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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 - Prospects For Both From A Russian POV 0 comments
    Apr 26, 2014 12:08 PM

    Saturday 26 April 2014

    [POV = Point Of View]

    One of the biggest problems for the West, the US in particular, is its
    increasingly parochial perspective from the narrowest of lenses, fully colored by the elite's use of its main propaganda machine, the
    Maintstream Media. It will not work for people to expect more from
    their government, rather, people have to demand and expect more
    from themselves, for in the end, people will discover all they really
    had to rely upon was themselves and failed to do so.

    All of the information one needs to make more enlightened decisions
    is out there. One has to change their broken habits of spoon-fed
    expectations from local news and take a more active role in seeking
    the truth. In a nation that relies upon a police state, increased
    militarization, and NSA [STASI] spying on its docile population, one
    cannot expect to hear truth, only lies, and the Obama administration
    is certainly delivering them.

    Ask yourself, what is your impression of Russia, of Putin? Then,
    consider the following information about both. Never in the history
    of the world have [mostly] Western central bankers issued anything
    but worthless paper currency, backed by nothing, controlled by
    unelected bureaucrats, and none beholding to nor responsible for
    citizens of a nation, your neighbors and everyone you may know.
    This is the world in which most of you live without challenging it.
    Others, outside of the Western sphere of central banks, with a firm
    grip on their respective governments, refuse to remain a victim of
    the West's inflationary degradation via fiat currencies and the rot-
    from-within they generates.

    Who has been the champion prodder of the Ukrainian situation? The
    United States, led by its teleprompter-reading corporate president,
    Barack Obama. What has he done? Threatened economic sanctions,
    provided neo-Nazi thugs to continue to stir unrest, steal, or remove,
    if you prefer, all the Ukrainian gold in the middle of the night, and
    drain the country of billions of dollars, transferred to Swiss banks.
    Are any of these moves in the least bit constructive, let alone
    justifiable?

    Putin's response? Aggression to match aggression? No. Just patience, waiting as events that are doomed to fail play out. While Obama
    does what he can to stir up a hornets nest in an area of the world the US has no business in interfering, Putin is allowing Obama to take as much political rope as he needs to hang himself. In the meantime,
    Putin is busy putting together deals with other countries, and its
    natural gas deal with China in the works will be a game-changer for
    Russia. All of the deals made and those in process will bring income
    to Russia as a nation. What kind of income?

    More rubles, some yuan, maybe even some gold. Totally absent is
    the use of the dollar
    as the disappearing world reserve currency.
    Putin is taking his job of running a country seriously and responsibly.

    Putin spurns Western central banks and continues to strengthen the
    ruble. He makes deals with other natural resource-rich countries.
    Obama invades oil-rich countries. While Obama pushes for war on
    the other side of the world with Syria and Ukraine, Putin is busy
    making deals on the other side of his world with Obama's ignored
    neighbors, Mexico and Latin America. While Obama allows the Fed
    and Wall Street to continually suppress and disparage the gold
    market, Putin is building Russia's gold reserves. No fiat ruble over
    there.

    What has Obama done to help strengthen the US financially? Nil, and
    to the contrary, he has increased government spending, with no
    means of ever repaying it, and he has worsened the plight of millions and millions of Americans through his enrich-insurance-companies
    scheme at the expense of leaving people without affordable
    insurance coverage.

    Most Americans have never heard of Russia's Gazprom, yet it dwarfs
    Exxon and Mobil in size. In anticipation of Western sanctions,
    Gazprom secured natural gas deals with China. If Gazprom never
    sold another energy unit of natural gas to the West, its bottom line
    will continue thrive with its natural gas sold to the East. Further,
    Gazprom will now only sell their product using rubles, yuan, and
    gold, no petrodollars allowed.

    The Russian banking system has responded to the West's petty and
    of no-effect sanctions by raising a one-finger salute to the West.
    Russian banks have stopped using the dollar and have adapted total
    reliance upon its own ruble, intent on having the ruble become a
    part of any new global currency. US banks continue to entrap citizens with debt-forever fiat. Russia has the second largest gold reserve in
    the world. US is the highest debtor nation in the entire world. The US has always had a fondness for being number 1 in everything.

    The fact that Russia has rejected the dollar in every way, coupled
    with another fact that it will only transact its gas and oil trade in the
    ruble will have an impact on the US and the West more than any
    sanctions Obama can ever hope to [under]achieve. As a consequence
    of pushing Russia away from the [totally failed] Western banking
    system, the US stands to lose trillions of fiat $ in return. It is not just
    Russia. All of the other BRICS nations are following suit. The US and
    the central banking system is committing seppuku, [hari kari],
    financial [self-imposed] disembowelment.

    Still think of Russia as an "evil empire?" Here is a quote from one of
    Russia's members of Parliament on the US and its fiat:

    "The dollar is evil. It is a dirty green paper stained with blood of
    hundreds of thousands of civilian citizens of Japan, Serbia,
    Afghanistan, Iraq, Syria, Libya, Korea, and Vietnam. Our national
    industrial giants will not suffer any losses if they choose to make
    contracts in Rubles or other alternative currencies. Russia will benefit from that. We should act paradoxically when we deal with the West.
    We will sell Rubles to consumers of our oil & gas, and later we will
    exchange Rubles for Gold. If they do not like this, let them not do
    this and freeze to death. Before they adjust, and this will take them
    three of four years, we will collect tremendous quantities of Gold.
    Russian companies will at last become nationally oriented and stop
    crediting the economy of the United States that is openly hostile
    to Russia."
    Source: Izvestia newspaper

    What of he US ally Germany? Guess where Germany will turn when
    push comes to shove? East! It has vastly important financial ties with Russia. Germany's ties to the US? Mostly fiat and highly
    objectionable NSA tentacles covering the country.

    Israel. Surely the staunchest US ally? Well, it turns out that the US
    worsening of events in Ukraine are a threat to Israeli security. Israel
    has its own floating Tamar natural gas platform, and it has made a
    deal with Gazprom to export the liquified natural gas.

    How much of any of this has anyone read or heard about from
    government-controlled mainstream media? Not a peep, not a
    sentence. The elites want US citizens to remain dumbed down, and
    US citizens are complying in utter ignorance and steadfast refusal to
    consider any alternative news sources. Reliance upon the total
    control over the corporate and bankrupt federal government's
    newspeak is the elite's goal.

    At the outset, we said people need to expect more from themselves
    and take more responsibility for their own lives. Reliance upon any
    government is a trap from which there is no escape.

    We have not even covered all that can be covered re Russia and
    Putin, or Obama and the federal government, for that matter. We
    have not even touched China, India, the growing BRICS nations as a
    power unto themselves, totally outside of and separate from the self-
    toppling United Sates.

    The acronym BRICS brings to mind the story of the Three Little Pigs,
    making houses of straw and twigs that failed, [fiat], with the safest
    being the one built of brick. The BRICS are using a lot of gold in
    building their financial ties together.

    None of this addresses timing, but the message is clear: financial
    integrity and strength is relying upon gold, in some large degree, as
    a standard, at least indirectly. The message should be the same for
    us all who endeavor to withstand the inevitable fall-out from fiat
    currencies destroying the Western financial system. The East, parts
    of the Middle East, and even Central and South American countries
    are accumulating gold. There is no concern about gold going lower or even not going higher, for now. The end-game is not the short-term
    price, it is for where gold will seek its natural price level once freed
    from Western central bankers and to not be caught holding nothing
    but value-lost paper.

    On a side note, the elites are not stupid. It is likely that they may
    even be orchestrating the demise of the Federal Reserve Note
    "dollar." The direction may have been intended to replace the
    "dollar" with another fiat issue, like an SDR, [Special Drawing
    Rights], to be issued by an all-controlling, non-elected or
    representative government, like the BIS, [Bank for International
    Settlements], or some similar elite organization. What was not
    anticipated, during all the decades of planning, was the rise of the
    East and the use of gold as a measure of currency control.

    Last week could have been an important anchor for a turning point
    in gold and silver. The comments on the weekly chart cover a lot of
    ground. What can be added are the observations labeled 4 and 5.
    Both are directed at the level of volume. The area marked 4 shows
    increased volume as price rallied. On the current correction, volume
    has dropped off. This tells us that the selling pressure is not there, as it used to be.

    The gold price is also respecting, albeit loosely, the half-way
    correction area between the recent swing low and swing high. In
    somewhat of a down market condition, that is a good showing. Gold's failure to decline to the lower channel line is an indication of strength.

    GC W 26 Apr 14

    The daily gold chart is confirming observation made on the weekly,
    but with more detail. What was not covered in the chart comments
    was the thin line at the half-way measure of the down sloping
    channel. Whenever price can hold the half-way point of anything, it
    is taken as a relative measure of strength

    GC D 26 Apr 14

    Silver is a test of one's patience. All purchases made at current, even slightly higher, prices will be viewed as gifts and wise moves
    sometime in the future, be it later this year or into 2015/2016. When silver finally does rally away from its [very constructive] support
    zone, purchases made at any higher price in the past few years will
    look like bargains.

    The way the charts are setting up, even purchases in the paper
    futures market now have a diminished downside. What cannot be
    known is when a move to the upside will make any such buys
    worthwhile from a profit perspective.

    SI W 26 Apr 14

    That high volume spike should loom as important, moving forward.
    As with gold, it may be an anchor for establishing the low point for
    silver, too. Similar to gold, silver has kept just above the half-way
    area in its down channel. In this last correction, silver did not even
    come close to reaching the lower channel live, as it did in late March. Last week's close has it bumping up against the upper channel line
    very soon after the last challenge just two weeks ago. This is a
    positive development within a negative down trend.

    On an ending note, last week, mention was made of Gann and the
    Cardinal Grand Cross, an astrological significant time frame. It all
    ends with a solar eclipse on the 29th. [See
    Gann, Cardinal Grand Cross, A Mousetrap And Wrong Expectations,
    if you did not read it.] It is just interesting to see how both gold and
    silver can be potentially bottoming at the same time. From our
    unwavering point of view, price and volume remain the most
    reliable guides and source of market information.

    SI D 26 Apr 14

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