And Gold and Silver are being sold? Only to obfuscate the TRUTH.

"A truth's initial commotion is directly proportional to how deeply the lie was believed. It wasn't the world being round that agitated people, but that the world wasn't flat. When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic" … (Dresden James, Author)


A Truth That Won't Go Away

By Bill Bonner, for The Daily Reckoning

From 1791 to the present, they’ve gone up. Of course, there have been some major problems along the way, notably in the ’70s when it looked like the Fed had lost control of inflation. Otherwise, bond yields have gone down as prices have gone up.

Is it time for a turnaround? Maybe not just yet. We’re still in a Great Correction. Bonds should continue to go up — for a while. But just wait...this is a truth that won’t go away: US debt is expanding...as its ability to pay declines.

Meanwhile, the big trend for the US stock market is probably down too. Just a guess, mind you. Why? We’ve given you the reasons...but since you seem to have forgotten, we’ll give them to you again:

..After 60 years of credit expansion, credit is contracting. That means less household spending, which means lower sales and fewer profits

..A bear market began in January 2000. It never reached its rendezvous with a real bottom. Ergo, the ultimate bottom still lies ahead...

..Stocks rose since 1982...since 2000, they’ve been going nowhere. Now, it’s time for them to go down.

..Most of the ‘growth’ in the last 20 years has come from more and more debt at the household level. Now that debt is shrinking...growth should shrink too...

..There are 70 million baby boomers who desperately need to save money for their retirements. They used to borrow and spend...now, they will have to pay back and save.

..As credit grew, it took more and more credit to produce an extra unit of output. Adding more credit now will not help the real economy expand...

..The feds can’t engineer a recovery, because unlike a recession, the problem is not that debt is too expensive, but that they have too much of it already...

..As the economy softens, the feds take more and more of it into custody. The feds invest badly, leading to less real output...which must supports more and more zombies...

..The European economy is sliding towards another recession; this will hurt the US economy too...

..The whole world economy is weakening; it could drop into a worldwide depression...

..Higher, persistent unemployment undermines consumer spending...

..House prices are still falling, which will further reduce household net worth and reduce both spending and risk-taking...

..Energy use in the US is falling...more inputs of energy do not produce enough extra output to pay for themselves...

..But energy use in the emerging markets is increasing, supporting energy prices and putting more pressure on US household budgets...

..What else? Want more reasons? Stay tuned...

Mr. Bonner has just succinctly presented the simple fundamental reasons for owning physical Gold and Silver.  Which is probably why Gold and Silver are not being allowed to continue their rise higher.  A major wall has been set up at $1800 Gold, and $35 Silver by the pestilence we call the CRIMEX.

Bill Murphy at GATA refers to the actions of these toads at the CRIMEX as "Behavioral Finance".  This is where black is white, and white is black is the norm.  Gold and Silver go down when they should go up...Behavioral Finance.  One might best sum up the theory of Beahvioral Finance as "obfuscation of the truth".

Bill Holter had a bit of TRUTH for us last night at the Lemetropole Cafe:

The Super Committee Farce is next.To all; next Wednesday is the farce deadline for the Congressional "super committee" to come up with between $1.2 and $1.5 Trillion of cuts that were promised back in Aug. when the debt limit was raised. First off, this amount is basically a "ham sandwich" compared to what the real problem is. This $1.5 Trillion is over 10 YEARS so it amounts to a mere $120-150 Billion per year. To put this in perspective, we have already spent an additional $600 Billion+ in just over 3 months since the debt deal so the concept really is laughable. What is even more laughable will be if they cannot come up with the cuts!

Assuming that they do actually come up with a plan, I have just one question. What will "normalized" interest rates do to these plans? If interest rates were to rise to the lofty levels of say just 5%, how much is that on $20 Trillion (where we will be in less than 3 years) worth of debt? The calculator says...$1 Trillion per year...EVERY YEAR in interst alone! Heck, 5% on an additional $5 Trillion is $250 Billion which dwarfs these proposed fantasy cuts by the super committee. The immediate problem is that this fiscal wrangling will bring the U.S. back into the financial spotlight, something they can ill afford. Better to point fingers at European deadbeats so the world is distracted fom looking under our hood where the real problem is!

Yes folks, complacency abounds everywhere in the face of a 100% mathematically assured financial collapse that ends with new currencies being issued. It is only a matter of time and "how many zero's" are added to Gold and Silver's prices when the current currencies go the way of the Dodo bird. I just cannot fathom how anyone can miss this as it could not be more obvious. Governments far and wide including (especially) the U.S. have debt levels (denominated in already fake and worthless pieces of paper) that are unsustainable and cannot be paid back even with interest rates at zero. Factor in "real" interest rates that are not negative and the top blows off this baby! Were the U.S. to back just it's debt held by foreigners, Gold would need to be priced at nearly $20,000 per ounce. If it were priced to back the admitted and "on the books debt", that number is over^$60,000, expand it to cover the "off books debt and obligations" and you arrive at over over $400,000 per ounce. Of course this assumes that we have the Gold that we say we do, ...likely or unlikely? Today's bond buyers are "investing" in entities that cannot be paid back in even the current worthless currencies, they will be paid back in EVEN MORE worthless (possible?) paper! It makes no sense. It is this very core belief, namely that "government bonds are the height of safety" that will be the undoing of the whole system. The "lunatics" (those who believe in hard and real currency) will finally get to run the asylum in a fair and just manner where "settlement" is actually real and accomplished for trade and payment of wages and debts! Regards, Bill H.

Gridlock on deficit panel looms over stock rally


And Gold and Silver are being sold? Only to obfuscate the TRUTH.


Why the euro crisis is an American problem
By David Frum, CNN Contributor
The European Union represents a bigger economy even than the United States. If the euro cracks, and euro-holding banks fails, the pain will cross the Atlantic, as the pain of the U.S. crash of 2008 crossed the Atlantic in the opposite direction.

European financial institutions may lose the ability to repay U.S. creditors, inflicting more losses on an already traumatized U.S. financial system.

Collectively, the eurozone countries are far and away the largest foreign investor in the United States. If the eurozone economies slump, Americans will find it harder to raise capital for new projects and businesses.

As a single economy, the EU is America's largest trading partner. If it buys less, American exporters will suffer.

This catastrophe could erupt almost literally at any minute.


And Gold and Silver are being sold?  Only to obfuscate the TRUTH.


European Debt Crisis Threatens the Dollar
By Ron Paul
The global economic situation is becoming more dire every day. Approximately half of all US banks have significant exposure to the debt crisis in Europe. Much more dangerous for the US taxpayer is the dollar's status as reserve currency for the world, and the US Federal Reserve's status as the lender of last resort. As we've learned in recent disclosures, this has not only benefitted companies like AIG, the auto industry and various US banks, but multiple foreign central banks as they have run into trouble. Nothing has been solved, however, by offering up the productivity of Americans as a sacrificial lamb. Greece is set to be the first domino to fall in the string of European economies at risk. Rather than learning from Greece's terrible example of an over-consuming public sector and drowning private sector, what is more likely from our politicians is an eventual bailout of European investors.

The US has a relatively small exposure to overwhelmed Greek banks, but much larger economies in Europe are set to follow and that will have serious implications for US banks. Greece is technically small enough to bail out. Italy is not. Germany is not. France is not. It is estimated that US banks have over a trillion dollars tied up in at-risk German and French banks. Because the urge to paper over the debt with more credit is so strong, the collapse of the Euro is imminent. Will the Fed be held responsible if the Euro brings the US dollar down with it?

The most disingenuous aspect of the narrative about the European sovereign debt crisis is that entire economies will collapse if more resources are not bilked from productive people around the world. This is untrue. Tough times are coming for the banks, to be sure, but free people always find a way back to prosperity if the politicians leave them alone. Communities within Greece are coming together and forming barter systems because they know the Euro is becoming unstable. Greeks are learning how to engage in commerce with each other, without the use of fiat currency controlled by central banks. In other words, they are rediscovering what money really is, and they are trading with each other in ways that cannot be controlled, manipulated, squandered, inflated away and generally ruined by corrupt bankers and the politicians that enable them. Farmers will still grow food, mechanics will still fix cars, people will still make things and exchange them with each other. No banker, no politician can stop that by destroying one medium of exchange. People will find or create another medium of exchange.

Unfortunately when politicians try to monopolize currency with legal tender laws, the people find it harder and harder to survive the inflation and taxation to which they are subjected. Bankers should take their dreaded haircut rather than making innocent people pay for their mistakes. The losses should be limited and liquidated, rather than perpetuated and rewarded. This is the only way we can recover.Government debt is often considered rock solid because it is backed by a government's ability to forcibly extract interest payments out of the public. The public is increasingly unwilling to be bilked to make bankers whole. The riots and the violence in Greece should tell us something about the sustainability of this system.

If we continue to bail out banks and bankers so they can continue to lose money, if we cavalierly put this burden on the taxpayer, it is all too predictable what will happen here.


And Gold and Silver are being sold? Only to obfuscate the TRUTH.


Decision Time For Europe: The Definitive Presentation On The Future (Or Lack Thereof) Of The Eurozone
From Zero Hedge
When dealing with the daily barrage of headlines from Europe, it is easy to get lost in the trees and forget what the forest looks like. That's perfectly understandable - after all, it is precisely the intention of the Eurocrats to confound everyone with noise, so any track of the fact that the big picture is unfixable is if not lost then promptly forgotten, with reactionary newsflow dominating the flawed decision-making process. Luckily, the fact remains that no matter what, no matter the scale of lies out of Europe, the problem still remains: the math just does not make any sense.

And Gold and Silver are being sold? Only to obfuscate the TRUTH.

Gold Price Manipulation Blatant And Disgusting...Desperate

For me to say that I am DISGUSTED with the BLATANT manipulation of the Precious Metals markets would be a gross understatement. 

Explain the following market action today...I can't.  GATA's Bill Murphy can't either.

From his Lemetropole Cafe post this afternoon at The James Joyce Table:

Behavioral Finance Report
*My commentary will be mostly about Behavioral Finance. From a Planet GATA perspective, what else is there? What would I find the markets doing this morning when I woke up after yesterday’s commotion? Huh I thought when I turned on the tube. The DOW was sharply higher and gold was crushed. Was the dollar soaring? No, it was lower. Were commodity prices getting battered? No, oil was higher. Was there some miraculous news out of Europe signifying real progress in their growing fiscal problems? None at all. Bond yields in Italy came down below the so-called critical 7% level thanks to some mysterious buying. However, bond yields in Germany and France have risen to euro level highs.

Seriously, why was "the price" of Gold down today?

Oil price rises as US supplies shrink‎
BusinessWeek -

Oil prices climbed above $97 per barrel Wednesday on signs that the US is consuming more fuel. The government said Wednesday that diesel ...

Snap Reactions To Italy's €5 Billion Bill Auction, Which Reeks Of Illegal ECB Intervention
From ZeroHedge
Earlier today Italy sold €3 billion in 1 year Bills at an average yield of 6.087%, the highest since September 1997, and almost 3% higher compared to a month ago, when it prices at 3.570%. Yet there was a stunning twist: the 1 Year was trading at a whopping 7.75% in the gray market minutes before the auction, or almost 200 bps wide of the auction result, something which never happens under normal conditions unless the invisible hand of the central bank has anything to say about it. Now we know already that the ECB stepped in to aggressively mop up Italian bonds in the secondary market immediately after the auction to bring 10 year yields below 7%, however briefly: the bond has since widened above that level once again. Yet what is shocking is the primary market strength for the 1 year: since the ECB is prohibited by law from intervening in the primary, auction market, we wonder just what illegal backdoor funding scheme the ECB has concocted with friendly banks in order to have the auction price where it did, and how much money was transferred by back door channels to keep Europe from imploding one more day. Considering that the EURUSD was trading below 1.35 just prior to the auction at around 3 am, and has since regained losses, just as we expected yesterday, please remind us to add this latest illegal central bank intervention feature to the list of things to uncover once Europe blows up and the ECB's secret trading records are laid out for all to see. In the meantime, here is the Wall Street snap reaction to the Bill auction.

Does it really matter that the price of Gold was down today, despite every reason for it to be up?  HELL NO!  It's just noise...  Gold IS going higher.  Silver IS going higher.  Oil IS going higher.  You name it, it IS going to go higher in price.  There have been many head scratching days like this in our 10-year long Gold Bull Market...my hunch is there will NOT be very many more.

From UBS:

"The amount of gold shipped from Hong Kong to the mainland jumped to 56.9 tonnes during the month, from an average monthly flow of 18 tonnes to August. The September figure is nearly 500% higher than in the same month last year and lifts total shipments for the first three quarters of 2011 by 128% y/y."

"In the three months July, August and September, China imported around 140 tonnes of gold compared to 120 tonnes in the whole of 2010."

Global demand for physical Gold makes the "paper price"of Gold look silly.

And if you think the "paper price"of Silver is even sillier, consider this demand stat:

From Mark W. Kellstrom, CFA
Strategic Energy Research and Capital, LLC:

Silver Eagle Bullion Sales Hit New Record In 2011. The correction in silver prices has not shaken investor confidence. In fact, bullion investors have stepped up their purchases this year. With just under two months still remaining in 2011, sales of the American Silver Eagle have already surpassed the record level of 2010 with sales of 36,375,500 ounces. If sales of the Silver Eagle for November and December match the levels of 2010, total sales for 2011 should total over 42 million ounces or more than 20% above the record breaking sales level of 2010. Investors also appear to be wising up to the manipulation in the silver market as weak hands strengthen. This is evidenced by the fact that some of the strongest sales months during 2011 were during the sharp sell offs. Rather than panic, sell silver positions or move into cash, investors stepped up their purchases of silver eagles coins to take advantage of the depressed prices.

Considering the physical demand for Gold AND Silver, and couple it with the FACT that the banks have no choice but to PRINT PRINT PRINT money to pay for their debts, prices can only rise from here no matter what shenanigans the CRIMEX banking cartel comes up with.

Secret gold price suppression won't last much longer
Geopolitical analyst James G. Rickards, who spoke at GATA's Gold Rush 2011 conference in London in August, today tells King World News that a second but secret London Gold Pool is being operated by Western central banks to suppress gold's price and that he doesn't expect it to surive more than two more years. An excerpt from the interview has been posted at the King World News blog here:


The CRIMEX Banking Cartel is desperate to halt the recent breakout in the price of Gold.  Just look at The Big Picture posted below.  It is worth a thousand words of support for the Gold market.

Gold could not be better poised for an assault on $2000.  F*#$ the CRIMEX!

ECB Preparing Italy Bailout, Massive Inflation ComingWednesday, November 9, 2011
read article...

Silver Taking On Fuel, Lift-Off At $34.80

Silver may be on the cusp of a major move higher as I type this.  The crooks at the CRIMEX, and their housekeepers at the CME, are about to pay dearly for their early May and mid-September price attacks on the people's Precious Metal.

After falling nearly 50% from it's April highs near $50 an ounce, demand for physical Silver has soared as sales prices persisted through this past summer and into Fall.

On October 24, Silver broke from a four week base that followed Silver's blow-off bottom on September 25.  With a close above $32.76, Silver shifted into first gear after idling in neutral for a month. [See chart below]

On October 31, backed by massive volume, Silver retested the breakout at $32.76 in textbook fashion.  Traders and investors have responded in volume to the successful retest of this base breakout over the past week, and Silver sits poised here at $32.80 on the launch pad with $40 in it's sights.

A close above $34.80 opens the door to a very quick $2 liftoff.  A further close above resistance at $36.73 will give Silver the "go for throttle up" and achieve orbit  near $40 an ounce.  Our projected target for Silver by Christmas is $39.47...a 51% gain off the September low of $26.05.

The ONLY thing standing in Silver's way, are the CRIMEX crooks.  These criminals had best check and see if their health insurance premiums are paid up...as a major short squeeze [and ass whuppin] appears imminent.

China’s gold imports jump sixfold
By Leslie Hook in Beijing and Robert Cookson in Hong Kong
Chinese gold imports from Hong Kong, a proxy for the country’s overall overseas buying, leapt to a record high in September, when monthly purchases matched almost half that for the whole of 2010.


The buying spree follows a sharp drop in the price of the precious metal. After hitting a nominal all-time high of $1,920.30 a troy ounce in September, gold fell to a three-month low of $1,534 an ounce later in the month. Chinese investors snapped up the metal as prices fell.

Analysts expect the September import surge to continue until the end of the year as Chinese gold buyers snap up gold in advance of Chinese New Year, China’s key gold-buying period.

And you thought the CRIMEX and CME were working in cahoots to force investors and traders to "sell" their Gold.  Lower prices in a bull market equals increased physical demand.  Gold closed above $1767 one trading day later than I'd hoped.  And what a close it was!  Gold vaulted our resistance line, and launched towards our $1824 Thanksgiving target.  A retest of the break at $1767 cannot be ruled out, and would be very constructive relative to our $1921 Christmas target were it to occur.

Fed Heads are lined up to make headlines this week.  The first out the door is from Boston:

Rosengren: Fed needs to act aggressively on economy
By Ros Krasny

Nov 7 (Reuters) - The Federal Reserve should continue to act "aggressively" to try to bring down the stubbornly high U.S. jobless rate and boost lagging economic growth, a top Fed official said on Monday.

Eric Rosengren, President of the Boston Federal Reserve Bank, said weak labor conditions would help keep inflation below 2 percent over the next several years.

"Given the very weak labor market conditions and the low expected inflation rate, the Federal Reserve should in my view continue to take action to aggressively try to reduce the stubbornly high U.S. unemployment rate," Rosengren said.

U.S. Approaches $15 Trillion Debt Limit
By Matthew Jaffe
It will be the latest sobering economic milestone that few were hoping to see: The U.S. national debt – any day now – will soar above the $15 trillion mark.

As of this writing, the total debt is $14.97 trillion, so moving beyond the symbolic $15 trillion is a foregone conclusion. When the unwelcome milestone is reached, it will come at a volatile time both in this country and abroad.

Can you say "sowing the seeds of QE3"?

"The GLOBAL ECONOMIC COLLAPSE is unrelenting and worsening each day, and will NOT end until the Western banking and currency systems are DESTROYED and REPLACED. I say this not based on speculation, but my knowledge of simple MATH. In the Western world, nearly all nations cannot EVER repay their debts, including the U.S., the U.K., and most of Europe. Not to mention, numerous nations WORLDWIDE are in the IDENTICAL position, notably Japan. Sadly, the cancerous tie that binds them all, and eventually destroy them, is the "world's reserve currency", i.e. the U.S. dollar."
 -Ranting Andy Hoffman

The Collapse Of Our Corrupt, Predatory, Pathological Financial System Is Necessary And Positive

Submitted by Charles Hugh Smith from Of Two Minds [Zerohedge]

We are being throttled by the Big Lie: we're told that if the predatory financial system implodes, we'll all be ruined. The opposite is true: the only way to save our economy is to let the corrupt, pathological and flawed financial system implode.


What happens when the whole chain blows up and the foundation of debt is impaired? Since the whole system is based on the debt and the income streams devoted to servicing it, the entire edifice collapses when the debt is impaired--debtors default and the system clogs with bad debt, i.e. uncollectable debt.

In a transparent Capitalist system, the debt would be written down and all the insolvent borrowers, lenders and counterparties would be wiped out. But the political corruption that enabled modern finance to poison the American economy and culture has stopped that cleansing from occurring.

Silver: The People’s Money
Written by Jeff Nielson
If we take the fruits of our labours and convert it into silver as quickly as possible, then suddenly the bankers must do most of their stealing from the other paper-holders – not us. And if every ordinary person converted their wealth to silver as quickly as possible, soon the bankers (and the ultra-wealthy for whom the bankers “front”) would have no one to steal from but each other.

People need to divorce their minds from the notion of “buying silver”, and rather simply think of themselves as doing their “saving” with silver rather than with the banksters’ ever more diluted paper. Indeed, the worst thing we can possibly do with our wealth is to deposit it in a bank – since that simply allows the banksters to ratchet-up their “leverage” even further (i.e. steal from us even faster).

Put another way, every dollar which ordinary people convert to silver (or gold) weakens the intensity/effects of this stealing-via-dilution. This also explains the extreme aversion which the bankers have to a “gold standard”, and why they have disseminated millions of pieces of propaganda over recent decades attempting to portray a gold standard as either being archaic or simply “impractical”.

GOLD: THE TRUTH SHALL SET YOU FREE

"Nothing has changed and absolutely nothing has been accomplished. There is no “solution” to the crisis that will not result in massive pain, confusion and wealth decimation. The reason is patently obvious. At least half the continent is completely and helplessly bankrupt. There are only two outcomes to the entire situation. Either the sovereign debts are written off aggressively and the banking system declared insolvent and restructured or the ECB decides to turn on those printing presses to the tune of trillions and destroys the purchasing power of the union in Zimbabwe-like fashion. People will read this and think I am exaggerating . The phrase “it takes 5 minutes” keeps running through my head because all it takes is a small amount of time to see the situation for what it is. I am not that smart. This is obvious. The scary thing is that it is abundantly clear that the vast majority of U.S. investors have not bothered to take the 5 minutes necessary to understand how extreme and binary the outcomes to all this is. Their clients will suffer massively in the months and years ahead as a result of their laziness and lack of macro curiosity. "
 - Mike Krieger

Michael Krieger Explains Why It Takes Only 5 Minutes

Gold Has Had Enough With Europe's Stupidity; Surges
One can kneejerk every headline coming out of Europe, or one can buy gold, which has finally had enough with this endless BS and has realized that no matter what the ECB will have to print, followed by everyone else.
 -ZeroHedge

And if Gold has had enough of Europe's stupidity, how does it feel about the BS coming out US Federal Reserve?

First we get the FOMC "statement" that the financial media analysts scour for a change of sentiment from the "previous statement", or any glimpse of insight into the minds of our Fed Heads "today" as opposed to "last time".  You can read yesterday's FOMC statement here.

And the scouring results are:

* Statement comparison:

Nov: FOMC says that "economic growth strengthened somewhat in the third quarter, reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the year.

+ September statement read that "economic growth remains slow"

Nov: "Nonetheless, recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated.

+ Sep: Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated.

Nov: "Household spending has increased at a somewhat faster pace in recent months."

+ Sep: "Household spending has been increasing at only a modest pace in recent months"

* This phrase remained the same:

"Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets."

* Fed maintains its program to extend the average maturity of its holdings of securities as announced in September.

* Only dissenter was Evans, who sought additional policy accommodation


Taking Benny and The Fed Heads at their word, it was pretty obvious QE3 was not going to be unveiled anytime soon...or is it?

Why did the Fed "twist" their statement to give the "impression" that the economy had picked up recently [when EVERYBODY knows that is pure BS], and then dump the following in everybody's lap prior to Bumbling Ben's press conference:

Fed Slashes Economic Outlook, Raises Inflation And Unemployment Rate Projection
From ZeroHedge

And it just gets uglier:


FED OFFICIALS SEE 2011 GDP 1.6%-1.7% VS 2.7%-2.9%
FED OFFICIALS SEE 2012 GDP 2.5%-2.9% VS 3.3%-3.7%


FED OFFICIALS SEE LONGER-RUN GDP 2.4%-2.7% VS 2.5%-2.8%


FED OFFICIALS SEE 2011 UNEMPLOYMENT 9.0%-9.1% VS 8.6%-8.9%


FED OFFICIALS SEE 2012 JOBLESS ESTIMATE 8.5%-8.7% VS 7.8%-8.2%


FED OFFICIALS SEE 2013 JOBLESS ESTIMATE 7.8%-8.2% VS 7.0%-7.5%


FED OFFICIALS SEE LONGER-RUN JOBLESS 5.2%-6.0% VS 5.2%-5.6%

Even the Federal Reserve sees the writing on the wall.  If  "economic growth strengthened somewhat in the third quarter, reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the year", why has the Fed slashed growth and employment forecasts going forward?  And if their forecast is this bleak, is QE3 in the pipeline?

Ask Gold?

Gold's breakout at $1677, and subsequent retest, has set the stage for a major surge in the price of Gold.  If Gold can close this week above $1767, we can expect it to reach $1824 by Thanksgiving...$1921 by Christmas...and break ABOVE $2000 an ounce by the end of January 2012.  These projected numbers are based on the recently completed  Ascending Triangle consolidation between the $1531 low on September 25 and the breakout at $1677 on October 24.  $1722 is now key support in Gold.  $1677 is major support in Gold.

Silver at this time is following in Gold's shadow.  It is difficult, and foolish, to try and project the price of Silver in a market that is so severely rigged by the CRIMEX.  Silver must close above $34.68 this week to keep pace with Gold, should Gold close above $1767 this week.  Not until we see the Gold/Silver Ratio fall below 49 will we see a surge in the price of Silver.  Should Gold prices crack $2000 in January, it is highly likely Silver will be knocking on $60 an ounce at that time.

I know these are BOLD PREDICTIONS.  Not just Gold is fed up with the BS coming out of Europe and the US Federal Reserve...EVERYBODY is!  The inflation damn is about to burst.  The ONLY way out of this financial calamity is through the printing press, and Gold knows this is true. 

THE TRUTH SHALL SET YOU FREE

...if you have any doubts:

Lear Capital: Is the Fed About to Gut Your Savings and Retirement Accounts
as seen on ZeroHedge

FREE Video!  Are Fed Actions about to crash the dollar and gut your savings and retirement accounts?

Gold and Silver Tell The Truth: There Are NO Safe Havens In Fiat Money

"Logically the "last domino" is where the Ponzi scheme all began, The United States."
 -Bill Holder, GATA

What goes around, comes around.

The US was the first to stumble in the Global Financial Crisis...and they will be the last to crumble.


After Gold and Silver roared to life last Tuesday on the "supposed" Greek bailout news, I suggested Thursday that a retest of the key breakouts in both Precious Metals could not be ruled out.  Low and behold, both Gold and Silver have returned to their launch points this morning.

This morning's low in Gold is $1680.  This morning's low in highly volatile Silver is $32.11.  Both Precious Metals have bounced sharply off these lows despite the US Dollar's "safe haven" bid in the face of the Japanese Yen intervention, the Greek bailout referendum news, and the MF Global bankruptcy.

ALL three of these news "events" are bullish for the Precious Metals.  There are no if, ands, or buts about it.  But in our wacky George Orwellian world in which we live today, Gold and Silver must be beat down to hide their TRUTH.

"Truth is like the sun. You can shut it out for a time, but it's not going to go away."
 - Elvis Aaron Presley

“The Bank of Japan stepped into the Forex markets overnight [Sunday night] in an attempt to punish the impertinent speculators who have dared to nullify their former intervention efforts undertaken back earlier this year when the nation suffered the onslaught of the earthquake/tsunami.

Note the previous intervention, which I might add was a VERY RARE example of COORDINATED CENTRAL BANK EFFORTS involving the BOJ, the ECB and the FED. If intervention is going to be effective, it will generally need to be coordinated, sustained and have an eventual fundamental backing. Without those factors, it always ends up being a gigantic waste of money.

Note that even this coordinated intervention failed to stem the advance of the Yen. Now are we to believe that the Lone Ranger effort by the Bank of Japan this time around is going to be successful? Hardly. They have bought a bit of time but all that will happen is that speculators will use the intervention to step in on the buy side of the Yen and get it at a lower level.

In the process of intervening however, the Bank of Japan is devaluing the Yen when measured against Gold. Gold still remains a store of value protecting those who own it against the depredations of their own monetary authorities.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

The Japanese intervened in the currency markets Sunday night to FORCE the YEN down...they do this by selling Yen [that they print] and buying US Dollars. This creates a [phony] bid in the Dollar and that of course pressures the Euro lower.

This action is HIGHLY positive for Gold and Silver, but as we saw following the Swiss Franc intervention in September, the precious Metals were not allowed to reveal the TRUTH about currency interventions.  In the big picture, currency events like this will only make the Precious Metals go higher than we already believe they will...given time.

Doubts Cloud Tokyo's Yen Intervention
By NEIL SHAH And ANDREW MONAHAN
Japan's government hopes the third time is the charm for its efforts to weaken the yen.

But currency traders already are casting doubts over whether Japan's intervention in currency markets on Monday will successfully put the brakes on the currency.

Japanese officials have struggled this year to curb a rise in the yen that undermines the country's economy by making its export sector less competitive overseas.

After Japan's move Monday, the yen immediately dropped, but some investors were quickly buying, betting on Japan failing. They note that the yen bounced back from this year's two other interventions, as well as an attempt in September 2010.

Constantine Ponticos, managing director at Pareto, a firm that manages some $40 billion in currencies, said his firm's Absolute Return fund bought yen following Japan's intervention. Pareto is a unit of Bank of New York Mellon Corp. He views Japan's latest dollar-buying as a relatively modest ploy to help Japanese exporters trade their stash of dollars for yen at an attractive price before month-end.

Japan defends yen intervention
By Lindsay Whipp
The Japanese government has defended its unilateral intervention in the currency markets after criticism from Europe that its action could reignite global “currency wars”.


Jun Azumi, Japan’s recently appointed finance minister, said his decision to order the Bank of Japan to sell yen and buy dollars was “within the scope” of international currency policy and that he was engaged in “a battle of nerves” with the markets that are far from reflecting the economic fundamentals of his country.

Yen intervention raises fear of currency wars
By Chris Giles, Lindsay Whipp and Hugh Carnegy

Japan intervened in the currency markets to weaken the yen on Monday, exposing the dearth of global economic policy co-ordination just days before Friday’s summit of the Group of 20 leading economies in Cannes.

The move was greeted with dismay in Paris where officials warned of the difficulty of achieving agreement on currency issues at Cannes but said they were determined G20 members would not resort to mutually destructive currency wars.

In Berlin, officials stressed the need for co-ordinated currency intervention, such as the efforts of the Group of Seven advanced economies to stop the yen appreciating after the Japanese earthquake and tsunami in March. Monday’s move by Tokyo “looks uncoordinated”, one official said.

Currency markets have been in turmoil this year as investors pour money into perceived havens such as Japan and Switzerland. The Swiss Central Bank in September successfully imposed a “ceiling” on the swiss franc above which it would not let the currency rise. As a member of the G7, Tokyo is more restricted in the extent to which it can intervene, forcing the finance ministry to sell yen in short and sharp bursts.

Jun Azumi, Japanese finance minister, argued that the continued rise in the yen had been “speculative” and did not reflect the “fundamentals of the economy”. Tokyo sold billions of yen early on Monday in its third intervention this year.

Switzerland and Japan were BOTH considered "currency safe havens", yet the governments of both have decided otherwise, and intervened in their markets to weaken their local currency in the name of "defending their export markets".  Both interventions forced a bid into the US Dollar causing it to rise artificially.  How long until the government of the united state decides to "intervene" on the side of the US Dollar to protect it's export market?

Well that's a stupid question...the US Government doesn't need to intervene in the currency markets to lower the value of the US Dollar, they just allow the Fed to print more of them to take care of that problem.

Seriously, for how much longer are the paper currency markets going to be looked to for safety in this financial crisis if the central banks remain hell bent on weakening their currencies in the name of self defense?  Could the on-going race to the bottom of the currency barrel be any more clear?  The lack of "safety" in the paper currencies is becoming more obvious as each week passes now.  Gold and Silver are sure to rise above the burning ashes of these currency corpses to win the day...and reveal the TRUTH about "sound money".

We can not ignore the fact that the Japanese Yen intervention's effect on the markets was compounded by the "failure" of the Greek Debt Bailout to gain any traction following it's announcement last week.

Greece Sends Global Markets Into Tailspin Again: European CDS Spreads Demand Another Bailout

Greece Shocks Markets With Referendum on Austerity- AP

Stocks fell sharply early Tuesday on worries that a planned Greek referendum could scuttle a plan reached last week to resolve Europe's debt crisis.

More bad news on the Euro zone debt problem has forced the Euro to give up ALL of it's gains last week, and then some, forcing a bid into the US Dollar as a result. 

The Yen and Euro are being sold hard, and of course that leads to buying of the Dollar...the least ugly horse in the glue factory. How much longer can this foolish behavior last before the currency markets forsake this house of cards for the bedrocks of sound money, Gold and Silver?

Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers?

A little reported fact about MF Global is that it is one of the 22 Primary Dealers in US Treasuries.

Did Primary Dealer MF Global Dump Its TSY Inventory And Exaggerate Thursday's Equity Rally?

New York Fed Statement On MF Global, Or How 22 Primary Dealers Became 21 Primary Dealers

MF Global is the 8th largest bankruptcy filing in US history.  This story is not going to go away quickly, and it's implication as to the financial system remains to be seen...or covered up.

Gold is continuing to move up off it's lows this morning despite efforts to halt the bounce.  $1712 is near-term resistance.  Judging by the volume off of this morning's low, a buying opportunity was at hand as Gold retested the breakout at $1677.

Silver is following Gold's lead this morning.  Big volume has followed Silver's bounce off this morning's low near 32.  Near-term resistance lies near $33.50.

Closes in Gold above $1712, and Silver above 33.50 today should lead to a resumption of the current uptrend move off our recent market lows seen October 20th.

The current bid in the US Dollar can only be tolerated by our market riggers for so long as persistent strength in the Dollar puts maximum pressure on the equity markets...sad as that may be.

The US Dollar has upside to 77.87 on the US Dollar Index here, and support at 77.28.  It's move through it's 50 day moving average today at 76.71 has emboldened the Dollar Bulls, but they may have hit the wall here near 77.50 as the fuel from the present short squeeze in the Dollar is drying up.  Unless Japan remains vigilant in their Yen Intervention it is unlikely many "real buyers" materialize in the Dollar here.  In fact, many currency market participants are likely using this short term strength in the Dollar to unload more positions, and pick up more Preciouos Metals at renewed discount prices.

Buy PHYSICAL Gold and Silver while it is still available!

MF Global? France? ...OUNCES!
From Bill Holder for GATA at: http://www.lemetropolecafe.com/
To all; the news this morning is that MF global has been suspended as 1 of the 22 primary dealers in Treasury securities by The NY Fed. CME group has limited them to "liquidation only", this is a death sentence. Are they another Lehman Brothers? How big and what type of counterparty risk do they have? Who do they have it with? Should they fail, what sort of "ring fence" is or can be set up around them. Lots of questions and I guess we will find out the answers in due (short?) time.

Across the pond, it looks like Portugal and Spain have been leapfrogged by the speculators spotlight and Italy has now come into the crosshairs. Their yields on sovereign debt paper have jumped to new highs and thus new lows on their bonds (their stock market is down 3.5%). Italian CDS rates have blown out but we all know this is a mugs game because as we have seen, the 50% haircut in Greek bonds is not a "default event". The "cashier's window" is permanently closed so why even enter this casino? Italy is multiple times the size of Greece and truly a blasting cap for the the nuclear banking system. Why? Because the French banks have such huge exposure there! I don't believe we even need to see Italy get as far down fantasy lane as Greece before the French banking system and thus the ENTIRE Western banking system begins to cascade.

As in WWI, I believe France is the "maginot line" that if crossed is the end. The French banks, (sovereign French paper) CANNOT become the primary target of speculators. Once the speculative sights are set on Paris "too big to save" will become the operative words. In reality it is now only a matter of time! ...And market reactions to MF Golbal and Italy? Dollar up...Gold down. Again, how can no one see "it" and do the math and logic? Actually I am sure they are, Mother Nature is being masked by "unofficial, official trading". The math and logic? Where it all ends? All you need to do is follow the dominoes. Logically the "last domino" is where the Ponzi scheme all began, The United States.

As I have maintained since forever it seems, the cascading collapse will occur very rapidly and I believe terminate in a global financial holiday. Today's computerization will make the "end" happen overnite. Of course the Dollar is now (as always) catching bids in "safe haven fashion". How stupid! The U.S. is now at 100% debt to GDP (with on books obligations), Lord knows what it is when all obligations are included, 6, 7, 8, to one or more? The U.S. is in no way a safe haven, Gold and Gold alone is. Gold IS money and IS/WILL BE liquid when the roof comes down. Gold will be the "last man standing" and will attract so much demand that sellers will evaporate afraid that they are selling something real for something that is worth nothing. The move so far from $250 to the current level is absolutely NOTHING compared to where it will be when untold $ Trillions upon $ Trillions flee paper into REAL SAFETY!

We are truly cursed and blessed at the same time, we must live through what is mathematically coming. We will suffer the consequences yet be able to be witness to what surely will be remembered in history books as we remember the Roman Empire today. Fortunes will be lost and gained. These fortunes depend entirely upon how you are positioned into the "holiday". Yes, you can try to trade and gain Dollars in the short run, or you can be fully invested in precious metal investments and come out "the other end" of the holiday with maximum OUNCES! Ounces will be what are counted, not Dollars, Euros, Yen or Pounds. Ounces will be liquid,... acres, barrels, bushels etc. will be less liquid. No matter what occurs "from here to there", DO NOT get scared out of your positions, THIS is exactly what "they" are trying to do. DO NOT TRADE! Maximum "ounces" in hand and in the ground are what will matter! Be smart and do not let volatility make you re enter the casino, you have already been to and paid at the cashiers window...DON'T go back inside! Regards, Bill H.