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One of the rare mornings I’m not at the gym
(I’ll go this evening), although this time I just need a REST.
Moreover, there’s just too much too write, as the next episode of
“As the Manipulation Turns” commences.
It’s hard to believe gold was at an ALL-TIME HIGH
a month ago, in an environment sporting the EXACT SAME ISSUES as today. Each
day brings additional political, economic, and social horrors, which have
become ubiquitous as the collapse of the fiat currency system accelerates.
Hardly an hour passes before ZeroHedge is reporting
a major economic setback or instance of blind corruption or political
upheaval, and I assure you that pace will only accelerate.
Unfortunately for those trying to PROTECT THEMSELVES
from what’s coming (and in many countries, what’s ALREADY HERE),
the PURE EVIL running Washington and Wall Street have discovered new and
improved weapons of financial destruction, refining their crafts
(particularly in the fields of derivatives and HFT trading) to the point that
it feels they can WILL markets to where they want them to be, in some cases
in the blink of an eye such as the PPT’s multi-standard deviation surge
in the Dow yesterday, a 370-point increase in the past 30 minutes of trading
based on NOTHING. One minute, Morgan Stanley is below $12/share due to its
$40+ billion exposure to French banks, and a half hour later it’s over
$14, in hindsight due to nothing more than “rumors” that bailouts
are on the way.
As I wrote last weekend, I firmly believe MORE THAN 50%
OF ALL U.S. STOCK TRADING IS GOVERNMENT-RELATED, which is why you will probably
lose no matter what you attempt in this market, long or short. Close to 80%
of all such U.S. stock trading is HFT, of which Goldman Sachs is by far the
most dominant player, using equally forcefully efforts to PUNISH
“unfavorable sectors” such as PMs and SUPPORT “vital
sectors” such as, of course, BANKS. Given the soaring level of
fails-to-deliver in essentially ALL markets, from stocks to bonds to
commodities, I have little doubt TPTB utilize naked short-selling indiscriminantly in their goal of controlling PERCEPTION
via key markets such as the Dow, T-Bonds, currencies, commodities (how about
that Brent/WTI spread?), and, of course, the linchpins of the financial
system, gold and silver.
Short selling is an EVIL practice, initially created by
WALL STREET to generate commissions and manipulate stocks, but like any
practice in today’s corrupt banking world has become significantly more
malignant over the years, particularly since the global financial crisis
commenced in 2008. Dozens of companies have been bankrupted by naked
short-selling, including some that deserved it (Bear Stearns) and numerous
others that did not, and hundreds have had their reputations and balance
sheets permanently ruined. Taking positions in the stock market, long or
short, has become akin to playing Russian Roulette, as I believe 95% of ALL
stock investors in the past three years have lost money. Going long during a
period of historic economic contraction is treacherous enough, but when you
throw in the HFT trading (government and otherwise), naked short selling, and
targeted price suppression, it becomes virtually impossible. Conversely,
short-sellers take their life into their hands when they fight the PPT, which
in the blink of an eye, in seemingly effortless fashion, can take a dying
stock such as Morgan Stanley up 15% in minutes, or the government in general,
which can print $5 billion, give it to Warren Buffett to pretend he invested
in Bank of America, and voila BAC stock gaps up 20%. Thousands of traders and
investors got destroyed by that government blitzkreig,
getting margin calls at $8.50/share only to watch BAC plummet back to $7.00
in a matter of DAYS, and $5.00 in a matter of WEEKS.
To emphasize the point (i.e. PPT + HFT + Corruption),
gold and silver margins were DRAMATICALLY INCREASED last week AFTER the
prices were annihilated by GOVERNMENT COMPUTER PROGRAMS, to the tune of 15%
and 35%, respectively, in the space of TWO TRADING DAYS (plus illiquid Sunday
night trading, of course). The CME cited “excessive volatility”
for the margin increases, even though GOVERNMENT COMPUTERS created such
volatility and thousands of traders were already wiped out. Conversely, the
CME LAST NIGHT, following the massive PPT operation orchestrated in the final
30 minutes of trading yesterday, DRAMATICALLY DECREASED margins on FINANCIAL
STOCKS (didn’t even know there was a financial stock futures index), in
an attempt to further fuel the speculative buying of bankrupt companies like
Morgan Stanley and Bank of America. Yes, readers, this is as close to a
“policy response” from the U.S. government to a collapsing
financial sector as you’ll get…
http://www.zerohedge.com/news/soaring-financi...ce-33-margincut
…unless, of course, you include their practice of
SPREADING RUMORS and simultaneously implementing PPT buy programs, a practice
which could not have been more visible yesterday, and will only grow more
pervasive as the economic collapse accelerates.
Here are some “hindsight” explanations for
the big Dow short squeeze yesterday afternoon, and trust me that’s all
they were, the same old, same old “market action makes
commentary” propaganda tool. The Dow didn’t rocket up because of
the potential for a “bad bank” solution for Dexia
(i.e. taxpayer-funded bailout), as everyone knows
Central Banks and their flunky organizations will bailout EACH AND EVERY TBTF
bank until their currencies collapse. For central bankers and politicians,
they have NO CHOICE but QE TO INFINITY If they want to maintain power and
avoid a literally IMMEDIATE market implosion, so the concept that
“markets” were “surprised” by such news, if it was
even news at all, is ridiculous.
http://www.zerohedge.com/news/non-news-dex...-market-soaring
If the solution to banking system insolvency was simply
to create “bad banks”, the Dow would be 50,000 today, gold would
be worthless, and the global economy would be rocketing ahead. Likewise, if
all that was required was for European governments to “unite” in
bailing out insolvent banks, all would be well. But alas, that was already
attempted in 2008-2010, doing nothing but kicking the can into 2011, from
where we are now facing insolvencies significantly larger, and a banking
crisis infinitely more dangerous.
http://www.zerohedge.com/news/ft-causes...-end-day-rumors
Speaking of rumors, remember this one from September 12th
regarding how China was about to invest in Italian government bonds and
“save the Euro?” Stocks loved it, “pundits” loved it,
and politicians and the media went gaga over this “news”, which
in the big picture would do nothing but kick the can down the road again and
significantly weaken China’s finances.
http://blogs.wsj.com/marketbeat/2011...n-bond-edition/
Only problem, it was nothing more than a rumor spread
by TPTB to boost sagging bank stocks (the Dow surged 600 points in four days
on this “news”). As soon as it was disproved, down stocks went
again, culminating in a Standard & Poor’s downgrade of Italy a week
later, from A+ to A…
http://money.cnn.com/2011/09/19/n...ating/index.htm
…and a MASSIVE, three notch
downgrade by Moody’s LAST NIGHT, from Aa2 to A2.
Keep your eyes on the ball, readers, as you will NEVER
see a sovereign bond rating increase in the 2011-2020 decade!
http://www.zerohedge.com/news/...egative-outlook
Stock investing can be ADDICTIVE, and believe me I
know. Stock ownership is so exhausting, it can
dominate your existence. For years, I couldn’t use a slot machine in
Las Vegas because I was so drained from “gambling” during the
week, although in earlier days I felt the stock market was
“winnable.” Now I believe, in nearly all cases, one is better off
at a craps table than in the stock market, as at least the house rules do not
CHANGE. In other words, the odds are always stacked against you, but do not
get WORSE as they have in the stock market. Sure, there are opportunities to
make money in stocks, and my firm is certainly attempting to flesh out such
opportunities, but you must be extremely careful in such investments, as in a
cratering economy SAVINGS are of paramount importance.
Just as I predicted above you will not see a sovereign
bond rating increase, OF ANY KIND, this decade, I do not expect to see
genuine “economic improvement” in the Western world for years to
come. The U.S. is doomed, Europe is doomed, and Japan (the puppet Western
nation) is doomed, with all requiring far more downside before even a glint
of improvement is possible. So don’t be fooled by the propaganda, which
will only INTENSIFY in the coming years, telling you otherwise.
Actually, I think such propaganda is starting to wear
thin, which is why the Fed is not only being ignored but in danger of being
protested out of existence, particularly given that its 99-year lease expires
at the end of 2012. Readers know there is not an ounce of optimism in me, but
Ron Paul did win 97% of the votes in this week’s “First in the
South Presidential Preference Poll”, and wants nothing more than to
abolish the Fed. Stay tuned.
http://survey.constantconta...t4ee55w/results
http://www.december21201...?f=5&t=8084
http://www.december21...?f=5&t=8084
And before I leave the topic of propaganda, the article
below is a MUST READ if you want to see how DESPICABLE mainstream
corporations such as Starbucks can be in their attempts to boost stock
prices. Pay little attention to the corruption of the WALL STREET BANKS in
this article, as it just represents “par for the course.” But to
see Main Street join these criminals, now THAT is disgusting.
< target="_blank"span
lang=EN>http://www.infowar...et-front-group/
As for gold and silver, words cannot describe how
intense the Cartel attack has been this month,
planned throughout August and commenced the SECOND Asian markets opened after
Labor Day. First came the DEATH STAR ATTACKS, then the insane two-day attack
starting MINUTES after the Federal Reserve announcement September 21st,
and finally the all-out DESTRUCTION of mining shares, which have fallen so
sharply that even the banks are blushing.
As I vehemently forecast throughout the summer, the
Fall would bring a MASSIVE financial crisis, which it certainly has (and Fall
JUST STARTED). We all know TPTB will do everything in their power to keep
safe-haven investment flows away from Precious Metals, but even I was taken
aback by the force of illegal manipulation that has gone into this effort. I
know it’s been stated many times before (and each time truer than the
last), but the level of DESPERATION among the fragmenting politicians and
Central Banks has reached spiritual levels, and unfortunately for them will
only grow worse as the banking system, and the fiat currency system by proxy,
weakens exponentially in the coming months , no
matter how many HYPERINFLATIONARY bailouts they announce.
In yesterday’s RANT, I graphically depicted the
intense attacks on gold this month, particularly utilizing the 3:00 AM EST
CAPPING TOOL to take the sails out of the market following the unrelentless, daily Asian gold buying. If I haven’t
mentioned it before (I probably have), over the course of the eleven year PM
bull market, gold is actually DOWN in COMEX trading hours on a cumulative
basis. Think about it – gold rose from $250 in 2000 to $1,900 in 2011,
with the great majority of VOLUME trading on the COMEX, yet gold is DOWN in
New York trading hours, and obviously UP
dramatically in Asia, where PHYSICAL, not PAPER gold is being transacted. My
thanks to the great European analyst Dmitri Speck for bringing this anomaly
to my attention in 2004, a trend that has only grown more
stark since.
As for the 3:00 AM EST CAPPING TOOL, it has obviously
been a mainstay of Cartel activity for the past decade, particularly this
month. Yesterday, I showed you how gold peaked at EXACTLY 3:00 AM EST at
$1,680 on Monday night, only to be taken down NEARLY $100 in COMEX PAPER
TRADING in an environment of the EXACT SAME MARKET FACTORS that propelled it
significantly higher (capped at EXACTLY 2%, by the way) the day before!
Last night was no different, as gold rose throughout
Asian trading, essentially rejecting yesterday’s COMEX mob hit, until
– yep, you guessed it – EXACTLY 3:00 AM EST, when gold was
treated to yet another $35 DEATH STAR ATTACK!
Once again, I cannot emphasize how strong PHYSICAL
DEMAND for gold and silver is right now, perhaps as strong as I’ve ever
seen it. And each day the Cartel keeps prices depressed will only take more PHYSICAL
metal off the market, in most cases FOREVER, so buy all you can, and
don’t even blink at the premiums. The way I view it, they are not
“premiums” at all, but the REAL, TRUE PRICES, significantly
higher than the spot prices quoted on your screens.
Remember readers, the fact that mining stocks are down
is not because the prices of REAL GOLD AND SILVER are down, but because major
mining companies are too stupid to renegotiate offtake
agreements to incorporate such REAL prices. Yes, I’m thrilled that Newmont
and others are going to pay dividends, but dividends should have as much
influence on your decision to buy a stock as the interest rate on your
mortgage influences your decision to buy a house. In other words, dividends
are a distant SIXTH in my stock investing decision process to the P/E ratio,
growth forecast, balance sheet, management, and operational statistics.
Before I end this lengthy (nearly three hour) RANT, I
want to reassure readers that the aforementioned “rumors” and
propaganda are just that, LIES to make you believe things are
“improving”, or on the cusp of doing so. To the contrary, each
headline I read depicts further freefall of the
Western economy, with not only no CHANCE of improvement, but no HOPE. Have a
glance at these headlines, all published AFTER the Dow surged 370 points in
30 minutes at the close of yesterday’s trading, if you don’t
believe me (not including the Moody’s Italy downgrade noted above).
http://www.zero...crease-two-days
http://news....-081433156.html
http://fi...sset=&ccode=
< target="_blank"p>http:/...sset=&ccode=
target="_blank" htt...hest-april-2009
10/05 – 9:39 AM EST – MERKEL SAYS GERMAN
GOVERNMENT STANDS READY TO CAPITALIZE BANKS IF NECESSARY
10/05 – 9:40 AM EST – UK PM CAMERON SAYS
THREAT TO WORLD AND UK ECONOMY IS AS SERIOUS AS 2008
10/05 – 10:01 AM EST – ISM
NON-MANUFACTURING EMPLOYMENT INDEX AT LOWEST SINCE APRIL 2010
And please, please, please ignore the TOP CALLERS who
are out in force with their doom and gloom predictions for Precious Metals,
citing “technical breakdowns” and
uncertainty regarding QE3.: Quantitative Easing goes on ALL DAY , EVERY DAY,
both OVERTLY and COVERTLY, with ALL global Central Banks participating, and
it will NEVER END until the currencies collapse.
Keep your cool, be good to
your fellow brothers and sisters, and above all, PROTECT YOURSELF!
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