Burticus

Precious Metals: Breakout, Fakeout or Shakeout?

I agree with LR. Regarding (3) a shakeout, I thought I just saw a huge one over the last year, since August 2008?

As JPM said, "Gold is money. Nothing else is" (except silver). Gold and silver do not change. Honest men have used them to store their wealth for eons. Only the paper/electron currencies change and they all just went down vs. gold, as they always inevitably do over the long term on their way to their intrinsic value of zero.

The markets? Wall Street fraud king banks are all insolvent zombies, yet while loan defaults and the derivatives death star loom, share prices soar. S&P P/E ratio is stretched over 100 to 1 even with fake earnings thanks to FASB sellouts. Gangsters running gubmint, printing/keying more fake money, handing it to their pals, skimming 100 million daily using computer trading and front running with the exchanges. CFTC pummels oil longs while banksters short 200,000 gold and 40,000 silver contracts. China revolting against the UK-US bankster cartel, frantically swapping FRN$ for resources, doing currency swaps, stockpiling gold, promoting silver, its stock market tanking again, saying bleep you on contracts "hedging" aforementioned silver shorts. Hahaha!

October stock market crash to new lows seems imminent to me, even with prices propped up by money printing and porkulus/scamulus.

After the stock ring is piled high with towels, starting late October to November, those who stampeded to "safety" of FRNs, Treasuries and bonds, will get vaporized in the dollar collapse through 2010. Real gold and silver (not paper) will be the only things left standing among the crispy critters in the twisted smoking wreckage.

Fundamentally, technically, interventionally (?), I would not want to be short silver or gold right now, unless I could create money and steal the metal to cover my positions.

Disclosures: Long physical gold, silver, steel, lead, food, rope

U.S. Government vs. the Stock Market

From the International Forecaster 2/7/09:
"Obama's stimulus plan, aka the Political Payoff Plan or PPP, together with the second half of the TARP, aka the Paulson Ponzi Plunder Plan or PPPP, will deliver a shot in the arm to our economy that will be both brief and shallow, sending us careening on our way to hyperinflation, which will deepen the depression we are already in by sending interest rates skyrocketing and killing off what little business activity remains. Interest rate swaps, with notional principal in the hundreds of trillions, will also implode at that time, administering the coup de grace to the world economy and financial system from which the Illuminati hope to form their one-world government, economy, currency, feudal society and religion.

The Illuminati may use the brief upsurge derived from the PPP and the PPPP as an opportunity to complete the Big Sting Two, where they dump their dollar-denominated paper assets in favor of tangible real assets via dark pools of liquidity and unregulated OTC markets out of the view of both regulators and the public, leaving all the non-insider sucker-dupes holding the bag full of the worthless fiat currency known as Federal Reserve notes (aka toilet paper) or paper assets denominated in such. Dollar surplus nations who are tight with the Illuminists will be allowed to go on a spending spree and join in on the fun by spending their once-sterilized dollars, and this will then very seriously aggravate an already deadly bout of hyperinflation. You won't know about what these other nations are doing, however, because the Illuminist-controlled FTC no longer publishes figures about foreign investment in the US. How incredibly convenient.

When the Big Sting Two is set into motion, gold and silver will then go on a moon-shot, and if you don't own any, you will be financially vaporized, and join the ranks of the other crispy critters who were too dumb to recognize that gold and silver are the only real money in this world."