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As you can probably tell by now, I am a HUGE Star Wars
fan, of all six movies, the Clone Wars animated series, and essentially anything
related to George Lucas. Aside from the visionary movie making, which to this
day remains well ahead of its time, I identify most with the battle between
good and evil, particularly because the GOOD winds up winning. Star Wars is a
great parable of life in general, as EVIL is ALWAYS more widespread and
powerful than GOOD, and often requires a superhuman effort from the diehard
rebels to win the day (WHICH WE ARE, AND WILL!).
Moreover, you’ve probably noticed from my
writings that I go to the gym most every morning at 5 am, which provides the
FUEL for powering me through my busy days. That workout is SACRED to me, so
it takes A LOT to get me to miss it, and even more to leave it early once
I’ve started. But I’ve done so today, and with good reason as I
wanted to comment on the new “Death Star Weapon” the Gold Cartel
has trotted out in its last, most desperate days.
Before I do so, I want to recap what has
“happened” in the past few DAYSs:
Collapsing stock markets, led by Major banks across the
entire Western world
- Rising credit default swap spreads, in many cases
to record highs, for the aforementioned banks and essentially all
Western sovereigns
- Shockingly horrible economic data in both the U.S.
and Europe, including the catastrophic U.S. jobs report on Friday
- The U.S. government AGAIN breaching its debt
ceiling, to NO FANFARE AT ALL!
- Obama preparing a speech where he will propose
additional, MASSIVE SPENDING with printed dollars on non-productive
infrastructure jobs (word is it will be $300 billion)
- The lordly Swiss National Bank PEGGING ITS
SUPER-STRONG CURRENCY to the COLLAPSING EURO, eliminating one of
gold’s ONLY “competitors” as a safe haven
- Wikileaks disclosures that the Chinese
are well aware of the U.S./European policy of surreptiously
(and illegally) suppressing gold prices, and that the U.S. government
KNOWS the Chinese know this!
- The commencement of September, with just two weeks
until the Fed meeting where a QE3 announcement is nearly certain, and
three weeks until Europe likely approves creation of the ESFS, a
€4 trillion fund printed out of thin air to bail out PIIGS
- News that China is now planning to end its policy
of monetary tightening, and go back to EASING again (http://www.bloomberg.com/news/2011-09-07/chin...s-correct-.html)!
Yes folks, this list, which is
far from complete, lists just what has happened since FRIDAY! On its own, EACH
item on this list would yield a SOARING gold price if the market were
freely-traded, and combined this is an even more potent brew with the
potential to COLLAPSE THE ENTIRE FINANCIAL SYSTEM ITSELF, let alone the gold
Cartel. So if anyone is “worried” about today’s MOB HIT ON
GOLD AND SILVER, put yourself at ease and use yet another
government-engineered “flash crash” to LOAD UP on Precious
Metals, as much as you possibly can!
The Cartel are MASTERS at what
Jim Sinclair calls MOPE, or Management of Perspective Economics. It is all
about PUBLIC PERCEPTION, which is particularly easy because the public, on
average are either stupid, blissfully ignorant, or
willfully ignorant. The media is even dumber, and in most cases (look at how
deeply Rupert Murdoch has delved into “the system”) conniving to
separate you from your money and votes (note the Ron Paul media blackout, for
example).
The Cartel knows that the past decade’s
propaganda regarding gold’s role in the monetary system (a
“barbarous relic that can’t buy groceries”), Wall
Street’s conspiratorial HATRED of Precious Metals (they compete with
the PAPER assets they are selling), and the NON-STOP WATERFALL ATTACKS have
obliterated the public’s ability to even ask intelligent QUESTIONS about
gold and silver, much less invest in them (but don’t worry, they
eventually WILL).
Regarding the latter, the same ATTACK patterns exist
today as a decade ago, particularly the enigmatic, counterintuitive PLUMMETS,
gold’s innate ability to COLLAPSE within days, if not hours, EACH AND
EVERY TIME it makes a new high, and of course the constant battering of the
mining shares, which even when they, too, are making new highs appear to
always be plummeting. Take it from me, the 24/7 nature of these coordinated
attacks takes a significant psychological toll, and represents a MAJOR reason
why the sector has so much trouble building momentum.
Despite all this torture, the fact remains that
Precious Metals continue to outperform ALL ASSET CLASSES ON EARTH, year after
year and year, and will do so AGAIN in 2011 and AGAIN in 2012 and 2013. Take
a look at the eleven year charts for gold, silver, and the HUI, if you
don’t believe me, below.
A great way of summarizing the counterintuitive action
of the markets is the following – the DOW is NEARLY ALWAYS GREEN, but
NEVER GOES UP, while PRECIOUS METALS are NEARLY ALWAYS RED, but NEVER GO
DOWN! Yes, the Riddler would be proud, but no
statement could be more true: the PRIMARY TREND of the DOW has been DOWN for
the past decade, but the government is there trying to prop it up,
unsuccessfully, EVERY DAY, while the PRIMARY TREND of PRECIOUS METALS has
been UP for the past decade, despite the government attacking it 24/7.
In my view, the fundamentals for gold and silver are
DRAMATICALLY stronger now than even a year or two ago, much less a decade, so
we are still in the second or third inning of an extra
inning game. Heck, we’re in a cricket match that lasts days on
end, with the ultimate result being gold and silver REINSTATED AS OFFICIAL
CURRENCIES, NEVER to come down to the current levels (or anywhere close)
again.
Hopefully that assuages DOUBTS that YET AGAIN the Cartel
has implanted in your brains, enough so to forget that just 24 HOURS ago gold
hit a NEW ALL-TIME HIGH of $1,920/ounce, or that just three weeks ago gold
hit a then ALL-TIME HIGH of $1,913/ounce, was smashed to $1,702/oz. in a
matter of FOUR DAYS, yet rebounded to the aforementioned $1,920/ounce in just
FIVE DAYS, BEFORE most of the items on that horrific list atop this RANT even
occurred!
As for the topic of this RANT, I wanted to address what
appears to be a new, desperate gold Cartel tactic, one even I hadn’t
seen yet.
Changing their M.O. has been part of the Cartel
playbook for years, utilizing a tactic as long as it works before moving to
something new, just as the BORG, to use some Star Trek lingo, constantly
“adapts” to dangers such as phaser frequencies.
We have seen literally dozens of Cartel “adaptations” over the
past decade, with each new version more intense. The times of day when
attacks are most likely have certainly changed, such as the addition of the
12:00 pm EST “cap of last resort” over the past year or two,
although some times (such as the 3 AM EST attack, as we saw yesterday) seem
to never change. Another past tactic, for example, was relying on rumors
about bin Laden being captured or the IMF ready to sell gold, which worked
like a charm in 2004-2009, but lost its impact late in the game, and
obviously are no longer usable.
And of course we saw a MAJOR tactical change on
November 9, 2010, or “D-DAY” as I have referred to it in numerous
RANTS. That was the day silver first approached $30, with Precious Metal
mining stocks (particularly SILVER equities) ROCKETING higher on MASSIVE
VOLUME, threatening to commence the long-awaited mining mania which could
have taken the Cartel down within weeks. That was when HFT programs were
applied to the large-cap mining stocks to slow them down, while
simultaneously the Cartel realized that 2011 would be unlike any PM battle to
date. Subsequently, additional desperation tactics were added to the mix,
most notably the CONCERTED, HOLIDAY WEEKEND PLOTTED, VIOLENT ATTACKS such as
we saw following the Good Friday weekend (SUNDAY NIGHT PAPER SILVER MASSACRE)
and what we are witnessing today (actually yesterday AND today), OPERARTION
POST-LABOR DAY, START-THE-FALL POSITIVELY WITH A VIOLENT PM ATTACK.
In fact, if you look at the chart of the past two days,
you’ll see NOT ONE, NOT TWO, but THREE separate, MIND-NUMBING attacks!
The first commenced at, you guessed it 3 AM EST Tuesday night despite global
stock markets crashing with good reason, where gold’s meteoric rise to
$1,920/oz. was capped until it stabilized an hour later, when the Cartel
PULLED ALL BIDS and took gold down $35 in roughly THREE MINUTES. Actually,
this takedown occurred just MINUTES before the Swiss revaluation
announcement, a MASSIVELY GOLD-BULLISH EVENT which likely would have taken it
to $2,000+ within a matter of hours (which is PRECISELY why it was timed
then). When that action FAILED, with gold rising back to $1,907 just SEVEN
HOURS LATER, they went into action AGAIN, this time just before our favorite
time, 12:00 PM EST, when they took gold down, again for ABSOLUTELY NO REASON,
by another $40 in the space of 20 minutes. Readers, I have watched this SAME
TACTIC over and over for YEARS, in which gold ALL-TIME HIGHS are STOPPED COLD
at 3 AM EST, and viciously fought until finally the longs “break”
in COMEX hours to PROTECT THEMSELVES from further losses.
Why these morons continue to trade on the COMEX is
beyond me, and frankly I hope they are all wiped out so gold and silver OPEN
INTEREST, per my RANT this weekend, continues to PLUMMET and eventually make
the COMEX obsolete. In fact, that very topic was addressed in a brilliant
article last night by Ted Butler, titled “The Death of Liquidity”
target="_blank"(http://news.silverseek.com/SilverSeek/1315318111.php).
But NO WORRIES GOLD WARRIORS, the COMEX WILL lose its POWER over the MARKETS, and a lot sooner than most people think!
To finish the topic of the this latest “attack
formation”, keep in mind that despite the TWO MASSIVE ATTACKS
yesterday, GLD still closed down a measly $3 yesterday from its Friday
afternoon close, hovering around $1,880 and WAY TOO CLOSE to the $1,920 high
for the Cartel’s comfort. So here’s what they did:
They KNEW the media was talking warily about this
morning’s German vote regarding the legality of Eurozone bailouts,
painting a picture of potential catastrophe and tying the past two
days’ stock market declines to the “expectation” that they
would vote NO. Pure gibberish, particularly as amazingly the DOW wasn’t
even down 1% while the rest of the world crashed 6%, and had yet another
mysterious “Hail Mary” rally at the close (yes,
“they” knew what was coming).
In last night’s RANT, I noted there was nearly no
chance they would vote NO given that government’s NEVER destroy themselves in such a manner. Assuming a branch of
the German government would unilaterally bring down the financial system (let
alone the judicial branch, which likely was “urged” by TPTB to vote
YES), would be like assuming the CFTC, a government-run entity, will bring
down the gold and silver shorts on the COMEX. ROFLMAO!
However, if you can create a perception (aided by the
puppet media, of course) that the “German vote” was a major
worry, and then SMASH gold just as the “relieving” news comes
out, you can 9 times out of 10 perpetuate the hindsight analysis that gold
was rising assuming a NO, and thus needed to COLLAPSE upon a YES. And smash
they did, taking gold down this time by an astounding $45 in what looks to be
approximately FIVE MINUTES in the middle of the night, and still further at
EXACTLY 8:20 AM EST and 10:00 AM EST!
Here’s an excellent description, from ZeroHedge, of what triggered the gold carnage last night,
motivated by commencement of the “currency wars”, as symbolized
by last weeks’ maniacal BOJ intervention to weaken the yen and
yesterday’s incredible Bank of Switzerland announcement.
Speculation was that the falls were technical in nature
after stop losses were triggered. However, Asian traders spoke of some 4,000
lots of gold being ‘dumped’ on the COMEX and of a “large
sell order”. This would suggest that the sellers may not have been
profit motivated and official selling may have been involved. After the Swiss
franc intervention and currency debasement yesterday, market participants are
wary of further official government and central bank intervention. With
further gains for the Swiss franc artificially capped (at least in the short
term), it would be naïve to exclude the possibility of intervention in
the gold market and a continuing strategic capping of the price. “The
start of full-on currency wars has started in earnest,” said Maurice Pomery, chief executive at Strategic Alpha, quoted in the
front page of the Financial Times today. “After currency wars come trade wars and as we see the exporting world
pressured as the developed world contracts, tensions will rise.”
And remember, the German court ruling was that it is ACCEPTABLE
for the Eurozone to PRINT UNLIMITED AMOUNTS OF EUROS to bail out the PIIGS,
whom everyone knows will collapse ANYWAY! Which, by the way, is EXACTLY what
OBAMA will endorse in tomorrow night’s speech (likely to be supported
by Republicans, by the way) when he calls for YET ANOTHER $300 BILLION
“jobs stimulus” plan!
And one final comment on my favorite topic of all, that
of backstabbing among the “good guys,” which NEVER seems to end.
Doug Casey is obviously one of the smartest guys in the game, but seems to
have a fetish about disparaging gold manipulation, despite REAMS of evidence
to the contrary (such as YESTERDAY’s Wikileaks
disclosures). Here’s the quote from this JACKASS yesterday (no offense
to my friend Jim Willie!):
“It’s like these ridiculous notions that
circulate about a few bullion banks suppressing the price of gold and silver.
Of course governments would prefer gold stay low, for lots of reasons. But
that’s different from thinking they can keep it low. If that’s
how stupid and incompetent they are, still going short, trying to suppress
the price, with gold at $1800, after having idiotically lost maybe hundreds
of billions fighting one of history’s great bull markets, then we have
nothing to worry about. If there was any truth to it, traders would have been
snickering about it over drinks for the last decade. And any trading department that wrong for that long… it’s
impossible, because they would have been turfed after the first quarterly
report. But, then again, since a lot of people are credulous enough to
believe nonsense like that, even now, maybe we do have something to worry
about. It would appear some gold friendly folks don’t have much of a
clue how the market, or even the world at large, works.”
I believe that he, like Richard Russell (whom I
otherwise admire greatly), believes he will sell more SUBSCRIPTIONS if he
remains MAINSTREAM, even if he is misleading the very people he purports to
help. The reason RANTING ANDY, who is NOT paid to write, is
well-read is because he tells it like it is, something Doug Casey is
obviously not doing. His primary “angle” on PROTECTING YOURSELF,
by the way, is to buy land in South America (preferably at his OWN projects,
I’m sure), which may have some merits, but to the AVERAGE PERSON is not
only cost prohibitive but also unlikely to have any PRACTICAL use. He admitted
yesterday “I earn a lot of money”, a decidedly arrogant thing to
say amidst a collapsing economic environment and record unemployment. Doug, I
assure you this “gold-friendly folk” knows more about how the
gold market “works” than you, so do me a favor; take all that
money you earn, fly down to your palace in Argentina, and fly a kite!
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