Thursday, September 10, 2009

When Push Comes To Shove

"...the U.S. dollar is about as worthless as a screen door in a submarine."
-morris374, in Tech Ticker comments on Yahoo Finance

Fed survey shows US recession may be over
WASHINGTON (AP) -- Economic activity is stabilizing or improving in the vast majority of the country, according to a new government survey, adding to evidence that the worst recession since the 1930s is over. The Federal Reserve's snapshot of economic conditions backs predictions by Fed Chairman Ben Bernanke and most other analysts that the economy has started to grow again in the current quarter.

The Kiss Of Death. ANY and ALL growth the economy "may" be experiencing is directly the result of goverment stimulus. The recession is NOT over by any stretch...unless you consider that it is morphing from a recession into a depression. It was amusing yesterday afternoon at 2PM est when the Fed report hit the wires. The Dollar caught a bid, Gold tipped over and equities tanked. Wishful thinking, a complete load of crap...

The Great Fakeroo Recovery
By: Llewellyn H. Rockwell, Jr.
Why do matters in the financial sector look better? It is wholly a consequence of trillions in artificial stimulus, a market re-jiggered and falsified through money creation and partial nationalization and bailouts. These do not last.

A few months ago, many people were worrying about the inflationary future that is suggested by the astonishing increase in phony bank reserves over the last year. Today, however, the tune has changed. Bernanke is now being heralded as the great genius of our times.

What this suggests is that no efforts are going to be undertaken to suck the phoniness out of the system. The new reserves are going to stay in the system, and every effort will be taken to convert the reserves into real money supply increases. And if this actually happens, you had better hold on for a wild inflationary ride.

Gold Waiting to Pounce On Summit’s Failures
By: Rick Ackerman, Rick's Picks
With the G-20 meeting in Pittsburgh just two weeks off, we didn’t expect gold’s widely anticipated push past $1000 to be a piece of cake. Indeed, Bernanke & Friends are probably throwing everything they’ve got at gold right now to suppress its price. And for all we know, Uncle Sam has loaned every ingot (supposedly) in Fort Knox to carry-traders at J.P. Morgan and Goldman Sachs. The ability of these well-connected bullion bankers to borrow more or less unlimited quantities of physical gold is for them even better than a license to print money, since money itself is most surely not what it used to be. The feather merchants have repaid the government’s kindness by sitting on gold futures prices. This price-fixing operation is all the more impressive because its perpetrators have managed so far to peg bullion to $1000 even though the U.S. dollar has broken some key technical supports in recent days.

Gold is seen struggling a bit here to clear $1000 with some authority. This is not to be unexpected as Gold rose to $1000 overbought, technically. The Euro is up against significant resistance at 1.46 here, so it may be difficult for Gold to bust through the $1000 barrier just yet. The longer it lingers here, the more likely weak longs will jettison their positions in frustration. "Technically" the best thing that could happen here is for Gold to retreat and retest the breakout near 970. This would give Gold a chance to work off some froth in the market and then crush the wall at $1000 in the latter half of September on it's way to the 1200s.

Derivatives Collapse and the China Gold and Silver Markets[MUST READ]
by Bob Chapman
So now the COMEX gold and silver commercial shorts, the owners of the COMEX exchange, and all the past CFTC officials who allowed this nefarious paper fraud in gold and silver to rise to new criminal heights based on bogus backing by unregulated derivative contracts written and guaranteed by an often contentious and even hostile foreign government, are all doing double shots in their knickers. If the very angry, and very duped, Chinese renege, the entire COMEX is going down, big-time baby!!! The whole system is about to blow if the Chinese renege on these contracts!!! We wonder what the Chinese want in return for not reneging! Whatever it is, we can guarantee you that the US government is not going to like it very much.

Without the Chinese OTC derivative backing, all COMEX gold and silver positions would be totally naked. That is because COMEX inventory reports for both gold and silver are a total fairytale fraud. Despite many hundreds of requests for physical delivery which were satisfied over the course of many months, the gold and silver inventories reported by COMEX have remained unchanged. The COMEX even had to enlist the help of the ECB and the Canadian mint to satisfy those requests for delivery, thereby demonstrating that what the COMEX reports as inventory is nothing but a phantasm. We recommend that any and all COMEX gold and silver positions be abandoned as being outright naked and fraudulent.

Take physical delivery of your gold and silver bullion from COMEX if they have any, or take your ETF share in lieu of physical delivery and convert it into bullion immediately, and take physical possession of it. Do not trust any bank, any mint or any ETF or pooled fund to hold your gold and silver. Otherwise you potentially face a total loss of principal

When the COMEX goes down in a blaze of glory, which is now inevitable, everyone who owns any ETF gold and silver shares, and especially those who have received these shares in settlement of their imploding COMEX contracts, are going to ask for physical delivery from the ETF's because all confidence will be lost in the system. Then comes the implosion of the ETF Ponzi schemes as everyone finds out that not only did the COMEX have no gold or silver to back its contracts, but that all the gold and silver ETF's were nothing more than gold and silver naked-shorting, leasing and price suppression schemes. We now predict that the requests for physical delivery from the ETF's will far exceed what they planned for, and further that the whole nefarious scheme will be exposed as being a Madoff-like Ponzi scheme, because their touted gold and silver bullion holdings have all been sold off, leased or otherwise encumbered.

In fact, the gold and silver being promised as backing for the holders of ETF shares may be the same gold and silver that is used to back COMEX futures contracts. The ETF's may well be leasing their gold and silver to the COMEX, which may then be handing it out to settle COMEX physical demands for delivery. Well guess what - you can't both own the same gold and silver at the same time! Now the COMEX has dropped that pretext, after sucking the ETF's dry, and they now hand you ETF shares backed by what may well turn out to be non-existent gold and silver! The cartel couldn't screw the ETF shareholders any further, so now they are screwing the COMEX investors as well. We therefore recommend the abandonment of all pooled accounts held by ETF's, mints and any gold and silver dealers that are not on our recommended list, as being potential investment scams. If any dealer offers to hold your gold and silver for you in return for a paper promise instead of physically delivering it to you, just tell them thanks, but no thanks. Many dealers may be depending on paper gold and silver themselves to cover their gold and silver promises to their customers, so if this paper gold and silver evaporates, so will your dealer's promises. This whole group of cartel henchmen-con-artists from the Illuminist cabal could easily get caught in a failure to deliver known as a commercial signal failure. The gold and silver shorts will completely implode if this occurs, and the Chinese strategy to renege on its OTC gold and silver shorts could well be the catalyst that brings such a cataclysm to fruition. Then, when gold and silver skyrocket as the shorts implode, only those who took physical possession of gold and silver, or who own gold and silver producer shares, will profit, while those holding futures contracts, ETF shares, mint certificates and precious metal derivatives will watch their contracts and shares go up in smoke like a Mission Impossible tape. That is because the major exchanges, sponsors and counterparties will go bankrupt, and you will have nothing left to go after to satisfy your paper promises.

The magnitude of this paper gold and silver scam will even exceed that of the Madoff Ponzi scheme. The Stanford scam will look like chump change by comparison. You should own only physical gold and silver, which is in your possession. The only paper gold and silver you should own are the producer shares, period. All futures contracts, ETF shares and mint certificates are now potentially bottomless capital loss pits.

13 Reasons For Major Gold BreakOut
By: Jim Willie CB,
An acute lack of gold comprehension is evident almost on a global basis. The entire system is wedded to toxic paper. For the most part, so-called experts, industry analysts, and network anchors have absolutely no idea why gold has risen above the $1000 level. They are blind to the Paradigm Shift away from the USDollar and cannot admit the breakdown of the global monetary system. Their jobs might require them to turn a blind eye to such catastrophic events. At best they might have spent their entire careers inside the noxious US$ Greenhouse Dome, unable to see from an external vantage point, in no position to see the Dome from an outside perspective. It will be interesting to observe how long the ‘SYSTEM’ remains ignorant of the massive changes taking place, as the stages they sit upon and work upon are slowly vanishing. Their claims for golden reasons are vacant shallow factors. THEY miss the major factors. They do notice a staggering amount of fiat money being created without basis, which would fall generally under item#2. The actual reasons are many. The list is somewhat debatable, subject to interpretation. Some argument might even come from within the gold community.

Basically the reasons extend from the many tentacles and ramifications of the Grand Paradigm Shift in progress, the complete overturn of the USDollar global financial system. It is being turned upside down before it goes inside out, and finally fractures into a million pieces. This is an irreversible process that is already one year into the collapse process. Here are reasons according to my analysis and perceptions. They only number 13 this time:

1) PARADIGM SHIFT away from a USDollar centric world manifested as the global revolt against the USDollar in reserves management and transaction settlement, extended from bank structures

2) colossal irresponsibility of major central banks with expanded balance sheets, money creation, and credit growth, endorsing their government profligacy

3) failure of the central bank franchise model, exhibited by the ongoing credit crisis, insolvency of banks, and desperate attempt by the US Federal Reserve to serve as the global bank

4) ruined global monetary system from the complete debauchery of money itself

5) perversion of the USDollar from required USMilitary subsidy, from coerced USTreasury Bond support, and from tacit acceptance of Wall Street corruption (past bond fraud and debt rating agency collusion without prosecution)

6) proliferation of OTC derivatives over $1 quadrillion in value with no prospect of resolution, no hope of regulation, and deep corruption, but with deadly dependence

7) gradual recognition of a financial crime syndicate having taken control of the USGovt finance ministry, that involves official channels of slush funds, bond counterfeit, and narcotics money laundering

8) dishonor of financial contract law, chronic lapses in financial market integrity, and constant intervention in those financial markets

9) expectation of mammoth price inflation just over the approaching horizon, unless the central bank balance sheets inflate beyond measurement in Weimar style

10) anticipation of banking system meltdown in at least the United States and United Kingdom, likely to result in bank holidays, useful for a forced Bank Consolidation with dead banks capturing the system or for a climax Wall Street theft event

11) observation of gradual economic disintegration and the decline of global trade

12) trend toward commodity stockpiles, of which gold is the financial commodity core element and crude oil is the industrial commodity core element

13) specter of numerous pockets of armed conflict, military war, and possible nuclear events, as chaos spreads and nations desperately exploit the confusion, and react to lost sponsorship relations, if not parasite-host pacts.

The move to kiss $1000 gold was the foreplay, the first dance, the initial step to capture global attention and to preview the next much bigger move. Some important less visible factors are at work to push the gold price up, somewhat hidden from view. The Intl Monetary Fund and the London G-20 Meeting bear on the gold forces. The full breakout is imminent. It could be days, or a couple weeks, probably not more than a month. Ramadan ends in ten days, and Chinese anger is spilling over. Underlying structures are breaking with each passing week. Bank ripples are being felt. Insolvency is spreading like a disease, while corruption spreads like a cancer. Central bank money creation occurs like from a garden hose. Stories will be told about these days for decades. This is history in the making. They are accumulating gold bullion here. The fools are still selling gold, unaware of its 100% rise in price upcoming. Actually, what comes is a quasi-global 50% currency devaluation. China is cutting deals with the I.M.F. to secure central bank gold in huge blocks, much like geopolitical horse trading amidst grand power shifts for global control. If the West wishes to enjoy the benefits of Chinese credit supply, then China must be given much of what it demands. In short, the gold price will break out past 1100 and past 1200, toward a 1300 target, WHEN CHINA DECIDES TO GIVE THE ORDER.

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