Fitch warns that Britain and France risk losing their AAA rating
"…Fitch Ratings has given its bluntest warning to date that Britain and France risk losing their AAA status unless they map out a clear path to budget discipline over the next year…"
SOURCE http://www.duffminster.com/
Labels: ECONOMY
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posted by The visioner @ 7:41 PM
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