Sunday, June 2, 2013

THE SYSTEM IS AT RISK

Dissemination of information through the internet does not pose a direct threat to the Ponzi, but it does provide obstacles for them to overcome. In the past the investment community was virtually only Wall Street insiders and "all the rest". All the rest were the sheeple that invested through a variety of methods including mutual funds and longer term individual accounts. They relied upon news letters, and the mainstream news channels for their guidance. These avenues of information were easily controlled as was the market. Technology provided not only obstacles for the boyz but it also provided opportunity. They were able to distort the markets with mathematical leverage vehicles called derivatives. These were impossible to quantify for risk and hidden from the public through a variety of means.  There was always going to be a day of reckoning. The true power that resides within the walls of the homes above knew very well the eventual price of breaking nature's law, and they knew WHO would pay the price. Do you think they sold their gold and hard assets? On the other side of that question, WHO do you think was on the receiving end of the Fort Knox gold.....or the British gold sale at gold's bottom. Those were very large amounts of gold and tracking their movements "should" be easy. It would be diabolical to believe someone has planned these events decades in advance, as though their is some predictability to economic cycles.

Unfortunately or fortunately....depending on your point of view...human behavior is VERY predictable and has been used to "manipulate" markets for hundreds of years. The emotions of greed and fear are as easily molded as a sculptor's clay for the money men. Its almost so predictable that a software program could do it....like perhaps an algorithmic model designed to fleece the peeps on nanosecond levels and beyond. AND the beauty of it is that its all legal.

Money.....what is it anymore? Is it paper? Is it digital? Can it be in your retirement account statement and "virtually disappeared" by either a keystroke or legislative declaration? Is it really money if it exists only in hyperspace? Think about this statement. If CONfidence is all that stands behind fiat. AND the ability to erase fiat can be done NOW with a keystroke....WHAT is the public going to do at some point in time when they realized this? Do you believe that hard assets just might have a future in this digital world? I wonder.

What will happen when bail INS and MF Globals occur again? Is there a tipping point? Will CONfidence be maintained OR is that even the endpoint for them? Perhaps the Wash Rinse Repeat cycle is the goal? Surely not.....gl

82 comments:

  1. Here's a thought, revalue overnight: http://news.goldseek.com/LemetropoleCafe/1370188800.php Such an event would certainly prove your thesis that there will be no way IN if this occurs. GL everyone. Kli, I hope you are safe & sound in Mo.

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  2. I try not to taunt nature and we don't chase tornadoes in my "neck of the woods"

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  3. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/2_The_Global_Casino,_Gold,_Silver,_Energy_%26_Flash_Crashes.html

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  4. Expansion of Strike Listings for COMEX Silver Options...
    Effective this Sunday, June 2 (trade date Monday, June 3), the strike listing rules will be modified for all Silver options (tag 1151-SecruityGroup=SO, tag 55-Symbol=SO) for trading on CME Globex. These listing rules will be modified as follows:
    • Strikes prices will be listed in intervals of $0.25 for ± 20 ATM strike price
    • Additional strike prices with $0.10 intervals will be listed for ± 10 ATM strike price if the underlying futures price is less than $10.00 per ounce

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  5. http://www.bloomberg.com/news/2013-04-15/cme-increases-margins-for-gold-as-prices-fall-most-in-33-years.html

    As the article says, the intended effect is to reduce the swings. "A huge collapse of this kind usually sees CME raising margins to minimize volatility and lower speculation,”

    The Small Speculator is getting boxed out for a time.

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    Replies
    1. I wonder what they see??? hehehhehehe

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    2. This market is the most critical market to the PM cartel in terms of their lack of control.....THEY DONT have the metal to manipulate it like they do the Gold market.......They're vulnerable here

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  6. Well there you have it.....

    http://washington.cbslocal.com/2013/06/03/court-police-can-take-dna-swabs-from-arrestees/

    If you didn't think you live in a Police State after reading that you never will!

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    Replies
    1. Tom, this is really scary stuff. It's like a real life Orwell book.

      The government is controlling everything. How long before they install cameras in our bedrooms to make sure we are getting enough sleep?

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    2. Don't kid your self Jay they are already there....

      Webcams on Laptops, Tablets, Smart Phones and even the new XBox..... Unless you cover the lens you can be recorded and never even know it!

      Face it there is no such thing as privacy any more and we willingly allow it!

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  7. My point in posting about the SCOTUS ruling was really about who voted for and against and the fact they are now allowed to harvest DNA prior to a conviction is all you need to know about where this whole thing is going! On a side note when Roberts was appointed CJ I was naive enough to allow myself some hope for the Constitution but he turned out to be a real tool....

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  8. Speaking of the Tool....

    http://www.cnsnews.com/news/article/irs-cheapest-obamacare-plan-will-be-20000-family

    Affordable Health Care Act.

    Baaaawwwwaaa! You can thank him for this too......

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  9. Keep in mind that there has NOT been one real defeat of the "agenda" ....all of this is controlled.....ALL branches of government are completely controlled....BOTH sides of the aisle....Of course they make it look like there are two sides to the vote...but the outcome is never in doubt

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  10. http://www.zerohedge.com/news/2013-06-03/full-list-2013s-bilderberg-attendees#comments

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    Replies
    1. KLI: Are these Bilderberg attendees part of the cabal?? Is this where the real world agenda is set?

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    2. Bilderberg is a mixture of lesser players designed for several functions to serve the cabal. eg. they like to audition future political players at Bilderberg.....a younger Clinton attended etc......it allows the real power to "take a look" at a number of participants in the "power structure"

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    3. Did anyone take notice of a certain "Retired" General in attendance......

      You know the more you see the more surreal it all becomes and yes I do succumb to the quaint notion at times that some where some how we can find our way back to the Constitution and the founding documents but in reality is just a wish no different than hitting powerball it aint gonna happen but without hope what does one have?

      I guess I'm not ready for the fifth stage of death but Sis is closer to right than I am.......

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    4. David H. Petraeus, General, U.S. Army (Retired)

      Interesting.

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    5. Turbotax Timmy made the list too.

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  11. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/3_Gold_%26_Silver_Soaring_As_Embry_Hits_50_Years_In_The_Business.html

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  12. Repubs purport to be ag. Obamacare, but is anything being done to stop it? I had NO IDEA this DNA case was b/4 the SC. I agree with Scalia who says what's to prevent all newborns from being swabbed? It is officially waaaay too late to escape or change this mess. But, on a different note, what about PZG at close? +12%. This one is super risky since it is exploration only.

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    Replies
    1. yes it is but look at that move......big boyz know something in it

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    2. Paramount Gold and Silver Corp.
      NYSEMKT: PZG - Jun 3 4:02pm ET
      1.68+0.18‎ (12.00%‎)

      Delete
  13. i wake up, turn on Bloomberg news, and their main topic is " Gold Bubble Ready to Burst?". amazing, can't wait to hear what GS has to say about gold. one thing I know, is the mkt cant be too healthy, when the talking heads on tv, say its a " good thing" if the economic is data bad, because it means QE will continue, so buy the market because it will go higher. funny stuff

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  14. Yup its all good......

    http://www.zerohedge.com/news/2013-06-03/18-signs-massive-economic-problems-are-erupting-everywhere

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  15. Top line performance for companies is abysmal and getting worse. Bottom line estimates are carefully managed but even these are now missing more frequently. Its bad and it going to get a lot worse. The question is can they manage to keep it a "slow slide" with the frog staying in the pot. Whether or not we begin eating alpo this year depends more on geopolitical events than money printing. Stay the course with a balance of "denial and reality"....it won't hurt you to be prepared for the end of the Grand Supercycle.....

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  16. Phil Davis wrote today that Margin Debt reached an all time high this April. High margin debt often predicts crashes.
    New money tends to move into the market the first few days of the month,...and the market was up yesterday.

    I sold my FTR position yesterday--only a small gain which was mostly the dividends. Raising some cash.

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  17. My Canadian miner cnl.to (they actually have the gold) +16% yesterday and look at anv today +4.6% so far even with gold and the markets down. Hang in everyone.

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    Replies
    1. selective accumulation and short covering continuing not that hidden now

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  18. For anyone sitting on the fence trying to decide if monetization is working for the 50% of the U.S. now classified as in poverty just take a look at Wal Mart and Dollar General earnings disappointments....this reflects the "recovery" that isn't there. Don't look at this friday's headline jobs number but look under the layers for further confirmation of the slide as MORE and more peeps drop out of the "job market"......all fluff for the fluff fluffers

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  19. I believe that we WILL get a tapering of QE Before October......This will surprise the market and trigger a sell off that will usher in even higher QE/month than the 85 Billion. They will announce that they were surprised that the recovery was not as strong as they thought and still needs help.......so be aware.....This will be nothing more than letting the air out of equities and letting the boyz wash rinse repeat their trades

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  20. Big Short Squeeze on ANV now...+14%. This is the second one in the last coupla mos.

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  21. Wow. KLI admitted that Ben will taper. I better load up on SKF shares now!

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    Replies
    1. it could be as early as the next Fed meeting...but be aware its only to put the brakes on equities if jawboning doesn't work before then....they will do it when equities are at or near highs ....so watch for a very bullish sentiment preceding it. If we get fundamentally terrible jobs report then tapering may be off the table.....whatever happens QE will continue and NOT stop...that's why they call it "tapering"

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  22. Russell also added: “Gold represents wealth. It is the staple around which everything else revolves. Alan Greenspan agreed with this in an article he wrote in 1966. But when Greenspan was chosen as Fed chief, he turned his back on gold in favor of power and prestige and Federal Reserve notes.

    From there, his career went downhill, he's now considered a sad joke. When Ben Bernanke was asked if gold was money, he dodged the question, and by omission he denied that gold was money. This was the beginning of his troubles. He was living a lie.

    When you start with a dishonest premise, everything that follows will fail to work. The Constitution of the United States (Article 1 Section 10) tells us that “No State shall make any Thing but gold and silver Coin a Tender in payment of debts.”

    The Federal Reserve acts on the thesis that their Federal Reserve notes can be used as tender in the payment of debts, a premise in direct opposition to the US Constitution. I see this betrayal as the basic cause for all the troubles that we are now contending with.

    The ratio of debt to Gross National Product in the US is climbing up off the charts. This never could have happened if the gold standard was in use. The US is like a 500 pound fat man who faces the choice of an extreme diet or a lingering death. To actually solve our problem, Americans would have to choose an extreme decline in living standards (and deflation) while at the same time boosting their savings radically. Americans would never submit to a drastic decline in our living standards and deflation. The unappetizing other side of the coin is that we continue to live it up, while China buys up our nation, piece by piece.

    What is the worst possible environment for investing? The Fed has given it to us -- A low interest environment along with an eroding currency. That's what we have now. At present there's no perfect or even a satisfactory investment position. You are not safe in bonds, you are not safe in stocks, and you are not safe in cash. Which is why I choose gold. It doesn't bring in income, but it will be around when everything else is in ruins. And if the whole current house of cards starts to fall apart, chances are that there will be a huge panic to own gold, which is out of the Fed's and the government's grip.”

    Russell had this warning for the silver bears: “Everybody hates silver, and everybody wants to short it. But keep your eye on silver.”

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  23. Equities already freaking out over the taper rumor:

    Dow
    15,118.03
    -136.00
    -0.89%

    Stocks dipped with the Dow set to record its first Tuesday loss in 20 weeks as investors paused before a flurry of data and Federal Reserve speakers that may sway investor sentiment on the possibility the central bank may trim its stimulus measures.

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  24. KLI: The mere fact that Ben would consider tapering before unemployment hit his magic 6.5% number speaks volumes to me.

    This is either 1) A well orchestrated show for the peasants(and he'll increase QE as you said) or 2) He's going to let the market float and try some strange economic system called free market capitalism.

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  25. they are only jawboning now.....and pulling in the shorts for short term squeeze. They can announce taper AND paint a green market to show its benefit. JUST because they announce it does not mean they have to shred the market. Remember..up is down ..black is white...etc.....This is how you hold a system together with chewing gum and bailing wire.....thats all they've got. THINK OF IT....today Dollar General DISAPPOINTS!.....hehehe....the air is gone.....now they've only got the lie.

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  26. Dollar General is for the piss poor welfare crowd. How could they miss earnings when everything is so rosy?

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    Replies
    1. This is the country's future......IF ANY of you think that 50% of our population is now below the poverty line and won't grow then gl

      http://www.salon.com/2013/05/30/half_of_americans_living_below_or_near_poverty_line_partner/

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    2. Dollar General is pretty expensive, it's for those that can't reach a Walmart. The constantly play don't steal messages mixed in with the music. The big thing in my area is dumpster diving, someone got stabbed last month for diving in someone elses turf.

      Kli pretty much nails the wash rinse repeat. Only thing that can go wrong is everyone realizes that all the underlying collateral has been taken private at the same time a major flash crash happens due to an accidental or planned glitch. Most of the 99% are then truly debt slaves without any virtual assets until the game gets reset with the Trillionaires lending out their non-taxed wealth to start the next cycle. Nature might get pissed and wipe most of them out before the cycle restarts.

      Possession is the name of the game going forward.

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    3. rough neighborhood red......hehehe.....but relax.....in a few years you won't need dumpsters

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  27. Hey everyone...Keep your eye on the 10yr....that is key to whole market right now..

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  28. Honest: The 10yr went up a lot in May. Is this the writing on the wall for QE tapering?

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    1. fed needs flight to safety..2.50 10 yr would start eating into the collusionary housing recovery..where wall street PE and offshore hedge companies created by the banks are buying the distressed housing for pennies on the dollar after driving the prices down via bubble lending....no different than dark pools pushing a ticker hard down that they want cheaper than retail....

      The whole system is one corrupt mofo...

      Delete
  29. FWIW, Martin Armstrong's models are showing an up market for quite a while going forward. At least that's the way I read his blog, ahto cannot always see his specific lists (they have a dark background), I will post one and see what others think if Kli approves.

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    Replies
    1. feel perfectly free to post anyone's charts or models

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    2. Well if that's the case the following graph about sums it all up......

      https://i.chzbgr.com/maxW500/2025647360/hE5E6EE9F/

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  30. Thanks Kli. Maybe you guys could help me interpret this: http://i1.wp.com/armstrongeconomics.com/wp-content/uploads/2013/05/DJFOR-W.jpg

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    Replies
    1. That chart looks like something my Commodore 64 might have cooked up.

      :)

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  31. "Money.....what is it anymore? Is it paper? Is it digital? Can it be in your retirement account statement and "virtually disappeared" by either a keystroke or legislative declaration? Is it really money if it exists only in hyperspace? Think about this statement. If CONfidence is all that stands behind fiat. AND the ability to erase fiat can be done NOW with a keystroke....WHAT is the public going to do at some point in time when they realized this? Do you believe that hard assets just might have a future in this digital world? I wonder."

    Good question and Henry Blodget from Business Insider.com has the answer......

    http://www.businessinsider.com/cash-is-a-lousy-way-to-pay-for-things-2013-6


    Yup that's the ticket! "All In" with digital fiat, its really really safe!

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  32. On a more serious note....

    Be very careful if you ever get the chance to play golf with Kli! Seems that his game is rigged.....

    http://www.youtube.com/watch?v=iW_IQDHz4HE

    Heheheeeee

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  33. Can you say Grand Supercycle

    http://www.zerohedge.com/news/2013-06-05/labor-costs-crash-most-four-years-manufacturing-compensation-plummets-7

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  34. Chart: Bloomberg

    As Mark Hanson notes,

    This morning I was made aware that three large private mortgage bankers I follow closely for trends in mortgage finance ALL had mass layoffs last Friday and yesterday to the tune of 25% to 50% of their operations staff (intake, processing, underwriting, document drawing, funding, post-closing).

    This obviously means that my reports of refi apps being down 65% to 90% in the past 3 weeks are far more accurate than the lagging MBA index, which is likely on its' way to print mu

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  35. read closely

    http://www.zerohedge.com/news/2013-06-04/housing-bubble-pop-alert-colony-pulls-ipo-market-conditions-blue-mountain-rushes-cas

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  36. PTB holding spx at 1620-22 I say dive alert. to the 50 day. 1600 ish.

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  37. Bubble Bubble toil and some real trouble on the horizon.

    http://www.reuters.com/article/idUSBRE9320ES20130403?irpc=932

    That and throw in the above miss in labor and the new and improved housing mess.........

    Chit Storm heading our way!

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  38. should have nice read up later tonight

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  39. Tom,

    I find it interesting that the auto dealer/lender accepted that guy's 12 gauge Mossberg as a down payment. That supports the notion that is it best to own certain items that can be used as payment/barter.

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  40. Budfox: Are you still long on equities? Still got your AAPL?


    Dow
    14,989.91
    -187.63
    -1.24%

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  41. http://www.zerohedge.com/news/2013-06-05/179000-each-debt#comments

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  42. Potential Kaboom moment here.

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    Replies
    1. how low will they take it before they squeeze some short money into their pocket?

      Delete
  43. http://blog.milesfranklin.com/1400-is-not-an-important-number

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  44. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/5_Fleckenstein_-_We_Are_Staring_At_Economic_Collapse.html

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  45. KLI: Is this it? The end to the supercycle?

    Or they just corralling the shorts for a massive slaughter?

    I saw an unreal statistic today. Japan is down 18% in the last 10 trading days.


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    Replies
    1. You are in it Jay but the Fed is fighting its impact with printed money and trying to violate Nature's law and the needed deleveraging. It puts us all at massive risk now. The system could/should have collapsed in 2008 but instead we now are going to have a much larger problem with even worse malinvestment created.....this will not end well and DO NOT think for one moment any of us including me should want what is coming....we are peeps and peeps will take the brunt of the coming changes

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    2. BTW the hard down phase begins in mid 2013

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    3. In my opinion, a collapse could be very healthy. It'll be like swallowing a hard pill to kill a disease.

      Sure, it'll be tough for a while. It might even be tough for 20 years. But at least we will be healing instead of bleeding.

      Delete
    4. Jay,

      As Kli pointed out we should have taken our Castor Oil back in 2008 and we may have had a shot but be careful what you wish for because when this goes to hell in a hand basket hope your prepared for Marshall Law because that's what they have been setting us up for since then....

      O man if you really think this through based on everything spoke of here and what we all read and see this will get really really fugly......

      Delete
  46. I really Like Bill Fleckenstein...

    I would think the 50 day gets a challenge. I am thinking the 200 day. There are some fib fans in between.

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    Replies
    1. it will be battle right here at 1607....

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  47. http://news.goldseek.com/ClifDroke/1370457197.php

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  48. new bank guy in Brussels

    Vote up!
    0
    Vote down!
    0
    Hot new fire and brimstone on gold from the magnificent Dr Jim Willie - Some excerpts:

    « Catastrophe in a USTBond explosion and Interest Rate Swap derivative nuclear event. The USFed has no exit available, as all doors are shut, none an option ...

    The aspect Bernanke and his gang of Wall Street bankers cannot anticipate or successfully keep at bay is the attack from the East ... gold trade settlement, the New Gold Trade Standard ... A device has been put in place by numerous nations for trade settlement in barter framework, which has bypassed the USDollar. The Chinese Yuan Swap Facility ... the foundation of a non-USDollar trade settlement ...

    Dr Dieter Spethmann ... former Chief Executive Officer of Thyssen AG ... wrote, "Barter and Gold are identical. People who understand this also understand what barter is. Both Barter and Gold allow for free re-valuation of currencies that are blocked by central banks" ...

    From Antal Fekete "World trade is facing an avalanche-like transformation, flattening out monetary economy into a barter economy" ...

    The Saudis are not in a position to stand as the primary pillar to enforce the Petro-Dollar anymore ... King Abdullah is clinically dead ... the Fall of the House of Saud. With it will go the Petro-Dollar into the sunset ...

    The Petro-Dollar is dead, with the funeral only remaining, and a loud thud. When the Saudis cut certain deals with Iran recently over the natural gas pipeline, they sealed the USDollar fate. The Natural Gas Co-op will be the undoing of the Petro-Dollar and even overshadow OPEC. The maestro organizer is Russian Gazprom ...

    The East is preparing wide channels to send toxic USTBonds back to London and New York, back to the sender ... the BRICS Development Fund will serve as a vast trading house to convert USTreasury Bonds into Gold bullion ...

    The Gold Standard is coming back, but in Gold Trade form ... centered in trade settlement, done brilliantly outside the current system that is dominated by the corrupted London and New York banking elite ... They will drain the West of its gold ... Toxic impaired USTBond debt securities will be returned to sender, the USGovt, in very large volume, which will surely overwhelm the USFed and its Weimar press ...

    Europe ... will turn attention and loyalty to Russia ...

    the USFed has been doing an experiment, to see if the financial markets can endure a USTBond rise in yields ... hey are managing a Live Stress Test ...

    The Gold Trade Settlement platforms assure the higher price, already agreed upon in the grand reset. All is aligned, including the secretive imprisonment of 6000 bankers. »

    http://news.goldseek.com/GoldenJackass/1370376300.php

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  49. Market selling off hard but money is rotating very quietly into many of my miners.....very camouflaged.

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  50. Friday cold make a great trade if they get a really bad jobs number.......perfect set up for an equities squeeze from hell

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  51. Unbelievably, not down that much today...miners held up relatively well. Not sure what happened to the link but will try again: http://i1.wp.com/armstrongeconomics.com/wp-content/uploads/2013/05/DJFOR-W.jpg

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  52. Also, just fwiw looking over my accounts SLW still the best investment for me ever, thanks to you and Joe. I bought some in 2/09 that I am still +55% every yr. (250% total). And the price is way down from the top!

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