Ranting Andy: Underbought, and Another Round of “Manipulation Saturation”

RANTING ANDY – UNBELIEVABLE!

Not only am I not at the gym as planned, but I’m AGAIN writing a missive at 5:00 AM due to how ANGRY I am watching the FOURTH DEATH STAR ATTACK on gold of the WEEK!  DESPITE NUMEROUS, MASSIVELY GOLD-BULLISH EVENTS SINCE YESTERDAY AFTERNOON, and after steadily rising ALL NIGHT, the PAPER gold price suddenly PLUMMETED, at exactly 6 AM EST by $50/oz, reversing nearly all of yesterday’s gain!

Readers, this has now turned into ALL-OUT WAR by the Cartel on PAPER gold and silver prices, of which supply is going nowhere while PHYSICAL demand is EXPLODING EXPONENTIALLY.  No fears, as we have reached MANIPULATION SATURATION, forcing the Cartel to dramatically accelerate the intervals and intensities of each new attack.  They are losing so badly that they, to prevent the inevitable surge past $2,000/oz WHICH WILL HAPPEN BY OCTOBER THE LATEST, VIOLENTLY ATTACKED the paper market on August 23rd-25th, September 6th-7th, and now September 9th.  However, just as was the case with my CARTEL PHYSICAL CRISIS table from earlier this summer (below), which detailed EXACTLY when MANIPULATION SATURATION from the early 2011 attack patterns occurred (in late July), these latest, VICIOUS, INTENSE attack patterns are also failing in UNPRECEDENTED short order, forcing the next wave to come even sooner.

EVENT DATE REFERENCE POINT

TIME INTERVAL BETWEEN EVENTS

D-DAY November 9, 2010 CARTEL PHYSICAL CRISIS #1

SUNDAY NIGHT PAPER SILVER MASSACRE May 1, 2011 CARTEL PHYSICAL CRISIS #2

173 days

3:40 PM SILVER PRICE SMASH June 1, 2011 CARTEL PHYSICAL CRISIS #3

31 days

OPERATION POST FED PM/OIL ANNIHILATION June 23, 2011 CARTEL PHYSICAL CRISIS #4

22 days

GOLD BREAKS OUT IN EUROS – DESTROY IT NOW! July 11, 2011 CARTEL PHYSICAL CRISIS #5

18 days

BERNANKE ADMITS QE3 COMING/PHYS OFFERING July 13-18, 2011 CARTEL PHYSICAL CRISIS #6

2 days

DEBT CEILING CRISIS PM ATTACK #1 July 19-20, 2011 CARTEL PHYSICAL CRISIS #7

1 day

DEBT CEILING CRISIS PM ATTACK #2 July 21, 2011 CARTEL PHYSICAL CRISIS #8

1 day

Once these attacks lost their effectiveness in late July, THIS is what happened to gold:

Which is EXACTLY what is about to happen in the coming weeks due to this same pattern of gold CARTEL FAILURE.  Do not take the term “DEATH STAR ATTACK” lightly, as it implies they are now utilizing UNPRECEDENTED PAPER WEAPONS OF MASS DESTRUCTION to attack gold and silver.  In other words, this is not only the BEST THEY’VE GOT, it is ALL THEY HAVE LEFT!   Sinclair’s $1,764 RUBICON was passed in August, the POINT OF NO RETURN for the Gold Cartel.  Gold’s PARABOLIC STAGE has commenced, and once MANIPULATION SATURATION of the “DEATH STAR DAYS” is met (NO LATER THAN NEXT MONTH, IN MY VERY STRONG OPINION), we will likely see another massive upsurge in gold, BLOWING THROUGH $2,000/oz like a hot knife through butter.

EVENT DATE REFERENCE POINT

TIME INTERVAL BETWEEN EVENTS

OH NO, FIRST BREACH OF $1,900 ANNIHALATION August 23, 2011 DEATH STAR ATTACK #1

POST LABOR DAY ATTACK September 6-7, 2011 DEATH STAR ATTACK #2

14 days*

OBAMA JOBS SPEECH, DEBT-LIMIT INCREASE ATTACK September 9, 2011 DEATH STAR ATTACK #3

3 days

* Note THREE separate DEATH STAR attacks required within 20 hours!      

Back to the MASSIVELY GOLD-BULLISH EVENTS that have occurred since YESTERDAY AFTERNOON, which propelled gold back up to $1,885/oz just AN HOUR AGO, threatening to take out $1,900 for good on a FRIDAY (the Cartel’s WORST FEAR): 

  1.  The Debt Ceiling, which amazingly was breached a few days ago to ABSOLUTELY ZERO MEDIA COVERAGE, was raised by $500 million late last night to $15.192 trillion, now officially above U.S. GDP. 
  2. Obama announced a MUCH LARGER THAN EXPECTED fiscal stimulus bill, of a whopping $447 billion!  Whattya know, nearly the exact amount the debt ceiling was raised just a few hours later!  And by the way, to toot my horn a little, EVERYONE said his plan was DOA, i.e. the Republicans would never agree to it, EXCEPT RANTING ANDY, who stated two days ago the Republicans would pass the bill because they are now on the campaign trail for the 2012 Presidential Election, which is all they (and the Democrats) care about.  Per a Reuters article last night:       The two top House Republicans, Speaker John Boehner and Majority Leader Eric Cantor, have already signaled they would be open to working with Obama this time around. Both say they are amenable to some infrastructure spending, as well as to a program Obama plans to pitch that would help train unemployed workers.
  3. The Euro PLUMMETED overnight while essentially ALL SOVEREIGN CDS’ and bond yields surged, upon fresh fears the Eurozone will collapse, WHICH IT WILL THIS FALL!  Hyperinflation will subsequently hit European shores, particularly in the PIIGS nations and others nearing that status, such as FRANCE.

Yes readers, these events, combined with further European stock declines (particularly BANKS, see chart of Deutsche Bank, German’s LARGEST FINANCIAL INSTITUTION, below) and lower U.S. stock futures (although as ALWAYS, to a lesser degree thanks to the PPT), combined to push gold back up to $1,885 just an HOUR AGO, before the latest DEATH STAR ATTACK….

…WHICH WILL FAIL MISERABLY, IN VERY, VERY SHORT ORDER!

Of course, the top callers are out as usual, just like after DEATH STAR ATTACKS 1 and 2 (which both FAILED MISERABLY), talking about how gold “needs to consolidate” after such a large rise.  To which I reply BULL, and this time I am now taking on some of the people I respect most, who simply refuse to give up their sacred, USELESS technical charts to “explain” why gold has broken out and why it is falling this morning.  Thus, I will not name names this time, for fear of making enemies of people I have much respect for.

I am so SICK and TIRED of hearing the word OVERBOUGHT used to describe EACH AND EVERY minor increase in the gold price, year after year after year.  When it PLUMMETS, which happens three or more times for each instance that it surges, it is never determined to be “oversold.”  However, if it rises five or ten percent, it then becomes “overbought” and, according to the all-knowing gold charts (you know, the same ones that continually show massive topping patterns that turn out to be false), is ready for a new “consolidation period.”  The list of “famous chartists” that have been WRONG in top-calling gold (not to mention those that haven’t the faintest idea how to read a chart) is quite impressive, but not their “analysis” by any means.  In fact, even insinuating that the FOUR, $50, 5-10 MINUTE attacks unleashed on gold THIS WEEK ALONE (amidst MASSIVELY gold-bullish news, to boot) have ANYTHING to do with technical factors is as insulting as it is damaging to the psyche’s of fearful gold investors the world round.  Yes, I know charts provide SPACE FILLER for paid newsletter writers looking to justify their fees, but they are DAMAGING their clients by creating misleading and irrational FEARS in their clients!

Even this summer’s “massive” increase from $1,500 to $1,900 (26%) is not that large to start with, certainly nothing to get fearful about from a technical perspective.  I mean geez, when was the last time, EVER, that a stock rose by 26% to a chorus of analysts screaming it needed to correct?  Never!  It ONLY happens in gold, for two simple reasons:  1) the MASSIVE price capping that opposes EACH AND EVERY move higher ALWAYS causes the RIGGED CHARTS to quickly become “overbought”, and 2) the siren song of unending propaganda and fear-mongering (from both the EVIL Cartel and the supposedly “good guys” that primarily want your subscription dollars). 

In fact, it still amazes me that ZeroHedge, in my view the most informative financial website on earth, is as clueless about gold trading as anyone.  I have BEGGED and PLEADED with “Tyler Durden” for months to publish my findings on gold price manipulation, which have been as OBJECTIVELY analytical as they have been CORRECT, yet he not only refuses to acknowledge them but will actually publish drivel like the following to describe a massive, OBVIOUSLY CARTEL-DRIVEN attack like this morning’s as such:

Gold managed to get back to unchanged from last Friday’s close and has now last over $50 in the last 45 minutes. Interestingly dropping like a stone to exactly the levels pre-spike on that day. Few rumors of margin calls out of Europe but nothing specific to drive this other than the levels and the opportunity for QE3-hopers to cover their weak longs from Friday? Or perhaps the rumor that the ECB did not rule out using gold-backing for EuroBonds is off the table now that Greece looks unlikely to meet its necessary debt exchange participation rates?

Really Tyler? 

An “opportunity for QE3-hopers to cover their weak longs from Friday?” 

The “rumor that the ECB did not rule out using gold-backing for EuroBonds is off the table”? 

Not only are these statement as FAR from the TRUTH as can be imagined, but I challenge ANYONE to even interpret what on earth he’s saying!  And this, from the supposed financial wizard who understands the most complex derivative transactions and all aspects of global geopolitics!

To RANTING ANDY, who became what he is by following GATA for the past decade, the ONLY organization that fully understands the gold market, there is only one aspect to consider, and one alone:  GLOBAL, PHYSICAL gold and silver demand is SOARING at an EXPONENTIAL rate, countered by a SOARING, EXPONENTIAL increase in PAPER-ONLY manipulation by the Gold Cartel (and PPT, ESF, etc.) to MAINTAIN THE STATUS QUO, a battle which will be thoroughly LOST in 2012.  Thus, readers, I implore you to use EACH AND EVERY CARTEL ATTACK, such as this one, to ACCUMULATE AS MUCH GOLD AND SILVER as possible, along with other TANGIBLE ITEMS OF REAL VALUE, such as FOOD, ENERGY, and OTHER LIFE NECESSITIES, in front of the HYPERINFLATION which will surely envelop America (and much of the Western World) when FAITH in the collapsing fiat monetary system is finally lost next year.

And one final topic regarding the topic of gold’s UNDERBOUGHT status, the one which EVERY commentator on earth  (at least in the “good guys” camp) should be discussing, but NONE are as they are usually more focused on discussing manipulated short-term charts.  And that is the pink elephant in the room, the fact that compared to GLOBAL MONEY SUPPLY CREATION and OTHER, EQUALLY MIND-NUMBING STATISTICS, GOLD AND SILVER ARE THE MOST UNDERBOUGHT COMMODITIES IN THE HISTORY OF MANKIND!

Anyone with half an ear to economics knows the DEFINITION of inflation is the increase in money supply, and since the 1980 (MANIPULATED) top in gold, U.S. M2 money supply has increased by 6.5x, and that’s just the money supply growth that is PUBLISHED (MASSIVE, COVERT money-printing is ongoing each day).  Just multiplying 6.5 by the $875 gold price from January 1980 gets you to a projected inflation-adjusted gold price of nearly $6,000/oz, a figure that excludes numerous other factors that should contribute to dramatically higher price objectives (not including inevitable HYPERINFLATION, of course), including:

Massive WORLDWIDE money printing, as gold and silver are GLOBAL markets and NOT A SINGLE CURRENCY ON EARTH is backed by anything.  Although most such data is not available, it should be quite obvious that NON-U.S. MONEY SUPPLY has gone up AT LEAST 6.5 times during this period, particularly in CHINA and other nations that OFFICIALLY peg their currencies to the dollar (and thus need to print them AT LEAST AS FAST to keep them sufficiently devalued).

The proliferation of OTC DERIVATIVES that have bankrupted the entire global financial system, currently at “notional values” estimated to have reached the QUADRILLIONS.

The addition of 2.5 BILLION PEOPLE to the world since gold last topped in 1980, a 55% INCREASE from 4.5 BILLION to 7.0 BILLION CURRENTLY!

Gold is now a GLOBAL market, with hundreds of millions of investors and institutions vying for increasingly limited supply, including ALL OF THE WORLD’S CENTRAL BANKS (except the U.S., of course, which after having sold ALL of its PHYSICAL reserves, is now SELLING UNBACKED PAPER GOLD PROMISES BY THE BILLIONS).

Readers, to sum up I am IMPLORING YOU to UTILIZE ALL AVAILABLE OPPORTUNITIES to trade your collapsing fiat currencies (dollars, Euros, pounds, Yen, and now Swiss Francs) for REAL MONEY, i.e. GOLD and SILVER, as well as other REAL ITEMS OF VALUE.  The desperation of the global financial Cartel, led by Washington, Wall Street, and London, is showing in the increasingly brazen, high intensity attacks on gold as their PAPER-BASED system is on the verge of TOTAL and UTTER collapse, which will happen MUCH sooner than nearly anyone thinks.  Each of these attacks is RAPIDLY FAILING, and pretty soon will have NO IMPACT AT ALL.

On EVERY available measure, Gold and silver are the MOST UNDERBOUGHT COMMODITIES OF ALL TIME!

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