Tuesday, February 16, 2010

I SMELL SMOKE update II

As our printing presses run at high speed without stop the fires are starting in many parts of the worldwide fiat kitchen. Notice the price of gold this morning ...up 28 dollars. An explosive move like that may signal that gold did indeed hold its bottom and is accelerating back to test new highs. Whether that can be stiffled by Central banks again is not really that important.....eventually their hubris will overwhelm them. With certainty our lack of discipline and outright government encouragement to destroy our personal and nations balance sheet will pay a heavy toll in our future. This excerpt states it simply...

No one really understands the U.S. balance sheet, of course, and because we own a printing press, the growing imbalances have yet to bite. Which is why the struggles of Greece are so enlightening. As part of the euro zone it doesn’t own the printing press that makes its currency. And now that it can’t borrow to fund its deficits, it has to decide — very publicly — how to live within its means.

As numerous analysts have concluded, that can only be achieved by cutting every citizen’s income by a painful amount. But the resulting drop in consumer spending will push the government budget even further into the red, requiring more cuts, which will lower spending even more, and so on. You see the problem: Without a printing press a bloated public sector can’t function.

The Greeks aren’t debating how many new soldiers to commit to their many foreign adventures or how to expand entitlements to cover everyone all the time. That’s because they’ve smelled the smoke and seen the flames. Now they’re standing in the front yard, garden-hoses in hand, trying to save some small part of what they’ve spent the past generation building.

http://news.goldseek.com/DollarCollapse/1266303840.php

If you can answer this question honestly then you have insight as to how the entire ponzi was enabled........

http://www.youtube.com/watch?v=p2vGiAyAWvE

update II nice read on gold move today

http://www.bloomberg.com/apps/news?pid=20601012&sid=aPklZOqG7Aas

30 comments:

  1. Oil up, Gold & silver up nicely. SWC,SGY,PBR, SLW and other miners up, NICE!

    palmer

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  2. gold/silver threatening breakout

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  3. Ecot......this is why palmer and I are not using conventional wisdom with t/a it is used to destroy the conviction....then they squeeze.......its the only money game AND it is still controlled..

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  4. Per the posts Red and I made this weekend, you cannot use out of the-box-TA that is available to joe average and expect to win. You will lose, period. Notice the action to the SPY gap as I said it would occur during Friday's action. - Analyze.

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  5. The only chart that counts is FED's chart,heheeeee!

    palmer

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  6. Gold up almost 30,wowww!

    palmer

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  7. Hey all from Athens.
    Yesterday was a big religious celebration here in Greece counting 40 days before Easter time.
    All restaurants and clubs was full of peoples.
    I was realy looking for the crisis , while the tables was full of lobsters .
    Crisis and lobsters aint going together.
    Just my 2 cents.

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  8. Thanks all
    sincerely,
    Joe Average....:)

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  9. TXB,

    How is your day?

    joe

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  10. oh my dear DTO ... you look great at 70 -wolfsonite

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  11. Wolf,

    Crude Oil broke the 75 resistance, be careful!

    palmer

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  12. Thanks palmer. Using tight stops at today's low.

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  13. agree with palmer only bite small on dto and remain nimble until it climbs to 80....safer there....but 95 in the cards this year on oil...i bit off a asmall dto today and it tastes like chit......

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  14. Unless things start to move significantly, I'll close my DTO position at EOD ... maybe also lightening up on my S&P shorts. Little (but some) doubt about S&P going to 1,030 over the coming weeks but guessing Goldman's next intraday move is a biatch --- wolf

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  15. Hey Joe....you need to ask? Stopped out on ZSL..@5.12...ok I was in at 3.98...out of SMN also!!!!! :)The playing field is RIGGED!!!!!!!!!TXB (I gave up about 6K on ZSL!)

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  16. BTW...this is F'ed UP!!!!!!!!!!!! TXB!

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  17. I will be shorting copper though soon...BIG time! TXB

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  18. What's up with a bomb going off at JPM in Greece? Anyone? TexasBlondie...What would be the message?

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  19. Wolf, take a look at this in regard to oil, it was published last week, my own analysis is within range with this guy:
    http://news.goldseek.com/TacticalInvestor/1266159600.php

    joe

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  20. Thanks joe ... good read. looks like they're getting it right. I just closed my DTO position - giving up hope that markets may retrace after a 8% decline ... - wolf

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  21. ... and now waiting for the EOD ramp job. Why not take t he S&P to 1,100 today. Anything's possible these days --- except for a 10% market correction

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  22. End of day trading suggestion?

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  23. investors are getting conditioned to expect a "bail-out after any short-term drop. Lambs starting to see the regulartity of market bailouts will become increasingly willing to buy dips ... until they open the trap door and things fall apart. At which point the lamsb will double and triple down ... ah, the future is bloody red. Just not obvious whose blood they'll decide to draw first. - wolf

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  24. Take small profit in core miners....if you didnt establish a core then you try to add on pullback small......critical to have a core of miners here.

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  25. Ya - our core is still small, got greedy and never pulled the cord last week to increase it. Stupid as it went lower the next day but we got busy. Need to get some GTC orders placed at prices we like and be done with it.

    On another topic, anyone familiar with sprott offering? backed by physical gold? pros cons?

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  26. TA. Works for me but I don't use out-of-the box, line-a-crosses-line-b, TA. I do agree that those that do will fail. But I'm constantly refining techniques, experimenting with different setups (such as the RSI(14) + 45EMA) and blending it with the Fx market which leads equities.

    If there are any objections, meet me out back of the barn :)

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  27. Creepy...no way are you getting me behind the barn.

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