Thursday, September 20, 2007

Die Rat Bastid, DIE!

Gold, Silver Gain on Speculation Fed Cut Will Weaken Dollar
Sept. 19 (Bloomberg) -- Gold and silver prices rose on expectations the Federal Reserve's cut in U.S. interest rates will weaken the dollar and boost the appeal of precious metals as alternative investments.

Did this guy just crawl out from under a rock? Of course the Fed cut will weaken the Dollar. Doh!

``The dollar is the most important factor driving gold prices,'' said Matt Zeman, a trader at LaSalle Futures Group in Chicago. ``Look for the dollar to make new lows and gold to continue higher.''

Is there toast burning is this guys kitchen?

``Gold and gold shares are the traditional refuges in times of financial trauma,'' J.P. Morgan Securities Inc. analysts said yesterday in a note. ``We continue to feel most portfolios should contain some gold.''

Really? Just two months ago I was told that Gold was a "risky" investment, are you sure?

``Gold is going to work for a few weeks around these levels,'' said Zeman of LaSalle. ``Gold can't make a real sustainable run higher without consolidating.''

It can't? Why, because you said so? Gold is going to shock people a lot more than the Fed did Tuesday with their desperate 50/50 interest rate cuts.

Larry Kudlow! Hey Bozo, listen up!

Beware - the Bernanke Fed could Ignite Hyper-Inflation!

Some Fed officials deny the linkage between the explosive growth of the M3 money supply, which the Fed is trying to hide from the public, and inflation. On Sept 11th, Fed governor Frederic Mishkin said he “did not find gold to be a particularly useful indicator of inflation.” But surprisingly, it is former Fed chief “Easy” Al Greenspan, would pegged the US fed funds rate below the inflation rate for three years, who is ringing the alarm bells about a resurgent gold market.

Greenspan advised his successor, Ben “B-52” Bernanke to avoid cutting rates too aggressively because “the risk of an inflationary resurgence is greater now” than when he was nurturing the sub-prime mortgage mess. “Our problem over the long run is the re-emergence of inflation. As economic globalization winds down, the forces that have kept prices down will disappear,” he said on Sept 15th.

“Inflation in the United States could rise to a rate of between 4% and 5% a year,” Greenspan said. In an interview in the Dutch newspaper NRC Handelsblad on Sept 17th, Greenspan predicted that inflation will also rise to 5% in Europe, adding that “the 5% inflation level is more fitted for an economy that functions on a paper standard, where the currency is not linked to gold. The Fed could keep inflation lower, but to do so, it might have to raise interest rates into the double-digits.”

Gold has been patiently waiting for the Bernanke Fed to cry uncle, and start cranking-up its money printing machines. Since the Fed halted its two-year rate hike campaign on June 25th 2006, the price of gold has climbed by 32%, and for most of this year, has been relatively stable, amid strong demand in Asia and the Middle East, and steady inflows into exchange traded funds, such as GLD and bullion.

Expectations of an easier Fed policy have crushed the US dollar, and discouraged other central banks from raising their interest rates, adding new sparkle to gold against all paper currencies. On August 6th, with gold trading at $670 /oz, Newmont Mining’s Pierre Lassonde said, “There is very strong demand right now so we are setting ourselves up for an attack on the $750 /oz level in early fall this year.”

Gold, Oil & Euros Pushed Higher by Fed's Rate Cut; "US in Deep Trouble"

"You can throw away your charts in these kind of market conditions," said one bullion dealer in Singapore to Reuters. "There's a chance we will see a new high this week.

"It was an aggressive move by the Fed to cut rates by 50 basis points," he added. "I think the US is in deep trouble.

"Gold should be your safe haven."

Larry, I think it's time for you to take some medicine. You really need to wake up. Inflation IS here, and hyper-inflation is on the way. A responsible journalist would be telling his listeners the truth and not tales of his hallucinating dreams. Dude, what is that your smoking anyways? Get that stuff outta here!

Gold and Silver up powerfully overnight a pattern developing? The Euro is flying high over 1.40 and the Dollar is swirling in the porcelain bowl at 78.80. Weeeeeeeeeeeeeeeeeeeee! More fun than a Barrel Of Monkeys!

Capt. Bernanke, thanks for the medicine!

As Gold approaches 735 we may begin to pick up a bit of a headwind. Mr. Jim Sinclair suggests that 761 will be the next rest stop for the Gold Bull. 735 is the measured move out of the box at 688. Nothing goes straight up, and it would be very beneficial to Gold if it were to pause and consolidate a bit. Fascinating thing about Gold though...the higher it goes, the more people want to buy it. And in a short squeeze such as we're witnessing now, a massive inflow of buyers will only squeeze the shorts harder and drive prices higher faster. A move thru 761 and Gold should receive the call from mission control, "OK for trans lunar injection." Thanks to Capt. Ben, the Gold Mothership is fully fueled now for that long awaited trip to the Moon. Expect several stops along the way to sight see, but passengers are warned not to leave the ship. Support in Gold now at 714 and 705.

Silver has finally broken free of it's 18 month consolidation triangle off the May 2006 highs. 13.34 looms overhead as our next "zone of resistance". Silver still remains hugely undervalued in relation to Gold, and all other commodities as well. This is the bargain of a lifetime! Silver support now at 12.90 and 12.70.

Both Silver and Gold are becoming overbought on their charts. But in a short squeeze of the magnitude we are witnessing and overbought condition may persist for a while as the shorts scream in pain.

Enjoy the day, we ALL deserve to watch dem Rat Bastids writhe in agony.

No comments:

Post a Comment