Tuesday, April 9, 2013

DON'T STUMBLE

The next step you take may be your last. Two weeks ago with the Cyprus debacle, there was a clear warning shot fired into the air for all of you to pay attention to. Until that fateful event, the uniformity and synchronized movements of the Western Central Bankers had managed to maintain the appearance of cash in the banks as a safe haven. When the decision to change course and begin confiscating the assets of people all of Bernanke's carefully crafted, four year Keynesian experiment was destroyed. Maybe you don't feel it yet but I think that a monumental change has occurred in the game. Its very obvious to anyone with math abilities above a 5th grade level that we're in a hole that is approaching infinity. More than likely the time that was needed to build the appropriate bugout bunkers and put the finishing touches on balancing assets of true value have been completed and the decision at a very high level has been made to pull the pin on the economic grenade.

Its very obvious that global pressures have been applied to a multitude of regions militarily and/or economically to create chaos. Some of you are aware of how manipulated these events are and that random events are usually an illusion for the puppeteers. Chaos and fear are tools of the trade designed to shift attention from what the right hand is doing. Always keep your eye on the money. And don't forget what money is......real money that is.....gold and silver. If you have not understood the significance of that simple statement then you deserve to suffer the consequences. 

In case you weren't aware a large amount of bullion orders came into London today forcing up the spot price.....the orders were Asian but NOT the usual buyers.....these were new big orders out of Japan and caught the London market off guard. Careful thinking we may get that final cheap buy. Note what happened VERY quickly out of Japan today with a report that their QE has already worked its magic. REALLY??? And they think Jawboning like that will work on this jaded market? Maybe today, but not for long. That JBG has to be bought... Here's what ZH said about Kyle Bass today and his thoughts.

"The stress is beginning to show," Kyle Bass warns during a wide-ranging interview with Bloomberg TV. "The beginning of the end," is here for Japanese government bonds as he notes that while quantitiavely it is clear they are insolvent, "the qualitative perception of participants is changing." But away from Japan specifically, there is a lot more on the Texan's mind. "Things go from perfectly stable to completely unstable," very quickly; even more so after 20 years of exponential debt build-up and Keynesian cover-ups; and it is this that he warns complacent investors that it is "really important to think about the capital at risk in your strategy." For this reason he prefers to hold gold rather than Treasuries, as, "when you think about the largest central banks in the world, they have all moved to unlimited printing ideology. Monetary policy happens to be the only game in town. I am perplexed as to why gold is as low as it is. I don't have a great answer for you other than you should maintain a position." His discussion varies from housing's recovery to structured credit liquidity "money is being misallocated by the printing press" and the future of the GSEs, concluding with the rather ominous, "at some point in time, I would much rather would own gold than paper. I just don't know when that time is."

I think they've pulled the pin......don't expect it to just explode with one bang right away but a series of bangs and then one big boom...that big boom will make all of the doubters left know what the end game is. gl






61 comments:

  1. Thanks for posting Kyle Bass...for me "positioning not trading" is the key phrase he uses.

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  2. (carry-over from the previous post)

    First off, a major thanks to Sister for re-posting this link that Kli had apparently posted sometime ago:

    http://www.iamthewitness.com/DarylBradfordSmith_Bankers.htm

    Now, I consider myself fairly knowledgable when it comes to bankster control of the world, the the history of the Federal Reserve, and how every major war in the last few centuries was pre-engineered for the sole purpose of benefiting one small group. However, there was still a ton of information in the above read that was new to me, and I honestly did not realize the extent of how much were are completely owned in every way and how destructive "their" policies have been to entire nations for hundreds of years.

    This makes me wonder, WTF can we do to prepare for what's coming? Or the better question, what is coming? Unlike the Great Depression, this time they are increasing, not decreasing the money supply. So, what will be their end game? Another depression once they stop the printing presses? Followed by WWIII? Seems to be the only logical conclusion.

    Forget about our 401ks, IRAs, or anything else. Just get what we can now, buy some assets, maybe have some dry powder ready to buy things on the cheap when the big crash comes, and otherwise just enjoy life and family?

    Otherwise, it all becomes too depressing to think about the future.

    Can't really thank Kli enough for operating this blog. If you ever visit the Pacific NW, I'd be very happy to meet you in person. And also, I hope we're not going to get you (or myself!!!) in trouble for even discussing this stuff.

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    1. Its well past "getting in trouble " stage.....we are at a much bigger crossroad now. This is the "resolution" phase and as you stated above......"take stock" and final preparation. gl

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  3. http://truthingold.com/?p=2333

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  4. Just like clockwork as predicted with Friday's horrific jobs numbers we would get the Jawboning to indicate a "recovery" and that QE "could" be removed early....WON'T happen but they have to give cover to the massive counterfeiting. Watch this all weak and Goldman slams gold today right on Q........

    http://www.zerohedge.com/news/2013-04-10/fomc-minutes-released-early-several-fomc-members-saw-qe-tapering-halt-year-end

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  5. Phil Davis wrote today that he wonders if any real people are trading. The market rises at low volume (no volume in the futures) and then volume selling at the open & closes. Then nothing but buyers on low volume again.
    He warns that the Russell has failed & advised being in cash.
    Let's see what happens.

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  6. In thinking over Kyle Bass interview along with gold/silver prices, his pt. that money is chasing yield is true in my accts. I take this as a rational explanation for the dive. The sheeps have not yet awakened. So I will keep positioning and have bonds/divi stocks as well as lots of cash for the ready.

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  7. Look at how they are still trying to shake out the weak hands today......for example ANV......super quality miner up big yesterday with vol and down big today.....just MMs helping to shake out the jumper ons...message to chumps.....GET OFF THIS TRAIN!! WE'RE LEAVIN' THE STATION WITHOUT YOU SCUM!

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  8. And of course this always happens when the Fed speaks. One more "thanks for all you do" to Kli. Remember in spite of GS, Soros said the price of gold will not go down.

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  9. And now we really know why Gold is falling....

    http://www.zerohedge.com/news/2013-04-10/here-we-go-cyprus-sell-%E2%82%AC400-million-gold-finance-part-its-bailout

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    Replies
    1. but but........Rudy don't ya know Gold is just a barbarous relic.....hehehhehe

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    2. Your right kli, I did not know you could sell "tradition" for that much money. I obviously missed the memo!

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  10. and as Paul Harvey would say......the REST of the story...

    http://www.zerohedge.com/news/2013-04-10/here-we-go-cyprus-sell-%E2%82%AC400-million-gold-finance-part-its-bailout

    you just can't make this stuff up.....no one would believe it

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  11. A very rare correction.......

    re: Paul Harvey

    "And Now You Know The Rest Of The Story"

    Man every thing is upside down, sideways and picking up steam!

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  12. http://www.zerohedge.com/contributed/2013-04-10/gold-record-high-yen-rush-sell-jewelery-buy-coins-and-bars

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  13. Of course gold/silver falling when the POTUS' budget is $3.77 Trillion. As you say, you can't make this stuff up. Went to DMV on Monday to renew, 2 hrs. waiting, voter registration + had to sign that I am not a sex offender, lol + giving photo IDs to illegals now. No license if you are a sex offender, whata joke it's all becoming.

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  14. Obama sends Congress $3.8 trillion spending plan:

    Gold
    1,570.70
    -16.00
    -1.01%




    sister: condolences on having to visit the DMV. I work right across the street from a DMV office. Every few weeks I see a carload of 5-6 illegals use our parking lot. Washington State is one of 3 states that grants drivers licenses to illegals. Not just an ID card, but a full blown license. The human traffickers bring them up here quite literally by the carload.


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  15. Funny how this barbarous relic gets sold......WHO bought it.....and WHY.....I'm sure they just wanted to "help" little cyprus by removing this relic off their hands.........GONE FOREVER NOW little Cyprus......You have been CONfiscated

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    1. forgot the link

      http://www.reuters.com/article/2013/04/10/us-cyprus-bailout-gold-idUSBRE9390NX20130410

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  16. who gets the Cyprus gold? the IMF, euro zone central banks, the USA?

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    Replies
    1. they conveniently did not say......but rest assured it was the "same people" that got Mubarak's gold, Libya's gold, Tunisia's gold

      Maybe it was these people

      http://www.zerohedge.com/news/2013-04-10/cyprus-suspends-probe-who-withdrew-money-early

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    2. straight answer rudemood. The "people" that go back centuries were known as the Goldsmiths.....they've always controlled the gold....they're the "moneychangers" in the Temple......they've always owned the sheep......in fact they coined the term sheep in describing everyone else.....

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  17. this whole miner trade is so mentally defeating. the Goldman Sachs downgrade of gold says it all. the timing of there downgrade was just amazing. coincidence? I can only laugh. my guess is there is some other land mine in hiding to be unleashed the next time gold starts to make a run. best of luck everyone.

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    Replies
    1. Your pessimism is encouraging rude.....maybe were nearing a bottom....

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  18. kli,

    thanks for the responses. the "PTB" are so crafty. I will read up on the " goldsmiths".

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  19. hehe. maybe your right about a bottem being near. I sure ain't optimistic, so that could be a good sign.

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    Replies
    1. I feel almost no pessimism.......I'm serious......so it must not be there yet

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    2. We have a ways to go on metals going down I believe. Honestly this excites me. Picking up MUX at $1.50-$2, or PPP for under $5, SVM under $3. Would be some great deals!

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    3. dunno Hubz......this one looks set to fly right here

      http://stockcharts.com/h-sc/ui?s=ANV&p=120&yr=0&mn=1&dy=0&id=p62094693162&a=244180314&listNum=1

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    4. That does look interesting. Hilarious how they smashed up yesterday then 24 hours later it's suddenly worth much less... Criminals!! :)

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    5. look at the volume changes....I like ......converted KGC to ANV here

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  20. Has anyone witness the crash in Bitcoin? At one point it went from $270 to $156. Parabolic up! Parabolic down!

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    Replies
    1. Yup.......all a set up for the slaughter......thats why you HOLD PHYSICAL......stay away from paper and digital "fiat".....they are NOT money

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    2. Wow, down under $120. That is more that fifty percent!

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  21. Bitcoin is disrupting the Matrix..... That won't be tolerated!

    Speaking of which neither is telling the TRUTH......


    http://www.zerohedge.com/news/2013-04-10/where-honesty-worst-policy

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  22. Not really much to see today....gold down 1.6%....market up big and shorts squeezed senseless....bitcoin slapped silly (now there's a shock).....and silver barely down......miners CURUSHHED....again....gotta clean your shorts out playin' the boyz......now run along to the evening news and listen to how grande we are while the rest of the world implodes.......watta game

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    1. CNBS really pumping this move today...saying what a great economy we have compared to the rest......let's see OVER 100 million of us working age UNEMPLOYED....70million on food stamps now....17Trillion in gov debt.......NO manufacturing.....retail sales imploding....can one of you Puleeeeeeeeeeze tell me how they keep a straight face....oh wait.....they're pro liars...with a 7 figure income

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    2. "They fail to realize that productivity-led deflation should be welcomed as the best way to boost the purchasing power of consumers"

      I found this from Droke's article today most interesting. Today our GDP is about the same as 2007-8, but employment #s are much less, yet the FED believes they can solve this productivity produced unemployment by printing more money? It does not compute....

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  23. http://www.cbc.ca/doczone/episode/the-secret-world-of-gold.html

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  24. S&P 500, Dow post record highs - Gold gets absolutely mauled. I'm wondering if they take out the 1525 resistance this week?

    Gold
    1,558.30
    -28.40
    -1.79%

    Goldman Sachs downgraded gold?? That's a sure sign the bottom is near.
    Remember less than a year ago when Goldman was setting AAPL $700 price targets.


    Bitcoin:

    Last price:$140.00000
    High:$266.00000
    Low:$105.00000

    Yeah. That's a real stable alternative to the dollar. LOL.

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  25. The Federal Reserve has sent to reporters the email addresses of the roughly 100 people who received minutes from the last meeting a day ahead of time. The Fed blamed a "human error" for the mistake, and moved up the release of the minutes by five hours. Most the people on the email list have addresses indicating they work at the House or Senate, but some are from financial services firms including Barclays BCS +4.11% , BNP Paribas FR:BNP +5.33% , Carlyle CG +2.84% , Citi C -0.17% , Goldman Sachs GS -0.20% , J.P. Morgan Chase JPM +0.12% , Nomura NMR +6.34% , U.S. Bancorp USB +1.45% Wells Fargo WFC +0.28%

    Also of note is be careful of MUX, the CEO has left many investors with big losses while he loots company...

    GALE could run...

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  26. Citi Private bank has joined the parade by getting rid of its exposure altogether according to Barron's. Also dumping munis and investment grade bonds in favor of equities.

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  27. Professional liars, that says it all. I just wonder who is left to think things are improving. No one I talk to...maybe the NY banksters & Fed employees. Unemployment in my country "fell to 9.4%". But the Panthers want tax dollars to improve their stadium and they will get it. I want to move, don't know where to go. Relatives in NY and Ga. would pick Ga. if I were convinced they'd stay there. NC/SC filling up with retired NY, NJ, Pa, Ohio. Amazing to watch.

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    Replies
    1. stay where you're familiar......OR move to florida on one of the big retirement centers like Sun City or the Nancy Lopez one.....very affordable down there and the climate is great........

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  28. Sorry, meant in my county (Mecklenburg).

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  29. I don't think they want gold or silver out of this range LOWER or higher at least for awhile....so getting that special "buy" below 1500 is probably a pipe dream for me or silver at 22 or below......dreaming.....too much bullion going out the door on these pullbacks

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  30. Why printing money won't bring back jobs and why deflation will come (productivity improvements):

    Manufacturing does not generate a lot of jobs: American manufacturing is making a comeback, but is remains an anemic job creator. Manufacturing output is projected to grow from $4.4 trillion in 2010 to a projected $5.7 trillion by 2020, according to the Bureau of Labor Statistics. But this increased manufacturing output — which stems from improvements in technology, greater use of robots and automation, and improved production organization — will not necessarily translate into a whole lot more jobs. In fact, the BLS projects the U.S. will lose another 73,100 manufacturing jobs by 2020, as manufacturing falls to just seven percent of total employment.

    Did you know peak GDP in 2008 was around $14.4T and is now $15.8T and we have a lot less people employed. Doesn't take a genius to figure this out, but they don't have a clue at the FED or in DC.

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  31. Looks like Cyprus has been shoved aside, and back to business as usual, with markets making new highs every day. As long as the $85 billion a month continues, the stocks cannot go down. They'll pin the gold price in the $1550-1600 range, silver $27-30, and all that money really has one home, and that's equities.

    S&P 1800-1900 and Dow 16K-17K by year's end cannot be ruled out, so gotta stay long for the foreseeble future. The whole thing is unreal.

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    Replies
    1. No ya don't have to be long (OR SHORT) the general market......thats what they want you to think. be very careful going with the herd here.. We are in a new game now....ist CONfiscation and the market is vulnerable....don't forget...they gave you a warning shot

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  32. evidentially Cyprus needs another 6 billion. wave goodbye to the rest of the depositors money. such a scam. and yet gold is a sell. hehe

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    1. More and More Daily chaos occurring and the crisis are getting closer together......timeline is closing and endgame playing out with CONfiscation/bailin ....this is ABSOLUTELY the deflationary 120 year endgame taking over so beware...Fear will be the watch word before October.....hopefully I get that much time to accumulate and prepare but DONT count on it

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  33. HL is up almost 5% again. Something is up. Nice volume too.

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  34. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/11_The_Stunning_Roadmap_to_%24500_Silver_%26_%248%2C000_Gold.html

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  35. I hope none of you believe we are not close behind......because we are

    http://www.telegraph.co.uk/finance/financialcrisis/9986806/Greek-unemployment-hits-a-fresh-record.html

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  36. budfox: You must be laughing all the way to the bank right now.

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    Replies
    1. good one inlet....hey can ya blame um? They're just tryin' to be Fed knockoff.....hehehhe

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  37. From ZH:

    "....There is a clear mismatch between the prices of gold and silver mining shares and spot prices of gold and silver. But as to why the miners are trading so poorly relative to the physical is unclear to us.

    It may be because the market expects the price of gold and silver to fall (not a belief to which we subscribe, given current monetary events for example in Japan).

    It may be because the rise of gold exchange-traded funds has removed a natural bid for shares of the miners.

    And it may be because the market is waiting for goldbug hedge fund manager John Paulson to capitulate on his own holdings of precious metal mining stocks.

    Nobody knows. We are merely content to play the long– and rational– game.

    As Lee Quaintance and Paul Brodsky of QB Partners point out, “the ratio [Mining share prices to spot gold] is again at its ten year weekly low. If there is any remaining validity to the merits of investing in financial assets based on historical value, this would be the time to buy miners.”

    They go on to add (and we concur),

    “Our strong bias is that prices of bullion will rise significantly. Selling the miners at current absolute and relative valuations would be tantamount to throwing in the towel on the entire concept of value investing, now and in the future.”

    “The reality is that we cannot be 100% sure of the outcome from all the monetary mayhem in Europe, Japan and the US, and we do not have a good sense of timing if and when our outcome proves correct. . . All we can do is try to recognize value within the context of current and extrapolate-able events.”

    We agree that the temporary weakness of the price of bullion is a buying opportunity in light of Japan’s vast money-printing experiment. And the same likely holds for the price of gold mining companies."

    Good luck to all of us:) jd

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  38. hehehehehe....hello my friend and hope all is well....no puking here.....see ya soon

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  39. Jay, it's a been good run. I left the miner trade last summer and just decided to ride the gravy train, and for me personally, that was a good decision. But to be sure, I'm not chasing this rally. I'd estimate I entered 2013 with a 70/30 stocks/cash & bonds allocation on all my accounts, and have been gradually selling into this rally. So my gains could be even higher, but I'm not a greedy pig, and would rather miss out on the next 5%, then lose 20% (although like I said before, it doesn't look like we'll crash hard as long as Ben keeps printing).

    April is off to a strong start, and I'll probaby sell more, and end up with 70/30 cash/stocks (opposite of what I started the year with). This is how I'm playing the casino, and at some point, I may use some of that house money to get back into the miner trade, but not yet.

    My ultimate goal is to end up with a mix similar to the permanent portfolio model:

    25% equities
    25% bonds
    25% cash
    25% gold & silver

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