Patently Pathetic Pilfering of the Precious Metals

"If 'ifs' and 'butts' were candy and nuts, everyday would be Christmas."
-old saying



Many of you this morning I am sure, like myself, were completely enraged at the site of Gold and Silver plummeting in an instant as the NY COMEX market opened. In less than 20 minutes Gold was molested and robbed of $25. Silver fared much worse, being raped for a dollar. Blantantly criminal and inexcuseable though it was, I still found it amusing. How could Gold and Silver become so weak in an instant on such magnificently MINOR strength in the Dollar. Particularly when it was not "strength in the Dollar, but weakness in the Euro" that put this tiny bid under the Dollar. Patently pathetic pilfering of the Precious Metals by the paper pushers on the NY COMEX. No REAL bullion was sold, none traded hands. Bids were pulled by the nefarious criminals that inhabit the NY COMEX in an effort to steal your Gold and Silver, to pry it from weak fingers. An act of desperation commited by the minions of the banking industry dead set against the appreciation of Gold and Silver lest they expose the, now obvious, Truth about the US Dollar. You can only push a beach ball so far below the water before it explodes to the surface. And this baby is going to explode like the grand finale at a 4th of July Fireworks Show.

The U.S. dollar index rose this morning as the euro dropped on falling German business confidence and weak economic data that suggests the ECB might not be as aggressive in raising interest rates. When will people realize that the ECB is COMMITTED to fighting inflation? They are not going to cut interest rates no matter what the local politicians and the Western financial press suggests. What boggles my mind is that weakness in the Euro does not translate into strength for Gold. Why would anybody buy the pathetic US Dollar? Right now there is a 200 basis point difference in interest rates between the Euro zone and the US, in the Euro zone's favor. Bumbling Ben could raise interest rates 25 basis points on Wednesday, and the Euro would still have a 175 point advantage over the Dollar. Explain to me then any "advantage" to buying the Dollar? What? There isn't any? The Euro is STILL a better buy. Well, duh!

The Fed raises rates, the economy is destroyed. The Fed continues to cut rates, the economy is destroyed. The Fed does nothing, the economy is STILL destroyed. The handwriting is on the wall.

Japan had a fisrt quarter GDP of 4% and the Yen remains weak? Go figure. The US GDP was a contrived 0.9% and people still believe there is a "strong Dollar policy". Here's the truth about the "strong Dollar policy".

The "strong Dollar policy" refers specifically to the correlation between the US Dollar and the purchase of Oil that began in 1973 when the US got the Saudis to agree to accept ONLY US Dollars as payment for Oil in exchange for a lifetime of military defense of the Kingdom by the US. In time other Oil producing nations This arrangement was made so that there would be a constant demand for Dollars as all Oil purchased would have to be paid for in US Dollars. This constant demand for Dollars put a floor under the Dollar and allowed the US Treasury to print as many of them as they wanted to. In effect, for the past 35 years the US Dollar has been backed by Oil. The rising price of Oil is really in the best interest of the US' "strong Dollar policy" as it certainly creates a gigantic demand for the little pieces of trash. IN FACT most, if not ALL, commodities are bought in sold with US Dollars. Rising commodities prices create quite the demand for Dollars which the Treasury and the Fed are more than happy to provide because the only hope the country has to pay off it's gargatuan debt is to inflate the money supply.

The Dollar, being effectively backed by Oil, would certainly explain why the price of Oil, not Gold, has skyrocketed as the pace of inflation has accelerated. The Fed is shocked by this development, and powerless to stop it. The Fed heads are fools to believe a 25 point rise in interest rates will stop the rise in the price of Oil. Does this mean that our bets on Gold and Silver are in the wrong park? NO, not at all. It just means that when Gold and Silver begin their next legs up, and that next leg is fast approaching, they are going to literally explode higher. The next legs up in Gold and Silver quite probably will surpass the combined moves for both so far since the Bull Market in Precious Metals began in 2001.



They’ll Be Printing Money Like There’s No Tomorrow
That’s what master planners will be doing in continuing efforts to offset a collapsing credit cycle. And we are just a few short weeks away from when this should begin in earnest. Why not right now? Why will this likely take until July to begin in earnest? Well, for one thing master planners (heavy on the sarcasm) have it their minds they need to talk the dollar ($) up right now, at least until things start falling apart again. This is official Fed policy at present, and orthodox hedge fund managers are supporting it, along with selling commodities and precious metals. And the other thing is the stock market. As mention many times this year, hedge funds are locked into a sell commodities / precious metals and buy the $ / stocks trade for the present quarter that will be pushed aggressively right until the end of June.
- CAPTAINHOOK
http://news.goldseek.com/CaptainHook/1214233200.php



US Economy to be Hit by Many Credit Crisis Hurricanes with Many Eyes
Often times it is not the leading front of the hurricane that does the most damage, it is the backside. Here is the three stage pattern of hurricane damage.

Winds from the front side weaken but do not destroy structures.

The eye of the hurricane brings a foreboding sense of unnatural calm.

Wind comes slamming from the opposite direction as the eye passes over, shearing structures from the opposite direction.

The "calm" Bernanke thinks we are in, is nothing more than the prelude to the back side of a hurricane...
- Mike Shedlock
http://www.marketoracle.co.uk/Article5178.html



There’s been a lot of hot air coming out of the U.S.
It is going to get worse everywhere. Inflation is in the pipes. Soon, it will be backing up in the bathtub drain and spilling over from the sink. Over the last 15 years, the world has seen huge inputs of ‘liquidity’ – cash and credit from central banks and the financial industry. Everyone was perfectly happy when this juice was going into asset prices. But one by one the bubbles have popped...and now the liquidity goes where it is unwelcome – into commodities, food, and fuel.


And the poor man didn’t bother to save money, because he didn’t need to. His house rose in price...and there was always someone ready to lend him money when he needed it. But now...the cost of credit is going up too.


“U.S. credibility and the credibility of U.S. financial markets is zero everywhere in the world,” says Joseph E. Stiglitz, a professor of economics at Columbia University.


“Anybody looking at this from the outside says, ‘There’s been a lot of hot air coming out of the U.S., so why should we listen to these guys when they didn’t know how to manage risk?’”


The Chinese yuan has gone up 11% against the dollar so far this year.
- Bill Bonner, The Daily Reckoning



Another Gold Attack, then North to $2,000!
Jun 23, 2008 - 07:03 AM
By: Alex Wallenwein

Ordinarily, gold would be right before a major breakout point at this time, which should occur this week or the following week at the latest – but Wall Street and the entire US financial structure are so near a complete breakdown that another attack on gold must be expected. Here are the reasons why:

The Dow closed on Friday only a hundred points above its year 2000 high and March 2008 low of 11750. That point is so critical that "the powers" are in no position to allow it to be breached while gold is heading north.

The dollar has suffered severely from Tricky Trichet's hammer blow. The FOMC meets again this coming Wednesday. They have nothing to offer in support of the greenback - except for talk, that is. Expect that talk to begin early Monday morning, maybe even during overseas trading hours so the powers don't have to fight a dollar-decline and gold spike that has already developed momentum.

The stock index for US Banks is about to plow through its own nine-year support level, as can be seen from the chart below, and that is probably the biggest argument for yet another preemptive hit on gold.
http://www.marketoracle.co.uk/Article5181.html