Oldtent Archives 2007 - 2008

…here we go again..Gold up 6.7 silver up13 overnite market…Dollar now beow 75….

Bill,
It is a fascinating coincidence that Fannie Mae’s and Freddie Mac’s stock prices crashed on the very same day that former White House Press Secretary Scott McClellan’s statement became public that President Bush and Vice President Cheney had lied about the Plame Affair. The technically minded will point out that the stock action was foreshadowed when FNM’s 250 day moving average crossed under its 50 day ma 9 days ago. Nevertheless, I cannot help but feel that the events will be linked in history.

Fannie Mae and Freddie Mac have literally become symbols of governmental excess, manipulation and interference in the nation’s economy. Their undisclosed finances and—until today—levitated stock prices have been icons of the morass of lies that have dominated the markets. Their crash on November 20, 2007 may be a turning point politically, as well. Lying to the American public to cover up a felony was precisely one of the articles of impeachment against Richard Nixon and is a powerful precedent. Voices are already rising to subpoena Mr. McLellan before the Senate Judiciary Committee and I have little doubt that this will happen.

“The most powerful leader in the world had called upon me to speak on his behalf and help restore credibility he lost amid the failure to find weapons of mass destruction in Iraq. So I stood at the White house briefing room podium in front of the glare of the klieg lights for the better part of two weeks and publicly exonerated two of the senior-most aides in the White House: Karl Rove and Scooter Libby…There was one problem, it was not true. I had unknowingly passed along false information. And five of the highest ranking officials in the administration were involved in my doing so: Rove, Libby, the vice President, the President’s chief of staff, and the president himself.”*

For those who remember such things, the time of the Watergate impeachment investigations were an extraordinarily weak period for the dollar. Confidence in the strength and stability of the American government and its currency faltered, the newly floating dollar was persistently sold down and the price of gold rose. In May 1973, the month that the Senate impeachment hearings began, gold’s price shot up 20%. After some months of consolidation it again took off and by the time President Nixon resigned 15 months later, it was up over 50%.

If impeachment hearings become a realistic prospect—with the inevitable further public revelations of lies and cover-ups that will follow—it will be no surprise if this adds intense fuel to the fire already burning around the dollar’s reserve status and the price of gold.
Best wishes,
Peter R.

Guys both of those are great pics.  Florida — LOL, love that big bird turkey!

A sweet dream notion:

As a futures trader, I am always trying to anticipate the unexpected and to look out for where the maximum paid can be inflicted by other traders. If I was holding in the money December options (and there are quite a few in the money calls right now), I could cause the MAXIMUM pain to the shorts by exercising after the close tomorrow. By doing so I would force those traders who are short futures to run for cover on Friday which will most likely be a day with fewer participants and possibly fewer cartel members hanging around. The market will be “thin” and ripe for a run up.

MAXIMUM bang for the buck could occur Friday and/or Monday when participants are NOT expecting an early exercise of a large number of call options.

I expect something like this to occur and that alone could give us the biggest day in decades……much bigger than today’s action!
Regards,
John K

I think we’re talking about two different time frames or possibly circumstances.  In the longer run,  I agree silver is where the better gains will be made.  I was speaking in the very short term, assuming we have more financial meltdown or go into a severe recession.  In that case, I think gold will shine.  This can already be seen in the way gold has easily taken out the old high of $725 onto just shy of the old 1980 high.  Silver could hardly even muster a new high during this same period.  Silver seems to be acting closer to copper instead of gold IMO as of late.  Investors are more attracted to gold in times of monetary crisis IMO.

Goodnight, everyone.

JBI

The Hang Seng is trying to pull a “High & Mighty” tonight in the Asia/Pacific Region, but everybody else is in the RED, with the Shanghai Composite leading the way, down more than 1.5% so far.

finance.yahoo.com/intlindices?e=asia

JBI

Yes, I’d seen “Pajarito” before. He defined “wild” a whole different way. What a beast! May he rest in peace.

JBI

But they did not count on this?….http://youtube.com/watch?v=LU8DDYz68kM

I was thinkin more like…http://youtube.com/watch?v=gZmrdCqm4_c

……….loooooooong way to go! And he may be the loneliest of all times so far!

youtube.com/watch?v=EosubXzFVUg

JBI

PS - Up to $670.10 now is GOLD’s 300 DMA, another All-Time High and with the best yet still to come.

Sounds reasonable to me! 

I don’t own any of the ETF’s, just have this thought that IF the CROOKS ever want Gold and Silver — they will go to the ETF’s - take the gold and silver and leave a couple of train loads of paper.  They will do that long before they would try to go around and pick up coins from gold bugs!    Have a good evening!

Subprime Lenders .. stack the loans & ……http://youtube.com/watch?v=YU8Q0SMDhQs&feature=related

“Just think?…what if?…a couple small poor countries re-monitize silver as Money?”

First… welcome to the tent, home of the GE outcasts!  It’s nice to see you again.

I got all excited a few years back when Don Hugo Salinas Price proposed allowing silver Libertads to be used as currency in Mexico, alongside their fiat paper.  Of course the banksters would never allow that, but our old friend Tlaga made an interesting point.  If any small nation in the world allowed monetary precious metals, that country would soon be stripped of it’s metals on the world currency exchange markets… just like what  France was doing to the US in 1971 when Nixon was forced to close the gold window.

Any small nation that adopted PM currency would have to adopt strict controls to allow it for domestic use only, and prohibit export of their metal currency.  So they would have to have a two-tier currency… one for international trade only.   Without convertability to metal, the international version of the currency would surely hold a much lower trade value on the free market.   It’s a real conundrum.