(This article by Bill Murphy starts at post #410 and reads in sequence to #417)
Time and time again you have heard me say that $290
gold was key, because most of the gold loans were
rolled over at around that price, or a bit less, over
the past two years. A move above that price by more
than $10 makes the gold loans expensive. A $50 move up
is a catastrophe for the gold loans. At $310 gold the
gold carry trade is already becoming a bummer, as
happened last fall before the market was cajoled back
down by the orchestrators.
That means that, for the moment, the manipulation crowd
has lost control again -- maybe for good this time. If
I am right, only a staggering central bank bailout will
save big gold shorts.
Can that happen, a la the obviously politically
inspired Bank of England announcement? Sure, but GATA
is breathing down their throats this time. Congress is
starting to be all over this scam. If the U.S.
government increases its role in the gold market
manipulation, there will be hell to pay down the road.
Someone will most likely have to pay a price for the
ruse by going to go jail at some point.
Just today GATA received this:
"I am an investor who has a number of positions in the
precious metals. Thus I have an interest in the success
of GATA in regard to the possible manipulation of the
gold market. To that end, I may be able to assist your
efforts.... I represent my friend Speaker Hastert in
the Illinois General Assembly.... I know Denny is a
very busy man, but I can probably arrange time for you
and possibly other GATA members to meet with him and
prevail upon the speaker of House of Representatives to
get answers for the questions you have raised."
That is on top of Senators Lieberman, Dodd, and Gramm
and other congressmen all asking the same questions and
looking for answers.
It is not just Congress that has been made aware of
collusion in the gold market. Dow Jones Theory guru
Richard Russell said this on Friday to his subscribers:
"Remember this -- rising gold is the LAST thing the Fed
wants to see. Rising gold, though nobody seemed to have
noticed it today, will be in the financial headlines if
it continues. Rising gold is the market's way of saying
that inflation is in the hopper. Greenie knows what
rising gold means, and if gold continues higher, you
can most definitely expect higher rates out of the Fed.
Rising gold is a red flag waving under the nose of the
Green man.
"Can the Fed stop gold from advancing, maybe through
sales of futures via the Exchange Stabilization Fund? I
don't think so, not if the primary trend of gold is
actually in the process of turning up. The situation is
now very interesting. And gold, it seems, has finally
awakened from its long, long sleep."
This from hawkeye Marshall Auerback in London:
"Read what the largest bond fund manager in the world,
Bill Gross from PIMCO, has to say in his Feb. 3
commentary about Greenspan underwriting stock markets.
See particularly Pages 3-4 on their web site:
pimco.com:
"'Stocks and therefore bonds are the object of policy
and not the tools of implementation.'"
Bill Gross virtually says that Greenspan has rigged the
bond and stock market. This is extraordinary copy. If
Gross is correct, is it not clear that government is
manipulating the gold market too?
Gross'sstatements are to the stock and bond market what
GATA's statements have been to the gold market.
Almost lost in the commotion on Friday was that silver
rallied 32 cents to close at $5.56. The sky could be
the limit for silver as I have been saying for a year.
This strong rally is of particular note because it may
signify that the manipulation crowd is in trouble. On
the late-September runup, silver went higher but with a
great struggle.
Silver was no great shakes Friday either until the
Placer Dome news broke. Then it rocked. That is what
makes me think that some members of the collusion crowd
knows the jig is up and may have decided to abandon
their silver scheme of selling silver on rallies so as
not to encourage buying in the gold market.
Not only was silver strong but the CRB closed in high
ground at 213, a new high for the move. March crude oil
closed in contract high ground at $28.70 per barrel
with the crude products just as firm. The average
hourly earning index and prices-paid component are also
on the upswing. All of this has inflation watchers
rightfully concerned.
This will make any manipulation of the gold market and
holding down the gold price more difficult.
(This article is continued on post #416) |
