Sunday, March 31, 2013

HOW LONG?

Many of the most astute followers of the current monetary/financial crisis are asking the same question. How long? They are in agreement the system will need to experience a Cypriot-like shock but they cannot determine the timing. Terminally damaged but still maintaining the illusion of health makes many Westerners believe they will be able to see the warning signs of the Tsunami before it hits. Unfortunately for the West if
Too Late
the Quake that caused the Tsunami was so far away, that the tremor was not perceptible then no warning may be given short of seeing a rapidly receding tide minutes before the 40 foot wall of water comes on shore. Before the metaphors become mixed lets just look at what happened during the last three weeks. A clear, unambiguous message should have been received. Deposits sitting in banks are not safe. Once thought to be protected by law and CERTAINLY protected by the Central Bankers to protect the illusion that the banking industry was the ultimate safe haven for your money (not gold)  in a ZIRP environment changed suddenly three weeks ago. 

Numerous forces are in play at this time and a battle for global supremacy is in play. I have mentioned here several times over the years that the East is on the other side of the Gold and Silver trade as they prepare to be in position as the shift away from a dollar reserve currency world plays out. There is just no way the East allows the USD to maintain its parasitic stranglehold on the rest of the World. Right now we have managed to keep the USD tacitly as the World's reserve currency because we have been not only printing here to support our bond market but we have been sending USD by the TRILLIONS to overseas Central banks to prop up their debt and their reserves. That's correct...your very own Fed is sending your currency backed by YOU to such entities as Somalia, Pakistan, Afghanistan, Iraq, all of Europe.........and on and on. You may think NOOOOO. That's not legal. Think again. Trillions have been rolled overseas to maintain the entire debt equation and illusion that the 1.5 Quadrillion derivative backed debt hole is sustainable.

Time has run out and the game is over. The 120 year Supercycle/ Kondratieff Winter is now coming into its final deflationary wave as evidenced by the VERY PUBLIC AND VERY ADVERTISED Cypriot debacle. That was your signal if you were one of those waiting for an obvious signal. The fuse is lit and its undeniable so don't ask me IF but ask WHEN. That is not known, but most likely we are into a weeks or months countdown. Pay attention to which countries are next and how long before they begin to roll them out. IF they take out Slovenia and Malta as they have already advertised then you can still count your time in weeks at least maybe months. That means they are still tweaking the takedown and you have a little time. Just be aware, when they pull the chord there will be very little time to access your accounts. Watch closely for more stringent capital controls being instituted in larger Euro Countries. This will signal a more rapidly approaching breakdown indicating you may only have days in the other Western countries. 

The East has already begun their alternative to the USD and is fully prepared to implement a reserve status system. If they fully implement this system  then upon that announcement it is most likely too late for you to move on your accounts. Game over check mate. Of course we can experience some time of "major event" .....created or natural that will provide and overnite shock and that will have no warning given. For now live the illusion you can divine a "warning" and get out. My bet is we don't get it. gl


Tuesday, March 26, 2013

PONZIMONIUM!

That should aptly summarize the current state of affairs for the Madoffsky ponzi called the Eurozone. "We're from the Union and we're here to fix you".....a new twist on an old line but oh how appropriate for our current predicament. As Trillions of dollars are printed yearly in the U.S. (some estimates are over 6 Trillion/yr now) to give us a meeger 2% GDP growth.....we celebrate our "recovery". We celebrate our housing recover as millions of single family homes fall into the hands of hedge funds giving the impression that "people" are once again living the "American dream"....instead of the truth which is funny money in the hands of bankers is picking up still over-priced real estate just to find a home before the plug is pulled on the printing press. Of course the reserve currency can sustain the "Grande Illussione" much longer than the Eurozone. We are a single monetary/political unit designed to keep the game going much longer than the European central bankers. Of course what the CNBS presstitutes fail to mention in all of the current hoopla regarding the housing recovery is just how terrible this illusion REALLY IS. Why you may ask is this terrible? It is pure and simply perpetuating what got is into trouble and that is MALINVESTMENT.

Blashphemy! How dare one criticize our dear housing recovery. Think of all the Real Estate agents and builders and laborers and Home Depoites that are thankful to have a job tonight. Sorry to give you this news sheeple dip swallowers but a "housing recovery" is an illusion created by Ben's malinvestment. Its built on quicksand and has the life-span of  a knat. If it makes some of you feel there's a future in this strategy then gl with that Netflix you're holding. Instead of a long term plan to rebuild our economic system with honesty, transparency, and true CONfidence we are reinflating a housing bubble that can't be reinflated but it at least keeps the banks that put us in the hole looking like they are solvent. Forget our infrastructure collapse. Forget the roads, bridges, railways, and crumbling educational system.

Let's jump back to Europe. You don't get it do you?? Why would they make these "mistakes"? Why pull the rug from beneath the whole CONfidence game with this awkward Bail/in/out of tiny Cyprus? Maybe this is all a blunder on their parts. Inept technocrats stumbling through a series of incredible mistakes that have now placed the VERY ESSENCE OF BANKING AT RISK. Maybe.......but let's look at this from the standpoint this premise is the case. If so....then rest assured this game is over. Most of you think I mean it ends here and now.......maybe....its really very possible and if you were smart, you should have already taken precautions WHEREVER you live. Contagion is funny thing......its hard to predict but when it happens it tends to spread much more rapidly than anyone "could have predicted". I am NOT predicting CONtagion right here and right now but I am telling you that Cyprus has "lit the fuse". I do not know if its a few days or a few weeks, but I have concerns this move can escalate beyond what the media is having you believe.

The other concern I have is that the above premise is wrong and this is engineered, and this is what I believe to be the case. I won't go into any detail on the motifs, but the outcome remains the same......CONtagion and fear. Never let a good crisis go to waste. Finally...watch the "Capital Controls" ....its VERY important in the short term and long term......its like trying to "Price Controls" to control inflation that were imposed by Ford in the 70s.......it opens tremendous risks all over Europe. Pour this poison into the European system and watch it die......gl





Sunday, March 24, 2013

GET OUT!

Cypriots yesterday
And STAY OUT! At least that seems to be the feeling of the mob. Whether or not the EU is willing to collapse their stake in Cyprus hinges on whether the PTB feel they've milked enough from the peeps. One thing is certain, the damage to the delusion that your bank protects your accounts has been destroyed in the peripheral countries of the Eurozone. There are no doubt bank runs occurring in every peripheral country in Europe now. Slovenia is in a bank run now and will require a bailout soon. Contagian is a bitch. Their is very likely a large amount of IMF money needed to put a plug in this leak and it will be on its way which means more Fed printing. Of course this information will be on the "back page" of the "Bail In" deal. 

This deal will be spun as "another save" and lauded as "inventive" and important as a resolution to the "banking crisis" that really wasn't a crisis just prior to it becoming suddenly a crisis. Here is the bottom line.....The Eurozone MUST save the CONfidence factor by insuring the under 100K depositors with the "deal". THE PROBLEM IS.........they already let the genie out of the bottle with the initial "bail in deal". Peeps are now clued in....and know the bankers will steal their accounts. The most conservative investment in the Peep's mind was "money in the bank" and now that is no longer safe. What would you do next week if you had money in the peripheral country's banks? What do you think the Banker's will do? 

 Here is the key....They (bankers) will implement CAPITAL CONTROLS. They will have no choice or it will make a giant sucking sound as money from every account in Cyprus evaporates in a blink of an eye. Remember....."fiat" is "digital" now.... But it gets even better. Watch for the contagian and this is why there is fear in the heart of all the bankers tonight. If this genie is working its way out of the other peripheral accounts tonight then money is moving into every safe haven available and out of the peripheral's banks. This instability is disastrous if it develops and "capital controls" will be evident fairly rapidly outside of Cyprus. This will require the headline price of gold to be held in check tomorrow. Let's see how it holds.

MSM will be painting this with every coat of candy cane pink they've got tonight and tomorrow. Rally caps on gang. gl


Thursday, March 21, 2013

WE STILL SAY NO

cypriot protestors
As police search the home of the IMF chief Lagarde , the peeps form lines at ATM machines not only in Cyprus but across the peripherals of European Banks trying to get their savings before the next door closing. A collapse in CONfidence was always the game changer to be avoided for the fiat masters and whether this was a planned implosion or just a clumsy. arrogant move on the money masters does not really matter. We will never be allowed to know.  Its results are the same. The fuse is now lit and its just a question of time before the next crisis ignites.

The mid-March lift off for PMs appears to be taking place but be prepared for the pattern to shake you hard. The bigger prediction that should matter is the coming of warmer weather and the unrest that comes with it in these countries in crisis. 50% and greater youth unemployment in the peripheral countries of Greece, Spain, Portugal, Italy, Bulgaria etc......leave a lot of potential trouble developing on a Continent in shambles. Where will the next eruption come from? That IS the problem. Putting out fires has been confined to Greece but simultaneous meltdowns across the peripherals now come into play. Banking contagion may accelerate with the precedent set in Cyprus by trying to raid the depositors.

Even if Cyprus ends this crisis by closing a deal with the EU, the damage has been inflicted. IF the solution is to close the banks in question and make the "small" depositors insured "whole", it still leaves CONfidence mortally wounded AND the big money destroyed........Big money all over Europe is exiting and will continue to exit their deposits. Many of them did not get the big money by being stupid. Fool me once shame on you.....Fool me twice....Shame on ME!!

Analogies continue to crop up to the late 70's and early 80's period. I listen to many pundits on CNBS and Bloomberg comparing this situation and its potential resolution to that time period. I am here to tell you there is NO comparison. We had virtually no debt compared to now. We had the preeminent manufacturing country in the world. Our demographics were in much better shape. Our personal debt was miniscule. People saved and had savings to survive for months if they lost their jobs. Severe stagflation marked that period and if we entered that now, we would collapse. There is no room in budgets to withstand it. If we have to raise interest rates to stop stagflation this tiime.....then the entire system collapses with just a couple of percent. Its all mathematics. Its trouble folks. Big trouble. We had the rule of law then. We had a balance between the haves and have nots. We had regulatory bodies that had some restraint on the corporatocracy. But eventually through a carefully orchestrated program, the public was dumbed down by repetitive cliche phrases like trickle down and free market capitalism........the rest is history. Greed and "want" won.
Joe sent these notes he found from Sinclair's conference:
1 – When asked about keeping gold outside the US – he answered almost all his Gold is outside of the US – its in Africa..

2 – Markets revalue ccys on a daily basis & this will continue for the dollar. In his view there will not be a official devaluation, they'll just continue to cheapen quietly as they have over the past decade..

3 – He definitely follows some sort of cycles, and certain numbers are significant (this is out of my wheelhouse but I took note anyway) He believes Gold to 3100-3300 is a minimum & will occur between 2015-2017.. He believes the ccy crisis/end game will all play out by 2020-2021.. At that point gold will have settled in @ 4500 or so & we'll have to move on w/ our life..

4 – He doesn't love the CAD, but if you must hold ccy exposure in your portfolio he'd prefer a resource ccy like the loonie..

5 – He doesn't believe that Silver has monetary characteristics, and therefore wont maintain its price rise, although gold will. .He doesn't believe is Silver monetization

6 – Current financial system is like Sodom & Gamorrah (but less fun) – However, don't extrapolate into perpetuity – Things change/cycles change/ and things will be different in the future –

7 – Ponzi schemes can work! – If they are accepted by the public..

8 – Silver could hit 100 in a speculative frenzy, but he doesn't believe it would stay there.

9 – You wont be able to break the Dow due to the enormous liquidity..Buy pullbacks, it will be going higher… Its overbot & could have a sharp pullback short term, but its a buy.

10 – For the youth – if you want a job in the future, become a geologist, a good one..

11 – He doesn't buy these FDIC insured Gold CDs.. Like any other insurance, you have counterparty risk.. Buy the physical

12 – Doesn't like the Perth Mint – Cost of moving from unallocated to allocated is way too high

13 – Gold Co's in the 1950s were yielding 15-20% – they were utilities.. He believes they should be/will be again..

14 – He's bullish gold stx – hugely undervalued, beaten down – Buy whats cheap, not whats dear..

15 – Central planners actually believe they can pull this off & land this plane.. They believe the economy will recover to bail us out, & they'll simply let the securities they've bot mature… Bernanke is a academic, so he doesn't understand how the real world works.. He believes he's right w/ all of this QE..

16 – Bernanke did save our a$$ after Lehamn.. If he didn't act as he did, we'd all be living in a cave as it would have been a absolute catastrophy.. The error has been to continue it this long

17 – No exit to QE – No end in sight because there is not a true recovery..

18 – Bonds wont fall, yields wont rise because Ben can buy them unlimited & he will..

19 – Someone asked why Sprott doesn't go to the Comex for his 2b in Silver & break the manipulation – Sinclair said he wont do it, because "he's a gentleman" He wont "break the playing board" – there is a ethical code amongst these giant players.. He wont break an exchange, because the entire system would then be against you.. Nobody will do this.. They/We wont get this, we wont get instant satisfaction like that.

20 – End of this crisis will come in 2021 – Move on to something else like education or real estate.. Become a doctor or lawyer, or plumber – develop a trade.

.



Tuesday, March 19, 2013

NYET...NOT SO FAST

Tonight many pairs of soiled underwear of Cypriot Politicians are being cleaned and preparations for funerals are in full swing. Caught between the crossfire of the will of the European banking cabal and the Russian KGB Oligarchy is never a very comfortable position for anyone, but it is certainly becoming beyond uncomfortable for the Cypriot Pols. Perhaps the corrupt money laundering haven gave the Cypriot elite a very nice lifestyle and provided a feeling of invincibility from the laws of nature....but getting caught between a global battle of titans can make even sovereign authorities have nightmares. Cypriot Pols know very well the consequences of crossing either side of this war......slow death. I have hears several possible explanations for the EU deciding to make this play on Cyprus ranging from incompetence to massive greed. I do not know the answer but I would certainly need to consider that some very bright people know that Russians have much more than the MSM stated percentage of 30% of Cypriot Bank deposits. Since the bulk of the Russian deposits are maintained in secret, estimates are they could be 10 times the estimate even higher. It is a rich source of capital for a system in dire straits. It also coincides with the escalation of Syrian hostilities and alleged Chemical weapons use today. What does this timing portend? You draw your own conclusions but consider what close to one trillion in frozen assets could do to a country like Russia.

These actions are potentially miscalculated blunders by the cabal, but given the methodology and long term chess games, I suspect it is all intended for a given purpose. If it were a blunder, the MSM (owned by the Cabal) would not be keeping it on the front news burner pushing the "panic button" all too frequently. So for now I tend to look at this as a direct provocation AND body blow to the Russians and their banking system. It certainly provides some strengthening to our bonds and the dollar at a critical juncture. Do you really believe they can't get these banks opened?

The effect on bullion cannot be underestimated. It has become very clear there is very little reason to trust banks and money will move into bullion in massive quantities. Remember this a  spectacle to view.....like a bizarre real time movie....but this is real. Keep in mind that your own preparations are all that you can do for your family. They don't want to hear your gloom. They want you to be positive. So be positive. Think what is really important in life and do it. gl





Sunday, March 17, 2013

CYPRUS!!

CypRIOT
The other white meat.....or....."Stop boiling the Frog and Just Crank up the heat". Is this their shock move? Or is this a rogue political schlock stumble. Either way it puts serious fear back on the table and runs the risk of exposing the peeps to the danger of fiat. On the other hand there are a multitude of benefits for the USD in the short term and their Dark Shadow Monster .....US Treasury Bonds. It also provides Ben the perfect opportunity to print an incredible amount of back door USD to Europe. DO NOT UNDERESTIMATE the need for your real power to do this. If Germany really is holding the printing machine at bay in Europe, then Ben has the perfect opportunity to bail out Euro banks with massive USD under the guise of "panic" in the very near term. This will ultimately cause a reversal of the short term dollar pop gained from these Cyprus headlines. Of course most of you are worried about tomorrow's price of gold and the miners but that is not the issue here at all. It is there price next month and next year and so forth. I am offering you the game options because I want you to understand how this may play out. In fact be prepared for even a gold beatdown NEAR Term to show you it is NOT a safe haven. It really makes no difference there will be massive physical bullion buying on the London markets tomorrow.....no matter what the spot price paint is....AND THAT IS THE GAME.

Now back to the Panic at hand. I had a busy five days but managed to get a feel for some of the overseas reactions and this is my summary. For whatever the reason this Cyprus event occurred the facts are it is creating a crisis environment. You will know if it is intentional on the part of the true power by the way it is treated overnite and Monday by the Financial Media. If the crisis atmosphere is fanned then its purposeful they will be fanning the fear atmosphere and expect volatility to escalate in the near term. If the general response from most pundits and anchors is to mitigate the effects of Cyprus then expect a VERY quick reversal of the Cyprus event. I think either way they are going to use this to load the short bus up heavy and crush them for a big pile of change. Either way short term we should get some Volatility to trade on. This is where those of you like Chuck and Hubz can catch a quick hit but you have to be VERY knowledgeable about your downside risk. One more caveat..... don't forget the Russian oligarch money in Cyprus banks.....its no small factor.....THEY don't like to be raped and they rape back.

Of course you may choose to believe this is all random events, in which I again suggest you must assess how stable this system really is? Whichever camp you are in.....this really does reflect the fragility of our economic foundation and just how quickly this quicksand foundation can sink underneath of your paradigm. gl





Wednesday, March 13, 2013

I FEEL BETTER NOW SWEETY

Of course things are better and if you don't look to closely and just listen to you MSM pundit then all we have ahead of us are sunny skies. Funny how things were fine all through 2007 and first half of 2008 even though it was clear to a lobotomized turd we were sinking into the abyss. Bear Stearns collapses in March of 2008 and a full frontal assault by the media/Wall Street that all was under control and a vicious counter cyclical rally ensued for over two months with every pumptard on Wall Street proclaiming it was safe for the public to stay in the market. Then with each massive monthly candle down counter cyclical rallies with full blown manipulation including stopping short selling on the financials. The only thing they didn't pull was stopping selling of securities PERIOD.  Thats just how fraudulent that period was. So what was REALLY GOING ON? Its called complete collapse of the system and they helped to engineer it and they benefitted from it. The same is happening now. Its just simply an extend and pretend policy of money printing. NOT FOR YOU sheeple but for the banks and the largest multi-nationals.

You find out your wife has put you 200K in debt and you're a 30K/year worker.....guess what .....YOU ARE BROKE! But what happens if your best uncle gives you 5K to get you through and you hand it over to your wife....GUESS WHAT???  She thinks things are GREAT. Ben's giving you the juice and let me tell you.....IT FEELS GOOD! Like some of you on here I made more money in my business last year than I EVER MADE......and it is 85% dependent on the Government....thanks to Ben the government is still levitating my business. DO YOU NOT GET IT? I WANT THE PONZI TO GO INDEFINITELY from a selfish personal point of view.....but its killing the real businesses and the real economy and I know my days of nirvana are numbered.

I'll be checking in frequently but cannot comment as much during the next four days.....hang in there gang. Just hope that Budfox is right that things ARE getting better and will continue to get better.....wouldn't that be nice.....gimmee another handful of fiat dear.


Monday, March 11, 2013

FINAL CHARGE!

Last Charge
After sustaining a mortal wound, the once euphoric precious metals trade gathered its remaining participants for a last stand against the overwhelming cabalist light cavalry. A once proud trade decimated by the withering day after day beatdown gathered its remaining participants for one last stand. Creating a "broken trade" delivered the fatal blow to many diehard  traders expecting a breakout during the last bounce. Now you have almost complete capitulation with a few holdouts trying not to break ranks and flee. That is how this game is played. Don't just eliminate your adversary but completely destroy them with all of your might. Once you complete your 2 year destruction of the euphoria and made black look like white and up is down and good is evil......then and only then will you release the bondage of the handful of precious metals traders. Your team is locked and loaded for the ride up and the battle scarred PM retail longs left just want to get out with a profit. Can you blame them? If they could file for Post Traumatic Stress Syndrome, many would.

We're not in a new paradigm. Were in the same old wash, rinse, repeat paradigm that has been used for centuries. Some people actually believe that the Jobs report last Friday was somewhat reflective of a recovering economy. How can you possibly not see what has happened. We actually had THOUSANDS of citizens QUIT LOOKING FOR JOBS and just drop out which made it look like there was a drop in the unemployment. VIRTUALLY ALL THE JOBS ADDED WERE PART TIME JOBS! Isn't that precious and you are just expected to SWALLOW IT. How many jobs are being created that pay HALF of what the jobs payed that they are replacing.....in other words......we're getting pushed deeper and deeper into the toilet.

Right now we are still in no man's land. There is no confirmation we've hit a bottom. We ARE establishing a bottom however. They are selectively crucifying shorts caught in the firing zone of SELECTIVE MINERS. One after another I've watched these firing zones erupt for several weeks and they are intensifying in size and frequency. This type of whipsaw is signalling a change in direction and is attempting to dislodge the last weak leaves. Ask yourself how much more can you take? The paper game is designed to destroy you. gll




Sunday, March 10, 2013

PERIPHERAL EUROPE


Bulgarian belligerants
Hundreds of thousands in Sofia and other Bulgarian cities have been demonstrating for weeks culminating in the resignation of Boiko Borisov last week and his center right government. . Protests had escalated into violence with self-immolation higlighting the pain experienced by the high prices of essentials such as utility bills and food. Here is an interesting factoid for you.....the public debt in Bulgaria is LOW compared to most European Union states but the corruption of the business cartels have suppressed wages to the point that essentials are taking their toll on the masses....and we know what masses do when they lose hope.......THEY LOSE IT! 

These are signs of a fractured Union that is increasingly fragile with the financial engineering. The Fed just pumped 100 Billion last month into the Eurozone banking system to keep the illusion of recovery in place...at least for the banks.....but as you can see in Bulgaria even countries with very low debt are being crushed by the stagflation we are exporting with our reserve currency status and its unbridled printing press. Watch the peripheral countries like Bulgaria for a trigger event that lights the match in the Eurozone. Its hard to keep a good ponzi together once it starts to unravel.

Cyprus smoke


Of course we are supposed to believe the European Union is united but within this "unity" there are deep divisions not only between nations but within nations. Cyprus is one such country that has the potential to unravel quickly with the Northern Turkish occupied UDI and the South. The South has political parties and presidential candidates that uniformly condemn the secessionist North controlled by Turkey. Greece and Turkey form the backdrop for Cyprus loyalties and divisions. The fuel that now supplies the unrest is the failing economy and therein lies the Eurozone powderkeg. Of course you are not seeing any of this on your nightly news. But its there. Thousands were on the street protesting against the establishment of the North zone this week....enjoy trying to keep this game together if you're a technocrat in Brussels.

Le grande experiment of world government had better get its act together. Its slipping. Corruption and the loss of the rule of law in these countries is crumbling the foundation of the "experiment". Its difficult for a technocratic, non-elected government to bring any semblance of fairness back to the masses. So there remedy is giving out money in an ever-expanding socialistic agenda. The problem is that the repair is socialistic Corporatocracy....designed to maintain the control of the fascist state. Let's call it for what it is.....a Neo-Nazi-Fascism....and from the perspective of the bankers they are just getting deeper into the hole they are digging for us.

This breeds uncertainty as the Debt Supercycle develops into its Kondratieff Winter. Instability and Wars erupting throughout regions of the World are happening now. You are welcome to close you eyes and your mind but being prepared for rough times can get you through to the "better times" in a much improved position. gl










Wednesday, March 6, 2013

MARIONETTES

We're all dancing on strings. The confluence of emotions such as fear, greed, and anger provide the perfect recipe for the precious metals trade. You may view this trade from your perspective, but remember the trade is comprised of much larger entities than you. Also there is a big difference between the precious metal's bullion trade and the precious metal's equities trade. Unfortunately we do not have a crystal ball to look at the players on our side and on THEIR side, but THEY do. They can see every move you make in this trade....and WORSE they can predict your move and the other players moves....at least from a "Macro sense". And just in case they trip and make a miscalculation they have the tools at their disposal to "correct" course. Much of this is from hundreds of years of human behavioral studies refined and perfected and mathematically applied to the market. It may sound far fetched to some of you that believe there are independent forces that still comprise the market and I understand your hesitance to absorb this....but that IS the game. I have seen these forces in play as many of you have. I have experienced all of these emotions myself. I have been awakened early in the morning by knocks at my door asking me for money to cover a margin call after a position was lock limit down two days in a row. I have awakened to learn my own NON-leveraged positions moved 6 figures against me overnight. I have awakened to learn more than once that I have lost 6 figures because a biotech did not receive approval. Stubborn cannot be your emotion then....you MUST cut your massive losses and move on.

I am not saying that you will lose everytime, but unless you try to understand the game then you will ALWAYS lose in the long run. I was once asked by an elite market participant what the purpose of the stock market was. I knew he was testing me rhetorically but I was surprised by his blunt answer when I asked him the answer.....he replied matter of factly"to take your money". The purpose of the entire market was designed to suck capital from its participants by the insiders. Instead of giving an erudite, complex dissertation on free markets, it was just that simple....a casino. He then went on to explain the nature of human behavior and the interactions of the herd mentality and the use of emotions to drive the herd over the cliff. It was all calculated to appear random, but it was anything BUT random. It was predicted, measured, then executed with efficiency and extreme prejudice if necessary. If it meant taking out a big Hedge Fund then it was done. If it meant destroying an opposing group of Hedge Funds then it was done. Retail traders were the easiest. Emotions of fear or greed could be marshaled through some well placed main stream media stories with the usual cacophony of accompanying pundits to drive home the suckers. Even large trading houses could be played by the same emotions and tactics. If necessary they could even be destroyed. After all, you can only have so many alpha males in the jungle.

That takes me to our current state of the game or more specifically to my focus on the precious metal trade. I noticed the increasing emergence of two emotions recently with this last market takedown......FEAR and ANGER. I am not immune to these emotions but I have not personally experienced much of these over this nasty takedown. One reason is because I prepared myself for it. I have written numerous times this trade was still crowded and they DONT want you in it. I cannot predict the short and intermediate direction in this trade because of its COMPLETE manipulation by the Fed....ultimately I felt my research and understanding of the market could withstand their assault on my position if I was caught in a large position. Nothing is guaranteed but I believe that good miners will become great miners as gold and silver continues its bull run. Can this all go wrong? YES YES YES....you are in a casino and you DONT have to play. In fact you should not play if you can not afford to lose. Anger, fear, greed, are emotions that must be CONTROLLED. NOT entirely eliminated but controlled and understood. Remember NOT eliminated. They can be used to your advantage. I Stubbornly held on to a large position of PPP on its last run from 2.50 to 8 dollars. My GREED existed but was held in check and I exited most of my position at an average over 7 dollars. I am not trading most of my miners whenever this next run comes unless they reach extreme overbot conditions on the daily or weekly. Watch how devious the volatility and moves are. It should be just as diabolical as the last year has been.

There is no shame in getting out of these trades and I fully expect many of you to exit. That's the game. We are in a collapse and I wish that it could be sugar coated for you and sprinkled with pixie dust. If you can't see what's coming after watching Greece, Spain, Italy, Portugal, Ireland, Cyprus etc. then you definitely need to get out of this market fast.


"I believe that uncontrolled basic emotions are the true and deadly enemy of the speculator;
that hope, fear, and greed are always present, sitting on the edge of the psyche, waiting on
the sidelines, waiting to jump into the action, plow into the game."  Jesse Livermore


These were big reversal candles today and many had volume. Should be a nice move ahead but don't expect  it to be easy for you. gl