"There is a sense that in some very defined and critical way,
the dollar and the
"Risk appetite remains intact overall. The Federal Reserve is likely to be among the last to exit. That means the dollar will stay under pressure to be sold in exchange for higher yielding currencies." -- Tokai Tokyo Securities
"The death of
◄$$$ FOR A CHILLING BUT REALISTIC SCENARIO, CHECK OUT HOW THE DOLLAR MIGHT DIE. IT IS A REALISTIC ACCOUNT THAT IS EXTREMELY CONSISTENT WITH MY VIEW, AND WITH THE PROSPECTS DESCRIBED TO ME FOR ALMOST A YEAR BY CONNECTED FOLKS. GOLD HALTED AT 1500 AND SILVER HALTED AT 80, EACH READY TO ZOOM MUCH HIGHER, EXCEPT THAT THE COMEX AND OTHER EXCHANGES WERE HALTED. $$$
Check out "The Day the Dollar Died" by John Galt (CLICK HERE), a fictional scenario that is rooted in reality, with very reasonable directions. The panic hits next February 22nd. The price of gold & silver based on equilibrium of supply & demand remain unknown for days. Their last known prices are $1500 and $80 per oz, as the metals exchanges shut down. The COMEX reacts to being unable to fill the flood of buy orders, following a $200 move in gold and a $40 move in silver on the previous day. The Euro currency moves toward 200, the Canadian$ over 130, the Aussie$ at 140. The crippled giants Citigroup and Bank of America are nationalized, after a staggering overnight loss to each in the hundreds of billion$. This follows a USTreasury auction failure with chain reaction afterwards, replete with foreign creditor deep resentment and anger. Foreign economies and markets, one by one, begin to refuse USDollars. Closer to home within the United States, the supply chain lacks inventory, no cash in ATMachines, empty shelves in stores and supermarkets, canceled airline flights, bank accounts not quoted, unresponsive internet webpages, stock markets plunging, life savings decimated, as chaos grows. The next challenge: to convert coin to potato. In other words, to begin cashing in on extremely profitable precious metal investments that saved personal wealth, and purchasing life's necessities like milk, bread, eggs, and a chicken sandwich. No need for a movie, since reality overwhelms art.
ME: Bear in mind that the US-UK tagteam is devious and very inventive in their manipulative interventions. They know how to buy time, but they are surely running out of time. The date in my view for the full blown crisis climax will be after February, probably more like June or mid-summer 2010 for a serious breakdown. For certain, the process has begun and is not stoppable.
◄$$$ See the new Hat Trick Letter Special Report entitled
"Global Paradigm Shift Reverberates" for November. Bankers
in charge of their central banks now have a new forum. The G-20 Meeting,
with its near monthly assembly, has successfully displaced the G-8
◄$$$ See the new Hat Trick Letter Special Report entitled "Gold Industry Prospects & Major Miners" for November. South African mining costs are set to jump markedly, certain to reduce output further. The marxist SAGovt plans to impose an electricity tariff increase of 45% per year over the next three years. Mining firm executives describe a gradual crippling of the South African gold industry, with marginal mines shut down. An end to the glory days comes. Worse, independent researchers estimate the South African gold reserves to be 80% less than the figures posted by their government. National output is on a strong decline, worsened by taxes, contamination, and regulations. John Paulson plans a new gold fund, to be seeded by $250 million of his own money. The Central Fund of Canada expanded its stock issuance from 11.0 to 15.5 million shares, and successfully raised $230 million. They will busily buy gold and silver, tilted as usual 55% to gold as dictated in the fund. Investment demand in gold has seen burgeoning growth, while supply is on the decline. Fred Hickey describes investment demand as wagging the yellow dog's tail. Chinese gold and retail jewelry sales are expected to reach $38 billion this year. The Indian Govt gold purchase of 200 tonnes from the IMF is not what it seems. In fact, no official gold story is remotely truthful in recent years. The USGS reports data that indicate the USGovt shipped 2900 tonnes of 'Component Gold' in a single year amidst stone silence in response. This is evidence of closed out official gold short transactions from yesteryear, the USGovt paying gold back from official loans but hiding its trail. Furthermore, the global mine output is 8000 tonnes lower than early 2007, direct proof of my gold inelastic supply argument.
Barrick Gold is replete with perenniel liars. They took another huge
loss, but only one third of hedges were closed out, as they wasted
away $5.1 billion in new funds that further dilute their stock equity.
They remain institutional darlings, evidence of corruption in the
investment banker community. They claim they could not find gold supply,
when they ran out of funds. Barrick President Aaron Regent extols
the prospects of the gold industry. Cited are shortage of gold,
declining mine output, lower ore grades, and mention of 'Peak Gold.'
He must be unaware of Barrick's eventual death throes. He acknowledges
their black eye from hedge book losses, but they will never end.
◄$$$ THE OBAMA TRIP TO
Meetings between US President Obama and Chinese Premier Wen Jiabao
accomplished nothing on currency and trade issues. The principal gain
from the talks was Obama's conciliatory tone that won some praise
from the Chinese state media. The debtor nation guilty of global fraud
should be humble and respectful to the creditor nation. US officials
made frequent reference to 'Global Headline Issues' over which little
progress was made. A steady stream of disharmony could be read between
the lines. In addition to lack of progress on Chinese Yuan link to
the USDollar, the two sides failed to reach agreement on the majority
of Obama's agenda. These included
President Obama and Chinese President Hu Jintao concluded their formal
Chinese leaders accuse the USGovt of protectionism. The USGovt leaders
accuse China of Yuan currency exploitation. On safer topics, some
constructive collaboration might come on agriculture, global health
issues, and counter-terrorism, even student exchanges and military
cooperation. The direction of trade is horrendous, and exposes the
◄$$$ THE BANKER EMERGENCY EXERCISE CONFIRMED. IT DID INDEED
OCCUR IN OCTOBER. $$$ From subscriber in the central
◄$$$ GEITHNER SUDDENLY IS UNDER GREAT CONGRESSIONAL PRESSURE, EVEN URGED TO RESIGN. HE HAS BEEN LABELED PART OF THE CRISIS. HE MIGHT BE MADE THE FALL GUY FOR T.A.R.P. FRAUD, A.I.G. FRAUD, THE RETURN OF THE RECESSION, THE HOUSING BEAR MARKET, AND GOLDMAN SACHS SWEET DEALS. ALSO UNDER SEVERE SCRUTINY IS GOLDMAN SACHS ITSELF, WHICH HAS RESORTED TO TAKING DEFENSIVE MEASURES. $$$
Something is afoot, a broad cloud that has begun to cover Goldman
Sachs. Catherine Austin Fitts pieced together some suspicious events,
to which a couple can be added. Treasury Secy Geithner was swarmed
at a Congressional hearing this week, and was subjected to unusual
attacks. His resignation was demanded by one Senator. See the Business
Insider video (CLICK HERE).
He was put on the spot, asked what his past position was and its bearing
on the banking system breakdown. Geithner tried to paint a picture
that the current credit and banking system problems were the result
of the previous Administration. Yet, the same Wall Street crew operated
seamlessly from the past Admin to the current Admin, and Goldman Sachs
was at the helm at the USDept Treasury before and now, even in the
Clinton Admin. Geithner might, as Fitts suggests, could be set
up to take the fall for the AIG sweetheart deal for Goldman, whereby
GSax was given 100% redemption first in line on Credit Default Swap
contracts held by AIG. It is called a sweetheart deal, when it
was basic corruption of the process. Or Geithner could be set up to
take the fall for a double dip recession, since the shoddy Stimulus
Plan was largely designed, written, and lobbied by his office. In
the last few weeks, a mountain of horrible news has come regarding
losses at Fannie Mae, Freddie Mac, even the FHA described as the new
Subprime Lender. The mortgage bust occurred under his watch at the
New York Fed. Furthermore, look for a very contentious approval
process in the
The Wall Street Journal ran an article with headline of "Fear
of Double Dip in Housing" that paints a bleak picture on the endless
housing bear market. That has been precisely the Jackass forecast
for the last two years or more. One should keep in mind that when
a fall guy is removed, he knows too much. His continued walking and
breathing forms a deadly threat to the syndicate. They usually remove
such threats by the permanent silence process. We are not talking
about exile to the
Fitts continues. Furthermore, a recent Special Inspector General report addressed how Goldman Sachs benefited from its position on AIG contract redemptions. Also, it can be argued that AIG and Goldman were at the heart of the mortgage fraud. The AIG contract redemption deal is possibly connected to collateral fraud in the mortgage bond markets. Then comes the bizarre story totally out of character for a vampire firm such as Goldman Sachs. They announced a $500 million gift to small business. On their advisory board are Bob Litan and Michael Porter, who were deeply involved in the debate about the housing bubble. They are working to assemble the folks who argued in favor of small business in the 1990 decade on their team. The whole thing stinks to high heaven, and reeks of covering their paths. One can safely conclude that Goldman is scared, vulnerable, with feverish actions to defend its gates.
On November 7th, the USDept Treasury led by Geithner turned down
the sale of Fannie's tax credits to Goldman and Warren Buffet of Berkshire
Hathaway. We could actually be witnessing a complex sequence, whereby
Goldman permits attacks on Geithner, and has him removed from his
post. Then the challenge is to replace him with someone with no
Goldman baggage who could cater even more effectively and boldly for
Goldman. Such a deft maneuver might be too difficult to pull off,
as the appointment process and Senate confirmation would be fiery
and volatile, maybe explosive if yet another 'Friend of Goldman' was
marched to the conference table for approval. By the way, Goldman
Sachs has infiltrated the
Another voice with deep banking and international contacts added
some stern but extremely valid points. He wrote, "The noose is
being tightened very slowly and the point of no return has been long
passed. There will be a couple of very prominent players who will
be systematically dismantled and thrown to the wolves. This process
was triggered many months ago when some heavy duty players from North
America went to Europe and asked for political asylum and immunity
in exchange for turning over incriminating and irrefutable evidence
of the government perpetrated fraud, diligently executed by the Wall
Street and City of London banksters. Tony Blair being the most
visible casualty. He had high hopes to be handed the job of EU president
on a golden platter. Then there have been a number of little helpers
been taken out of circulation (like Madoff). Also they have started
killing off people who are termed 'facilitators' to the bankers.
There will be many more stuffed into all kind of meat grinders. It
would not come as a surprise to hear one day that Tim Geithner hanged
himself in his shower at home. All this is not any longer about money.
It is about power and displacement of certain people who screwed things
up doing 'God's Work' for the system. There is a saying in
My view is replete with more practical consequences of when a syndicate
loses power. It tends to unleash a holy hell upon its former hosts
in resentment.Will banker heads roll and bankers be found hanged at
home and bankers seek asylum in foreign nations with stolen funds
(like Marcos of Philippines, like Shah or
◄$$$ SEE A LETTER TO
Ladies and Gentlemen:
Your editorial "The FHA's Bailout Warning" (CLICK HERE) states that the deterioration in The Federal Housing Administration's (FHA) financial position "is the result of the agency's plunge into high risk loans over the last two years." The current problems in the financial condition of FHA and its parent agency, the US Department of Housing & Urban Development (HUD), have older roots. For example, HUD refused to produce audited financials in fiscal 1999 as required by law and used $59.6 billion in 'Undocumentable Adjustments' to close its books. (See the Where Is The Money article if CLICK HERE). At that time the chief of staff to the Chairman for the Senate Appropriations subcommittee overseeing FHA and HUD confessed to me that the agency "was being run as a criminal enterprise." (See the Dunwalke article if CLICK HERE). Understanding FHA's current financial condition requires an investigation of what has happened to the billions that have disappeared through the agency's accounts. (See the Solari article if CLICK HERE).
-- Sincerely Yours, Catherine Austin Fitts (Former Assistant Secretary of Housing & Federal Housing Commissioner under Bush I)
◄$$$ DISILLUSIONMENT AMONG AMERICANS WILL CREST WHEN THE NEXT SEVEN MILLION JOBS ARE LOST. DESPITE A ROSY G.D.P. STATISTIC, JOBS ARE CAVING IN AMIDST ECONOMIC DETERIORATION. ONE MUST BE OF TWO MINDS NOWADAYS. $$$ Charles Hugh Smith identifies the divergence between fantasy of official USGovt economic statistics and the harsh reality we live in. He expects another seven million jobs will be lost in the next couple years. He wrote, "The divergence between the reality easily observed in the real world and the heavily touted hype that 'the recession is over because GDP rose 3.5%' is growing. It is obvious that another 7 million jobs which are currently hanging by threads will be slashed in the next year or two. It is staggering that 7 million jobs lost out of 145 million (the total workers prior to the financial meltdown) has created a 10.2% unemployment rate. The numbers here do not add up that 'only' 190,000 jobs were lost in October, but then employment fell by 589,000. Huh? but the point missing is how many jobs are hanging by a thread." See the OfTwoMinds article (CLICK HERE).
◄$$$ AN UPDATE ON THE DISEASE RAVAGING
The title is not only catching, but seems to be somewhat accurate.
"Armageddon Has Begun" might be more true for
The Head of the Chernivtsi regional forensic bureau in
Bachinsky stated emphatically that this is not pneumonic plague, with no blackness in the lungs. Also, pneumonic plague has a very different morphology. The 60 thousand people who became sick would have resulted in 59 thousand deaths if it were the plague, he argued. This disease is a virus that attacks and destroys the lungs. This strain is very toxic, and if the immune system is weak, there is bleeding in the lungs. In the lungs, bunches of tiny moist sacs (pulmonary alveoli) accept oxygen that enters. On the surface are the capillaries, where red blood cells saturate with oxygen and through blood supply all tissues and organs in the body. Once the virus enters the lungs, hemorrhaging begins immediately in the sacs. A continuous hemorrhage results as several hours, forming a membrane resembling a plastic bag that suffocates the infected sac areas. The person breathes in oxygen, but it is not transferred to the tissues. People just gasp. The cardio-pulmonary insufficiency and cardiogenic shock then arrive, at which time people die of cardiogenic shock. By contrast, pneumonia is an inflammation of the lung tissue, easily treated with antibiotics. Antibiotics cannot help at any stage of the widespread pulmonary virus, which requires an absolutely different treatment.
An interesting comment was made by Bachinsky about abuse of antibiotics, a belief long held of mine. He said, "Antibiotics are the reason we have such a high mortality and infection rate in this country, because people go to the pharmacy, describe their symptoms to the pharmacist and ask for drugs. They buy antibiotics and take them, which lowers their immune system. As a result they become sick easily. If prescriptions were required to buy these medications, like in other countries, this would not have happened. It is the ability to buy antibiotics over the counter without a prescription which has done so much harm to the State."
The latest update regarding the virus ripping through the
FINANCIAL MARKET PERSPECTIVES
The bull market in stocks this decade is all hot air, and bull cookies. Steve Sjuggerud (founder of TradeStops) makes the startling conclusion about the stock rally, bringing in reality. He wrote, "The entire rally in the DJIA from 2003 to the peak in 2008 was actually a continuous decline when priced in gold... Even the super rally in stocks over the last six months is nothing more than a very weak bounce off the bottom." He has a PhD in mathematical systems theory. He determines how many ounces of gold is required to buy the Dow Jones Industrial Average. His conclusion, "From a peak of nearly 42 ounces of gold to buy a share of the DJIA earlier this decade, we made it down to a low of almost seven ounces in March 2009. That is a decline in the 'value' of the DJIA of 83%."
◄$$$ AN UNUSUAL UNEXPLAINED EVENT OCCURRED ON THE FOREX ON
OCTOBERS 27th, WHEN THE
◄$$$ THE H.U.I. PRECIOUS MINING STOCK INDEX IS FINALLY ON THE VERGE OF A BREAKOUT. THE BULL MARKET HAS OCCURRED ALL YEAR LONG, AFTER A SHARP RECOVERY LAST AUTUMN, WHEN THE EARTH STOOD STILL. REMEMBER NOT TO USE THE GOLDMAN SACHS EXCHANGE TRADED FUND (GDX) WHICH IS THEIR TOOL TO SUPPRESS THE SECTOR. A RISE ABOVE 500 MIGHT TRIGGER A SURPRISE BACKFIRE TO GSAX CORRUPTION. $$$
Forecasting the mining stocks will be very difficult. The large cap mining firms will zoom, but not in a way to call skyrocketing. Those without hedge books will thrive like Newmont, while Barrick will wear a scarlet letter of shame and stagnate, crippled by its drain to cover that stubborn hedge book. Some surprises will come for known names, who will admit to having hidden hedge books from past acquisitions or plain lies. The mid-sized mining firms will do very well, especially if they are into production and have adequate funds. The smaller mining firms will be all over the map. Some will do very well. Some will zoom. Some will rise 10-fold or maybe even 20-fold. Some will rise on speculation of takeover by a larger firm. Some will languish amidst conditions marred by scarce funds, as they might take a buyout offer in order to enjoy the ride with a bigger firm and better funding prospects. A wave of acquisitions will identify the next stage. Medium and larger firms will use their higher stock price to go shopping and capitalize on the troublesome financial position of some other firms with good properties and competent management. Those who paint this sector with a broad brush are just plain ignorant, and do a great disservice.
◄$$$ THE BALTIC DRY INDEX HAS MORE THAN DOUBLED SINCE A SEPTEMBER
LOW AND MADE A COMPLETE RECOVERY SINCE ITS DEMISE LATE LAST YEAR.
$$$ The message is clear, that
◄$$$ GOLD INVESTMENTS AND TAX TREATMENT HAVE BEEN ALTERED TO DISCOURAGE GOLD INVESTORS. INSTEAD OF THE USUAL CAPITAL GAINS TAX RATE, THE USGOVT CLASSIFIES GOLD IN ALL FORMS TO BE COLLECTIBLES, LIKE ART WORK AND RARE BOOKS. THE NEW TAX HIKE IS ALMOST DOUBLE THE CAP GAINS RATE. $$$
Never without devious ploys to discourage gold investors, the USGovt
has put in place legal tax interpretations regarding gold investments
of all types. Gold in all forms is considered a collectible, not
a capital asset, and profits are taxed at the 28% rate. Gold is
classified in the same group as art works, rare books, antique cars,
legacy coins, and memorabilia. The long-term capital gain tax rate
is 15% on capital assets, available to those who hold investments
for over 12 months. The dictum comes from the Internal Revenue Service
(IRS), which operates like a sovereign nation within the
Consider the many Exchange Traded Funds backed by gold such as the SPDR Gold Trust (GLD), the iShares Silver Trust (SLV), and the iShares COMEX Gold Trust (IAU). The precious metals ETFunds are set up as 'Grantor Trusts.' According to Barrons, ETF investors are treated as owning undivided interests in the actual metal owned by the fund. Therefore, when an investor profits from ETF shares, the tax code treats that investor as having sold a share of the metal backing the fund, the collectible item. Like other assets, if gold is sold in less than a year, the profits count as ordinary income. All arguments for gold apply to silver and platinum. See the Money Morning article (CLICK HERE). The US Constitution clearly identifies gold & silver money. So taxing it is clearly illegal. Also, the USDollar as constructed is illegal.
GOLD MARKET BREAKDOWN IS NIGH
◄$$$ A WARNING OF GREAT CHANGE COMING, AS THE PARADIGM SHIFT REMOVES THE US-UK FROM PROMINENCE. AMERICANS WILL HAVE MUCH DIFFICULTY IN ACCEPTING A NEW GLOBAL POSITION. $$$
A global consultant involved with gold trade, international consulting, and weekly contacts from several important nations offered a summary of changes coming. It is a wake-up call! He said, "The West cannot comprehend drifting towards unimportance and irrelevance. In most countries there is an absence of an entitlement mentality all Western nations have cultivated for centuries. Just imagine a German-Russian-Chinese-Japanese alliance, which will upset the global balance. Hardly anyone understands what paradigm change is all about. Natural disasters on a cataclismic scale will accelerate change and adjust perception. Nothing will stop that from happening... The BOYZ can do whatever they believe they need to do to keep their heads above water. What they do not realize is the fact that their heads are already 'acquired targets' and in the crosshairs of people who had enough of their fraud, deceit, and arrogance. It is a question of time before they will be disposed of. But that is done, professionals must be positioned to pick up the pieces. This is a complicated and very complex process. It is like a Coup d'Etat. It needs proper planning and execution."
◄$$$ THE BIGGEST GOLD CRIME STORY OF THE CENTURY MIGHT BE SOON
COMING TO FULL LIGHT. EVIDENCE IS BEING ACCUMULATING THAT THE
The salted gold bars are fasting becoming a global crime issue.
Evidence is being gathered by perhaps a dozen key gold traders with
diverse connections to the gold industry. They tie the delivery systems,
the authentication processes, the assayers, record keeping, bar stamps,
financial firm identities, trading platforms, and pathways. Well over
a million bars are suspected of being tungsten with gold plating.
Not only Hong Kong, but now
My view is the story is not only credible, evidence mounting,
but it is the climax to the
Many people wonder how this plays out. Only solid conjecture can
be recounted. These questions have been asked by the Jackass to numerous
connected sources. Here is my best scenario, a likely path. To be
sure, many directions will be a total surprise. Events behind the
scenes, behind the curtains, in the back offices, in the basements,
are happening at a furious pace. As a result of the discovered salted
gold bars (tungsten with gold plating), almost all deliveries from
For some excellent forensic financial analysis on the fake gold project, called Operation Grand Slam, see Rob Kirby's article. It is entitled "On Doing God's Work: Gold Finger, A New Take On Operation Grand Slam With A Tungsten Twist" (CLICK HERE or CLICK HERE), dated 12 November 2009. Also, one week later see the Jackass article entitled "Zinc Dimes, Tungsten Gold & Lost Respect" (CLICK HERE). Past patterns are described for monetary fraud and banker fraud. Coverups from the past are cited, like the Goldman Sachs insider trading software whisked into the closet by the FBI. Very likely, much of the Rubin gold leased and sold for USTBond purchase was phony gold, which proffered the Decade of Stolen Prosperity. For a lighter report on the subject, without benefit of much information, see the article entitled "Tungsten as a Gold Substitute" by Mike Hewitt (CLICK HERE). The contrast in depth is notable.
Editor Note: I stand corrected on the dimes. Dimes are made out of an alloy (a mixture of metals) of 91.67% copper and 8.33% nickel (before 1965, the dime was made from 100% silver). The core is not zinc as stated in my article. The point of fraud is intact, since the dime is silver plated, and its contents are not worth 10 cents.
◄$$$ SOME QUICK NOTES ON LEGAL PROSECUTION, DELIVERY PRESSURES, AND EXPIRATION DATES. EVENTS WILL BE MOVING QUICKLY TO A CLIMAX. THE CLIMAX WILL BLOW UP IN NUMEROUS DIRECTIONS. THE SEQUENCE WILL INVOLVE MANY SURPRISES. $$$
Recall the stories back in April of a Deutsche Bank rescue by the
Euro Central Bank with a very large (over one million oz gold position)
central bank provision made in the nick of time to save DBank from
a default, embarrassment, and maybe criminal prosecution. DBank was
in trouble, and temporarily escaped it. My German sources tell that
DBank is walking dead from years of working in league with the Americans
and British. The pressures are mounting every couple months. The next
delivery schedule is the last 8 days of November into very early December.
Pressures mount for meeting delivery demands. Next March will be a
climax of the breakdown, or else June. A competent source close to
the stressful events at the exchanges said he cannot conceive of the
game lasting beyond June. An eruption comes in breakdown. Each delivery
month event includes more gold removed from the
To compound the stress to exchange officials, the gold futures options expiration date is Monday November 23rd. The Powerz were unable to bring the gold price down below 1100. In fact, on Thursday and Friday last week, the price closed at the high for the day, tightening the vise. The Powerz will be forced to pay out large option gains at a time when gold is in extreme shortage, a burn of their candle at both ends. The gold price typically rises with some gusto immediately after options expiry.
Delivery pressures will be enormous in December. A story has come
to my desk last week, a ripe one. Details cannot be provided in full,
since unknown. So it will be sketched. The illicit games by the Powerz
on inadequate collateral and obstructed delivery are being met with
other strongarm methods. A principal gold clearing house will not
receive 250 tonnes of gold, whose supply is urgently needed to meet
delivery demands at the exchanges. They had expected its arrival,
When the exchanges soon default, strange bogus stories will come.
But law enforcement officials at lower levels will step forward and
take action. Exchange officials will be led off in handcuffs, under
arrest. The exchange officials arrested will be mid-level, intentionally
taken into custody so that they can bring evidence to bear on the
upper level exchange executives. Two decades of fraud, collusion,
regulatory violations, and more are involved. Furthermore, word
has come to me that in August, two dozen high level USGovt officials
and Wall Street bankers approached European Union high level law enforcement
and government officials to seek asylum. They offered boxes and suitcases
full of evidence, documents, and data of a deep incriminating nature
for many years of premeditated USGovt and Wall Street fraud.
The offering was accepted. The EU cops have run with the information,
continuing the investigation. Traps have been set. Trails are being
monitored. Arrests are being planned. This is all in motion. The center
of the law enforcement efforts is the Brussels Serious Fraud Squad,
which is in charge of the case. They operate, as described to me,
as a 'Bottom Up' investigative organization, not closely tied to financial
market regulators. As far as known, the
◄$$$ SOCIETE GENERAL WARNS CLIENTS OF AN UPCOMING GLOBAL FINANCIAL
COLLAPSE. THEY RECOMMEND GOLD AS A SAFE HAVEN INVESTMENT. HOWEVER,
THEIR ANALYSIS IS VERY SHODDY. NICE MOTIVE, BAD JUSTIFICATION. $$$
Société Générale, the giant French bank, has advised clients to be
ready for a possible 'global economic collapse' in their words over
the next two years. They map a strategy of defensive investments to
avoid wealth destruction. SocGen advises bears to sell the
SocGen believes gold is very very cheap. First, they believe the
USGovt figures on gold holdings. The USGovt owns very little if any
gold, having sold it long ago. Second, they use the amount of currency
in circulation for their calculation. The total debt in force might
be more suitable for valuing gold. They write, "So one way to value
gold, therefore, is to ask at what gold price the value of outstanding
central bank paper would be completely backed by gold. The
USDOLLAR AT PRECIPICE, GOLD ON VERGE
◄$$$ THE USDOLLAR DECLINE IS PERMITTED ACROSS THE GLOBE, SINCE
IT LEADS TO RISING STOCKS IN OTHER NATIONS. THEY PERMIT IT ON CONDITION
Niall Ferguson has coined a term to describe the global stock markets,
extended to financial markets. He calls it the 'Chimerica' to describe
a megalith sovereign, joined at the hip. The existence of the beast
depends on the smaller players not defecting, and remaining in tow
forever. The significant other nations tolerate the connection since
their other stock markets enjoy a lift from the falling USDollar.
Those markets benefit from the tailwind positive effects of a rising
S&P stock index in the
◄$$$ GOLD LEADS THE CURRENCIES, CLEARLY NOW. FOR THE LAST TWO WEEKS, THE EURO HAS FOUND RESISTANCE AT 150 A FEW TIMES. GOLD CONTINUES TO MARCH HIGHER. ONE CAN SAY THAT THE CURRENCIES ARE ROTATING IN THEIR WEAK SISTER ROUTINE. THEREFORE, GOLD IN EURO TERMS IS RISING TOWARD A BREAKOUT. $$$
◄$$$ GOLD RESISTS A CORRECTION. WHEN IT DOES CORRECT, THE BOUTS ARE BRIEF WITH STRONG RECOVERY. GOLD ALSO RISES WITH USDOLLAR BOUNCES. THIS IS A DEFINITIVE CONFIRMATION OF AN EXTREMELY POWERFUL BULL MARKET. PUNDITS AND ANALYSTS HAVE DISCOVERED THE BULL AND DEBATE IT. THEY REMAIN SOMEWHAT CONFUSED. IF THEY SHORT GOLD, THEY WILL BE CRUSHED. $$$
The recent daily price action comes when November options expiration is nigh, as in Monday Nov 23rd, the anniversary of the JFKennedy assassination. Deep wounds come to the Powerz, who could not push gold down late last week. They face horrible painful losses from option traders, since the price could not be forced to 1100 or below. The key to the gold rise now is that it makes price advances even when the USDollar manages to enjoy a little bounce. In other words, gold is rising during minor Euro weakness!! We might be witnessing a shift in the importance of the Euro in identifying gold strength. The steady overbought condition is confusing the pundits and so-called expert analysts. They expect a sharp correction. They might comprehend some of the factors pushing up gold, but surely not as many as Hat Trick Letter folks. Some more adept analysts say a perfect storm has hit, positive for gold. They are correct. Regardless, gold should succumb to some selloffs, corrections, and profitaking. But like in the first few days of November, expect the recoveries to be rapid. This is not just a perfect storm, but rather a generational event where the entire global financial structure is enduring a very powerful Paradigm Shift.
Gold has hit my 1130 mid-term target. It endured a little correction
at 1120, which might have been the pivot point. Who knows? One cannot
be too certain about the corrections here. As the USEconomy deals
with the threat of a double-dip recession, further explosion of home
foreclosures, and new commercial mortgage losses, no recovery is in
sight. That is, except of course in the strange world of fanciful
doctored USGovt statistics. A correction here is very possible.
Yet, one must remain clear that the Chinese control the situation.
If a drop in the gold price comes, it will be mainly due to the Chinese
taking their hand off the bid. They hold the spearhead for de-throning
the USDollar, and they have discovered the lever how to do it... WITH
GOLD. Their attacks to demand gold from
The strong gold price showing last week is even more significant when one considers that the November gold futures option expiration occurs on Monday the 23rd. So the Powerz were unable to conduct their usual tricks, to pull down the gold price in order to wreck many of the long option calls in gold. The usual tricks involve usage of free USGovt paper money, heavy short contracts placed without collateral, and regulatory negligence to permit its illegal activity, concentrated in 4 or 5 big banks. Next week could be explosive, more so to break the backs of the Gold Cartel and to force even more depletion of their scarce gold inventory. The price of gold will take care of itself. In fact, my expectation is for a separation of the paper gold price from the physical gold price, enough to discredit the paper gold market altogether. The Street Track GLD exchange traded fund will be another casualty, eventually trading at a 40% discount to the gold price. Anyone who continues to hold the GLD shares out of basic ignorance, acute laziness, or misplaced trust will face losses and will not enjoy the golden ride. Clearly, the gold price is making extended gains. It just might make some gigantic strides toward the next real clear visible goal of 1300 before the end of year. Big moves in gold could be coming!
◄$$$ GOLD IN OTHER CURRENCIES IS ON THE VERGE OF BROAD BREAKOUTS. THEY WILL GARNER WIDESPREAD ATTENTION, SINCE GLOBAL CONFIRMATION OF THE GOLD BULL IN US$ COMES. $$$
The gold price in Euro terms has yet to break out to sweet highs like with the USDollar. Three scenarios are possible (maybe more). First, the unlikely one where the Euro remains subdued, and stays under 150 with central bankers in control. Give it a 20% likelihood. In this case, the Gold price in Euros would break out toward its 920 target. Hedging against a weak global currency system would push the gold price. All paper currencies would be dubious. Second, the more likely one where the Euro breaks out toward its 155 target, and continues to run upward, perhaps eventually much higher, like to 180 or even to 200. Give it a 60% likelihood. In this case, the Gold price in Euros would be subdued, in a similar fashion to what is seen with the Gold-Aussie price. Third, a potential direction where the Euro rises in a controlled fashion, but gold explodes in price. Give it a 20% likelihood. In this case, the Gold price in Euros would advance but not as much as in US$ terms. My best forecast is that we see the third scenario initially, but migrate to the second scenario as the full blown monetary crisis strikes.
The Gold price in other currencies is a mix. However, its price in British Pounds and in Canadian Dollars seems very similar to that in Euros. The scenarios might not play out in the same manner though, since the Euro stands as the best candidate to receive urgent demand from a collapsing crisis strewn USDollar. The British Pound is very likely to be trashed, since its fundamentals are wretched, and it owns little natural resources. So the Gold-Pound price is likely to zoom, like in US$ terms. The Canadian Dollar is very likely to hold strong, like the Aussie$. So the Gold-Loonie price is likely to be dampened. In fact, the Gold-Aus$ price is likely to remain dampened, especially since their central bank has embarked on a sane reasonable interest rate policy path. The oddball is clearly the Gold-Yen price. It strongly resembles the Silver price for now. As the Yen Carry Trade reverses further, and as the USDollar weakens further, even with a Dollar Carry Trade handoff, the Yen is likely to gain strength. This will frustrate the Japanese Govt, whose export trade stands at risk. So the Gold-Yen price is likely to remain dampened.
◄$$$ ADRIAN DOUGLAS LOVES SILVER PROSPECTS. ME TOO. $$$ Central
banks sell gold in large volumes, but own no silver. Industry consumes
large volumes of silver, but almost no gold. The dirty little secret
on Wall Street is that they fear the silver release in price to the
heavens much more than gold, because they have even less silver at
their disposal than gold. Their losses in silver will be extraordinary.
President Theodore Roosevelt built the six billion ounce silver stockpile
under the USGovt aegis. It is gone, used by the USMint and USMilitary.
Prospects for its rebuild are nil. Only the Chinese has wonderful
prospects for an ample supply, since they have built a stockpile.
◄$$$ THE CHINESE RECOGNIZE THE DOLLAR CARRY TRADE HAS THE POTENTIAL
TO SEND THE
China's banking regulation chief joined those from Hong Kong in blaming the USFed excessive accommodation in interest rates for fueling speculative capital flows that tend typically to ignite asset price inflation. Donald Tsang, the chief executive of Hong Kong, stated that the USFed's near 0% rate policy risks sparking the next financial crisis. The low rates earlier this decade triggered the crisis, and their return should result in the same outcome, a blind spot to US bankers but not to Chinese bankers. Liu Mingkang is chairman of the China Banking Regulatory Commission. He said, "The continuous depreciation in the dollar, and the USGovt's indication that, in order to resume growth and maintain public confidence, it basically will not raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation. [Current monetary conditions] have seriously affected global asset prices, fueled speculation in stock & property markets, and created new, real, and insurmountable risks to the recovery of the global economy, especially emerging market economies." Liu spoke at the Intl Finance Forum.
Dan Norcini is a competent gold analyst and professional commodity
trader, with ties to Jim Sinclair on the JSMineset website. He commented
on the building conflict with
◄$$$ THE DOLLAR CARRY TRADE BUST FORETOLD PREMATURELY BY NOURIEL ROUBINI. MY BELIEF IS THAT HE HAS SOLD OUT TO THE SYNDICATE, AND HAS LOST HIS EDGE. HE IGNORES THE EXTREME RISKS FROM THE DOLLAR CARRY TRADE, AND ITS GATHERING POWER. THE INEVITABLE BUST OF THE CARRY TRADE MIGHT COME, BUT IN A FEW YEARS. IT HAS NOWHERE NEARLY RUN ITS COURSE. THE RISE IN COMMODITY PRICES AFFECTS COSTS ONLY IN THE UNITED STATES. THE REST OF THE WORLD SEES A SUPPLY COST DISCOUNT WHEN THEIR CURRENCIES RISE. $$$
Roubini claims "The Mother of all carry trades faces an inevitable
bust" and offers his arguments. Let's review them, since they
are weak. My belief is Roubini has been paid off by Wall Street, since
his tune has changed completely to a 'Company
He makes an excellent point about damage to foreign financial structural
foundations. He wrote, "The reckless
Roubini assumes the
Roubini claims the
Roubini's last point concerns the risks of a double dip recession,
and a flight from risk trades, meaning reversal of the Dollar Carry
Trades generally. The free 0% money will next feed the USTreasury
Bond bubble perhaps, if stocks shed value. Actually, the USEconomy
never exited its recession, still ongoing. The risk is more acute
The USFed has instead, not within Roubini's perception, reflated
the foreign economies, not the USEconomy. The USFed is destroying
US capital, discouraging saving, encouraging the last breath of consumption,
◄$$$ LEGENDARY INVESTOR AND WORLD TRAVELER JIM ROGERS DISPUTES
ROUBINI. HIS DISAGREEMENT CENTERED UPON COMMENTS ON COMMODITY AND
GOLD BUBBLES. FOREIGN STOCK MARKETS ARE INTIMATELY LINKED TO COMMODITIES.
Independent Jim Rogers (of former Quantum Fund fame) believes Roubini
is wrong on bubbles in gold and foreign stock markets. He regards
many commodities to still be down from record highs and equity markets
nowhere near the brink of collapse.
The idea of gold being a bubble is ludicrous. Supply is limited and finite for new finds, but fixed and visible for old forms. Governments are avidly selling gold, and the IMF is acting as broker for sales. James West of the Midas Letter dismisses many vacant arguments. He writes, "The price performance of gold recently has all sorts of armchair economists waxing philosophical on the idea that this is the advent of a price 'bubble.' While certainly everyone has and is entitled to their opinion, there are other features of humanity that we all possess, and much like many opinions, are best obscured from view. [Refer to human hind quarter and orifice.] Declaring that gold is in a 'bubble' demonstrates complete ignorance of or disregard for the fundamental drivers of the almost ten year ascent of gold. And saying that the price is forming a bubble implies that, like the real estate bubble, the tech bubble, and the tulip bubble, the price must necessarily 'pop' and return to a sustainable long term average... Technology, real estate, and tulips, on the other hand, are consumed and replaced. Technology becomes obsolete, homes wear out, tulips die and are reborn each spring. Gold? Gold goes nowhere. Gold stays put. Gold is passed from generation to generation in last wills and as heirloom collectors items. Gold is recognized as a store of value that is not temporary. The only way to diminish that is through government interference, such as the various legislative actions that have historically capped gold's value at a fixed price, or if for some reason, humanity decided to abandon its greedy predisposition to hoard value against future financial calamity...
No. The bubble we are immersed in at present is the currency
bubble. Led by the disingenuous
Eric Sprott, founder of Sprott Asset Mgmt, explains why the USGovt is trapped. It must continue to produce easy money to cover its mammoth deficits. It cannot conceivably restrict money flows and reverse course, since the USEconomy is so weak and banks are insolvent. Besides, the USGovt must purchase its debt with printing press money out of necessity, a policy firmly in place. Unknown avenues come when people turn their backs on existing currencies, out of distrust. He expects the IMF basket to include perhaps gold, silver, and even crude oil, since they contain value. He does not rule out the possibility of hyper-inflation occurring. See the interview transcription on GoldSeek website, featuring "Eric Sprott: Gold Momentum's Picking Up Dramatically" (CLICK HERE).
◄$$$ RICKARDS DECLARES EASY $2000 GOLD TARGET NEXT YEAR, BASED
UPON A MONEY SUPPLY ARGUMENT. WORSE, IN ORDER TO OFFSET THE HUGE MONETARY
GROWTH IF AND WHEN GOLD JOINS THE
Last week, Jim Rickards of Omnis Research remarked that the
◄$$$ A USDOLLAR COLLAPSE IS BEING FORETOLD BY A GOLD RISE, SURE TO TURN INTO A MONETARY PANIC WITHIN MONTHS. THE GOLD RISE IS NOT TELLING OF PRICE INFLATION, BUT RATHER WARNING OF A FULL BLOWN MONETARY CRISIS. THAT MEANS CURRENCIES HAVE DUBIOUS VALUE, AND BANKS ARE TO BE BROKEN FURTHER. $$$
The USDollar Panic will begin in early 2010. Its collapse is already
underway. The weight of gold around its neck will drag it into the
depths. Eric deCarbonnel wrote, "The dollar's gentle decline will
not continue forever. Within a few months, the dollar's slow
collapse will turn into a dollar panic. Individuals, companies,
and governments will all try to get rid of their dollars at the same
time by buying foreign currencies, precious metals (gold/silver),
and hard assets (commodities, real estates, artwork, etc). It will
be vicious and ugly." An interested weblog reader comment made
a great point with "This rise in price of gold is only the effect
of people preparing for the currency collapse. It is not the actual
currency collapse. The currency collapse is coming really soon, like
January 2010." See the Market Skeptics article (CLICK HERE).
It provides a stream of articles and publicity for the gold run and
the enthusiasm that builds. Eric overlooks how the Dollar Carry Trade
will drag the
◄$$$ THE CONSENUS ATTITUDE TOWARD DECLINING USDOLLAR EXHIBITS VERY SHALLOW COMPREHENSION IN THE FINANCIAL PRESS. THE ANALYSIS IS OFTEN LIKE FROM A BELOW AVERAGE HIGH SCHOOL STUDENT. $$$
The title of a Washington Post article read "Decline in USDollar's
value helps the
My reaction and rebuttal. The
OIL MARKET TURNS UPSIDE DOWN
◄$$$ SAUDIS DROP THE CRUDE OIL W.T.I.C. CONTRACT, THUS CUTTING
THE CORD TO US-BASED PAPER PUSHING CONTROL BULLIES. THE CHANGE IS
AN IMPORTANT PRE-REQUISITE TO KILLING THE PETRO-DOLLAR DEFACTO STANDARD.
The Saudis have made the bold move to drop the West Texas Intermediate
Crude oil contract. They no longer will fulfill the back end of the
WTIC contract with crude oil delivery. The Saudis will no longer
use the WTIC oil contract as the benchmark for pricing its oil, thus
dealing a formidable blow to the
From January onward,
Reaction among analysts is a combination of apology and avoidance
of the entire manipulation factor. Paul Horsnell is head of commodities
research at Barclays Capital. He viewed the Saudi decision as a
reflection of a 'wider discontent' from its customers in the
Rob Kirby wrote an important article last September with details highlighting now the USGovt had a dorect hand in the collapse of the crude oil price in 2008, using swaps of physical crude from the Strategic Petroleum Reserve, and Mexican collusion. He wrote the following.
"China is but one example whose voice, as America's largest creditor,
cannot be ignored. Their recognition of Ponzi paper markets has led
to their repudiation of the market rigging game. The unspoken, yet
imminent, extension of this logic is ultimately the repudiation
of USDollar hegemony, as all strategic commodities currently settle
in USDollars. A failure on this level would have catastrophic
◄$$$ THE I.E.A. INCREASED ITS GLOBAL CRUDE OIL DEMAND ESTIMATES, BASED UPON ECONOMIC GROWTH IN POCKETS. PERHAPS NEXT THEY WILL REDUCE THEIR PUBLISHED INVENTORY ON CRUDE OIL, WHICH IS LIKELY FAR HIGHER THAN ACTUAL LEVELS, A FICTION. $$$
The Intl Energy Agency cites surging demand for crude oil in
◄$$$ MATT SIMMONS ON KING WORLD DISPUTES THE HIGH INVENTORY
SUPPLY DATA FOR THE ENERGY MARKET, MORE FALSIFIED USGOVT STATISTICS
WITH EASY MOTIVE TO SEE. $$$
The energy agencies in residence within the
Turkey has decided to use the national currencies in trade with
Iran, Russia, and
Furthermore, Russian Prime Minister Vladimir Putin said in mid-October
◄$$$ THE IRANIAN OIL BOURSE HAS FINALLY BEEN INAUGURATED, WITH PETROLEUM PRODUCT TRANSACTIONS PRIMARILY IN THE EURO AND IRANIAN RIAL CURRENCY. MORE FLOW NOT IN USDOLLARS. $$$
On October 27th, the Iranian Oil Bourse was inaugurated on the Persian
Thanks to the following for charts StockCharts, Financial Times, Wall Street Journal, Northern Trust, Business Week, CIBC Bank, Merrill Lynch, Shadow Govt Statistics.