Tuesday, February 23, 2010

Nothing Shocking...

"So it shall be written, so it shall be done," said Pharaoh.

And so it was on the CRIMEX this morning, as right on cue, the criminals of the futures market underworld went to work today smothering the Gold and Silver price as options expiration loomed. The US Dollar catches another misguided bid on the eve of a $44 BILLION 2-year Treasury note auction. And the equities markets retreated in fear after the less than stellar Consumer Confidence report was released this morning.

The Asians must be ignorant. They were buying Gold and Silver all night. Of course a stop was put to that as soon as the London Markets opened. Isn't it odd that the two "biggest losers" in the sovereign debt arena, Europe and the USA, are the two largest facilitators of Gold price suppression?

If you ever needed proof that the US financial markets are rigged, it's staring you in the face today. The Fed/Treasury will stop at nothing short of throwing their mommas under the bus to heard unsuspecting investors into the bond market. All so they can aid the US Government in kicking the can a little further down the road, delaying the Day Of Reckoning, whilst blowing more smoke up our collective asses.

Today's gargantuan 2-year Treasury auction closes at 1PM. Will another "soft" auction trigger a route of the CRIMEX criminals just as they prepare to pop the cork on another successful mission of deceit?

Consumer Confidence in U.S. Falls More Than Forecast
Feb. 23 (Bloomberg) -- Confidence among U.S. consumers fell more than anticipated in February to the lowest level since April 2009 as the outlook for jobs diminished, a sign spending may be slow to gain traction as the economy recovers.

Stocks extended losses and Treasuries gained after the report indicated a lack of job growth and impaired household finances threaten to restrain consumer spending. Without sustained growth in the biggest part of the economy, the expansion may be slow to gain momentum.

The economy “may not be out of the woods,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. Most of the deterioration “is labor market related. Consumer spending is going to disappoint throughout most of the year,” he said.


Nothing shocking about this revelation, unless you've lived with your head in the sand the past six months. Bumbling Ben Bernanke continues to run around Capitol Hill and tell anybody who listens that "when the recovery strengthens"... Ben, what recovery? This nation's economy is 70% consumer based, and the bulk of that the result of revolving credit. Tough to consider a recovery without the consumer Ben.

Be careful what you wish for Benny, a recovery, any real recovery, will be shot down by rising interest rates. You're damned if you do, and damned if you don't. For even more on the "threat" of rising interest rates, please see the posts linked below:

The one chart that screams higher interest rates

If you thought the yield curve was steep now, you haven't seen anything yet

The much-anticipated Treasury selloff is no long a matter of "if"

CHART: Wall Street's gravy train is about to smash into a brick wall

European investors pour money into gold
By Dan Norcini
Fears concerning the longer term viability of the European monetary union, which I might add were destined to come to the forefront due to the “one size fits all” model which cannot possibly work with a series of nations with such different cultures and differing economic models, have sent European investment money pouring into gold ( Did you not read years ago before any of this occurred when Jim wrote that the Euro was a basket of junk). FEAR is driving this phenomenon and fear of such nature is not going to be easily assuaged by rhetoric. Investors on the continent are doing what they always do when faced with a currency whose foundation is shaking – they are moving into gold in a very large way.

It is not just the continent, but also across the Channel, that investment money is pouring into gold – witness the rise in gold priced in terms of the British Pound, another currency which is rapidly losing investor confidence. It too is threatening to also make another all time high, something which it just did a mere two months ago.

Ditto for gold when priced in terms of the Swiss Franc. While it has not yet put in an all time high, it is currently at its highest level since 1980.

As you can see, anything related to Europe is struggling in terms of gold. The Fed may posture and preen and try to establish its “hawkish” bona fides, but the facts are that what is occurring as a crisis of confidence in Europe, is overriding obvious attempts by the official sector to derail the rise in gold.

Simply put – gold “just ain’t buying it” and is telling us that it WANTS to go higher. This is the kind of sentiment that is reflected when a market rejects a bearish dose of news. It is going to take a very huge concerted effort on the part of these enemies of gold to stuff the yellow metal into a box. The WAR is heating up and looks to become even more fierce. Fasten your seat belts.


Pension funds begin active investment in gold
MOSCOW (Reuters) - Pension funds have started investing actively in gold last year viewing the metal as a safe long-term investment, the head of the World Gold Council told Reuters on Wednesday.

"Last year we saw a very notable switch of pension funds to holding gold for the first time," Aram Shishmanian, the CEO of the council, told Reuters Financial Television on the sidelines of a forum organized by the Adam Smith Institute in Moscow.

He said China and South Africa were the top producers last year and added Russia's weak mining legislation was the main constraint for the sector development in the country.

The WGC does not forecast gold prices for 2010.

Shishmanian said he believed the market will be "robust."


Two Short Videos For Your Viewing Pleasure
The Golden Truth
Mike Maloney is considered an expert on economic and monetary history. In the two short videos below, he makes a case for $15,000 gold and, based on his outlook for gold, makes the case that silver is an even better investment than gold. His thesis is based on the historically tried and true idea that "silver is poor man's gold." As Mike explains: "when the common man turns toward silver because gold is too expensive, that's when the price of silver explodes. Enjoy: http://truthingold.blogspot.com/2010/02/two-short-videos-for-your-weekend.html

It's 12PM est. Gold and Silver continue to put up the good fight for the Truth. The Darkside maintains their wicked ways. Gold has held ground at 1101. Silver has held ground at 15.81. What a slugfest. The bond market teeters on the sidelines. In the end, Truth will prevail...

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