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Gold And Silver - Prospects For Both From A Russian POV

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