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Has The Gold Bubble Burst? Either Way, Geithner Is Now Scroomed
A 4% move in 4 hours. At least with the gold bubble out of the way, stocks are fully apprised of what to anticipate. Somewhere Tim Geithner is congratulating himself for a strong dollar job well done. Of course, this does little to resolve the several trillion of worthless crap on bank balance sheets whose "value" just went in the non-FDIC preferred direction. And thus the Sec Tres is reminded why he is scroomed: there is no way out now - either jobs have to revert to trendline (the BLS would need to, ironically, hire humans over Kool-aid infused monkeys to do the next data analysis), or banks will be soon knocking on Sheila Bair's door, reminding that they were just kidding about that TARP payment. In that sense Napoelon Iceman Dynamite, Fred Mishkin is correct that gold is merely a sideshow.
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Is it not patently obvious what is happening: bernanke is basically being endored up until the point that it becomes totally intolerable at which point JD rides in and the massive dollar spike - by this time they hope the recovery will be well undeway and the expected dollar spike and equity tank correlation perverts as econodebt 3.0 takes flight.
+++rep .... love the prose.
Wait, I thought the gold "bubble" burst in 2008?
I thought it was 2006
BB telling TT "I didn't think anyone was watching what the other hand was doing.
Great opportunity to add some more.
You probably right. This week the spot pog is only down -1.31%.
The gold weekly and monthly charts do not look that bad.
http://finance.yahoo.com/techticker/article/384959/Don%27t-Fear-the-Fed:...
this is a preview of what will happen to equities if the Fed even moves one inch on rates or QE.
In the end, they don't are about equities. It's just another asset bubble they choose not to recognize for now.
I really do think that there was general agreement to ignite the equity markets, in the hope that higher prices and "less bad" economic data would miraculously start the self-sustaining growth engine all over again.
To this day, there are a whole lot of people not buying in on the idea. And perhaps, given the unreal headline numbers in the employment data today... you just wonder how more "new believers" are really left to hold bags.
General agreement? I think there was outright equity market manipulation.
Think about it - when the average person thinks about the Great Depression, what do they think about first? The unemployment rate? The decline in world trade?
No, I would bet that 99% of people think of the stock market decline. To most people, Great Depression = Decline in stocks.
Bernanke knew this. So how to avoid the second Great Depression? Drive up the price of equities.
Not to mention the practical reasons for doing so (which to be honest were probably the primary reason for intervening in the equity markets) - many pension funds, insurance companies, endowments, etc would be destroyed if the S&P sank to 400.
There is no question in my mind that the Fed was involved in the equity markets from March - June. And of course destroying the dollar was a big help as well as it drove up the price of commodities, etc.
But that was yesterday's news. The question of course is what to do going forward?
To your point, a lot of people don't buy the recovery story, because there is no recovery. Our economy is fundamentally broken - we have far too many people living far too rich a lifestyle given the underlying wealth generating abilities in our economy. to maintain our lifestyles, we not only need debt to remain steady, it needs to grow.
That debt growth can only come from one place - the government. Which will kill the dollar, because we will need to print money to suck up all the debt. We can't afford a 10 year Treasury rate of even 6% anymore.
Which means I am more than happy to add to my gold positions on a day like today.
agree to all - and I also suspect that the TARP funds were used by the banks to buy each other's shares on the low end in march and now that they are boiler room hot, they get to unload them in offerings and zombie 401k's that are forced to buy every two weeks no matter what the prices are
great way to rob the blind - make a profit and pay back the TARP
I do agree with ghostface's view the Fed's involvement, and probably wasn't too in calling a spade a spade. In reality, there are likely several parties involved in allowing to get from Point A to Point be. There's a 99% chance the the U.S. Treasury was involved in those activities.
And I clearly agree with dark pools here about the financing window. I think a major push behind the sponsored equity rally was primarily a mechanism for weak companies to buy time and have a financing window available to them to create more cushion. Quite frankly, I am a little suprised the window is still open-- though the dollar has taken some direct hits.
As for gold, I have a 40K foot view of the world that probably only make sense to me. As the Fed went on its deflation tear, they knew they would have structural issues of keeping the dollar intact and risk some very severe international problems as a result.
They may not have intended for the dollar to get to this level so soon (or gold going to the $1200 level for that matter)-- but I get the sense they expected (hoped) that there would be turmoil in the international markets that would ignite a global flight to safety to help fund massive Treasury issue needs at lower interest costs. That hasn't happened yet, but perhaps Dubai is a precursor.
What I do have a lot of confidence in, however, that gold is a solid bet long term-- for the mere reason that reflation via money printing is the ultimate answer.
We can go through brief periods of deflationary deleveraging-- which would tank equities, but give needed strength to the dollar. But the economy cannot handle the strains of that for long, and reflation becomes part of the game again.
Or we can let the dollar go to hell in a handbasket, causing other nations to take unfriendly actions (i.e. Japan selling Tresuries) and risk a dangerous currency run. That's a very dangerous course to continue.
Bottom line, gold eventually wins in either scenario. The major difference being that first option means gold will correct to values in realtion to a temporary stronger dollar. Such a move would be brief-- and I would doubt that longer term moving averages on gold would change their positive course. Continue printing, and gold will get to $5,000 in a hurry... and all political incumbents are at risk in 2010 and 2012.
Sheila's door is always open.
But nobody's home.
I suspect gold to rise again once it hits Sydney/China time. Large drops in gold have almost always happened NY FED time, this is no real surprise imo.
Also something I just noticed American 1oz Gold eagles 100 dollars over spot!? Used to be 49.99...WTF????
the US Mint didn't release any this week...supply is dwindling.
Screw the Eagles. Buy Krugerrands, only spot + 50.
Screw that, Credit Suisse bars at spot + $23.95 at Tulving. Of course those with a bit deeper pockets should get JM Matthey kilo bars for spot + $8.95 per oz.
Disclaimer, do not work Tulving, etc. Just that he always has the best deals, ships free and fast, excellent reputation, etc.
Love the Tulving. Something to think about next in terms of the dollar and PM prices. $121 Billion in Treasury auctions usually means stronger dollar and lower PMs. I think late Thursday and Friday activity are precursors to what's in store for next week. I am waiting until late next week to add PMs and miners.
Now that the US Mint has sold out of Eagles, premiums have gone through the roof.
Just last week Austro-Hungarian 100 Corona gold coins (.98 oz) could be had for premiums of under $9 per coin. Now it is $19.95 per coin.
You may now return to your reguarly scheduled nonsense.
Buddy, buddy! Have you bought some Gold lately?
The funniest thing I have read all week.
Burst?? Wtf? It's not even inflated yet!
It could go down to 1089 but it will get wild after that. Read Jim Sinclair's page
Call bullshit.
You just saw all the ammo. The whole clip. No spares maybe they make a tiny reload in a few days.
It's Barney Fife, with that one bullet he keeps in his pocket.
If I were running a eastern hemisphere country. I'd be dumping my treasuries on the market in concert with huge fed auctions. If it moves gold this much. Why pay the greedy stinking IMF top dollar for gold.
Exactly.
All morning I kept imagining China and India salivating as gold descended.
they can't wait for the bottom when the real dumping starts. Thats when china buys.
We will make new equity lows according to my charts and my USD indicator has been giving BULLISH warnings for some time and I'm still expecting a dollar rally.
My indicators can identify trend changes before they occur.
They warned me of an impending market crash back in early *2007*
http://www.zerohedge.com/forum/market-outlook-0
They say the dollar short position is crowded but it seems to me that the dollar bounce position is even more crowded. It is good to hear that you are perfect.
"dollar bounce" is a crowded trade? Uh.. where?
Go away, spam supercycle.
but leave your avatar
Methinks this *is* the dollar rally.
But I don't have any 'indicators' so what do I know.
Identify trend changes before they occur, eh?
So can BB width spikes, you know.
Read Murray Gunn's book.
I Am Not Impressed.
what does your "indicator" say about the $1T in fannie/Freddie MBS that needs to find a home next year?
dunno about that, but his 'junk' indicator is now in double digits.
I've sort of been waiting for this blanket party for a long time.
Please stop the plagerism of Bob Precther's Elliot Wave analysis.
All this for Bernanke's testimony and reduce the impact of Ron Paul questioning the Chairman on a strong dollar and the price of gold.
Blatant manipulation, showing congress the fed is boss.
In addition, the comex must shake loose the weak hands and leveraged positions to decide not to take delivery (hit stop limits) or the comex could default from lack of physical. Last Friday and this friday are attempts to do that.
Can't wait for the Project Mayhem piece.
For sure, it appears to be a glaring display of market control by the shadow government criminals. Recognize this must stop.
But...but..there must be some mistake here, it was only two days ago Goldman said gold was going to $1500 an ounce?
OT; Update on Climategate
See notes. CCS technology is just plain stupid. The Biosphere loves CO2.
CNN Two Weeks Late in Reporting on Climategate 12-4-09
http://www.youtube.com/watch?v=2M7zqof5KYI
thanks, Michael.
Thanks Michael, not sure why someone flagged this as junk, there is far too little reporting in the MSM on Climategate. Anyone who cares about markets should care about Climategate, since the man made global warming hoax was a blatant attempt to transfer massive amounts of wealth from the masses to the elites. The actions of a few Russian hackers put all that in serious jeopardy.
This is about a transfer of power. The wealth with come with the power for sure, but money is not driver. Control is.
The reason why the MSM is not reporting it is the owners of the MSM. You don't bite the hand that feeds you. And besides a lot of people are into this like a religion. I know people that are more devout to Al Gore then most Christians follow Jesus.
Not sure it was hackers either. Personally I've believed it was insiders since day 1, but who knows I could be wrong. What I do like is the MSM is more concerned about pressing charges against the "hackers" over stealing and releasing the emails. Who cares what is in the emails?
"not sure why someone flagged this as junk"
Ghost, are you kidding me? These climate koolaid drinkers are everywhere, yes, even in our own halls here at ZH. And, as to a few fudged stats, well..., after all, the end justifies the means.
"The Biosphere loves CO2"
The ocean doesn't, and the world will find this out in this century when the calcium carbonate cycle is interrupted and the entire oceanic food chain collapses. The ocean has been acting as a CO2 sink since the beginning of the industrial revolution, i.e., it has been acting like the buffers you were taught about in high school chemistry class.
The oceans are no longer acting as a perfect buffer, and the consequences to those organisms that make their exoskeletons out of calcium carbonate will be their not being able to form their own shells - it can't be done in acidic water.
This is the greatest danger posed by excess CO2, along with runaway temps after the oceans totally quit being able to absorb CO2. It's basic chemistry, freshman ecology and biology, and it is definitely happening - no conspiracies needed.
http://wattsupwiththat.com/2009/12/01/oh-snap-co2-causes-ocean-critters-...
CO2 was as high as 7,000 ppm when shell-based organisms evolved so
Those where banner years also if you owned a marble slab making operation. All you had to do was sit back and wait for your great great great great .............. grandkids to get rich.
Whatever, I'm not the least bit concerned.
We will adapt and continue to rule the planet. WTF do I care if some fish become extinct or the life in the sea takes a hit. Dude, have you ever looked at the fossil record? Most of those examples aren't around anymore.
Shit happens. Instead of focusing on how we supposedly destroy the planet and should now pay a pitance for it, we should invest into artificial ponds and concrete super shelters that can withstand the deadliest sunrays.
Party on, dude.
Problem with this thesis is, as CO2 increases, phytoplankton would increase accordingly and process it into O2 and sugar. Frankly, we'd see a phytoplankton bloom if CO2 levels and ocean temps were rising. We aren't seeing that. Nor is there any credible evidence that the pH of the oceans are changing, all hype from the MSM and UN climate "experts" aside.
do you realize how big the ocean is you moron, come back when you find a source of info, that is not generated by propagandists. ignorance is one thing, fanatically supporting it is another. are you a jehovas witness, or a scientologist?
Comment #1) Grand Supercycle = plagerizing Bob Prechter repeatedly & without shame.
Comment #2) GOLD BITCHES!!!
Burst?? Wtf? It's not even inflated yet!
It could go down to 1089 but it will get wild after that. Read Jim Sinclair's page
I am grateful for the gold pullback and pray it continues! Gold to 1000! I have a long time horizon and not nearly enough PMs, I've been eyeing some fractionals from the Perth mint and waiting for my next paycheck.
A lot of us "goldbugs" are still being paid in paper and it won't break our hearts if paper goes up and allows us to buy more gold. Well that and I kinda like not having mass civil unrest....
Amen, try as I might I have not convinced my employer to pay me in gold, so after my fiat expenses I still have some fiatcos to convert every two weeks.
What was the action about today? The market thought today's jobs report would sway Zimbabwe Ben from killing the dollar? LMAO!!!! He is a student of the Great Depression, he is absolutely paranoid of withdrawing liquidity too early. If we get four more years of Zimbabwe Ben, that just means four more years of ZIRP and QE.
He's as much a student of the Great Depression as I am an astronaut. He is flat out wrong on the cause and effect of the monetary policies and government intervention during the Depression and the Roaring 20's. What I'm trying to figure out is one of two possibilities
1. Is Zimbabwe Ben simply the stupidest man to even be able to tie his own shoes? And he is so stupid that he doesn't know he is setting up America for a nightmarish collapse, all the while believing the insiders and giving them unlimited money
2. Is Helicopter Ben in on the scam, and his heist persona is that of a retarded academic who could not make an accurate economic forecast if he had a time machine.
Personally I'm leaning towards 2. I've met some brain dead professors in my tours through academia but I would like to believe on that level you weed out the truly stupid. Also I know Greenspan was a scumbag insider and not that stupid and Uncle Ben is just Greenspan v.2.
I ask myself the same thing - is he stupid, or corrupt?
I lean towards #2 as well, based on his activities in the MBS market. What he is doing there is just too devious to be a bumble - he seems to know he can conduct 75% of his QE through that market and everyone will scream about the measly amount of Treasuries he bought.
I don't know about you, but the look on his face while being grilled made me believe he is quite capable of an intentional act of Zimbobwafication just to flip us all off. He's certainly not going to suffer.
Got to be more than 15 minutes old to understand this game. Pump Gold, Dump Gold, Buy Dollar. Reset.
Hmm, this may just be a JPY debasement spike.
Or perhaps there will be some shockwave this weekend, and we're in for another Monday whipsaw.
The Euro and Pound are both down as well...not sure what they're doing relative to each other though.
Unless I am missing something, the December open interest has not come down much in this drop and in the end it is physical shortages that will be needed to offset the unlimited government paper shorts. If they cannot even find 5 Million ounces of silver to deliver by now it would seem that the market should still be bought on dips.
This guy's take is that gold is moving ahead of FX even and serving as a call on US accomodative monetary and fiscal policy. There has to be a handoff at some point from the market going up based on free money, and the market going up cause of real money buying into the recovery thesis. I think this move now is the beginning of that handoff.
So its either stocks going up because of money printing or stocks going up because of "recovery" or stocks going up because of inflation...but either way, until the bubble bursts (againnnn) the most logical trend will be for stocks to go up.
Steak,
in a real recovery Dow/gold should increase; in inflation it should decrease.
For now stocks are going up but gold is going up faster.
Yes, I did check the prices lately.
See http://stockcharts.com/charts/gallery.html?$INDU:$gold
ALL major US stock indices measured in Gold topped in early August and have been trending down ever since.
So much for "stocks going up".
I don't think China will let it go down too low.
Wouldn't you know it? The two junior mining companies that I have my eye on are actually up today.
Just my luck.
That'll teach you to look at things.
I can't help it. This one eye is always open.
lol
aren't you a bit worried about that knife thingy over there?
Nah. He wouldn't dare.
MUN-T and BTO-T? Buy them anyway, they would be up a lot more were it not for the gold selloff...
I'll take a look. Thanks.
Why are MUN-T and BTO-T up so much?
MUN up 20% today alone!
I don't think China will let gold get too low.
They want to buy more, and so do I. Hopefully under 1000.
It it goes to 1000, this time i will buy some gold for wife.
I buy wife with Gold.
China will buy their gold off-market in IMF or private deals so as not to disrupt prices.
Also, they will buy all of their domestic production and just remove those sales from the market. I follow CB buying.
Who is this handsome guy?
These Guy Fawkes dudes are so wise. Called the top two days ago when CNBC was screaming gold is a buy. Sometimes they make it too easy... no?
China's people, all billion +, are becoming the worlds largest consumers of gold. SO here we have two forces pushing gold consumption higher in one country.
china one of the top 3 gold producers in the world. They double their gold reserve in past 3yrs to 1000+ mt, WITHOUT GOING TO MARKET. What does it teach us? 1. Chinese production numbers HUGLEY understated. 2. Chinese production numbers will continue to decline, if their appetite for gold grows 3. China will NOT buy from IMF 4. China will NOT buy from open market. If you want to find out what PBOC is doing - look at gold production in china and you will know joke
Gold was way overdue for a correction (and that doesn't mean it's over). The underlying trend of increasing fiscal and monetary chaos and goatfuckery hasn't changed a whit.
don't forget it is bank failure friday -over/under 6
crap! I forgot about that...time to spool up the FDIC page...
I just looked at the December 'CRA Compliance' list, and a thought occurred to me...I wonder if there has been any correlation between CRA compliance and subsequent failure? Or non-compliance and failure? Seems like with the CRA encouraging credit issuance, that creates more of a risk for the banks. But then maybe the CRA mandate means the banks with high compliance get on the short list for backstopping? Just wondering.
Maybe I'm nuts, but put me down for zero
Not nuts.
FDIC is broke... can't afford anymore failures for now.
Ya now's not the time for regular false bravado. Now's the time to really hang your butt out. Napolean meet russia. Russia meet napolean.
2 so far, both in Georgia:
PR-220-2009 State Bank and Trust Company, Macon, Georgia, Assumes All of the Deposits of First Security National Bank, Norcross, Georgia
PR-219-2009 State Bank and Trust Company, Macon, Georgia, Assumes All of the Deposits of the Buckhead Community Bank, Atlanta, Georgia
$270mil hit to the DIF total, so far.
Nobody believes anything anymore. No one believes that employment magically went up, and no one believes gold is worth $50 USD less than it was this morning.
I think we are getting set for the mother of all dislocations.
The low was over $80 down from the high 36 hours ago.
Excellent and concise summary! Applies everywhere else as well.
OT
The Man-Made Global warming Scam is all about stealing money from the sheeple.
Carbon Capture and Storage (CCS) is one of the major reasons for promoting the fraud of man-made global warming. Billions of tax payer dollars are now being spent to make a select few filthy rich from this useless technology. Senator John D Rockefeller is the major player behind this scam.
Rockefeller is a longtime champion of carbon capture and storage (CCS) technologies. Earlier this year, he helped secure $3.4 billion for the Fossil Energy Research and Development programs, including CCS research, in the American Recovery and Reinvestment Act.
http://rockefeller.senate.gov/press/record.cfm?id=317677&
Man, WTF is your problem... seriously tired of reading your crap... so what 6 billion people on this planet ALL competing for the same resources aren't going to have a meaningful impact on earths biosphere??? WTF are you on, man???
We (our species) are slowly killing the very biological system that gives us life, and most of us simply don't give a damm. "ANY" efforts to minimize the impact of this destruction should be applauded and supported. Will some companies benefit from this transition, OFFCOURSE but at least they aren't making money at the expense of our future like the current fossil fuel regime is...
seriously tired of reading your crap... Do you always read Mike's stuff looking for a different summation? You know what they say about that..
P.S.
These E-Mails pulled from your briefcase make for fascinating reading..
6 billion people... have you counted them?
Biodome-
It sounds like you are part of the problem with all the hot air you are releasing into the atmosphere. Based on your "any efforts to minimize the impact of this destruction should be applauded and supported" statement your moral relativity would justify ending your life to "decrease the surplus population" and help out the planet. You first.
Should we be good stewards and address our needed transition to natural gas from cheap middle eastern oil because peak cheap oil has passed, sure. Should we reduce pollution of mercury and other chemicals into our environment, absolutely. Should we tell a lie that CO2 is bad for the environment and causes global warming when the facts (unadjusted data) show that we have been cooling for the last decade, the polar ice caps have extended for the last few years, the sun is mostly responsible for fluctuations and that these fluctuations are natural, and many periods before the industrial revolution were warmer - NO.
A few relevant quotes from Rousseau:
Tell a lie often enough, loud enough, and long enough and people will believe you. - Hitler
Scientists and organizations have been pressured into accepting this false science and in cases acadamia has been bribed (grants, promotions, positions) to support it with money from the bankers. If the bankers could buy off key authority figures, they could convince the world to back their carbon trading schemes and implement the structure for global governance (including global taxes) tying together the command structure of banks and corporations.
You are trying so hard to try this case in the court of public opinion because you would fail in a real court. In fact, a truck driver in the UK sued because his child was shown the video in school and he argued it was not true. This is what the court had to say:
How marvelous. And what are those inaccuracies?
In the end, a climate change skeptic in the States must hope that an American truck driver files such a lawsuit here so that a U.S. judge can make similar determinations.
A list of 32,000 scientists that disagree with man made global warming, including 9,000 PHDs: http://www.americanthinker.com/blog/2008/05/are_32000_scientists_enough_...
They are manufacturing imaginary global problems where the answer to the imaginary created problem is "global government - global governance". They want a new world order run by billionaires, and this would be a global tax to support global governance including a transfer of wealth from these United States and a surrender of our sovereignty to global governance - Al Gore told Europeans that cap & trade was a vital first step in global government. Our leaders are compromised, bought or blackmailed into submission so the people must fight against this - we don't want more taxes and we don't want world government.
Apocalypse Now---Spectacular response, with clear data and backup links,,,the way it should be ,thanx
Thank you, for a breath of clean intelligence.
Andy, pardon the extreme ignorance on my part, I have a question:
WHy would one short OTM calls vs buy puts? Just curious.
I'm not impressed by wave watchers. Sure, it was a big wave, but the tide is a whole other monster to watch out for. Wave watchers/day traders don't seem to understand the difference.
I was just about to comment about the volume, which is the heaviest as far as the eye can see.
lol, tell me about it.
Rosey Rule number X - Most of the public buys at the top.
get junked on ZH is a badge on honor. unless marla does it in which case u r screwed (and not in the good way)
I don't understand why most people get stuck on just price. Its like they are half blind. Price is only half the equation. The other half is volume. Together you get the full picture. This is the reason why these big firms try their hardest to hide volume.
This chart says next leg down for gold (could be short term or long term).
Andy,
even if I disagree with your take it is nice to hear a voice of reason.
The dispute will be settled by bullion.
If there is a shortage of bullion the price will trend up with a reaction here and there. Moreover, today silver acted fairly strong, that supports the bullish case too.
Todays action was as well in currencies as in metals; an intraday-Eur/Usd chart looks almost identical to gld.
My analogy from the chart is more that the outbreak at 1000$ is similar to the one in Euro at 350 Eu back in 2005. The top should be in spring, it is too early now.
Gold was flat for the week. BFD.
A flat week (after a freak friday) obviously means the beginning of the end. Short the OTMs.
If one were to sue the Federal Reserve, what kind of lawyer would one need to acquire? Just out of pure curiosity.
the Goldman Sachs legal department?
Aren't they one and the same?
A damn good one... with incredibly large cajones.
"...with incredibly large cajones."
hmmm, that DOES throw a wrench in things doesn't it...Ok rephrase the question...
Hypothetically, if one were to choose to take the Fed to court, what area of law should one begin to read... hypothetically...
Speaking as a lawyer larva this is an impossible task. To many hurdles and the litigation would drag on for 10+ years or more, there still litigating the Exxon Valdez spill BTW. You would have a million problems, personally I don't think as a citizen we could get standing to sue them. Also discovery would be a nightmare because they would invoke national security on your ass.
You might also run into a problem since the fed is public and private, so they might try to burn you by invoking sovereign immunity and not let you sue them. You could litigate if they have sovereign immunity, just add another 5 years+ to the lawsuit. Also assuming that we got through all those hurdles, then what? Even if they broke the law to my knowledge there is no punishments for doing so. But if you wanted to look at the law you would look at their charter and then try to push proof that they violated it. Or if you could get them for lieing under oath but that would be tough because you would have problems in discovery.
The legal system does not favor the little guy.
In short the dollar will be toast and the banksters will be offshore on their private islands drinking on the beach long before it could wind through court. But that's just my opinion on the situation I could be wrong.
Thank you for your response, and sharing your insight Shameful. I am a champion of futile exercises, hence my foray into the market... I would be hoping more for a light onto the issue rather than an actual verdict, and suppose RP's bill actually does bring some stuff to the surface, now would be the time to begin preparations IMO...
http://www.despair.com/fut24x30prin.html
"...But if you wanted to look at the law you would look at their charter..."
"...Or if you could get them for lying under oath..."
Excellent starting points... could you tell me are there any angles in the arena of Breech of Contract from a civil standpoint as a taxpayer?
ps, I just went and had lunch and coincidentally or not, I'm pretty sure I was surrounded by undercovers, maybe it was the crack, but, Marla, you're not passing out IP's are you?!?
No problem, I also would love to see the Fed killed or at least exposed but I'm not sure this is a valid way.
Like I mentioned the standing problem. Basically there is case law that we as citizens don't have a right to sue about how the gov wastes our money, even if they do it illegally. I space on the case right now but basically the court has given the bird the the idea of citizens suing about what is done with their money even if it is unlawful. If memory serves it was about the reporting procedures of the CIA budget and the court would not allow standing. The court is a tool of the Fed Gov. Got to ask Scalia a question and he basically said not to expect the court to back states/citizens because the court is an institution of Federal power. If you want to see how brutal the courts can be to a little guy who was trying to use the law in their favor check this out http://www.lewrockwell.com/grigg/grigg-w118.html
As for breach of contract I don't think we would have a leg to stand on. If it could be construed as a contract then it would between the Fed Reserve and the Fed Gov. The citizen can not sue as the Fed gov, and we would be seen as a third party and run into standing issues again.
Granted if we could get a congress person to do it then we might be in the ballgame since an argument for them to have standing would be far greater. There are other procedural tricks they could play though...
Though I'm kinda hopeful that the audit the fed bill will pass, so Obama can veto it and we can have more eyes on the Fed and people asking why the "transparency" prez vetoed a public audit of a secret firm. As long as the Fed exists the prosperity of America can never truly be restored...where the Hell is Andrew Jackson when you need him?
The system is neither fair nor is it representative.
If George Soros got pissed off by the Fed, he might have a chance.
Another bubble popped, at least in the short term. See my posts the other night when we hit $1226 or whatever.
I am John Connor
http://www.pacificviews.org/weblog/archives/003679.html
gold falling as usual before next weeks treasury auction. Probably due to japans noises on selling t bills. China may balk, may be a failed auction if gold did not come down, dollar up. Or its the selling of ETFs to bring price down so the big boys can have their phisical at low entry.
I admit to my dumshit status.
Andy, you can't make one remotely negative comment about gold without getting ripped to shreds on this board.
agree, I always enjoy PM's posts in particular. On the whole, most bugs are way smarter than the average person.
There are a few bugs that are very, very annoying however.
Anyway, I will enjoy my brief time in the sun being short GDX and AGQ since wednesday.
LOL. You don't understand gold bugs. It's not belief. It's anti belief. It's the physical manifestation of super colliders and anti particle annihalation energy releases.
http://www.youtube.com/watch?v=uHQhOzeE6Q4
Thanks Andy. I love you too!
I like your honesty and thanks.
Some people use the junk button to state "I disagree" without being able to give a reason.
Thank You central banksters. Now I can buy even more gold.
Are you seeing any good deals for physical?
It seems like they aren't falling for this meltdown and are jacking up the premiums to compensate. I can't find an ounce under $1200.
hear, hear.
Me neither... went looking and was surprised... as if spot price means nothing... WTF?
I think it has something to do with the value of something that hurts your foot when you drop it...
www.apmex.com www.kitco.com You can buy kilobars $10 over spot and good bars $7 over spot... i.e. 1160 or so
I'm looking for 1 oz. coins though; I have enough bars.
I get a fuzzy warm feeling every time I say that!
+1 i think coins are waist of money.. and there are NEVER enough bars... :)
American Arts the only coins under $1200
Rumor on the street(shhhhh):
Napoelon Iceman Dynamite spotted in the VIP Sausage Room at trendy Soho nightclub "The Meathole" with Timothy Sykes.
Apparently Timmy's hormone treatments are starting to work on The Icemans lips.
The dollar already hit its 50DMA on this 1-day bounce.
Despite a ~$50 drop (~$70 in 2 days), gold still has a ways to go to hit its 50DMA but many gold stocks are at or flirting with 50DMAs.
Maybe this tells us gold lies in stronger hands than dollars or gold stocks? If so, it seems like this is a strong message about the true prospects for the economy...
There's something else going on, here. Gold is down 4.3% with silver down 1.3%. I admit I don't know what's happening, but it seems to me that all markets are being manipulated right now.
Trading Strategy:
Let the gold price stabilize in a range and then use the range breakout as an entry point with limited downside risk. The new range bottom will provide an excellent floor for stops.
After all, the name of the game is to have the largest possible position when it starts to move up again. We are in the beginning of a secular bull market in gold. Central banks have just recently switched to net buyers and given prior history, they will maintain that stance for 10 years+.
+10
OT:
Not one to usually raise the white-flag of surrender but here goes.
I need advice. I can't rationally figure this one out and I admit, I'm in a mess.
I'm in SRS way too deep.
Gut tells me dump and run
Brain says gotta turn around sometime. Avg'd at 9.87. It's barely treading water at 8 today.
I'm open to suggestions. An idea? A plan?
I freely admit I'm an ass for getting involved with it so, berate all you want, I'm beyond that...
I just need a logical plan.
Thanks in advance.
Buy some houses and hedge it. The tax credits will allow you to get some champagne to celebrate.
You're welcome.
In general, you have to be willing to sell a dog. I did the same thing with SKF earlier this year. I'm not going back to ultrashorts. You have to nail the market move at the time it happens. They aren't meant to hold.
Only you know how much loss you're willing to withstand. Could be many months or quarters before a big real estate shock, or the government might successfully cushion the blow all together with a bunch more printed money. The market has already factored in a LOT of bad real estate news. CRE might explode spectacularly enough to cause big moves, but it might just be a slower bleed. In the meantime, the ultrashort is likely to drift downwards.
I'm not a pro or certified anything, so take my opinion for what it's worth (not much). But in general, it is best to sell a loser and take the lumps, than to watch it lose another 20% or whatever.
you didnt have a stop-loss plan? yikes!