Literally Sick To My Stomach
***WARNING! THE FOLLOWING POST MAY CONTAIN PROFANE LANGUAGE AND NAUSEA-INDUCING GRAPHICS. VIEWER DISCRETION IS ADVISED.***
Seriously, I feel sick to my stomach. So disgusted I could puke. As I try to write this post, I really don't even know where to start.
Let's start here: This Fed nonsense. Did I miss something? What, exactly, did The Bernank say 2 weeks ago today that caused an ounce of physical gold to suddenly be valued $100 less? And today, what, exactly, was in the FOMC minutes that caused an ounce of gold to lose almost $40? Anyone? Anyone???
All I know is what I heard and what I heard was that the Federal Reserve remains committed to this low interest rate environment through late 2014. THAT'S ANOTHER 30+ MONTHS! All the rest is bullshit, SPIN and MOPE. And it goes without saying that this is true. What other choice do they have? As discussed here ad nauseam, INTEREST RATES CANNOT BE ALLOWED TO RISE. Not now, not next month, not next year, not ever! Period. End of story. Hallelujah. Holy shit. Where's the Tylenol?
Remember and NEVER FORGET that even Status Quotians are smart enough to buy gold during periods of negative real interest rates (Please re-read for a primer: http://www.tfmetalsreport.com/blog/3325/case-you-missed-it .) and the Fed just reaffirmed today that real rates will remain negative for the next 2.5 years! THIS IS DECIDEDLY PM BULLISH, NOT BEARISH.
Ah, but you see it doesn't matter. All that matters is what The Fed wants. They are in charge. They are the market. They will make it do whatever they want it to do. The must manage perceptions. They must get their media lapdogs and shills to SPIN and deceive. The only thing that matters is this:
Google "Bernanke Wealth Effect" and start reading. You'll find that The Bernank is a BIG BELIEVER. He also knows that the ONLY WAY OUT of the collapsing keynesian ponzi is through the wealth effect and growth. You and I know it ain't happening but ole Ben's gonna try. So rates MUST STAY LOW. Stocks MUST GO UP. And gold MUST BE KEPT IN CHECK to help maintain the illusion that all is well.
The problem is: It ain't working. People aren't stupid. Well, let me re-phrase that...not everyone is stupid, particularly the very wealthy and the leaders of China, Russia, India et al. THEY SEE THIS FOR WHAT IT IS. They will continue buying gold regardless of the paper game bullshit on the Comex. Jamie can order Blythe to dump as much paper gold as she can create but all she's doing is disconnecting paper from physical and confining their fate to irrelevance.
As you know, I'm on the record as claiming that the lows of this recent "manufactured correction" were reached last week and I've still got a shot at being right. Gold double-bottomed this afternoon and silver never broke 33. This may have been IT and sanity may soon return. We'll see. In the meantime, please avoid committing any significant money to paper trading. Your only option is to stack physical metal. Period. Trading paper with leverage is an almost certain way to bankrupt yourself, particularly in gold and silver where the only market participants remaining are WOPRs and the Cartels that perpetually "game" them for profit. This may sound like strange advice from a guy who is about to begin charging a small fee for "trading advice" but IT'S TRUE. I beg you NOT TO TRADE ON THE COMEX. If you want to take my TA and fiddle around with 100 shares of AGQ, fine. However, anyone attempting to "trade" on the Comex is foolish to the point of being downright, Forrest Gump-level dumb. Don't do it.
To that end and to graphically illustrate all of the above, what do you make of these four charts? What happened right at 3:26 EDT? Something must have happened. Why would all four of these move down in unison? Then ask yourself, who has the power to make this huge, basket trade? Who has this level of money? Not only to affect this trade but to absorbe the loss generated by literally DUMPING on these markets afterhours? Hmmm. SPIN/MOPE/SUPPRESSION?
Anyway, as mentioned above, the lows from last week DID MANAGE TO HOLD this afternoon. We would still appear to be very near a bottom in paper price. Please use this weakness to buy more physical.
And, if, in the end, you are looking for overt QE3, it appears to be getting close. As we've noted since late last year, the clue to the initiation of overt QE is the action in the 10-year note and the long bond. Well, both appear to be rolling over and breaking down. IF this continues, a formal Fed announcement will soon follow.
Lastly, Jim Comiskey phoned me over the weekend to inform me that he was onto something no one else was talking about and he included it in his Friday video. I suggest you watch it. The action starts at about the 10:00 mark. (Nice work, Jim!)
Interestingly, Turdite "Reach West" watched this and then went in search of the same online document and found that important parts had been redacted. NO! REALLY?!?! IN AMERICA?!?!
Submitted by ReachWest on March 13, 2012 - 11:44am.
In Jim Comiskey's video of March 9th (referenced by Turd in comments above), Jim talks about the fact that 2 NE refineries have shut down due to [the companies] being unwilling to comply with new EPA regulations.
Jim is referring to the EIA report, dated Feb 27 [PDF Linked Here]. At about 11:35 in Jim's video, he reads from the first paragraph on page 1 of this EIA Report that two refineries were closed ".. due to EPA regulations, that the companies refused to meet .."
Now take a look at that EIA report, that particular bolded line is no longer in the paragraph. It appears that they have REMOVED all the references to EPA regulations being the culprit for the Refinery closures, from the report.
Someone at the EIA must have caught hell for telling the truth - Very interesting.
So, put it all together and I am just sick to my stomach. It's all bullshit and lies. Anyone that tries to tell you otherwise is either simply naive or stupid. Your government lies. They all cover for each other and try to blame anyone and everyone for their transgressions for the simple intention of maintaining their power. The Fed, at the behest of the politicians and in an obvious attempt to maintain their own power, lies and steals and cheats and manipulates and SPINS and propagandizes to the extent that there are no longer and free any fair markets anywhere. Everything is simply controlled and massaged for the expressed purpose of creating an illusion of normalcy and prosperity. WELL DON'T BUY IT! PROTECT YOURSELF AND DO IT NOW. KEEP STACKING PHYSICAL METAL AS IT IS YOUR ONLY TRUE SOURCE OF FINANCIAL PROTECTION. IGNORE THE MEDIA AND MARKETS. LOOK AWAY FROM THE LIES. BELIEVE IN YOURSELF AND TRUST YOUR INSTINCTS. PERSONAL GOOD JUDGMENT AND WISDOM ARE YOUR ONLY HOPE.
God help us all.