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President Obama's Gold Mask, Part 2

Graceland Updates 4am-7am
Jul 26, 2011

1. "It's just a dang disaster everywhere you look," Redmon said. "I haven't even seen a corn crop this year, unless it's being irrigated. Those guys just got hammered." Bloomberg News, July 25, 2011.

2. While leveraged hedge fund managers read the USDA reports of "record corn plantings", then leverage the dollar against food in a crazed food shorting frenzy, farmers in the real world are watching their crops burn. This situation may be just the beginning of a food price parabola.

3. The situation is grim, and food prices are probably set to become one more driver pushing the gold price thermometer steadily higher, not just for price, but for time. The list of gold time and price drivers is growing, and intensifying.

4. Against this horrific background of possible (probable?) looming food shortages, President Obama addressed the American nation last night. He predicted dire consequences for financial markets, unless taxes are raised on "the millionaires and billionaires".

5. I doubt that a 100% taxation rate on all US individuals and corporations could even eliminate the deficit now, let alone solve the OTC derivatives and unfunded liabilities debt bombs. The situation has redlined, and the gold thermometer of the world's financial health indicates a five alarm fire is raging.

6. Click here now to view your five "gimme it now!" key buy points for gold. These HSR (horizontal support/resistance) lines are drawn across highs in the uptrend. You should understand that a support line is best drawn across a previous high, not a low.

7. Use common sense when applying capital into the market. Bigger support sits at $1578, and since price just tagged $1624, a fall into $1578, if it happens, is about a $46 price sale, so I think you need to buy something there.

8. Your five key buy points in the short term are $1610, $1595, $1578, $1558, and $1535. The question is, are you prepared to take buy action, if they happen? Remember that a little price sale should be met with very little buying. $1610 is a very small price sale, from the $1624 highs.

9. Live in the present, not the past. In the 1930's, gold was re-valued about 70% higher against the dollar, purportedly to save the system from imploding. $1600 gold is very high, against the background of a nation working diligently to reduce debt and spending. Is that what is happening now? No, the opposite situation is happening, and the steadily rising price of gold reflects current reality.

10. Look at the expression on President Obama's face in his address to the nation. The situation is clearly grim, and he's prepared to take powerful action. I told you about the possibility of a certain man wearing a gold mask a long time ago. Do you remember his name?

11. Don't think that your President hasn't considered closing all markets and banks, banning the public from buying gold bullion, and then revaluing gold dramatically higher. If that occurred, when he re-opened the markets, what would you feel like, what would be your financial gain or loss? Would you be in golden party mode? I hope so.

12. I told you that QE was a water gun against a forest fire and destined for the backburner, and that's what has occurred. Gold revaluation, not grandstanding tax increases or QE squirt guns, is the kind of drastic action needed to make the epic debt manageable.

13. The way a modern revaluation would likely work is that gold dealers could be limited in what gold, if any, could be sold to the public, and the most powerful central banks would announce they are prepared to buy any amount of gold from anyone at a certain minimum "floor price".

14. Let me ask all those who are telling you that your gold stocks are finished a little question. If institutional money managers were faced with a modern gold revaluation situation, where bullion buying was limited or even eliminated, do you think those managers might possibly consider buying gold stock?

15. Earth to gold stock bears on Mars, knock knock, is anyone with an IQ over 10 home? Sadly, nobody is home, and many are actually naked short gold stocks. The scheme is to short the stocks and buy bullion in a ratio trade. Pure genius! Just remember that there is a very fine line between genius and insanity. When GDX blows the doors off the US dollar toilet paper roll, at just over $64, and does it with or without gold revaluation, you could see gold stocks start a rocket ride towards GDX $75-80, then on to $100. The bears could be exterminated, and I think it happens.

16. Click this GDX chart now to view your key GDX buy points at $58.50, $57, $55.50, $54, $52.50. Are you prepared to take buy action at those points, and below, if it happens?

17. Many investors and analysts who totally failed to predict the 2008 crisis, and liquidated into the lows, are now telling you to be ready for "Lehman 2". Only an idiot is not removing some cash today from the financial system, given the grim statements made last night by the President of the United States. While put options are the best insurance you can buy for your gold holdings, you should also understand that the situation is so dire that a default could also cause gold to spiral higher, or be re-valued higher by central banks.

18. Can you even imagine the horrors of blowing out your gold on a debt default-fuelled hit to say, $1200 gold, only to watch the President of the United States close the banks and markets, address the nation, and announce gold has been re-valued overnight to numbers that now seem inconceivable and impossible?

19. You'd be wiped off the financial map by the man in the golden mask, and the only question is, are you prepared?

20. The bottom line is that those who were blown away into the Dow lows of 6500, while I bought and told you to buy, may not necessarily be your best "beacons in the storm" during this new phase of the accelerating crisis. Predicting your way through the crisis has not worked up to this point, and it's likely about to get a whole lot harder to do so.

21. It's very important to keep a distance from those telling you "what you want to hear". It feels comforting to "know" another 2008 is coming, and so if you just sell in size now, you can always get back in later. That's a very soothing thought, but is it valid? Think of the breadlines of the 1930s. This crisis is far bigger, and the US dollar is now held up by liquidity flows and promises, not 20,000 tons of gold. You can't know what is coming, but you can respond to what does happen.

22. I see a need to raise cash levels outside of the financial system more than within it. Obviously if you bought GDX, individual gold stocks, and gold/silver bullion into the weakness of GDX $51 and gold $1478, you are taking bits off the table into this monster rally, and that is raising your cash levels. You can't seriously believe the financial system can take another Lehman-style hit and remain open, can you? So, what do you think you should do with that cash, leave it all in the system, or take some out?

23. I'd like you to look at the horrific financial positioning of Elmer Fudd Public Investor. He waddles in and buys bonds after a 30 year bull market. That crap pays him negative real interest rates. He's soaked in debt and lives far beyond his means. Fudd believes the Gman and Ben "Dr. Pinocchio" Bernanke are his saviours. The bottom line is that Fudd is all boxed in with nowhere to go, except straight down to the breadline.

24. I told you that you would soon feel "fear beyond fear" as the dollar and the bond begin to implode. We are on the cusp of that situation now. You need more cash (outside the system) and more gold, as the crisis accelerates. Click this swiss franc takes a bat to the dollar chart link now, to ask yourself what kind of cash within the system you really need. See you out there, on the price grids. Thanks!

Special Offer For Website Readers: Send me an Email to freereports4@gracelandupdates.com and I'll send you my "Uranium Head & Shoulders" free report. I believe the "Japan meltdown" issue caused the pullback to the neckline of a huge basing formation on some uranium junior stocks. Learn which ones and how to play the action! Thanks!

Thankyou
Cheers
St

 

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