Obstacles are those frightful things you see when you take your eyes off your goal..Henry Ford
GO GATA!!!
The nightmare rolls on and the patsies in the gold industry maintain their Tweedledee Tweedledum silence over the glaring manipulation of the price. (Emphasis on dum).
From yesterday’s MIDAS:
"Once again, gold broke first, followed later by an UP move in the dollar. The Gold Cartel traders get their heads-up before the rest of the market participants and get in their money-making licks ahead of time. Let’s hear it for democracy and our free markets."
Well, the Orwellians swung into action for the second day in a row with even more blatant price managing today. First, firm physical demand supported the gold price in London with the AM Fix coming in at $416.50, up from the Thursday Comex close. However, by the open this morning, gold (as usual) came off that Fix to come in $1 lower. All eyes were on the pivotal US jobs number.
As has been the case for months for US economic statistics, the number
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This very disappointing payroll number sent the dollar reeling. The euro rose .8 and the pound and yen took off. Yet, an oversold gold could only go up 20 or 30 cents. The gold action was beyond terrible. I sat there starting at the screen uttering, "Uh-oh, something is up and it’s not good….gold should have popped $3 easily on the news."
No sooner had those words come out of my mouth when the dollar made a sharp u-turn. The March euro went from 130.42 to 129.13, rallied, then plummeted to 128.83, down .92. Gold dropped $3. Obviously, for the second day in a row, The Gold Cartel traders knew intervention was soon to hit the market, so they sat on the gold price, waiting to rip off the unsuspecting public who went long on the lousy jobs news. What was it, I wondered, that could move the dollar so much, so fast? When I found out it was a big fat zip nothing, I almost fell off my chair:
08:46 Greenspan says that market pressures may reduce the current account deficit -- Greenspan notes that US exports are increasing, and a drop in imports may be approaching as import prices have been rising. The Fed Chairman's comments were made at a speech in London.
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LONDON, Feb 4 (Reuters) - Federal Reserve Board Chairman Alan Greenspan said on Friday market forces and likely action by Washington to cut its budget deficit "appear poised" to stabilize, and perhaps cut, the record U.S. trade gap.
"Besides market pressures, which appear poised to stabilize and over the longer run possibly to decrease the U.S. current account deficit and its attendant financing requirements, some forces in the domestic U.S. economy seem about to head in the same direction," Greenspan said in remarks prepared for delivery at a conference hosted by the British Treasury.
"The voice of fiscal restraint, barely audible a year ago, has a least partially regained volume," the influential Fed chief said in an apparent nod to the Bush administration's pledges to hold down government spending.
Analysts have said a fall in the value of the dollar over the past 3 years had partially reflected nervousness over record U.S. budget and trade gaps.
Greenspan said the willingness of overseas businesses that export to the United States to accept lower profits, which has helped hold down U.S. import prices, may wane if the dollar falls further.
"We may be approaching a point, if we are not already there, at which exporters to the United States, should the dollar decline further, would no longer choose to absorb a further reduction in profit margins," he said.
Greenspan said higher U.S. import prices would cut the volume of imports "but leave the resulting value of imports uncertain."
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Huh? What a joke! He said nothing. There is zero evidence of any improvement in anything on the US scene to alleviate our growing fiscal problems. As a matter of fact, there is actually evidence the situation is worsening:
NEW YORK, Feb 4 (Reuters) - U.S. inflation pressures rose in January as a result of faster growth in loans, but that was offset by slower growth in input prices, a report said on Friday.
The Economic Cycle Research Institute's Future Inflation Gauge, which is designed to anticipate cyclical swings in the rate of inflation, rose to 120.0 in January from an upwardly revised 118.7 in December, the research group said.
The index's annualized growth rate, which smooths out monthly fluctuations, rose to 4.5 percent in January from an upwardly revised 3.4 percent in December.
"The index is designed to signal the future direction of inflation, and it is clearly telling us that there is no downturn or easing of inflation in sight. This is at odds with the market's initial response to today's weaker-than-expected jobs report," said Lakshman Achuthan, Managing Director of ECRI.
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No matter. The Orwellians were ready to turn the jobs report lemon into lemonade via dollar intervention. They would use Greenspan’s comments to turn the dollar around and get the currency traders onside. It worked. Since PRICE ACTI...