J.T., it's as plain as the writing on the wall...Derivatives will implode, JPM and the CBr's and Gold cartel, will be the first one's carried off kicking and screaming, FRE/FNM deriv. leveraged beyond their means and I seriously doubt they know what they've gotten into, DYN the other half of ENE, not to mention the "strong dollar" which is getting it's Due, add to that the central american cry for me Argentina saga, Along with Shrub begging Prince Abdullah not to use oil as a weapon(lol) for our Backing of Sharon's hard line... again... never mind the real reason we went into Afganistan and all the freedoms being sweeped away under the auspices of "fatherland security...Don't get me wrong, I'm american and this is a great Country, but, man our foreign policy and the continuing lying by the BLS on a month to month basis has got to go...this can only end badly.
this will end very badly.
Bullish gold points;
*Low U.S. interest rates
*A minimal contango
*Producer buy-backs
*High oil prices (WTI crude closed at $27.10)
*Strengthening pound, euro, etc. The dollar continues to swoon and closed at 115.25
*A tanking stock market
*War strains
*hedge book blow-ups
*panic covering of naked call positions
*panic covering of a fraction of the 15,000 tonnes of gold loans outstanding
*Loss of confidence in financial institutions a la Argentina, whose banks open when they feel
like it.
This was sent out today to all the Strategic Investing subscribers after the close.
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The three major market indices (DJIA, NASDAQ and S&P 500) crashed through the 10,000
and 1,700 and 1,300 barriers today with a thud. The dollar was down against the EURO and
the yen while gold made another high in this move closing at $311.40 in New York and for
two consecutive days closed above $305. If the London sage is correct and the Midas from Le
Metropole Cafe, one of the GATA principals, the fuse is now lit for gold to move higher.
Despite a large increase in GDP fueled by inventory buildups, the market shrugged that news
off like water from a duck's back and headed south. |
