Saturday, January 26, 2013

FRANKENSTEIN ECONOMY

I heard this Frankenstein referenced earlier this week in an interview with Celente and thought just how appropriate a description this was for our trades and the economy. Looking at the miners certainly feels that way now, and of course its meant to hurt. I'm sure some of you are confused by what was a seemingly clear distinction to be in the miners from a fundamental point of view. How can gold be up to $1600 and the miners are trading at lower prices than when gold was trading at $600 an ounce? Miners are paper is the simplistic answer, but under that simplistic answer is a more sinister and complex explanation. I'm going to avoid the more obvious conspiracy theories of HOW they are thwarting the miner complex and just discuss WHY they are doing it. I believe we are in a strategic end game that involves the ultimate control of gold by the PTB and their sovereign operatives. This is not only occurring in gold but in virtually all vital resources. Gold and Silver is what I will focus on here. These metals represent money and as we enter into the final stages of the Currency Wars, any sovereign without a stake in bullion ON THEIR SOIL is in trouble and will immediately be in a vulnerable economic position. Vice versa also applies...HE WHO OWNS THE GOLD MAKES THE RULES! Herein lies the miner issue. Miners are not paper but miner shares ARE! These are vital strategic assets representing a threat to the national security if their control is lost and any means to control these assets by the most powerful sovereigns will be maintained. If you are a powerful sovereign then realize the importance of the miners that are in third world countries. You have instant battlegrounds. Right now they are paper share battles but that can change too. If we avoid total market breakdown then the miners should catch up and pass bullion gains. But if market breakdown occurs then the miners will take a smash....they are paper and all paper will be in liquidation. I have to play paper here but I encourage you to keep entering the physical market as much as possible.

The real Frankenstein is the Frankenstein Economy and as this monster that's been cobbled together to maintain the dollar's supremacy and this monster is teetering over the abyss. As it wobbles into the end of the Supercycle more than stocks and metals will be gaining importance in our lives. Social order is in jeopardy as the real employment weakens. Shorting the big pigs like Netflix, Whole Foods, SBUX, CMG etc will be easy targets if you are not leveraged. This is where the technical players with cash left will be deadly this year. Honestcredits target of over 1500 on the SPX is here. Now its going to go to nosebleed levels??? Perhaps. But individual pigs like AAPL at 700 are the targets. On the road for a couple of days but will comment. gl this is NOT going to be a good year for the Ponzi

Here is an excerpt from Jim Sinclair which may help those confused by their decisions.....
If you had 2 tonnes of gold and wanted to sell you would fire any broker that went into any market and yelled "20 tonnes for sale!" when the bid was for 100 ounces only. Take comfort knowing that the early am takedown and takedowns in late Asia time are not valid sellers, but painters of the price for their best interest. Nobody is so stupid as to announce they want to sell a major part of one year’s production of gold or silver when there is no market to absorb any reasonable part of it.




This is a wicked game being played by sociopaths to whom destruction gives both profit and great pleasure. If all the business matters in the shares of the business in gold into which you have invested are working out properly, simply stop quoting it for a few days. If your gold is fully paid for simply stop quoting it.



This is a nasty game taking place which relies entirely on scaring out of your wits. Yes, out of your mind, so you sell something of great value for peanuts to the exact party playing with your head via price. When you must look at the action, remember there is a buyer for every seller. That buyer is not scared out of his/her wits if you sell to stop the pain you are in.



Have my courage which I freely offer you by knowing that we are absolutely correct in markets made by devils that are bullies whose occupation is theft. Gold is the ultimate battle between good and evil. It is the ultimate battle between deficits and surpluses. Gold is the battle between paper currency backed by nothing and guaranteed by nothing versus sound money. This period of the market is the deciding battle of the Mahabharata. This period, today, is an attempt to drive you out of your wits, which is in my opinion the last and largest attack you will see perpetrated on us before gold closes over $3500. This period of pain will not be measured in months, but counted in history as days.

I prefer to listen to Bert Seligman's partner and son. gl to all of you Kliguy38






75 comments:

  1. I watched some videos on the "Financial Sense" web site this weekend. A technician, Louise Yamada, spoke about gold. She pointed out that gold consolidates for about 18 months before another move up. She believes gold has been consolidating for about 17 months. I listen to Max Kaiser too, and he believes some sort of significant event will occur by April. So, if we have come this far, might as well wait a few more months.
    Also, this Jim Puplava of the Financial Sense feels the market will head higher. The central banks will keep things going and money will rotate out of bonds into stocks. He does not see any doomsday event in the near future. He pointed out that the market follows a series of three peaks: 1st the Bond Market (that has happened now), 2nd the Stock Market (that is why he feels stocks will go higher), and 3rd the Commodities Market.

    Let's be wary, but patient.

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  2. I read that Jim Sinclair letter, thanks for posting it. Everyone on the Sunday news programs this morning seemed to agree that we're going to have lots of "issues" on foreign policy coming right up. As we can see in Egypt...I gave Richard Engel big props for telling the truth about this last week; the "spokespeople" jumped all over him.

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  3. Once the sharks trap where the Apple cash is parked they can go in for the kill. Wonder if they have been pulling a Dell in recent years.

    http://www.zerohedge.com/news/2013-01-27/600-billion-trades-four-years-how-apple-puts-even-most-aggressive-hedge-funds-shame

    As for Financial Sense, the concept of a surging market on a bond selloff will be very short lived. Higher interest rates will bring the house of cards down fast.

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  4. PAL looks like its going to go now....big volume confirmation

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    Replies
    1. Looks like there is a small gap HL might want to fill around 5.

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  5. Hard to believe silver under $31 again.

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    Replies
    1. Getting ready to purchase some rounds...

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    2. I never allowed myself to believe they would let me accumulate this long chuck....as painful as the paper miner trade has been the bullion accumulation made up for it

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  6. Going long at $30 seems to work like clockwork for 5-10%.

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  7. More concerned about this immigration now than ever, most Citizens I know are opposed and what about the people that played by the immigration rules...I'm pissed off like hell...read that report, does it look like we need 12 million more people getting a get off for free card..it will equal 25 million...because every mexican will come up here seeing that is what happened on last amnesty....our country is in the shits...our congress is fucking crazy...

    http://www.stlouisfed.org/publications/itb/articles/?id=2277

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    Replies
    1. you're in a state being destroyed by that broken policy .... Just another piece of the global puzzle put in place to weaken this nation......

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    2. sorry for the language but I used it to emphasize a point...We tried this Amnesty thing in the 80's, it led to 25 million more illegals...

      my order is filled on more rounds....the game has more mirrors than david copperfield...

      my apologies to everyone but my kids are getting undermined by these crooked congress critters...

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    3. this is all coordinated from ABOVE the President's pay grade and short of a complete world collapse this policy is unalterable

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  8. Major pain levels being reached on many miners here....EGO very strong and probably bottomed

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  9. Breathing a little easier on my Apple bet today haha... really just wanting to get an 8-10% pop and get the hell out. Today was a nice start especially with other tech names being down.

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    Replies
    1. its a gamble depending on your exp....but its definitely gonna pop on the way down...

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    2. I agree, I think one more gasp up then a fall to the mid 300s is possible.

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  10. miners are caught in a monster battle with the PTB trying to pry loose the last few weak hands....there aren't that many now so they keep pushing..sorry if the pain is too much for some of you but that is the game. these bastards will turn these shares but they want more of yours before they do.....I say foch um if they can't take a joke because this hand will not drop my shares to these pricks

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  11. Couldn't agree more kli. I have to always remind myself everyone is expendable, EVERYONE including all of us in the U.S. I continue to meditate on some Divine intervention. Our "elected officials" could care less about us. Lance Armstrong is the poster boy of what's wrong with everything. There are just too many people willing to lie, cheat and steal. On the bright side, 68 degrees here tomorrow after a month of below normal weather.

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  12. I hope you are correct about EGO, not sure if today counts as a retest of its July lows. I was resigned to the fact that it would go sub $11.00. SSRI on the other hand has been an unpleasant surprise. it's beat down the past two weeks has been a wee bit painful. but let the chips fall where they may.

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    Replies
    1. one caveat on EGO....this is a premium gold miner and they do want to own it...they may push it further because they dearly want this one

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  13. that's good news, though short term, it may be bad for stock price. hehe.

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    Replies
    1. sorry for the good/bad news but one needs to be made of steel until they turn the trade

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    2. I admit the miner trade has been a bit more difficult than i imagined. the potential breakouts thwarted and followed by wicked beatdowns has been unnerving, but it is what it is. i atleast have swung positive trades with PAAS and PPP to minimize the damage. SSRI breakdown caught me off guard. the run up over 15 before its recent fall, was well played by "thieves". I admit, the market has me doubting the PM trade. but i have been in it too long to cash in my chips here.

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    3. SSRI was looking fantastic til that offering. Then I noticed lots of sudden downgrades in other miners. SLW keeps getting attacked by Alfred Little. Kli is right they want us to HATE this trade and never consider it again, they are doing a fantastic job.

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  14. This is quite a speech in the Belgian parliament by MP Laurent Louis on why he stands against the French War in Mali. You have to press the red CC to get the translation. He addresses a few things I have read on this blog.
    http://m.youtube.com/index?&desktop_uri=%2F#/watch?v=WkzXTgslFNE

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  15. Chuck colorful language is a good thing...

    I just notice that no matter what the trade..houses, appl, paper silver, gold or miners.. what ever IT is that makes sense gets shellacked.

    It is all BS...Home Depot at highs..on what again? maybe crack.

    moslty HD and lowes have too many stores and are largely quiet. I see an accumulation of appliances in the parking lot at 20% off that are like 2 years old......lol

    To my happiness people are buying the simplist and cheapest appliances for the most part(still see those high end appliance comercials?). In my area renovations and flips are very involved..down to the studs. These are very few very few. Maybe this is different in your area.

    So HD is the next to fall. These are still not the best of times by any stretch. However a family member was in a bidding war for a small house in the bay area. So still hard to guage.

    It is $6 for a small breakfast sandwhich and coffee at MCD six bucks?


    I would like to buy a tractor..I need a bucket, tiller, brush hog, maybe a back hoe set up. Used tractors in San Diego are hard to find. aNY iDEAS?

    Any way any pool that is deep is full of sharks and will be pillaged....Prolly by the gov ment traders.

    Hard to raise taxes but easy to pillage.

    Back to the bunker.


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    Replies
    1. go on line and check.....it would be worth a drive OUT of the area to buy in a more depressed area to bring it back

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    2. Sean, I would check in central valley, bakersfield, fresno up to merced...they are still depressed and ag communities...so you might luck out...

      craigslist is what I run with...

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  16. High end houses holding up better here altho the buyer is still in control. Sean--have 2 friends leaving Ca. due to taxes, etc., one going to Idaho where I'm told there are no laws and the other to Texas.

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  17. I honestly don't believe we will see a sustainable run in miners until the metals themselves start to run again. Until you see that - trade SLV/GLD, accumulate for the long term, or stay away. Honestly trading wise I think I'd rather just play the 30-33 range on silver over and over again. Physical is the only smart move but I am dumb and greedy.

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    Replies
    1. the Hui just hit a rising trendline on the weekly going back quite a while...look at the long term chart and go back a decade...Kli could probably put it together for ya...

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  18. out of town an my system makes it hard to put up charts so new post tomorrow evening with charts and will put up the HUI

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  19. Honest,
    I dont think your language on the subject was salty enough not that it would matter as this has been a foregone conclusion since the 80's...... Cant say I dont share in your frustration as its just the same out here on the right coast, I just gave up concerning myself with it since there's nutting I can do bout it.

    Hey maybe you need a break to go and test your skills, hehehehe

    http://www.surfertoday.com/surfing/8441-has-garrett-mcnamara-ridden-the-100-foot-wave-in-nazare

    Like its been said 1000 times by Kli, time to focus on whats important!

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  20. Kli,
    Blackrock established a new position in EGO Q4 2012 with 115 million shares and holds 16.2% of the outstanding shares. See the SEC filing 13G/A filed on 1/11/13. I really like this company..almost all of the reserves are gold, large amount of reserves in low risk geographic areas, and low cost per ounce.

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  21. KERX was a monster last 2 days, Didn't play it though it would have been easy to make cash in the volume...

    ABIO might be worth a couple dollars for a scalp, holding above 50sma and 21sma, 50 about to cross the 180..might make a move to .75 where the 360sma looms...I like the chart...not in love with the financials...scalp only..

    I'm in at .38

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    1. http://finance.yahoo.com/news/adaptive-phase-3-trial-planned-220000121.html

      and up in the a/h...tomorrow could be fun

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  22. PPrazen ...EGO is a top tier producer but its pipeline of low cost gold reserves is why the "boyz" love this one premium miner. If energy costs rise then the Premium low cost producers will be the winners

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  23. if the gold starts a strong run here and miners jump on then the juniors will be the big percentage winners.

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  24. Damn TRX running hard today for some reason.

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  25. If there was ever a measure of just how little logic is left in the markets it is Amazon. This is 1999/2000 type stuff :)

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    Replies
    1. Logic LOL, betcha there's a lot of shorts squirming tonight!

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  26. Looks like crude will be hitting $100 very soon unless there's a meaningful correction. Surprised at commodities run today with FOMC meeting; release of comments at 2:15 tomorrow I think so will be looking for followthru.

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  27. amazon is the replacement for Aapl its where capital will go to die. When the boyz stop hiding liquidity there it will drop like a rock and retailers will average down

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  28. Did any of you guys see this: http://abclocal.go.com/ktrk/video?id=8971666&pid=8971311 Why do they have to do this in our cities? I find this really frightening.

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  29. The friend who sent me this said they did the same thing in Miami recently. Would appreciate your comments Kli.

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  30. I don't think there is much doubt. These "drills" have been going on in many urban areas and are using the army for a reason. This is purely for control of the domestic population. Paulson openly discussed this in 08 for it is expected in a collapse. Wash rinse repeat. Red and I have made it a point to anticipate and prepare...so is the gov

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  31. These plus the TSA seem to be getting ready for something highly unpleasant. Who is Paulson? Thanks.

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  32. http://theeconomiccollapseblog.com/archives/social-decay-illegal-immigration-poverty-open-war-on-the-streets-of-america

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  33. Freakin Tractors are over priced. Thabjs fir the replies.

    This is disturbing:

    http://www.zerohedge.com/news/2013-01-29/guest-post-you-know-youre-not-living-free-country-when

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  34. ANX and ABIO news today....going up...I should have been a squid...yesterday ABIO call is now up 85% premarket...but I'm just an honest credit guy weeping for my country....

    I like to eat squid though...

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    Replies
    1. we spent 4 trillion dollars and all we get was negative gdp?

      Feb. might be time to go short...let them hit that 14K down today or tomm..then boom...we should have a pullback...

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  35. Does anyone know why the jackboot's all over "Raw Milk" producers, I'm not getting that one since it's mostly very small farmers and hardly could make a dent in the "Big Milk" conglomerate?

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  36. Phil Davis wrote about the dollar today. He believes improvement in housing and rising oil prices will create an increased need for dollars. He feels the dollar could still fall to as low as 78.50, but then a rally will occur and shorts will be forced to cover. Thus, the dollar will POP and equities will fall. He does not feel the fall in equities will be severe though.

    Honest Credit, will all weep with you.

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  37. picked up second round of abio at .54...thank you mm's

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    Replies
    1. wow...wall street is a game....taking it down to fill it in...sell and buy didn't work out..if they are not in it, they will take it down to their price goal...

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  38. Out of hand and out of Control......

    http://www.indystar.com/article/20130129/NEWS/301290318/Couple-charged-crime-compassion?nclick_check=1

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  39. 60 mph wind gusts here, hoping it doesn't get worse...some branches in my back yard looking iffy. CEF +2.15% if you're looking for something paper that could hold up since it's Canadian.

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  40. AAPL calls are stupid cheap, which makes me nervous still holding mine :)

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    Replies
    1. remember Hubz....take the profit

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    2. No profit yet hahah that's the problem. It's up $10 from where I bought it too. Ugh.

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  41. Going against the grain here and also against my miners, but I just bought DUST. If you can't beat them, join them. Good luck everyone.

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    1. careful on any leveraged ETFs.......or for that matter any ETFs......long or short of the miners.....very short term trades only...don't get caught in these when this ponzi goes down.....for that matter the miners in trading accounts without the certificates are vulnerable in what may come.....gl....ya gotta admit they DONT want you in the miners.....hehehehhe....baastids

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  42. Yes, now gold/silver going down in spite of Israel bombing Syria: http://www.3news.co.nz/Israel-bombs-Syrian-military-site---reports/tabid/417/articleID/285044/Default.aspx

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  43. new post and charts tonight....back in my bunker and happy

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  44. not surprising miners and gold were held in check with FOMC meet today

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  45. its looking more and more like the "take up" will be volatile/disorderly.....in other words EXPLOSIVE....

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    Replies
    1. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/30_Norcini_-_Silver_Now_Very_Close_To_A_Major_Short_Squeeze.html

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  46. Repeating the dead horse ....again....ONE morning you are all going to wake up and wonder just what happened to open Gold up $200 and silver up 20$.....

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  47. Just to note, the Russell 2000 was down 1.15%, but the Nas & DOW down just approximately 0.35%. The Russell may warning & lead the market lower.

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  48. great trade trade on ABIO!!! good for you HCG

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  49. Very nice and helpful information has been given in this article. I like the way you explain the things. Keep posting. Thanks.. commodity tips

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