When Push Comes To Shove

"...the U.S. dollar is about as worthless as a screen door in a submarine."
-morris374, in Tech Ticker comments on Yahoo Finance

Fed survey shows US recession may be over
WASHINGTON (AP) -- Economic activity is stabilizing or improving in the vast majority of the country, according to a new government survey, adding to evidence that the worst recession since the 1930s is over. The Federal Reserve's snapshot of economic conditions backs predictions by Fed Chairman Ben Bernanke and most other analysts that the economy has started to grow again in the current quarter.
http://finance.yahoo.com/news/Fed-survey-shows-US-recession-apf-3623088148.html?x=0&sec=topStories&pos=main&asset=&ccode=

The Kiss Of Death. ANY and ALL growth the economy "may" be experiencing is directly the result of goverment stimulus. The recession is NOT over by any stretch...unless you consider that it is morphing from a recession into a depression. It was amusing yesterday afternoon at 2PM est when the Fed report hit the wires. The Dollar caught a bid, Gold tipped over and equities tanked. Wishful thinking, a complete load of crap...

The Great Fakeroo Recovery
By: Llewellyn H. Rockwell, Jr.
Why do matters in the financial sector look better? It is wholly a consequence of trillions in artificial stimulus, a market re-jiggered and falsified through money creation and partial nationalization and bailouts. These do not last.

A few months ago, many people were worrying about the inflationary future that is suggested by the astonishing increase in phony bank reserves over the last year. Today, however, the tune has changed. Bernanke is now being heralded as the great genius of our times.

What this suggests is that no efforts are going to be undertaken to suck the phoniness out of the system. The new reserves are going to stay in the system, and every effort will be taken to convert the reserves into real money supply increases. And if this actually happens, you had better hold on for a wild inflationary ride.
http://news.goldseek.com/LewRockwell/1252508400.php

Gold Waiting to Pounce On Summit’s Failures
By: Rick Ackerman, Rick's Picks
With the G-20 meeting in Pittsburgh just two weeks off, we didn’t expect gold’s widely anticipated push past $1000 to be a piece of cake. Indeed, Bernanke & Friends are probably throwing everything they’ve got at gold right now to suppress its price. And for all we know, Uncle Sam has loaned every ingot (supposedly) in Fort Knox to carry-traders at J.P. Morgan and Goldman Sachs. The ability of these well-connected bullion bankers to borrow more or less unlimited quantities of physical gold is for them even better than a license to print money, since money itself is most surely not what it used to be. The feather merchants have repaid the government’s kindness by sitting on gold futures prices. This price-fixing operation is all the more impressive because its perpetrators have managed so far to peg bullion to $1000 even though the U.S. dollar has broken some key technical supports in recent days.
http://news.goldseek.com/RickAckerman/1252562460.php

Gold is seen struggling a bit here to clear $1000 with some authority. This is not to be unexpected as Gold rose to $1000 overbought, technically. The Euro is up against significant resistance at 1.46 here, so it may be difficult for Gold to bust through the $1000 barrier just yet. The longer it lingers here, the more likely weak longs will jettison their positions in frustration. "Technically" the best thing that could happen here is for Gold to retreat and retest the breakout near 970. This would give Gold a chance to work off some froth in the market and then crush the wall at $1000 in the latter half of September on it's way to the 1200s.

Derivatives Collapse and the China Gold and Silver Markets[MUST READ]
by Bob Chapman
So now the COMEX gold and silver commercial shorts, the owners of the COMEX exchange, and all the past CFTC officials who allowed this nefarious paper fraud in gold and silver to rise to new criminal heights based on bogus backing by unregulated derivative contracts written and guaranteed by an often contentious and even hostile foreign government, are all doing double shots in their knickers. If the very angry, and very duped, Chinese renege, the entire COMEX is going down, big-time baby!!! The whole system is about to blow if the Chinese renege on these contracts!!! We wonder what the Chinese want in return for not reneging! Whatever it is, we can guarantee you that the US government is not going to like it very much.

Without the Chinese OTC derivative backing, all COMEX gold and silver positions would be totally naked. That is because COMEX inventory reports for both gold and silver are a total fairytale fraud. Despite many hundreds of requests for physical delivery which were satisfied over the course of many months, the gold and silver inventories reported by COMEX have remained unchanged. The COMEX even had to enlist the help of the ECB and the Canadian mint to satisfy those requests for delivery, thereby demonstrating that what the COMEX reports as inventory is nothing but a phantasm. We recommend that any and all COMEX gold and silver positions be abandoned as being outright naked and fraudulent.

Take physical delivery of your gold and silver bullion from COMEX if they have any, or take your ETF share in lieu of physical delivery and convert it into bullion immediately, and take physical possession of it. Do not trust any bank, any mint or any ETF or pooled fund to hold your gold and silver. Otherwise you potentially face a total loss of principal

When the COMEX goes down in a blaze of glory, which is now inevitable, everyone who owns any ETF gold and silver shares, and especially those who have received these shares in settlement of their imploding COMEX contracts, are going to ask for physical delivery from the ETF's because all confidence will be lost in the system. Then comes the implosion of the ETF Ponzi schemes as everyone finds out that not only did the COMEX have no gold or silver to back its contracts, but that all the gold and silver ETF's were nothing more than gold and silver naked-shorting, leasing and price suppression schemes. We now predict that the requests for physical delivery from the ETF's will far exceed what they planned for, and further that the whole nefarious scheme will be exposed as being a Madoff-like Ponzi scheme, because their touted gold and silver bullion holdings have all been sold off, leased or otherwise encumbered.

In fact, the gold and silver being promised as backing for the holders of ETF shares may be the same gold and silver that is used to back COMEX futures contracts. The ETF's may well be leasing their gold and silver to the COMEX, which may then be handing it out to settle COMEX physical demands for delivery. Well guess what - you can't both own the same gold and silver at the same time! Now the COMEX has dropped that pretext, after sucking the ETF's dry, and they now hand you ETF shares backed by what may well turn out to be non-existent gold and silver! The cartel couldn't screw the ETF shareholders any further, so now they are screwing the COMEX investors as well. We therefore recommend the abandonment of all pooled accounts held by ETF's, mints and any gold and silver dealers that are not on our recommended list, as being potential investment scams. If any dealer offers to hold your gold and silver for you in return for a paper promise instead of physically delivering it to you, just tell them thanks, but no thanks. Many dealers may be depending on paper gold and silver themselves to cover their gold and silver promises to their customers, so if this paper gold and silver evaporates, so will your dealer's promises. This whole group of cartel henchmen-con-artists from the Illuminist cabal could easily get caught in a failure to deliver known as a commercial signal failure. The gold and silver shorts will completely implode if this occurs, and the Chinese strategy to renege on its OTC gold and silver shorts could well be the catalyst that brings such a cataclysm to fruition. Then, when gold and silver skyrocket as the shorts implode, only those who took physical possession of gold and silver, or who own gold and silver producer shares, will profit, while those holding futures contracts, ETF shares, mint certificates and precious metal derivatives will watch their contracts and shares go up in smoke like a Mission Impossible tape. That is because the major exchanges, sponsors and counterparties will go bankrupt, and you will have nothing left to go after to satisfy your paper promises.

The magnitude of this paper gold and silver scam will even exceed that of the Madoff Ponzi scheme. The Stanford scam will look like chump change by comparison. You should own only physical gold and silver, which is in your possession. The only paper gold and silver you should own are the producer shares, period. All futures contracts, ETF shares and mint certificates are now potentially bottomless capital loss pits.
http://www.globalresearch.ca/index.php?context=va&aid=15126

13 Reasons For Major Gold BreakOut
By: Jim Willie CB, GoldenJackass.com
An acute lack of gold comprehension is evident almost on a global basis. The entire system is wedded to toxic paper. For the most part, so-called experts, industry analysts, and network anchors have absolutely no idea why gold has risen above the $1000 level. They are blind to the Paradigm Shift away from the USDollar and cannot admit the breakdown of the global monetary system. Their jobs might require them to turn a blind eye to such catastrophic events. At best they might have spent their entire careers inside the noxious US$ Greenhouse Dome, unable to see from an external vantage point, in no position to see the Dome from an outside perspective. It will be interesting to observe how long the ‘SYSTEM’ remains ignorant of the massive changes taking place, as the stages they sit upon and work upon are slowly vanishing. Their claims for golden reasons are vacant shallow factors. THEY miss the major factors. They do notice a staggering amount of fiat money being created without basis, which would fall generally under item#2. The actual reasons are many. The list is somewhat debatable, subject to interpretation. Some argument might even come from within the gold community.

Basically the reasons extend from the many tentacles and ramifications of the Grand Paradigm Shift in progress, the complete overturn of the USDollar global financial system. It is being turned upside down before it goes inside out, and finally fractures into a million pieces. This is an irreversible process that is already one year into the collapse process. Here are reasons according to my analysis and perceptions. They only number 13 this time:

1) PARADIGM SHIFT away from a USDollar centric world manifested as the global revolt against the USDollar in reserves management and transaction settlement, extended from bank structures

2) colossal irresponsibility of major central banks with expanded balance sheets, money creation, and credit growth, endorsing their government profligacy

3) failure of the central bank franchise model, exhibited by the ongoing credit crisis, insolvency of banks, and desperate attempt by the US Federal Reserve to serve as the global bank

4) ruined global monetary system from the complete debauchery of money itself

5) perversion of the USDollar from required USMilitary subsidy, from coerced USTreasury Bond support, and from tacit acceptance of Wall Street corruption (past bond fraud and debt rating agency collusion without prosecution)

6) proliferation of OTC derivatives over $1 quadrillion in value with no prospect of resolution, no hope of regulation, and deep corruption, but with deadly dependence

7) gradual recognition of a financial crime syndicate having taken control of the USGovt finance ministry, that involves official channels of slush funds, bond counterfeit, and narcotics money laundering

8) dishonor of financial contract law, chronic lapses in financial market integrity, and constant intervention in those financial markets

9) expectation of mammoth price inflation just over the approaching horizon, unless the central bank balance sheets inflate beyond measurement in Weimar style

10) anticipation of banking system meltdown in at least the United States and United Kingdom, likely to result in bank holidays, useful for a forced Bank Consolidation with dead banks capturing the system or for a climax Wall Street theft event

11) observation of gradual economic disintegration and the decline of global trade

12) trend toward commodity stockpiles, of which gold is the financial commodity core element and crude oil is the industrial commodity core element

13) specter of numerous pockets of armed conflict, military war, and possible nuclear events, as chaos spreads and nations desperately exploit the confusion, and react to lost sponsorship relations, if not parasite-host pacts.

The move to kiss $1000 gold was the foreplay, the first dance, the initial step to capture global attention and to preview the next much bigger move. Some important less visible factors are at work to push the gold price up, somewhat hidden from view. The Intl Monetary Fund and the London G-20 Meeting bear on the gold forces. The full breakout is imminent. It could be days, or a couple weeks, probably not more than a month. Ramadan ends in ten days, and Chinese anger is spilling over. Underlying structures are breaking with each passing week. Bank ripples are being felt. Insolvency is spreading like a disease, while corruption spreads like a cancer. Central bank money creation occurs like from a garden hose. Stories will be told about these days for decades. This is history in the making. They are accumulating gold bullion here. The fools are still selling gold, unaware of its 100% rise in price upcoming. Actually, what comes is a quasi-global 50% currency devaluation. China is cutting deals with the I.M.F. to secure central bank gold in huge blocks, much like geopolitical horse trading amidst grand power shifts for global control. If the West wishes to enjoy the benefits of Chinese credit supply, then China must be given much of what it demands. In short, the gold price will break out past 1100 and past 1200, toward a 1300 target, WHEN CHINA DECIDES TO GIVE THE ORDER.
http://news.goldseek.com/GoldenJackass/1252612800.php

Gold And Silver Not Out Of The Woods Yet

The Canary In The Gold Mine

But Did Anyone Notice Inflation?
By Adrian Douglas
The mainstream media has been elated by early signs of economic activity picking up. In particular the Institute of Supply Management (ISM) issued their Purchasing Managers Index (PMI) on September 1:

The index was reported at 52.9. This is the highest in two years and the first reading above 50 since the credit crisis began. A reading above 50 indicates expansion in manufacturing. The media was euphoric and investors have pushed the US stock indices to post recovery highs. What did not receive any attention was the prices paid component of the index. It increased to 65 from a reading of 55 in July. This is 18% increase in a single month! In May 2009 the index was at 43.5 which represents 49% increase in prices paid over 3 months. This is absolutely stunning. This is not a government massaged index; this is based on what purchasing managers are reporting they are paying. Only 8% of managers reported paying lower prices while 38% reported receiving higher prices.

This report was followed on September 3 by the Non-Manufacturing (Services) Index.

It was reported at 48.4 and while this is still indicating contraction the index was 2 points higher than in July and 8 points higher than in March. Again the media were waxing lyrical about recovery. Again what was not mentioned was the prices paid component; it increased to 63.1 from 41.3 which is a simply shocking 52% jump in one month. It increased 34.5% from its May reading. Only 6% of managers reported paying lower prices while 23% reported paying higher prices.

On September 4 the Economic Cycle Research Institute’s (ECRI) U.S. Future
Inflation Gauge (USFIG) was released:

It was 89.6 in August compared to 84.6 in July. This is a 5.9% increase in one month. The August USFIG annualized growth rate, which smoothes out monthly fluctuations, rocketed to positive 6.5% from negative 8.8% in July! In other words the annualized indicator which smoothes out volatility went from a highly deflationary picture to one of rampant inflation in just a single month! The ECRI commented that the gauge was pushed higher by rising commodity prices. This dovetails with the picture we see from the reports of actual prices being paid as reported by the ISM.

Almost everyone has their eyes glued to the money supply data and the BLS CPI and PPI. Of course the government’s proclivity to exclude everything that is rising in price from the PPI and CPI in their special brand of hedonics means that the last place to observe the affects of monetary inflation will be in these indices. John Williams at shadowstats.com reports that his reconstructed M3 is only growing at a rate of 6% annualized. I however question the accuracy of the input data. I don’t think that all the actual monetary injections are being reported, which is probably one reason the FED does not want to be audited. Neil Barofsky, Inspector General of the TARP, recently testified before Congress that the total credit lines of the 50 or so stimulus programs totaled 23.7 Trillion dollars. A Treasury spokesman countered with a statement that only 2T$ had so far been spent. Where does that 2T$ appear in the M3 data? It doesn’t! If government officials have the capacity to access 23.7T$ of credit who will bet me that they will not spend it? Clearly money is being pumped into the system which is bypassing the reporting system.
http://walshal.wordpress.com/2009/09/07/but-did-anyone-notice-inflation/

Gold, Silver Breakout in Action
By Gene Arensberg, Got Gold Report
U.S. banks dump huge chunk of net short positioning just before surge.

Both precious metals challenge key resistance despite heavy commercial selling.

ATLANTA – Bam! Gold breaks out of its huge consolidation triangle, Wednesday, September 2. What are we going to do now? Why, for the short-term trading portion of the ammo pile, we are going to execute trading strategy and let the strategy do the trading of course. More about that below.

As the first week of September rolled in, the markets for gold and silver heated up. Why? “Tonnes” of reasons. Perhaps Adrian Day summed up one of our favorite drivers of this gold bull market in a CNBC interview with Bob Pisani Friday when he said, in essence, that gold going up now is a vote of no confidence in the world’s “leadership” and another no confidence vote in the world’s fiat currencies.

Gold is going higher primarily because the supply of paper with ink on it is seemingly inexhaustible but precious metals supply is relatively constant. Gold is going higher because more and more people are converting the former into the latter pure and simple.
http://www.midasletter.com/commentary/arensberg/090907_Got-gold-report-gold-silver-break-out.php

China alarmed by US money printing
By Ambrose Evans-Pritchard
Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".

"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.

"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.

China's reserves are more than – $2 trillion, the world's largest.

"Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets," he added.

The comments suggest that China has become the driving force in the gold market and can be counted on to buy whenever there is a price dip, putting a floor under any correction.
http://www.telegraph.co.uk/finance/economics/6146957/China-alarmed-by-US-money-printing.html

Labor Day Musings 09-07 [MUST SEE VIDEO]
By karl denninger
We MUST stop the madness! TickerGuy lays more truth on the table with credit, income, asset and delinquency data.

To The Moon

Warnings Ignored
By: Theodore Butler
A remarkable story recently appeared in a leading Chinese business publication that threatens to upend the world of commodities. It seems that the government of China may be preparing the way for state-owned investment funds to walk away or default on OTC commodity derivatives contracts held with foreign banks if those contracts cause loss to the funds. A good discussion of this issue can be found here, along with links to the original story and a related Reuters article.

Even more amazing is that the obligatory follow-up story, in which the threat of default is invariably denied, actually confirms that China is seriously considering defaulting on selected OTC commodity derivatives contracts. Click here. If there is going to be a default by China in select OTC commodity derivatives, silver is a prime candidate.
http://news.silverseek.com/TedButler/1252075929.php

The Untold Story Behind This Golden Breakout
By Christopher Barker
...a long list of fundamental drivers supporting higher gold and silver prices leads this Fool to conclude that the move will have some legs.

In no particular order, here are some of the more recent fundamental catalysts I've identified:

•In a move that Western media sources have failed to cover adequately, the agency responsible for oversight of China's state-owned enterprises (SOEs) recently warned foreign financial institutions that SOEs will be permitted to walk away unilaterally from failed OTC derivative hedge contracts.

•China will purchase up to $50 billion in Special Drawing Rights (SDRs) from the International Monetary Fund. Fools will recall that China has explicitly called for replacing the U.S. dollar as the world's reserve currency in favor of these SDRs. Russia and India have likewise indicated an interest purchasing SDR-denominated IMF bonds.

•China's ramped-up dealmaking activity for resource-related assets around the globe reflects an official policy directive. Recent loans or investments by Chinese entities relating to foreign resource assets are themselves nearing the $50 billion mark. China has indicated that foreign reserves will be deployed in support of this broader initiative, representing another clear diversification away from U.S. dollar exposure.

•The Democratic Party of Japan emerged as the clear victor in last week's election, ending a 15-year reign of the Liberal Democratic Party. Fools will recall that the Democratic Party of Japan's finance chief advised his nation last May to cease purchasing U.S. Treasury bonds unless those bonds are denominated in yen.

•China is considering a ban on rare-metal exports. More than 95% of the world's supply of rare-earth minerals comes from China, so the move places global manufacturers of everything from hybrid cars to cell phones in a difficult position. China is also the world's leading producer of gold, and this move raises this Fool's eyebrow as a precedent for China's restricting exports of key strategic resources.

•China is actively encouraging its 1.3 billion citizens to invest in precious metals. I have viewed excerpts from state television touting the extraordinary relative value of silver to gold given the large deviation from the historical ratio between prices of the two metals. Because gold and silver are surprisingly small physical markets, even a minor uptick in investment demand could fuel sizeable price increases.

•Hong Kong is repatriating its physical gold reserves from London to high-security vaults at home, and it is inviting the region's central banks to store their bullion there. Announced just this week, the move deals a significant blow to London's historical role as a global hub in the precious metals market, and it raises the specter of a potential price-settlement hub in Asia to rival the New York and London daily spot-price fixes. The Hong Kong Monetary Authority is also targeting a new gold bullion ETF using the new vault as a repository, which would remove yet more physical supply from the market. The SPDR Gold Shares (NYSE: GLD) reports holding 1,078 tonnes of gold, slightly more than China's last-reported gold reserves.

It's no coincidence that all of the above developments -- which can be considered potential near-term catalysts boosting the strength of this breakout in gold and silver -- hail from Asia. This Fool has observed China, which holds more dollar-denominated debt than any other nation, steadily ramping up both its rhetoric and its actions in a clear vote of no confidence in the greenback. I view an end to this 18-month correction in precious metals as imminent, and I concur with the likes of Jim Rogers that the dollar remains between a rock and a hard place.
http://www.fool.com/investing/general/2009/09/04/the-untold-story-behind-this-golden-breakout.aspx

Hong Kong recalls gold reserves, touts high-security vault
HONG KONG (MarketWatch) -- Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport, in a move that won praise from local traders Thursday.

The facility, industry professionals said, would support Hong Kong's emergence as a Swiss-style trading hub for bullion and would lessen London's status as a key settlement-and-storage center.

"Having a central government-sponsored vault would create a situation where you could conceivably look at Hong Kong as being a hub, where metal could be traded for the region," said Sunil Kashyap, managing director at Scotia Capital in Hong Kong, adding that the facility was the first with official government backing in the region.

The Hong Kong Monetary Authority, which functions as the territory's unofficial central bank, will transfer its gold reserves stored in other vaults to the depository later this year, the Hong Kong government said in an earlier statement.
http://www.marketwatch.com/story/hong-kong-recalls-gold-reserves-from-london-2009-09-03

China Urges Citizens to Buy Gold and Silver
By Jeff Nielson
An article from mining web-site, Mineweb quotes a program which appears on China's largest (state-owned) television company, promoting bullion-buying in general, but stressing that silver is currently the best value for investors (no surprise to regular readers):

China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive in 2007 but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in.

It is only in the last three years that the Chinese government significantly relaxed the rules for precious metals buying for its citizens. Given that the Chinese people (like most of Asia) already had a greater appetite for gold and silver than people in most Western nations, the explicit urging by the government itself for people to load up on bullion clearly implies the expectation of a strong future for precious metals. With a population greater than 20% of the world's total and an abundance of savings, this could easily become a self-fulfilling prophecy – especially given the tiny size of the precious metals market, relative to many other commodities.
http://seekingalpha.com/article/159962-china-urges-citizens-to-buy-gold-and-silver?source=email

As the Deficit Grows so Does Outrage[VIDEO]
http://video.foxbusiness.com/9070096/as-the-deficit-grows-so-does-outrage/?category_id=4c29dcd75741dd8d848434d8fc081ad9df23585a

Why the Obama Administration Will Implode In Weeks
1. Health Care's Long and Painful Death

2. Cap-and-Trade Will Be the Largest Tax Increase in American History

3. Unemployment Will Remain

4. Obama's Integrity Has Been Tarnished in August

5. A $3 Trillion Dollar Budget

6. A Coming Middle Class Tax Hike
http://www.foxnews.com/opinion/2009/09/01/kevin-mccullough-obama-implode/

Gold: Separation Before Liftoff [MUST READ]
Jim Willie CB
The latest development in the gold world is highly favorable. Summarize by saying from the rooftops that GOLD LEADS THE CURRENCIES in price movement. Gold is not only a metal, but the most important of currencies, whose importance will soon be confirmed on a worldwide basis. The enlightened realize that if gold had been a core to the banking systems, and to the currency systems, that the entire bank credit crisis would not have occurred. The dimwitted that dominate the landscape still utter nonsense about gold, only to have their prattle squelched and overrun, as it seems so tiresome and vacant anymore. Gold has begun to respond finally to the global ruin of money, to the Western government fiscal ruin, and to the ruin of the United States and United Kingdom banking systems. The price movement in gold & silver has suddenly turned favorable, although this is an early stage, in spite of the lack of decline in the USDollar. That is the main point. Gold has risen without a lead by the crippled USDollar. Silver has followed.

The gold price has risen without benefit of a weaker USDollar. It will next challenge the $1000 level in a natural progression. The real debate is whether the gold price will surpass the $1000 level with or without a key signature event. In my view, it simply does not matter. That is like asking whether the sun will rise with or without clouds.
http://www.321gold.com/editorials/willie/willie090409.html

Vacation Update: Gold Rush

Vacationing in Northern California. Home of the Gold Rush. Perfect!

The week so far has offered little in direction for the Precious Metals. Silver has showed a bit of muscle, but Gold continues to allow the goons to beat up on any attempts of it to advance forward. Nothing shocking there.

Today the equity markets are tipping over as September opens. And with a falling equity market, a rising US Dollar. "A rising US Dollar" is a laughable statement on merit, but there it is before us. So far it is only pressuring the Precious Metals marginally. Oil appears to be bearing the brunt of a Dollar bid...so far.

The Fed has been granted a stay of the Federal judge ruling they must open there books to the public while they prepare their appeal. That was a forgone conclusion the day the judge handed down her ruling. The Fed will continue hiding the TRUTH. They know it will destroy their Ponzi Scheme.

Barney Frank has surprisingly, and perhaps under pressure from his constituents, thrown support to Ron Paul's bill to audit the Fed. This should prove interesting moving into Fall of this year.

As I type this note just prior to the CRIMEX NY close at 1:30PM est Gold and Silver have suddenly vaulted higher. Gold +4, and Silver +0.15 in the blink of an eye. Hmmm, this is very unusual going into the close. Even more unusual considering the growing bid in the Dollar through the morning...or should we say the growing short covering in the Dollar. I can't fathom anybody really "buying" the pathetic US Dollar.

Gold is in an ever tightening symmetrical triangle. Resistance lies first at 959 and then at 964. Support lies first at 947 and then at 941. Silver has a nice tail wind here with resistance first at 15.15 and then 15.75. As always, patience is a virtue...criminal headwinds notwithstanding.

The Inflation Process
By: Steve Saville, The Speculative Investor
Shortly after today's policymakers slow the pace at which the economy is being "stimulated" by new money and increased government spending, the economic rebound will unravel with startling speed. Alternatively, if policymakers attempt to maintain the stimulus indefinitely then they will create hyperinflation.
http://news.goldseek.com/SpeculativeInvestor/1251817200.php