Oldtent Archives 2007 - 2008

www.msnbc.msn.com/id/24410809

Bill,
I just thought I would shoot a line to you on some of my musings to be aired at the café. The feasibility of these ideas is not so important as the concepts because quite often throwing out some ideas can be the necessary spark that can trigger someone else in to coming up with an actionable plan.

1) Catherine Austin Fitts at the GATA conference said we should find ways not to make financial dealings with the Cartel and its associates. Seeing what is being done to the mining shares I am kicking around the idea of the mining companies all getting together and launching their own independent exchange. This could be known as “The Investors Exchange”. NO SHORTING would be allowed on this exchange. Only buying and selling. Period. We are told by the establishment shills that short selling is useful to a market…hogwash. There is no short selling in cars, houses, boats, fine wines, paintings, time share property, etc, etc . Many mining companies manage to do Private Placements so why not go one step further and make an exchange? James Turk has managed to make a private Bank based on gold, so why can’t we opt out of the cartel run corrupt system on share ownership and trading also? Other companies from other industries could be accepted to join also. Members would then de-list from the corrupt financial-mafia run exchanges. That would certainly put the naked short guys in a spot of bother!

2) How about GATA gets with the mining companies and the GLD investors to make a class action suit against GLD. They are meant to be a “tracking stock”. If you look at their sales of bullion they are clearly “front-running” the market. Now how can a “tracking stock” possibly be front running the market? It is only possible if they “know’ what is going to happen. There would be some juicy stuff to get into in “discovery” as to how they decide when to dump MASSIVE volumes of gold on the market. Any takers? I have had enough of this corruption and theft.
Cheers
Adrian

New rigging tool coming?

Bill,
In the Fed’s war on all things revealing dollar fraud it looks like there’s a new tool coming just in time for the November election. The Nymex is planning to launch a hot rolled steel future, cash settled only. The London exchange is also setting up a similar contract. Now steel manufacturers will experience the sheer joy of getting their product smashed by illegal paper shorts in counterintuitive fashion. GM, Ford, and other auto makers should gleefully line up to assist the PPT in shorting the hell out of this cash-settled steel contract. I’m sure JPM and Goldman already have a go-to guy lined up to hit the hot rolled steel sell button on any significant data release.

Maybe too there will be a World Steel Council set up to promote steel’s value in jewelry. By the time gold hits $5,000 an ounce steel might be another precious metal.

With an RSI of 17 and salivating Indian buyers these low gold prices aren’t going to be here for long.
James Mc

Richard Russell is right on here:

Why do central banks fear gold, why do they continue to attempt to denigrate gold, why do they want to keep the gold prices down in order to make it unattractive?

The reason, of course, is that gold is outside the system. Gold doesn’t depend on any central bank or any government to bestow power on it. Gold is wealth on its own — no matter where you live and no matter what your government’s policy is. Gold means economic freedom. If you own enough gold, you’re not dependent on your government’s fiscal or monetary policies. Theoretically, you could move to another land of your choice, and your wealth and savings would not be diminished by taxes and inflation. You’d be economically free.

So in a way, the Fed, the central bankers of the world, have us all brainwashed. Everybody wonders what that powerful Fed will do next? Nobody asks about the legitimacy or the Constitutionality of the Fed itself. After all, that’s a “given.”

When the dollar was backed by gold, bankers were hog-tied in a way. They couldn’t issue currency unless they had sufficient gold to back that currency. They were captive to the gold-backed monetary system. There was no such thing as M-3 expanding at a 17% rate unless some great new source of gold was discovered (think of the California gold rush).

So has the current system of unlimited issuance of fiat money made the average American any wealthier? Your guess is as good as mine, but look what it’s done for Wall Street. Look what it’s done for the military-industrial complex. Why they’re running the country…

 Snip:

‘But Russell’s market timing is among the best of any that the Hulbert Financial Digest has tracked over the last three decades.

‘After Wednesday’s stock soufflé sagged, Russell said flatly: “Until proved otherwise, I’m going on the assumption that we’ve seen the bottom for this market. I have to think that the market has fully discounted all the bad news. The only thing I think would break this market down would be a total surprise such as 9/11 or a sudden war or something in that order.”

‘Wednesday night, Russell didn’t comment on gold’s retreat except to issue this fundamentalist fulmination:

“Why do central banks fear gold, why do they continue to attempt to denigrate gold, why do they want to keep the gold prices down in order to make it unattractive? The reason, of course, is that gold is outside the system. Gold doesn’t depend on any central bank or any government to bestow power on it. Gold is wealth on its own — no matter where you live and no matter what your government’s policy is. Gold means economic freedom.”

www.marketwatch.com/news/story/fed-leaves-bullish-newsletters-unperturbed/story.aspx?guid=%7B1DE75A40%2DD75D%2D4558%2DB592%2D924FA72C37DE%7DSnip

Will Felderhoff is CEO of Acadian mining T.ADA a small gold and zinc company out of Halifax….it was his brother that was involved with Bre-X.  They have roots in New Glasgow,  30 minutes from here.  Some of the local Docs were in on it, but I don’t think even those ”insiders” were able to sell before it all came crashing down.  Caused  quite a stir in the  area at the time, being so close to home.

Winedoc

So much for the island reversal and silver being washed out. Nothing matters when it comes to General Paulson’s agenda. He did not get to be top dog at Goldman Sachs for nothing.

By what we are seeing this morning, The General must have thrown a temper tantrum after gold soared and the DOW reversed course to the downside following the Fed announcement yesterday.

It’s the counterintuitive thing again. In free markets gold would have followed through to the upside following its $16 burst in the Access Market. The DOW would have been called a good deal lower following its late collapse. Not so. Gold gave up all of its opening gains in the pre-market calls and the DOW was called 30 higher.

Clearly Paulson sent instructions to his hit men in London to smash gold when they arrived at work, which they did at the usual 3 AM time, basis New York:

And, they were just getting started this morning…

Courtesy of Rob Kirby

And it’s not just derivatives trading that is smashing gold. The AM Fix came in at a very weak $863.50 ($14 off of late yesterday’s high), which means someone is flooding the market with physical. BUT WHO? We know that the individual European banks have pulled way back from what they are allowed to sell under the Washington Agreement. What, have they sold 3 tonnes the past few weeks, when they are allowed to sell about 19 tonnes?

My bet is that it is the US, which is what Bernanke and Brown discussed during their meeting … just one more reason why is GATA taking on the Fed and Treasury about the true status of US gold reserves.

What we are witnessing in the US financial markets continues to be beyond astonishing. The US economic news out today was lousy again (see below). Talk about a convoluted, engineered response to the data…

*Due to the disappointing US economic news, the yield on the 10 yr T note fell to 3.69%, even with inflation still higher than expected. OK, that makes sense to a certain degree.

*But, prior to the news, the euro was trashed, supposedly in some kind of delayed reaction to the Fed announcement. Delayed my butt. Orchestrated intervention is more like it. Talk about ludicrous. Interest rates come down on continuing poor news, but the euro goes way down, and the dollar up, because US interest rates are supposed to rise, or at least stay steady … because the US economy is really doing fine.

*The DOW soars … despite, among other negatives, the jobless claims rising an unexpected 35,000. Went it went down that much, the DOW took off. Then, when they go way up, the DOW soars too. As is so often the case, once the DOW soared, the market managers let the yield on the 10 yr T note rise, to 3.77%.

*And gold and silver are trashed again DESPITE:

05/01/2008 10:01 US ISM: Prices Rising ‘At Highly Inflationary Rates’

The usual, black is white and white is black.

This is why it is useful to know how The Gold Cartel behaves around key US economic numbers (a string of them today and the pivotal US jobs report tomorrow morning). 95% of the time gold is bombed around these reports. The worse the US economic number, the more the cabal leans on gold. SHOOT THE MESSENGER drill again.

This is so tedious and so obvious. Yet the children on CNBC and Planet Wall Street refuse to go there and call a spade a spade. Instead, they spend countless hours debating whether we are in a recession or not, due to technical considerations.

More hogwash. The main reason they are debating the word “recession” is for political considerations. If the recession we are now in is called what it is, a recession, then political opponents of the incumbents will use it against them in the coming Fall elections … and it will further deteriorate President Bush’s disappearing legacy.

Today’s aggressive selloff with most of Europe closed for May Day (as well as China and India), is a typical tactic of The Gold Cartel. It was probably much easier for the US to pump up the dollar versus the euro for the same reason. It is more than clear that the US ordered the price of gold down, similar to what they did in May 2006. The move is now equal to that debacle.

Call tomorrow night.  We will be having our first feed of lobster.  We will be home all evening.

Take care, back to the Penquins

Winedoc

..Mme is Out tonite….how’s manyana for a call?

….the Scumbags did go in and find there was no gold….AFTER they rode it up and sold the top…

…..good thinking…..

…glad to see you are a Vronskized Reject….you fit right in….

….come on give us a couple of your handles at GE you’d be surprised at how many wuld remember ..

Whosoever controls the volume of money in any country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not be told how periods of inflation and depression originate.” …

James Abram Garfield (19 November 1831 - 19 September 1881) was the 20th President of the United States (1881), and the second U.S. President to be assassinated. Within weeks of releasing this statement President Garfield was assassinated, after only six months and fifteen days in office.

Your bull flag on the industrials is similar to the one for 2003/2004;  I remember the silence that met my suggestion that the Industrials could go from near 11,000 to about 9700, and then move to roughly 14,000.  This was based upon the flag and the Inverse H&S Continuation pattern of which it was the right shoulder.

A move to over 16,000 is a reasonable next price objective, based upon the flag that you have shown.

I like this because the HUI advance in 2003 coincided with the flagpole of the Industrials, and its decline in 2004 coincided with the flag.  In fact the Industrials rose from April 2003 from about 7700 to over10,000; and the NIKK rose from about 7600 to over 11,000 in the same time period.

This breakout from the flag on your chart may be of similar importance, as I think both are headed higher.

MSN is the Microsoft Network.  Somebody must have noticed that my e-mail address is there as it has been has been for over a decade.  In fact, the MSN Internet connection was free when I first signed up.  Then AOL took them to court, and the judge agreed that they had to charge customers for their service. 

The article posted by EEOS earlier in the day comes from Microsoft Money which is still free.  Incidentally, my Norsk handle may be new, but I’ve been through my share of incarnations.  Vronsky banned me a half dozen times for no real reason, and my last handle here just stopped working.  I post very little as I don’t have that much to say, but the tent is now the only place I post at all.  Thanks for all the good will and tolerance here.

Looking at the 28yr chart we can see that the congestion at these levels has been a fairly new occurence. Prior to 1998 these levels of xau:gold were rarely touched. I think bre-ex did a lot of damage to pm investor psyche and the past eight yrs has been a manifestation of that. This represents a coil to my weary eyes…

As a side note, as I remember it abx bid bre-ex up all the way and then backed out nearly precisely at the top. Next thing you know people are jumping outa helicopters(perfectly good ones)

Would this be just a coincidence? not likely imo.

I hope we see three or four weekly closes above 13,000 to confirm the breakout.  Looks like summer is going to be hot hot hot!!!

Cheers, TQ 

I had a look at the three year weekly.  Three things appeared.

1.    An upper falling trendline touches the early February and September 2006 highs, and the early January, late February and late June 2007 highs - all these  highs are touched.

2.  Using the October 2007 and March 2008 highs for the upper line we can see a downtrend channel.

3.  If we ignore the early November high we can construct another downtrend fan line; this one moves through the late October high shadow; and it acts as resistance to most of the following weekly candlesticks.   Importantly, it forms a falling wedge.  What is even more interesting and bullish is that the past four weekly candlesticks have been above this line, as is the current week.  This is similar to your line on your chart, showing the falling wedge.

All these four or five weekly closes may be indicating that the back test is ending, and that the Xau may begin a move up.

stockcharts.com/h-sc/ui?s=:&p=W&b=3&g=0&id=p79169900207