|
March
14 – Gold $ 998.70 up $6.50 – Silver $20.61 up 27 cents
US Financial Markets Are Equivalent To World Wrestling Entertainment
... As System Implodes
"If you are neutral in situations of
injustice, you have chosen the side of the oppressor. If an elephant has its
foot on the tail of a mouse and you say that you are neutral, the mouse will
not appreciate your neutrality" … Desmond Tutu, clergyman (b.
1931)
GO GATA!
A
central theme to this commentary is that America has become the United States
of Russia when it comes to management of US financial markets, the controlled
financial market press (no such thing as an objective, free market press in
this country), and the management of government statistics engineered to
foster the notion that "Everything is fine," no matter what the
reality is festering beneath the surface.
"Paulson,
The Gold Cartel, And The PPT Are So Predictably Pitiful" was part of the
MIDAS headline yesterday. Yesterday was only "Jacks for Openers"
for that crew, or only part 1 of Plan A. They had no intention of letting all
that effort go for naught. Take it away General Paulson and gang…
When
I woke up this morning the DOW was due 75 lower and gold was $5+ higher,
challenging $1,000 again. What a pleasant surprise, I thought, especially
since the euro was down .50 and oil was lower. But,
how could this be with the CPI coming out in a couple of hours? By the time I
shaved and brewed a cup of coffee, gold was taken down $4, and remained that
way going into the CPI report. This is more of what I expected, thus no
emotional lamentation.
Par for the course:
Drum
roll please … for the CPI:
08:30
Feb CPI reported 0.0% vs. consensus 0.3%; ex-Food & Energy 0.0% vs.
consensus 0.2%
Prior CPI unrevised from 0.4%; ex-Food & Energy unrevised from 0.3%. Y/y
CPI 4.0%; ex-F&E 2.3%.
* * * * *
ALRIGHT!
WHAT INFLATION PROBLEM?
The
DOW rallied 150 points in seconds. The PPT’s
sycophant traders were rewarded again for glomming stock futures yesterday
morning when the financial markets news was so increasingly bleak. The CPI
news was the first piece of unexpected good news (for the believers) in some
time and might be the spark to drive more shorts out of the market.
The
bullish US stock market stance of some of the Planet Wall Street bulls, and
my friend Chuck Cohen, is that the market sentiment is far too bearish,
according to the latest Investment Intelligence Report … that
historically, so much pessimism leads to sharp stock market rallies. This is
just what the PPT gang has been playing for, a number (even if one of the
most contrived in history) which forces the shorts to cover. After all,
veteran traders know that (in normal free markets) a market which refuses to
go down on so much bad news, will go the other way
on any kind of good news.
Voila!
Market Action Makes Price Commentary … US stock market futures have
continued to soar. Planet Wall Street bulls are ecstatic … now that
inflation concerns can be put on the back burner, the Fed can reduce the Fed
Funds rate by .75 basis points next week.
But,
how weird … and also contrived. The yields on US Treasuries were
repressed, and on recent monthly lows, on safe haven, market collapse
concerns. They just went even lower now that there is less of an inflation
concern. Planet Wall Street bulls are even more jubilant.
How
so many investors, and the Planet
Wall Street crowd, buy into this orchestrated
nonsense is amusing. !You Have Got To Be
Kidding Me! That is not to say to give kudos to traders who understand
the game here. Good for them if they know what our government is doing and
are trading accordingly. It is why I won’t short the stock market.
However, that said, the Working Group on Financial Markets (and the
Administration) is playing for time. Until the system is allowed to work out
its excesses due to OVER THE TOP, flawed market manipulation put into play
the past many years, rallies won’t go very far.
What
has changed since yesterday as to what the real market state of affairs is in
the US?
... One contrived report, that’s it. LOONY TUNES!
YIKES!
Stop the presses…
09:13
BSC JPMorgan
and NY Fed to provide financing to Bear Stearns (57.00)
* * * * *
09:14 BSC Follow-up:
JPMorgan and NY Fed to provide financing to Bear Stearns (57.00)
JPMorgan announced that, in conjunction with the Federal Reserve Bank of New
York, it has agreed to provide secured funding to Bear Stearns, as necessary,
for an initial period of up to 28 days. Through its Discount Window, the Fed
will provide non-recourse, back-to-back financing to JPMorgan Chase. Accordingly,
JPMorgan Chase does not believe this transaction exposes its shareholders to
any material risk. JPMorgan Chase is working closely with Bear Stearns on
securing permanent financing or other alternatives for the company. BSC is
trading at $62.48 from yesterday's $57.00 close.
* * * * *
Good grief! I didn’t even have time to say that it has been my
opinion for some time, and still is, that the US stock market was no place to
be because the US financial market system is imploding. That has been the
MIDAS rant for MANY months, going into last year. Just a sample of some past
headlines again…
3/10 More Steps Closer To The Unthinkable
3/7 Silver Stands Out / PPT STUFFED AGAIN /
US "System" Disaster
2/14 The Unthinkable Might Be Close At Hand!
1/17 CATASTROPHE / Yo
Silver
12/5 THE SMOKE SIGNAL / Dysfunction Junction
11/26 PANIC ... GOLD WILL GO BONKERS (Silver
Too) OUT OF NOWHERE!!!
11/20 "Everything Is NOT Fine"
… Gold/Silver Roar Back
11/15 Gold Cartel And PPT Upping Financial
Market Moral Hazard Risk
11/1 Titanic Comparisons Are Not Over The Top
8/29 "Everything Is Fine," Again
8/17 Calamity It Must Be
8/13 There Is The Planet Wall Street Version
And Then There Is The Planet GATA Version
8/6 White Is Black And Black Is White In The
Counterintuitive US Financial Market World
8/1 This Is Not A LTCM Problem … This
Is The Entire US System!
7/31 MARKET CHAOS LOOMS!
7/26 Financial World Falling Apart So Gold
Cartel Continues To Bomb Gold
7/24 The Gold Cartel And PPT Can Only Do So
Much
7/5 Financial Market Stress Building
Noticeably/Extraordinary HUI Action
Enough
already … point made as best I can.
Gold
has now rightfully blown through $1,000 … it should be up $50. Silver
is in new 27-yr high ground and thanks to the PPT the DOW is back above
12,000, after falling 275 points on the Bear news.
This
morning was the worst stock market opening I can recall as to its pre-opening
call … due to the false euphoria over the CPI. This was due to the Bear
news hitting the tape between the time futures closed prior to the opening
and the 9:30 NYSE opening.
CNBC
is full of hysteria at the moment, with commentators like Madman Cramer
screaming. Some calm thoughts from mild mannered MIDAS…
*Thornburg
Mortgage was fine one day, bust the next.
*The
Carlyle hedge fund was the crème de la crème one day, and
tapioca the next.
*Alan
Schwartz, chief executive at Bear Stearns, was on CNBC just the other day
saying the rumors about Bear’s problems were
UNFOUNDED. Today Bear is going bust.
*So,
within 2 weeks, three of the most highly regarded financial entities in the US are gonzo.
*What
about the next two weeks and months to come? What about lesser financial
entities?
*JP
Morgan is bailing out Bear Stearns and has been given a backstop by the Fed. In
other words, the Fed has told Morgan they will bail them out should Bear not
be able to FULLY make good on the illiquid paper they are assuming.
*They
are yapping on CNBC that it is unfair the Fed has gone to Morgan with the
deal and not allowed others to bid for the same no risk opportunity.
*If
these people looked at the markets like we do on Planet GATA, they would
realize how understandable this is. Morgan is the Fed’s bank, the
derivatives gorilla, one of the major firms that rigs the US financial
markets. This is par for the course.
*For
a case in point as to the relationship of Morgan and the Fed, all we have to
do is go back to the Evergreen deal Morgan gave BARRICK GOLD to do
ridiculous hedging near the bottom of the market to aid The Gold Cartel in
their price suppression scheme. According to their hedge agreement, Barrick’s Gold hedges can be rolled over ad
infinitum, with margin calls not ever having to be met.
*Bear’s
Schwartz is a liar. He knew exactly how precarious Bear’s position was,
yet went on TV this week to assure stockholders and counterparties that all
was A-OK. Markets are about confidence. Confidence in Bear was rightfully
eroding, so he went on TV and lied and continued his lying spiel as late as
yesterday. To think the reasons for this dramatic bailout occurred overnight
is beyond ludicrous.
*The
Fed plan "will provide secured funding to Bear Stearns for an initial
period of 28 days, seeking to provide short-term relief for Bear
Stearns." Even Freddie Mac says that the US housing slump is only 1/3
over. What happens in 28 days?
*Here
is what: 11:35 Ex-Treasury Secretary Rubin says "substantial"
further action is needed -- WSJ
* * * * *
*12:08 Follow-up: former Treasury Secretary Rubin says
"substantial" further action is needed -- WSJ
Rubin believes the risks are "serious enough to call for substantial
additional action in the mortgage arena," which would probably require
public money.
* * * * *
Back
to gold … demand for physical gold surged even further after the Bear
news. The PM Fix came in at a historic high of $1003.50.
Once
completed, The Gold Cartel went into action under their Plan B attack time,
which is after the physical buying is over for the day. Gold was soon taken
down below $1,000 on the Comex, dropping $6.
I can
hear President Bush on CNBC, speaking in New York,
talking about our free markets in America. I want to throw up. He
is now ranting about "freedom" flourishing. This time I did throw
up.
Well, The Gold Cartel accomplished their goal of keeping spot gold
below $1,000. Pyrrhic victory at best. Gold made another all-time high and is
about to go berserk.
There
was talk all morning long on CNBC about a CRISIS OF CONFIDENCE ... re, how
could one trust in anything after what just happened to Bear Stearns. If their
CEO wasn't lying, it makes it worse ... meaning nothing can be trusted if
they could actually go from just fine to taps. That is where gold comes in.
Gold is what it is. Soon the entire investment world will want IN! Silver
too!
The
gold open interest rose 11,755 contracts to 503,123, as the specs are piling
back into gold, willing to take on the backpedaling
Gold Cartel.
Meanwhile,
the silver open interest continues to contract (down 233 contracts to
161,496) as the silver price continues its ascent. The silver COMMERCIAL
SIGNAL FAILURE is astounding. The trapped commercial shorts are DESPERATE. They
are covering on a daily basis. Wait until the specs decide to come back into
silver, as they are now doing with gold. Silver has $25 per ounce written all
over it. Then, up from there....
May silver (27-yr high close)
http://futures.tradingcharts.com/chart/SV/58
May weekly
http://futures.tradingcharts.com/chart/SV/W
 
It's uptown for gold too, way uptown ...
April
gold
http://futures.tradingcharts.com/chart/GD/48
Gold
weekly
http://futures.tradingcharts.com/chart/GD/W
The Commitment of Traders report for both gold and silver revealed
nothing of interest, which is incredibly intriguing when it comes to silver. The
large specs and commercials both reduced their positions by 2,000 plus
contracts. Have to wait for Ted Butler on the concentrated shorts, but there
is nothing here which shows they are running for the hills with the rest of
the commercial shorts.
Their
losses are colossal, so what does it mean? They will soon panic, forced to
cover; OR, if these shorts are backed by the US Government, as part of the
Gold Cartel operation, and will just stay here. Should be easy for EVERYONE
to understand this now, with the Morgan tanking Bear Stearns paper WITH NO
RISK.
The
dollar was all over the place, closing down again, off 24 to 71.66. The yen
soared, closing at 99.22. The euro was up at least
.43 (depending on what close yesterday you use) to 156.63.
The
yield on the 10 yr T note sank to 3.44%.
CARTEL
CAPITULATION WATCH
Guess my "Smeller" is still
working.
Not
only did The Gold Cartel prevent gold from closing above 1,000, they made
sure the US
stock market did not close down for week ... and kept the DOW from closing
down 200, and around 100 off its lows. The DOW finished off 194 to 11,951 and
the DOG lost 51 to 2212.
Here
is the "HUH?" of the week:
"End
of subprime write-downs in sight," S&P
says
US economic news:
More
on the CPI number:
U.S.
Feb consumer prices flat on lower energy
WASHINGTON, March 14 (Reuters) - Cheaper energy and transportation prices helped
keep overall consumer prices in check in February, the Labor
Department said on Friday, a surprise after a period of run-ups that had
heightened concern about inflation.
The department said its Consumer Price Index, the most widely used gauge of
inflation, was flat last month after rising 0.4 percent in January. Even more
significantly, core consumer prices that exclude food and energy items were
unchanged in February after climbing 0.3 percent a month earlier.
The tame price performance was sharply in contrast to Wall Street economists'
forecasts that overall prices would climb by 0.3 percent and that core prices
would be up 0.2 percent. Federal Reserve policy-makers meet next Tuesday and
are expected to cut interest rates again to try to boost a flagging economy.
The last time overall consumer prices were unchanged was in August 2007.
The CPI report showed energy prices fell 0.5 percent in February, a sharp
reversal from January's 0.7 percent gain and the first decline since last
August. Transportation prices were down 0.7 percent following a 0.5 percent
December gain.
In the 12-month period through February, consumer prices rose 4 percent, a moderation from the 4.3 percent gain registered in
January and the smallest year-over-year increase since last October,
according to department officials.
-END-
09:55
Mar Univ.
of Michigan
Confidence reported 70.5 vs. consensus 69.5
Prior reading was 70.8.
* * * * *
03/14/2008
09:55 *DJ Reuters/Univ Michigan Mid-Mar Current
Index 84.6; Feb 83.8
03/14/2008 09:55 *DJ Reuters/U Michigan 12-Mo Inflation Forecast +4.5%; Feb
+3.6%
US consumer mood
weakens, confirms recession-survey
NEW YORK, March 14 (Reuters) - U.S. consumer
confidence dipped in early March to fresh multiyear lows, confirming the
economy is in recession, a private survey showed on Friday.
Adding to the downbeat outlook was a jump in worries over inflation outlook
due to surging fuel prices, according to the Reuters/University of Michigan Surveys of
Consumers.
The surveys' index of confidence slipped to 70.5 in early March from
the final February reading of 70.8. Economists
polled by Reuters had predicted a lower figure of 69.0.
"There was nearly unanimous agreement among consumers that the economy
was now in recession," said Richard Curtin, director of the survey, in a
statement.
Consumers' view of inflation one year ahead, at 4.5 percent, was up sharply
from February's 3.6 percent. Other than for the month after Hurricane Katrina
in the fall of 2005, the latest 1-year inflation reading was the highest
since the 1990 recession, according to Curtin.
US
faces severe recession-economist Feldstein
BOCA RATON, Florida,
March 14 (Reuters) - The United
States has entered a recession that could
be "substantially more
severe" than recent ones, former National Bureau of Economic Research
President Martin Feldstein said on Friday.
"The situation is very bad, the situation is getting worse, and the
risks are that it could get very bad," Feldstein said in a speech at the
Futures Industry Association meeting in Boca
Raton, Florida.
NBER is the organization that determines when the business cycle enters
recessions and recoveries.
TREASURIES
ADD GAINS AFTER FORMER NBER ECONOMIST FELDSTEIN SAYS US IN POTENTIALLY SEVERE
RECESSION
U.S. RATE FUTURES
SHOW GROWING CHANCE OF 100 BPS FED RATE CUT NEXT WEEK
REUTERS
TEN YEAR US
TREASURY NOTE RISES OVER A FULL PT, 30-YR BOND UP OVER 2 PTS AS STOCKS TANK ON
BEAR NEWS
REUTERS
U.S.
SWAP SPREADS TURN WIDER AS CREDIT JITTERS RETURN AFTER BEAR STEARNS FUNDING
NEWS
FED
SAYS WILL PROVIDE LIQUIDITY AS NECESSARY TO PROMOTE ORDERLY FUNCTIONING OF
FINANCIAL SYSTEM - Reuters
21:34
Heard on the Street looks at the SEC's effort to
soften the mark-to-market blow - WSJ
The Journal reports that SEC plans to tell companies as soon as next week
that while they still largely have to apply mark-to-market accounting rules,
they will be allowed to provide investors with a wider range of possible
values for securities they hold in the text of their earnings reports. The
move is intended to give investors more information about prices that have
become difficult to determine given the paralysis in many areas of the credit
market. The article notes that until now, a company risked running afoul of
regulators if it valued a security at a figure other than the market price. According
to the Journal, there is some concern that given that the SEC is expected to
suggest that companies explain in detail how they arrive at the alternative
values, they may present an overly optimistic view of the potential losses
they are facing.
Reference Link (subscription
required)
* * * * *
18:32
Majority of economists say US has slipped into recession - WSJ
The article notes that 71% of the 51 respondents in the latest Wall Street
Journal economic-forecasting survey say the economy is now in a recession. The
survey, which was conducted between 7-Mar and 11-Mar, also revealed that economists
now expect nonfarm payrolls to grow by an average
of 9K a month for the next year, down from 48,500 in the previous
survey just over a month ago. In addition, 20 economists now expect payrolls
to contract outright, while the average forecast for the unemployment rate by
December was jacked up to 5.5% from 4.8%. Also of interest, 29 of the 55
respondents said they expect the economy to contract in Q1, and 25 expect
such a pullback in Q2. On an even more concerning note, the respondents put
the odds that a 2008 recession could be worse than both the 2001 and 1990-91
downturns at an average of 48%, up from 39% in the previous survey. Not to be
outdone, the economists raised their average forecast for consumer-price
increased to 3.5% by June, up from 2.7%.
Reference Link (subscription
required)
* * * * *
More Bear stuff:
10:26
BSC Federal Reserve
comments on Bear Stearns/JPMorgan (30.51 -26.49)
The Fed's statement reads as follows: "The Federal Reserve is monitoring
market developments closely and will continue to provide liquidity as
necessary to promote the orderly functioning of the financial system. The
Board voted unanimously to approve the arrangement announced by JPMorgan
Chase and Bear Stearns this morning."
* * * * *
10:37 BSC SEC issues
statement regarding Bear Stearns (31.00 -26.00)
The SEC statement is as follows: "The Securities and Exchange Commission
has been in close contact with the Department of the Treasury, the Federal
Reserve, and the Federal Reserve Bank of New York during discussions
concerning an agreement by J.P. Morgan Chase & Co. to provide a secured
loan facility to The Bear Stearns Companies. We will continue to work closely
together in a way that contributes to orderly and liquid markets."
* * * * *
Right up my alley:
A
Vicious Circle Ending In A Systemic Financial Meltdown By Mike Whitney
Click here: http://www.informationclearinghouse.info/article19531.htm
***
Of note:
VENEZUELA
IS REQUIRING EURO PAYMENTS FOR SOME CONTRACTS FOR CRUDE, PRODUCTS AND SPOT
SALES - OILMIN
VENEZUELA HAS NO TARGET FOR AMOUNT OF CRUDE TO BE PAID IN EUROS -OIL MINISTER
More misery for the US consumer:
US
heating oil dealers seek help amid cash crunch
NEW YORK, March 14 (Reuters) - U.S. heating oil distributors said Friday they
were seeking federal help to ease a cash crunch this winter caused by delayed
payments from low-income customers and sky-high prices for their own fuel
inventory.
The squeeze mirrors problems faced by dealers in 2004, when a run up in
energy prices pushed the nation's leading heating oil distributor to the
brink of bankruptcy.
"It's brutal," said Shane Sweet, CEO of the New England Fuel
Institute (NEFI), which represents about 1,000 distributors and retailers in
the northeastern states. He said customers
occasionally ring their fuel dealers in tears over their heating bills.
"I was talking with heating oil dealers and gasoline station convenience
store operators, and in terms of cost of fuel and the impact that it has to
their operations, it's the worst year that most people can ever
remember," Sweet said.
The average residential heating oil price paid by Americans surged to a
record $3.68 per gallon this week, up more than 40 percent from a year ago,
alongside a surge in the price of crude oil to all-time highs, according to
government data…
-END-
Mexico Mike:
Hi
Bill!
Talking
heads!
My
trades all closed (at a profit) this morning before I was even out of bed, so
I was enjoying a nice breakfast and coffee, with CNBC on this morning. Bush
was speaking, and he made one of his usual stupid comments. A question was
asked that actually mentioned gold and inflation, and CNBC could not censor
that one... Bush then launched into a rambling reply that did not anwer the question, but was filled with mom and apple
pie, everything is fine, hugg your dog, etc... But
his most classic comment was in regards to ethanol, and how its going to help
the country address the energy issue (?!!!!), and then how it represented a
small inconvenience for the hog farmers. Am I completely losing my mind? Corn
prices rocketing to all time highs and throwing a giant inflationary money
wrench into the food supply and its a minor
inconvenience?
The CNBC panel then went on with their usual lame commentary, but for once
they actually acknowledged that the Fed action today to help out Bear Sterans was a BAILOUT. They used the 'B' word! Things may
be improving after all, if even the talking heads on TV begin to understand
we have a problem. Could they have noticed the 800-pound gorilla in the room?
Now what continues to bother me is the cheerleader mentality of that network.
No matter how bad things get, they look for something to dress it up. Today
they noted that the market depth showed 500 decliners, but there were 35
gainers. They went on to focus on how nice it was for some stocks to be
gaining today instead of commenting on the abyssmal
declines going on everyone else. That is like seeing your house burning to
the ground, and then pointing out that the little shrub you planted in the
front yard was untouched...
We continue to live in an age of propaganda and spin, and how people have put
their own critical analysis capability on hold, prefering
instead to hear the soothing blather of talking heads that are lying whenever
they open their mouths.
And one final comment: yet another illustration of a corrupt market today, as
we face the real prospect of a huge financial powerhouse imploding, and the
dollar continues to dive to new lows... Gold was driven sharply lower around
midday, silver followed, copper eased down, and the DOW started climbing, all
about the same time. Add in a minor bounce in the buck. Coincidence and
normal trading behaviour? Only if you work for CNBC.
Until the market participants acknowledge that the system is in serious
trouble, and begin to focus on the reality instead of the fantasy, then we are not going to find a constructive way to deal
with all of this. I do not have a great degree of confidence that there will
be concrete answers presented and therefore things are going to get worse. So
I am buying gold and silver and shorting the hell out of this market. I will
be waiting for the rally after a half point interest rate cut on Tuesday, and
then pile on new shorts right after.
cheers!
Mexico Mike
TOCOM
Ladies
and Gentlemen:
On March 13th the seven large gold shorts increased their net
short position by just 118 contracts to 86,550 contracts.
STDJ
increased their net short position by 845 contracts to 35,713 contracts.
http://www.tocom.or.jp/souba/gold/torikumi.html
In
silver they reduced their net short position by 188.50 contracts to 772.50
contracts (old 60kg deliverable equivalent).
http://www.tocom.or.jp/souba/silver/torikumi.html
Have a nice
weekend,
Scott
Bill,
In the March 13 session on the TOCOM Goldman Sachs stopped treading
water…well, not really! They increased their short position by 38
contracts and bought 5 long contracts to bring their long position to 404
contracts and their net short position to 14,329 contracts. If Goldman Sachs
reads this column I would like to advise them that the music will stop pretty
soon and anyone holding 14,329 gold contracts net short will not be amongst
the winners! They can take solace in good maritime tradition that the captain
always goes down with the ship.
Cheers
Adrian
GATA still has heard NOTHING from the Fed or US Treasury
regarding our FOIA request as to the true status of US gold reserves. Will
the US be another Ethiopia?
Ethiopia
Officials Still Investigating Fake Gold In National Bank's Vaults
The mystery of gold gilded steel bars and Ethiopia's national bank is still
unraveling. Bank officials were ordered by
parliament's budget and finance committee to inspect all the gold in the
national bank's vaults after two separate deposits of gold bars were found to
be fake. The initial problem was uncovered when the
bank sent a consignment of 300 kilograms, 10,582.1886 ounces
of presumably 999.9 percent pure gold to South Africa. That nation tested
them and found them to be gold gilded steel counterfeits. The price of gold
reached a record high of $1,000 per ounce on Thursday.
-END-
The
Cafe Sentiment Indicator has picked up, but is nothing to write home about
... imagine that at $1,000 gold. Instead, this is where the mindset is here;
Click here:
Pawnshops see rush of gold sellers - MSN Money
From a Cafe veteran favorite, James Mc,
titled, World Wrestling Federation or WWE (formerly the WWF, who had to
change their name because The World Wildlife Foundation had already
copyrighted WWF)
Bill,
Like you I am not overly happy with the $1,000 gold milestone being achieved.
It would be at least twice that amount without daily interference by the
cartel. Today the Dow should be down 1,000 points, and gold should be up
$50-$100. Yet the script must be enforced.
Watching
the markets is much like watching a World Wrestling Entertainment match. There
is a real arena with real fans in the seats, and the competitors are very
athletic and act combatant. There is a referee officiating
the event. There is a real announcer calling play-by-play of what he
seemingly is watching. The wrestlers go at it, and apparently suffer
bone-jarring hits and body slams that would make mere mortal men scream like
a girl. There is a winner and a loser, scores are kept, and rankings assigned
to the wrestlers. It all looks just like any professional sporting event.
Except it isn't, it's totally scripted and fake.
The
"good guy" wrestler always gets pounded at first, then after all is hopeless and he is down for the count he
miraculously gets up to defeat his "evil" opponent. Blows to the
head are accompanied by foot stomps for acoustical embellishment. The
wrestlers soar from the ropes landing all 300 pounds on an
opponent, yet neither ever gets seriously hurt. If a wrestler is in trouble
he enlists another "buddy" for an instant tag team advantage. The
referees tolerate ANYTHING; there are no illegal moves. Even picking up metal
chairs for weapons is just smart "rasslin".
The winner then crows about his superiority and some good
looking girls comes out to support him.
In
the cabal WWE script the "good guy" is the cartel, and the
"bad guy" is gold. The refs are the CFTC and SEC. The ringside
announcer is Jon Nadler, with color commentary by
Reuters or Bloomberg. The Dow is always on the ropes early, then stages a miracle comeback. Gold always has bullish
beginnings, then falls to the mat. The tag team
buddy that clubs gold with a chair is the IMF rumoring
to sell gold. The pretty girls are CNBC supporting the fraud witnessed. The
statistics kept are phony and based on fraudulent
data. Like the WWE the cabal wins no matter which wrestler is in the ring. And
also like the WWE everybody involved is either directly or indirectly in the
employ of banking masters.
The
only way it fails is if enough fans wise up a predetermined outcome and quit
buying tickets. GATA knows the financial markets are illegally rigged and
crimes are being committed. The action lately looks more fake
by the minute. The cartel can't even give an ILLUSION of a competition. The
ticket buyers are canceling and leaving for a REAL sporting event- gold. Tickets to the cabal show are
plummetting.
I
swear Hank Paulson even resembles Vince McMahon. They are kindred spirits.
James Mc
The
XAU closed up .99 to 206.37. The HUI continued its winning breakout ways,
rising 7.35 to 514.89.
What
a day! Then again, this is becoming common.
Veteran
Cafe members have been warned by the GATA camp of a coming derivatives blowup re the US financial market system and of
the growing counterparty risk problems. What surfaced this morning for Bear
Stearns may only be the tip of the iceberg of what is to come ...and most
likely is.
Scary?
You bet. There are trillions in derivatives on the books of JP Morgan Chase
alone. Confidence is quickly eroding as far as the US financial market system is
concerned. This erosion of confidence is likely to deteriorate in the weeks
ahead. This erosion could very well set off the derivatives neutron bomb in
the US
financial markets, so long talked about here. Yes, THE UNTHINKABLE ... after
all IMO, the Titanic has ALREADY hit the iceberg.
As
conditions in the US
financial markets continue to deteriorate, gold and silver will go through
the roof. The shares will go ballistic as the investors all over the world
pour into our tiny market-cap sector.
FORTUNES
WILL BE MADE VERY QUICKLY
More
on the same:
Who
slept with the Bear?
To
all; well folks, now we have to wonder who slept with the Bear? Bear Stearns
that is. Bear announced funding and liquidity problems this morning. Now, the
witch hunt will begin, probably Monday morning on the market opening. Bear is
a huge investment bank. They have had their paws in almost all of the exotic
finance markets. Players will immediately begin looking for counterparties
with Bear.
This
is an important leap in the spread of the credit crunch. We don't wonder
about which asset classes have been affected/infected anymore, since
virtually all credit classes have caught the virus. We now move onto the
company specific stage. We will hear truisms, rumors,
etc. regarding which companies have or have not, exposure to Bear Stearns. This
stage will move much more rapidly than the "asset infection" stage.
Rumors and emotions will now play a bigger roll
than ever. At this point, who is kidding who? There is virtually no
"paper place" to park money and go to sleep at night, except short
term Treasuries. Even then you have to worry about the $ declining and the
day this whole trainwreck ends up in the
Treasuries' lap.
Now
that we FINALLY have $1,000 Gold, I have a question for everyone. Which would
you rather have right now, knowing what you know? $1,000,
or an ounce of Gold? Which one would you sleep better at night with? I know
my answer! Bear Stearns never slept with Gold before. For that matter Bear
may have even sold Gold short, who knows? Since Gold has no counterparty
risk, I feel very comfortable going to sleep at night with Gold assets. During
this "counterparty witch hunt" many more will discover Gold to be
the ultimate island of isolation with no counterparties. Gold is no one
else's promise to pay. It has value because it "is", not because a
bankrupt government, or institution says it has
value.
The
window to prepare your finances etc. is closing quickly. When it shuts tight,
everyone will initially be shocked, then very quickly the thoughts of " Oh, how obvious was this all" will be
prevalent. It has happened before, and unfortunately it is all too obvious
now. Try to enjoy the weekend, Regards, Bill H.
On
that upbeat note as far as gold's future is concerned, I would like to rehash
my recent comments about coming to GATA's Washington conference
in a month (April 17 to 19).
The
mood and psyche among the investing public will soon turn to FEAR. Many are
going to panic a bit and will want to know what to do. Can they turn to the Planet Wall Street
crowd which gives them propaganda drivel? Can they trust the hedge fund firms
like Carlyle, the honest men at Thornburg, whose CEO says all is well, then they go bust? Can they trust a Planet Wall Street lexicon like Bear
Stearns? I think not.
Based
on our track record of the last 7 years, if I may, I suggest they can trust
the GATA camp, who has told it like it is for many years, even if the US mainstream
press will not even acknowledge we exist. I challenge anyone on Planet Wall Street
to come up with a better forecasting record on gold ... what the price would
do and why over the last 7 years. I challenge anyone outside our camp to more
fully explain, and more articulately, what the US financial markets are all
about these days and WHY we are facing the mess we are in now.
MANY
of your friends are going to be talking to themselves about what to do,
financially speaking. You might not be able to attend our coming historic
conference, but they might. Therefore, please ask them to view what GATA had
to say at the end of January in our full-page color
ad.
We
talked about the gold price soaring and used the words "disaster"
and "catastrophe" as to the future state of US market
affairs, as a result of the overreaching market management by the PPT, Gold
Cartel, etc.
I
urge you to read what we had to say well before recent events unfolded. Ask
them to GO THERE. Why? Because once they know what the GATA camp knows, they
won't need to be fearful. Investors in gold, silver and the shares will make
fortunes in the months and years ahead. Turn their fear into GREED ... to be
positive about their financial future, not to be fretting about the
disappearing US
stock and real estate markets.
Have
them take 24 minutes and watch what the speakers had to say in our
www.GoldRush.21.com video. Many of those same speakers will be at our Washington conference.
There is nothing like coming in contact with people to build confidence in an
individual's investment process.
The gold/silver train will soon leave the $1,000 station and head for
$3,000 to $5,000 per ounce. The exploration/junior share train is about to
EXPRESS its way out of its forgotten station.
Those
onboard these trains are going to be very happy campers at the end of this
year.
GATA
BE IN IT TO WIN IT!
MIDAS
Appendix
PS:
WE EXPECT TO SELL OUT THE GATA CONFERENCE.
A
very hearty congrats to you and your team,..
A
major milestone this week has been reached,.. That’s
not to say we won’t see 3 digits again, infact
I’d be v. surprised if we don’t,.. But
the dam has been breached and I think the writing is very much on the wall now,..
It’s
going to be even more interesting to see how things develop going forward,.. I think, like the wheat markets and other
areas, we are going to see increasingly larger trading days of $30-50
becoming common,.. Silver perhaps $1-3 daily variables,..
Have
a well deserved stupendous weekend,..
Very Best,..
Rich (Live from ‘The Scarborough
Bullion Desk’)
Hi
Bill,
I have just e-mailed you tonight's main radio news which leads with the gold
story - Maybe you can enjoy it after finishing your commentary.
Here
is the online story from the BBC, but also it was the lead article on the TV
news tonight - I was in the gym sweating away on the cross-trainer and it was
great - there were lots of pictures of gold bars, Gordon Brown being
criticised for selling our gold and a very smart lady from the WGC wearing
big gold earrings and, of course, talking about jewellery demand - I suppose
it was too much to expect this not to happen.
I
wondered if I was dreaming to see such coverage.
However,
my main reason for writing is to thank you for all of your hard work in
reporting the massive cover up and manipulation. You deserve every plaudit
going and I think it is safe to say the wildest moments are still to come in
this market.
Have
a great evening,
Bob
http://news.bbc.co.uk/1/hi/business/7294040.stm
Bill,
You're not alone in your assessment of the mainstream financial medial. If
you have time to take a quick look at this article it's worth at least a
glance. There's also a good (scathing) video clip of Jim Crammer in
conversation with Rick Santelli.
Thanks for your work.
-Mark
http://www.jugglingdynamite.com/blog/_archives/2008/1/25/3485996.html=
Hi Bill
Let's not forget that Bear Stearns is one of the
"Authorized Partcipants" in both the GLD
and SLV ETF's.
http://www.lemetropolecafe.com/Pfv1.cfm?pfvID...ad%20to%20roota
I would not be surprised to see them YANK physical metal out of those
vehicles to deliver on the COMEX.
Bix
Much more for subscribers…
By : Bill Murphy
Lemetropolecafe.com
Mu
Le Metropole
Café is a Membership site. Visit and Experience a 2 week Free Trial !
Bill Murphy is chairman of
the Gold Anti-Trust Action Committee and proprietor of www.LeMetropoleCafe.com, an Internet site devoted
to financial commentary with emphasis on the precious metals. He can be
reached at :
LePatron@LeMetropoleCafe.com
| 
