- How do you spell "party"? I spell it, "ringing the cash register".
- The greatest danger in markets is believing you have the situation all figured out. For many decades, the "banksters" have controlled the gold market, and many other markets. When the OTC derivatives were marked to market (a small portion of them) in 2007, the losing side of the trade said "we don't have the money, we're bankrupt!". The winning side, the bankster side, said, "if we don't get paid, we shut the system down. We crack the whip and the taxpayers make the trip. Ha ha ha!" The greatest blackmail in the history of the world then immediately took place, as US Govt borrowed trillions on behalf of the taxpayers (stole it from them), and handed it to the banksters. The bottom line is the banksters became multi-trillionaires in a heartbeat, and began their reign as money kings in the new era of "unlimited money". Unlimited money for them. Unlimited debt for the taxpaying bagholders, the American Citizen.
- Since the multi-trillion dollar OTC derivatives implosion of Lehman Brothers, it has become all-critical that investors never forget the power that "unlimited money" gives to those in that position, on a macro as well as on a micro scale. That power will be used in the gold market on a degree never imagined by most, let alone experienced, in the very near future.
- Most analysts and investors in the gold community have become very very bullish on gold items over the past couple of weeks, and with a lot of good reasons.
- What I would like you to understand is that I'm probably even more bullish than most of you, but there is a "dangerous to you" undercurrent developing, a gold market "rip tide" if you will.
- The banksters don't need to crash gold and gold stock to take the gold items most investors hold; they just need to hit it enough so those investors liquidate. Because they have near unlimited financial resources, the best charts and analysis mean very little when put into the market battlefield against the liquidity flows of the banksters.
- That is what I'm seeing now in the gold community; a focus on charts, good times, and strong seasonals. Some are claiming gold can't sell off now. That's just plain wrong. I agree all the bullish factors mentioned are present, and more. September is also a time when junior miners release drill program results, and that's been happening. I've referred to "Golden Popcorn", and many juniors are indeed "price popping" upside, with 20%, 50%, 100%, and even bigger moves, in just over the recent 4 to 12 week timeframes. Other juniors however, remain stuck in the mud, well below their 2006 highs, having hedged or diluted themselves as they faced costs that rose faster than gold did!
- Most writers believe the gold bull market has many years to run. I say: Perhaps. That depends on how gold is used by the banksters as a control mechanism to raise asset prices, not on whether the impoverished public "sees the light" in gold's value.Let's not be too hasty to forget the main function of gold in the financial system.
- Let's all repeat together: Gold is a control mechanism. The banksters make most of their money from selling debt to people, govts, corporations, and now, central banks. The more debt that is taken on, the more money the banksters make, provided the debtor can pay the interest on the debts. It really doesn't matter about the principal; what matters is the ability of the banksters to keep the debtor servicing a growing debt.
- From time to time, the debt levels can become unmanageable. This has happened many times in history, over thousands of years. When it is a small debt, and the debtor can no longer pay, the banksters tend to force the debtor into default/bankruptcy.
- When the debt is very large, that is when GOLD enters the picture, as the punisher. When the system is the debtor, the banksters have a toolbox they use to attempt to manage the situation before bringing the gold punisher onto the scene.
- First they lower rates, "all the way to zero for an unlimited period of time if need be". The majority of investors believe the lowering of rates is to restart the economy. Wrong. It is to raise asset prices against paper money. When debt is marked to market and the debtors can't pay, asset prices fall against paper money.
- The lowering of rates is an attempt to raise asset prices. That tool has been employed for several years now, and is generally deemed to have failed. The next tool in the banskters toolbox is Quantitative Easing. QE is a purchase of assets by the banksters, a further attempt to raise asset prices.
- Where I differ with most analysts, is my view is that these bank policy tools are not designed to restart the economy, but to raise asset prices. The purpose of raising asset prices is to allow the largest debtor, the govt, to continue to service their debts, without defaulting.
- Stock market prices have recovered moderately, looking at the Dow. Unfortunately, most investors are not invested in the Dow, and were never invested in the Dow. They were invested in playland stocks, and playland has been razed by the grim reaper of valuation reality. Their portfolios look like charcoal, and taste like charcoal. The bansksters are much less willing now to allow these investors to use either their stock market or real estate carcass portfolios as collateral, for increased debt levels. The bottom line is that asset prices need to be vastly higher for the banksters to open the lending spigot.
- That brings us to the next tool, gold revaluation. The gold revaluation phase is what was referring to when I began referring to a coming "Gold Punisher", and most didn't really understand why I called gold "the punisher". I would suggest the reason for that moniker is a lot clearer to you now. The "chop till you drop" interest rate show failed to raise asset prices. QE cannot yet be deemed to have failed, but report card day is drawing near and it's looking like a "D" is going to be what all the debtors are going to be rating the effect of buying assets, on their asset prices. The Gold Punisher, the Queen, is backstage now, preparing for her entrance on the main stage for the Big Show. The question is: Are You Prepared?
- What about timing? Look at the liquidity flows. The banksters are piling on short positions in the gold market. Does that sound like a strategy they would employ if gold was about to be re-valued here and now against the dollar, and the dollar was about to begin a huge leg down against gold?
- The answer to that question depends on how big a short position you think the banksters can carry, with the ultra-leveraged "fundsters" on the other side of this trade. The answer is the trillionaire banksters can carry millions of contracts on the short side, millions beyond the 500,000 they are carrying now, by definition, because they have trillions in liquidity to do it. The fact is they are already carrying tens of millions of contracts as a group in dozens of futures markets around the world, so "stepping up" their gold mkt trade and position size, either on the short or long side, to numbers vastly beyond the imagination of most in the gold community, is easily possible, without bankrupting the comex.
- While the banksters could carry millions of gold position shorts, the reality is they want to make money on their newest short positions, and the sooner the better. Live for ringing the cash register today, not tomorrow's gold pie in the sky, is their motto, and mine. $1156 is now a distant memory. We have risen almost exactly $100 to $1256, and recovered $100 of the $110 we tumbled from $1266. Those who "knew" it was all over at $1156, now "know" gold is about to blast to $1400, with visions of $2000 an ounce gold sugar plums dancing in their heads. I have the same visions, which is exactly why I am a seller into this rally. Not a buyer. Not a wiener. The price-chasing wieners will soon be roasted, as they have been every time they have swaggered up to the price chasing trough since the beginning of time itself. Sorry to break the news to those of you holding your price-chasing gold heroin needle, but I don't bet against the bansksters, not here, not now, not ever. Go ahead, stick that needle in, see what happens. Get a grip on yourself. Don't shoot up with heroin. There's nothing the trillionaire banksters like better in a market fight, than an opponent who is drugged up on price-chasing heroin. If the heroin addict is also snorting a big load of debt cocaine, if he is leveraged, all the better, because then it's slaughterhouse time.
- Here's the natural gas chart, and it has gold $250-$400 written all over it. Nat Gas Chart. Important Buy Program Underway! Look at the myriad of buy signals being generated on the oscillators! As phenomenal as NG looks, Uranium looks even better! Here's the Uranium Chart. There's a head and shoulders bottom, and you can be a player in this asset class via the U.tsx ETF for just $6 a share! Hands up everyone who doesn't have six dollars to own at least one share of this ultra high quality asset while the market is holding a 70% off price sale! I'm a buyer every 5 cents down; that's the level of commitment.
- Don't lie to yourself. You remember when I called Gold players to the risk table in the $970 area, in anticipation of the breakout from the supersized h&s bull continuation pattern. I'm calling those of you who are players, again, here and now, to gold. I'm making an even stronger call to you on the buy side for silver, the GDX, and the GDXJ. It's time for players to buy.
- Now the bad news: Most of you are... not players. The real market player takes action maybe 4 times a year. Most of you are investors or traders. Traders must be sellers of gold here and now into this strength. Don't lie to yourself and call yourself a player if you are a trader. Don't shoot up with price-chasing heroin. Your mind is not the player's mind, and the banksters may know your market mind better than you do. They're preparing to carve up gold heroin addicts like they would a suckling pig, for their personal banquet. The player doesn't care if gold falls $50 or whatever. The trader is totally broken mentally if price falls that much after they bought, and is likely liquidating in failure. Each booked loss lowers the mental state of the trader, and increases the amount of irrational thought. The decision-making process short-circuits.
- Here's a look at the GDX Daily Chart. Price is up about 15% in 6 weeks. There's nothing else to do buy book profit on trading positions. Nothing. Now here's the GDX WEEKLY CHART, which is flashing the words, "Attention Players, Time To Buy!", and flashing it in blasting bright neon! Not the red supply line in the sand, which is really an exponential-gains-for-you launch pad into the stratosphere. Despite a huge run, the weekly chart oscillators are still generating buy signals right now!
- The game I believe the banksters will play, here and now, is to patiently add shorts into gold's strength while frustrating traders who buy with tight stops, and frustrating those who have sold too quickly and are now afraid they are going to miss out on "the big one". Your strategy must be: Buy now if you are a player, continue to book profit on your gold and gold stock trading positions, and order the cement truck to encase your gold market core positions in cement, positions you are already gripping with an Iron Hand. OK people your holiday is over! Let's hit the Gold Price Grids. Work Time!
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