June 5, 2009

1. The US dollar has fallen from a recent high of 120, and before that, over 160. It now sits around the 80 mark. The gold community has whipped itself into an all-out frenzy. Not good.

2. The markets are a bank congame. And you are the bank MARK. The US dollar isn't going to zero. It is nearing the end of a massive bear market, not starting it. When the last bull market in gold ended as Jim Sinclair's own employees worked thru the night selling his 2 million ounce gold position, those employees did not sell their own gold. Some went to the POORHOUSE as gold crashed.

3. "When this gold bull market ends, 97% of you won't believe me when I say it's over." - Jim Sinclair. World's Largest Gold Trader.

4. How will the gold bull market end? And more importantly, what actions will you be taking when it does? Answer: Most likely, the gold bull market will end will a new gold standard, a watered down version of a real gold standard. I don't know what actions you will be taking when the bull ends, but I know what actions I'll be taking. And it won't be the actions that Jim's employees took. In the last gold bull mkt I sold at the top while most gold writers said rates would soar and the dollar would collapse.

5. The solution to the current otc derivatives crisis, the economic crisis, the debt crisis, the solution is: Gold.

6. Some of you have written me asking if Ben Bernanke thinks gold is a currency. Of course he does. He knows it is the only real currency. Is he a jerk and a liar? I think so. An idiot? Not at all. He's a genius. His actions are carefully planned, and he understands gold far better than most of us. He, togther with the Treasury will use gold to end the crisis, taking his orders from the bankers that created the crisis to enrich themselves. Creating the crisis enriched the major bank families. Ending it will make them richer still.

7. The revaluation of gold against the US dollar will be accomplished by the re-introduction of gold as a CONTROL on the paper money supply of US dollars. It will likely be a control event, not a price event, not a conversion event.

8. Right now, every time the US govt prints money, there is no control on how much money can be printed. Put your car in park. Start the engine and floor it. With no governor on the engine it will blow up. The bankers removed the governor from the US dollar engine in 1970. The governor is gold.

9. The revaluation of gold against the dollar will be the re-instatement of Governor Gold. The mechanics of this control mechanism will be twofold: First the US Treasury and global central banks will create a buy program for gold. If the supply of US dollars is to be increased annually over a certain floor percentage, say 5%, enough gold must be bought by so the ratio of dollars outstanding to gold increases by only 5%.

10. What this means in plain English is that Helicopter Ben could increase the money supply by 10,000% if he wanted to, provided that he then bought enough gold to maintain the ratio of dollars to gold showing just a 5% increase. Bottom Line: Helicopter Ben gets his rotors clipped.

11. The bad news is this should have been done at gold $250. Or gold $400. Or gold $500. Why wasn't it done then? Because the bankers wouldn't have made trillions, that's why. The crisis, and the solution, is about them. Not you. Accept it. I have.

12. 900,000 gold analysts have sung in the "The hedged gold stock company management are idiots!" choir. I agree, the management of those companies that placed massive hedges of multi-year production are stupid.

13. However, my focus is on the other side of that trade. 99.99% of the gold writers are focused on the losing side of the trade. If you are focused on losers, well, show me your focus, and I'll show you who you are.

14. I'm focused on the winning side of the trade. The bankers holding the bull side of aprox $400 billion in otc gold derivatives. The bankers are net short about $20 billion on the comex.

15. Hello? Anyone listening? Look at who really owns Barrick. The barrick shareholders have paid the bankers billions in "dividends" from the gold hedge derivatives while the price sat there. Of course, you may have noticed that the rest of the gold community shareholders didn't participate in the free money party. The bankers are like a giant leech. Sucking the bulk of Barrick's gold production for themselves while holding a fool's gold carrot on a string in front of the lemming gold community. Now have you got a tiny inking of how smart the bankers are? Hope so. Throw your "the bankers are going to burn because they are idiots" theories in the garbage. Before they cost you any more real money. I HATE losing money. Which is why I study the actions of the bankers so intently. They are the greatest money makers in the world. And right now they are raking it in like there's no tomorrow with a nuclear-powered gold vacuum cleaner. Question: Do you want to be the vacuum cleaner operator, or the gold bug sucked inside it?

16. A massive gold stock repo is coming as the gold price soars. Just as the bankers collected trillions in winnings from the taxpayers on their real estate, stk mkt, and bond mkt otc derivatives, the bankers will collect the winnings from the hedged gold companies via a stock repo: "Hey Mr. Mining Company, you've got a 10 billion dollar margin call on your bustout gold hedges you wrote with me. You've got 24 hrs to hand over the dough or I repo your stock, got it?" - Mr. Banker, 2010-2011.

17. "I don't have any dough. I'm broke. Here's 51% of my stock" - Joe Mining Company CEO.

18. My estimate is that within two years the bankers will control virtually the entire gold production of the world. Just as they have in the past.

19. If there is no Gold Governor installed, the gold market could spiral to the hyperinflationary targets envisioned by the gold community's superbulls. And then crash even faster than it rose, as a full communist govt is installed in the USA. The size of the OTC derivatives fireball is so big that there is no other outcome. It's not a solution. It's an outcome.

20. I personally believe that Governor Gold will be "elected" before any actual hyperinflation occurs, before any communist govt is installed. The main reason I believe that is the bankers simply can't physically collect their winnings without Governor Gold in place. And they have every intention of collecting every cent they win. If you look at their actions in the gold market alone over the past view years, you know they leave nothing on the table for the little people. They vacuum it all. Even the gold dust.

21. Today's fake unemployment report has totally destroyed the hedge fund bets on shorting the Dow, and most of the Dow shorts of the gold community. Markets move up on down on loss taking. Not profit taking. That's a myth fed to you by the bankers. I have repeatedly warned against shorting with more 30% of your long exposure. If you have no gold, do NOT short the Dow. Buy gold instead on weakness. Use Dow weakness below 6500, should it occur, to BUY the Dow, not short it. I'm prepared to buy the Dow to 1000, which is where my largest buy orders would get filled if it fell there. Think big. Take charge of the Dow. Don't be afraid. The bankers want you to be afraid. If you are afraid, then you are betting too big, end of story. My exclusive Pyramid Generator, the Pgen, has helped thousands of investors turn decades of failed tactics into a winning approach. More importantly even than the profits (ok not really), is the feeling of control that is achieved. I get truckloads of letters from subscribers every week. I'm not a tipster. I teach you to sculpt your buys and sells. Like a real sculptor, sculpting yourself into a mini banker.

22. The bets on gold placed by the bankers involve hundreds of billions in paper gold bull bets. When they collect, they will collect in: Dollars. US dollars. American Greenback.

23. Governor Gold will turn the American greenback into a company emerging from Chapter 11. The taxpayers will be left holding the dollar bag. The dollar, with Governor Gold firmly in control, with start a massive ultra long term bull market, and if I'm reading the bankers correctly, the US T-bond will be the flagship vehicle the bankers use to cash out of their paper bull gold bets and into the new gold-backed dollar. When the dollar bottoms, well, I want you to start preparing now. Meantime, don't blow out your gold stocks on weakness. Yes, the bankers are going to take the bulk of the world's gold production for themselves via their gold bull otc derivative vacuum cleaners. But there will be PLENTY of upside action for YOU. If the bankers hadn't created the crisis, hadn't sold the otc gold derivative hedges to the mining ceo coconut heads, YOU wouldn't be about to make a fortune in gold stocks! Thank Governor Gold as he operates his gold production vacuum cleaner. For your profits!

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