just a dang disaster everywhere you look," Redmon
said. "I haven't even seen a corn crop this year, unless it's being
irrigated. Those guys just got hammered." Bloomberg News, July 25,
2. While leveraged hedge fund
managers read the USDA reports of "record corn plantings", then
leverage the dollar against food in a crazed food shorting frenzy, farmers in
the real world are watching their crops burn. This situation may be
just the beginning of a food price parabola.
3. The situation is grim, and food
prices are probably set to become one more driver pushing the gold price
thermometer steadily higher, not just for price, but for time. The list
of gold time and price drivers is growing, and intensifying.
4. Against this horrific background
of possible (probable?) looming food shortages, President Obama addressed the
American nation last night. He predicted dire consequences for financial markets,
unless taxes are raised on "the millionaires and billionaires".
5. I doubt that a 100%
taxation rate on all US individuals and corporations could even
eliminate the deficit now, let alone solve the OTC derivatives and unfunded
liabilities debt bombs. The situation has redlined, and the gold
thermometer of the world's financial health indicates a five alarm fire is
6. Click here now to view your five "gimme it now!" key buy points for
gold. These HSR (horizontal support/resistance) lines are drawn across highs
in the uptrend. You should understand that a support line is best drawn
across a previous high, not a low.
7. Use common sense when applying
capital into the market. Bigger support sits at $1578, and since price just
tagged $1624, a fall into $1578, if it happens, is about a $46 price sale, so
I think you need to buy something there.
8. Your five key buy points in the
short term are $1610, $1595, $1578, $1558, and $1535. The question is, are you prepared to take buy action, if they happen?
Remember that a little price sale should be met with very little buying.
$1610 is a very small price sale, from the $1624 highs.
9. Live in the present, not the past.
In the 1930's, gold was re-valued about 70% higher against the dollar,
purportedly to save the system from imploding. $1600 gold is very high,
against the background of a nation working diligently to reduce debt and
spending. Is that what is happening now? No, the opposite situation is
happening, and the steadily rising price of gold reflects current reality.
10. Look at the expression on
President Obama's face in his address to the nation. The situation is clearly
grim, and he's prepared to take powerful action. I told you about the
possibility of a certain man wearing a gold mask a long time ago. Do you
remember his name?
11. Don't think that your President
hasn't considered closing all markets and banks, banning the public from
buying gold bullion, and then revaluing gold dramatically higher. If
that occurred, when he re-opened the markets, what would you feel
like, what would be your financial gain or loss? Would you be in golden
party mode? I hope so.
12. I told you that QE was a water
gun against a forest fire and destined for the backburner, and that's what
has occurred. Gold revaluation, not grandstanding tax increases or QE squirt
guns, is the kind of drastic action needed to make the epic debt manageable.
13. The way a modern revaluation
would likely work is that gold dealers could be limited in what gold, if any,
could be sold to the public, and the most powerful central banks would
announce they are prepared to buy any amount of gold from anyone at a certain
minimum "floor price".
14. Let me ask all those who are
telling you that your gold stocks are finished a little question. If
institutional money managers were faced with a modern gold revaluation
situation, where bullion buying was limited or even eliminated, do you think
those managers might possibly consider buying gold stock?
15. Earth to gold stock bears on
Mars, knock knock, is anyone with an IQ over 10
home? Sadly, nobody is home, and many are actually naked short gold
stocks. The scheme is to short the stocks and buy bullion in a ratio trade.
Pure genius! Just remember that there is a very fine line between
genius and insanity. When GDX blows the doors off the US
dollar toilet paper roll, at just over $64, and does it with or without gold
revaluation, you could see gold stocks start a rocket ride towards GDX
$75-80, then on to $100. The bears could be exterminated, and I
think it happens.
16. Click this GDX chart now to view your key GDX buy points
at $58.50, $57, $55.50, $54, $52.50. Are you prepared to take buy action at
those points, and below, if it happens?
17. Many investors and analysts who
totally failed to predict the 2008 crisis, and liquidated into the lows, are
now telling you to be ready for "Lehman 2". Only an idiot is not
removing some cash today from the financial system, given the grim
statements made last night by the President of the United States. While put
options are the best insurance you can buy for your gold holdings, you should
also understand that the situation is so dire that a default could also cause
gold to spiral higher, or be re-valued higher by central banks.
18. Can you even imagine the horrors
of blowing out your gold on a debt default-fuelled hit to say, $1200 gold,
only to watch the President of the United States close the banks and markets,
address the nation, and announce gold has been re-valued overnight to numbers
that now seem inconceivable and impossible?
19. You'd be wiped off the
financial map by the man in the golden mask, and the only question is, are
20. The bottom line is that those who
were blown away into the Dow lows of 6500, while I bought and told you to
buy, may not necessarily be your best "beacons in the storm" during
this new phase of the accelerating crisis. Predicting your way through the
crisis has not worked up to this point, and it's likely about to get a whole
lot harder to do so.
21. It's very important to keep a
distance from those telling you "what you want to hear". It
feels comforting to "know" another 2008 is coming, and so if you
just sell in size now, you can always get back in later. That's a very soothing
thought, but is it valid? Think of the breadlines of the 1930s. This
crisis is far bigger, and the US dollar is now held up by liquidity flows and
promises, not 20,000 tons of gold. You can't know what is coming, but you can
respond to what does happen.
22. I see a need to raise cash levels
outside of the financial system more than within it. Obviously if you
bought GDX, individual gold stocks, and gold/silver bullion into the weakness
of GDX $51 and gold $1478, you are taking bits off the table into this
monster rally, and that is raising your cash levels. You can't
seriously believe the financial system can take another Lehman-style hit and
remain open, can you? So, what do you think you should do with that cash,
leave it all in the system, or take some out?
23. I'd like you to look at the
horrific financial positioning of Elmer Fudd Public
Investor. He waddles in and buys bonds after a 30 year bull market.
That crap pays him negative real interest rates. He's soaked in debt and
lives far beyond his means. Fudd believes the Gman and Ben "Dr. Pinocchio" Bernanke are his saviours. The bottom line is that Fudd
is all boxed in with nowhere to go, except straight down to the breadline.
24. I told you that you would soon
feel "fear beyond fear" as the dollar and the bond begin to
implode. We are on the cusp of that situation now. You need more cash
(outside the system) and more gold, as the crisis accelerates. Click
this swiss franc takes a bat to
the dollar chart link now, to ask yourself what kind of cash within the
system you really need. See you out there, on the price grids. Thanks!
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