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STRONG HANDS
Speaking of take downs… hearing
from reliable sources the BANKING CRIMINALS are going to take gold to
1575 and silver to 28 level for expiration on 22nd…just another attack
amongst many…and the new COT says it all…
When I awoke this morning, this email
was in my inbox, addressed to Gary Gensler and Bart Chilton of the CFTC and
bcc’d to myself and many others. Written from a money manager
focused on the PM sector, it depicts the FEAR stricken into the hearts each
day of gold and silver investors (don’t worry, readers, the statement
is based solely on speculation).
From the second the NYSE closes each
afternoon (when the typical pre-Asian gold takedown commences), to 3:00 am
EST (when obsessive traders watch the first sharp gold decline of the Western
trading day), to 7:00 am EST (when gold is walked down in front of the NYSE
opening), PM investors watch the Cartel for signs something horrible
WON’T HAPPEN, under the assumption it will. Even weekends are
stressful, as the closer we get to Sunday at 6:00 PM EST, the more intense
the ANGST of a possible early evening takedown, perhaps even a SUNDAY NIGHT
PAPER MASSACRE.
Then the FEAR at 8:00 AM EST, just
before the COMEX opens, when early Cartel “signals” are often
spotted; the actual 8:20 AM COMEX open; the usual economic data at 8:30 AM;
the 10:00 AM PM Fix; and, of course, the potential “NEWS” at any
given time, replete with Cartel ALGORITHMS programmed to take PAPER gold down
simultaneously. And if you can make it through this 20-hour cycle with
your PM portfolio, and SANITY, intact, you get to 12:00 PM EST, the
“cap of last resort” where essentially all gold gains end for the
day.
THIS is the life I led for nearly a
decade, one of FEAR, STRESS, and MISERY watching the Cartel attack both my
net worth and my MIND.
During this period, I learned life
lessons about a variety of topics, including human nature, politics, and
corruption, cumulatively yielding a metamorphosis that has changed me
forever. Becoming RANTING ANDY was a tortuous experience, but thankfully
I navigated the treacherous, Cartel-infested waters intact due to a constant
high-grading of my portfolio. After each major Cartel attack, I reduced
my holdings of PAPER gold and silver investments (i.e. mining stocks) and
increased my holdings of PHYSICAL metal. And an amazing thing happened
along this time line. When each successive attack occurred, I lost less
money, and more importantly, was less stressed and fearful.
Rinse and repeat, again and again,
until I looked up this summer at a portfolio 100% invested in PHYSICAL gold
and silver, which will have to be pried from my COLD, DEAD HANDS. Not
only do I no longer FEAR Cartel attacks, but I dismiss them with nary a
strong emotion. Sure, it angers me to watch nonsensical waterfall declines,
but frankly I expend more energy these days RANTING about PPT support of the
Dow, which I have ZERO economic interest in, than Cartel gold capping.
Just a year ago (60% mining stocks/40%
physical) and certainly two years ago (80% mining stocks/20% physical) and
four years ago (100% mining stocks/0% physical), I was writing similar emails
as the one leading this RANT, an expression of frustration and, more
importantly, the aforementioned FEAR. Holding PAPER gold and silver
investments (mining shares or ETFs) is hazardous to one’s financial AND
mental health, and for roughly 98% of investors HAS BEEN, and WILL BE,
unprofitable, particularly if leverage is employed. Just ask John
Paulson, who was stopped out of eleven million shares of GLD during September’s
post-Labor Day DEATH STAR attacks, only to watch the price rocket right back
up within weeks.
Paulson LIQUIDATES
one-third of his GLD
Aside from being one of the
world’s most despicable inhabitants, John Paulson is the ultimate WEAK
HAND, a hedge fund manager running other people’s money on leverage,
putting the majority of his gold investment into an ETF “tracking stock”
holding little actual gold. In some ways, I liken a position like this
to a lightning rod during a thunderstorm, literally attracting Cartel
attacks.
In the 100 or so Cartel attacks I was
victim to over the past decade, I sat at my computer in FEAR and ANGER,
desperately selling mining shares to reduce my exposure to a falling knife;
cursing the world; writing profanity-laced emails to anyone I could; and
sleeping restlessly with dreams of plunging gold prices and mining
stocks. Just like John Paulson did in September, with nearly $2 billion
of GLD slipping through the fingers of his WEAK HANDS.
Conversely, do you know what RANTING
ANDY did in September, when gold was taken from $1,920 to $1,530, silver from
$45 to $26, and the HUI from 620 to 480 in roughly two weeks time?
NOTHING!
Not only did I not sell ANYTHING, I
didn’t even CONSIDER selling. And not only did I not CONSIDER
selling, the thought never even CROSSED MY MIND. And even if it had,
was I really going to go through the hassle of mobilizing my PHYSICAL gold
and silver to ship to a dealer? Of course not, as my PHYSICAL gold and
silver is held by STRONG HANDS.
I ASSURE you, once you TOUCH a real,
genuine gold or silver coin, you will never want to let it go. Too much
HISTORY is behind its value, too much WORK went into its production, and too
much is at STAKE to risk losing it. For MILLENIA, mankind has fought to
the death for the ownership of gold, more so than for even love or religion,
a human TRUTH that will NEVER change. Gold and silver supply will struggle
to rise throughout our lifetimes, but demand will build and build until it
EXPLODES sometime soon, seeking to “fill the gap” caused by a
decade of the most vicious price suppression scheme in the history of
mankind.
When this happens, market volatility
will surge by MULTIPLES of the WORST levels we have ever seen.
Remember when the VIX hit 45 last month, or 65 at the height of GLOBAL
MELTDOWN I in late 2008. What will you do when the VIX hits 100?
Or 200? Or 500?
This is what kind of VOLATILITY we will
see when the European crisis hits “escape velocity”, signifying
TPTB have completely lost control. Excessive volatility inevitably
yields LOSSES in essentially ALL paper investments, for a variety of reasons,
highlighting just how WEAK the HANDS owning them are. Conversely, only
PHYSICAL GOLD and SILVER will be immune to the selling panic, with demand
actually RISING while the instinct to sell SHRINKS to ZERO, representing
exactly what it means for an investment to be held in STRONG HANDS. By DEFINITION, a true SAFE HAVEN.
And speaking of the European crisis, it
gets worse with each passing day. Contrary to the National Inflation
Association’s irresponsible “call” that Italian bond yields
were set to decline sharply due to the certainty of an ECB bailout, they
EXPLODED this morning back above 7% following a horrific Spanish debt
auction, which itself saw EXPLODING bond yields.
Italian yields BACK
OVER 7% on ABYSMAL Spanish auction
Have no fear, the ECB is here, yet
AGAIN intervening in Italian bonds.
Then why, oh why, are French bond
yields EXPLODING?
French banks have the greatest exposure
to Italy by far, so shouldn’t French yields fall when Italian yields
are taken down?
ECB INTERVENES,
briefly brings Italian yields under 7%, French yields hit FRESH RECORD HIGHS
The only reason French yields would
rise would be if the market doesn’t believe the ECB will be successful
in bailing out Italy, as the NIA erroneously believes.
Perhaps the French CDS market has its
own view, such as we are seeing THIS MORNING. Speaking of “escape
velocity”…
French CDS’
hit ESCAPE VELOCITY
So much for
“Europe is Fixed” – French, Spanish, and Belgian CDS hit
NEW RECORDS
European funding
crisis ACCELERATING
The NIA puts out some of the best
macroeconomic work in the industry, including its piece yesterday on the
hopelessness of U.S. budget deficit discussions (don’t forget about the
looming “Supercommittee deadline just EIGHT DAYS from now).
However, it tries to “trade” the market too much, attempting to
mix a for-profit motive with a not-for-profit veneer, which nearly ALWAYS
leads to LOSSES for its followers. TRADERS and PAPER INVESTMENT HOLDERS
are WEAK HANDS, which cannot stomach the GOVERNMENT MARKET INTERVENTIONS
targeting their wallets.
Moreover, the NIA has fallen for the
oldest fallacy in the book, literally what I learned in “Series 7
101”, i.e. PAST RESULTS ARE NOT PROLOGUE. Comparing Italian
bond yields of yore with those of today are like comparing the 1980 gold
market with that of 2011. Not just apples to oranges, but Martian
apples to Venutian oranges!
Below is a statement from last
week’s NIA “call” that Italian yields were set to sharply
decline. I mean, c’mon! How can one compare Italian bond
yields of “many decades ago”, when there was no EuroZone, Euro
Currency, or ECB? Italian debt was manageable back then, and now is the
third highest, in ABSOLUTE TERMS, on EARTH.
Although a 10 year bond yield for Italy
above 6% may be a new high for the Euro-era, Italy’s 10 year bond yield
averaged well above 6% for many decades before the eurozone was created.
Before joining the eurozone, Italy was able to survive even when their 10
year yield reached a high of 13.75% in 1995.
Why not just say “U.S. 10-year
yields were 15% in 1980, so certainly we can handle 0% now?”
I guess it matters not that in 1980,
the Federal debt was just $1 trillion, the nation’s industrial strength
unparalleled, and the dollar strong. Not only that, but when 10-year
interest rates did surge past 15% back then, all that resulted was a minor
recession, followed by a decade of depressed commodity prices and 20 years of
prosperity.
Let’s fast forward to today, with
“official” Federal debt breaching $15 trillion as we speak, and
the “unofficial” number between $100 and $200 trillion.
America’s industrial base has been gutted, the dollar decimated, the
nation’s infrastructure, and international reputation crumbling and,
despite raging inflation for a decade, the Fed has been too FEARFUL to raise
interest rates any higher than ZERO.
In fact, Benny and Co. are so scared of
GREAT DEPRESSION II, they feel the need to promise its ZIRP policy for AT
LEAST TWO YEARS! Too bad it’s going to be far worse than even the
direst times of the 1930s.
Petulant Fed
dissenter PROMISES ZIRP will last PAST MID-2013
Fundamentally, America sinks deeper
into the rabbit hole each day, or should I say the gaping crater left in the
Gulf of Mexico by BP. While the Gulf’s toxicity increases at a
rate equaled only by Japanese radiation, and oil prices continue to rise,
America’s dependence on foreign energy is SOARING. Perhaps the
costly, but WORTHLESS Department of Energy was the mysterious third agency
Perry will eliminate when he becomes President.
Oh wait, he’s from Taxes. I
mean Texas.
U.S. Energy
Independence, The Big Lie
Conversely, I know someone from Texas
that would eliminate the DOE TODAY if he could, a chap named Ron Paul.
Paul also claims American banks have over $1 trillion of exposure to French
and German banks alone, which sounds to me a like a recipe for BANKRUPTCY (if
it’s possible for already BANKRUPT entities to become MORE BANKRUPT).
Ron Paul estimates
U.S. banks have OVER $1 TRILION of exposure to German and French banks
Add the $1 trillion of U.S. bank
exposure to French and German banks to their $0.4 trillion of exposure to the
PIIGS, and we’re talking some HUGE numbers for a bunch of
already-insolvent banks. Then thrown in the $1 trillion of exposure
that French and German banks have to the PIIGS, and we’re talking about
some serious BANK FAILURES.
But why listen to Ron Paul, that guy
that gets edited out of every debate clip on every major news network?
He only is the Presidential FRONTRUNNER
in the REAL WORLD!…
Ron Paul DOMINATES
CBS online poll with 53,661 votes, runner-up Romney gets 28,588 votes
Or to China, America’s largest
creditor?…
China threatens U.S.
with NEW DEBT DOWNGRADE
Or the implications of COLLAPSING
European economic activity?…
Stocks SLUMP on SLOW
Eurozone growth
Particularly when its largest banks,
from its supposedly strongest countries, are headed toward bankruptcy…
Moody’s Puts
Credit Suisse on DOWNGRADE review – Zero Hedge
Or when the HEAD of the Euro Zone is
PUBLICLY advertising its coming exit…
German Ruling Party
Vote ALLOWS EUROZONE EXITS – Zero Hedge
Or when the supposedly most bearish
gold prognosticator, George Soros, is actually BUYING gold…
Soros NOT
gold-bearish
Or, for that matter, the Russian
Central bank?…
Russian Central Bank
Aims To Buy 100 Tons Of Gold In 2011
And finally, if you want to be
experience the ULTIMATE in SURREALITY, the ULTIMATE in life imitating art,
check out this BRILLIANT, and PRESCIENT, G.I. Joe cartoon from 1985.
This is possibly the COOLEST LINK I have EVER POSTED on a RANT!
Meet Fed’s
latest advisor, COBRA from G.I. JOE
Readers, each day we move closer to the
“EUREKA MOMENT” when popular PERCEPTION is permanently disjointed
from reality; when “Occupy Wall Street” becomes the mantra of the
BILLIONS, not just the THOUSANDS. At that point, no amount of
money-printing or market intervention will matter, as the FLIGHT TO REAL
SAFETY will launch with the intensity of 1,000 nuclear warheads.
REAL SAFETY is defined as REAL MONEY,
i.e. PHYSICAL GOLD and SILVER, as well as FOOD, ENERGY SOURCES, OTHER LIFE
NECESSITIES and ITEMS OF INTRINSIC VALUE. Once this movement begins, it
will likely be too late to PROTECT YOURSELF by acquiring these items,
certainly at prices anywhere near the current levels.
Thus, you must ask yourself this:
Do you want to be like the OLD, WEAK
HAND Ranting Andy, living in FEAR each day and night, sitting by your
computer praying to survive and selling everything you own at fire sale
prices?
Or, do you want to be like the NEW,
STRONG HAND Ranting Andy, whose grip on his PHYSICAL gold and silver is
equaled only by his convictions?
PROTECT YOURSELF, and do it NOW!
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