edgetraderplus'  Instablog

Saturday 18 May 2013

We are going to start off with one of the most eye-popping pictures ofjust one central bank, the privately owned corporate Federal Reserve,
and its purported gold holding. Occasionally, we drop a bit of history
that most people either ignore or simply do not believe, but this one
cannot be conveniently shunted aside.

One of the provisions in the FEDERAL Constitution, the 14th
Amendment, [the original, organic Constitution had only 10 provisions,
aka The Bill Of Rights], a hornet's nest for an unsuspecting public, we
our focus in on the one germane to the graph below. It is found in
Section 4:

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and
bounties for services in suppressing insurrection or rebellion,
shall not be questioned.

Now, who do you suppose created the public debt by loaning out, first money, then fiat, and now just computer entries?

Who do you suppose is responsible for it?

The question few people think to ask is, Who had it inserted? The
NWO works in mysterious ways. but always lethal to the interests of
the remaining 99.5%

Now, look below at the chart to get an idea of the magnitude of the
outstanding debt that will never be repaid! We do not believe the
gold holding claimed is accurate, [if any gold alleged to be held exists,
at all], but we do believe the debt portion is accurately depicted. In
fact, it has grown larger since December 2012.

This is all about a banking crises! Gold and silver are being held as
hostages.

The central bankers have their overly-rehypothecated teat caught in the wringer of world-wide demand for physical gold, and they cannot
get it out. Their only recourse has been to drive down, crush would
be a better description, the fiat [paper] prices of gold and silver so
they can "buy" time to acquire whatever physical available to cover
their cheating ways.

Ironically, while these financial fiat-wizards are in a panic mode, of
sorts, they are able to buy physical at somewhat lower prices and
destroy the ability to take delivery for those if-you-do-not-hold-it-
you-do-not-own-it paper holders upon demand. "Sorry, but you can
only have paper fiat. Didn't you read the fine print?"

As we have been saying since 35 silver, 1800 gold; 30 dollar silver,
1700 gold; 25 silver, 1500 gold, etc, the issue is not price, rather, and
most importantly, it is all about having possession of the physical for
which there is an insatiable demand. We have been saying this for
many months: keep buying physical gold and silver regardless of
price. At some point in time, it may not be available to buy, except at substantially higher prices, or not at all. Better to be the proverbial
year early than a day late.

Over the last several years, gold and silver have steadily been moving
into stronger hands in its flight from greedy, cavalier, and arrogant
central bankers who never saw this coming. Why not? They have
been habitual drinkers of their own cool-aid.

Who comprises the stronger hands? Well, everyone knows about
China, Russia, India, Turkey, etc, but now there are the not-
previously-considered-as-consequential man and woman on the
street. Compelling, unprecedented demand has surfaced on the
streets of so many countries around the world with people buying
ounces and kilos, as they can afford, and these little buyers are no
less adamant in their desire to own and hold physical gold and silver
as are the larger Eastern countries.

However, the numerous stories about shortages of 1 ounce gold or
silver coins/bars, on up to kilo size, people waiting in line for hours to
buy what they can, etc, may make for good press and seem like a
"feel good" story, but in the battle for supremacy of control, the long
lines and unprecedented buying have done little to nothing in
preventing the fall in paper prices of gold and silver.

You think the central bankers are caught in a corner with no gold?
Well, yes, but that is not the story. If they cannot deliver gold or
silver, they will find another way out. You have seen their strategy:
MF Global, Cyprus, and more on the drawing board, coming soon to
your own [any] country.

Under normal circumstances, when supply is short and demand is
strong and growing, the price of such a commodity, good, or service
will increase. Just the opposite is happening in the gold and silver
markets. For right now, the central bankers are defying the natural
law of supply and demand, and it is working. Why is it working?
People are not objecting! People are passively taking whatever the
NWO/central bankers dish out.

What has been the fall out for the brazen theft of segregated
accounts at MF Global? Nothing! What has been the fall out of Cypriot account holders who saw their bank and savings accounts held
hostage by the outside European Commission, an organization that
has no lawful standing in that sovereign country? A lot of pissing and moaning, but ultimately, acceptance. Where is the outrage, the
intolerance for such blatant theft?

This is all about a banking crises. Central bankers view their
customers as central bank private ATMs, taking customer money via
service fees, late charges, withdrawal fees for accounts that want to
withdraw their own money. How crazy is that? Yet, people accept
it.

Now, the uber-wealthy are getting a taste of the "commoner's"
medicine. They are finding out that their allocated gold accounts are not as allocated as they thought. Just how not allocated? How
about, "The gold ain't there, anymore." We are talking about hundreds of millions of dollars in [un] allocated gold accounts in Switzerland.
This is more of a hush-hush situation, but ABN Amro's [default] notice
to its account holders that it will no longer deliver gold in settlement
anymore, is the tip of the golden iceberg.

That first chart, above, should be seared into your mind. It is a
graphic representation of how supply and demand have been
distorted. Look at how much money was created, and it may be a
worse picture for European central banks and countries. One does
not have to "suppose" some of that money is going to be used on the purchase of gold and silver, for it already is. Look at how much money is out there, and then think about how little is the supply of gold and
silver to satisfy the growing demand.

Should you be buying gold and silver at any price? If that chart does
not provide you with the answer, ask a 5th grader to explain it. Price
is not the issue. Availability is! We cannot repeat this enough.

The caveat is this: central bankers hold all the power cards, and they will play them, at all costs, and the costs will be yours to bear, Cyprus being a crystal clear example of what to expect. In all probability,
most expectations will be underestimated.

The bankers have fouled up the financial system, and now they want
the people to pay for their egregious financial errors. It is not enough that bankers have been stealing homes to which they are not legally
entitled to do, but the government fosters it. It is not enough that
bankers have received trillions of dollars in bail-out money, to cover
their losses. The bankers have been paid several times over, including
insurance for losses claimed, even though no actual losses may have
existed.

"You must pay your fair share," is the reasoning given for bank
accounts stolen, and now talk of a wealth tax to help keep the system afloat. The banks are too big to fail. What?!! Who created the loans
and took the risk of loss? The bankers. Let them fail! Let the
system fail! People will survive. The only casualties will be the
bankers, the "system." It is all about protecting the "system," and it
has nothing to do with protecting people. The people are there to be
fleeced, and that is what is going on.

If you choose to stay in the banking system, expect to take losses on
anything held in a bank. Read that sentence as many times as it takes to have it sink in.

What have the bankers been hell-bent on destroying and discrediting?
Gold and silver.

What do Mussolini, Hitler, and Roosevelt have in common? They each confiscated the gold holdings of their citizens, leaving them with no
wealth and dependent upon the STATE. It is always about the
system. Follow the money.

The New World Order uses central bankers to control all governments.
Who runs the governments of all Western-bloc countries? Ex-central
bankers. Where is their allegiance? So many questions, almost all
having the same answer.

Those in power will destroy you financially, in order for them to survive and keep control. Governments produce nothing. Every dollar spent
has to come from the private sector. The parasite is consuming the
host. Be prepared.

The Quarterly chart is why we say the true story is all about time. Do not focus on how much demand there is for gold and silver, at any
level, be it country or individual. The demand side of the equation is
known, and better known by the central bankers than most. It is the
supply side that matters, and the supply side is comprised of factions from the NWO, and they will steal whatever you have to survive.
Based on the [non] reactions of those who have been stolen from,
they are taking it lying down, and the NWO sees it. The enemy has
time on its side, and it will be used to wear people down and become
disillusioned owing gold and silver. Keep the first chart in mind and
stay focused.

The chart comments can be viewed by clicking on the chart, a few
time, but this does not work on some sites that carry our article, so
we will reproduce the chart comments: [The comments pertain to the
paper market.]

A Qrtly chart is rarely looked at by traders. Its effect is controlling
over lower time frames. The reason for stating that a gold recovery
could take longer than most expect is illustrated here.

The wider range bar from 3rd Qtr 2011, with dashed lines at the high
and low, has been decisively broken to the downside by another fairly
wide range bar lower. The ease of downward movement is market recognition that sellers are in control. The current Qtr does not end
until 30 June, so the location of the close will provide very important
information and may provide a better understanding of the time
factor for recovery.

A weak close would tell us that it may take a few years for gold to
rally even just to the 1800 level. A look at the monthly chart gives
an example.

The chart comments aptly describe how the location of the close on
a bar lets us know who won between buyers and sellers for that time
frame, and it can provide clues as to what to expect in the next bar.

Because these charts reflect the paper COMEX prices, which ignore
true demand, the conclusions are based upon the distortion of the
supply/demand relationship.

Tuesday 14 May 2013

Half way through the month, and there has been but one trade
recommendation, and it was a losing one, at that. Here are a
representative group of charts from various sectors that illustrate the
problem for trading in these days of central planners taking over.

The only trade recommendation for May, so far, was the Australian
Dollar, primarily because it was in a protracted trading range, [TR], and near perceived potential support after forming a recent higher swing
low. You go with the facts available at the time of decision-making
and adjust, if necessary, as new developing market activity occurs.

The day identified as "dangerous" is because of the exceptional size of the range and how one can get financially "hurt" when they occur. We are constantly aware of that kind of potential in currencies which is
why we tend to stay away.

The corn chart is representative of the grains for April and May. There has been little to recommend in either direction, even with the trend favoring shorts.

Not much going on in the softs, either. Sugar remains at lows, and
coffee is, well, coffee, a New York market that can undress position
traders very quickly.

Neither gold nor silver were buys after the selling onslaught[er] by JPM in mid-April. Picking bottoms is a trading fool's game, and finding a
place to go short, advantageously, did not happen. at least for us.

The bond market is one of fiction, and it is very difficult to trade that
which is not real. The same is true for the Fed's stock market, the
primary [perhaps only] impetus for the current rally on relatively scant
volume. This is another market of pure fiction that is being manipulated by the Fed to "appear" safe and the only "game in town, as it seeks
to sucker in as much money as possible, making alternatives almost
financially non-productive.

The greatest risk in this bubble environment is less a consideration of return on money as it is a concern for a return of one's money.

Not much else to recommend.

Saturday 11 May 2013

The realistic general consensus is that the spot prices for gold and
silver are no longer relevant. Yet, what remains the one price on
which focus has intensified for each? There simply is no other
alternative, at present. A distinction is made concerning the
purchases by China, Russia, India, et al, paying a larger premium
over spot gold, prior to the sell-off, and prices paid by those
purchasing single ounce coins or even kilo bars, "the people," as
it were.

Purchases made by the tonne, from the countries mentioned, are
not reported in a way that can be measured, and in fact, those
purchases are not publicly reported. While the reports of
unprecedented demand for both gold and silver on a world-wide
basis in response to the attack on longs, last month, continues, we
think the New World Order, [NWO], and its vast infrastructure, IMF,
UN, Basel, central bankers, all governments in the West under its
control, is not overly concerned about the man-on-the-street
demand.

The next chapter has yet to be written. One thing is likely to be
certain, it will get uglier. Think of the people of Cyprus and how
they are suffering at the hands of unelected, non-
representative outsiders, the NWO executioners imposing austerity
restrictions to pay for the sins of the bankers.

It used to be the "Golden Rule" was, He who has the gold rules.
That has been replaced with, He who controls the purse strings
dictates. The shocking reality of the latter will become more
prevalent, one country at a time. Central bankers will default and
make it appear the fault of the paper holders. What are you going
to do about it?!, will be their attitude. All the central bankers are
doing, under the protection of governments, is stalling for time as
they get their end-game in place. What is that end-game?
Securing their stranglehold on power over the failing Western
countries so that they remain in power.

The golden Ponzi scheme may be unraveling, but do not expect
China, Russia, India and other countries to put immediate pressure
on the central bankers. They are far more cunning and patient as
they smell blood, and they know that in the end, they will extract
far more from the failing power of the West. The BRICS countries
are building their own trade relations, cutting out the fiat Federal
Reserve Note as a world reserve currency. So let the central
bankers manipulate the price of gold and silver as much as they
want, for as long as they want. It will simply make it more
rewarding for the newly rising Eastern powers when the fraud's final
chapter is written.

We see this as a Cliff Note version that the general public fails to
consider and instead, expects a demise of the COMEX and LME as
the catapulting catalyst for substantially higher gold and silver
prices. Based upon these questionable expectations, the public will
not be prepared for what could take a few more years to develop,
and the potential for yet much lower prices for both gold and silver.
This certainly is not a blueprint of the future, but a conjecture of
what could happen, in one form or another. In the end, no one
knows how this will turn out, other than a strong belief that it will
get worse before it gets better.

Gold and silver can become illegal to use in public trade or barter.
Anyone caught could be branded as a "financial terrorist" as
governments continue to crack down on any form of opposition to
their fiat enslaving control. Anyone "caught" with more than "x"
ounces of gold or silver will have to prove it was legally purchased
or risk confiscation. War, on a wider scale, cannot be ruled out as
a "diversion" often used by the NWO ilk. No one knows.

For all the short-comings of the paper prices reported by the COMEX and what resulting charts, are saying, they will be used until
something better comes along. Regardless of what the charts
show, one should continue to buy physical gold and silver, [and
personally hold it], on a regular basis. Fiat currencies will continue
to be debased by governments. A failing fiat and falling gold and
silver prices cannot continue indefinitely, and the fiat will be the
ultimate loser. Those who continue to hold paper anything, may
be subject to near total loss.

Inflation is already guaranteeing losses with the fiat FRN losing 35%
just on the past decade. Then there is the consideration of being
"Cyprused" in your bank accounts, stock accounts, futures
accounts, [MF Global], and pensions. Gold and silver remain the
best alternatives.

There is nothing conclusive for initiating a position in the futures in
either direction. We stated previously that the wide range bar of
15 April is likely to contain price activity for some time, now into the third week. Price is holding the support channel line, but rally
attempts have not been strong. It does not mean price cannot go
higher, next week, but there is no new demand that says to be a
buyer in futures.

Friday's close on the daily was under the last 10 days of buying
effort. No reason to buy. We would like to see a failed rally above
1500 to be a seller.

How price responds around a support or resistance is an important
market clue. Right now, silver cannot rally higher and away from a
support area, and that suggests support may not hold.

The daily chart does little to clarify direction, although one has to
keep in mind that sellers are still in control. The clustering of closes sends a mixed message, as noted on the chart.

The clearest scenario is the ongoing purchase and accumulation of
physical gold and silver as a store of value against an increasingly
uncertain future.