Wednesday, November 17, 2010

Back Up The Truck, Fill 'Er Up

If at first you don't succeed, try try again. Sorry I missed this yesterday... It appears that the CRIMEX CROOKS have again raised margin rates on Silver. And just so the Gold folks don't feel left out of the game, margin requirements in Gold have been raised also.

SINGAPORE, Nov 16 (Reuters) - The Chicago Mercantile Exchange said on its website that it is raising initial and maintenance margins for precious metals, effective after the close.

Margins on gold would be hiked by 5.9 percent and initial margins would rise to $6,075 for 100 ounces, and maintenance margins would go up to $4,500.

Silver margins will be hiked by 11.5 pct. The initial margin will be $9,788 for 5,000 oz, and maintenance margins are up to $7,250.

CME also raised margins on platinum and palladium by 20 percent. The new initial margin on platinum will be $4,950 for 50 oz, and maintenance will be set at $4,500.

The new initial margin on palladium will be raised to $4,950/100 oz, and the maintenance margin to $4,500.

Don't be dismayed! This is great news... The CRIMEX shorts have basically come out and admitted that their backs are against the wall, with no way out of their hole. By raising margin rates they hope to put off their day of reckoning, and "marginalize" the cost of their inevitable default.

This announcement would explain Tuesday's further "decline" in Gold and Silver "prices". I will not use the term "sell-off" as no real metal was sold. These conniving cheats have finally been caught with their hands in the cookie jar, and are making every effort to steer traders away from their paper Gold and Silver. Ironically, this will only push traders further into the physical market, and make these CRIMEX Crocks efforts to obtain the metal necessary to cover the rising tide of deliver demands near impossible.

Stop and consider that the total number of silver oz standing in this non delivery month of November is presently 3.88 million oz. This Silver has to be delivered in December, along with all the Silver that will stand for delivery in December from the contracts that expire on Novemeber 23. The CRIMEX Crooks are screwed, and they know it. And by increasing margin rates in a feeble effort to shake longs from the markets, the whole world knows they are facing their demise.

In Gold, the total number of ounces that are standing in this non-delivery month of November is 118,500 or 3.7 tonnes. This is a very high number for a non-delivery month, and these ounces must be delivered to those demanding it by the end of December....along with all the contracts that stand for delivery when the December contract closes November 23.

The clock is ticking on these Rat Bastids, desperation and deceit is all they have left...

On September 9, 2010 I said the following:

Thursday, September 9, 2010

The Advancing Army Of Physical Metal Demand
With Gold scratching at $1260, Silver clawing at $20, and the HUI GOLD BUGS INDEX sniffing 500, whats a bullion bank criminal supposed to do? Cheat!

With every increasing amounts of paper Gold and Silver being sold by the bullion banks, none of it backed by physical bullion, the CRIMEX goons have their backs pressed right up against the wall. They are trapped. There demise all but certain. Will they be allowed to default by their government backers, or will the government ride to their rescue with a rules change for settlement? No bother. A rules change will simply confirm the lack of supply to meet demand, and a mushroom cloud will replace the CRIMEX. Deceit inevitably ends in destruction.

Every conniving effort is being made as I type this to break Gold. Gold obviously wants to stretch its legs here, but the bullion banks keep hitting it below the knees. This is Gold's season to soar, and the CRIMEX Rat Bastids know this. They appear prepared to give up their existence as functioning banks in an effort to prevent the inevitable.

Signs have pointed to a December Default in the Precious Metals at the CRIMEX for weeks. That day of reckoning appears now to be close at hand. Buckle up folks, this ride could be extremely bumpy the next five trading days.

I came across the essay below, Bond Market Implosion & Gold Tactics, yesterday after I posted up my blog entry. This essay says everything I was trying to say when I referred to the present Gold and Silver markets as being in a bear trap".

What we are presently witnessing is the first wave of massive volatility swings in these Precious Metals markets as the central banks and their conies fight for their lives and that of their fiat currencies. What we have today is the makings of yet another massive bear trap very similar to the one we identified about a month ago with Silver hovering between $23 and $25, and Gold between $1315 and $1385.

The short side of these markets is the VERY WRONG side of these markets when looked at in contest of what is occurring in the bond markets. With Gold and Silver prices marked down here, investors should be backing up the truck, not looking for a better price down below. If you continue to look for a better price you run the risk of being left at the station when these Precious Metals launch, and squeeze the shorts mercilessly.

Please take the time to read this essay in it's entirety. It brings into focus the madness present in the markets today. Gold and Silver are clearly the safest refuge for all investors at this time:

Bond Market Implosion & Gold Tactics
By Stewart Thomson
1. “I cannot overemphasize the critical importance of factoring the bond market into any analysis of the crisis now.” That was the sentence I started yesterday’s update with, and it’s probably the sentence I should start every update with, for the next six months!

2. I see a lot of gold analysts trying to gauge the “gold market correction” but they are seemingly unaware that the bond market just imploded, and Bill Gross basically issued a massive sell signal on his own fund, the world’s largest bond fund. For the past few months I’ve urged you to understand that when the bond implodes, there would be initial weakness in gold followed by tremendous strength. Here and now, the words “Gold” and “Bond” must be mentioned in the same sentence, or you are out to gold market analysis lunch.

3. The conventional view in the public, and a view held by many institutional money managers, is that lower rates produce higher gold prices (correct), and higher rates produce lower gold prices. Well, sometimes, yes. Sometimes, no. Sometimes higher rates produce an upside gold parabola.

4. On the second situation, higher rates and gold, in a commodity demand-related gold bull market, higher rates are a negative for the price of gold. In such a situation, gold functions as a commodity, and the economy gets higher prices as demand for goods increases. The cost of borrowing increases as the demand for loans increases because business conditions are solid. As the cost of borrowing rises, that hurts demand. Prices (int rates) for money and the price for goods both fall.

5. Look out your market window. Do you see a booming economy, or potential economic Armageddon? My message to you: the new bankster game is in play, and it’s a big one; the bond market. Bond market chaos that could send gold stocks parabolic on the upside. Here’s why:

6. I coined the term, “The Institutional Awakening”. The awakening is a bankster game to create a mass mindset of terror amongst institutions, a mindset that further QE won’t work to continue the markets recovery, and instead further QE will see bond market prices stagnate or even fall, while the US dollar falls like a rock. All in all, a nightmare situation, given the backdrop of the marked to model OTC Derivatives quadrillion dollar. Marked to model is: Marked to Lies.

7. In practical terms, meaning flows of liquidity by institutions, what the institutional awakening means is a mass panic out of bonds and into…?

8. What the gold community needs to understand is the LAW. Institutional money managers have written mandates as well as unwritten mandates on what they can and cannot do with their assets. Pouring money into gold is not on their “oh yeah, let’s do it!” list. It’s on their “if we dump our assets into gold, then our investors pull out, we get no pay, and we could get charged with securities violations” list.

9. The history of institutional money flows in a currency and bond panic is a massive flow of liquidity into the stock market. Having said that, what do YOU think happens to the Gold Price Thermometer of global financial health what that occurs, or is thought to be about to occur? I don’t think most in the gold community really understand what just happened to the bond market, and what this event means for gold.

10. I know that because, other than Bob Moriarty at and Trader Dan Norcini at, almost nobody is even mentioning the imploding bond market, yet they are conducting one study after another as to why gold “could be in a correction”. Translation: “Here’s all the reasons why I just sold all my gold and you should do the same.” Thanks, but no thanks. In regards to the bond market, to quote John “Sir Johnny” Templeton, who uttered these words after the first phase of the markets crisis began in 2000,

11. “Does anybody know what just happened?”

12. Markets anticipate price and factor in what has already happened. The gold market is on the verge of anticipating the Institutional Awakening, meaning the gold price is on the verge of surging higher, not lower, while most are wasting current buy prices, standing there with no buy fills, thinking the game is to be the one to guess how LOW gold goes. Wrong tactics. Wrong tactics, bigtime.

13. The winning tactical play is to be the one who is buying gold here and now as it goes down. Much more importantly, the game is to buy gold stock, partially because there will be some buying of gold stock in major size by institutional money managers as the awakening, the mass terror, sets in. Gold stock has not even begun it’s parabolic move. The bond market demolition man is the trigger.

14. You can’t expect a monster fundamental factor like the implosion of the bond market to roll onto the gold market playing field and not cause a massive spike in price volatility. This is not business as usual. This is the factor in play now that could literally put Elmer Fudd Public Investor, Elmer Fudd Public Moron, onto the bread line. Millions of Fudds impaled by the Gold Punisher’s bond market harpoon. Those who thought gold was risky, and bonds lower risk than gold as an asset, are being revealed as complete market imbeciles. Their final revelation comes standing in the coming bread lines, created by the banksters to entertain and enrich themselves.

15. My view is the bond mkt-caused initial shock to the gold market comes after we make a new high above $1424, which would stun the current mob of gold top callers who you know, full well, are sure they have got 1424 as the top, after blowing almost every other top call, since the bull started at $250. One more for the Golden Gipper?

16. That initial shock on gold is going to involve the wrong view by institutional money managers that higher rates are negative for gold. If the scenario plays out, it could cause a big hit on gold of hundreds of dollars to the downside, perhaps as much as $500, a massive handoff of gold, from the fundsters to the banksters. But what actually occurs is going to depend on how the banksters play out their Awakening Game.

17. The theory is that falling bond prices are positive for the US dollar, because a higher rate of interest attracts institutional capital. I want to draw your attention to the 1979 period of time, when the US dollar began to rally, and the floor traders and large speculators began to short gold, thinking they were about to make piles of free money. The banksters were on the other side of that gold trade. Long Gold. What happened? Gold accelerated its rise, while the US dollar itself surged higher. The (leveraged) gold top callers shorted more, sure the top had to be in. Instead, gold surged hundreds of dollars higher, frying Team Shorty Pants to a golden crisp.

18. Today, analysts are thinking that a declining bond market is a positive for the US dollar and a negative for gold. That’s the view the banksters want everyone to have. All is fine, all is A-ok. A-ok or Z-ok, what’s a few letters in the alphabet of difference? For the record, I’m in the things are Z-ok camp, and have been since Dec 1999, when I told my people to get out of the stock market and begin gold items accumulation. Arthur Ziekel, head of Merrill Lynch Asset Mgt at the time, said “it’s 1929 again”. Ironically, millions of Merrill clients said, “No, it’s wieners to the sky forever time”.

19. What you are witnessing here and now with Bill Gross’ investors is an instant replay in the bond market, of the stock market with Arthur Ziekel. The firm’s own clients are too stupid to listen to the sell signals being given by the lead man. “I have $2 million in bonds. The head of the world’s largest bond fund just issued a sell signal on his own fund. Can I bring myself to sell one dollar of bonds now? No, because I’m ruled by greed.” -Elmer Fudd, Public Bond Market Investor, Nov 16, 2010. Fudd probably is being told by his golf ball advisors this morning that bonds are an ultra-bargain buy, gold is finished, and he’s lapping it up. Let’s give Fudd a pat on his head. Good lapdoggie, buy what the banksters tell you to buy, when they tell you to buy it, and all will be fine. “Take some more financial heroin, it’s better than vitamins, really.” –Banksters, Nov 16, 2010? Fudd, his bonds, and his golf ball advisors, are only things that I see being finished. Not gold.

20. Institutional monies will flow, and are flowing now, into the US dollar, yes. But notice the modest rise in the dollar compared to the fall in bonds. US Dollar "Big Rally" Chart. While subs know I’ve bought the dollar all the way down with my pgen buy generator, and the weekly chart shown here does look possibly positive, the extent of any rally is unknown, and all strength should be used to book profit on trading positions in preparation for a possible total wipeout type situation to the downside. There’s really not that much strength in the dollar given the magnitude of the bond wipeout. Here’s the Weekly Bond Mkt Chart. What a horror chart. It’s critical that you see what is really on this chart; you are looking at a potentially classic technical play of what happens when a massive head and shoulders top “fails”, meaning price rises above the right shoulder high. That’s what just happened recently and such a failure is a buy signal for a pipsqueak rally yes, (which occurred) but it is all-critical that you understand that such a failure is much more of a harbinger of danger to come, particularly after a major rally. The final top is generally near when such a h&s top failure event occurs. You may be, here and now, live, looking at the “bread lines trigger”, being pulled by the banksters. The coming pain to the real estate bottom callers is nearly unimaginable if the bond market end game scenario is now in play. The movie Apocalypse Now is reborn…

21. I believe a substantial portion of USD sells into any rally here should be re-allocated into the purchase of gold stock if this USD rally materializes into anything. I’ve talked about “Three Gold Nets” of buy zones for you on the GDX and the GDXJ/ZJG-tsx. Here’s the Gold Juniors Chart. Notice that I’ve now added a 4th much larger net in the upper price range. These “nets” are areas where you place buys on weakness. The larger net does not mean you allocate more risk capital and chase price. It means that at some point you are going to be faced with the reality of price in that range, and odds are high price is much more volatile than it is now.

22. Most bond investors are all-in on bonds now. Some institutional managers are cautious, and want much higher rates before buying the bond. There is an undercurrent of worry, the cusp of the awakening, a worry that QE targeted at govt bonds has reached the point of maximum saturation. “What happens if we load up on bonds, and the central bank QE programs cause the dollar to tank, while bonds go up only a bit? These rates of interest can’t compensate for a hit on the dollar!” –The Institutional Money Manager’s Mind. Nov 16, 2010.

23. If I was bankster, today I would be working feverishly to bait institutional money managers into the worldview that the dollar is a superbuy, and bonds are a superbargain. I’d look to get a rally in bonds from here and loan them money to buy more of their “winner”. Then I would look to take the bond down under 125 and start pumping the media with “maybe the situation has changed, maybe the situation for the dollar is much worse than we thought, and bonds may not be such a good investment.”

24. Watch the gold price thermometer while buying solid amounts of gold stock into this weakness. Ignore the analysis of the 1424 top callers who don’t understand the real implications of the bond market implosion. Get on the buy as the losers liquidate their gold stock in failure this week. Buy it… before the banksters take it all!

Fed likely to buy entire $600 billion in plan: Bullard- Reuters

Fed orders new "stress tests" for banks- AP

US launches criminal probes into bank officials- AP

Foreclosure class actions pile up against banks- AP

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