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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • Gold And Silver - Central Bank Death Dance, Part II. Good News/Bad News. 0 comments
    Oct 5, 2013 11:18 AM

    Saturday 5 October 2013

    Last week, we began an article on the Central Bank Death Dance, and
    made it part 1, [here]. The main premise we want to address is why
    the broadly known demand factors for gold and silver are not being
    reflected in higher values.

    People are not asking the right question[s] in determining that
    answer. What few are considering, or may not be aware of, is the US
    government defense of its fiat currency. Part 1 attempted to put the
    fiat Federal Reserve Note into its true context, for its defense is what
    keeps gold and silver at purposefully suppressed levels.

    The entire Western world has its fiat teat caught in a financial ringer
    from which it will never extract itself at the expense of non-banking
    businesses and the man and woman on the street, all of whom will |
    suffer badly. To allow gold to rise in value exposes the fiat sham being perpetrated by all Western governments. They will not let that
    happen.

    Right now, the federal government has become isolated by the fast-
    rising Eastern powers, most notably China and Russia, along with the
    other BRICS nations. They have had it with the US exporting inflation
    to the rest of the world, via the petro-dollar as a world reserve
    currency, and the endless issuing of Treasury Bonds, bonds which
    have become toxic and are being avoided by the BRICS countries, and
    soon even Europe, already under water with them but still in bed with
    Western central banks as the [mis]guiding forces.

    The US is losing the war against Russia for supremacy in supplying
    energy to Europe. Gazprom is the largest energy producer in the world, yet few in America know of it. Russia seeks to be the energy supplier
    for Europe, and that would end the dominance of the US petro-dollar,
    aka world reserve currency status. Losing that status puts the US
    into the Third-World status it has already entered, starting well over
    a decade ago.

    The US has no place to turn to sell its [unwanted]Treasury Bonds
    because the BRICS nations are now using non-dollar denominated
    contracts, cutting the US out of the picture. Enter China, and the rise
    of the petro-yuan. China will become the world's largest oil importer
    some time next year, and it has already become Saudi Arabia's largest
    customer. China is converting its huge oil imports into the Yuan, not
    the dollar.

    More and more countries are setting up currency swaps with China, including the UK! Even the US' closest ally is forming
    important financial links with China as it becomes more and
    more financially isolated. More on the UK?US relations in a moment.

    In the entire world, which government is the only government beating
    the drums for war? The regime led by a Nobel Peace Prize winner,
    Barack Obama. Why has he been so desperate to bomb Syria?
    Because of a few hundred deaths from chemicals, versus the
    hundreds of thousands of deaths caused by the US in it use of
    chemical warfare? That is a "chemical" smoke screen to hide the
    more [poorly]calculated reasons.

    Syria is the last link for Iran's natural gas pipeline that leads to
    Mediterranean ports. Qatar and Iran have a joint deal involving natural
    gas. Russia has been building massive amounts of pipelines to serve
    Europe, China, and all the former USSR countries. The US is being cut
    out, entirely, and once Syria goes with Russia, the US [FRN]dollar is
    done, as is the US, increasingly becoming financially crippled.

    Because Russia now supplies energy to Europe AND the UK, one need
    not wonder too much why the UK decided not to back the US in
    bombing Syria. While the Peace Prize regime has been doing
    everything possible to start a war with Syria, it has been totally
    out-maneuvered by the Russian president, making Obama look like a
    rank amateur in the game of political chess. Where Japan was a
    country of the Rising Sun, the US has become a country of the Setting Sun.

    Always, always follow the money. It is always about money, for
    money is the lifeblood of the failing central banking system.

    China, Russia, BRICS nations are setting up their own trade policies
    which do not include the increasingly isolated US, fast becoming a
    financial pariah, and these Eastern-led countries are going to use a
    gold-backed contract, in all likelihood. This is the kind of
    information one does not read about in the bought-and-paid-for-main-
    stream-media, but for many of the reasons cited above, the fight for
    survival of the fiat dollar is why central bankers are keeping their foot
    on the gold/silver suppression pedal.

    This is the good news and bad news. The good is recognizing the
    forces of financial evil are doing everything possible to suppress PM
    prices, which means when those forces eventually fail, gold and silver
    will soar to new levels. The bad news is, no one knows for how long
    these forces will continue to exert control.

    Some are counting in months. We continue to lean more in the year[s] camp, for these forces maintain enormous financial control over
    everything, and that control will not be easily given up, for it would
    mean the end for central bankers.

    The Death Dance continues to unfold. It will get uglier and much
    worse before it ends. The fiat "dollar" is wearing no financial "clothes,"
    but most of the watchers seem not to notice, or care. Those who
    care do not matter, while those that matter do not care. In the end,
    it is all about taking personal responsibility and acting responsibly.

    When the end comes, it will be fast and furious. Those who failed to
    act and those who acted too prudently for timing will miss out. No one
    knows the when, but if it is months or years, what we know for certain is regardless of the when, we are prepared, even if it were tomorrow.
    Do you have your gold and silver safely in hand? Get more while the
    getting is good. You never know when when will strike.

    The charts continue to tell a story, even if it is an artificial one. The
    story told is not very compelling, but it addresses the reasons why
    gold has not risen in value relative to the incredible demand. The
    information outlined above is the flip side to the incredible unseen forces at work on the "supply" side, and ones that still have
    the upper hand.

    The trend remains down, and there is no evidence of concern that
    Bears are in trouble. The down trend has weakened, a little, but it has
    not ended. As long as gold remains in this condition, expectations for
    sharply higher prices will not be realized.

    GC W 5 Oct 13

    Mention has been made several times how wide range bars tend to be controlling for several bars of the same time frame moving forward.
    The mid-September bar has been controlling up to the past week,
    maybe more into next week. Both wide range bars show poor closes,
    and the last three TDs show a lack of demand.

    Now into four months of a sideways TR, we need to see buyers show
    demand with wide range bars to the upside on increased volume. Until that happens, sellers retain the edge.

    GCZ D 5 Oct 13

    The dominating feature on the weekly chart remains the gap from 10
    August, and we drew attention to it immediately for its potential
    importance, [See Fundamentals Never Say "When." Charts Do, 4th
    chart]. The high-end close, after a retest of gap support makes a
    positive statement. There is a clustering of closes, and silver may be
    near a turning point, if buyers can step it up. Sellers are not showing
    a strong presence, so it is opportune for a rally if buyers can take
    advantage.

    SI W 5 Oct 13

    The farther price moves along the Right Hand Side, [RHS], of a Trading Range, [TR], the closer price is to making a directional resolve. The
    fact that the current TR is on top of the TR from June through August
    is a positive development. Buyers need to create wide range bars to
    the upside, on strong volume, otherwise, expect more of the same or
    even lower should buyers be unable to defend this TR.

    SIZ D 5 Oct 13

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