Running On Empty

It was quite a shock to look in on the markets an hour before the CRIMEX open this morning and see Gold trading down over $15 and Silver knocked for about 50 cents an ounce. Lately the Precious Metals had fared best in the Asian/European markets. It was even more of a shock to see the fall in prices reverse as the CRIMEX opened at 8:20AM est. It was almost as if the prices were brought down overnight just so the crooks could cover some shorts at a profit this morning. Shocking!

And short covering may have been all that kept the markets from deteriorating further as by the end of today's equities session, Gold and Silver were at or near their lows prior to today's CRIMEX open. Caution was well advised, and patience rewarded.

15 and 30 year seasonal indicators suggest weekness in Gold the last two weeks of October.
http://news.goldseek.com/GoldSeek/1255586640.php

Immediate support in Gold lies at 1043, Silver at 17.25. Further support in Gold lies at 1028, 1024, and 1019. Silver has further support at 16.99 and 16.73.

The YEN has broken lower, and Gold could remain under pressure as long as the Yen/USD cross remains above 90.20.

International Forecaster October 2009 (#4)
By: Bob Chapman, The International Forecaster
Our view is that the elitists are currently buying time for the dollar, and stalling the rally in precious metals, by weakening other currencies until they are ready for the big stock takedown/correction. This process of supporting the dollar is becoming extremely expensive and difficult, so they had to take the Dow down 200 points on Thursday to start some stock contagion in Asia and Europe to flush some money into dollars and treasuries. The FTSE, Nikkei and Hang Seng were all down big in the aftermath of Thursday's US market takedown. We believe that the Illuminati will probably try to punish all the stock shorts in mid October on options expiration day by having one final round of short-covering before taking the markets down for the big correction to start a dollar rally just as the precious metals seasonal rally goes into full swing. This yellow fever crash is just a repeat of last year's strategy, but it will not be as severe for purely political reasons. In this manner, they will flush everyone else out of their short positions so that only they can make any money when the boom gets lowered and there will be many put options that expire worthless in yet another round of total criminality reminiscent of what they just did to the gold and silver call options this month. They will make money on the big rise from short-covering, and then will reverse course to profit from the big takedown, all through the unregulated dark pools of liquidity so no one can see what is happening. This will be their last hurrah when it comes to suppressing precious metals, and gold and silver will come roaring back as any and all confidence is lost in the stock markets and the economy, and as the elitists are forced to start driving the markets back up again to avoid revolution. The dollar rally will quickly fizzle, and the elitists will start ratcheting the dollar back down again, this time toward the 71 area on the USDX, and who knows where from there.
http://news.goldseek.com/InternationalForecaster/1255542993.php

End of US$ Global Reserve Currency
By: Jim Willie CB, GoldenJackass.com
The heralded end to the Petro-Dollar defacto standard completes the loop, the vicious cycle that will work to destroy the USDollar. In a sense, the US$ had to face an end, its sunset guaranteed when Nixon defaulted on its redemption value. The United States served as custodian for the global reserve currency. Naturally, the most damage will be to the US as a consequence of its twilight, especially after the recent era of fraud & counterfeit. Few look back to that date in 1971 as prophetic for declaring the USDollar’s days as limited and finite. The world will continue to trade the US$ in future years, but it must stand on its own value, based upon its own merit, the result of balancing its supply & demand, from the integrity of its fundamentals. Some climax events have come, or at least are previewed on an unfortunate path. Never in my memory has USGovt leadership been so disrespected. Never has Wall Street been so culpable for financial ruin, yet still in power running the USGovt finance ministries. The global revolt against the United States has many sides, but the financial aspect is most profound. It is hardly even covered in the US press. The US citizens have little comprehension of the enormity of a lost global reserve currency, with all its privileges, abused for constructing financial engineering towers and funding foreign wars. The direct effects will be felt in higher costs and assured supply, including credit.

No need to enter details, but the nation with each passing year resembles even more a very large Third World nation. Empty foreclosed homes, empty shopping malls, millions of jobless, discouraged business formation, nationalized failed firms, vanishing Middle Class, trillion$ federal deficits, monetized debt, reduced liberties, selective elite law enforcement, syndicate stronghold, huge prison population, controlled press networks, distrust of leaders, aggressive military, these are the characteristics that most people agree are unsavory. But when one takes them as a cornucopeia table display, they are described as Third World.

As the Yen Carry Trade enters its final phase in wind-down, the Dollar Carry Trade will accelerate. Imagine, the global reserve currency in the US$ is used to fund a carry trade, from a Japanese handoff !!! The world has been turned upside down in its financial axis. No doubt about it. We live in a bond-driven world. National finances matter little compared to the interest rate yield offered to financial speculators, whose efforts are amplified by leverage. Take the Japanese, for example. Their trade surplus endured for 30 years. In the last year it vanished. Yet the Japanese Yen is rising versus the USDollar. The carry trade is seeing a grand handoff. The Dollar Carry Trade is a bond-driven phenomenon once again. Its power might be best seen in the Yen currency valuation, in its surprising rise. The Yen is analyzed in the October Hat Trick Letter report. The invitation for the USMilitary to depart Okinawa has some effect. The bond arbitrage has much more. The Japanese finance firms receive little attention. They are experts at running and exploiting the carry trades. They are switching programs.

If you believe all is well in Japan and Tokyo support will continue, then you miss the ‘Lost Lackey Effect’ from the last year. The Saudis will not carry the US bags any longer. The Arab squires will carry bags with Kremlin markings. The Japanese will not carry the US bags any longer. The Toyko squires will carry bags with Beijing markings. The chief strategist at a major Japanese bank Sumitomo today warned that the US$ might fall to 50 yen this year. That would be a 45% decline. Daisuke Uno at Sumitomo expects the USEconomy to suffer a second sudden recession. He said, “The US economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger. The dollar’s fall will not stop until there is change to the global currency system.” The strong warnings reflect the growing rift between Japan and the USA. The outcome of recent elections in Japan changed the entire bilateral landscape. The pro-American LDP party was ousted, a major new piece to the ongoing Paradigm Shift.

Gold reached 1060 this week, and silver touched 18. This is just the beginning. The pullbacks like today should be exploited to purchase more at discount. Purchases of gold at the London exchanges are being interfered with, due to basic problems of not having sufficient gold bullion to satisfy delivery demand, otherwise known as DEFAULT. Reports arrived privately cite the LBMA officials offering 25% more than contract value if high volume gold futures contracts are settled in cash. Two different central banks are scrambling to locate gold for the contracts, but much of it is substandard bullion with under 90% purity. Sounds like a default is right around the corner, and some members have their nether stones caught in a vise. CLEAR EVIDENCE SCREAMS OF GOLD HAVING A $1300 CURRENT PRICE.
http://news.goldseek.com/GoldenJackass/1255640400.php

Happy Days Ahead With The Dow At 10,000!
By: Dan Norcini
Quite simply – The Dow has in effect gone NO WHERE in REAL TERMS for FIFTEEN YEARS! Let this sink into your mind – FIFTEEN YEARS have come and gone and all the gyrations in the Dow and all the ups and downs have accomplished not a single bit of real gains when compared to an ounce of gold.

The debauchery of the Dollar has made a mockery out of wealth preservation for those who held nothing but paper equities.
http://jsmineset.com/2009/10/15/happy-days-ahead-with-the-dow-at-10000/

Foreclosures: 'Worst three months of all time'
NEW YORK (CNNMoney.com) -- Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.

"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.

During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.
http://money.cnn.com/2009/10/15/real_estate/foreclosure_crisis_deepens/?postversion=2009101507

No Social Security hike, could boost new payments
WASHINGTON (AP) -- Social Security recipients won't get a cost-of-living increase next year for the first time in more than a third of a century, and that could boost President Barack Obama's plan to send seniors another round of $250 payments before the congressional elections.

Democratic leaders in Congress have signed onto the plan, greatly improving its chances, even as some budget hawks say the payments are unwarranted and could add to the federal budget deficit. Republican leaders said they, too, favor the payments but don't want to increase the deficit to pay for them.

More than 50 million Social Security recipients will see no increase in their monthly payments next year, the government said Thursday, the first year without an increase since automatic adjustments were adopted in 1975.

Blame it on falling consumer prices. By law, cost-of-living adjustments are pegged to inflation, which is negative this year because of lower energy costs. Social Security payments do not go down, even when prices drop.
http://finance.yahoo.com/news/No-Social-Security-hike-could-apf-1625922018.html?x=0&sec=topStories&pos=main&asset=&ccode=

Negative inflation? In a pigs eye and in phony US Government statistics maybe, but not in truth. If inflation was truly negative it is unlikely that Gold would be $1070, up almost $400 from the Fall of 2008's lows.

"Another round of $250 payments for seniors before congressional elections." Does this sound like an attempt to buy votes to you too? $250? OH, the generosity! Let's see, some quick back of the envelope math suggests that this "payment" will amount to $0.685 a day spread out over a 365 day year. Geeze folks, don't spend it all in one place. How insulting....