Tuesday, October 25, 2011

Emotions In Motion - Western Banks Face Their Fear Of Failure

“The American Republic will endure, until politicians realize they can bribe the people with their own money.”
― Alexis de Tocqueville

It's good to be back!  If you missed my market musings, thank you.  It was a pure joy to get away from these crooked markets.  Obviously I didn't miss anything.  Europe is still in denial, Gold and Silver are still wearing choker chains, and the Occupy Wall Street protesters continue barking up the wrong tree.

Ten days away from these farcial financial markets has given me a new perspective on them: Emotions influence the markets more than fundamentals do today.  And the emotion of the day is FEAR.  The fear of failure.

FEAR NOT if your are tuned into the Gold and Silver markets.  Despite the CRIMEX games we have been forced to endure the past three months, these markets are poised to move higher still, and mover higher than any of us can imagine.

In fact, as I type this post this morning, Gold has broken from it's shackles is a huge way and it's little brother Silver is along for the ride.

Gold is up $30 and 2% on the day...the CRIMEX crooks go on red alert whenever Gold is up 2%.  Silver is up $0.50 and above key resistance at $32.  A fast and furious move in the Precious Metals this morning.  What brought on this explosion in prices?

The time line [courtesy of ZeroHedge]:

Is The Euro Summit Already A Failure Following An Early EcoFin Meeting Cancellation? -08:45

No Housing Bottom As Case-Shiller Declines For 4th Consecutive Month; Misses YoY Expectations -09:30

Consumer Confidence Plunges To 39.8 From 45.4 On Expectations Of A Bump; Lowest Since March 2009 - 10:08

FT Reports Italian Government On Brink Of Collapse - 10:31

Gold broke out at 10:08AM with a break of the overnight cartel induced down trend at $1657. 

When price cleared last nights cartel double stop at $1663, Gold exploded. 

Silver at this point is tagging along for the ride.  A close today above $32 will give Silver Bulls something to smile about, but Silver must close above $32.62 to pressure the foolish shorts in the Silver arena.

Silver futures data most bullish in 8 years, Arensberg says at GGR
Gene Arensberg of the Got Gold Report reports tonight that silver futures market data is the most bullish it has been in eight years, since silver was priced at about $4.40 per ounce. That is, the large commercial shorts have dramatically reduced their positions.

Long wait for silver delivery in manipulated market, trader tells King World News 
Silver supplies are tight, there are long waits for delivery, and market participants increasingly realize that the silver futures market is manipulated and has little bearing on the price of real metal, the King World News London trader source reports today.

Fed manipulates with propaganda, dollar is at risk, Rickards tells King World News
Geopolitical analyst James G. Rickards tells King World News that the Federal Reserve increasingly is trying to manipulate markets with mere propaganda and that the United States risks the collapse of the dollar if it doesn't drastically change its fiscal, monetary, and tax policies.

Preemptive Strike Against Precious Metals Nears End
Written by Jeff Nielson
The overriding principle here is a very simple one: the lower prices go in the short term, the higher they will go in the long term. Period. The reason the banksters have tried to scare investors “witless” is precisely so that they will forget that fundamental principal.

Given that the extreme move downward guarantees (at least) as extreme a move upward in these markets, this begs the question: why have the banksters (and our governments) colluded in an extreme but ultimately futile endeavour at the present time?

The answer is staring us in the face, now merely days away: another massive infusion of Western money-printing – into the ocean of Western banker-paper which has already flooded markets. Most likely this will be an even larger single burst of printing-press activity than what took place immediately following the Crash of ’08.

This morning's headlines ahead of Golds breakout support Jeff's observation above.  The Western banks have hit the wall at the end of the road...if they hope to kick their can over that wall, they are going to have to stand it on a pile of money as high as the wall.  QE to infinity is about to be unleashed.  The fear of failure for the fiat money system we now endure is peaking.  The only option left for the Western Central Banks is to print, print, print...

I love the smell of new money in the morning.

No comments:

Post a Comment