Stocks Rally on Greek Relief, Shrug Off UBS Woes- AP
Markets were calmed Thursday by growing expectations that Greece will not be defaulting on its debts anytime soon and will get the next batch of rescue funds due from its international bailout package.
This headline summary should read:
International debt addict, Greece, will receive another prearranged debt fix from their global debt pusher, in the hopes that Greece will one day pay off it's international debt addiction courtesy of the global debt pushers.
Didn't the global financial markets perform this identical debt drama back in June and July before coughing up a prearranged debt fix for Greece? Will we get this same debt drama performed again when the NEXT prearranged debt fix is pending for Greece in December?
Are we now supposed to believe that the European "situation" is somehow better today than it was yesterday? I can't imagine how high you would have to be to believe that. Nothing regarding Europe has changed. In fact, NOTHING in the GLOBAL debt crisis has changed. If anything, giving Greece another debt fix only makes the crisis worse. Clearly the debt fix they received in June did nothing to lessen the global debt crisis, why would another one change anything?
Fed up with the financial media's excuses for Gold's weakness recently? This week began with headlines trumpeting Gold's weakness because of "strength in the Dollar" and "investors need to sell the Precious Metal to cover losses in the equity markets". Today we are being told that Gold's weakness is a result European debt fears easing slightly Wednesday following German Chancellor Angela Merkel's comments that Germany has no desire to force Greece out of the euro zone and that she is hopeful that the struggling country will do what is needed to qualify for its next tranche of aid.
Where is my bullshit detector?
The US Dollar's recent bear market rally, based purely on weakness in the Euro, peaked just after the open of trading this week on Sunday night at 77.78 basis the USDX. The US Dollar reached it's low for the week at 76.49 at 6AM est this morning, down 1.6% on the week. What strength in the US Dollar?
Open Interest in CRIMEX Gold futures has barely budged to the downside this week despite the "selling to cover losses in the stock markets". If Gold was actually being sold to cover losses elsewhere, CRIMEX open interest would be tumbling.
Take Monday of this week for example. With Gold down $46, open interest in CRIMEX Gold futures only fell by 1087 contracts to 517,071 total contracts. Nobody was selling Gold to cover their losses in stocks, if that were true open interest would be down substantially more than 1087 contracts.
On Tuesday of this week, with Gold Up $16, CRIMEX open interest "fell" 5003 contracts to 512,068 total contracts. If traders were selling Gold to cover losses in equities, why did open interest in CRIMEX Gold futures drop more on a day Gold prices rose, than on a day they fell? Open interest fell Tuesday in Gold as prices rose because traders were covering their short positions in Gold.
No Gold has been sold this week by investors to cover losses in their stock portfolios. Any Gold sold this week has been of the paper variety. Gold that doesn't exist was being sold by the CRIMEX Banking Cartel in an effort to halt the rise in the price of Gold in response to last weeks Swiss National Bank intervention in the Swiss Franc AND the continuing deterioration of the Global Debt Crisis.
This brings us to this mornings pathetic Gold "intervention". Right on cue as the CRIMEX opened we are witness to yet another "waterfall" drop in the price of Gold...for whatever reason I am sure the financial news media will be sure to "explain" for us shortly.
Oh look! We did not have to wait long:
GFMS: 1st Half World Gold Investment Falls 24% To 624 Tons
By Rhiannon Hoyle
LONDON -(Dow Jones)- World investment in gold dropped 24% in volume terms to 624 metric tons in the first half of the year, although in value terms investor demand for the yellow metal was only slightly lower year-on-year, slipping 5% to $29 billion, metals consultancy GFMS Ltd. said Thursday.
In an update to its 2011 Gold Survey report, GFMS--which was acquired by Thomson Reuters Corp. (TRI) last month--said the decline was wholly down to a return to net implied disinvestment, which accounts for all buying and selling not covered by fabrication, official sector, bar and coin purchases and producer de-hedging, such as by institutional investors and exchange-traded funds.
"The decline in tonnage terms in the first half was by no means a result of a hefty fall in general investor interest, as the lower figure was entirely due to a swing to net implied disinvestment--a proxy for investor activity in western markets--in the first quarter of the year," GFMS said.
According to the survey, there was a net implied disinvestment of 94 tons in the first half of 2011, following a net investment of 232 tons in the second half of last year, and 284 tons in 2010's first six months. It was the first half of net implied disinvestment recorded since the second half of 2008, when the global economic crisis prompted heavy liquidation across world financial markets.
The consultancy added: "In contrast, demand for the yellow metal in Asian countries, particularly in the form of bullion bars, has continued its impressive growth so far this year."
I would suspect a knee jerk reaction to a headline versed like the one above would be, "Oh my, why am I buying Gold, everybody else has stopped!" Of course ignoring the fact that the headline is aimed at the "volume of physical metal" purchased, and not the amount of Dollars spent to purchase it. Simply, if the price of Gold was rising, and investment demand in Dollars remained flat, the number of ounce bought would fall as the price of Gold rose. "The decline in tonnage terms in the first half was by no means a result of a hefty fall in general investor interest,..."
But let's scan the headlines closer. Oh look, this might be a bit more revealing and help explain the CRIMEX open waterfall decline in Gold this morning:
Jobless claims post surprise increase - Reuters
By Jason Lange
WASHINGTON (Reuters) - New jobless claims rose last week to their highest since June and a gauge of New York State manufacturing contracted in September, sustaining the view the Federal Reserve could take new action to boost growth.
At the same time, consumer prices rose a surprisingly steep 0.4 percent in August, slowing only slightly from the previous month's rate.
The number of Americans filing new claims for jobless benefits rose unexpectedly to 428,000 in the week ending September10, the Labor Department said on Thursday.
It was the second straight week in which claims rose. Wall Street analysts expected a modest dip in new claims.
Separately, the New York Fed's "Empire State" general business conditions index fell to minus 8.82 in September from minus 7.72 the month before.
Why on earth was ANOTHER rise in jobless claims reported as a "surprise"? Are you kidding me? Note that this economic data was released to the public at 8:30AM. The CRIMEX opened at 8:20AM. Do you think the Banking Cartel was aware of the bad economic data coming out this morning? Can't have Gold rising on bad economic data now can we?
Look at the US Dollars reaction to this data...the Dollar just hit a new low for the week of 76.06 at 9:15 AM, now down 2.2% from the peak of it's bear market rally hit Sunday night.
Gold was reported to be weak early this weak because of "strength" in the US Dollar. Why is Gold even weaker on a "loss of strength" in the US Dollar this morning? CRIMEX Banking Cartel price intervention?
Humorously, stocks are UP on this very bad economic data. Why are Gold prices down? CRIMEX Banking Cartel price intervention?
Why the hell are stocks up? LOL, that's simple. Stocks are up because the economic data was so bad, Wall Street is convinced that now the Fed "has to" provide them support via further monetary stimulus. How pathetic is it that stocks are up solely on anticipation of another "fix" from the Fed? What does this say about stock prices in general? If stocks are supported by nothing more than a "fix" provided by the Fed, why would anybody sell their Gold because of weakness in Stocks?
But wait! There is breaking news:
ECB to provide banks with dollar loans- AP
FRANKFURT, Germany (AP) -- The European Central Bank announced plans Thursday to provide banks with dollars in three medium-term loan operations through the end of this year.
The ECB said it had decided to launch the three-month loans in coordination with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank.
If things are so bad in Europe that the US Federal Reserve has to ship BILLIONS of Dollars to Europe to shore up European banks, why is the price of Gold down? Because this is hugely Gold positive!
If anything, the past few days of counter intuitive Gold weakness can now be explained. This massive injection of Dollars into Europe could not have happened without complete coordination amongst all of the central banks involved. Dozens of people knew that this was coming a week ago. How many more got the heads up?
The Swiss decision last week to dump Francs on the market and hitch their wagon to the sinking Euro now looks brilliant.
The Fed is now bailing out the entire world. Where is the outrage!? And the price of Gold remains weak? It won't for long.
This announcement by the European Central Bank is a profound acknowledgment of weakness in the funding markets in Europe. The equity markets have reacted to this "butterfly bandage on a sucking chest wound" remedy to Europe's escalating debt crisis with euphoria. This announcement fixes nothing.
BUY this CRIMEX Banking Cartel induced counter intuitive reaction in Gold and Silver NOW!
Gold can not be allowed to rise and reveal the TRUTH about this US Federal Reserve bailout of the European banks. It is imperative that this news be "perceived" as not only positive, but as a solution to the European debt crisis. It isn't, and very soon the TRUTH will be revealed, and boy is it gonna hurt...