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

Rising Interest Rates Signal 'Hyperinflationary Depression'

Well written article, Jeff, except you missed a few other negative economic & financial trends, are far too optimistic and failed to remind us that the American way life will be unrecognizable in a couple years as the inevitable hyper-inflationary depression unfolds.

ETFs and the Dollar: Trends Within Trends

Fiat paper currencies may have up and down trends relative to other fiat paper currencies, depending on the relative incompetence and corruption of their issuing central banks and gubmints, and one can profit from these fluctuations. However, history shows that fiat paper currencies are always on a long-term downtrend relative to commodities, especially monetary commodities like gold. It is the law(lessness) of (human) nature.

Paper money eventually returns to its intrinsic value: zero. - Voltaire

Time To Hedge Dollar Exposure

Hedge my @$$! Time to convert all fiat FRNs into real money, silver and gold. Go long on lead, "the other white metal," and delivery equipment. Get your metals now.

No paper is safe anymore. The Fed bankster cartel will destroy America, then control or sell what is left. Mad Max Bartertown economy is possible. When land is dirt cheap, sell metals and buy a small farm so you can feed your family.

The lead bulls smell lion. When the herd gets nervous, spooks and stampedes, it will be too late.

Juan McAmnesty and Hussein Osama will change nothing. Only one presidential candidate, Chuck Baldwin. understands what is happening (Fed) and what can be done (repeal). The corporate media cartel has imposed a near total blackout on his campaign and his Constitution Party, America's third largest and fastest growing political party. This speaks volumes. We now return to the regularly scheduled elephant and jackass show...

Buy when there is blood in the streets, even if it is your own blood.

Last Gasp of a Doomed Currency

Market supply and demand work (and equate at price) only under the free enterprise economic system, which can only exist under a republican (rule of law) political system. Federal gub'ment power must be strictly limited to those powers delegated by the states, or we have unlimited, arbitrary gub'ment.

Amerika is rapidly evolving toward a monopolistic, state-controlled economic system (socialism/fascism) under a democracy (mob rule) political system, which always evolves further into oligarchy (rule by the elite few). The bankster-financed career politicians in both major political parties are both responsible for this God-awful mess. They need to be fired without mercy and the Federal Reserve abolished.

Juan McAmnesty and Hussein Osama offer no change, only a choice between slow death and fast death. Chuck Baldwin, nominated by the Constitution Party (America's third largest and fastest-growing political party), offers real change, but the corporate media cartel has imposed a near-total blackout of his candidacy and party.

If we do not return to our framers' vision of individual liberty, constitutionally limited government and free enterprise economics soon, we're done. Our children will be shackled with the chains we have forged.

C. Burt Linthicum, CPA, Tampa, Florida