You'd have to be dumber than dirt, blind as a bat, or asleep at the wheel not to know exactly what occurred in the Precious Metals and currency markets this afternoon. If you need any indication of how pathetically desperate the US Federal reserve is to maintain the illusion of a recovery in the economy, look no further than the price charts of the precious Metals and the currencies today.
What are the odds that at PRECISELY 2PM est this afternoon the price of Gold would suddenly drop $10 an ounce and the Dollar would rally hard against the Euro? Seriously. What are the odds?
Who needs odds. At 2PM est Bumbling Ben Bernanke, aka Pinocchio, aka Often Wrong, aka Professor of Make Believe, took a seat before the Congress to deliver the central bank's semiannual report on monetary policy. Remember folks, this is the same knucklehead that sat before this same Congress and told them that the sub-prime crisis would be contained, and that the cost of it to the government would be less than $200 MILLION. [Um, yeah right.]
How many times have we seen this pompous ass go before Congress and tell his fairy tales and NOT see Gold fall and the Dollar rise? Every time he shows up somewhere to speak in public, no matter what the sentiment of the day is, as soon as he "goes on" Gold falls and the Dollar rises.
This BS doesn't "just happen", it's made to happen. Think about it...
Today the first words out of this droolers mouth are 1000% Dollar negative:
"Even as the Federal Reserve continues prudent planning for the ultimate withdrawal of monetary policy accommodation, we also recognize that the economic outlook remains unusually uncertain."
"Unusually uncertain"? We don't make this stuff up folks. Would you buy the currency of a country whose top Central Banker was "unusually uncertain" about the prospects for his country's economy? I DON'T THINK SO. But miraculously, the Dollar rises swiftly on the "uncertain" words of this wizard of high finance. Of course this forces the price of Gold to deteriorate just as quickly...despite the fact that Gold has been joined at the Dollars hip for the past two months. What a f*ckin' joke.
"We remain prepared to take further policy actions as needed to foster a return to full utilization of our nation's productive potential in a context of price stability."
This mouthful of manure is code for, "We plan to drop money from helicopters if we have to, in order to maintain this illusion of economic recovery." This announcement is 2000% Dollar negative.
"Although fiscal policy and inventory restocking will likely be providing less impetus to the recovery than they have in recent quarters, rising demand from households and businesses should help sustain growth," Bernanke said.
Absolute BULLSHIT! Rising demand from households and businesses? Where? Not in this country Ben, you illiterate ignoramus. I guess Ben doesn't read much of the financial data making the the news headlines of late. Retail sales are down. Housing starts are down. Credit purchases are plummeting. Loans to small businesses are plummeting. Demand Ben? Is this demand similar to the containment of the sub-prime crisis? You know, more wishful thinking? Why didn't Osama blow up the Federal Reserve instead of the World trade Center?
Bernanke said a weak job market will likely remain a drag on consumer spending, and said it would take a long time before the economy can restore the nearly 8.5 million jobs lost in 2008 and 2009.
But demand from households and business will be rising. WTF? Rising demand in a weak job market that has lost nearly 8.5 million jobs. Yeah Ben, we don't call you Bumbling Ben for nothin'!
Ben of course once again blamed those silly Europeans for all our fiscal problems here in the States. Damn, if it wasn't for them, our economy would be flying high. The mark of a loser and a desperate man is the man who blames others for his own mistakes. It's called a failure to take responsibility for your own actions. Ben, the US Federal Reserve is the sole reason the United States IS in a Depression TODAY. Sugarcoat it anyway you want. Have your banking buddies "buy the Dollar" on your command. There is no recovery, and there will be no recovery unless and until the US Federal Reserve is destroyed by the American people.
So there you have it. Dollar up, and Gold down on Absolute Bullshit from that man with diarrhea of the mouth, Bumblin Ben Bernanke. This testimony could not have been more Dollar negative. The rest of the World sees that, and they will be quick to punish Pinocchio for his fib.
Bernanke: Fed will act if soft recovery falters- Reuters
Read the text of his testimony here.
Comex Silver Intrigue Builds
By Dave Kranzler, The Golden Truth
Surprisingly, the open interest on the Comex for both gold and silver declined again yesterday. This is unusual for a day in which the price of gold and silver rise like they did yesterday. Once again it calls into question the Comex's reporting credibilty. There remains 719 open silver contracts - representing nearly 3.6 million ounces of silver. This is also an unusually high amount of open contracts this late into a delivery period. In fact, if you are a large holder of SLV who aspires to one day redeem your shares for silver, and given that JPM is the custodian and the absurd short in Comex silver, I would be very afraid to look in that cupboard for fear it might be bare.
In order to dispel any confusion over key expiration dates for the balance of July, as they apply to gold and silver trading, here is the Comex schedule: Options expiry for August contracts is July 27; Last trade day for July contracts is July 28; Last notice day for delivery is July 29; Last delivery day is July 30; First notice for August contracts is July 30 (anyone not funded for delivery must be out). All of this information can be found LINK.
Just for the record, I fully expect that this bulge of open silver contracts waiting for delivery will come and go with very little drama - at least for public inspection. Having said that, we have been on the waiting end of Comex silver several times, two of which HSBC was the delivering counterparty AND we did not receive our silver until well after the contractually specified last delivery day. In fact, last year we received our April silver on June 20th. I have also received reader emails detailing similar delays in receiving Comex silver. What this points to is extreme stress in Comex silver inventories and one of these months - although as noted I don't believe this month - the problems behind the scenes will become apparent to all.
"Gold Reality Charts Update"
By Stewart Thomson
9. Two of the best volume experts in the gold community have noticed the dwindling volume as gold falls. Selling volume is drying. The risk in buying gold is decreasing. The lower the price of gold, the less risky it is to buy, and there are simply less sellers pressing on that price now, so the odds that gold is near a turn to the upside are growing, not falling. Gold has now declined approx $88 from the high. Those who buy only physical gold should be looking to make a move on the buy side here and now, as we’re near the $100 price sale that is a “mandatory” buy for physical players.
10. Instead of buying the sale, there’s a growing mob standing outside the gold store chanting, “raise those prices, then we’ll buy, raise those prices, then we’ll buy!” Madness. Look at all the grandmothers walking past you into the store to get their gold on sale. Get in there!
11. I’ve talked about the “gold plank”. The pirates used to have those they didn’t want around anymore walk a plank they extended off the pirate ship. The plank walkers walked over the edge and drowned.
12. Technicians are looking at the gold chart the same way. They see gold and silver like a long plank, a trendline, and it has broken so we’re all about to die in a repeat of 2008. We’re all supposed to get down on our knees in front of the paper money photocopier God, and worship it by handing over our gold because the paper money print rate might have slowed for a microsecond.
13. Here’s the gold chart with a look at the gold investors walking over the edge of the plank and bailing. By the way, I believe this is a cartoon painting created by the banksters, not reality. The banksters are master chart painters. I’ll show you reality in the next chart, but let’s first take a look at how most investors see the gold chart right now, and their gold investments, which is how the banksters want you to see the chart.Gold Trendline Break Chart
14. The implication of the chart is that the uptrend is dead, so you should ignore the fact that the trillionaire banksters are buying all that is sold by the funds and the gold community (where did you think all the gold is going, into the garbage?), and ignore the fact that the gold store is holding an 88 dollars off gold sale. Just liquidate all your holdings now, or at least a big chunk of them.
15. Here’s my picture of chart reality, the one the banksters don’t want you to look at:
16. Gold Trendline Reality Chart Do you see where price is? 1180 is a key trendline buy point for gold. There is no broken plank. The chartists are too focused on the short term, drawing micro lines. The fact is that the trendline from 1045 is a key buy point now, and that’s leaving aside the fact that I don’t sell uptrend line breaks. I buy them. If the uptrend line from 1045 breaks, I’m an even bigger buyer, not a member of the mob in front of the gold store demanding higher prices before I’ll buy. The mob that broke out of the insane asylum?
17. The gold community needs to get a grip on the difference between fundamentals and market tactics. When price is rising, all we hear about is China, China, China. I’ve called the Chinese Gman a disgrace to gold. Unlike the relatively short “lifespans” of the Western World gov'ts, the Chinese gov't has been around for thousands of years. Yet all they have to show for those thousands of years is a few thousand tons of gold. Western gov'ts arguably have an excuse for being “gold babies”. Not China. Sadly, I wouldn’t be surprised if the private vaults of the leading Chinese bankster and Gman families have a mountain of gold in there, ripped off from their citizens. The game of keep the average citizen away from gold, and diluting your money out of gold, is not a Western gov't invention. It goes back thousands of years. The Western banksters are quick learners, however. Leaving all that aside, the fact is that the price of gold can be moved $500 in either direction, up or down, regardless of the underlying fundamentals, and that’s all the banksters need to separate most investors from their gold. We know all the bullish fundamentals for gold are not just intact, but stronger than ever. But what good are those fundamentals to you if you are whipped out of your gold on price weakness by the banksters? I know people who cheerlead gold as price rises, telling me all about how Chinese Gov't is so pro gold, how perfect and wonderful their gold juniors are, how everything is gold, gold, gold, forever! Then when gold falls, a bit, they are liquidating like there is no tomorrow, prostituting their gold, and themselves, to the paper money pimp.
Proof of gold price suppression -- gold and the U.S. dollar[fascinating reading]
GATA board member Adrian Douglas, editor of the Market Force Analysis letter (http://www.marketforceanalysis.com/), examines the ratio between the supply of gold and the U.S. dollar and concludes that the dollar's gold backing has fallen to a mere 2.3 percent and that the real dollar value of gold now approaches $53,000 per ounce. Douglas' new study is headlined "Proof of Gold Price Suppression: Gold and the U.S. Dollar," and you can find it in PDF format with a chart at GATA's Internet site here:
When, Not If
By: Theodore Butler
Today, President Obama signed into law the historic Financial Regulatory Reform legislation package. I reviewed this in “A Done Deal” a few days ago, so I won’t restate my position here. I’m putting this short missive out to bring your attention to a new video put out by Commissioner Bart Chilton on the same issue. www.cftc.gov/files/oirm/video/cftc_023455.wmv
I sent the link earlier to a subscriber to test if he could retrieve it, and he responded that he thought that I had produced the video. I didn’t, but it was a fair observation, since the centerpiece of Commissioner Chilton’s statement affirms that the new law mandates that the CFTC establish position limits in order to prevent market concentration. Position limits in silver to break the stranglehold of concentration on the short side of COMEX silver has been my mission for 25 years. Chilton confirms that will be the law. Please watch the video and then decide if my take is correct.
According to Commissioner Chilton, it seems clear that the new law abruptly alters the former debate of whether the Commission should adopt strict position limits in COMEX silver into what the position limits in COMEX silver should be. This is a remarkable transformation. Suddenly, it’s a question of what the position limits in silver should be and when they should be enacted, not if we should have them. Some may wonder how this remarkable transformation came into being, but there is little doubt in my mind that the architect was Gary Gensler.
What should the position limits be in COMEX silver? As I have maintained for two decades, and with which almost 3000 public comments concurred, 1500 contracts is close to the proper number. I based this on real world production and consumption, world and exchange inventories, and an objective comparison of silver with all other commodities of finite supply. The case is easy to make and has been made repeatedly. Now it is up to those opposed to the 1500 contract position limit to state what the limit should be instead and why. There has been conspicuous silence on this matter to date. It is time to break the silence and initiate an honest debate. Of course, it is not just about the level of limits, but in enforcing those limits on the big shorts, like JPMorgan. I assume Commissioner Chilton wasn’t excluding JPMorgan from the new law, but he can speak for himself.
As to when legitimate position limits in COMEX silver should be enacted, the proper answer is yesterday. That should always be the regulatory response to a crime in progress. The commissioners can take their time on what the position limits should be in other commodities, but not in silver due to presence of overt concentration and manipulation. But the timing is not up to you or me; it’s up to Commissioner Chilton and the other commissioners.
Therefore, I suggest that you ask them when legitimate limits will be initiated and what the limits will be. It’s time to stop stalling and for the CFTC to get specific. Silver has been treated as a dirty word by the Commission; something to be avoided in polite company, even though the majority of people writing to the Commission write to them about silver. Enough already. It’s time for Commission to come out from the shadows on silver and let us know where they stand. What should the limits be in silver (and why) and when will they be enacted? Don’t accept any beating around the bush. Press them to enforce the law now.
July 21, 2010