Thursday, September 20, 2012

NEARING THE FISCAL CLIFF

Is this how Ben is approaching the fiscal cliff? Maybe. Time will tell. Right now its all buying time. The real game is going on behind the scenes. The real game has a lot of moving parts. Most of the movement is in areas that we are not even remotely privy to. This is all about balancing and rebalancing.  Which country "gets out alive" is the ultimate game. Global powerhouses like the U.S. Russia and China are trying to assure that they retain their status or even climb over the the King and claim the new title. China is certainly positioning itself for the future powerhouse status holder but can it out position the champ? Russia is lurking in the shadows watching both of the Goliaths probing one another for a weakness. Paper is the game right now and its all about the reserve status of the paper dollar. Paper depends completely on confidence. You will increasingly hear more and more on CONfidence as this game progresses. At one time we could say our strong dollar policy and our country stood for the rule of law and freedom. That was until the last few decades. Our game got out of control. Absolute power corrupts. And we are absolutely, irrevocably broken....and that is putting it politely. This has weakened our republic so badly that it is now vulnerable NOT just to the Chinese and the Russians.....but more importantly its vulnerable to a worse enemy.....and that is to the rot within. Our own internal disease of hubris and corruption seems unstoppable now. It is now a force that has gained its own unstoppable momentum ...hellbent on taking the nation straight into the fire.

The rest of the sharks are watching the grand old shark start to gorge itself on corruption and are looking for the right moment to strike. Putin is very aware of who is running the show and so is China. They know that positioning now will be crucial for survival and entering the next phase of the World power game. Both are accumulating precious metals in an ever increasing pace. China has accumulated a massive amount of natural resources and access to them through alliances with developing nations rich in natural resources. They could never have been that successful without our own complicity in our demise. We betrayed one too many of OUR dictators. We betrayed one too many developing democracies. To paraphrase Smedley Butler.....we screwed one too many of our friends for the International Fruit Company owners. You can get away with the game for a long time but eventually the truth becomes just too obvious. CONfidence....eventually it will have to be restored if there is any chance to avoid utter catastrophe.

We need a pullback in PMs but don't count on it before another move over 1800. A nice rollback to about 1740 should provide a really nice base. I really don't care and don't have enough cash to trade much. Just watching with a full load.




39 comments:

  1. Jim Rickards says that the Central banks are trying to use inflation to delever by destroying the value of the dollar by half. I agree BUT I am not sure that this will be enough to delever AND whether or not they can stop the inflation at 5% without losing control of it and triggering a hyperinflationary spike crash is another trick......as they say on ZH......gold bitchezzzz

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  3. Image 19 after soon.

    http://framework.latimes.com/2011/12/04/capturing-history-as-it-was-made-los-angeles-times-celebrates-130th-anniversary/#/18

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    1. nice pic sheeps.....now they just have a plastic card instead at the same line that everyone is in

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  4. looks like the bullion buyers are taking it over 1800 sooner than later

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  5. Calmly discussing depression on CNBS in Europe this am with El Arian and Dalio as guests......they are not even trying to discuss it as a possibility but now as an unavoidable eventuality. REALLY!!! REALLY!!!.. NOW they are accepting depression...just too ridiculous

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  6. My question remains.....how many "steps up" on this run before a meaningful 5-8% pullback to let buyers in.......hehehehehe......so far no one gets in

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  7. Enjoyed to photos Sheeps.
    They have captured the passion that is life.

    I did sell covered NKTR calls yesterday to generate some cash. Hopefully NKTR will trade sideways for awhile.

    I might buy more SVM today. It pulled back yesterday. SVM pays a dividend and you have to be a shareholder of record by 9/28. So, just a few trading days left to capture the dividend.

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  8. MO MO boyz should have to chase performance into the end of the month

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  9. Not sure when to sell some of my KGC (up 2% more today). Getting very overbought, but then I look at the PPP chart and it was overbought for over a month! Could KGC run more? With so many shares outstanding I'm thinking of selling some and put $ into a few other miners. HMMMMMM what to do? No one ever went broke taking profits, but would hate to miss an explosive day.

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    1. sell half and hold/hope for pullback on some on your buy list......BRD CGR PPP still cheap also AUMN

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  10. Thanks Kli. That's the way I am leaning. I think there are much better miners out there to jump on.

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    1. maybe but sentiment is building too high short term on gold....so they may whack it to 1640

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  11. Your welcome Guys. I was somewhere in the picture of the Queen Mary entering LB harbor. LA kinda sucks..the history of the land and early architecture is rich.

    Happy Friday!

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  12. took some profit and would love to see some weakness again next week to readd......

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  13. The USD is making a quiet move of support. Vix also is not making new lows. I am holding miners over the weekend. Too much potential mid east firewerks not to hold. They dip I add. especially PPP. GPL should have smokin earnings.

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  14. YUP there it goes......trap door on gold....hehehhehehehe.....CNBS pumped it for several days......then today they brought out ALL the big gold bugs for the final pump......heheheheheh watch um try to crush it......just a blip if they do......would to see 1640 from a technical standpoint

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  15. don't ya love these guyz........now lets see how the bullion buyers play it......I say they wait and let the paper shorts play their game.......at least for a day or two more......maybe maybe not......

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  16. OMG, they just said, "screw the longs"...as you've said over & over, they're good. Sometimes the charts literally look like they're giving the finger!

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  17. hehehe. Condition those new gold bulls to never touch the stuff. kinda like an early experience with cheap Tequila.

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  18. gold longs putting up a good fight.....hehehhe......makes it kind of interesting.....I still think they get whacked hard....but ya neva know......raised a little cash today just in case they get the job done

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  19. Aint doing nutting just yet 1850 or above and Ill lighten the load some but I snoozed on yesterday's dip so just might add some if they give a nice smack down. Way to much gas soaked kindling under current events to let any thing go now......

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    1. whatever pullback we get here tom will get quickly corrected

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  20. Algos untrustworthy, lol. Great pics sheeps. PPP not correcting at all so far.

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  21. Bart Chilton coming up next on CNBS......hehehehehhee....this is just becoming tooo fackin funny

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  22. PPP using the chart against the chartist. The Algos new trick.

    http://www.freestockcharts.com?emailChartID=3179145b-a091-44be-ad18-a52496dfc607

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    1. yes sheeps which makes overtrading this sector very risky.

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  23. Bart Chilton now on CNBS ...who can take this mullet head seriously.....watta scumbag

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    1. holy chit they have wiped out the CME....there are no traders left there

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  24. VERY INTERESTING.....true attack on gold is repelled.........hmmmmmmmmmmmmmm

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  25. It will all be about Sapin on Monday. Will they agree to terms and accept money? If so Euro will rally on Monday. Here is a taste of what's going on in with Rajoy.

    http://www.irishtimes.com/newspaper/world/2012/0921/1224324232289.html

    No way Rajoy opts for austerity.

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  26. All gov'ts. between proverbial rock (gold) and hard place (silver). ANV now +3.75%...have some original shares from '09...bought @9.03! Thanks to Kli & Joe...

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  27. Maaaannnnn Silver is strong. LOVING IT.

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  28. if you want to look at the weekly on HL i just posted it

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  29. “The central banks around the world are printing, and this week we had news that the Japanese Central Bank has joined in by embarking on further asset buying program.

    Next week the focus will shift back to Europe because Spain will be seeking a bailout. Meanwhile, the ECB has said they would buy bonds of distressed euro members, but those countries must seek a bailout first. So their is conditionality.

    Since that announcement there has been a quiet period, but I think that quiet period is coming to an end. So there is going to be some tension as news of the conditionality and the bailout gets circulated. The stage is now set.

    With that as the backdrop, I expect to see new highs on gold before year end. The enemy of the gold investor is time. You need to have your position and stick with it. Just looking at gold relative to the supply of money, gold may advance to $2,500 to $3,000 in the first few months of next year.

    In reality, people haven’t even begun to accumulate gold globally. So to me $2,000 is nothing. But will there be pullbacks? Yes, of course.”

    Bryan had this to say regarding silver: “Silver is the leveraged play to gold. The high from the middle of last year was just under $50, and that will easily be eclipsed as gold breaks to new highs, easily.”

    Bryan also added: “Encouragingly, the gold stocks have actually started to outperform the metal and this is a very good sign. But I think this is just the start of that outperformance.” from Caesar Bryan on KWN

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  30. I agree. Whatever the ride just hold tight and add to PM's. We are screwed and not in a good way. I would also add rice, beans and taptio. I am serious. Have a store of beans=protein. They are cheap and keep a long time if not forever. Pasta too is cheap.

    One way or the other austerity is going to be shoved up the ol wazoo. Be it devaluation of the buck or flat out coniption fit.

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  31. http://www.sandiegohistory.org/journal/93spring/border.htm#hauserfire

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  32. What us it about the number 11? Comes up so much.

    First they took down oil. Yesterday gold. Market NEVER budges. The vix is also whacked all the time.

    http://jessescrossroadscafe.blogspot.com/2012/09/the-double-flash-crash-in-gold-sept-13.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Caf%C3%A9+Am%C3%A9ricain%29

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