Gold will Reach Mind-boggling Levels – for Good Reason!

We are staring at a nascent but potentially and probably startling increase in the price of gold and precious metals mining stocks and warrants. Gold will reach mind- boggling levels because the actions of our political leaders and their academic and credentialed enablers are virtually guaranteeing it with their current actions.
http://news.goldseek.com/GoldSeek/1259186241.php

In the short term, take a look at following analysis:

http://news.goldseek.com/CliveMaund/1259161260.php

SLAUGHTER DEVELOPING TONIGHT

Great headline...but meaningless just like the futures are right now. Watch how they play this....Is there panic? NO WAY. Nor will there be.....at least none that you will see. Can they paint this tape anytime they want to? Absolutely...at least to a point. Black Swan excluded.

So the question is what happens tomorrow. The answer is who the fck cares. You should be in cash and waiting for a miners pull back ...hoping this pig rolls over a little for you to get back in. In other words adding on pullbacks SSRI AUY GG JAG EGO AVN SLW TLR GORO ABX....These are what will carry you through in the long run.

If you were really wise which I am not....you would be on the sidelines sitting on physical gold period.

Anyway Dubai default is no surprise to anyone in the "know". So why would you think this is not already completely planned by the PPT.

Enjoy and hope we get some take back.

BIG TROUBLE IN THE WORLD

And we deserve this mess. Gold is ramping up through the hidden pivot of 1174....this is significant gang it means that the central banks have a huge problem and all fiat is being dumped for gold.......either they get control fast or this is a quick race to hell...

Either bring in Volker and take your medicine now Mr. President or you can say goodbye. This is a fast spiral to hell. The Ponzi is being called by the real money in the world.

If you look at the tape for the past couple of yrs, the lowest the dollar index reached was around 69/70 and Gold hit high of 1030 during that time and retraced. Now Dollar index is around 75 and Gold close to 1200. Dollar index is hovering around 75 and not CRASHING but Gold keeps moving up regardless, that means there is coordinated effort by India, Russia, China, Rich Arabs and others to keep buying Gold not just because of lack of trust for the Dollar, but also not trusting other fiat paper currencies including their own. This is a real mess and a global crisis.
Gang this is a bad sign ....it is a potential nightmare.It looks as though they have their hands full

GDP PONZI

Another Ponzi number release for the masses. As most numbers this is suspect and certainly influence by massive government spending, but then we already knew that. Just another ponzi to support a ponzi of a ponzi. Whoops ...did I really SAY that. Anyway I thought you might enjoy looking at our ponzi compared to other countries ponzi gdp numbers.
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

So what does it all really mean? That is my point ....nothing. Its a world ponzi directed by central banks for financial control. Pay attention to the underlying problem. Keep it simple. Essentially they have allowed the feathers of all the pidgeons to be picked clean. There are no baby pidgeons growing new feathers to replace them. So now they have to bring in the stall tactics to return CONfidence to the featherless pidgeons to try and make them fly. The problem is ...even if the pidgeons are dumb enough (and we are) ....they can't fly. So we are back to watching the slow motion train wreck. Which winds us all the way back to today and the stock market.

Look for dto trades today and of course the miners. Should be a quiet day as traders head for grandmas house so I plan on being aggressive with my miner day trades. gl gang. Oh and be patriotic and grow your feathers. Buying bullion today and every other week for next 6 weeks...gl

IMPORTANT READ IN REGARD TO TAXES

Read the following carefully and be aware:
http://www.dailymarkets.com/stocks/2009/11/18/beware-the-tax-traps-of-commodity-etfs/

what K1 tax does to commodity ETFs/ETNs outside of 401k/IRA ( marginable trading accounts) is, it makes your cost basis CHEAPER than acual buy, so if you actually made $1000 profit, you will be taxed for $2000 or more profit. The same applies to LOSS, if you lost money, due to cheaper cost you might end up paying and taxed since according to cheaper cost average you made money.

Gold: A “Channel Buster” or a Runaway Parabola?

Good article by Clif Droke:

The uptrend in gold is now approaching the moment of truth. The gold price is nearly 5% above the upper boundary of the uptrend channel breakout point and approaching the point where it must either pull back to test support at the channel boundary (previous resistance, new support) or else we’ll have a “channel buster failure” on our hands. In this case the “failure” would be to the upside and would tell us that buying power is simply too strong and persistent for investors to expect a meaningful pullback. The level of hedge fund money chasing gold would be deemed too powerful at the present to afford those who missed the last breakout a convenient entry point.

http://news.goldseek.com/ClifDroke/1258926249.php

NATURAL GAS

Good article on Natural Gas, UNG is garbage , SGY and CHK are good ones:

http://www.marketoracle.co.uk/Article15238.html

As far as oil is concerned, excellent trading day for DTO.

CHARGE

Will maintain updates on this all day as the bull resumes its charge . Gold exploding and testing its 1170. See if that holds. Miners strong. Traded out of AUY EGO and will try to reenter. DTO too dangerous to enter heavy until 80 is hit...

Do not despair this bull has further to run. I just wish we could get some dollar strenthening here,but alas not to be.

UNG starting to perform ......may see brief run.

Enjoy the trades today ....mine will be in the miners. gl

update.....Spin machine out full force today ...I may have been too generous in my assessment of Geithner's tenure. In other words they are going to move fast on him. The wheels are turning much faster than I expected and they need to get a face in there fast to stabilize the pitchfork crowd. Dimons name is front and center. Bye Tim BTW you had a short shelf life when you were tabbed.

http://finance.yahoo.com/news/Dimon-seen-as-successor-to-rb-2946489012.html?x=0&sec=topStories&pos=5&asset=&ccode

Update 2.....Deflation??? One of my partners has a friends daughter in UCLA ....her tuition this year alone is up 42%.....they just raised it 32% what they failed to say it was already up 10% this year. Go ahead and make your deflation arguments but be aware ....in TRUE OVERALL DEFLATION....tuition does not go up 42% in one semester.

WEEKEND SUMMARY

Check the following:

Gold Targeting $1200 by March 2010, $1350 2010.: $1,150 ($1,046) + 10%

Gold soared and silver played catchup. The target for March is $1200 the current price of $1,150 is well ahead of schedule, on face value this either signals some sort of impending currency crisis, or more probably Gold is short-term overbought and due a correction back through $1,100.

Dow Targeting 10,350 to 10,500 During December 2009 :10,437 (9,712) + 7.5% target achieved.

The Dow hit the mid target range of 10,425 and started a 'normal' correction that continues to target 9950 to 9900 (as per last weekends newsletter).

USD Targeting 84 during December 2009 : 75.61 (76.36) - 1%

The U.S. Dollar eeked out a small gain for the week as it continues to attempt to build a base at 75, with the nearest buy trigger remaining at 77.00.

In Summary, Stocks, Gold and Silver in progress or imminent corrections and awaiting Dollar uptrend confirmation.
http://www.marketoracle.co.uk/Article15216.html

We are in a nice uptrend on gold here and the long awaited pullback is not happening. At least not yet...and remember I did say and will reiterate here ..you need to start making purchases of physical gold averaging in to a full position over the next 2 months...This is now the final chance before the parabolic rise in gold begins. In other words you aint seen nuttin yet. Hell's comin and monetization is comin with it.
Tiny Tim got his ass spanked and you can bank on it he is done. Won't happen overnight but his tenure is terminated. He knows it. His response indicated that. Way out of his league but he served his purpose to the bankers.

Health Care....waste of time to report but eventually we will be thrown some kind of bone and in reality the insurance companies will MORE than survive in case any of you were concerned. After all if the insurance companies don't have all the cookies they can steal in the bill then who would be there to finish off those still standing before the 2012 washout. Yes it is important. Its important that they maintain the status of health insurance companies being exempt from antitrust laws....ie. they SHOULD be able to continue having monopoly powers to facilitate the rape of the citizenry.

I also noted that the debate over the collapse in retrospect was being debated this week by journalist on bloomberg....Trillions and Trillions and Trillions 23 trillion if you are counting....some are still saying it was about housing. NO NO NO it wasn't about housing ...that was a tool...it was about leverage......CDS..CDO...DERIVATIVES....WEAPONS OF FINANCIAL MASS DESTRUCTION. Don't get sucked into that kinard.

Keep playing the miners SSRI SLW AUY JAG GG ABX GORO ANV EGO or just buy and hold.

May be getting a dollar trend change be cautious but I like DTO as a trade...I am completely out of DTO as of Friday close.

Lastly Oprah is going off air in two years. Now there is an icon. I know I know...what the hell are you saying. Sorry I like the biatch...so kiss my ass ..you too Joe .....I know you are laughing at me..gl gang

http://seekingalpha.com/article/174516-junior-miners-poised-for-impressive-gains?source=hp_wc

http://finance.yahoo.com/news/Van-Ecks-Gold-Miners-Jr-Makes-ibd-2809541438.html?x=0&.v=1

FOREFATHERS QUOTES IN REGARD TO BANKERS

Fore Fathers Quotes

“I sincerely believe that banking institutions are more dangerous to our liberties than standing armies. The issuing power should be taken from the banks and restored to the people to whom it properly belongs.”
-- Thomas Jefferson

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”
-- James Madison

“The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the PRIME reason for the Revolutionary War.”
-- Benjamin Franklin

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
-- Thomas Jefferson

“I wish it were possible to obtain a single amendment to our Constitution - taking from the federal government their power of borrowing.”
-- Thomas Jefferson

"The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it. I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country. Every man is equally entitled to protection by law; but when the laws undertake to add… artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society -- the farmers, mechanics, and laborers -- who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their government. Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. If Congress has the right under the Constitution to issue paper money, it was given to be used by themselves, not to be delegated to individuals or corporations. It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out."
---- Andrew Jackson

" I have two great enemies, the southern army in front of me, and the financial institutions in the rear. Of the two, the one in my rear is my greatest foe."
---- Abraham Lincoln

and the Clive Owen on bankers:
http://www.guardian.co.uk/film/video/2009/feb/24/clive-owen-the-international