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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 - Start Watching The Fed's Fiat "Dollar" More Closely For Clues 0 comments
    Mar 15, 2014 10:37 PM

    Saturday The Ides of March 2014

    For the past several weeks, our commentaries have dwelled on
    factors unrelated to what so many other writers have focused,
    primarily demand from a variety of sources, shrinking supply of
    physical at COMEX and LBMA, lots of charts and graphs to make
    interesting presentations, but none of those factors have been
    instrumental in moving gold and silver to higher levels. Our take
    has been the suppression of gold and silver has come from the
    elites running the central banks, and by extension, all Western

    There are battles being waged deep behind the scenes, not being
    made public, but visible based on developing world affairs, if one
    wants to connect dots without concrete proof. Ukraine is the latest
    prime example. The Western central banks are attacking Russia in
    desperation to protect failing energy sources and survival of the even faster failing Federal Reserve Note, more commonly accepted by a
    different name, the "dollar."

    It appears Cyprus was more of an attempt to freeze or capture
    Russian deposits from its gas/energy revenues. It was primarily the
    Cypriots who suffered, for little to none of the Russian deposits were
    confiscated. Ukraine is another front, pushed by the elites through
    their operative agents to stir up unrest and attempt to have Ukraine
    join the EU, even though Ukraine would suffer financially. The West
    is trying to prevent Russia from having easy access to its gas
    pipelines sending energy west to Europe.

    The US recently released some of its oil reserves onto the market,
    causing a sharp drop in oil prices. Ostensibly, the action was to test supply channels, etc, but in reality, the elites are doing what they
    can to prevent Russia from reaching the $110 per barrel it needs to
    maintain its economy. This is aggressive oil warfare, and it is surely
    doomed to fail, just like every other clumsy Western attempt to try
    an maintain its flagging supremacy.

    The amount of Treasury bonds Russia holds, and China has an even greater amount, can be used to cause more dramatic harm to the US than the US could ever hope to damage Russian influence. Case in
    point is the chart from the Federal Reserve that shows how foreign-
    held bonds are being "cashed in."

    There was an increase to $104.5 billion in Treasury sales from
    foreign sources, [wonder who could be selling?], when the average
    weekly sales are $46.6 billion. Someone is sending a very strong
    message to the US that undermines the fiat "dollar." In the larger
    scheme of things, this is a real shot across the bow, and more of this
    kind of action will be taking place in the future.

    (click to enlarge)

    An interesting question is, who did the buying? The Fed, of course,
    even though it may try to divert the purchases elsewhere, like it did
    in Belgium, recently. There is also the more likely circumstance that
    the Fed took in the bonds, [it had to], but kept them off the books.
    The bonds do not have to be paid until maturity, so the Fed
    postpones having to put up any more digital fiat,and as to interest,
    it does not have to pay any to itself.

    This is how the "vaunted" Fed operates, more like taking pages from Zimbabwe's play book...print, print, print. Obama, the Fed, and the
    elites need a way to cover their paper asses being pressed to the
    mat. What gets lost in all of this is gold.

    Gold and its control is the undercurrent behind everything that goes
    on. Control has been, and continues to be lost by the Western central bankers. What few people know, and what even fewer people are
    capable of grasping, is the extent to which the elites control every
    aspect of life in the Western world.
    Certainly they control all of the
    money. They also control world drug trade. [Ever wonder why the
    US is really in Afghanistan?] They control all corporations. They own
    every stock traded on the NYSE. Every aspect of the media, print,
    television, radio is under their control. The medical profession and
    pharmaceutical industry, education, travel, all forms of government,
    all controlled.

    One thing that has not changed is the Golden Rule. He who holds the
    gold rules. The transition of physical gold from West to East is
    disrupting the elites domination of the entire financial world. The East has been saying, "Enough is enough." What no one knows is how this
    will all unfold.

    One thing is certain: America has become a Third World country,
    liberty lost, economy failing, joblessness growing, homelessness
    growing, children as bad off, some worse than in recognized Third
    World countries, increasing dependence of the population on federal
    assistance, a growing police state, the NSA destroying all privacy,
    maybe even the internet. Life is about to get much worse in the
    United States.

    We have been advocating the purchase of physical gold and silver,
    at any price, for well over a year. Smart people have been doing
    exactly that. Those less certain have been concerned about the lower prices for their holdings of gold and silver, which totally misses the
    point. If your house drops in value, are you going to sell it? Stay
    focused and remain committed to the ongoing accumulation of the
    physical PMs. Stay on the side of history with a proven record of
    wealth preservation through the ownership of gold and silver.

    Changes are coming, and the momentum will grow to the point of
    being irreversibly up in the direction of gold and silver. In the
    process, there will be destruction of all paper assets and increased
    panicky government controls to steal whatever it can from people.
    FDR did it in 1933 when the elites had him trick the public into
    turning in their gold, even though no one was lawfully obligated to
    do so.

    Never lose sight of the fact that there is a huge difference between
    your country and the government that runs it. Governments that run
    countries ruin them, and the corporate federal government does not
    have the people's best interest in mind, at all.

    Back to gold and silver. Those who own physical gold and silver are
    doing the right thing and positioning themselves to at least have
    more choices as the corrupt federal government continues along its
    path of financial destruction. Just keep buying, when and as one can,
    and never let go of them from a lack of confidence.

    There may be opportunities developing in the futures markets for
    gold and silver, at least for as long as the exchanges remain viable,
    and that, too, will change.

    A key to watch more closely is the fiat "dollar." It seems to be
    weakening, and that is the unyielding intent from China, Russia,
    parts of the Middle East, remaining BRICS nations, and eventually
    even turncoat partners like Great Britain and Germany. The latter
    two are not going to allow themselves to be sucked into the fiat
    paper vortex in which the US is inexorably heading.

    The last two swing high rallies failed to reach a 50% retracement, a
    general sign of weakness. Price is near important support. The more
    times support is retested, the more likely it will eventually break.
    The daily shows that possibility somewhat more.

    It should be added, that even if 79 - 79.50 breaks, there is still
    important potential support at 78.

    DX W 15 Mar 14

    The current developing market activity is different from when price
    was at this level in late October 2013. The ranges at the low were
    smaller, and the ensuing rally was strong and fast. Currently, the
    ranges are larger, the closes generally weaker. Breaking the 79
    area should propel gold to higher price levels, possibly challenging
    the 1450 area.

    DX D 15 Mar 14

    Something has been going on with gold as it refuses to break even
    for a "normal" type of correction lasting 1 to 4 days. Given how gold
    has previously been "beaten" down, almost with impunity, it was
    hard to trust the rallies, especially as price approached what looked
    like potential levels of resistance

    Bearish spacing still looms, but as gold continues to build a base, it is
    just a matter of time before it disappears.

    GC W 15 Mar 14

    What looked like potentially strong resistance at the 1360 area
    turned out to be a mirage as price sliced right through. Friday's mid-
    range close is also a function of the lower price "fix" close, as gold
    had been trading a few dollars higher. In futures, fixes are

    A correction in up trends is normal, usually lasting 1 to 4 days. A
    logical support for any correction would be the 1355 - 1360 level.

    GC D 15 Mar 14

    Relative to gold, silver was operating in a different realm. Its
    development has always been more compact than gold since the
    highs. While silver did not participate in any strong rally over the
    last few weeks, it is still developing in a positive way.

    SI W 15 Mar 14

    There is the possibility that silver may not retest 20.50, again, but
    wherever the next reaction takes it, if it develops in a way that
    shows buying potential, it may be well worth taking a long position
    in futures.

    SI D 15 mar 14

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