Tuesday, October 21, 2008

As We Approach Elections:


1. As we approach elections everything possible is being done to keep equities from total implosion.
2. As we approach elections everything possible is being done to keep the hollow US dollar firm
3. As we approach elections everything possible is being done to keep gold under control to assist in keeping the dollar firm.
4. Gold is NOT a commodity. It is a currency.
5. There is an appearance of involuntary liquidation in gold as hedge and gold funds are pressed by redemptions and needs for capital to pay off investors.
6. Gold never changes. Things change in price comparison to gold, so therefore you can jump up and down on the barometer but that will not change the circumstances it is reading.
7. The means of keeping all things in check is to demoralize those whose positions oppose the goal while showing some sunshine to those who wish to keep their positions.
8. Nobody on earth can prevent the CONSEQUENCES of Chairman Bernanke and Secretary of the Treasury Paulson's attempt to offset the unavoidable CONSEQUENCES of the same actions taken by the central bank and treasury of the 1930s.
9. The different monetary action now in the degree applied will have their own and different CONSEQUENCES in the degree of economic impact.
10. The dichotomy between the bullion supply/demand picture and the easy to manipulate paper gold market continues. Pedro says: "A "friend" of mine was in Zurich yesterday. Aside from the fact that there were no gold coins available in one of the major centers of the world gold trade, it was also noted that there are no longer any large safe deposit boxes available at Credit Suisse Banhofstrasse."
11. Here is where we are headed to some degree, regardless of the manipulation of markets to paint charts at an unprecedented level.

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