Before we begin, I would like to thank everyone who participated in the lively discussion thread of the previous post. Solid, thought provoking stuff the kind of which makes this site special. I agree with most of the discussion, particularly that gold is your ultimate, certain store of wealth. I believe, though, that silver has a place, too. I've consistently maintained that gold protects your wealth while silver protects your purchasing power and the simple ability to even purchase things, in the first place. Let's hope we don't reach a point where it takes ounces of gold to fund a trip to the grocery store or gas station. Silver should fill that role.
Let's get to the charts first today before we move on to the news. First of all, the metals are trying to base and rally. Though I'm still concerned about drops to 1625 in gold and 31 in silver, we could very well have seen the bottoms on Tuesday. Why? Well look where the prices stopped. If I'd told you 10 days ago that the metals were about to be slammed into a brief "correction", where would you have thought they would bottom? Go back and look at the charts from late January and early February and you'd clearly have your answer. $32.80-33.00 in silver and 1680 in gold would seem to be obvious. Well, looky here:
If the metals are going to bottom here, they're going to need some help from The Pig. The nonsense rally from The Bernank's speech last week looks to have run its course. Could the POSX be ready to roll over and play dead again? This chart seems to suggest so:
And at the same time, you've got to figure that The Bernank would give his right arm to get the S&P back into the uptrend channel that he and his buddies at 33 Liberty Street worked so hard to build and maintain.
And crude looks to have found a floor just south of $105. Of course, having Bibi and Leon do their best Tommy Lee impression certainly helps.
OK, onto the news and there's really only one thing that I wish to discuss. It's this:
https://online.wsj.com/article/SB10001424052970204276304577265803925182234.html
Now, I'm going to warn you. If you are easily offended and do not like the use of profanity, please look away from your screen for a moment.
HOW FUCKING STOO-STOO-STOOPID DO THEY THINK WE ARE?!?!?!?!?!?!?!?!?!? THIS IS THE BIGGEST HORSESHIT SACK OF NONSENSE I'VE EVER SEEN!!
For the sake of clarity, I'm going to rely again upon my old friend, Mr. Black Dot Chronology:
So, now, here we sit. Three years of this centrally-planned fiasco and The Fed is pressed back against the wall again. Their Primary Dealers have balance sheets that are completely chock-full of treasuries and a PD cannot raise funds to continue buying even more without a) selling some of their current holdings, OR, b) getting some fresh, new cash from The Fed to use. Option "A" is off the table because selling holdings will push down price and, as you know, lower prices means higher rates and, as you know, higher rates cannot be allowed. But Option "B" doesn't look too good, either. Calling something overt Quantitative Easing isn't going to fly in an election year and, additionally, much time and energy has been spent convincing The Sheep that the U.S. banks are completely healthy and recovered. Giving them billions of dollars to spend on treasuries might dispel that myth.
So, The Fed rolls out this idea yesterday. In this new program, The Fed is going to buy bonds directly from the PDs. In return, the PDs will get "digital credits"...CASH. The PDs will then use this CASH to buy more U.S. government bonds and we are supposed to believe that because these are "digital credits" and not CASH, none of this NEWLY-CREATED MONEY will ever make it into the system. WHAT?!?!?!?!?!?!?!? Let me see if I've got this straight. The PDs will take this new money and loan it to the U.S. government which will, in turn, use the funds to cover their deficit spending on items like transfer payments, social programs and military hardware. This NEW MONEY will move directly into the U.S. economy, further devaluing the U.S. dollar and create even more cost-push inflation. Period. End of story. Done deal.
But that's not what The Wall Street Journal and CNBS would have you believe. The Fed told them that this was a "sterile" process, a zero-sum event. The Fed will exchange "digital credits" for existing bonds and that's it. Move along, please. Nothing else to see here. Again, and I apologize for the profanity:
HOW FUCKING STOO-STOO-STOOPID DO THEY THINK WE ARE?!?!?!?!?!?!?!?!?!? THIS IS THE BIGGEST HORSESHIT SACK OF NONSENSE I'VE EVER SEEN!!
But don't just take my word for it. I've searched for other opinions on this. Let's try these two:
https://truthingold.blogspot.com/2012/03/its-all-in-spin-baby.html
https://www.jsmineset.com/2012/03/07/no-captain-at-the-monetary-helm/
Anyway, it's quite clear that the lies, obfuscation, manipulation and MOPE will never, ever end. You must continue to buy and hold physical precious metal. It is your only financial protection and against the certain, impending disaster that your "leaders" have created.
Lastly, you should be sure to read the latest two entries from Eric King's mysterious "London Trader". Whoever this person is, he/she has a track record of being pretty accurate so it would be worth your time to check it out.
That's all for now. Have a fun day! TF
