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Often, I am so disgusted by what I see
that I need an afternoon workout to consolidate thoughts before writing my
daily wrap-up, which is precisely what I did today. The level of across-the-board
market manipulation and propaganda was so heavy today; it felt like a thick
fog over a London pier, or better yet, THE FOG.
The Fog (1980) - Teaser Trailer
I am right
on the money with my $1,750/ounce line in the sand
prognostication, as everything else related to current PM analysis is, at
this point, moot. In fact, my friend and mentor Jim Willie even used
that term in his new piece today, per the chart below. As readers know
well, short-term charts are meaningless in the manipulated PM sector,
while long-term charts can be powerful tools due to the significant
resistance levels created by non-stop suppression.
Willie's illustration below depicts a MAJOR"cup and handle" formation dating back
four months, the inadvertent product of "OPERATION PM ANNIHILATION
I", "OPERATION PM ANNIHILATION II", and the "FEBRUARY NFP
FARCE." This chart clearly depicts how the Cartel's line in the
sand has created a massive basing pattern with huge breakout potential,
yielding my continued forecast that a run to new all-time highs is in
the cards this spring.
In silver, the $34.00-$35.00/ounce level
also represents a MAJOR "cup and handle" formation, identically
indicating a potential surge to the $40s in the coming months. Not only
is such a scenario nightmarish for the Cartel in terms of PROPAGANDA
efficacy, it will establish iron clad support in the mid-$30s, just as
several years of capping has created MASSIVE support at the KEY ROUND NUMBER
of $30.00/ounce.
Contrary to my original intention, the
workout created an incredible amount of ANGER at multiple parties. The
Cartel, PPT, and Washington/Wall Street "troika" are the source
of my aggression, but the object of today's RANT is the amorphous
"Tyler Durden," whom I love for
Zero Hedge's diverse content, but HATE for his ignominious inability to deal
with the most important aspect of the financial markets - NON-STOP
GOVERNMENT INTERVENTION! Like many others in this business, Zero Hedge
will at times hint at it, other times outwardly acknowledge it,
but most of the time "play dumb."
I will go apoplectic if I see
Zero Hedge use that vague term "RISK-OFF" one more time, as it has
NEVER made a whit of sense, and doesn't in the slightest way describe
typical market action. It not only is ridiculously misleading to
characterize every minor market decline as a trend, but starkly
contrary to the website's mantra of exposing the truth, which it
appears to do beautifully in nearly every other instance.
Today, for instance, the Dow had its
usual, modest early morning weakness before the PPT immediately
staunched the decline at the modest 60 point level...
...just as it
did yesterday (low -60)...
...the day
before (low -60)...
...and the
day before that (low -70)!
NOW do you see why I chronicle the Dow's
fraudulent movement each day?
Not only does its inexorable climb
higher (on record-low volume and volatility) contradict the
deteriorating state of the GLOBAL economy, but violently flies in the face of
the ongoing EXODUS of retail capital out of U.S. mutual funds.
Estimated Long-Term Mutual Fund
Flows - February 8, 2012 - ICI
Yes, another day in the office for the
PPT, with not a whit of "new" news to speak of, just the same
litany of unending "horrible headlines" observed each and every
day, as listed below. Yet, Zero Hedge continued to show its unerring
blind spot for the simplest examples of Manipulation 101, promulgating
the very PROPAGANDA it aims to subvert with the ridiculous headline
below, describing the Dow's whopping 60 point, or 0.4%, decline this morning.
Risk Off As
ECB Says Rumor Is Actually Not Fact
First off, "Tyler," every time
the Dow falls 50 points does not denote a trend or "philosophical
change," particularly given the PPT's obvious control over all
aspects of stock market movement. Secondly, what about the ambiguous
quote in this story denotes anything remotely incremental?
- ECB NOT YET DECIDED ON WHETHER TO CONTRIBUTE TO
GREEK DEBT RESTRUCTURING - EURO ZONE SOURCES
Such "ECB uncertainty" has
been the same monotonous headline practically each hour for the past
three months, as acknowledged by Zero Hedge itself yesterday (see
below). Yet, you put out ridiculous "RISK-OFF"
headlines anyway, accomplishing nothing but confusing readers and furthering
TPTB's goals.
The Latest Hopium Recap Out Of Greece: Now 100% Recyclable
Next, if such news is so cataclysmic
that it signals an imminent Greek collapse, how is it that the EURO
DIDN'T BUDGE on this news, either after this news was published or during the
rest of the day? And since "RISK-OFF" connotes a decline in
ALL ASSETS, how is it that crude oil was UP 1% today, and base metals largely
unchanged?
WOW, the Dow was UP five points and the
CRB Commodity Index down a WHOPPING 0.07%. RISK-OFF!
Hmm, let's see. Were there ANY
markets that actually declined due to this catastrophic"RISK-OFF"
news? Ah, I see two - the only markets that have historically
RISEN during actual "RISK-OFF" scenarios; the only true SAFE HAVEN
assets in the world - GOLD AND SILVER!
And YOU, "Tyler," implicitly
agreed with this hypothesis today when you published the article
below. Why, oh why is it so hard for you to accept, let alone
publicly state, that gold manipulation is a 24/7 operation? Let
alone, THE SINGLE REASON MOST RESPONSIBLE FOR THE GLOBAL ECONOMIC CATACLYSM
WE FACE TODAY!
Gold
Increased In Value In Both Extreme Inflationary And Deflationary Scenarios -
Credit Suisse & LBS Research
Look at that, a massive surge yesterday
to EXACTLY the KEY ROUND NUMBER $1,750, quite obviously the strongest line
in the sand I've observed in ten years - hence, the massive cup and
handle formation. Any free market would have SOARED today given
the rapid key reversal following Friday's blatant "FEBRUARY NFP
FARCE," but not gold, which amazingly was capped at EXACTLY $1,750/ounce
an incredible ELEVEN times in the past 24 hours, amidst an array of violently
gold-bullish news.
Notice the $1,750 cap at EXACTLY 3:00 AM
EST, and again at EXACTLY the 8:20 AM COMEX open, when it WATERFALL DECLINED
$8/ounce for no reason; then, more violently at the PM Fix at EXACTLY 10:00
AM EST, by nearly $20/ounce, or 1.1%, while the Dow fell by its "limit
down" cap of just 0.4%.
But what's this? It looks like
nearly the entire $20/ounce PLUMMET occurred when the Dow fell a WHOPPING 25
points just after 10:00 AM, from +5 to -20 on the day...
...while our good friend the naked
shorted to oblivion HUI index fell a stunning 2.0%, a perfect example of
the "Dow/ Gold x 2" ALGORITHM in action. Better yet,
"Tyler," if this was such a "RISK OFF" event, explain how
the Dow recovered ALL its losses while gold ended down 0.7%, silver 0.6%
(though looking rock-solid at the $34.00/oz
level), and the HUI 0.6%. Then again, perhaps it's beyond your 140
genius IQ that "someone" wants gold below $1,750/ounce, or that
"someone" has a long-standing RULE that "all good PM days must
be followed by horrible days."
I suggest you take a look at how many
standard deviations from the mean a 140 IQ is, approximately the same amount
of standard deviations from normal the daily trading of Precious
Metals - PAPER metal and mining shares - has been for the past decade.
Or that that same "someone"
has a habit of blatantly manipulating the market...
...and covering its tracks even more blatantly,
such as "erasing history" for all but the few SMART enough, and
SAVVY enough, to watch what they are doing...
Now that I've unburdened that RANT,
let's get to the incredibly long list of "horrible
headlines" from today alone. You know, the ones that were so
"RISK NEUTRAL" for stocks, bonds, and commodities, but "RISK
OFF" for PAPER gold and silver, like yet another voting FOMC
member endorsing MORE MONEY PRINTING...
Fed's
Williams: If Recovery Falters, QE3 Is On The Table
How about this for "stocks
positive, gold negative?" Each week, the uptake of ZOMBIE EUROPEAN
BANKS from the Fed's off balance sheet "swap facility" grows
larger; essentially FREE, PRINTED MONEY into the coffers of the very same
CRIMINAL banks that have destroyed the world.
European FX
Swap Line Usage With NY Fed Rises To Fresh Multi-Year High As More Banks
Demand More Dollars
And how about this, S&P threatening
another U.S. debt rating downgrade in as little as six months? Yes, I
know, the PPT has completely and utterly taken over the markets
with GOVERNMENT COMPUTER ALGORITHMS, so there is no such thing as "bad
news" anymore.
S&P
Threatens US With Another Downgrade In As Little As 6 Months
Actually, I'm shocked to see S&P
make such statements, given that its' CEO was mysteriously FIRED weeks
after their August U.S. downgrade, while the world's "most respected
ratings agency" didn't so much as comment when the "Super
Committee" failed to cut a single PENNY from the U.S. deficit this
Fall. After all, S&P did state the following when they stripped the
U.S. of its AAA rating six months ago:
We could
lower the long-term rating to 'AA' within the next two years if we see that
less reduction in spending than agreed to, higher interest rates, or new
fiscal pressures during the period result in a higher general government debt
trajectory than we currently assume in our base case.
Given that official (i.e. "on
balance sheet") U.S. debt has risen by an astounding $1 TRILLION since
that statement, the 2012 budget deficit is projected to be at least the
same as 2011, and per the chart below, the rate of debt increase has
dramatically accelerated, HOW ON EARTH have they remained quiet for so
long? Of course, those of us with brains know the answer, the
same reason why Moody's, Fitch, and Egan-Jones have been quite vocal about
Europe's financial issues, but SILENT about America's.
Can you say "gun to the head?"
Speaking of Europe, here's more
"stock positive, gold negative" news (facetious), starting with the
same hollow "pledges" we have seen proposed and refuted at least a
dozen times this winter.
Summary Of
Greek Reform "Pledges"
Make that a "baker's dozen,"
only taking a few hours to be refuted this time. As Joseph
Goebbels might have said a few thousand times if he were head of the U.S.
"Ministry of Truth," buy stocks, sell gold!
Greek
Meeting Ends Without Conclusion: LAOS Head Refuses To Sign Deal
Meanwhile, the moronic media spends all
its time focusing on Greece (for now), when it's clear the EXACT SAME fate is
in the cards for ALL the PIIGS, such as Ireland...
(Broke)
Monkey See, (Broke) Monkey Do
...as PROVEN by the fact that both the
Fed "swap facility" and ECB "LTRO" operations continue to
grow, with the consensus estimate for the upcoming "LTRO 2" on
February 29th to be a whopping €680 BILLION. Buy
stocks, sell gold!
Goldman
Conducts Poll On Latest European Deus Ex, Finds Respondents Expect
€680Bn LTRO Take Up
In the U.S., the "Welfare
Society" grows larger, in just a few short years having become as
PERMANENT a fixture as the Fed's ZIRP monetary policy...
Dependency
Index Surges 23% Under President Obama
...as does its CRIMINAL underpinnings,
highlighted by the relationship between racketeers like Goldman Sachs
and the New York Federal Reserve Bank, the latter of which is run by Bill Dudley, who prior
to his role as the Fed's second highest ranking officer, was Goldman's Chief
Strategist for ten years!
New York Fed
Is Back To Transacting Opaquely, Sells AIG Holdings To Goldman
And don't forget the culture of
corruption that has metastasized across America since corporations commandeered
Washington with obscene campaign contributions over the past 15 years. Buy
stocks, sell gold!
Diamond
Foods Fires CEO, CFO After Audit Committee Finds Books Have Been
"Cooked" For The Past Two Years
Before I retire for the evening, I
figured I'd give a little quid pro quo to Jim Willie, borrowing a
fantastic quote from his FREE article published today.
The fixture
of 0% monetary policy carries with it an admission that money is worthless.
No directive by the flailing discredited US central bank could say it better.
Money has no cost because it is not worth anything, being paper in basis and
backed by no collateral.
PROTECT YOURSELF, and do it NOW!
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