Tuesday, April 23, 2013

WHAT DO YOU DO WHEN NOTHING IS REAL?

Look at that .....that's bullshit!
I heard from a hedge fund manager today and he was dumbfounded by the market. He manages about a billion  and says nothing makes any sense and everyone is looking for yield, but nothing is there. I began thinking just how dislocated reality has become and noted the news today of the flash crash triggered by a hacked Twitter account. Look at how many investors were robbed during that four minute stop run today. Leveraged players were particularly slaughtered. What is real? When a keystroke determines reality, then you can rest assured that only the human imagination is the limiting factor on the type of ponzies that will be created. Imagine the havoc ahead for the new digital wealth that people can have removed in a nanosecond with just a keystroke. As this robbery begins to occur with more frequency an alternative safe haven will become mandatory for your survival. Money isn't even paper anymore. Its just random atomic particles in space. THAT IS NOT GOING TO BE ACCEPTABLE. At least not as the ONLY store of wealth.

Whether its creating fiat out of thin air or flash crashes reality is no longer present in these markets. Don't think that is going wasted on people of great net worth. They're scared and getting MORE scared by the day. Some of the players thought they might be able to get out before the music stopped but they're finding more and more minefields to cross that weren't there a year ago. Now the once safe haven banks in the Caymans, Bahama, and Switzerland have been turned into potential killing fields. Safety deposit boxes are now fair game for examination and confiscation. Currency debasement is a given. Political structure in once stable regimes is disintegrating and the bail-in demands become 70% instant haircuts. Comfortable sovereign tax structures are suddenly turning into killing fields. Ten million USD saved up over a lifetime for a comfortable retirement suddenly is returning interest of 24K/year. Then you have the developing counterparty risks evolving from the MFGlobal pillage placing the independent investor squarely in front of the firing squad. Imagine your digital account at MF Global being ZERO on that Monday. Get used to it. Digital extermination is just beginning. Whether its a hack attack or a some other digital destruction the protection of holding an asset in your hand will take on an entirely new meaning. 

I know you've heard the phrase "real money"....well now you are even having new meaning given to this terminology. I wonder how many of you reading this have even one ounce of gold on your person. How many have more than a handful of silver coins or bars? I'll bet its less than half maybe only a quarter of you. Sad.....but not surprising given the extreme length the cartel has gone to prevent the media from showing this trade for what it represents. ....gl with those USDs you're saving









Add caption
A farmer hedging his crop and selling forward compare to Gold market. The thing is the farmer's not dealing with something that is leveraged 100:1. In other words 100 paper contracts for every real ounce of physical. This is why we are experiencing some of the issue right now of massive demand and dwindling supply and why Comex inventories have dropped dramatically since the beginning of the year and rumors and talk of the LBMA trying to settle in cash because they unable to deliver the physical on the contract. Likewise wise why the Dutch bank ANB Amro recently defaulted on customer's allocated gold saying they couldn't deliver and would have to cash settle. Cracks are forming in the FR system it seems. Here is a chart showing how many days of world production would be required for the commercial banks to cover their existing short contracts. Notice how small the farmer's positions in say wheat, corn or soybean meal vs the 4 largest bars on the chart. IS it just a mere coincidence that the 4 largest happen to be the 4 PM that are most manipulated, heheeeeeeee!







87 comments:

  1. Did anyone notice that the flash crash today just happened to fill the opening gap?

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  2. http://www.zerohedge.com/news/2013-04-23/ron-paul-bitcoin-if-i-cant-put-it-my-pocket-i-have-reservations

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  3. Oblivion trailer above.......AJ says it is spot on about the illuminati and the end game

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  4. Here we go again, up in the East...

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  5. http://www.bloomberg.com/news/2013-04-23/u-s-mint-runs-out-of-smallest-american-eagle-gold-coin.html

    buying when everyone is selling is much harder in the metals game...

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    Replies
    1. ahhhh......you've noticed.....hehehhehe.....and I thought we had you fooled......hehehehehhe......so sorry suckers....no metal for YOUUUUUU

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  6. Sister: My hold request for "The Creature from Jekyll Island
    A Second Look at the Federal Reserve". Is Finally available for checkout at the Seattle Public Library.

    I'll pick it up tomorrow afternoon on my way home from work. Thanks again for the suggestion.

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  7. I watched the entire 1+ hour Stansberry video, which is quite long-winded and is a lead-up to signing-up for his newsletter, so it's a sales pitch. There's a lot of hyperbole in there mixed in with some good common sense stuff that should be obvious to any aware citizen, such as members of this blog:

    1. Our national debt is not sustainable and something will have to give
    2. The USD's status as the world reserve currency is in danger
    3. Buy some gold & silver as insurance
    4. Upon currency devaluation, many people will get caught unprepared and lose their savings
    5. Other miscellanous advice to prepare for things like social unrest, bank runs, food shortages, etc.

    A lot of what he's saying will probably happen, just not to the scale that predicts. Also, there's a whole bunch of nebulous investment advice that you can only get thru his 66% off newsletter. A quick google search does not paint a positive picture of him, as he's been convicted of fraud in the past.

    Bottom line, don't bother caughing up $50 to get his subsription. I'm a firm believer that if you have found whatever method to become rich, you'll keep that info to yourself instead of creating a newsletter and sharing it with the masses.

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    Replies
    1. yes bud and if I could pull it down I would....hehehee....put it up without checking it first and didn't realize it was stansberry......he's a shill

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  8. Joe put a chart on COT positions and comments under it above

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  9. I also want to take the time out here to address something that I should have before and that is assuming that you are all hardass, jaded assholes like myself that have been through these types of market slaughters before. I shouldn't have and my apologies to you. This too shall pass. Your concerns should focus on preparations ahead and enjoy EVERY day with your loved ones.....THAT is your secret to life. IF you want to achieve a "Greater Good" I suggest you look to someone else to aid.....there are plenty out there in spite of what CNBS would have you believe. As far as "our country" for the U.S. readers....I cannot even begin to advise you on how you undo that mess.....gl

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  10. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/24_Sinclair_-_Full-Blown_Panic_As_People_Ask_Where_Is_The_Gold.html

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  11. http://www.nytimes.com/2013/04/19/business/global/french-court-orders-lagarde-to-appear-in-tapie-case.html?ref=christinelagarde&_r=0

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  12. http://www.zerohedge.com/news/2013-04-24/usd-reserve-exodus-continues-australia-diversifies-reserves-china

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  13. This comment has been removed by the author.

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  14. Read some more M. Armstrong last night...I just do not see how he can say the markets are not manipulated...all one has to do is watch. It doesn't take a genius to see the metals peak b/4 the U.S. markets open just to have it spend the day retreating. Oh, this is perfectly normal...kinda like having combat soldiers march into your home.

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    Replies
    1. They put this guy in PRISON.....and didn't even try him for his original charge....hehhheee....they finally released him ....what do you think he is going to say........

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  15. http://news.goldseek.com/GoldSeek/1366807662.php

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  16. I watch the prices on eBay for the 1964 Kennedy Half dollars (90% silver). A roll of 20 coins has about $165 dollars of silver at the present spot price.
    The Brilliant/Uncirculated Gem coins are going for $265 a roll or more. That's an extra $100 dollars for 20 coins or 5 bucks a coin. Higher than usual.
    Also, new eBay buyers (ie, only 10-20 ebay transactions). So, perhaps the lack of Silver Eagles was moved some buyers to eBay.

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  17. gainesville out of lot of junk silver choices but some remain and the premium is not bad......

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  18. http://www.zerohedge.com/news/2013-04-24/cnbc-viewership-plunges-eight-year-lows

    Gee I wonder why????


    Hehehehehe

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  19. Interesting item from over @ Jesse's:

    "The shareholders of Barrick have rejected the Executive Compensation plan in what has been described as a 'tumultuous meeting.' Good for them.

    The rejection, which occurred at Barrick’s annual general meeting on Wednesday, was a direct challenge to a board that last year agreed to pay US$17-million to co-chairman John Thornton, which included a staggering US$11.9-million signing bonus — an unprecedented payout in Corporate Canada.

    Barrick founder Peter Munk was defiant during the meeting, defending his company’s decision to bring on Mr. Thornton, who was a former president at Goldman Sachs."

    Bastards have their tentacles everywhere, lol. jd.

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    Replies
    1. Barrick is a sham......they ARE one of the cartel's mine and help to control the price of gold

      Delete
  20. ZH #1 According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit.

    #2 At this point, approximately one-third of Detroit's 140 square miles is either vacant or derelict.

    #3 Back during the housing bubble, an acre of land in downtown Phoenix, Arizona sold for about $90 a square foot. Today, an acre in downtown Phoenix sells for about $9 a square foot.

    #4 The city of Chicago is so strapped for cash that it is planning to close 54 public schools. It is being estimated that Chicago schools will run a budget deficit of about a billion dollars in 2013.

    #5 The city of Baltimore is already facing unfunded liabilities of more than 3.2 billion dollars, but the city government continues to pile up more debt as if it was going out of style.

    #6 Today, the murder rate in East St. Louis is 17 times higher than the national average.

    #7 According to USA Today, the "share of jobs located in or near a downtown declined in 91 of the nation's 100 largest metropolitan areas" between 2000 and 2010.

    #8 Between December 2000 and December 2010, 48 percent of the manufacturing jobs in the state of Michigan were lost.

    #9 There are more than 85,000 streetlights in Detroit, but thieves have stripped so much copper wiring out of the lights that more than half of them are not working.

    #10 The unemployment rate in El Centro, California is 24.2 percent, and the unemployment rate in Yuma, Arizona is an astounding 25.6 percent.

    #11 It has been estimated that there are more than 1,000 homeless people living in the massive network of flood tunnels under the city of Las Vegas.

    #12 Violent crime in the city of Oakland increased by 23 percent during 2012.

    #13 If you can believe it, more than 11,000 homes, cars and businesses were burglarized in Oakland during 2012. That breaks down to approximately 33 burglaries a day.

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  21. Thx Kli. I'll bet Joe traded the heck out of MUX and PPP today. Let's hope this holds, but realize as he said, HUI could test that 250 again. Just as a sidenote, it fell to 155 intraday in '08 and closed that day at Joe's 190. I would wager more than 1,000 living in those L.V. tunnels--it would not surprise me. Best and GL to all. Enjoy The Creature Jay.

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  22. http://firstread.nbcnews.com/_news/2013/04/24/17898376-as-she-weighs-a-presidential-bid-clinton-set-to-cash-in?lite

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  23. Replies
    1. but didn't you get the memo we're growing and doing better
      #14 As I have written about previously, there are only about 200 police officers assigned to Chicago's Gang Enforcement Unit to handle the estimated 100,000 gang members living in the city.

      #15 The number of murders in Chicago last year was roughly equivalent to the number of murders in the entire country of Japan during 2012.

      #16 The murder rate in Flint, Michigan is higher than the murder rate in Baghdad.

      #17 If New Orleans was considered to be a separate nation, it would have the 2nd highest murder rate on the entire planet.

      #18 According to the Justice Department’s National Drug Intelligence Center, Mexican drug cartels were actively operating in 50 different U.S. cities in 2006. By 2010, that number had skyrocketed to 1,286.

      #19 Back in 2007, the number of New York City residents on food stamps was about 1 million. It is now being projected that the number of New York City residents on food stamps will pass the 2 million mark this summer.

      #20 The number of homeless people sleeping in the homeless shelters of New York City has increased by a whopping 19 percent over the past year.

      #21 As I noted yesterday, approximately one out of every three children in the United States currently lives in a home without a father.

      #22 In Miami, 45 percent of the children are living in poverty.

      #23 In Cleveland, more than 50 percent of the children are living in poverty.

      #24 According to a recently released report, 60 percent of all children in the city of Detroit are living in poverty.

      Delete
    2. #25. I think I'm gonna Puke......

      http://abcnews.go.com/m/blogEntry?id=19035790&ref=http%3A%2F%2Fwww.drudgereport.com%2F

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    3. yeh tom........he's runnin' in spite of what a mess shrub made of the bush name....of course he will win also and we will have another puppet for the puppetmasters......its all written

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  24. I know this is a sick-type comment. But, don't you think that is part of "their plan"--ie., create poverty and then get the inner-city youth/gangs to shoot and kill each other?

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    1. Their plan always entails divide and conquer as a part of control......pitting one group against another....always a yen and a yang ...but unfortunately when that gets carried to pitting nuclear world powers against one another then it becomes a way to reduce population worldwide from 7 billion to 1 billion. Having run an inner city trauma center I can tell you without a doubt the crime is virtually one hundred percent gang/drug business related....black on black or brown on brown or a mix of both.....and it has been that way for the past three decades

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  25. Yes Dr. Kline and that is Never, Ever addressed by the pols.

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    Replies
    1. Yes it is hehehe.....they pay private contractors and private prisoners to house millions of the urban drug trade in the prison industry.....while trafficking in the narcotics themselves

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    2. Don't forget they also allow the Banksters to profit by washing all that cash profited from allowing the illegal drug trade while robbing the pawns of property & their share of the profits via RICO statues..... Yet they give Big Pharma all the protections necessary to hook millions, Oxycontin anyone.......

      What a fkn Racket!!!!

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  26. Rickards talking about a European rate cut early next week. Could be that could be used to rally the dollar while knocking the legs from under gold/silver again - add in a couple (or 10) of consecutive daily margin hikes on PMs and we may yet get to see gold sub $1k. I can only hope:) JD

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  27. 1k might be fine but by the time it gets there and if you can purchase a few coins, the premiums just might be $ 200 per ounce..... So why wait?

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  28. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/25_Sinclair_-_This_Is_The_Beginning_Of_The_End_For_The_Gold_Shorts.html

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  29. http://www.politico.com/story/2013/04/obamacare-exemption-lawmakers-aides-90610_Page2.html

    Hypocrites of the highest order...Congress and aides trying to duck out of obamacare...

    hoocoodanode...

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    Replies
    1. And that is a Revelation??? Dirt bags the whole lot of um!

      Delete
  30. KLI: Why is gold skyrocketing all the sudden?

    Gold
    1,452.50
    29.00
    +2.04%

    Last week they cleared out all the stops. This week they are clearing out all the shorts. Do you think the dive last week was just am manipulative bluff to get timid to fold their hands?

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    Replies
    1. Yes I do Jay...but the question is was it THE bottom....IF it was THE bottom then will we get a V bottom or a saw tooth high volatility trading range bottom before ripping to all time highs

      Delete
  31. http://blogs.marketwatch.com/thetell/2013/04/25/spanish-frustration-boils-over-as-protesters-plan-siege-of-congress/

    Spain about to get interesting..

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    Replies
    1. Spain is in FULL collapse but nobody seems to know or care....its like a massive fuel dump about to explode

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  32. Congress & aides get exemption from Obamacare--another unreal situation; Washington area airports not affected by sequester; and on & on. Elites v. sheeple. They are sooo much more important than we are. This is definitely the end of this cycle at least.

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    Replies
    1. sister: I saw that story about congress and aides getting exemptions from Obamacare. Despicable!!!!

      They make us peasants suffer under one of the worst health care plans ever devised. While they go about their merry way.


      ...one Nation under Elites, indivisible, with liberty and justice for all that are in power.


      Delete
    2. Congress and their aides are just common criminals FOR the elites.....the elites could care less about being exempted from any healthcare plan and use congress just like they use the supreme court and the president

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    3. No worries folks seems we're gonna get another Bush to straighten things out! Ugggghhhhh......

      Hate to say it but there's no hope with out a reset......

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    4. "there's no hope with out a reset......"

      quote of the day.

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  33. Kli - why are you insulting common criminals?

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  34. Looks like they do tend to flip the President back & forth between Democrat & Republican pretty consistantly every 8 years. It's not perfect, but close.

    So, maybe it will be Bush #3. 3rd time's a charm.

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  35. Replies
    1. KLI: I hope you can explain what we've seen in the gold markets the last 2 weeks. You've been playing this game a lot longer than me. What the heck is going on? Can Elliott wave principle explain this?


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    2. No it cannot.......paper gold price under pressure from enormous physical buying...their attempt to kill the sentiment has backfired and they're in huge trouble......they DO NOT want to give up their physical.......and they're running out of other people's allocated physical......SHTF scenario developing

      Delete
    3. This is a very simplistic answer but physical bullion has always been the limiting factor in the paper manipulation game.

      Delete
    4. http://www.zerohedge.com/news/2013-04-25/jpmorgans-eligible-gold-plummets-65-24-hours-all-time-low

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  36. gold moving higher again tonight. this is becoming an impressive rebound. I starting to think this is more than just a deadcat bounce. I am starting to wonder if this move has real legs to run. good luck everyone!

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  37. Soc. Gen now says gold $10,000, s&p 450. Weren't they the ones just saying $1,000? What's a "zero" among friends. http://www.mining.com/socgen-repeats-gold-price-at-10000-call-49933/ I'm pretty sure Michael Lewis' book Boomerang says they are insolvent.

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    Replies
    1. Be aware all large commercial banks are insolvent, but that does not mean they will be defaulting......Fed will print for them and prevent their balance sheets from ever being exposed......reset will be needed for them to resume loaning when the time comes.......

      Delete
  38. 26. Brrrrruuuuppp.... I did it again!

    http://www.breitbart.com/Breitbart-TV/2013/04/25/BUSH-In-The-End-Leaders-Are-Defined-By-The-Convictions-They-Hold

    Yeah right wish he had some for Liberty, Freedom and the like

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  39. this should provide some diversion

    http://www.zerohedge.com/news/2013-04-25/syrian-incursion-imminent-hints-current-us-naval-positions

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  40. Not that things aren't really, really bad already. Here are some signs that child hunger in America has already started to explode...

    #1 Today, approximately 17 million children in the United States are facing food insecurity. In other words, that means that "one in four children in the country is living without consistent access to enough nutritious food to live a healthy life."

    #2 We are told that we live in the "wealthiest nation" on the planet, and yet more than one out of every four children in the United States is enrolled in the food stamp program.

    #3 The average food stamp benefit breaks down to approximately $4 per person per day.

    #4 It is being projected that approximately 50 percent of all U.S. children will be on food stamps before they reach the age of 18.

    #5 It may be hard to believe, but approximately 57 percent of all children in the United States are currently living in homes that are either considered to be either "low income" or impoverished.

    #6 The number of children living on $2.00 a day or less in the United States has grown to 2.8 million. That number has increased by 130 percent since 1996.

    #7 According to Feeding America, "households with children reported food insecurity at a significantly higher rate than those without children, 20.6 percent compared to 12.2 percent".

    #8 According to a Feeding America hunger study, more than 37 million Americans are now being served by food pantries and soup kitchens.

    #9 For the first time ever, more than a million public school students in the United States are homeless. That number has risen by 57 percent since the 2006-2007 school year.

    #10 Approximately 20 million U.S. children rely on school meal programs to keep from going hungry.

    #11 One university study estimates that child poverty costs the U.S. economy 500 billion dollars each year.

    #12 In Miami, 45 percent of all children are living in poverty.

    #13 In Cleveland, more than 50 percent of all children are living in poverty.

    #14 According to a recently released report, 60 percent of all children in the city of Detroit are living in poverty.

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  41. I realize the following is purely anecdotal on my part but what I observe with kids in the majority over the past 10 years is they are obese and out of shape for their age. I’ve been blessed with very athletic kids and sit at many sports venues both locally and regionally and do get to see a pretty broad swath of kids and even at the college levels I am surprised at the BMI’s on a lot of them. Even locally dropping one of my kids off at school I am amazed parents would allow their kids to get into the shape many of these kids are in. It’s one thing when your middle aged and letting yourself get sloppy but it’s another thing entirely to be that way when you’re supposed to be in the prime of your youth…. So from my observations I do not see much of what you posted, I actually see the opposite and really chitty parenting!! JMO…….

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    Replies
    1. your region remains economically strong relatively speaking ...I have experienced first hand the incredible behind the scene poverty in my local public school system....truly shocking

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    2. My area seems more middle of the road ......we had many friends that were multi millionaires in this area now only making ends meet after BKs ......

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  42. I read last night that Gold will start running into resistance in the 1500-1550 level. The buying of Physical has been brisk, but as the price keeps rising higher, the buying may trail off. I am wondering if the shorts will come back on board at this 1500-1550 level, and eventually force the price back down even lower.

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  43. Well, I know nothing but would not be surprised to at least see a retest of the 1320 level Doc.

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  44. Spot platinum now more than spot gold.

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  45. Droke is VERY bullish on gold and miners longer term but feels that a retest of the lows or even a lower low in the near term would be very normal.......He is NOT PREDICTING only providing it in his technical analysis......so just be prepared it could happen in the near term and would still be bullish

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  46. http://dollarcollapse.com/precious-metals/catherine-austin-fitts-another-gold-smackdown-coming/

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  47. Here's the flash crash to get things started.

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  48. Plus, they do this during lunch hr.(11:30-12:30) when volume is extremely low.

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  49. this is fascinating

    http://www.brotherjohnf.com/archives/161712

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  50. OK, during lunch when there's NO volume...folks can now see my tin-foil hat beneath my hair, lol.

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  51. those without physical....will be without

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  52. say goodbye to ammo and July 4th fireworks

    http://www.shtfplan.com/headline-news/they-come-for-the-ammo-new-bill-would-require-background-checks-for-explosive-materials_04262013

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  53. gold about to turn green ......Hmmmmmmmmmm interesting

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  54. Matt Taibbi - Rolling Stone Magazine April 25th, 2013

    . "Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world's largest banks may be fixing the prices of, well, just about everything."

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  55. http://www.rollingstone.com/politics/news/everything-is-rigged-the-biggest-financial-scandal-yet-20130425#ixzz2RZf9ntCE

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  56. I checked gold a couple hours ago and it was 1480

    Now: 1458

    What happened?


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    Replies
    1. Don't know what you're checking.....gold was beatdown 2 hours after market open and has now recovered much of the beatdown.....miners also somewhat recovered.....next week might just be a shocker folks......

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    2. when they cash out the COMEX longs settled in Cash it will come WITHOUT A WARNING...this weekend is as good as any

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