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Friday, September 26, 2008

Goldman Sacks' Net Short Gold Position on Tocom

Goldman Sacks' net short gold position on Japan's Tocom futures exchange is now down to a tiny 627. Ready for lift off and a whole lot more?



The Fed has been disgraced with reserves around zero. There is only the US Treasury now. What happens when they hold a debt auction and nobody shows up to buy?

Wednesday, September 24, 2008

Gold And Silver Coin Minting

Casa de Moneda de Mexico, in business since 1535.








Jim Sinclair today: "There is no hope for the future as long as we have to listen to what we have experienced in the last two days. If the Fed pays �Hold to Maturity� prices in the bailout they are accepting onto their balance sheet all the lies that existed and still exists on and off the balance sheets of the banking and investment industry.

Fabrication has taken the US financial system over the cliff. The bailout of the near and dear fabricated to a spiritual level sets in cement the generational nature of this breakdown, the coming dollar collapse, and the reign of gold.

To categorize this bailout of OTC derivative manufacturers as an asset purchase is so wrong it strains the limits of criminality.

...

If the Fed pays "Hold to Maturity" prices for collapsed OTC derivatives that will never recover, that would represent an outrageous premium to their true value.

If the Fed pays what the collapsed OTC derivatives are presently worth, they could do the entire bailout for one Rupee.

You know what is about to happen. God help us all!"


****


Casa de Moneda de Mexico, still minting gold and silver coins with no nominal value numbers on them; just weight, date, and purity numbers.

Ready for the new gold and silver monetary world.

Tuesday, September 23, 2008

Gold's Reaction to US Government's Bail Out Plan

Gold, silver and other markets see the US government's bail out plan as a big over all negative.
The HUI (AMEX's gold & silver shares index) was up.





The Dow was down.






The USD dropped big time. The index was down ** 3 ** from Friday's high.








Bonds were down. The yield was too low. The market wants higher interest rates.









Silver and gold were up.






















The US's financial system almost froze up on Monday, thus the announcement of the bail out plan over the weekend. It still actually hasn't happened. The White House
is making announcements this morning that it will happen, trying to re-assure the rest of the world as well as "Wall Street", and the average Tom, Dick and Harry.











9:17AM Bush: Assured foreign leaders that mortgage plan will pass
9:03AM Paulson says his mortgage plan must hit the ground running
8:45AM Bernanke says Congress must pass Paulson debt plan

These guys are sweating bullets after Monday's market actions.

Are we in deep trouble? Come on, tell me the truth.







***


Putin calls for changing the architecture of the international financial system

20.09.2008, 17.56

SOCHI, September 20 (Itar-Tass) -- Prime Minister Vladimir Putin called for changing the architecture of the international financial system.
...

***


From the Los Angeles Times

GLOBAL ECONOMY

Europeans on left and right ridicule U.S. money meltdown

...

September 20, 2008

LONDON —

...

The finance minister of Italy's conservative and pro-U.S. government warned of nothing less than a systemic breakdown. Giulio Tremonti excoriated the "voracious selfishness" of speculators and "stupid sluggishness" of regulators. And he singled out Alan Greenspan, the former chairman of the U.S. Federal Reserve, with startling scorn.

"Greenspan was considered a master," Tremonti declared. "Now we must ask ourselves whether he is not, after [Osama] bin Laden, the man who hurt America the most. . . . It is clear that what is happening is a disease. It is not the failure of a bank, but the failure of a system. Until a few days ago, very few were willing to realize thei ntensity and the dramatic nature of the crisis."

In an interview Thursday in the Italian newspaper Corriere della Sera,Tremonti drew a comparison to corruption-ridden Albania in 1997, when a nationwide pyramid scheme cost hundreds of thousands of people their savings and ignited anarchic civil conflict.
...

Sunday, September 21, 2008

Cavuto Ready For The Word "Gold"

If you watch closely, Neil Cavuto is waiting and ready for the word "gold" if Ron Paul mentions it in this interview on Fox TV. Not a good thing for the media to be turning citizen units onto a good thing **outside** the financial system.




Almost Armageddon: Markets Were 500 Trades From Meltdown

MICHAEL GRAY
NY Post
Sunday, Sept 21, 2008

The market was 500 trades away from Armageddon on Thursday, traders inside two large custodial banks tell The Post.
...

According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization was roughly $4 trillion that morning.

The panicked selling was directly linked to the seizing up of the credit markets - including a $52 billion constriction in commercial paper - and the rumors of additional money market funds “breaking the buck,” or dropping below $1 net asset value.

The Fed’s dramatic $105 billion liquidity injection on Thursday (pre-market) was just enough to keep key institutional accounts from following through on the sell orders and starting a stampede of cash that could have brought large tracts of the US economy to a halt.
...

Full article here




Ron Paul on the Global Financial Crisis:



The primary problem is a central bank, the Fed.


Keiser: US dollar "backed by bananas"

...
"We have a treasury secretary in America - Hank Paulson. I'm afraid he's gone insane. He's become like the Colonel Kurtz of Treasury Secretaries. He's gone native. He's co-opted trillions of dollars of American taxpayers' money and he's playing hedge fund like a rogue trader. We have got a rogue trader in the Treasury Secretary's office. He's being aided and abetted by Ben Bernanke who's been discredited as the entire Federal Reserve Bank has been utterly discredited. We're looking at a possible inflationary depression in America and the worse is yet to come, much worse is yet to come."

...
"Unfortunately the fear at this point is that is that the laws have been changed. Hank Paulson has done a power grab. When George Bush came into office he did a power grab. When 9-11 happened they did another power grab. They have dictatorial powers now. So now you've got this lunatic, Hank Paulson with a multi-trillion dollar hedge fund who's basically running the economy like a rogue trader."
...


China paper urges new currency order after "financial tsunami"

BEIJING (Reuters) - Threatened by a "financial tsunami," the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday.

The commentary in the overseas edition of the People's Daily said the collapse of Lehman Brothers Holdings Inc (LEH.P: Quote, Profile, Research, Stock Buzz) "may augur an even larger impending global 'financial tsunami'."
...


We're in deep dodo, right?








*******

When the rule of law and markets are breaking down, gold and silver (the metals themselves, outside the digital system) are major protection of stored value.

Monday, September 15, 2008

US Dollar

Since 1913 the dollar has not gone below the major support level of 80-81 on the index until 2007. Now that level is resistance. The dollar, being up against it recently, looks to be backing down from it.


























Since the US dollar has probably topped, gold has probably bottomed since it is down to it trend line and 20 month moving average, not to mention the horrendously awful financial news of major US financial houses, the pillars of the US financial system.
















>Wall Street Banks Fight for Life
>
>By Francesco Guerrera, Krishna Guha, and Greg Farrell
>Financial Times, London
>Monday, September 15, 2008
...
>The Federal Reserve announced a dramatic expansion of its lending
>operations, saying it would in future accept all assets including
>equities and whole loans as collateral for loans under the primary
>dealer credit facility.
>
>It widened the set of assets eligible as collateral for loans of
>Treasuries to include all investment grade paper, and raised the size of
>these Treasury loans to $200 billion.
>
>The Fed also suspended rules that prohibit banks from using deposits to
>fund their investment banking subsidiaries.
...

Quick! Virtually anything goes now. Train you dog to write I.O.U.s. Then tell your dog to ask the Treasury/Fed if they will take them as collateral for a loan of US Treasuries.

This is grand theft / organized crime of value stored in US dollars and US dollar denominated financial instruments by holders around the world, let alone US tax payers.

"When plunder becomes a way of life for a group of men living together in
society, they create for themselves in the course of time a legal system that
authorizes it and a moral code that glorifies it." - Frederic Bastiat, 'The Law'

Gold and silver are ** outside ** of this system of plunder.

Friday, September 12, 2008

Lyrics and Poetry For The Gold Markets

...
Mirrors on the ceiling,
The pink champagne on ice
And she said 'We are all just prisoners here, of our own device'
And in the master's chambers,
They gathered for the feast
They stab it with their steely knives,
But they just can't kill the beast

Last thing I remember, I was
Running for the door
I had to find the passage back
To the place I was before
'Relax,' said the night man,
'We are programmed to receive.
You can check-out any time you like,
But you can never leave!'
...
- Hotel California, The Eagles


Ramble On
The leaves are falling all around, time I was on my way
Thanks to you I'm much obliged, such a pleasant stay
But now its time for me to go, the autumn moon lights my way
But now I smell the rage, and with it hate, and it's headed my way.
Ah, sometimes I grow so tired, but I know there's one thing I have to do.
Ramble on. And now's the time, the time is now.
- Led Zeppelin


“You got to know when to hold ‘em - know when to fold ‘em -
know when to walk away - and know when to run.
You never count your money - when you’re sittin’ at the table.
There’ll be time enough for countin’ -when the dealin’s done.”
- The Gambler, Kenny Rogers


The Gods of the Copybook Headings

...Then the Gods of the Market tumbled,
...... and their smooth-tongued wizards withdrew,
... And the hearts of the meanest were humbled
...... and began to believe it was true
... That All is not Gold that Glitters,
...... and Two and Two make Four --
... And the Gods of the Copybook Headings
...... limped up to explain it once more.

... As it will be in the future,
...... it was at the birth of Man --
... There are only four things certain
...... since Social Progress began: --
... That the Dog returns to his Vomit
...... and the Sow returns to her Mire,
... And the burnt Fool's bandaged finger
...... goes wabbling back to the Fire;
... And that after this is accomplished,
...... and the brave new world begins
... When all men are paid for existing
...... and no man must pay for his sins,
... As surely as Water will wet us,
...... as surely as Fire will burn,
... The Gods of the Copybook Headings
...... with terror and slaughter return!
- Rudyard Kipling


GOLD

I wonder if when all is done
Anyone heard my voice
But from the start we have no choice
Our journeys just begin

I'll never know if I was right
Did I fight hard enough?
When the battles grew too rough
Should I have given in?

But here I stand and swear to you
I did the best that I could do...

I know my voice was just a whisper
But someone may have heard
There were nights the moon above me stirred,
And let me grab ahold
My hands have touched the gold

My heart's been driven by extremes
Blind with dreams, tight with fear
But still God knows that I was here
And I was so alive

And now I lay the past to rest
For in the end I did my best

You have to live the life you're given
And never close your eyes
You hold on, and stare into the sky,
And burn against the cold
For any moment, you might find the gold!

And there was joy
Through it all
And I am standing tall

I know my voice was just a whisper
But someone must have heard
There were nights the moon above me stirred,
And let my light take hold
I'd rode across that sky
And once I touched the gold

Here in my own two hands
I once had the gold .....Music and Lyrics by Linda Eder


... and one joke:

Ben Bernanke, Alan Greenspan, and Jean-Claude Trichet are in the duck blind and a bird flies overhead. Bernanke looks at it and says, "Looks like a duck, flies like a duck... it's probably a duck," shoots at it but misses and the bird flies away.

The next bird flies overhead, and Monsieur Trichet looks at it, then looks through the pages of a bird manual, and says, "Hmmmm...green wings, yellow bill, quacking sound...might be a duck." He raises his gun to shoot it, but the bird is long gone.

A third bird flies over. Greenspan raises his gun and shoots suddenly, brings it down, and turns and says, "Can someone go see if that was a duck?"

Wednesday, September 10, 2008

Equities -> Dollar -> Gold and Silver

So much for a double bottom in gold. This whole gold, silver, US dollar scene is whackey considering fundamentals for the dollar are worse than ever and fundamentals are better than ever for gold and silver.

A possibility to watch for that could end the dollar's upward move and start gold and silver upward moves are US equities. The Dow and S&P are looking weak.

S & P:













Dow:













If foreigners start selling US stocks, they get paid in US dollars. They then sell US dollars to buy their home fiat tokens.

Tuesday, September 09, 2008

Gold Double Bottom?

Is gold making a double bottom today?

Gold today:











US dollar today:











The US dollar may have finished going to the upside. If the dollar starts to lose value, then people would want more of them for the same weight of gold, not that the US dollar has to loose value for gold to go up in US dollar prices.

US Dollar

The US dollar is now up 8 days in a row, an end of upward trend signal. This is bullish for gold and silver. Governments / central banks are probably going all out intervening in the financial markets, but there is only so much they can do. They do not have unlimited amounts of foreign fiat in their reserves, and gold and silver to sell.



There was a failed 2b end of upward trend signal the middle of August. Let's see if this second signal works. The dollar is up a lot when its fundamentals just got a lot worse. This sure is a whackey picture.



"Be right. Sit tight." - Jessie Livermore

Because of the nature of the banking system since 1971, the "money" pumps will break. Those without gold and silver, actual money, safe stores of value, will be in a terrible situation. In the US, it is already hard to find actual silver metal to buy dispite the low futures prices.

From Jim Willie's latest:
Achilles Heel, Shock Wave, Transformation
"...
In any newly established vacuum could quickly come new gold-backed currencies. Two are already planned, whose launch date is uncertain but clearly tied to the upcoming plan.
..."

US move triggers CDS default

"One of the largest defaults in the history of the $62,000bn credit derivatives market has been triggered by the US government’s seizure of Fannie Mae and Freddie Mac, raising questions about how dealers will unwind billions of dollars worth of contracts.

Although the $1,600bn of debt issued by the troubled mortgage groups is regarded as safe after the US government’s move to take control of the companies, their move into “conservatorship” counts as the equivalent of a bankruptcy in the credit derivatives market."

The US dollar is up for what reason? Gold and silver are down for what reasons? It's all very strange. The world is due for some big change(s). Maybe not as big as the probable Singularity a few decades from now, but still big. And, gold and silver will be a big part of these coming changes. The scarcity of actual silver metal in the US means that there are people getting hip to the change ahead.

Wednesday, September 03, 2008

New Low Gold Short Position

New low gold short position for Goldman Sachs on the Tocom exchange in Japan.

Yesterday, September 2, Goldman Sachs got out of 1,612 short contracts and added 351 long contracts to bring their long position to 1,049 contracts (a 50% increase in one session) and Voltheir net short position to 2,537 contracts (a 44% reduction in one session).

This is a new record low for their net gold short position since these statistics started being tracked in January of 2006.

Goldman Sachs is running for the hills.

Their net gold short position in the middle of 2006 was a little over 50,000 contracts. Since then, it has been trending down in a channel so that they should have a zero net short position by November of 2008 if the 2+ year long channel and down trend line holds.

Volatility can work both up and down. Is there going to be an explosion in gold and silver price to the upside?









Gold made a nice recovery on Tuesday, the yellow line, almost a "hammer" (bottoming action) on a bar chart. And, it left a nice big gap to be filled. After today, the USD is now up 5 days in a row and made an upside down hammer on the fifth day. Topping action.