Monday, May 31, 2010


Warning issued immediately by our proprietary intel service. This is only a warning. If we were under immediate attack it would be an instruction to immediately bend over and kiss your azz goodbye. That is a level 5 instruction and only issued if the Global ecological system would be destroyed. Since only a segment of it has been actually destroyed we are issuing an ostrich alert only. So our advice stands after a thorough analysis....continue to watch reality TV..."America's Got Talent" is an excellent diversion and Howie Mandel will keep you entertained. Remember you have credit cards......go out and spend. Remember that advice in a crisis. Well don't forget it. I know today is a day of remembrance.....and I wonder what all of those boys that died in multiple wars would think about our devolution. Oh well can't be too concerned....gotta find some sand today. Gl gang...tomorrow the casino is open.

Sunday, May 30, 2010


We gotza problem boss. That damn top kill didn't work. We need to procede to Plan C. We couldn't get that big lid on it to syphon off the oil for us to keep initially and now those tennis balls and mud didn't stop it. People are pissed sir. Really pissed ...... I mean it. There's crawdads smellin like my lawnmower in their jambalaya. That fat sumbitchin mayor keeps shootin' his mouth off on the news, and the sheeple are listenin'. This looks bad for us and more importantly for the industry. We of course serve at their discretion. I am going to compile a formal list of alternatives to deal with this issue but I think it is going to require real leadership here with decisive action on our part. I know you are angry and want to show how you feel to the people that matter so this will reflect your concern.

I have selected the top three choices for you in alphabetical order and you need to make an executive decision here sir. Time is of the essence. The longer this oil matter is a headline the more we are killing the goose that lays the golden egg.

Really I prefer B but all are great choices and will get us off the beaches fast in the gulf. After all its toast and so is that fat mayor down there. OK sir who do we nuke first.....Iran...North Korea....or Pakistan??? Its time to step up to the plate.

This is satire but don't think a diversion is not top on their list...its the game.

Saturday, May 29, 2010


Thats the nature of a parabolic move. That is what occurs when a market or a stock takes off and heads to the moon. I remember the run up in the silve and gold markets in the late 70s and early 80s. Monster moves that until they reached the froth stage no one would jump on to. When the crash came and subsequent destruction of gold as an "investment"...only then did the the real power step back in to begin a long period of accumulation....using the "media" to downplay the real currency as a "terrible investment" and creating a multi decade period of cheap prices...while they inflated the fiat ponzi on the world creating debt slaves of the populations of Europe and the U.S.. And so it goes.

Once again we are in the beginning of the meteoric rise in gold prices. No one really knows how high it might extend but one thing is for currency has big problems as a store of wealth here. There is going to be loose money supply as the central banks attempt to prevent overall true deflation. It just isn't politically acceptable...and we all know that the central banks and politicians are inextricably linked.

None of you will chase gold once it goes over 1400. Thats just the facts. Silver is still very cheap and many of you will chase it up to over 30. My point is that right now I believe you can still buy. However once they do move....the daily price moves will be enjoy. Enjoy the holiday and don't forget what its

update I TOP KILL FAILS just now on CNN many of you that read this will understand the ramifications of this longer term for our country.....nature has its own timetable as Joe has told you and I agree. To minimize this is

Friday, May 28, 2010


I doubt it, but ya never know... Look for stability in our markets. After all its a big holiday weekend honoring our soldiers that gave their lives to protect our system. Wonder how many are rolling over in their graves. Oh well....its back to work as usual in the ponzi today. Predicting day to day moves in the market is absurd so using T/A may provide you some degree of comfort but as you can tell by my abandonment of it over a year ago other than for an adunct reflects my total lack of confidence. Cycles have more validity and can give you a roadmap for longer term moves. The cycles are all pointing to the 2012 target. Beware however this is only a prediction that Nature can and may alter. If you believe that you can ride this nuclear bomb and get off with perfect timing in time to get into your bunker......good luck.

I still like the physical gold play, but the ponzi has created a complete mockery of most paper investments so beware.

Here is a nice read and enjoy your weekend.....remember those who sacrificed.

It is the paper money created out of thin air that creates the unfair distribution of wealth that is making the middle class fall more behind and the poor more poor. Newly created money and credit in a paper money system benefits those that can access the money first and buy capital goods and real property at one price before the new money circulates and makes all prices go up. Wages also do not keep up with inflation and that creates another squeeze on the middle class.

The man in the street sees his purchasing power decreasing (from his savings and take home pay) and thus his standard of living declining. Capitalism and free enterprise have historically always benefitted the lower and middle income earners when paper money issuance has been curtailed. Most wealthy people became wealthy through hard work and supplying something to society of value. But because of this paper money dislocation, the average wage earner has not kept up.

update I China's intentions with regard to positioning the yuan as a global reserve currency are being increasingly seen (see News below) and can be seen in the news that China wishes to internationalize the yuan by having important commodities such as gold traded in yuan. An official from the People's Bank of China said overnight that China should develop more yuan-denominated gold investment products. Wang Zhenying, deputy director-general of the Department of Financial Market Management at the People's Bank of China Shanghai office, said that China should improve gold investment products and development more of them considering the more than 30 trillion yuan in savings the country has. The official said that China's trading in yuan-denominated gold investment products boosts the internationalization of the currency and the country, stating:

A currency's international status depends on its being accepted in trade and settlement and having certain international commodities denominated in that currency helps China's goal to internationalize the yuan. Gold is a good choice to have yuan trading.

update II

Thursday, May 27, 2010

Velocity Of Money

Speaking of velocity of money which Red is talking about in previous comments and the importance of it, the following was a short essay written by the master hyena JOE last yr:

velocity has become the key driver in the entire world-wide economic crisis, so here is a quick explanation of it. Money responds to the law of supply and demand just as everything else does. If people do not want a particular currency — let's say the British pound — then the value of a pound will fall. Sellers will demand more pounds in trade for their goods or services, and prices in Britain will rise, even if there has been no change in the supply of pounds. On the other hand, if the demand for pounds rises, the value will rise and prices will fall even if there has been no change in the supply of the currency. Velocity is the speed at which money changes hands. When demand for the money is high, money changes hands more slowly, and velocity is low. When demand for the money is low, velocity is high. A key point is that velocity and money supply can act as substitutes for each other. A 10% rise in velocity has the same effect as a 10% rise in money supply. The biggest problem with velocity and money demand is they can turn 180 degrees overnight. If people trust the currency, and suddenly perceive some kind of big threat to their futures, money demand can shoot up. That's exactly what happened last year. The supply of dollars certainly did not go down, but when the real estate crash happened, people became so frightened they were afraid to let go of their dollars. Within a few days, money demand shot up, people stopped spending and held onto their dollars, and this had the same effect as an instantaneous deflation of the money supply. If you don't spend your money, that's the same thing as taking it out of circulation. This can instantly cause the equivalent of a sharp deflation of the money supply by 10 or 20 percent, or more. Also there is a huge difference between Demand pull inflation and stagflation. Stagflation ( stagnation of economic growth + inflation in essentil cost of good & services) which is a direct impact of currency devaluaion. So distinguish between inflation & stagflation and also distinguish between ASSET deflation which is credit contraction vs REAL deflation ( contraction of money supply + drastic reduction in essential cost of goods & services including food, taxes, insurance,,etc).


By the way when Red mentions " Dr. Evil", he is refering to the first tier power ( Rothchild family cabal). GS is the soldier for the first tier.

TRAPPED!! update III

Like rats. Shorts will be either covering or getting destroyed with this caluculated move. The trap was sprung last night at the close. Now the prey will be devoured in a sumptuous meal of sweet breads and fava beans with a bottle of chianti. Hannibal would be proud of this evil slaughter. The only question is will they give them any exit quarter today or just drive the stake through their heart. After all all good investors know that shorts caused the collapse of the market (snicker).

Back to the serious work at hand. What next? Don't ignore that print print print is going to make the least path of resistance UP. Sure its a ponzi, but they aren't choosing the Austrian economics...they are Keynsians. They told you. Remember. "We will do WHATEVER it takes." Watch SSRI SLW SGY GFI EGO ANV. This is it. the big rocket ship move. May be coming soon. I still have a near term target of Gold at 1350 to 1450.

Nice read here too.....


The public is told that each Quantitative Easing round is the last, the one and only. Just as my forecast was for absolute bond contagion two years ago, and my forecast was for frequent unending AIG & Fannie Mae bailouts, and my forecast was for no Exit Strategy with a steady unerring path of 0% policy, next my forecast recently has been for numerous announced formal QE rounds. In fact, they will become a global round robin, as each continent announces theirs, which opens the door politically for a redux on ours. Then ours invites another of theirs like a merry-go-round with exposed knives cutting capital and its engines. Great Britain is on course for a powerful second QE round. The US by virtue of the revived Dollar Swap Facility has its second QE round, although hidden, the first being in the autumn months of 2008. This month we see the first big QE round in Europe. Combine these QE rounds with government stimulus designed to resuscitate the many moribund economies that stand unresponsive, and surely monetary destruction is on a clear path.


Meet Lawrence Summers, head of the White House Council of Economic Advisors. His reputation is of brilliance, but laden with obnoxious and arrogant behavior. He tends to become bored at policy meetings. He is reported to be pushing for another USGovt stimulus package. He must not be reading about the nascent economic recovery that blesses the US nation, endorsed and promoted by USGovt agencies and the President himself, echoed by his Cabinet of extinguished business minds. Perhaps Summers read the recovery reports and was put to sleep. Perhaps the policies seem more like Politburo pablum, certain sedatives. We the People can count on Summers to serve as vigilantly and diligently. Wake up, Larry! There is a crisis to manage!!

update I (Reuters) - Gold prices were modestly higher by late Thursday trade, having risen earlier to a one-week high, supported by the metal's safe-haven appeal as concerns linger over the euro zone credit crisis, but global equity market rallies and the euro's bounce capped the rise.

Spot gold was higher at $1,212.10 an ounce by 2 p.m. EDT (1800 GMT) than $1,209.90 in late New York trade on Wednesday. The precious metal has risen about 3 percent this week, hitting $1,218.35 on Thursday, its highest level since May 19.

Benchmark U.S. gold futures for June delivery on the COMEX division of the New York Mercantile Exchange finished $1.50 lower at $1,211.90 an ounce, after earlier reaching an 8-day high at $1,218.50.

June gold was in range as rollovers out of the contract into later-dated issues dominated COMEX gold trade. First notice day for June futures is May 28. Anyone still holding June contracts on Friday will risk taking delivery of the yellow metal.

Instead, most players were rolling gold futures positions into August contracts, with some moving into December.

COMEX August gold fell 90 cents to end at $1,214.40.

Jonathan Jossen, independent COMEX trader representing several large hedge funds, said he saw gold resuming its upward trend once the rollover period had run its course.

"Since you have players on both sides of the market, it keeps the price in place. So, we're in a tight range, but once the roll is over, I think we're going back up," said Jossen.

He noted that in August's run from last Friday's low at $1,168 to the session high at $1,220.6 a number of fund investors "bought thousands and thousands of call spreads. We have a lot of very bullish trades going on. I'm very bullish."

update II DOOM and BOOM read....get ready for this ....nature is the ultimate "decider" ....not GW

update III SSRI article

Wednesday, May 26, 2010

BUY SIGNAL ??? update II

SGY is kicking butt, it hit 11.27 yesterday and now at 13.40, Joe you hyena, great timing. EUO has been a great buy and hold for the past couple of months.
Watch for higher lows and higher highs to confirm, but if you have been holding reserve then it appears that the miners have found a tradable bottom here. Watch todays action for a tell. The market overall should have some nice moves over the next few months both up and down as we enter a treacherous trading pattern before QE and stimulus ramp us into October November election cycle. This is the game and there will be no holds barred in a worldwide effort to stave off the ultimate solution......DEFLATION. We are in a deflation cycle. We are not in true overall deflation. Stagflation is the current sub cycle and it can be a mthfkr. Unless you understand the difference between true overall deflation and stagflation in the cycle, you can get ran over. Oil is a perfect example. Watch the response in oil prices if they top kill this spill.

Miners are poised for new highs in the next few weeks. It won't be straight to glory as long as the Ponzi is in complete control, but they have little choice in the overall directiion. Besides...who do you think owns most of these large miners. The little guy???? Hehehehhe. Hey they flushed the weak hands. The technicals are fixed. Now lets party. gl gang.

update I... does this sound familiar

I’m emphatically telling you that by selling short you are taking your life into your own hands. If you are bound and determined to fight the Fed, Wall Street, Washington and an angry and tricky bear, you are going to do it all on your own. Leave me out of it. I’m going to be over in the corner picking up gold coins, you can join me if you want to.

update II live feed on BP spill cam....if this top kill doesn't work then ....poof

Tuesday, May 25, 2010


Obama Administration Calls for "Second Stimulus"
As the stock market begins to show signs of the bear, policy makers look to a new $200 billion stimulus package, quantitative easing, or both.
The stock market has been showing signs of the bear for less than a month and already Washington is calling for a second stimulus package.
An article in this morning’s Financial Times says that the Obama administration asked Congress yesterday for a new set of spending measures -- called the “second stimulus” -- to keep the economy from dipping back into a recession. The plea was made by senior economic adviser Lawrence Summers, who asked Congress to pass $200 billion in spending.
His plan calls for more loans made to small businesses, an extension of unemployment insurance, and aid to states to prevent teacher layoffs. The announcement is expected to be met by resistance in Washington as right now Congress is looking for ways to cut spending, not increase it.
While $200 billion may sound like a lot, it may not be enough and it could only calm the market temporarily. Bob Janjuah, a strategist at RBS, released a note yesterday saying that policy makers won't like deflation (the US is basically one poor CPI report away from deflation) and will do everything to inflate the economy. Janjuah calls this the “last real roll of the dice,” which he believes will be a new quantitative easing program by the Fed of $5 trillion to be released sometime in the fourth quarter.
Stimulus, quantitative easing, or both, expect policy makers to make a move soon before the market loses all confidence.


Wellll...maybe. It sure is fugly. As I type the only green miner is GFI. disaster befalls the market. Our beloved ponzi is under a severe attack as GS dumps the market to its next target. Yes....its true..we are in a depression. The illusion created to drive the market up relentlessly is now abandoned. Now the game is to show the public that more extraordinary measures will be needed to "SAVE" the republic...You remember don't you? TARP..STIMULUS I ....all the Keynesian manipulations that create a sound economic foundation. Folks ...WE have been in a DEPRESSION as this blog's title indicates since Dec of 2007. History will record it as such.

Right now we are in something worse than a depression, if that's possible, and that is an unmitigated ecological disaster in the gulf that will change us for decades. The effect of this on social mood and order will play out. In the short and intermediate term this is a negative. In the long term it may have benefits. Perhaps it will force the PTB to pour resources into the the renewable sources of energy for our country. Look for the silver lining albeit that is really hard with this type of disaster.

Don't get in front of this train here, other than quick trade entries. I am bloody from my "core", and have no evidence of a bottom visible to me on them...remember there are more important things to take care of here...prepare....NOW. We have about a year or so before it gets real ugly. Physical gold is your best hold so gl to you.

update I... Wayalat's take... Despite the flash in the pan crash and prevailing Eurozone sovereign debt default gloom and doom, the bottom line is that this is still a stocks bull market with the Dow ONLY down less than 6% from its bull market peak. Therefore the sum of the above analysis concludes towards the stocks bull market under going its most significant and a highly volatile correction since its birth in March 2009 (15 Mar 2009 - Stealth Bull Market Follows Stocks Bear Market Bottom at Dow 6,470 ). This correction could last for several months and may extend all the way into early October, which suggests that the next 2 months are going to see an ABC correction to be followed by a sideways price action between the extremes of 10,900 to 9,800 and so despite continuing wild gyrations I would not be surprised if the Dow is little changed from its last closing price of 10,620 in 2 months time (16th July 2010). Expectations remain for the bull market to resume its trend towards a target of between 12k to 12.5k by late 2010 after the tumultuous trading period over the next few weeks. I have tried to illustrate a more precise Dow forecast projection in the below graph, reality will probably end up being far more volatile.

update II good silver read

update III This will not make the ponzi masters happy....This is over 235 million dollars in the open market.......ouch...

TORONTO, ONTARIO--(Marketwire - May 25, 2010) - Sprott Physical Gold Trust (the "Trust") (TSX:PHY.U)(NYSE:PHYS), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, announced today that it plans a follow-on offering to the public (the "Offering") of 18,000,000 transferable, redeemable units of the Trust ("Units"). As part of the Offering, the Trust expects to grant the underwriters an over-allotment option to purchase up to 2,700,000 additional Units.

The Trust intends to use the net proceeds of this Offering to acquire physical gold bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to this Offering. Under the trust agreement governing the Trust, the net proceeds of the Offering per unit must be not less than 100% of the most recently calculated net asset value per Unit of the Trust prior to, or upon determination of, pricing of the offering.

The Units are listed on the NYSE Arca and the Toronto Stock Exchange under the symbols "PHYS" and "PHY.U", respectively. The Offering will be made simultaneously in the United States and Canada through a syndicate of underwriters led by Morgan Stanley and RBC Capital Markets in the United States and RBC Capital Markets and Morgan Stanley in Canada.

Monday, May 24, 2010


Don't get all doom and gloom just yet. There is still time for our ponzi masters to extend our illusion. CNBS is pedalling as fast as they can on the BS cycle this morning. BP is Pedalling on their BS cycle. No evidence of a squeeze. No direction in the volume of a major turn in the miners. So caution is warranted. Will they destroy the market here ....NO NO. Could they do more damage than a 10% correction? YES. So be careful 950 is still in the cards as a possibility. If we go there the damage will be severe to the illusion of economic recovery. To be honest I think its clear to even our leaders (and certainly to the ponzi masters) that we cannot recover. So I suspect we have to have a reason to have a second stimulus. The only way that happens this year is to reintroduce FEAR. Can we get back to the 1220 area? YES. But this probably is NOT in the cards until the end of this year. This will be pure treachery until the last of this year.
gl all..... now from Julian Phillips

Gold - Very Short-term

Mainly Chinese demand started the week in this 24-hour market, after good institutional, long-term support came in late Friday in the States, to turn the market to the upside after taking the offer of good volumes. Traders saw this and began to close 'shorts' ahead of this month's close of positions and rolling over of Options and Futures positions to the next month. While COMEX is only a cash market, major players have to enter the physical gold market to change gold and silver prices. This was a ‘tidal’ [trend] influence exerting itself over the market.

At this time, of the month big New York banking players press the price down to squeeze the ‘roll-over’ traders, but with major central banks and long-term investment demand coming in to take the gold on offer late on Friday, support interfered with this process. Hence the daily 'wave' action could see a mixture of both influences again. However, the market tone is robust
Silver – Very Short-term

Silver has started the week on a firmer note after last weeks battering. It stands at $17.83, being led up by the gold price. Underlying strong fundamentals are not overriding the influence of the gold price, so keep your eyes on the gold price to gauge the direction of the silver price. Repeat: - Silver will continue to rise faster and fall further than gold, in the days ahead.

Gold Price Drivers

Asia is seeing a huge surge in the size of their middle classes and the accompanying jump in disposable income. This process is far bigger than the West has factored in and promises that these ‘new rich’ will save a considerable portion of their new wealth. In both countries [China & India] new wealth has favored gold as an investment. This is providing constantly growing, enormous support for gold and to a lesser extent silver. It will persist as long as growth in these countries does.

Traditionally we have entered the last week of the Indian gold buying festival/marriage season before the traditional agricultural sectors planting season/monsoon gets underway, then Indian buying from this sector departs the market until mid late August. They used to account for 70% of India's demand, but with the rise of the Middle class this seasonality is leaving the market and has only been seen in one of the last eight years. Indian demand is therefore becoming less seasonal and more investment oriented. So a drop in the price last week gave that market the 'floor' price they like to go in on. These are the reasons why the gold price jumped so much over the weekend.

update I NEW YORK, May 24 (Reuters) - U.S. gold futures ended up for
the first time in five sessions on Monday, as revived concerns
about the sovereign debt crisis in Europe helped restore the
precious metal's flight-to-quality bid. * For the latest detailed report, click on [GOL/]. GOLD * COMEX June GCM0 jumped $17.90, or 1.5 percent, to
settle at $1,194 an ounce on the New York Mercantile Exchange's
COMEX division. * Range from $1,176.80 to $1,196.20. * Gold up recovering from sell-off last week that shaved
over 4 percent off the June contract - traders. * In this environment, gold up despite weaker euro as a
sign of increased risk - James Steel, metals analyst at HSBC. * Euro down broadly, pulling back from gains last week,
after the Spanish central bank's takeover of a savings bank
added to jitters about debt problems in some of the weak euro
zone countries. [USD/] [ID:nLDE64L007] * Sovereign risk crisis in Europe far from over. Should
continue to bode well for gold through summer - Bill O'Neill,
managing partner with LOGIC Advisors. * Money managers increased their net long positions in U.S.
gold futures by more than 2,000 lots in week ended May 18 -
U.S. Commodity Futures Trading Commission. [ID:nN21209753] * India's first-quarter gold demand could match the levels
seen in the first quarter of 2007, when total demand stood at
211 tonnes - senior official of the World Gold Council.

Sunday, May 23, 2010


Happy thoughts today from the venerable Wall Street investment bank ...Goldman Sachs. I need cheering up and so do you.

Happy Sunday,

For the first time this year I am writing to you from my backyard here in Chiswick; the weather is impeccable and I couldn’t think of a place I’d rather be right now. A good cup of Nespresso certainly contributes to my well-being this morning, but more on that later. Here’s my view of Europe right now:

•It’s been another week of good real-economy numbers but with terrible markets.
•Specifically, last week saw another batch of good growth indicators in the Euro-zone, including the PMIs.
•Implementation of the Euro-zone’s mega-package is moving ahead; ECB continues its interventions in the sovereign debt market while policy measures are being rolled out.
•The battle lines for future policy coordination (“economic governance” to the devoted) are being drawn; we are in for a long haul here.
•Germany approved its share of the EUR440bn SPV. Not much risk from here; I think it’ll be operational by the end of June.
•Bank of Spain took over a small mortgage bank which refused the planned merger with a bigger bank.
•The Swiss National Bank published numbers showing continued significant fx interventions in April.
•This coming week we’ll look for further progress in the approval of the EUR440bn SPV.
•On the data side in the Euro-zone, we’ll get (presumably) good confidence indicators from France and Italy.
•The UK is set to publish the second estimate of Q1 GDP; we expect a small further up-revision to 0.3%qoq.
•Switzerland is set to print another strong Kof number on Friday,
•Sweden is expected to print +1.2%qoq non-annualised Q1 GDP growth also Friday.
•In Central Europe, we’ll get the Polish rate decision on Tuesday (no change) and Czech elections on Friday and Saturday.

Saturday, May 22, 2010


We are at the tipping point of the ponzi. Maybe they can extend it another year, maybe not. Maybe the miner play works here, but this is where the rubber meets the caution is advised. We have suffered a severe technical hit to the market here and getting too heavy on your core (as I have) can be very damaging. Having said that I have NOT changed my strategy of accumulating physical gold. Paying off your personal debt here is vital. Preparation with water and power grid alternatives is also vital even more so.. Change your families spending habits NOW...its com'n and com'n fast.

IMO the game changer is the Gulf tragedy. As JD Davidson is screaming.....this is an unmitigated disaster for our Country. Ignoring the ramifications of this is akin to pissing into the wall of a hurricane. Our government and its enabling Ponzi masters are completely paralyzed by this and have NO solution...the damage is already done if they stopped it NOW. So listen to the Limbaugh's propaganda regarding it at your own peril. This is IT. Kaput.Over. Make your preparations now. I will begin closing a significant portion of my own retirement accounts.

Sorry for the doom and gloom but its time to get over the P2 fluff move of the market and accept Immreds scenario....get prepared and get realistic.

Here is a read from goldseek enjoy...and gl gang...

The expansion of central bank money, used to buy bad assets and save companies that should have been allowed to fail, was a frantic response to a looming breakdown of large New York banks and financial institutions. The capital markets were vetoing central bank policies, and the central bank's bureaucrats fought back with fiat money.

The toxic debt has replaced Treasury debt on the FED's balance sheet. With a $1.5 trillion Federal deficit scheduled for this year, the FED has been content to stop inflating and let the private sector fund the deficit. This money could have gone into the private sector. That it did not is an indicator of the fragility of the recovery.

The world's capital markets are vetoing the central bankers' policies and the politicians' policies. This may change. Confidence may return. But the fiasco that is the Greek government has triggered the response of frantic and terrified politicians in the north of Europe. They did the Keynesian thing. They promised a huge bailout. It is clear that they will do it again if required. It will be required.

To call this recovery fragile is facing facts. This week, fear is dominant. What the central bankers and the politicians can do to restore confidence is not clear. Europe has shot its fiscal wad. Another round will send a message: "Bailouts forever." The same dilemma faces Bernanke.

Politicians play kick the can. Commercial bankers will force Bernanke's hand when they start lending. So far, markets say they won't. The experts are saying this recovery is unlikely to last. They are saying that consumers are tapped out. That is bad news for Keynesians. With tapped-out consumers, the Keynesians must recommend another round of huge deficits. I thought $1.5 trillion was a lot of annual deficit. Apparently, I'm too conservative

update I and you think I am a bear....

Friday, May 21, 2010


And the slaughter resumes. Public debt vs GDP is just one more monster on the horizon this morning. Of course government debt is onerous, but public debt in many countries is out of control. In Italy its over 100% of GDP. We are over 50%. Lets see how that contributes to long, recoverable, sustainable, low inflation GROWTH. Thats right....that is the only scenario that gold over the long term will perform poorly in. But let all the pundits have their day in the sunshine saying they don't like gold. Allow them to shout it from every CNBS media forum they can. For that will only keep me buying more physical and hopefull at these levels.

Nothing has changed today. The Gulf has and open wound in its belly that is spewing the poison of its bowel into our pristene life giving ecology that sustains our fisheries that have given us food for hundreds of years. Now they are being destroyed perhaps for decades as poison drifts deep into the life giving marshes of that ecosystem. Good luck manipulating that one on CNBS.

Germany still is grappling with swallowing a grenade for the Eurozone and the Master's bonds. Should be an exciting conclusion....whatever it is. Point is that any solution is temporary and just more can kicking. Maybe they want to kick the can until Katla blows and they can say the volcano did it.

Should be another bloody opening and the march to sub 1000 continues. They are pushing this down as fast as possible. The trap will be set for a squeeze but catching this squeeze is not the play. Be patient and watch for evidence they turn this. I like to gamble which has resulted in pain before and this market will punish you. Green miner day on a red market day is one sign..lets keep sharp.

""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 yourselves, and when you lost, you charged it to the Bank... Beyond question this great and powerful institution has been actively engaged in attempting to influence the elections of the public officers by means of its money...

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. I intend to rout you out, and by the grace of the Eternal God, I will rout you out."

Andrew Jackson on The Second Bank of the United States which was the Central Bank of his day.>

update I May 21 (Bloomberg) -- Gold prices fell, capping the biggest weekly loss in five months, as some investors sold to cover losses in other markets by selling bullion.

Commodity prices sank for the fourth consecutive week, and equities tumbled. German business confidence unexpectedly fell after Europe’s debt crisis rattled financial markets, while growth in Europe’s services and manufacturing industries slowed more than economists forecast, figures showed today. The precious metal rallied to a record a week ago.

“Margin requirements continue to pressure prices lower,” Suki Cooper, a Barclays Capital analyst in London, said in a note. Still, long-term interest “remains robust,” she said.

Gold futures for June delivery dropped $12.50, or 1.1 percent, to $1,176.10 an ounce on the Comex in New York. The metal declined 4.2 percent this week, the first slide in a month and the most since the week that ended on Dec. 11.

“There is a lack of confidence in the euro zone, and people may have to shift portfolio assets to safer vehicles” such as gold, said Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva. “The market is very oversold. Bargain-hunters may come in and support prices.”

‘Accumulating Gold’

The Reuters/Jefferies CRB Index of 19 raw materials yesterday dropped to 247.49, the lowest level since September. Oil futures were down 2.2 percent this week, and the MSCI World Index of shares is headed for a 5 percent weekly drop.

Gold futures rose to a record $1,249.70 on May 14 and are on track for a 10th straight annual gain, the longest winning streak since at least 1920, as investors seek to protect their wealth from Europe’s financial turmoil.

“Long-term-oriented investors are still accumulating gold,” Eugen Weinberg, a Frankfurt-based analyst with Commerzbank AG, wrote in a report yesterday. The recent slump “is probably attributable to profit-taking by speculative investors,” he wrote.

Thursday, May 20, 2010


Looks like another day for the meat grinder today as the PTB try to figure out a way to implement austerity and fiscal responsibility to a socialist natiion....sorry..I am talking about Greece not us....We aren't socialist. We are corporatist. We socialize corporate loss so that we can provide private gains to the bankers. Soon I fear the scenes in Greece and Thailand will be spreading worldwide. This is a systemic breakdown the likes of which we have never seen. It will surely be a bloody day in our markets but then thats the game and we all know that you are playing with fiat if you don't own physical gold. There is a need to beat gold down here and I have no idea yet where they will push it. The article I am putting in today has recommendations on gold stock trading strategies.....but I prefer the physical. My miner core will take a beating and I will hold my final cash for the turn or short day trades....ouch.....lets play its ONLY fiat. Here is an excerpt.

Thanks to Anne Applebaum of the Washington Post for the research on the Greek provisions. Tax collection measures will of course go to a new level in Greece. It is almost a foregone conclusion that people who live in these southern Mediterranean countries have made an art form out of avoiding taxes. To get a somewhat comparable concept about just how bad it might be in Greece, a quote from the Washington Post …

“Athens, after all, is a city in which 364 people told tax authorities they owned

swimming pools – and in which satellite photographs reveal the existence of 16,974

swimming pools”

……Anne Applebaum, Washington Post May 10, 2010

Closing Comments on Greece and the Euro

Since the ECB increased the Euro money supply by $1 trillion in the last two years that is a 12% increase. That would, in theory, cause a 12% increase in consumer prices over the next 3-4 years or 3-4% per year. Add the new money that may be printed for the new bailouts ($300-400 billion over 3 years) and the conclusion is that this is bad but it is not going to make gold go to the moon.
The Euro is now a suspect currency and could lose another 25% versus the U.S. dollar. But it is not going down the drain. Not yet at least. Although if the socialists somehow prevail in Europe I will take this statement back in the future.
Currently investors are selling Euros and buying dollars and gold. The dollar now actually looks better but that will not last for long as our budget deficits will also force money supply increases in the U.S.
The Greeks cannot default or back off from these austere measures because the power structure and the elite of this country are in plenty of debt themselves and they probably are less concerned about how many protestors are arrested or knocked around than they are about declaring personal bankruptcy or having one of their corporate holdings go under. They will make sure the government takes the money and tells the people 14 months annual pay and lucrative bonuses at the expense of the Germans and others is now over. Time to go back to work.
Greece also cannot back out of the Euro because most of their debt is denominated in Euros. If they set up their own currency it would be devalued immediately – which means the debt of these well- to- do people and institutions would automatically increase.
Their will be no “moral hazard” from this bail out because the austerity program being forced on the Greeks and others will be no picnic. There will be pain. Other governments are already making blueprints on how to handle what’s coming to them soon from their own socialist mismanagement


Investing in gold is easy. Buy bullion (coins and bars) with 5-10% of your assets and never look at it again. The price is irrelevant. The long term prevails. It’s insurance. Forget the price in dollars or pounds or Euros – think ounces.

Unfortunately owning mining stocks is going to be a nightmare of volatility.

Gold could easily move up or down $200 within a few weeks. That means a lot of anxious mining stock investors. A solution is to have a 60% core positions in quality companies and allocate the other 40% to a medium term trading strategy.

Gold looks overbought and well priced for now. You have to remember that gold has had a very prolonged run up over the last 5 years - $500 to $1200 is discounting a lot of bankruptcies and a lot of inflation and world problems.

I do not see gold going to the moon right now because “the collapse of the western world” and the monetary system is many years away.

The moon shot in gold is coming but I believe it will come when high inflation rates hit the western world including Brazil, Europe, China and India. Then you will see the moon shot.

A possible collapse of the banking system in the U.S. and EU and other catastrophic events can and will be “papered over” with printed money and computer credits even if it takes trillions of more dollars and Euros. The end result will be a lot of inflation. When this inflation hits the markets then gold will again take off.

I think gold could stay in a $1050 -$1250 range for the foreseeable future. I am 80% in this frame of mind. This means gold mining stocks are going to be cash cows and great investments. If gold takes off above $1250 then all bets are off and something could be coming that no one sees.

For now I am the most nervous bull you can imagine

update I... May 20 (Bloomberg) -- Gold prices fell, capping the longest slump since March, as doubts about the strength of the economic recovery and Europe’s ability to contain a debt crisis prompted investors to sell commodities.

The Reuters/Jefferies CRB Index of 19 commodities fell to the lowest level in more than eight months on mounting concern that Europe’s debt will derail global growth and slash demand for raw materials. Investors also sold bullion to profit from this year’s rally to a record, analysts said.

“Money is just flying out of the commodities right now as part of the general liquidation happening in all the markets, and gold is getting hit along with that,” said Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida. “Anytime there’s uncertainty, everyone goes to cash.”

Gold futures for June delivery dropped $4.50, or 0.4 percent, to $1,188.60 an ounce on the Comex in New York, capping a 3.2 percent slump since May 17. The three straight days of losses marked the longest slump since March 10.

The precious metal declined this week as commodities and stocks slid, prompting speculation that some investors sold bullion to cover losses in other assets. Gold has rallied for nine straight years, more than doubling since 2005, and touched a record $1,249.70 on May 14.

“Gold may have further to correct short term, having pushed to just short of $1,250 last week and been overbought on the charts,” James Moore, an analyst at in London, wrote in a report. Still, “we expect investors who missed the boat the first time may view the current dip as a buying opportunity,” he said.

Gold ‘Megatrend’

Prices have gained more than fivefold since 2000 on surging demand from investors seeking an alternative to currencies or a haven from financial turmoil. The metal is up 8.1 percent in the past two months as buyers sought to protect their wealth amid Europe’s debt crisis.

“The megatrend is still up, but the market needs to go through some minor correction,” said Wallace Ng, the executive director at Fortis Nederland NV in Hong Kong. “We will see more profit-taking on recent gains.”

update II... as if we didn't have enough problems right now.......I guess diversion works....

Wednesday, May 19, 2010


comments blocked for over 2 ours.......will try again


Another message sent to the politicians last night that the torch and pitchfork crowd is growing. Rand Paul's landslide win for the senate was an eye opener. Joe Sestak's win over Arlan in Pennsylvania was another anti-incumbant message. Sestak was a 3 star admiral at one time before he was busted down by Cheney for not supporting the invasion of Iraq. Will this change the careening car on the road to economic destruction? NO NO and triple NO. The die is cast. These are wheels that have been set in motion for many decades and must be fulfilled. The unanswerable question is how it plays out. Will we have a complete breakdown into social chaos as the public convulses with the reality of their lost illusions? Can the technology available maintain enough monitoring of the public to prevent any organized uprising ( I believe it can). Will personal crimes and lawless outbreaks become increasingly prevalent as the need for survival increases and the inability to fund local police worsens? (again I believe yes). Will Greece and Thailand become the norm??? Are they even over?? Or are they just beginning?

I really have a lot of questions today. So perhaps we should deal with what we can deal with....the market. Watch the CLDX for the risk play. My miners have been beaten down..... so you know whats coming. As usual relax and enjoy the game. Lets hope they run this to the fear extreme. I have cash and will wait. On the other hand my core is heavy now so I can accept profit too. Right now there is a discussion on the U.S. not dealing with OUR structural deficits....can you imagine the audacity?? To question our own viability. What is this world coming to. After all we are the world's reserve buy gold and lots of gang

Bottom line .......everything happening right now....means lots of printing as far as the eye can see coming.....they will print until the cost of commodities ie essentials toppels the whole pyramid....ANY pullback in gold is to be bought.

update I..... (Reuters) - Gold slid more than 2 percent on Wednesday, the biggest one-day fall since February, with traders cashing in profits from last week's record high as equity and commodity markets fell on deepening euro zone worries.

After soaring to a record $1,248.95 last week on a rush for safety from European buyers, gold has now shed $40 an ounce in three days as investors sought to realize some profits as other markets spiral lower, a decline worsened by technically based selling as the market crosses key triggers.

Industrial metals fell even harder, in line with further losses for copper and oil, with palladium slumping nearly 8 percent to its lowest since late March as volatility in the euro, Germany's partial short-selling ban and global equity losses all fed fears of worse times to come.

"When we hit all-time highs, everybody thought gold was going to shoot straight up to the moon. Now, a lot of people have decided to take their profits, and the big banks just put in sell orders that hit the market," said COMEX gold floor trader Dominick Cognata.

"I don't think the selling is over yet. I think we still have another $20 on the downside."

Tuesday, May 18, 2010

CLDX ( Biotech Stock) & CNAM updateI

Joe is making serious money from this puppy, it has the same potential as DNDN. CellDex Therapeutics (CLDX):
The biotech will be presenting data from its phase II trial of CDX-110 (PF-04948568), which it's partnered on with Pfizer (PFE), for the treatment of glioblastoma, a really aggressive form of brain cancer.

Expect to see this stock take a major leap if the data are positive. The drug helps to boost a patient’s immune system to fight the cancer, making it a vaccine. This stock has gained plenty of interest since Dendreon (DNDN) received approval for its prostate cancer vaccine Provenge -- the first cancer vaccine to get FDA approval. CellDex is already up 91% year-to-date.

Institutional Investments:

As far as CNAM, if you recall Joe mentioned not to be long at Monday's close. He shorted CNAM at the close yesterday, the hyena is pounding it.

update I....precious metals continue to pose a risk short term here....It would be nice to see the GDX test the lower channel here at around the 49.7 level for a buy...I am still sitting on a good miner core here and waiting for a nice kill zone..and right now patience is key. If you don't have a decent core you have an opportunity to accumulate right now....also SWC and PAL have had nice corrections. Look for fear and panic for your bigger trades....we aren't there yet. I still think they will give us a nice squeeze this week...PANIC FEAR for it.


At least for a few minutes...Let's see what the ponzi brings today but it looks like blue skies and sunshine for now.

Reuters) - Gold eased in Europe on Tuesday as assets seen as higher risk like stocks and the euro rose on hopes euro zone officials are making progress on a package of measures to resolve the euro zone's debt crisis.

Spot gold was bid at $1.213/75 an ounce at 0951 GMT, against $1,223.00 late in New York on Monday. U.S. gold futures for June delivery on the COMEX division of the New York Mercantile Exchange fell $13.70 to $1,214.40 an ounce.

Concerns that the fiscal problems of debt-laden Greece would occur elsewhere in the euro zone drove gold to a record $1,248.95 an ounce last week and knocked other assets. That situation has since reversed, analysts said.

"Gold was definitely in overbought territory, because people were afraid," said Commerzbank analyst Eugen Weinberg. "Fears were fueled by problems surrounding the Greece crisis. (But) at the moment risk appetite is coming back to the market a little."

"The dollar is weaker, and the gold price as well, because they were both seen as safe havens and until recently profited from this status. With the return of risk appetite, it's logical that they are both under pressure."

The markets are awaiting the outcome of a meeting of euro zone finance ministers later on Tuesday, at which the officials aim to iron out wrinkles in a multi-billion euro rescue plan they unveiled a week ago.

The euro rose 0.2 percent against the dollar in early trade, while European shares climbed after a rally on Wall Street. .EU

update I from goldseek today
Gold - Very Short-term

As Greece receives the first chunk of $25 billion rescue package the gold and silver markets have moved onto consolidation mode for the time being. It’s difficult to say how long this will last, particularly because these are structural problems facing the market. The $ Foreign exchange markets are taking the € up over $1.24 again and so the $ and gold are moving together. It is unlikely that professionals will give any coupling of gold to any currency after these moves. With central banks intervening in the currency markets in an attempt to stabilize them, professionals are taking a ‘let’s wait for the next move attitude’, for now. With no confidence returning as yet, the markets are very nervous and volatile. This is no place for widows and orphans!

Once the markets are calm, underlying trends will return to dominate the market flows, together with the usual ebbs and flows as we are now seeing.

Silver – Very Short-term

Silver slipped back under $19,00 and is consolidating today. It’s time to build direction in a consolidation phase, like gold. Silver will remain the shadow of gold and continue to ride in tandem with it. It will continue to rise faster and fall further than gold, going forward. It’s a good time to re-assess before the next move. [Subscribe through].

Gold Price Drivers

The € is looking battered and sad. While a recovery may restore emotion, it won’t restore faith. One danger is that holders of the € may test the resolve of European central banks and unload their Euros. The more they sense central bank support, the more they will unload. Let’s see if this happens? If so, the € will limp away.

Will European central banks resort to selling gold? [See above – newsletter features]

In the Far East both Indians and the Chinese watch for the right entry points, not the goings on in the West. Indians are hoping for a fall in prices, but the Chinese are only pausing at the moment.

We note that talk of a Persian Gulf single currency has returned to the horizon. If so this will create $ turmoil!

Monday, May 17, 2010


Market reversal in overnight futures as one has grown to expect. The greatest "game" ever. Just understand the house and you have half a chance to survive this. Will they do the big "squeeze" today? Who knows. But you know its coming. I for one will not be playing anything heavy that I can't hold onto when my bet goes short term against me and I suggest you think about that. Can you hold onto a position if it drops 50% with confidence that it will return green in a reasonable time frame? You must have that confidence if you are swing trading.

We are in treacherous times. Perhaps the most treacherous trading market EVER. Be prepared for your positions to be tested to maximum pain. If you understand the underlying economics then you can survive this onslaught. Be disciplined and use no emotions. They will have to continue to print money like there is no tomorrow. We are in a illusion of recovery.........its all they have.Kick the can down the road and hope. Hope that the torch and pitchfork crowd doesn't form. It's the game.

Here is a nice find on gold could be a tell on the Comex positions.

To conclude this first section of this special Got Gold Report for gold futures, we think that it is now apparent that at least on the COMEX bourse in New York, the very largest of the paper gold sellers – the exemption-using bullion banks among them - have now become more isolated as “the sellers of last resort” for gold futures. We are interested to learn that at this particular moment in time the big bank sellers are not joined by the “other commercials,” the swap dealers, when they were indeed joined by them just ahead of the last really good correction for gold.

That doesn’t mean that gold can’t correct right here and right now, it certainly can, but if it does the swap dealers are now less well positioned for it. And, it also means that at least as of Tuesday, there was apparently quite a bit less “horsepower” on the sell side for gold.

update I must read ...thnx tom They really only have one shot here...and that is the top kill, Watch for it and pay attention, be aware what this all means to ALL OF US and I hope I explained things well enough to be understood by anyone. The top kill shot should be coming soon...I soon as possible....if you hear it failed...or if the well blew itself apart before they can do it...get the fuck ready, because Pandora's box is about to open wide and the closest thing to the SHTF for real that we will likely see in our lifetimes is about come charging out at full rampant force...and it's a very large and deep box....

Godspeed people.......

update II Nice Wayalat roadmap for DOW this year ....remember ...these are predictions on DOW...not PMs

updateIII repost of some entry exit trades from Analyze
Here's a new batch of miner ponies with entry and exit targets with relevant percentages on the moves. I already did the CANSLIM and accumlation analysis as well to ensure they are ponzi-favored. The final one in the list is mostly targeted to Joe, since he seems to like that type of position. Here we go:

BVN - hope for a pullback to 34.9 and swing to 38 for a 19% winner. If it breaks out over 42.28 it has a swing target of 50 for 18.3% winner as alternate strategy.

GG - entry 44.37, exit 47.3 to game its consolidation range. If it breaks out from 48.7 I would exit at 51 previous high, should be 10% win on the more conservative 44.37-47.3 swing.

GFI - 13.5 entry, 14.9 exit, 10%

NG - game the consolidation range 7.8 - 9, 15.4% swing.

EGO - scalp the consolidation range 16.6 - 18.1 for 9% moves, has a larger unfulfilled 19.04 target.

HMY - play the 9.5-10.7 range, 12.6%

NGD - it should have a technical breakdown if the miners weaken, if it does pick it up at 5.36 and exit at 6.25, 16.6% move.

SVM - play the 7.8 to 9 range, 15.4%

NEM - play the 55 - 60 range, 9%

VGZ - only for the daring, but I believe this has a 2.24 - 2.81 move in it, 25% swing. Avoid this one unless you are used to playing high volatility, low-dollar stocks. This does have high accumulation going on, so it is not a crap play, just takes trading skill to pull it off.

Obviously in many of these we are looking for some level of pullback for entry. BTW if there is another leg down in SPX (not guaranteed), expect a bottom and hard reversal up in the 1091-1100 support zone. So there you have it, do your own DD.

Sunday, May 16, 2010


Incredible series on HBO that concluded tonight in a powerful finale showing the return of the surviving soldiers to their homes. There are now over 1000 world war two veterans dying a day. Their sacrifice has been lost in a world full of greed. They died and sacrificed to protect our freedom and constitution. I hope that somehow our leaders and our country survives this. Joe believes it will. I am not as sanguine. Once the constitution becomes convenient then the foundation of the nation becomes quicksand. If you missed the HBO series....I encourage you to watch it. The conclusion is remarkably well done.

I will have my morning coffee with my friend Bob. Bob was on Iwo Jima at the age of 16...He carried a flame thrower. He is growing old now but I have learned much over the years from Bob about his generation. Bob became a history teacher, and married with 3 children. I told him what was coming several years ago. He cannot believe what his sacrifice has become. He knew Chesty Puller and John Basilone. God Bless him.

Lest he never be forgotten.....

John Basilone (November 4, 1916 – February 19, 1945) was a United States Marine Gunnery Sergeant who received the Medal of Honor for his actions at the Battle of Guadalcanal during World War II. He was the only enlisted Marine in World War II to receive both the Medal of Honor and the Navy Cross.

He served three years in the United States Army with duty in the Philippines before joining the Marine Corps in 1940. After attending training, Basilone deployed to Guantanamo Bay, Cuba, the Solomon Islands and eventually to Guadalcanal where he held off 3,000 Japanese troops after his 15-member unit was reduced to two men. He was killed in action on the first day of the Battle of Iwo Jima, after which he was posthumously honored with the Navy Cross. He has received many honors including being the namesake for streets, military locations and a United States Navy destroyer.

War bond tour and marriage
After receiving the Medal of Honor, he returned to the United States and participated in a war bond tour. His arrival was highly publicized and his hometown held a parade in his honor when he returned. The homecoming parade occurred on Sunday, September 19, 1943 and drew a huge crowd with thousands of people, including politicians, celebrities, and the national press. The parade made national news in Life magazine and Fox Movietone News.[5] After the parade, he toured the country raising money for the war effort and achieved celebrity status. Although he appreciated the admiration, he felt out of place and requested to return to the operating forces fighting the war. The Marine Corps denied his request and told him he was needed more on the home front. He was offered a commission, but he turned it down and later offered an assignment as an instructor but refused it as well. He requested again to return to the war and this time the request was approved. He left for Camp Pendleton, California for training on December 27, 1943. While stationed at Camp Pendleton, he met his future wife Lena Mae Riggi, a Sergeant in the Marine Corps Women's Reserve. They were married at St. Mary's Star of the Sea Church in Oceanside on July 10, 1944, with a reception at the Carlsbad Hotel. They honeymooned at her parents' onion farm in Portland.[6] He requested a return to the fighting in the Pacific theatre.[6]

[edit] Iwo Jima
After his request to return to the fleet was approved, he was assigned to Charlie Company, 1st Battalion, 27th Marine Regiment, 5th Marine Division during the invasion of Iwo Jima. On February 19, 1945 he was serving as a machine-gun section leader in action against Japanese forces on Red Beach II. During the battle, the Japanese concentrated their fire at the incoming Americans from heavily fortified blockhouses staged throughout the island. With his unit pinned down, Basilone made his way around the side of the Japanese positions until he was directly on top of the blockhouse. He then attacked with grenades and demolitions, single handedly destroying the entire strongpoint and its defending garrison. He then fought his way toward Airfield Number 1 and aided an American tank that was trapped in an enemy mine field under intense mortar and artillery barrages. He guided the heavy vehicle over the hazardous terrain to safety, despite heavy weapons fire from the Japanese. As he moved along the edge of the airfield, he was killed by Japanese mortar shrapnel. His actions helped Marines penetrate the Japanese defense and get off the landing beach during the critical early stages of the invasion. For his valor during the battle of Iwo Jima, he was posthumously approved for the Marine Corps' second highest decoration for bravery, the Navy Cross.[7]

His body was interred in Arlington National Cemetery in Arlington, Virginia and his grave can be found in Section 12, Grave 384, grid Y/Z 23.5.[8] Lena M Basilone died June 11, 1999 at the age of 86 and is buried at Riverside National Cemetery.[9] Lena's obituary notes that she never remarried.[


Just a summary of my position today provided by a copycat (kidding). Saves me a lot of time for restating.

The following are some snippets from the most recent issue of the International Forecaster. For the full 38 page issue, please see subscription information below.


Wednesday was another wild day to the upside in precious metals. Spot gold rose $22.80 to $1,242.70, as June rose $18.00. Spot silver rose $0.37 to $19.64 and June rose $0.23. As you can see after the Comex spot close the shorts went to work on both metals again. It is interesting that the CME traded 241,207 contracts Thus, the late closes of the outside months are becoming more important due to their increasing volume. The mainstream analysts, economists, pundits and the media, who are wrong 70% of the time, are falling all over themselves trying to explain why the PM’s are all hitting new highs. They most often blame the sovereign debt problem and what has been going on in the EU. Throwing $1 trillion, of which the US will supply $65 billion via the IMF, only addresses the public debt and does not consider the private debt. As we know from history throwing money at debt, or to solve a financial or economic problem never works. Worldwide public and private debt is staggering. What these intellectually dishonest characters won’t discuss is the gold and silver suppression scheme that has been underway illegally from 1967-1988, and the legal suppression since 1988. That will be solved once JPMorgan Chase goes to trial either civilly or criminally in the near future. We see little hope of criminal proceedings against members of the Illuminati, but civil court is actually much better due to wide latitude in discovery. No matter what happens no one from Morgan will go to jail, so the civil approach is better along with billions in fines. This is the story all these characters are trying to hide. Let’s hope we can get swift justice and a swift resolution. Morgan in the meantime is running around in circles trying to cover its silver shorts. These characters just happen to be blind to the fact that gold and silver have been in a bull market since June 2000, and billions of dollars have already been made. Just ask our subscribers. Gold and silver are going to continue to trade sharply higher in the years to come. None of these characters will deal with the truth and reality because they are paid not too.

Gold open interest rose 6,636 contracts to 583,954. We should reach $1,300 over the next several days. The gold and silver Comex and share shorts are getting buried, and that is going to continue. Gold is now recognized as a currency again. What is paramount is that the US government’s suppression of the gold and silver markets is coming to an end. Secondly, the world, except for perhaps 10% of its inhabitants, are not in gold and they all are potential buyers. The XAU rose 1.81 to 186.08 and the HUI rose 3.39 to 491.76.

The Austrian Mint sold more gold in two weeks from April 26 than in the entire first quarter because of soaring European demand. German and Swiss are major buyers.

The Swiss refinery Argor-Heraeus says demand for small gold bars and minted products has jumped 10-fold since the beginning of the year.

$5,000 invested in gold in 1913, the year the Federal Reserve Act was passed, is now worth $287,500.

The Dow rose 148 to 10,896; S&P rose 147 and Nasdaq 298 Dow points. The yen fell .0040 to $.9317; the euro fell .0067 to $1,2634; the pound fell .0132 to $1.4814; the Swiss franc fell .0006 to $1.1093; the Canadian dollar fell .0009 to $.9806 and the USDX rose .41 to 84.88. The 10-year T-note was 3.57%.

Oil fell $0.85 to $75.52; gas rose $0.02 to $2.21 and natural gas rose $0.15 to $2.28. Copper fell $0.01 to $3.18; platinum rose $39.00 to $1,709.80; palladium rose $10.55 to $542.75 and the CRB rose 1.87 to 266.82.

Thursday was a day of rest for gold and silver. Spot gold fell $13.90 to $1,228.80, as June fell $9.60. spot silver fell $0.17 to $19.47, as June fell $0.16. Gold in euros hit another record high at 988.92, as investors fled from the euro. We want to remind you that less than 1% of Americans own gold and silver or the shares, so we have some upside. Just remember be patient and stay long. Gold open interest rose 4,602 to 588,106, as silver OI rose 308 to 123,049. The XAU fell 3.30 to 182.76, as the HUI lost 6.89 to 484.86. Do not forget gold is the antidote to fiat fraud. Gold sales at central banks are at their lowest levels in 20 years.

Friday saw an attack on gold and silver. Gold had been up to almost $1,250.00 but the spot close was off $1.40 to $1,227.40, June rose $3.30, a strong close. Spot silver fell $0.27 to $19.20, as June fell $0.15. Gold in pound sterling hit a new high at 852.02; in Swiss francs at 1.388.66 and in euros at 989.34. the gold low was $1,217. As we predicted $1,218 would be tested to fill the gap and so it was. Gold open interest rose 10,952 contracts to 599,058, as silver OI rose 3,997 to 127,046, as the cartel shorted even more. In gold the COT commercials increased their net shorts by 11,058. They are in deep trouble. The Illuminists’ nightmare continues. The HUI rose 3.50 to 487.43, as the XAU rose 2.04 to 183.80.


Saturday, May 15, 2010


After a week of volatility even the most ardent trader needs a rest. Now thats what I call a "game". Yes gang the game is on as predicted by Joe late last year. 2010 is the year of Flubber (YOF).. This year will be your opportunity to make money or lose it depending on your ability to assume risk. You are going to be pushed to the extremes on trades in both directions. Its the nature of the algo bot age. They can determine maximum pain for a billion trades in a nanosecond. You just have to be aware that is the plan. The dogs have been released in the YOF.

The ponzi game will sustain this year and maybe next year. The K winter is coming and it will not be denied. Timing will be plus or minus 6mo....2012- 2014...and it WILL be ugly. Wealth will be destroyed in numbers that will be staggering during the deflationary period. The debt structure must be flushed. If you have a store of wealth in PMs you will be able to accumulate great assets if you have patience (provided the PTB don't burn the earth to glass).

The most important aspects of this coming slaughter are to be the welfare of your family and loved ones. You cannot create fear in them. You are the one they look to for leadership and guidance. If you read this then you must realize that doom and gloom is negative only if you allow it to be. I view this as an awareness. Educating yourself about the coming attractions only separates you from the 99% of sheeple that are being fattened up for mutton. I am more positive now than ever on the future.....This is a time for those "aware" to prepare. Make your home energy efficient NOW. Coupon shop NOW. Get rid of debt NOW. Make your family learn to conserve. Make a game out of it for the kids and explain its importance in the future. We seem to live only for today and not plan for tomorrow. The PTB plan for generations. THAT is how you accumulate wealth and security. Have fun this weekend. More games next week. gl gang.

Friday, May 14, 2010


Many comments have been made on this site and others regarding the Ponzi's limitations. I have always felt that there would be a cliff at which the Ponzi would one day go off of. If you wish..... a Black Swan. As we all go to work each day consuming massive quantities of fossil fuel energy, few ever really consider just what goes into maintaining this incredible supply of this cheap commodity. We are told that essentially as Americans it is our right to use as much oil as is our right. Our right as Americans to create false wars and conflicts to maintain this vast thirst for oil a god given right. After all 800 military bases in 125 countries makes us the largest empire in history. Never mind we are spending over 100 times the ammount China (our feared nemesis) spends on "defense". Did you ever stop and think? Even for a moment? Why is it necessary to have 800 military basis in 125 countries for DEFENSE? Defense of WHAT? Our shores? No.....sorry.....doesn't quite add up. Especially when you consider that we can drop a Cruise missile on the doorstep of any new Hitler. We do this to maintain a stable supply of cheap resources from developing countries. They know the game. They are there watching our troops and bases in their countries. They know our multinationals aren"t there to build churches and hospitals. They know the dictatorships that we imposed in their countries living in oppulent palaces aren't there to help them from their poverty. The game is oil and resources. This is what drives the economic engine. It is the "game". Right now as we take for granted our "affordable" oil, a catastrophe is unfolding in the gulf. All the kings horses and all the kings men cannot put this back in. Sooner or later the impact of this man vs Nature event will unfold. I believe its a potential Black Swan.....certainly a very Brown one. Enjoy your day and gl.

update I Theres money in them thar hills

update II (Reuters) - Gold ended flat on Friday after an early rally to record highs fizzled, but the metal posted its fourth straight weekly increase as jittery investors fretted that a $1 trillion European rescue could be too late to contain debt contagion.

Bullion prices jumped early in choppy trade, then dropped. The slump deepened as investors sold gold to cover losses in sliding equities, commodities and crude oil markets, traders said.

"There is some margin-related selling in gold triggered by losses in other assets. And the technical indicators are very high, it's not surprising that we would have consolidation today," said Bill O'Neill, partner of New Jersey-based commodities firm LOGIC Advisors.

O'Neill cited a rise in the relative strength index for gold's weakness. Gold's RSI rose to above 70 this week -- considered an overbought signal by technical analysts.

Sales of European and U.S. coins, bars and exchange-traded gold funds surged this week, and open interest in COMEX futures rose to an all-time high on Thursday.

Spot gold fell as much as 2.4 percent from its earlier record high of $1,248.95 an ounce, and was at $1,230.05 an ounce at 3:59 p.m. EDT (1959 GMT), down slightly from $1,231.83 late in New York on Wednesday.

U.S. gold futures for June delivery on the COMEX division of the New York Mercantile Exchange settled down $1.40 at $1,227.80.

Gold investors cashed in gains as U.S. stock markets fell more than 2 percent, oil tumbled 4 percent and base metals fell sharply. .N

"There are losses being made in various places, and potentially there is a need to lock in some profits to offset some of the losses being created in commodities generally... and in other sectors," said Saxo Bank senior manager Ole Hansen.

"When you start to see other sectors start to give way as we've seen here, that will have a natural spillover effect."

update III complements of chuck

Thursday, May 13, 2010


Of course this is wishful thinking on my part. No one can predict the algobot killer machine. I can predict the ponzi is alive and well and the lights are still on. Jim Willie has a nice article. But the second link is a kicker from yesterday I left up.

The events of the last 12 to 18 months have been as shocking as they have been instrumental in reshaping the global financial structures. In fact, the events have pointed out the fracture of the global monetary system and banking systems. The steady stream of events is accelerating in scope and intensity. The fractures are finally being recognized. The key to understanding the continuation of disruptive and chaotic events is the realization that nothing has been fixed, no remedy put in place, no reform agreed upon, no liquidation of impaired bank assets completed, and no work toward a more stable system. Instead, the old system has been subjected to a patchwork of futile efforts and initiatives that speak more of bilking the system, redeeming impaired assets, and channeling funds to those most responsible for the fractures. Instead of seeking solutions, the banking and political leaders revert to what has been their shelf of failed tools, since they know nothing else, stuck in the Keynesian box, painted into the 0% rate corner. The costs are horrific when solutions are not pursued. The beneficiary is gold, since all wayward policy costs money, which must be created, worsening the debasement. Gold rises with new money creation gone amok. $Trillion rescue packages have become the norm, in a cavalcade of debased currencies. Historical highs come for gold and silver, with gold fighting the political battles, but silver riding through the gates with high speed and raised dust. Central banks own no silver, and industry consumes silver

If you didn't see this one yesterday.....

Update I ..if I beg maybe they will listen and tank this pig tomorrow. We have some nice gaps to fill in my favorites. Still have a decent core here but would love to see those gaps fill to "Reload". Patience here. More blood to come?????

(Reuters) - Gold prices were nearly flat on Thursday as the market took a breather after the metal raced to two consecutive record highs, but economic jitters over a $1 trillion European rescue plan supported prices.

Even with Thursday's market pause, gold's rally in dollar terms now stands at 7 percent from a week ago. Worries about the European rescue plan also sent gold priced in euros and sterling to record highs.

Silver and platinum group metals were also unchanged as choppy currency and equity markets showed signs of stabilizing. U.S. stock markets steadied after volatility soared in the last several sessions.

Michael Daly, gold specialist at Chicago-based futures broker PFGBest, said overnight profit-taking weighed on gold. But, he added, economic uncertainties and the upcoming Indian festival of Akshaya Tritiya, a major gold-buying event, should support prices.

"There is a lot of uneasiness with the European Union and investors are weary right now. If central banks continue to print money at this rate, there will be inflation to follow and I think people are protecting their wealth" by buying gold, Daly said.

Spot gold was at $1,232.75 an ounce at 2:58 p.m. EDT (1858 GMT), nearly flat from $1,236.35 an ounce late in New York on Wednesday, when it hit a record $1,248.15 on fears that the massive European rescue package will not solve the euro zone debt crisis.

U.S. gold futures settled down $13.90, or 1.1 percent, at $1,229.20 an ounce.

Demand for both physical and paper gold investment was strong, with sales of coins, bars and exchange-traded gold funds soaring, and open interest in U.S. futures inching closer to a record high.

Wednesday, May 12, 2010

Gold Behaving As Currency update II

Joe told us awhile back that it's just a matter of time before Gold behaves as currency and not just a commodity, here we are boys and girls.
Anyone paying attention to the stock markets and the precious metals markets will tell you that the correlation that we've grown accustomed to has flip-flopped. Previously, precious metals and the stock markets traded in unison; a 2% up day for the stock markets meant 2% up in gold and silver. A drop in the stock markets meant a drop in the metals markets. However, this is no longer true, as precious metals have broken free!Correlations between a commodity and an index fund may not seem to be that important. What's the big deal if the two rise and fall together, right? Actually, the correlation between silver, gold and the stock market is hugely important. If the stock market and precious metals were to rise and fall together, it implies that the market sees them as equals; that is, when the economics improve for one, they improve equally for the other. This type of correlation between precious metals and the stock markets has existed for a very long time. When stocks were up, precious metals were up. When stocks were down, precious metals were down. The market enjoyed each investment equally. They were a Jekyll and Hyde of sorts. The lost correlation between the stock markets and precious metals is nothing more than a bullish signal for metals. Since the stock markets and precious metals appear to be uncorrelated, and precious metals have been rising as stocks fall, it signals that the market now views them differently. In addition, precious metals have lost their correlation to the US dollar, and precious metals are now rising even when the dollar rises. No longer are precious metals tied to any one currency. Instead they are their own currencies! After breaking their correlation with the major markets, silver and gold are now free to trade to the positive, regardless of what happens in the stock markets. This is immense for precious metals investors, since their wealth is no longer tied to the status of the economy. In fact, precious metals, as we saw with the 1000 point free fall in the Dow Jones Industrial Average on May 6th, are actually gaining value when stocks fall. Therefore, with the correlation broken, precious metals investors no longer have to fear deflation, as investors want precious metals in any climate. Again, they are the new currency of choice. The non-correlated price trends also throw the idea that precious metals are bubbling right out the window. History shows us that when one industry is in a bubble, so are so many others, albeit in slightly smaller, more manageable bubbles. The only way pessimists could declare there to be a bubble in gold and silver is if the rest of the markets were rising in tandem, but they aren't, even with trillions of dollars spent in economic “stimulus.” Gold and silver aren't rising in price because investors are pricing them way out of their league; instead investors are noticing what so many of us already have—gold and silver are currencies.

update I Can't help but believe I get a pullback to reload some profit I took today..but then again....this is a breakout move so don't dump all your core and overtrade as Red warned of and my friend the "oil trader" is guilty of....but ya can't go up forever ......can ya????

(Reuters) - Gold climbed to a second successive record high on Wednesday as investors bet that a proposed $1 trillion European rescue will either fail to prevent a worsening euro zone crisis or will stoke inflation.

Clocking its biggest two-day gain since November, gold prices rose 1 percent to near $1,250 an ounce on Wednesday despite a limited recovery in risk appetite that lifted U.S. stock markets and boosted platinum and palladium by more than 2 percent, suggesting that other factors were extending gold's week-long rally initially triggered by a flight to safety.

Demand for gold was evident across the spectrum, with retail sales of coins and bullion surging, exchange-traded gold funds drawing a net flow of over $2.3 billion and open interest in U.S. futures nearing a record amid the European crisis and after last Thursday's tumult in U.S. stock markets.

For most traders, the focus remained squarely on Europe's efforts to stop the Greek debt crisis from spreading to other countries, although some also said that options-related buying and technical momentum had contributed to the gains.

"There is still a lack of confidence in the European community whether or not this is going to halt the euro's decline because this is nothing more than an experiment, and people are not sure if anything will work," Bruce Dunn, vice president of trading at New Jersey-based Auramet Trading.

Spot gold hit $1,248.15 an ounce, a gain of nearly 20 percent since early February. It was at $1,245.25 an ounce at 2:22 p.m. (1822 GMT) from $1,232.05 late in New York on Tuesday. Prices have risen 3.5 percent in two days.

U.S. gold futures settled up $22.80, or 1.9 percent, at $1,243.10 an ounce.

Update II.. This is an astounding read.....absolutely not to be taken as fact but to be read as a more than just a "tin foil" read.

Tuesday, May 11, 2010


As I was helping Captain Ben rearrange the deck chairs on the Titanic this morning one of the passengers named Demetrius was quite concerned about the water washing into their lower berth cabin. I was quite impressed by the Captains calm demeanor and reassuring tone when he allayed all the passengers fears and handed them a stack of dry towels to clean it up.

We are playing a similar game now. After hitting our iceberg in 2008 our ship is floating on the captain's hot air. In this case in the form of fiat currency...the USD....due to its unique stance as the world's reserve currency. And oh how we are abusing that status.

Lets not dwell on the moral hazaard that is creating (and it is huge), lets look at it from the effect of how we must react. We cannot stop them, that is a certainty. But look at today, it is telling us everything. The dollar is strengthening as money scurries for near term safety. But look what is exploding in the face of a strenghtening dollar. Thats right "mellow yellow". The big Kahuna. GOLD. Sorry for the promo. I have owned gold for years but never quite understood the game until this ponzi unwound two years ago. Fiat has NO value in the the corrupt ponzi world. Now as Joe mentioned MANYtimes last year there would come a day where the dollar would strengthen and gold would strengthen with it. That would be the "signal" the "gamebreaker". Well we are there gang. This game is coming unravelled. Hope that you have listened and own your physical. There is a worldwide scramble for it now and as the comex ponzi blows will wake up with gold up 1000 dollars an ounce in one day.

Right now its starting and hopefully this game plays for another year while the ship sinks slowly. Don't count on it.

For now we are assuming that "growth" continues in the economy....hehehe....and we are focussed on SWC PAL SSRI SLW. Don't forget my gold miners EGO AUY gang

update I Reuters) - Gold jumped nearly 3 percent to an all-time high at above $1,230 an ounce on Tuesday, as traders sought safety after a $1 trillion European rescue failed to put to rest fears of euro zone debt contagion.

After trading modestly higher in choppy trade earlier in the day, spot bullion prices kicked above their previous $1,226.10 peak set on December 3 after U.S. stock markets turned negative at mid-afternoon, resuming a safe-haven rally that had threatened to stall with Monday's brief revival of risk appetite.

Silver also rose 4.5 percent to a five-month peak, posting its biggest one-day percentage gain in six months, while platinum and palladium were little changed.

Having broken down the previous high, analysts began looking for the next target.

"We think there is an upside risk for gold and it has the potential to go to $1,600 (an ounce) within a year or so," said Bart Melek, global commodity strategist at BMO Capital Markets.

"We think there are continued sovereign risk issues, even after the European debt bailout. Buying gold or precious metals generally as a hedge will continue until this environment stabilizes somewhat."

After touching a record $1,233.65 an ounce, spot gold rose $30.85 or 2.6 percent to $1,232.75 an ounce at 3:30 p.m. EDT (1912 GMT), against $1,201.90 late on Monday.

U.S. gold futures for June delivery on the COMEX division of the NYMEX was up more than $30 at above $1,230 an ounce. Earlier, June settled at $1,220.30 an ounce.

Gold looked primed for a run at the previous record after a rush of retail buying last week, and its very limited dip on Monday, when the S&P 500 index rallied 4 percent as risk markets cheered the $1 trillion emergency aid package.

Monday, May 10, 2010


And why shouldn't it? After all its been scripted. The wash rinse repeat cycle of the stock market dance is alive and well today. It was choreographed down to the last move. You have to listen to what the game is telling you. Violent down moves intraday only to recover quickly by 600 points. Another hard down day followup. The pundits like Kudlow and Kramer screaming that the sky is falling. Put up constant pictures of riots on the streets in Greece as a backdrop while you watch the market collapse.

My bear juices should have been flowing like the Icelandic volcano.....but they weren't. We have all seen this movie one too many times. The charts had broken down. EW was wavering on the abyss....but the control of the market was laying in wait with a nasty bear trap for the pitchfork crowd that dared to step into their trap.

Was this a trap? Would they have stooped to dropping the market one thousand points in the blink of an eye to add fear into the equation? Look how desperate the Eurozone was. They go from NO response to a ONE TRILLION dollar fluff package. I don't know about you........but I like it. Its game on. Its how GS makes money. Its how traders make money. And its how you and I make money. This is exactly what you want to see. Its why Joe was laughing his ass off when the market was droppping off a cliff thursday. He knew what was coming. This is the game. Either enjoy it and understand it or pick your marbles up and go home. You have no business playing if you don't understand the rules. You don't make them. They do. And you better not cry about it. THEY DONT FRKN CARE>... Lets make money. Gold and silver are my game.

update I focus on swc alu slw ssri pal today and the next week

update II this is why gold is about to patient ...this is a disaster

May 10 (Bloomberg) -- The European Central Bank said it will buy government and private bonds as part of an historic bid to stave off a sovereign-debt crisis that threatens to destroy the euro.

The ECB wants “to address severe tensions in certain market segments which are hampering the monetary policy transmission mechanism and thereby the effective conduct of monetary policy,” the central bank said in a statement at 3:15 a.m. in Frankfurt. The announcement came less than an hour after European finance ministers unveiled a loan package worth almost $1 trillion to staunch the market turmoil.

Resorting to what some economists have called the “nuclear option,” the ECB may open itself to the charge it’s undermining its independence by helping governments plug budget holes. Four days ago, ECB President Jean-Claude Trichet said bond purchases hadn’t been discussed when members of the bank’s 22-member Governing Council met to set interest rates in Lisbon.

By deciding to “go in and buy sovereign and corporate debt, they crossed a line,” said David Kotok, chairman and chief investment officer at Cumberland Advisors Inc., which manages about $1.4 billion in Vineland, New Jersey. “The line between fiscal and monetary policy gets blurred.”

The euro jumped to $1.2982 at 8:30 a.m. in Frankfurt from $1.2755 at the end of last week.

update III........ NEW YORK, May 10 (Reuters) - U.S. gold futures ended lower
on Monday, but well off initial lows, as safe-haven buying
decreased after a $1 trillion global emergency rescue package
eased contagion fears. * For the latest detailed report, click on [GOL/]. GOLD * COMEX June GCM0 settles down $9.60 at $1,200.80 an
ounce. * Ranged from $1,184.40 to $1,207 * Gold holding up well in spite of sharp return of risk
appetite amid rallies of global equity markets - traders. * Short-covering of euro, rush of funds into euro-zone
government securities weighed on gold prices - Brian Hicks,
portfolio manager of US Global's Global Resources Fund. * European Union agreed an emergency loan package that with
IMF support could reach 750 billion euros ($1,000 billion). * The ECB will buy euro-zone government and private debt
and abandon resistance to full-scale bond purchases to contain
Greece's debt crisis [ID:nLDE64900T] * Investment demand was strong. The world's largest
gold-backed exchange-traded fund, SPDR Gold Trust (GLD), said
its holdings rose nearly 3 tonnes to a record. [GOL/SPDR] * Comex estimated final volume at a busy 180,311 lots. * Spot gold XAU= at $1,203.15 at 3:35 p.m. EDT (1935
GMT), versus $1,207.75 late in New York's previous session.