CC_Gold

Wells Fargo, JPMorgan and Bank of America: Stock Prices Can Double

Thank you for being so bullish on the banks and financials! Please buy a much as possible and run the price up into the stratosphere.
When it crashes again, please note that I'm the one who took all
your money. Please keep leading the sheep to the slaughter house with your crack pot theories on eps and taxes. Not a single person
has mentioned the root cause of problems with the banks or financials. I will give you a hint. What happens when the dollar index falls below 72 or rises to 84. How much nominal value is your stock worth. Your basing valuations on a stable/fixed currency at one given point of time. Let's not get fancy. Banks trade phantom money. Nothing more nothing less. You already got one get out of free jail card on Friday. Did you know the dollar index went from 75 to 82 in after hours trading on Friday after you were already home laying on the couch. ICE had to step in and nullify all trades. Your bank and financial stocks would of been annihilated.

Chart of the Day: Strong Breakout For Gold

Slvrizgold hit the nail on the head with SILVER and GLD. The current Gold to Silver ratio stands at 59. Look for that number to drop to 30 to 40. If Gold reaches 2,000, then Silver will be 50 or more. The price of Gold is going to grow extremely volatile with 100 dollar points swings daily. If you own GLD, be prepared to get burned because most of the paper Gold is held as derivatives and is leased out on the Comex and LBMA. Also, wait until the bullion banks are forced to cover their naked short positions. Can you say 10% premium plus a possible force majeure?

The Economic Recovery That Isn't

MinAkkar20 -

Thanks for the help. It just didn't look right and I was only on my first cup of coffee.

Ugly Jobs Report Puts a Dent in V-Shaped Recovery Scenario

I need some help deciphering the London Bullion Market Clearing stats page. I know this is off topic, but I need some additional brain power. Please go to this website:lbma.org.uk/stats/...

Look at the July 09 and August 09 silver clearing numbers and level them against the numbers going back to 96. Also, look at the July 09 and Aug 09 Gold numbers. Did they totally mess up these numbers or is there something else to it? Thanks for your help.

The Economic Recovery That Isn't

I need some help deciphering the London Bullion Market Clearing stats page. I know this is off topic, but I see most of the brain power reads Peter's articles. Please go to this website:www.lbma.org.uk/stats/...

Look at the July 09 and August 09 silver clearing numbers and level them against the numbers going back to 96. Also, look at the July 09 and Aug 09 Gold numbers. Did they totally mess up these numbers or is there something else to it? Thanks for your help.

Market Outlook: Expect a Replay of 1965-82

This was a good article because it made me think. Your comparison from 1965 to 1982 is correct when you divide the USD index against the DOW/S&P. Now if you divide Gold against the DOW/S&P during that same time frame, you will clearly see 1925 to 1939. It is the classic tale of two cities.

Today in Commodities: Perception Isn't Reality

HA HA HA $40 an ounce.

Is Barrick Responsible for $1,000 Gold?

I totally agree with Kybl! Read Antal Fekete's article on what's really going on. There dehedging plan is nothing more than a ponzi scheme. They are naked short 9.5 million ounces! The capped price of gold at 1,000 dollars is to costly and can no longer be defended.
Physical gold is no longer traded. Only paper derivatives. Watch and learn a valuable lesson in the coming weeks and months. You are going to be shocked and awed at what you are about to witness in regards to gold and silver.

More Support for Gold's Bullish Outlook

The long term chart is displaying an inverted head and shoulders formation, but the bears are calling it a triple top. The left shoulder started forming in Jan 08 and completed on 5 Aug 08. The range bound price average was 975 (high) and the low average was 875 and lasted for 8 months. The inverted head formation started around 6 Aug 08 and finished around 15 Jan 09 and completed after 5 months. The right shoulder started around 16 Jan 09 and finished it's formation last week. The range bound price was 975 (high) and the low average was 875. The formation concluded with a triangle breakout upward which points to a price around 1,200.
If you are a bear, a retest failure at 1,033 or 1,061 would trigger a target price between 675 and 850. Once the low target price is reached, a retest of the highs would be imminent within a year.
At this point, I'm 60% Bull and 40% Bear. The bullion banks and governments still have firepower left with fiat dollars and derivatives, but this is changing. Give them between 6 to 12 months and they will be out of ammunition.

Money Supply: The Myth of Hyperinflation

Here ya go. Google it!

Let’s put the pieces together here. Just this past weekend China announced that State Owned Enterprises (SOEs) will be allowed to default on commodity derivative contracts. Think of that. China has given the green light and authorized the defaulting on commodity derivative contracts.

This story broke over the weekend but has not gotten much mainstream media attention on this side of the pond. (North America). The only inference to it was the talk or “buzz” on the Wall Street floor that another bank was rumored to be close to defaulting. As Art Cashin of UBS Securities indicated in the video clip I posted earlier, normally when a market sells off on a rumor and the rumor turns out to be false, the market will tend to correct itself. IT DIDN’T.

The Reuters report cited 6 foreign banks that received letters indicating that the Chinese State Owned Enterprises would be given the green light to default on their derivatives.

A look at what a derivative actually is may be useful here. A Derivative is a financial instrument that is derived from some other underlying asset, index, event, value or condition. Rather than trade or exchange the underlying itself, derivative traders enter into an agreement to exchange cash or assets over time based on the underlying. A simple example is a futures contract: an agreement to exchange the underlying asset at a future date. Commercial and investment banks make up the foundation of the over the counter (OTC) derivatives market. Investors use derivatives to protect against risks, such as sudden changes in price or value of the underlying asset. Others tap derivatives to take on extra risk, in the hope of extra gains.

Well China owns billions of these products and it has finally come to light they have had enough of having the value of their derivatives manipulated by the manipulation of the price of the underlying asset. They have finally woken up to the fact that these derivatives have been bundled together like junk in a manner that resembles the mortgage backed derivatives that brought down the world markets last year.

Back to Reuters. Some of the State Owned Enterprises that stated their potential intentions to default were Air China. China Eastern and Cosco. Mainly in part because they took major derivatives losses over the past year but also, concerns are arising that the derivatives that they were sold by these foreign institutions are garbage, underwater and may never see the light of day. So why continue to pay for them? So the concern in the financial world is that holders of these losing products may just walk away, not unlike a home owner with a $600,000 mortgage on a home valued at $475,000 deciding to just hand in their keys. However, read on...this has nothing to do with morgtgage backed products. This time, the concern may be over Oil.

They (Reuters) cited 6 foreign banks.Where the story gets really intriguing is that among the major derivatives providers according to Reuters but also widely known in the industry, are Goldman Sachs, UBS and JP Morgan.

Here is the looming problem. These products are worth billions. One report that a good friend of mine did showed that if Goldman Sachs for example were to take this one up the rear, they could stand to lose 15 billion dollars. (This number is by no means confirmed)

An important history lesson is needed here. “Potential default” was the concern that sparked and prompted the most recent economic crisis. These intricately weaved products along with highly speculative CDOs and CDSs began to fall apart when the bubble that was in large part significantly contributed to and created by the financial institutions that were packaging this junk started to fall apart.

Imagine the impact for a brief moment if you will, on the impact to the financial landscape if China were to say “we are walking away” from those products. I would imagine that China, being the biggest purchaser of US debt, could surely collapse the US institutions that were at one point deemed too big to fail if they decide to go ahead with this plan.

This is why I don’t take tonight’s news that China purchased 50 billion dollars of IMF bonds lightly. In fact, I take it very seriously. This is why I take the buzz on the floor over the past two days very seriously as well as I do the incredible spike in Gold today. Most importantly, I do not take lightly the recent 25% correction we have seen in the Chinese Stock Market. Can all these events be interconnected some how? Is the Chinese stock collapse giving us a hint?

The Reuters story came out on Mon Aug 31, 2009 at 7:42am EDT. I find it quite interesting that the mainstream media did not take this more seriously. Reuters reported that the above noted Chinese companies have already issued letters to the banks. The Reuters article cites 4 clear points.

Money Supply: The Myth of Hyperinflation

The FED is also printing "free" money to do currency swaps to temporarily keep the dollar afloat.

Money Supply: The Myth of Hyperinflation

The Adjusted monetary base is 1.8 trillion and no they won't tell you their assets or liabilities. That's why they need to audited.

Money Supply: The Myth of Hyperinflation

It was on Bloomberg and that's why Art Cashin closed most of his positions on Friday and Monday.

Money Supply: The Myth of Hyperinflation

Buy Gold-

You're partially correct, but go back to Monday and see why the markets had a sell-off. There was panic on the trading floor because there was indications that a foreign government was going to default on their otc commodity derivatives contracts. This default would essentially bankrupt the three largest U.S. banks. This same government is seeking all 400 tons of IMF gold. If they do default on these contracts, it would ignite the derivatives death star and over 1 quadrillion of non-existent money would be unwound. The trade-off is simple. Give them the gold or they will launch the first salvo that will topple the whole otc derivatives ponzi scheme. It's the commies vs the crooked banksters. Who will win. You are all about to find out. Stay tuned. The current run to gold is a sheer panic move because in the end - paper is still paper.

Money Supply: The Myth of Hyperinflation

What's the difference between a $1 Dollar bill and a $100.00 Dollar bill? Nothing! They both cost 3 cents to print.