Thursday, December 17, 2009

You're a mean one, Mr Grinch...

Excuse me for laughing, but this "rally" in the US Dollar is a joke. As a matter of fact, it is a stretch to even call it a rally. It is a short squeeze pure and simple. Nothing has changed fundamentally for the Dollar that would warrant it being bought outright.

"There is nothing that I see on the horizon with our current Administration, political leadership or Federal Reserve officials that inspires the least bit of confidence in their ability to do the right thing for the long term prosperity of the nation. That makes me quite comfortable with gold for if I had to choose between trusting the current crop of bozos and the yellow metal, right now there is no competition whatsoever."
-Dan Norcini,

So Greece has received another debt downgrade from a "ratings agency". Aren't these the same guys that rated sub prime mortgage derivatives AAA+? Sure Greece is a mess, the whole world knows that. A sovereign debt default by the Greeks could spell a lot of trouble for the Euro folks. But buy the Dollar for safety? The currency of the largest debtor nation in the history of the world? I'd have to think a debt default by the USA would be a bit more threatening to the "World" than seeing Greece go down the drain.

So the Euro goes in the toilet and the Dollar rises. Did anybody notice that the Yen went nowhere today?

Then there are these clowns, fringe speculators, that keep insisting the Fed is going to raise interest rates "sooner than later" because the USA is "on the road to recovery". How in the hell can ANYBODY suggest the US economy is recovering with a 10% unemployment rate. An unemployment rate that is vastly understated via government accounting gimmickry. Listen to the Fed, listen to the President, listen to the Treasury Secretary. None of them really believes the country is in, or even near, a "sustainable" recovery. THE FED IS NOT GOING TO RAISE INTEREST RATES ANYTIME SOON. It is unlikely they will even raise them at ANY point next year.

Do you think The President renominates Bumbling Ben as Fed Chairman if Ben does not agree to NOT raise interest rates until AFTER the 2010 mid-term elections at the earliest? THERE IS NO WAY INTEREST RATES WILL RISE BEFORE THAT ELECTION.

Has anybody considered that this whole sequence of events since Thanksgiving has been a covert effort to bring the price of Gold down so the Chinese can buy "at a price"? These guys were running around calling the Gold market a bubble a week before the Thanksgiving Top. Reports were rampant that there had been a sea change in the Dollar futures from short to long. in the week prior to Thanksgiving. This is a con job by the BIG BOYS to get your Gold. DO NOT GIVE IT TO THEM.

Reports that the "Dollar carry trade" is unwinding are grossly exaggerated. If anything, the pros are doubling down as the Dollar gets a little bid up here. The Fed has even encouraged the carry trade by AGAIN by keeping its overnight target at 0-0.25% and pledged to keep rates low for "an extended period".

Yeah Gold took it on the chin today. A small price to pay for telling the Truth. Don't be surprised to learn a week from now that China, or India again, scooped up the remainder of the IMF Gold at these Christmas Sale prices. Wasn't Russia making a large Gold bullion purchase this week inside their country? Perhaps Russia was behind this big "markdown" in price ahead of settling their purchase. The supply of physical Gold is dwindling fast. We have all read the stories. If Gold is so hard to get your hands on, should the price be falling? Absolutely not!

The fall in Gold price here is all over now but for the cover up. Take advantage of this extension of the Gold Christmas Sale. Buy some Gold.

An Unbelievable Opportunity in Gold
Yes, there is no typo in the headline of this article. Today there is still an unbelievable opportunity to invest in gold that will disappear over the next several years as this monetary crisis deepens. Despite the general widespread sentiment of Western financial advisers that they have missed the run-up in gold and now it is too late to buy, this is not true at all. In fact, to illustrate how little people understand about the reasons to buy gold, of all my friends that I urged to buy physical gold more than six years ago when gold was less than half of its current price, I only know of one that has bought any gold, and it still took five years of my prodding, four times a year, for this single person to purchase gold. This is how incredibly misunderstood an asset gold remains today despite its enormous run higher in the past 8 years. This brief anecdote aptly illustrates the bias against gold and the foolish belief that gold is a bubble that persists today due to the massive propaganda and disinformation campaigns waged by bankers against gold. It is ironic today that public mistrust of bankers can be at such a high level at the same time that the public is still enormously willing to follow all of the bankers’ propaganda about gold. This great twist of irony illustrates just how powerful the bankers’ century long misinformation campaign about money and gold has been. Few people even understand how money is created let alone why gold is a protector of people’s rights.

Ninety-five percent of what I’ve heard financial advisers state about gold is wrong.
Ninety-five percent of what I’ve read in the public domain about gold is wrong.
Ninety-five percent of what I’ve read from the Western media about the US dollar is wrong. And ninety-five percent of the arguments I’ve read against owning gold, even when filled with supposed “facts”, are wrong. Many of the arguments against gold sound convincing, even though they are deeply flawed because erroneous data are used to produce flawed conclusions. But this is the very definition of propaganda – arguments that use erroneous data presented as “facts” to draw convincing conclusions that are highly flawed, though to the undiscerning eye, they seem quite logical. The reason that bankers have always spread so much propaganda about gold is because gold is the kryptonite of bankers. Gold allows people to preserve their wealth against their fiat currency debasement schemes.

Just as was the case with subprime mortgages when almost all of Wall Street got it wrong, the only reason anyone believes that gold is a bubble today is because people have forgotten how to think for themselves, foolishly believe that there are not hidden ulterior motives behind the beliefs spouted by Wall Street, and for some inexplicable reason, still internalize and accept all banker propaganda against gold while at they same time, they claim to distrust them. That’s why no matter how much further gold drops before this correction ends, if you don’t make the move to buy physical gold if you don’t own any, you will look back with regret five years from now and realize that you missed an unbelievable opportunity.

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