This is a good one from JS's site:
A message to the Bank of Japan from Comet Jessee on the announcement of its record 71 billion USD intervention in January to defend the Yen:
One day a farmer's donkey fell down into a well. The animal cried piteously for hours as the farmer tried to figure out what to do. Finally, he decided the animal was old, and the well needed to be covered up anyway; it just wasn't worth it to retrieve the donkey. He invited all his neighbors to come over and help him. They all grabbed a shovel and began to shovel dirt into the well.
At first, the donkey realized what was happening and cried horribly. Then, to everyone's amazement he quieted down. A few shovel loads later, the farmer finally looked down the well. He was astonished at what he saw. With each shovel of dirt that hit his back, the donkey was doing something amazing. He would shake it off and take a step up. As the farmer's neighbors continued to shovel dirt on top of the animal, he would shake it off and take a step up. Pretty soon, everyone was amazed as the donkey stepped up over the edge of the well and happily trotted off!
Life is going to shovel dirt on you, all kinds of dirt. The trick to getting out is to shake it off and take a step up. Each of our troubles is a steppingstone. We can get out of the deepest wells just by not stopping never giving up! Shake it off and take a step up.
Remember the five simple rules to be happy:
1) Free your heart from hatred - Forgive
2) Free your mind from worries - Most never happen
3) Live simply and appreciate what you have
4) Give more
5) Expect less
Now ......
Enough of that . . .
The donkey later came back and bit the the farmer who had tried to bury him. The gash from the bite got infected, and the farmer eventually died in agony from septic shock.
Moral from today's lesson:
When you do something wrong and try to cover your ass, it always comes back to bite you. So, if you think the Japanese Central Bank, The Fed, The OTC Derivative traders are going to get away with what they are doing to money and therefore to the hard won assets of people you are an ass.
Sunday, February 01, 2004, 7:32:00 PM EST
Whose in Command?
Author: Jim Sinclair/India Business Times
The old Gold Community will not have any impact whatsoever on the new players in the gold market. The deeply entrenched colonial nature of the old West dies hard. It is the Asian/Islamic interests that have the gold market firmly in their command.
You can be sure that this correction is only the shaking of a tree - courtesy of the leaderless old Gold Community who want to get their gold apples cheaply. See the interesting story below about two developments that could have a significant impact on gold demand.
India, Japan may push gold higher
G. Chandrashekhar, India Business Times
Mumbai, January 31st
A BULLISH sentiment has been added to the already firm gold market with announcements coming from two major nations — India and Japan in quick succession.
Notwithstanding the fact that the Euro-dollar direction will remain the focus of most short-term speculators, gold is likely to find increased fund support, according to experts. The Government's decision to allow direct import of gold and silver is seen as a shot in the arm for the bullion market. As
part of the package of reforms designed to stimulate exports, the Government has decided to allow jewellery exporters, domestic bullion traders and citizens to import gold and silver directly without going through intermediary agencies.
Until now, only 15 nominated entities such as banks and State-run trading companies could import bullion. "There are two possible positive developments in terms of Indian import demand for bullion," said Mr Kamal Naqvi, precious metals analyst with Barclays Capital, "namely reduction in transaction costs for gold imports and expansion of letter of credit for bullion imports."
The nominated agencies will no longer be able to charge a premium (0.5 per cent to 0.7 per cent per transaction) and importantly, import demand will spread to more centres around the country, as it will no longer depend upon a nominated entity having a regional office.
The other bullish news for the gold market was that "Japan is cautiously considering an increase in gold reserves." Japan has $10.24 billion worth of gold, or 765 tonnes (24.6 million ounces), a proportion of 1.5 per cent of its total reserves.
more...
Saturday, January 31, 2004, 8:14:00 PM EST
With Friends Like These, Who Needs Enemies?
Author: Jim Sinclair/Richard Russell
Of all the so-called “Old Timers” with the industry credentials to comment on gold, I know of only two true friends of the noble metal. That being said, they are also friends of the Gold Community.
There is no technical evidence anywhere that warrants the degree of pessimism we are seeing this weekend within the Gold Community of old. Could it be that this bearishness is the result of having missed the huge move in gold since $342? The answer is an unqualified YES!
From my viewpoint, anyone who suggests a deep and long reaction in gold and an even deeper one in gold shares without significant technical evidence may in fact be a greater enemy of gold than the Cartel.
In the case of the Cartel and Andy's Army, they never pretended to be anything but what they were. They made their views public and risked their reputations and pocket books in the process. That makes Andy Smith a worthy adversary to be respected as we meet on the battlefield in the marketplace.
Today’s Gold Community “pretenders” are the real enemies because they plant the seeds of doubt without evidence into the minds of people who are prone to fear in the first place. These people know exactly what they are doing and why. “Buy my book, subscribe to my service and prosper” is what they are selling. “Come into my fold you helpless children, follow my advice or risk the peril that awaits you.”
Forget the poppycock statements about being "bullish in the long run” but in the meantime “sell everything you own including your core position." That is simply downright bearish and an irresponsible position for anyone who claims to know anything about gold.
It could be that the majority of the old timers have lost their effectiveness, their wits, and are simply out of touch with the reality of the day. Certainly gold is on the defensive but the statements being made by Gold Community advisors this weekend could only be made by those who are short the gold share market. Don't put it past this bunch. I know them all much better than you do.
I am publishing jsmineset at enormous expense for only one reason and that is to protect you from the awful gauntlet you are all being made to run through by the so-called gold advisers who fly a false flag. The Gold Community is peopled with bums like these whose only purpose it is to empty your pocketbooks into theirs anyway they can.
This is a major reason why speaking at gold conferences it now out of the question for me. The conference organizers are paid by the speakers directly and indirectly for positioning, and you get to listen to people who are largely devoid of ethics and see you as nothing more than cannon fodder to fill their bank accounts. Yet you flock to them!
We beat the Cartel because they were clearly on the wrong side of the market. Remember your advisors telling you that COT never fails? What a load of junk. Now, however, the enemy is much more insidious because he proclaims to be a friend of gold. He says, "Yes I am a bull in the long run" while pounding our gold share investments from $342 to $430.30 with their mass mailings and negative commentary.
Gold really has only two friends among those who led the market from 1968 to 1980 and they are Richard Russell and Jim Sinclair. Almost to a person, the others have gone beyond the “Best Before” date on the top of their snake oil bottles.
Who among them has defined the utilization of gold in a modernized and revitalized Federal Reserve Gold Certificate Ratio? Where is the organization dedicated to the platform that only "Gold is Honest Money" and nothing else? We have lost our leaders. It is a fact that the old Gold Community had nothing to do with the recent rise in gold nor will it have any impact on gold’s future appreciation.
The Gold Community of old is leaderless outside of Richard and Jim Sinclair. Trading services belong in huge cap stocks and not screwing up the gold market day in and day out.
What a business this is! The producer hedgers came within a hair’s breath of killing themselves in their greed to hedge gold in order to obtain what they thought was free money. Now the shares of good gold companies are being rained on daily by snake oil salesman that have seduced this small Community into becoming traders in shares without deep markets. Your stocks are down and you know who is killing you this time.
The Cartel and ratio traders are innocent. The funds this time are also innocent. The guilty (advisors) published their compost and you bought it. There is no technical evidence to sustain the degree of rot they are working diligently to inject into the mind of the Gold Community. Their purpose is to undo gold and gold shares to build credibility while flying the bull flag to get more of your money. May they all burn in hell for the manner in which they make their millions.
And now a word from Richard Russell, a man still young and fresh and no where near the "Best Before” date featured on many consumer products:
January 31, 2004 -- This is going to be very short. Last year the Bank of Japan spent $187 billion to buy dollars in order to keep the dollar higher against the yen (obviously, Japan wants a lower yen to render their exports competitive to the US).
In today's Financial Times I read that in the month of January 2004 alone, the BOJ spent an incredible (record) $67 billion again in intervention. That's $67 billion in a single month!!
Despite all the BOJ intervention, the yen remains just off its highs.
This indicates the extraordinary inherent weakness of the dollar. Imagine where the dollar would be if the BOJ hadn't intervened!
What happens to all these dollars that Japan buys? Much of it goes into buying US Treasury bonds -- which is what's holding up the bonds. What about the currency risk in the bonds? That's a risk that both Japan and China are willing to take -- to keep the game going.
All this makes gold look ridiculously cheap. Every major nation is increasing its paper money. The problem with gold is that people still see it as a commodity like zinc or wheat or pork bellies.
The great secret that the central banks don't want you to know is that GOLD IS MONEY. As the dollar declines through time, the secret of gold will become common knowledge -- this will happen as the gold bull market progresses. When people see what's happening to their paper "money," the great rush into gold will begin. We are still in the accumulation phase of the gold bull market.
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