|
|
NEVER in my life have I had such
clarity of thought, mind, and conscience. I am FREE of
the bondage, lies, and CONTROL over my life the gold Cartel held for the
past decade.
Not that I did anything RECKLESS
by investing heavily in mining stocks, which I essentially
broke even on over a nine-year period. To the contrary, I am
a conservative person by nature, and acted as essentially
all my “Comrades in Gold Arms” over that
period. Yes, I owned a lot of mining stocks, but didn’t view them
as “risky” due to my confidence in the gold and silver bull
markets, which I was DEAD ON right about in spades.
However, I didn’t
realize the Cartel would CHANGE THE RULES in its quest to suppress PMs
and maintain the PERCEPTION of strength in PAPER, UNBACKED assets such as
the dollar and U.S. Treasuries. I was not prepared
for a sixth-sigma ATTACK in late 2008, a
stair-step increase in MANIPULATION OPERATIONS after “D-DAY”
a year ago, another sixth-sigma stairstep in April, care of the
SUNDAY NIGHT PAPER SILVER MASSACRE, and certainly not OPERATION PM
ANNIHILATION in September (starting on my birthday!), when gold approached
$2,000/oz. for the first time.
Despite the heightened INTENSITY
of Cartel suppression, gold and silver have continued to rise for a
decade, growing stronger and stronger in momentum, picking up
“longer and stronger” buyers, and convincing thousands of
people each month that the fiat currency system is indeed a HOUSE
OF CARDS, just one breeze away from COLLAPSE.
Owning stock is like GAMBLING, as the
odds are always loaded against you. I’d guess 98% of ALL stocks
throughout history have gone to ZERO, and I’d also bet, having worked
in the industry while holding 80%+ of my portfolio in mining stocks, that 90%
of ALL mining stocks, WORLDWIDE, are under $0.50 per share right now. I
always hated casinos because the odds are so bad, but now believe Black Jack
odds aren’t much worse than owning stocks, if at all. Yes, it is
possible to make a killing in the right stock at the right time, and I know
this well as I more than tripled my net worth in 2005-07 with mining
stocks. However, the HOUSE has since rigged the game to a point that
it’s not worth the risk, particularly in such a “life or
death” economic environment. Like I said, I’ve broken even
on my mining stock investments, so ALL those gains vanished while gold and
silver prices tripled.
Once I realized PHYSICAL gold and
silver WILL outperform perhaps 99% of ALL stocks in the HISTORY of
mankind, it became clear that my life’s vocation, the fundamental and
technical analysis of equities, should be disavowed. I
am CONFIDENT that QUALITY-mining shares will see a brief window of
opportunity, but only QUALITY mining shares will participate, with heightened
risks in the stock picking process with each passing month. Operational
risk, cost pressures, political risks, windfall profit taxes, and
capital gains tax increases will ALL intensify, culminating in the coup
de grace for the ENTIRE sector, EXPROPRIATION RUMORS. Not to mention,
the risk that banks and brokerages holding your shares go bankrupt, bank
and/or stock market holidays, and, of course, the risk that your
paper-denominated shares cannot be effectively (or practically) converted
into REAL MONEY due to hyperinflation and/or metal shortages.
I have not slept this well in a decade,
and will NEVER have the FEAR, LOATHING, and ANGST I had while holding large
positions in mining shares, NEVER again!
OK, let’s get back to
today’s stock market love fest. The Dow is now up
1,800 POINTS in the past three weeks, albeit in a PPT-dominated
environment featuring EXPONENTIAL increases in government stock buying
aimed at squeezing the RECORD stock short position and creating the
PERCEPTION of a “European solution”, all despite unwavering mutual
fund redemptions week after week after week. Yes, there still are SOME
legitimate stock market participants, but the majority lost their shirts
during the tech wreck, and much of the rest during GLOBAL FINANCIAL
MELTDOWN I three years ago.
Goldman Sachs alone accounts for
10% of ALL U.S. stock trades, and other HFT firms another 65%.
“Buy and Hold”, the mantra of two centuries of American stock
investing (Peter Lynch, John Templeton, and Warren Buffett) is long dead, as
the average holding period for U.S. equities has fallen, thanks to
GOVERNMENT and HFT MANIPULATION, from four years in 1945, to EIGHT
MONTHS in 2000, to TWO MONTHS in 2009, to just ONE MONTH today!
Today’s stock market surge, and
frankly the entire 1,800 POINT Dow advance, is the product of
EXPECTATIONS for a “Greek bailout”, aided by maniacal PPT buying,
of course. Western government “leaders” KNOW what happened
in 2008-09, and are desperately attempting to recreate the two years of
investor RELIEF from the last round of mass bailouts, which enabled them
to kick the can into mid-2011. TPTB are not smart AT ALL, not
Merkel, Sarkozy, or “Iron Bra” Lagarde from the East Side of the
pond, and CERTAINLY not the ABJECT morons on this side, Generals
Bernanke, Geithner, and Obama. But they do understand that the majority
of market participants believe BAILOUTS make for higher stock
markets and reduced credit market stress, and are determined to recreate
their 2009-2011 “success.”
To them, it doesn’t matter that a
decade of bailouts, either implicit such as ZIRP or explicit such as TARP and
the EFSF, have only made things worse, or that each dollar, Euro, and
Pound printing brings the world that much closer to HYPERINFLATION. All
that matters is their attempt to do ANYTHING to “extend and pretend”
the fiat-based game, irrespective of the consequences. Just
keep PRINTING MONEY and goosing the stock market, and all else will take care
of itself, so they think.
If the “historic”
(facetious) Euroland bailout wasn’t announced today, it would have been
just another day of economic misery, and fraudulent government
accounting. To wit, we started today with a huge drop in pending
U.S. home sales…
http://www.foxbusiness.com/industries/2011/10/27/us-pending-home-sales-fall-46-in-september/
…and an even sharper decline
in consumer expectations, to a level last seen at the BOTTOM of GLOBAL
MELTDOWN I…
http://www.zerohedge.com/news/bloomberg-comfort-index-shows-economic-expectations-lowest-march-2009
But don’t worry, GDP growth ROSE
2.5% in the third quarter, despite the most rapid deterioration of economic
statistics I can remember. Take a good look at the chart below,
showing just how fraudulent government accounting has become.
For the past 15 years, consumer
confidence has had a roughly100% correlation with personal expenditures,
the component MOST responsible for the 3Q GDP “spurt.” Not
only did consumer confidence PLUMMET during the third quarter, but literally
fell off the bottom of the chart, to the lowest level in perhaps 30
years.
Yet, the government says personal
expenditures ROSE in the third quarter, yielding 2.5% GDP growth!
http://www.zerohedge.com/news/charting-paradox-surging-q3-gdp
Before I get to the grand European QE
announcement, keep in mind that GLOBAL QE is the more appropriate
headline. Japan continues to fade into oblivion, in its 22nd year of
recession and more than a decade of ZIRP. Yet another OVERT QE announcement
was made this morning by the pathetic BOJ, but sadly the financial
world seems to care about as much as they do of the misery of
Japan’s citizens. The land of the world’s oldest
population, and lowest birthrates, is now the center of radioactive hell, a
tragedy sure to be borne out for several generations.
http://www.creditwritedowns.com/2011/10/quantitative-easing.html
Pardon me if I’m not that excited
about the “big announcement” of a European bailout (which is
exactly what it is), as it has been telegraphed for weeks. Anything
short of a full-scale, TARP-clone bailout would have yielded immediate
market collapse. So, what a shock, a TARP-clone bailout announcement!
http://www.bloomberg.com/news/2011-10-27/europe-leaders-set-50-greek-writedown-1-4-trillion-in-debt-crisis-fight.html
I’m not going to repeat the
numerous, fantastic analyses I’ve read of it today, such as this one
from GATA poster, and fellow Coloradan, “Dave from Denver”…
http://truthingold.blogspot.com/2011/10/eu-rescue-plan-whole-lotta-nuthin.html
However, suffice to say what occurred
today, in my view, marks a KEY INFLECTION POINT IN ECONOMIC HISTORY.
There should no longer be any doubt that all PAPER financial
markets are controlled by WESTERN GOVERNMENTS, led by the EVIL leaders
in Washington, New York, and London.
To start, the 50% “Greek
Haircut” was no such thing at all, a pure farce as it’s
only 20% when you exclude Greek debt owed to “the Troika”,
which conveniently is not subject to the haircut (heck, they need every penny
they have for the $1 TRILLION increase to the EFSF stability fund).
Moreover, the criminal ISDA, or international regulatory agency for CDS instruments
(which I had not HEARD OF until today), determined that since the EU
arbitrarily termed the haircut “voluntary”, it didn’t count
as a “credit event”, and thus would not trigger payment
mechanisms on Greek sovereign CDS agreements!
http://www.businessweek.com/news/2011-10-27/greek-accord-won-t-trigger-credit-default-swaps-isda-rules-say.html
I am no fan of the CDS market,
which represents ALL THAT IS WRONG with the global financial system.
However, despite its MASSIVE FAILINGS of the past (can you say
AIG?), it has been considered a legitimate hedging tool by the
market, and today the U.S.-led politico-economic CRIME SYNDICATE
declared CDS contracts to be null and void, changing the accounting
rules in the same reckless, illegal manner as they did in 2009 when they
forced FASB to alter its derivative valuation
rules for zombie TBTF banks. Clearly, the ISDA is to
derivatives as FASB is to accounting, the SEC to stocks, and the CFTC to
commodities – a puppet organization run by the bankstaz and for the
bankstaz.
No matter that the ISDA’s
OWN VOTING MEMBERS disagree, much like the drowned-out objections of Bart
Chilton re: COMEX silver manipulation. The FINANCIAL MAFIA gets what it
wants, caveat emptor (unless, of course, you own PHYSICAL gold and silver,
where they are POWERLESS)!
http://www.zerohedge.com/news/barclays-explains-why-50-greek-haircut-would-be-considered-credit-event-consequently-triggering
Whether a repeat of mid-2009 through
mid-2011″reflation” occurs or Europe and the rest of the Western
financial system collapses, gold and silver will SOAR. However, for the
few TRUTH-SEEKERS of the world, have no fear. If the former scenario
takes hold, its HALF-LIFE will be dramatically less than the two-year period
the last time around, likely by no more than HALF, per the definition.
The economic damage by reckless,
FRAUDULENT fiscal, monetary, and accounting policies has been so
pervasive, so decisive, and so UNPRECEDENTED; it is MATHEMATICALLY
impossible to prolong the inevitable for more than 6-12 months, in my
view. In fact, today’s announcement that CDS swaps are no longer
valid will not take long to filter through the balance sheets of the
multitude of INSOLVENT WESTERN BANKS and SOVEREIGNTIES. “Winning”
CDS positions, utilized to HEDGE against exactly what has occurred, were the
only things standing in the way of numerous balance sheet defaults, while
INTEREST RATES have no where to go but up now that CDS rates, previously
utilized as a BAROMTER of default risk, have been disabled.
Kind of like what THEY have attempted
to do with the gold and silver BAROMETERS OF BAD TIDINGS, huh?
Either way, THIS is the REAL state of
Europe, a bottomless financial pit with EVERY POSSIBLE VARIABLE working
against it. THIS is the Europe that will emerge from the latest
“bailout”, to return to its economic dark ages in the coming
decade.
http://www.stratfor.com/analysis/20111019-special-series-assessing-damage-european-banking-crisis
Of course, it all comes back to the
same old problem, with the same old, historically proven solution. Fiat
currencies ALL collapse, and the current fiat currency system, which
unfortunately is now GLOBAL, is about to have the grandest collapse of ALL
TIME.
The LINCHPINS OF THE ENTIRE MONETARY
SYSTEM are GOLD and SILVER, and all it will take for them to re-establish
their historical roles as MONEY are a few billionaires or sovereign
wealth funds taking on the Cartel. Believe me, in just two days at
Miles Franklin’s office, I can SEE the discussions with such
“whales” building momentum, nearing that final melt-up when
gold and silver go NO OFFER, and everything paper NO BID.
And speaking of PHYSICAL DEMAND, my
good friends at the Central Gold Trust (GTU) announced an overnight stock
offering this afternoon, armed with a fresh $1 billion shelf offering.
In recent years, each successive GTU offering has set a new record, and
I’d be very surprised if this one doesn’t exceed the June
2010 offering size of $280 million. GTU is one of the two
“stocks” I own, the other being its “sister fund’
SVRZF, the Silver Bullion Trust. I’d own 100% physical if I
could, but still need some “cash” to pay the bills, and
in my case, GTU and SVRZF in a Charles Schwab brokerage account represents
such “cash.” Watch for the fund buying its gold tomorrow
morning (and the Cartel attempting to cap gold simultaneously), as well
as the ensuing announcement of the deal’s size.
http://finance.yahoo.com/news/Central-GoldTrust-Announces-iw-3268106141.html?x=0
And by the way, remember the
MASSIVE silver shortages in April, when PAPER prices approached $50/oz
before the SUNDAY NIGHT PAPER SILVER MASSACRE? Just wait and see
when it decisively breaks through $50 next year (or this year, if TPTB lose
control more swiftly). The supply vacuum resulting from a
THIRTY-YEAR TRIPLE TOP BREAKOUT will be among the most AWESOME in FINANCIAL
MARKET HISTORY, although the world in which it occurs will not be one I am
looking forward to living in.
PROTECT YOURSELF, and do it NOW!
|
|
