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Hi every body,
A proposal of a value added Tax, which is a sales tax proposal. This type of tax is more disruptive then income tax. I know that many states that do not have sales tax will not support a national sales tax. Evidence of that is from historical blarney of congress.
Also V.A.T. is not constitutional, and would require an amendment to the constitution.
A value added tax requires people to have money to pay it.
If you do not make enough money, then it is not necessary to pay income tax. Also, if I had a bucket full of earned money and when I spent it with a value added tax, I would be taxed twice on the same money. I think we nee another tea party.Last on gold is $1144.70 as negative attack dogs appear anemic.
Better get your gold or add to your holdings now, as here comes Uncle Sam with his VAT tax:
Last on gold is $1135.30.
We are in the midst of threatening history in the making . In order to deal with negative changes that are coming down the pike people need to concentrate on educating themselves more so than ever because their future is at stake.
The following are important sources for the learning process to begin in earnest.
Listen to Charley Jones interviews with east Texas Mike. Rebroadcasts of Sunday night interviews at 10:07 PM Pacific Time are available on demand.
2- http://www.kingworldnews.com
Listen, especially, to Eric King’s recent interview with Jim Rickards along with other informative interviews that are available.
3- http://www.martinarmstrong.org
You want the truth? This is where it begins. As an example, Mr. Armstrong recently told me that, “creativity is different than IQ. A lot more people are creative than many suspect. Einstein, Mark Twain, even Bill Gates, were creative. Schools don’t recognize what really matters. The Fed Reserve has more PHD’s than anyplace but they can’t tie their shoes and talk at the same time. There is no spark.”
The sad fact is we lack genuine leadership. Congress is a real mess with few taking their responsibilities seriously.
Search Gerald Celente, Jim Rogers, Peter Schiff and Max Keiser.
As Bob Dylan sang, “Times they are a changing.”
Gold closed out the week on a weak note at $1136.80. The propaganda machine started up last Monday while almost all senior gold shares were right up against their individual chart resistance areas. The miscreants couldn’t have picked a better spot to start up their short term ambitions again.
Then on Friday came the news of the SEC’s fraud charges being lodged against Goldman Sachs for their inappropriate dealing with CDO’s. The spin doctors started telling the news outlets that this event was gold negative which it wasn’t.
It’s suspected that next week will bare a softer tone in gold, silver and related shares. I stand ready to add to positions on any follow through from last week.
We’ll have to wait a week or so for expert opinion from Martin Armstrong concerning the Goldman Sachs charges. This is mentioned for the reason that Goldman along with Morgan market the governments debt and are their pet bullion banks in attempting to keep a lid on gold.
Last on gold is $1150.80.
The propaganda machine is being turned on again. It started Monday as Goldman Sachs reduced their projections for gold. The Street.com got into the act today with the following headline: “Gold Prices Cave, Break $1150.” How foolish these miscreants are with their misplaced words.
The scary part is the employees at the Treasury and Fed are totally lost at trying to figure out the mess they put us all into. Creating service oriented positions with borrowed money is not the answer. The answer is creating jobs that produce something real which will enable the economy to grow.
I read the other day that we are importing silver while mines and workers are idle, especially in Idaho. What a joke these public service employees are. When will they get it: rules and regulations destroy companies and cost taxpayers needless amonts of money.
In another light, Whwn I recently saw Hank Paulson getting off a plane in China as one of our representatives I knew our goose was cooked.
All currencies will fall against gold and silver and there is nothing that our leaders are willing to do to stop it.
Their game is up. It now remains just a matter of time untill the next big crisis hits. Martin Armstrong, who has an outstanding track record, states the next really big one arrives in the time period from 2011 to 2012 with another following in 2015 to 2016 period. Heard recently that real estate prices may come down another 50% from current levels.
You can count on a couple of things in the time period ahead: Your money will continue to buy less and gold will continue to protect your buying power.
As Dan Norcini recently generally stated at jsmineset.com, the currency that we exchange with each other represents only someone else’s debt with little to nothing behind it. Just be sure that when the music stops your’re not left standing there wondering who took your seat because no one will be offering you one.
Being on your own with pockets full of pretty colored bills with lots of zeros will soon be forgotten. Remember the words, “Not Worth A Continental?”
You wealth will always be determined by how many ounces of gold it equates into.
Gold is insurance and anytime you can buy more of it at lower prices the more secure your future becomes. Don’t let lower prices bother you, meet them head on by gathering up what you can.
Gold is closing out the week at around $1162.00 an ounce.
We are all going to be hit, one way or the other, by an eventual soveriegn debt collapse. Maybe, they just won’t tell us the truth but just give us a new currency of some sorts to cover it all up. Times are very serious as the link below to Martin Armstrong’s latest missive indicates.
Martin is currented confined to the hole for assisting an inmate with his legal matters. He has to sleep on concrete and has very few writing materials.
It looks very much the case today with gold and silver that the precious metals market is ready to repeat what happened in 1979. This time it won’t be 100% inflation oriented. People around the world are scared to death and are dumping soveriegn debt for hard goods.
When the failure of soveriegn debt really starts, it will be an historical event. What we will witness is a series of dominos flipping over and over while destroying public wealth and creating massive amounts of new poor.
Our politicians have sucked the system dry. It is a disgrace that we have permitted the hired help to take charge of our lives and now they are the boss. As Rick has said so many times before, we still have our vote. When the time comes, make your vote count.
We have all been ruled and regulated like serfs in the excess by these fools who see nothing wrong in their behavior. They are no more than sociopaths. As Gerald Celente has stated, they interpret Justice as “Just Us.”
http://www.martinarmstrong.org/files/From-the-HOLE-9-A-Quick-Overview-of-Key-Markets-4-7-10.pdf
P.S. The government put Mr. Armstrong in jail because he didn’t want to cooperate in sharing his analytical computer software with a certain government agency as well as telling the truth concerning Goldman Sachs’ global ambitions.
Last on gold is $1151.60
More on the gold and silver shortage.
The Latest Gold Fraud Bombshell: Canada’s Only Bullion Bank Gold Vault Is Practically Empty
Submitted by Tyler Durden on 04/07/2010 10:30 -0500Bank RunCommodity Futures Trading CommissionHong KongMorgan StanleyPrecious Metals
Continuing on the trail of exposing what is rapidly becoming one of the largest frauds in commodity markets history is the most recent interview by Eric King with GATA’s Adrian Douglas, Harvey Orgen (who recently testified before the CFTC hearing) and his son, Lenny, in which the two discuss their visit to the only bullion bank vault in Canada, that of ScotiaMocatta, located at 40 King Street West in Toronto, and find the vault is practically empty. This is a relevant segue to a class action lawsuit filed against Morgan Stanley, which was settled out of court, in which it was alleged that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store, yet even despite charging storage fees was not in actual possession of the bullion. It appears that this kind of lack of physical holdings by all who claim to have gold in storage, is pervasive as the actual gold globally is held primarily in paper or electronic form. Lenny Organ who was the person to enter the vault of ScotiaMocatta, says “What shocked me was how little gold and silver they actually had.” Lenny describes exactly how much (or little as the case may be) silver was available – roughly 60,000 ounces. As for gold – 210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form, which Adrian Douglas calculates as being $100 million worth, which is just one tenth of what the Royal Mint of Canada sold in 2008, or over $1 billion worth of gold. As Orgen concludes: “The game ends when the people who own all these paper obligations say enough and take physical delivery, and that’s when the mess will occur.”
Also note the interesting detour into what Stephan Spicer of the Central Fund Of Canada, said regarding his friend at a major bank, who wanted access to his 15,000 oz of silver, and had to wait 6-8 weeks for its to be flown in from Hong Kong.
It is funny that central bankers thought they could take the ponzi mentality of infinite dilution of all assets coupled with infinite debt issuance, as they have done to fiat money, and apply it to gold, in essence piling leverage upon leverage. They underestimated gold holders’ willingness to be diluted into perpetuity – when the realization that gold owned is just 1% of what is physically deliverable, you will see the biggest bank run in history.
Last on gold is $1146.00, earlier it had been trading over $1150.00.
The gold and silver price rigging scam by fiat currency managers will be over soon. Jim Sinclair has recently stated that you won’t be able to buy gold after year’s end. Why? Because there are 100 times more ounces committed to all sorts of paper products saying that there is gold behind them, when in reality, it is an untruth.
China has quite a serious problem: If it buys gold outside of its own country’s production what guarantees will be good enough for them to insure delivery?
The game will soon be up when the media is forced to report the real news when delivery failures can’t be hidden from the public any longer when the Genie escapes from the bottle. Right now, the press is keeping the lid on it all concerning the fact that there is only one ounce of physical gold available for every hundred that have been promised. Concerning silver, it has to be worse with large US banks continuing to be naked short.
If you haven’t already got the facts from kingworldnews.com then you should go to their site and listen to Eric King’s past few interviews.
The days are becoming limited for gold and silver acquisition as more and more people are beconing aware of this great tradegy. Eric King has stated that this fraud is the greatest financial fraud ever to be experienced in the history of the world.
Before the bubble explodes and criminals identified, it’s quite apparent that everyone needs to have gold and silver in some form plus “in your own personal possession”.
News out today states that 6,900 people file for bankruptcy each day. For the month of March, 158,000 filed for bankruptcy protection. Some people don’t even have enough money to file as it costs anywhere from $1500 to $3500 for the bankruptcy attorney.
If You Are Not Committed To Gold and Silver, You Are In More Trouble Than You Think.
Select GATA March 31, 2010 for all the information if the link below doesn’t come up from King World News.
The imbalance between physical gold and silver and what paper contracts say is there, ????, is the greatest in the history of the world and is presumed to worsen until the bubble from all the years of perpetuated fraud explodes.
According to Bill Murphy, there is a slow fuse burning.
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/3/31_GATA.html
Gold is off $16.90 at $1085.90. The dollar is benefiting from weakness spilling over into the Euro and the Pound which are both breaking below short term support levels today.
The volatility in the currency markets as a result of growing sovereign debt is expected to increase. Today it’s all about putting funds into the dollar while withdrawing them out of western European currencies for safety. Safety?
Most currencies will eventually be unable to escape the coming contagion of debt default and all are expected to go south against gold in due course. It’s just a matter of time.
In the meantime, gold suffers a little as the dollar is the prettiest girl at the dance in the eyes of currency traders and institutions as it remains, for the most part, the world’s reserve currency.
I’ve been going over a 10 year chart of gold. What I see is that smart money is entering the precious metal each time it approaches its 40 week average, or the 200 day moving average line. With the exception of the banker’s raid on gold and silver in 2008, all have been perfectly timed. The 40 week average currently stands at 1045.72.
If I were operating China’s unannounced gold buying program, I would have been buying all day and looking forward to lower prices for the rest of the week and beyond. Whether they get their wish at these levels down to about $1046 is anyone’s guess.
Martin Armstrong has stated beginning next month through October of this year gold will be strong. Mr. Armstrong has a track record that surpasses the great majority of market followers. I guess we’ll find out soon enough if he can do it again.
Last on gold is $1111.90.
Idaho Bill Permits State Taxes Be Paid With Silver
By The Associated Press 03/15/10 – 02:48 PM EDT
BOISE, Idaho (AP) — Idaho lawmakers are backing a plan that would allow state tax bills to be paid down with silver medallions instead of cash.
The bill approved Monday is intended to encourage the use of silver as a form of currency and reinvigorate Idaho’s silver mining industry, which has been in decline for decades.
Athol Republican Rep. Phil Hart told the House State Affairs Committee that consumers should rely less on money printed by the federal government because inflation will diminish its value. His bill reignites a long-standing debate about the value of paper money not backed by commodities.
Hart’s measure also includes tax breaks for any company that agrees to process silver ore for the medallions.
Lawmakers in Georgia considered allowing citizens to pay taxes with gold and silver last year.
Last on gold is $1108.80. Is the recent price activity in the general 1100 area etching out enough support as a base in preparation for a new intermediate move higher or do we have to wait a little longer? Remember, playing the waiting game in any major bull market is the same as watching its battery getting recharged for its next expected energy burst forward.
Years ago when gold traded higher above its very long term declining 5000 day moving average line in 2002 or so at around $350, it was acknowledged here that the tide had turned. Nothing is yet seen on the horizon that would even slightly indicate that this bull has terminally exhausted itself, contrary to what George Soros said about gold being in a bubble. What is quite clear is that this monster of a bull market has many more charges left in it that will span years ahead of us.
Got your gold? In addition, it may be added that holding pre-1965 silver coins is an excellent idea as well. If our fiat currency is no longer accepted for one reason or the other and since no other world reserve currency exists currently, silver coins will regain their past status as the people’s currency.
China is collecting “in ground” precious metals along with copper hoping the markets remain tame while they methodically exchange their reserve currency dollar holdings. The Chinese are sly liquidators of dollars while at the same time they publicly support the currency and demean gold from some official circles.
The major problem for dollar holders is that the current exit point is very small and any pushing at this portal would cause a dam collape of historical proportions resulting in painful losses.
Words from Doug Casey concerning fiat currencies and the building debt behind them:
“A guy stuck with a dead man’s IOU has nothing.”
Fiat currecies come and go on a regular basis without one ever induring the test of time. On the other side of the coin, gold is eternal.
Think it can’t happen here, think again.
Gold is below $1100.00 at $1099.30. What does today’s weakness mean? According to John Williams at shadowstats.com in Oakland and close believers of him around the world, it means nothing.
John in February of this year said, it doesn’t make any difference – in where gold is headed – if you are paying $700 or $2000 an ounce for it today.
The following is from Mike Maloney’s Gold and Silver Report on March 9, 2010:
This money(speaking of extremely high inflation rates in Argentina, Bolivia and Brazil during the 80’s) creation is unprecedented in the United States and shows no sign of slowing down. It may be new to us, but people from other countries can tell you from first-hand experience how it will turn out.
How many times do governments have to reprove that the formula of:
Slowing economy + increased currency creation does not equal long term prosperity for the country?
When this has happened in other countries there have been many losers, but the positive part of this equation is that there are also some individuals and families that win big with life changing wealth. Those who understand what is happening and take action, not only protect themselves but massively prosper in the final equation.
Mike Maloney – Rich Dad’s Guide to Investing in Gold and Silver:
Gold and silver have revalued themselves throughout the centuries and called on fiat paper to account for itself. In doing so, gold and silver bring fraudulent money to justice. They’ve always done this, and they always will.
Once again, the accounting has begun, and it will not stop until the full accounting is completed.
The resounding answer we have come up with for ourselves and our families is holding physical precious metals either directly or in storage.
Examples in these other countries show that when this debasement of the currency happens there is a massive wealth transfer from those that hold the depreciating paper assets to those holding items of intrinsic value.
Are you ready?
Last on gold is $1139.60.
One very good reason for holding gold is the mistrust of the hired-hands, supposedly, who are safeguarding our welfare.
For a real eye-opener on what has been done to us and what continues, check out the attached article.
http://www.martinarmstrong.org/files/Behind-the-Curtain-Part-II.pdf
Last on gold is $1134.50. From a chart interpretation, gold has completed its recent weak spell that began soon after it passed $1200 in the beginning of December.
The $1300 to $1350 area seems reasonable to expect for an upcoming intermediate high point. If this range is bettered in the next three months or so, gold could well enter a ran-away phase like it did in 1979.
Don’t forget silver, it will join in with gold’s strength, possibly, to a much greater degree. Although gold continues to outperform it, this can all abruptly change if the precious metal’s market gets hot.
Pre-1965 US coinage of dimes, quarters and halves is a sector of investment that continues to look quite attractive. Accomplished folks that I know who began their purchase program of these coins when silver was above $6, still continue to add to their hoard.
eBay continues to be the most competitive market for prospective buyers with an interest in these items. If payment is made through Pay-Pal your purchase is guaranteed.
Gold rallied today to a last of $1115.50 from just below $1100 following the increase in the discount rate that intially took it lower. Demand for gold in the $1080 to $1100 area appears preparing the metal for another thrust higher in the weeks ahead.
Dr. Jeffrey Lewis reported in kitco.com, http://www.kitco.com/ind/Lewis/feb172010.html that “COMEX has systematically created an even bigger problem for investors. The exchange allows investors to make good on their future positions with gold and silver ETF’s rather than real assets, thus opening up the door for hugely distorted market prices.”
First, the COMEX isn’t referring to investors, they are referring to the likes of the big bullion banks like J.P. Morgan and Golden Sachs. When have you ever heard of an investor defined as someone who naked shorts gold and silver contracts? What a joke!
Physical gold and silver are disappearing from the market place, clear and simple. Basically the COMEX is saying, you can still bet on silver and gold prices but you can’t take delivery and walk away with the specie.
Jim Willie has repeatedly warned that there is a growing physical gold delivery problem in London with some large Chinese interests boiling mad enough to employ an army of lawyers and auditors to retrieve their gold.
The fiat currency managers by the actions of COMEX are saying, we’ll control the metal prices and prevent you from taking physical delivery but you can still play the game in our unbacked fiats.
The handwriting is on the wall for those willing to see it, the physical supply of gold and silver is running out. You better get your share before the supply channels start drying up.
COMEX’s message is quite clear, the big gold and silver shorts are close to default. The bending of the delivery rules is just another bail out for these sociopaths. The CFTC should close this crooked exchange.
The derivative market was the high lighted on “Front Line” of P.B.S. and the high flying free market. This is still a mysterious market, that was using the housing bubble to back their debt. the whole house of cards imploded just like the fall of the stock market in 1929, except bigger.
It was a time bomb that could have happened 10 to 20 years ago. The federal reserve was basically responsible for it. The Commodities market director was aware of it, but ham strung by the banking industry and the federal Reserve to stop the regulating of it.
Do not fear, time will heal all. Yes we will all have to pay for it. Life will go on. We will all figure out how to make a living or die trying.
Our nation is the bread basket of the world, so food should get cheaper. Housing will get cheaper. Retirement may become a lost cause, because the investment of that security went broke. We are a strong people,we will survive.
With out regulation of this derivative market, fraud and corruption ran out of control. We pay for it now.Last on gold is $1121.50(now $1110.40) after trading under $1100 twice last night. Weakness developed soon after the close of the market in NY yesterday when the IMF, in an e-mail announcement, said that it would be selling the last of the 403.3 tons of gold, 191.3 tons, on the open market. This will never happen in the open market as it is against the IMF charter, conducting auctions would be more like it.
Releasing this information after NY hours would indicate an attempt to use black magic in order to get gold as low as possible in an illiquid market.
Unfortunately for the cabal, it was a dud. Just like when George Soros stated that gold was in a bubble in January. It turns out that since the Soros’ statement he actually has been buying gold for his own hedge fund.
We are in the age of manipulation and extreme greed. Getting the Federal Reserve Act of 1913 passed bordered on another form of manipulation, this time by the bankers and not a hedge fund.
The Act was approved during the Christmas Holiday. The crucial vote came in the Senate on December 23, 1913, 68 members were in attendance while 27 were no-shows. The final vote for passage was 43 yeas to 25 nays. One wonders, how many of the yeas were bought and paid for by the big New York bankers?
The bankers had long planned for this privately owned central bank to subsidize them beginning with their infamous secret Jeckyll Island meeting that begun in November of 1910.
http://www.youtube.com/watch?v=xISSTVF_KgM&NR=1
A quote from Robert Kiyosaki would seem appropriate here:
“This(Jeckyll Island get-together) is a murder mystery about the financial murder of the middle class.”
Anyone who has ever read Ferdinand Lips’ book, Gold Wars, is not surprised at what length the masters of fiat run currencies will do to support the continuing acceptance of those unbacked paper promises assisting the bankers in keeping us indebted to them as they both debase our wealth.
Gold is our only ally now as the real estate market has topped out for the long term, according to Martin Armstrong.
Armstrong also states, “the bottom comes in 13 years.” This continuing real estate collapse is far more serious than we are being told. Las Vegas and Reno continue to be hard hit with little hope in sight. My son predicts that in the future a person will be able to purchase an average sized home in Nevada or Florida for one ounce of gold.
The only home values that I am aware of that have bottomed out are in Detroit. About 1/10th of a ounce will buy you a handful of homes. Check it out, go to realtor.com.
Gold is higher today at $1119.40.
The following linked interview between Eric King and Jim Sinclair is about 45 minutes of the most priceless listening time you may ever spend.
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/2/15_Jim_Sinclair.html
The financial sociopaths and serial bullies are just beginning to feel the wrath of the people they are attempting to destroy as the following news release suggests:
HurriyetDailyNews.com
Tuesday, February 16, 2010
Wires
Greece-BombATHENS, Greece (AP) – Police in the Greek capital say a bomb has exploded at the offices of American financial services firm JPMorgan Chase & Co., causing no injuries.
The blast occurred early evening Tuesday in an upscale area of central Athens, following a warning telephone call to an Athens newspaper.
The extent of the damage was not immediately clear. 161811 feb 10GMTChina’s Pressing Need To Buy More Gold.
This is an excellent article from December 29, 2009.
In speaking of buying gold coins on reactions in the past it was thought that folks knew where to go and get them. This may or not not be the case.
In past dealings of mine, and friends and relatives I have become aware of some outstanding sources for gold and silver coins:
http://www.moderncoinmart.com/cart1/home.php
In regards to ebay.com purchases have always been made from the top rated sellers using paypal. When using paypal all purchases are insured.
Numismatic coins can be purchased either professionally graded or not. I prefer some part of my coin’s position to be in these graded coins as there is never a doubt to the condition of them and in the future can be sold sight unseen. The coins are slabbed in hard plastic with the grader’s identification on it as well as the grade. The highest grade is MS 70 which is basically a flawless coin and carries the highest value in the series of MS ratings.
If anyone has an interest concerning the process of grading coins at PCGS which is my favorite there is a five minute video available from http://www.golddealer.com. When you get to the site go to “U.S. gold and silver PCGS certified.” Next select either high bandwidth(Cable/DSL) or low bandwidth(Dial Up).
For simplicity purposes within the current bull market in gold I prefer to scale down coin purchases from the lower half of the ascending up trendline channel. To make purchases easy and methodical in the days and weeks ahead for those with an interest, lets just take the current range in round numbers in the channel from 900 to 1200 as a starting point to arrive at the median level, 1050.
At $20 lower intervals or so from 1050 you would purchase your selected coin varieties from the above mentioned sources or your own sources. Of the people I speak to, they hold 70% in gold and silver bullion coins and the balance in certified coins of their allotted percentage in their portfolio for coins.
For folks who do not like to store the bullion coins an excellent alternative is in buying and having certificates delivered to you of Central Fund of Canada(CEF-ASE). Of all the Exchange traded funds, IMO, this is the most secure. CEF holds 50% gold and 50% silver bullion in secure Canadian vaults.
I am not at all convinced that the current short term move lower in both gold and silver is over quite yet. As the earlier supplied article from Jim Willie states the current market weakness is being driven by paper gold sellers who don’t necessarily have the physical metal but who are, anyway, affecting the physical price.
Mr. Willie states that this current weakness is an opportunity for physical buyers with the total collapse of the world’s paper gold markets pending as he convincingly made his case for.
Gold has become weaker faster than expected as it is now off $14.10 for the day at $1049.10, breaking short term support at $1060.
There is no question that the cartel wants the metal under $1000. They have succeeded in freightening the market which is one of their onerous trademarks. Manipulating the dollar higher makes the weakness more justified in the minds of market followers but it’s the gold they want lower, not the dollar higher. Just because Euroland has their troubles the dollar is now the currency of choice? The fact of the matter is that all fiat currencies will erode in value against gold and this present playing off one currency against the other is just child’s play when weighing in some serious consideration for real wealth preservation with gold.
The following linked video clearly states the case why the dollar will fall in value against gold when some day over the next five years it will take 15,000 dollars to buy one ounce of gold.
Continue buying and holding gold, it is your family’s insurance policy against planned government mistakes that are more than likely being orchestrated by the owner of half the world’s wealth from across the Atlantic.
http://www.thestreet.com/video/index.html?bcpid=1815813252&bctid=64473713001#64372897001
Gold closed on a strong daily note at $1065.00 rallying from an earlier low at $1042.50.
The following linked article by Jim Willie goes into the structural breakdown of the gold market in detail which may shock you:
The following is an addendum to the previous comments:
It wouldn’t be a surprise if the cartel has a plan to jerk our chains with further paper selling in gold and silver along with the related shares in the weeks ahead. Over the short term if the $1060 level on gold gives way they will be successful in stirring up our nerves again like they did back in the later part of 2008 when a few U.S. banks tore into the precious metal’s prices with a flood of paper product sell orders.
Recent bullish chart patterns of the Gold/XAU and the Gold/Silver ratios indicate that not only will gold be weak in the short term ahead but that suspected down leverage will be extended more to the related shares along with silver. When these ratios are bullish they actually represent bearishness. It’s almost like when a bond is advancing it actually relates to a bearish trend of a lower expected interest rate return for current buyers.
It’s the opinion here that plans should be in place to take advantage of weakness in gold if the $1000 level gets cracked. Any forced sell-off in gold only goes to show how desperate the fumbling fools in Washington have become as is supported by the growing numbers of folks who have become anti-government.
Last on gold is $1110.50 after hitting a high of $1125.80 in Hong Kong last night as the metal continues to gyrate around its median price within its bull market channel formation at about $1112. Gold’s last sale is neither over-bought nor over-sold within this major ascending trend.
Currently, the top of the channel is at $1250 and the bottom of it at $975 are well entrenched and continue to direct the metal higher into the future as it continues to recover from a recent speed bump at $1225 in December.
The last on gold is $1105.50.
The following link provides perspective from Rick Ackerman concerning gold’s weakness encouraged by the fiat currency lovers:
Gold closed out the week at $1080.20.
The battle against gold by the cartel is starting to intensify. Since CNNMoney.com early last week put out an article that predicted $500 gold, Nouriel Roubini is stating that $1500 and $2000 gold projections by experts are non-sense.
One just has to look into Mr. Roubini’s past to see who he’s been rubbing elbows with to get an idea what side of the fence he is on.
The following is an excerpt from Wikipedia concerning Mr. Roubini:
After receiving BA in political economics at Bocconi University and doctorate in international economics at Harvard University, he began academic research and policy making by teaching at Yale while also spending time at the International Monetary Fund (IMF), the Federal Reserve, World Bank, and Bank of Israel. Much of his early studies focused on emerging markets. During the administration of President Bill Clinton, he was a senior economist for the Council of Economic Advisers, later moving to the United States Treasury Department as a senior adviser to Timothy Geithner, who is now Treasury Secretary.
We live in a cruel world of thievery, injustice and moral decay and now the ones with political connections tell us gold is not for us.
Is there any wonder why the government put one of the most brilliant minds in the world, Martin Armstrong, in jail? Believe what you must, I prefer to be educated by the prodigies and not the white shoed boys from Harvard and Yale.
Last on gold tonight is $1083.60 following a low of $1073 earlier in the day in NY.
It’s quite apparent that pressure is being exerted on gold’s price at and around the $1100 area. As this selling continues the media whores along with a big investor are talking this market lower by pointing out that gold’s recent strength represents a bubble ready to pop.
Isn’t it interesting that the press reports bad mouthing gold is never balanced with positive comments? Now George Soros says, in so many words, that gold is coming down. Soros trades the US dollar and one can easily speculate with these negative comments on gold that he is long the dollar. Soros has had a keen interest in holding gold shares in the past. Is Soros short gold and worried at current levels or is he looking to buy the bullion lower along with the related shares????
Since his comments were made today at Davos 2010, expect some follow through in gold selling from folks who find themselves in a state of confusion or not being dynamic in their understanding of monetary science.
Another linked article below from CNNMoney.com from the 25th of the month is a real laugher: Some non-gold-expert who writes for Fortune Magazine predicts that the price of gold is headed to $500 in two years. This forecast may turn out to be the worst of all-time, beating the Boston Globe’s stated position that buying the metal back in the early 90’s at just above $300 was, basically, risky and a bad idea.
http://www.foxnews.com/story/0,2933,297483,00.html
http://money.cnn.com/2010/01/25/news/economy/assets_bubbles.fortune/index.htm
Last on gold is $1132.70 with American markets closed today in observance of Martin Luther King day.
Jim Sinclair at jsmineset.com makes positive comments today on Africa’s economic future aided by Chinese investments.
It’s all about developing new markets and locking up natural resources along with guaranteeing China an exclusive source of gold in the years ahead.
Martin Armstrong sees China as the new Rome.
Gold is higher at $1136.10 in Asian trading tonight. It’s the same old story IMO, China continues to buy in bona fide markets while avoiding NY markets that are bound by edicts from the Treasury and the Fed to Wall Street bullion banks to continue the phony sales causing general metal weakness when their doors are open.
The dye to our possible financial demise has been cast with our continuing out of control debt expansion. The world’s eighth largest economy, California, is bankrupt as are so many other states. Our personal debt bubble of our holdings in real estate has burst and continues to suck our blood. The temporarly lows will be recorded in the second half of 2012 according to Martin Armstrong, only to continue lower starting in 2015 for another 33 years. There are reports floating around that home prices will sink further for the next two years by a minimum of 30%.
In Reno and Las Vegas, home prices are off 50% and more since 2007. Since they have been especially hard hit, it’s conceivable to think that sometime in 2012 they could touch an inviting low point from which to rally up from until 2015.
Got your gold?
In The News Today
Posted: Jan 06 2010 By: Jim Sinclair Post Edited: January 6, 2010 at 8:56 pmFiled under: In The News
Dear CIGAs,
The Angels are moving targets that are refined with each market reaction. Their change is miniscule but we account for it. That fact that $1224.10 was the cash high and the fact that the $1080 area worked reasonably well has lit up $1764 even brighter than $1650.
I therefore conclude that gold is definitively going to $1650 with an overrun to $1764 prior to a reaction before it moves to higher prices on or before January 14th, 2011.
The following are comments made by Doug Casey today of the Casey Dispatch that are profound:
Doug Casey on Currency Regime Change
(Interviewed by Louis James, Editor, International Speculator)
L: Happy New Year, Doug! Whats on your mind these days have any new thoughts for the new year?
Doug: Well, the new currencies discussed in the news have caught my attention.
L: Ah, yes. Hugo Chavez is launching a new virtual currency among some Latin American and Caribbean countries called the sucre. It looks like its going to be little more than an accounting fiction among trading partners. But the new currency the Persian Gulf states are talking about launching, the so-called gulfo, that looks more like a serious contender. What do you make of this?
Doug: My first reaction is to say, Monkey see, monkey do. In imitation of the European Union, these people are monkeying around with what should be money. Thats gold, of course. But you know, Ive been surprised that the first of these Esperanto currencies, the euro, has lasted as long as it has. It was officially adopted in 1999, though not put into actual circulation as bank notes and coins until 2002. It started out with a theft, in that the old currencies that people had were only good for another three years. After that, your deutschmarks, guilders, francs, and what-have-you were good only for wallpaper. If you had any stuffed under your mattress, you found out what their intrinsic value was.
But the euro thats replaced them, too, is backed by nothing. Nothing but the good faith and credit of the participating governments which are all going bankrupt. The problems in the EU arent just with Greece, Italy, and Spain; Britain and France are being downgraded, and its going to get much worse.
L: But wait a minute, is the euro really backed by even that? Well, maybe good faith, whatever that is, but not the credit of the participating countries. What would that mean? Credit in what? You cant take euros to the German government and say, I want deutschmark for these. Certainly not gold. If the dollar is a floating abstraction, the euro is all the more so, trying to stay afloat on a void.
Doug: I agree. If the dollar is an IOU nothing, the euro is a who owes you nothing. When it collapses, a lot of people are going to suffer a big wealth haircut. Bernie Madoff swindled thousands of people out of billions. The euro will swindle millions of people out of trillions.
L: Right but then is it accurate to say that its backed by the good faith and credit of these governments? I dont think it is.
Doug: Thats a good point. The average urban peasant in Europe thinks his government is somehow watching out for him. I suppose thats true, at least the way a dairyman watches his cows, or a swineherd watches his pigs. But the euro really is backed by nothing. Though, at the moment, you could say its backed by Mercedes cars and Gucci bags anything you can trade euros for. But thats for a limited time. Im absolutely convinced the euro is going to fall apart it makes no sense at all. It might be convenient for the national governments to then blame the European Central Bank. There will be recriminations and bad feelings all around.
And yet, its had a period of relative success against the dollar, and since phony economics reigns everywhere in the world, its not surprising to see other countries wonder if they can pull off the same scam.
L: Sure: If it worked for them, why not for us?
Doug: Exactly. The thing is that in the case of the Gulf countries, nobody uses those currencies outside of the issuing countries. They are really non-entities and everyone would like to secure the advantages the U.S. dollar has for their own countries. When other countries use your currency as a reserve, or even as their own currency, you can print the things up by the truckload and ship them overseas in exchange for valuable goods. You can essentially export inflation.
Its a subtle fraud thats worked for the dollar and, to some degree, its started to work for the euro. People see that its backed by big countries that are perceived to still be wealthy, so they accept euros with some confidence. Its a colorful, arty, well-printed currency, which comes in denominations up to 500. Arabs would like to see their currency accepted with equal confidence.
L: Sure, why not?
Doug: Hell, Id like to have a government and print up my own currency too. And Chavez and his cronies in these nothing-nowhere countries like Honduras and Cuba would love to have a central bank that gets that kind of respect. The Cuban peso has zero value outside of Cuba, and almost zero value inside Cuba. Cubans dont use it if they can possibly avoid it, and never hold it. Its like the Old Maid card. And thats within a police state, where everyone has been indoctrinated over three generations about how their governments paper was actually better than gold. Lenin quipped that its best used for constructing urinals in an ideal socialist world. And of course if youre very wealthy, or a fool, you can certainly use it that way.
But its not going to work. I guarantee that where these things dont turn into total disasters, they will come to nothing. Anyone who is holding assets in sucres or gulfos, just like euros and dollars, is going to be left with nothing when the game of musical chairs stops.
Look at the sucre. Its supposed to be for trade between the participating countries. They wont actually issue paper money or coins. If they are just going to use it to settle trade between themselves, its just an accounting gimmick. The whole thing is ridiculous. The first trade in the sucre is supposed to happen between Venezuela and Cuba for a shipment of rice, any day now. What of real value could the Cubans possibly use to pay for this? They produce absolutely nothing but sugar and cigars.
L: So Instead of paying with sugar and cigars, theyll pay with sucres, which they got like imaginary monopoly money at the beginning of a game? And the Venezuelans will take these and use them to buy something really exciting from Bolivia?
Doug: [Laughs] Yes, perhaps a boatload of alpaca wool sweaters. The whole thing is ridiculous. Its really nothing more than a bunch of bankrupts passing IOUs around to each other. They make each other feel as though theyve been paid, when in fact they all have nothing.
We have to start by asking: What is a currency?
The answer is that a currency is a government substitute for money.
This originated in the practice of private banks to issue bank notes. Youd take your gold to a bank, and the bank would issue you a paper note attesting to the gold you had on deposit. Why would they do this? Because its more convenient to carry a paper in your pocket than a large amount of gold. Thats how this started, with bank notes that represented real money in storage.
And then, as governments took over the function of banking with their central banks every country has a central bank now they, too, printed up bank notes (currencies) that represented gold on deposit. After a while, people seemed to forget that the currency only represented value and had no intrinsic value of its own, and governments were able to stop backing their currencies with anything at all.
Thats how the modern financial world works; its entirely based on nothing masquerading as something of value.
L: I guess its a cultural thing, like a witch doctor whose spells are backed by the full faith and credit given him, which is indeed powerful in a society that believes in them. Because everyone believes, when he says certain things will happen, they do, and people accept his powers as real. But he does not, in fact, command any magical forces, and the paper currencies people accept all around the world do not, in fact, represent any real value. At some point, reality asserts itself, as when the witch doctors powers fail in some vital task. That may be whats happening to paper currencies in the world today; if the U.S. dollar follows the Zimbabwe dollar, the whole paper faade may be torn apart, beyond any repair.
Doug: That could be. Although, while inconvenient in the process, it would be a good thing in many ways. These governments labor under the conceit that printing up more paper will create more wealth. The truth is that it does just the opposite, because the inflated money supply sends false signals to the market, and people build things, buy things, invest in things, etc. that they would not do without that false information. Thats how governments distort economic decision-making and create massive misallocations of capital.
L: Have you seen that YouTube video on Chinas empty city?
[Ed. Note: http://www.youtube.com/watch?v=0h7V3Twb-Qk%5D
Doug: Thats a perfect example.
L: Well, monkey see, monkey do is a pretty negative assessment of these new currency ideas, but isnt there a positive side? Not that theyll actually work, but that they might hasten the collapse of the paper charade?
Doug: It certainly is a sign of the times. It shows that all these other governments, at least, can see the writing on the wall and want to get away from the U.S. dollar. They know that if they keep using dollars and storing them, theyre going to end up holding the Old Maid card, or getting burned by the hot potato, if you prefer. Thats the economic reason. In the case of people like Chavez and Morales, they want to get away from it for political reasons as well. Theres no reason to want to help the enemy by using his currency.
But the Russians are playing it much smarter. Theyve been consistently and significantly building their gold reserves over the last several years. They seem to add substantially to those reserves every month.
For a long time, Ive thought that what will happen is that someone will come out of left field and offer the world a gold-backed version of their currency. It could easily be the Russians, or the Chinese. And if they did it right, making the currency fully redeemable in gold, that currency would become the strongest in the world. As a result, capital would pour into their banking system. And, assuming they made some other reforms, namely cutting taxes and regulation, their economies would become real powerhouses producing sustainable growth.
————————————–
China has been buying up gold and copper in the ground now for many many months. Expect them to continue this trend until they announce a new gold backed currency that will sink the dollar and propel gold to unknown heights.
Got your gold?
http://www.kitco.com/ind/schoon/jan042010.html is the link to the Darryl Schoon article inadvertently omitted from the entry below.
The last sale on gold is $1133.00 as it continues to climb the wall of media doubt up from recent lows near $1075.00.
Linked below is a recent superb article by Darryl Schoon entitled, “The United States of America – An American Tradegy.”
In the later part of his essay Mr. Schoon compares the failures of John Law to the potential disasterous events coming to this country partly at the hands and influence of Obama’s White House director of the National Economic Council, Larry Summers.
Prior to his currently held position, Larry Summers was the president of Harvard University. What Summers did to Harward was a disgrace that Obama should have taken a strong second look at but failed to do so for some reason.
Larry Summers Gambled Away Harvard Billions
Gold closed out the week at $1112.40.
The next time you read some media whore presentations concerning their questioning gold as an investment go to this website:
Evaluating your gold reserves can be done with taking the Average of past production and applying it to evidence of mine able quarts still in available. A core drilling plan can confirm it.
Last on gold is $1099.80.
The industry paints its own picture on how to evaluate a gold property. As Mike mentions, this is done with stated reserves. Reserves are no more than mathematics applied to core testing from a lab. The metallurgy of dealing with complex ores could be complicated. Stated reserves are not an exact science. Extracting infill proven ore from a blocked out area even has its slight variances at times when receipts come in from the milling process, sometimes better, with other times not as good as expected. On balance, it’s the best system in identifying, with some assurances, that gold is present.
Unfortunately for drilling in our gold system here in Alleghany, you can throw out the window reserves because drilling only proves up structure with MAYBE a small or larger high grade hit here and there. Experienced miners in the district are worth more than drilling teams because they have a better nose for gold than the drill bit.
What hinders investment in the Alleghany District comes from different fronts:
1- Our inability to get the District’s story out to potential investors.
2- The State’s complete ignorance as to what supporting a industy will do for creating jobs and increasing revenue. One only has to look to Quebec for a complete mining success story concerning employment and government revenue.
3- Lastly, general concern in protecting shareholder’s discovered high grade gold. Sandor can solve this one.
Jean Guy Rivard the once president of Louvem Gold Mines in Quebec told me that the handling of high grade is a concern of all mining company officials.
Last on gold is $1134.20.
Mined gold totals 163,000 tonnes worldwide: WGC
http://www.chinaview.cn 2009-12-17 00:36:22 Print
SHANGHAI, Dec. 16 (Xinhua) — All the gold mined so far totaled 163,000 tonnes across the world, an official with the World Gold Council (WGC) said here Wednesday.
Albert L.H. Cheng, managing director of WGC’s far east area, said in a lecture about this year’s gold market that 83,600 tonnes of the total amount had been used in making jewelries, while individual investment activities accounted for 27,300 tonnes.
Gold reserves held by countries occupied 28,700 tonnes and 19,700 tonnes went to industrial production or other uses, he cited statistics from WGC as saying.
An estimated of 26,000 tonnes of gold deposit remained undeveloped, and the resource will run out for 10 years based on the current mining speed, he said.
You have to drill an assay hole in the bar. (Not in the standard location.) Most often tungsten carbide is used. When the assay drill hits it, the drill glows red hot.
The gold mines of this Company have produced about 100 tons of gold. Conservative geologists are comfortable reporting that as much remains within our boundaries and accessible. Over the years geologists have written that as much as 80% of the gold deposited here remains unmined.
Let’s use the conservative opinion. Assume the gold remaining estimate below is correct, our properties have .4% of the gold left unmined on earth. Whoopee! Now here is why the established investment community shies away from the Sixteen to One…we do not report proven reserves. The first question I have been asked over the years by members of the establishment when discussing our mine is, “What are your proven reserves?” My answer is zero because when we see gold we mine it and it goes into inventory. Most companies misrepresent their reserve accounting and the establishment hasn’t a clue how to evaluate the number.
One of my responses to the question is this. “Reserves mean nothing to evaluate this gold deposit. The question you should ask is, ‘ How has this mine and company stayed operating so long without reserves?’” That is the question I want to answer.
The world gold price may be in a lull for a while. Exchanging $1100 for one ounce of the yellow stuff suites me fine. I’m off to the dump. Your comments are welcomed.
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