RANTING ANDY – Remember the movie “Stand By Me”, where four boys take a journey into the country to find a dead body? I love movies that create lines, either purposefully or by chance, that remain immortalized by time. History can be doctored, and usually is (“survivor bias”, anyone?), but literature is mankind’s true footprint.
After barely escaping death by running across a bridge with a locomotive right behind them, the boys term their experience “the all time train dodge”, as in an experience which cannot ever be surpassed in its genre.
When I write my RANTS, they are spontaneously inspired by something that forms the basis of my thoughts and tells my fingers what to type. And after what THE CARTEL pulled Sunday night, and frankly last week for that matter, nothing came into my head except superlatives regarding how far these monsters are going to protect the status quo, one in which they enrich themselves (power and wealth) at YOUR EXPENSE. One in which 400 Americans account for 10% of all capital gains, although in that case I’d bet they’ve paid off enough people that they, like Google and General Electric, pay no taxes at all. One in which bankers destroy America, but get bailed out by the people and use those funds solely to continue destroying. And, of course, one in which the value of their paper dollars pushes closer and closer to their ultimate brink.
I have watched the financial markets every day for the past 20 years, tick for tick, and the Precious Metals for the past nine (Happy Anniversary, Andy!). As the prices of gold and silver have risen, and the dollar declined, the efforts by the Washington/Wall Street CARTEL to maintain said status quo have become exponentially more brazen, and obviously more illegal. Fortunately, the “dumbing down of America” by reality shows, video games, and cell phones has accelerated at an equal rate, enabling increasingly obvious acts of deceipt and manipulation to become accepted and even sympathized with. It doesn’t hurt that the average American is suffering so badly that they no longer care what goes on outside their four walls. In fact, all that concerns them is the level of entitlements they receive, such as food stamps (now used by 14% of all Americans – wonder why food inflation is soaring?) and Obamacare.
I don’t even see criticisms anymore from former champions of truth, such as Gretchen Morgensen of the NY Times, who apparently ended her quest for truth with the piddling issue of excessive CEO compensation. Yes, we have some new champions, such as Max Keiser, “Tyler Durden” (of Zero Hedge), and Matt Taibbi of Rolling Stone, but for the most part we have turned into a nation of zombies. It is clear to me now how the U.S. has sunk so low, so fast, and although I’m praying for a renaissance of common sense, something tells me I’m not going to see it. History is, unfortunately, not on our side.
Despite plenty of coverage of such facts in the “shadow world” that I reside in, I’m sure that very few people realize the dollar index is within 1% of its all-time (supported countless times by official intervention) low, while the global commodity index is at an all-time high. Nor that REAL unemployment is three times the official figures, or REAL GDP NEGATIVE once you take out the ridiculous statistical fudging that has become the hallmark of tax-payer supported (make that printed money supported) government economic agencies. And I wonder how many people realize that gold, the most suppressed market on earth, reached yet another ALL-TIME high as recently as 20 HOURS AGO while silver did the same THREE BUSINESS DAYS AGO before the “all-time train dodge” of market manipulation was carried out by our friends on Wall Street and in Washington Sunday night.
For decades, the prices of gold and silver have been set in the PAPER futures markets run by big banks and regulated by sham organizations (paid off by big banks) such as the SEC and CFTC, which enable the Cartel to maintain its control over sentiment regarding inflation expectations and the value of the dollar. Speculators are always stupid enough to challenge the JP Morgan’s of the world by buying PAPER gold and silver, particularly based on USELESS TECHNICAL CHARTS that are continuously used against them by said banks, whom are armed (by the government) with the ability to naked short as much PAPER gold, silver, and mining shares as they’d like, with absolutely no regulation or, thanks to the aforementioned departure of American brainpower, questioning. Organizations like GATA have proven this activity repeatedly to the masses, but are still looked upon as pariahs, for those even looking at all. But alas, that’s another issue altogether.
Anyhow, the GOLD/SILVER CARTEL’s favorite game is sucking speculators in, particularly when USELESS TECHNICAL CHARTS tell them a “technical breakout” has occurred, and then ATTACKING THE PAPER MARKET at the most illiquid times of day, such as 3 am EST, 10 am EST (right after the P.M. Fix), and in the case of Sunday night, at the open of Asian trading despite the fact that most of Asia (particularly China) was closed for a holiday.
Margin increases are a tool that have been used to destroy gold and silver PAPER longs for decades, starting with the Hunt Brothers in 1980 (although then, they had to ALSO resort to a BAN ON ALL BUYING of silver on the offer). And it always works, particularly when such margin increases are set in concert with a planned paper raid that forces longs to sell, in order to meet increased margin calls. The fact that JP Morgan, the largest commodity short (silver) in HISTORY, was set to be hurt more by the margin increase than ANYONE was immaterial, as traders knew as soon as the first margin call was leaked to JP Morgan (er, announced) late Friday afternoon, as silver threatened to again break $50/oz, that JP Morgan would be immune from margin calls (they ARE the government) and that some type of major silver attack was imminent.
Silver hung in well late Friday afternoon despite that smash, closing at around $48/oz in the paper market (although prices in the REAL, PHYSICAL market were closer to $55+/oz, if you could find any supply). But little did market participants know what was planned for them on Sunday night, as China and Vietnam, two of the largest physical metal buyers on earth, were sleeping late for May Day. At about 7 am in the Asian markets, with the only news of the weekend being that the head of the Bank of Japan stated that it needed to take “aggressive steps” (money-printing) to save the embattled Japanese economy, silver opened the day by falling $6, or 13%, in ELEVEN MINUTES. Even gold didn’t move much, and the dollar didn’t budge at all. That sent speculators in leveraged futures accounts scrambling to sell to meet margin calls, and the game was on.
Then the LIKELY BOGUS news that bin Laden was killed, coincidentally just as gold had closed Friday at an all-time high and the dollar inches from an all-time low, not to mention with Obama’s approval ratings at rock bottom and even the U.S. Treasury’s credit rating under attack. No body was produced, of course, of the most important terrorist in U.S. history. One, by the way, who was trained and funded by the U.S. military and intelligence agencies, but don’t I won’t go there. If you want to pursue this course of thinking, however, watch this link from Alex Jones; http://www.youtube.com/watch?v=srNG_Q7uN74).
Anyhow, obviously the bin Laden announcement was timed perfectly for the thin Sunday Asia market (no Chinese buyers, remember), and, per reporting from Zero Hedge, was accompanied by “massive” silver sell orders with no purpose other than to run stops and create an avalanche of margin call related paper selling when the COMEX opened on Monday morning. Unfortunately, this “bullish news for America” (give me a break) not only didn’t push the dollar up, but led to it continuing its fall to new lows, and by midday yesterday in NYSE trading, gold had surged nearly $10 to a new all-time high of $1,575/oz and silver had regained 90% of its losses.
This was very, very bad for the GOLD CARTEL, so late Monday afternoon they had the nerve to leak to JP Morgan (er, announce) yet ANOTHER silver margin increase, again accompanied by an immediate crash of $3/oz for silver in the LATE AFTERNOON, POST-COMEX CLOSE, THIN PAPER markets. Throw in a dose of naked shorting GLD, SLV, and of course their favorite whipping boys the major mining stocks, and once again you get silly “news coverage” that the PM bubble is popping.
Not to mention, as always, even many of the “good guys” turn traitor, confusing their minions with misdirection, often written in hindsight (“we saw this coming”). Moriarty, Morgan, and even “wonderboy” Ben Davies (where was he years ago, when gold and silver were much, much lower?) are quick to tell subscribers that big drops are upon us, citing USELESS, RIGGED CHARTS and rhetoric, and of course not once mentioning the MANIPULATION. Anyone that listens to them are going to lose money twice, once by selling here and again by buying at the next Cartel-induced top.
And before I end this RANT, special kudos to perhaps the dumbest of all the “gold commentary” that I read this week, from the Coffin Brothers, who say that mining stock multiples are set to contract because gold and silver no longer have the upside potential that they possessed in 2000. So in 2000, when perhaps 5-10 gold miners ON EARTH had earnings, multiples peaked, huh? Come back to me in a year or two, and we’ll see what kind of multiple the group trades at. Saying multiples for gold mining stocks have topped now (absent the MANIPULATION that seeks to paint that picture) is like saying that internet stock multiples were peaking back in 1995 because internet traffic was much higher than in 1990!
Much of this RANT was written to get out aggression, but the greater theme is to IGNORE THE TOP CALLERS, who will be wrong at an accelerating rate as gold and silver continue to soar in the months and years ahead.