Tuesday, March 16, 2010

No More Crying Wolf

Yeah Baby, Yeah! Gold broke smartly out of the gate this morning, disrupting the CRIMEX goons morning coffee raid on the market. The bounce 1101 Monday afternoon was the tinder that lit this fire today. A close above 1127.90 Wednesday should open the door for a test of the neckline in the building Reverse Head & Shoulder now at 1140.

Silver followed Gold higher this morning rising once again above key resistance at 17.23. A close above the March 9 swing high at 17.63 opens the door for a short squeeze in Silver at the major downtrend line, now near 18.

The Euro retest of the consolidation breakout last Friday followed though fashionably today, and may have triggered a squeeze alert in the Euro.

The Dollar slipped below it's uptrend line today threatening to sqaush the "Bull Rally" [better known as a bear Market Rally, or SUCKER'S RALLY] and push the Dollar over the cliff at 79.55. A breakdown through 79.55 could se a VERY swift drop in the Dollar to the 78.50s or high 77s.

It's Going To Implode: Buy Physical Gold - NOW
By: Gordon Gekko
Any unbiased observer who knows how to put two and two together will be able to tell that something very fishy is going on. The urgency with which trillions in debt is being shoved down the market's throat at the worst possible time for the US Economy has the distinct smell of the government trying to extract every last bit of money from those stupid enough to buy the bonds before it all blows up. Rest assured, a huge chunk of this money is being funneled to the insiders who are most likely covertly using it up to buy real assets for themselves while keeping the crowds distracted with the stock market circus.

The bond market is the backbone of the US Ponzi Finance system. When it goes – and the day is not far in my opinion - the whole enchilada will come crashing down. Any type of financial asset that has a counterparty – which is pretty much all the paper assets in the world – bonds, futures, any and all derivatives and yes, even the paper currency – will crash. What will they crash against? Yes, that’s right - Gold. All the world’s capital – trillions, perhaps quadrillions of it - will come rushing into the very tiny physical (NOT paper) Gold market. Remember, the world’s real physical capital – real assets such as land, oil-refineries, mines, infrastructure, etc. will not vanish, only it will be re-priced in terms of Gold and its ownership transferred to those who hold it. Since everything stays on this planet, it is a zero-sum game and the winner will be Gold. In other words, an ounce of physical Gold will command a lot more in real purchasing power than it does today. Just like a national currency is a claim on goods and assets within that country, Gold will be a claim on global goods and assets worldwide.


Gold: Get Some
by Bill Sardi
And now for the big kicker question – how much physical gold is actually in the vaults of the gold exchanges? It has been estimated that just one ounce of gold backs 20 ounces of gold sales. The banksters have done it again. They have sold more gold on paper than is actually being held in the vault.

There are irregularities and delays in the delivery of physical gold by the New York Mercantile Exchange and Commodity Exchange, Inc (COMEX) which is the world's largest physical commodity futures exchange. It appears that COMEX vault doesn’t have all the gold it claims on its books. Some holders of gold IOUs are being offered cash instead.

You’re going to miss the major significance of all this fraud because you probably aren’t an investor in gold and think these developments will not touch your financial nest eggs.

On a supply-and-demand basis, if gold is not in vaults, then the gold supply has been artificially inflated. If it is revealed that gold supplies are in fact much lower, then physical gold will rise in value beyond comprehension and the value of paper money will crash. Investors will rapidly move to gold and out of the stock market, which will crash pension funds, etc. Such a collapse could cause a complete loss of confidence in paper money, which has no backing whatsoever, no more than the phony gold IOUs. It is no wonder these phony gold IOUs are such a guarded secret.

Investment advisor Marc Faber argues the price of gold today at $1100 an ounce is comparatively less than when it was sold for $300 per ounce a few years ago because it is in greater demand and far more scarce.

Gold should now be a part of every American’s investment portfolio.

Most Americans feel investment decisions should be delegated to others and often, when they have decided to invest their own money, don’t have the gumption to stand up to their stock brokers and investment counselors to pull out of their eroding 401k plans Americans have lost nearly a third of their wealth in 401k plans in the recent economic downturn. Americans will not be able to rely upon Social Security checks in their retirement and most private pension plans are under-funded.

While the public can only participate in commodity markets by investing in futures and stocks, the public has opportunity to participate in the physical gold market even though it is many times larger than the market for crude oil.

There is evidence that gold exchanges have issued more gold IOUs than gold in their vaults, which if discovered, would dramatically raise the price of physically-held gold.

In a currency crisis, US gold and silver coins would be the most recognized and accepted alternative to paper money.

While there is an increased demand for US gold and silver coins, the number of Americans who purchase gold coins for investment is still very, very small.

In the event of a currency crisis, individual holders of physical gold are not likely to make their stockpile of gold coins available for sale.

Newly issued gold coins are in greater demand than realized because (a) so little gold is directed for use in coinage and (b) the US mint can only supply a limited quantity of newly-issued US gold eagle 50-dollar pieces.

The spot price of gold is both a speculative price and a manipulated price, and is certainly not its true value in a currency crisis.

The barometer of the increased value of gold is the increase in the supply of money, which has reached unprecedented heights.

In light of the fact the government will soon not be able to pay interest on its overwhelming debt and has decided to print more and more money to meet its obligations to the public, it behooves every American to become their own banker with gold.

Gold is scarce and far more valuable than imagined.

Get some.


More Fed minutes document gold market manipulation[MUST READ]
By Adrian Douglas
The Federal Reserve's Federal Open Market Committee (FOMC) meets eight times per year to discuss and set interest rate policy. The minutes of these meetings are not released for five years. This ensures that few people will ever read them. Furthermore, the minutes are heavily redacted and edited.

In his 2008 book "Deception and Abuse at the Fed," Robert Auerbach documents how Fed officials perjured themselves when they lied to Congress about the existence of verbatim transcripts of FOMC meetings. The Sunshine Act of 1976 required all "agencies" to promptly make available to the public any transcripts, recordings, or minutes of discussions in official meetings. For 17 years Fed officials misled Congress in denying that verbatim transcripts or tape recordings existed. They claimed that recordings were taped over and transcripts were destroyed, leaving only the redacted and edited minutes in their archives. However, because of direct questioning by U.S. Rep. Henry Gonzalez before the House Banking Committee in 1993, it became clear the Fed had been lying. Shortly thereafter Fed Chairman Alan Greenspan ordered tapes and transcripts to be destroyed.

It is clear from such actions that the information contained in those transcripts must be very damaging or incriminating to the Federal Reserve.

After reading Auerbach's book I was inspired to dredge through published FOMC minutes. My thinking was that if an organization is so inept at covering up that detailed transcripts were retained, then perhaps it is also inept at completely redacting sensitive and incriminating information. What I found is quite astounding and serves as documented evidence by the Federal Reserve itself that it manipulates the gold market.


FOMC Press Release
Release Date: March 16, 2010
For immediate release

Information received since the Federal Open Market Committee met in January suggests that economic activity has continued to strengthen and that the labor market is stabilizing. Household spending is expanding at a moderate rate but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly. However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls. While bank lending continues to contract, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability.

With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve has been purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt; those purchases are nearing completion, and the remaining transactions will be executed by the end of this month. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.

In light of improved functioning of financial markets, the Federal Reserve has been closing the special liquidity facilities that it created to support markets during the crisis. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities and on March 31 for loans backed by all other types of collateral.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action was Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to the buildup of financial imbalances and increase risks to longer-run macroeconomic and financial stability.


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