DEZ
Posted by: roguedolphin
In reply to: None Date:2/7/2006 9:21:00 PM
Post #of 35163
Gold and Dollar Market Summary
Author: Jim Sinclair
Tuesday, February 07, 2006, 6:53:00 PM EST
Today’s drop in gold was an attack coordinated by the commercial interest as the top caller had prepared the way either by accident or intention. The success of the attack actually surprised the attackers. Gold’s fundamentals strengthened today, however dollar fundamentals weakened.
Today you witnessed the bull funds breaking everything in the China Shop, but only for a temporary period of time. The volatility in gold is only going to worsen as time passes because it is the smallest market in the world now with the largest players. Hundreds of dollars per day will mark the range of gold within two years.
Selling into weakness and the panic among gold share and future holders was a scene to behold.
You will be receiving special bulletins this evening from the perpetrators that, as Dan explains below, set up gold to take this hit. Remember them well.
Gold will go to $1,650. There is no difference between yesterday and today except those of you with credit attached to your position have panicked.
Here is a quick review:
1. The US consumer is under water, and as long as their credit cards hold out, will continue to suffer from the disease of “Conspicuous Consumption”. This is only limited by credit lines granted.
2. Iran is dead serious in their march to self sufficient nuclear arms capability. Anyone can buy a nuke but few have the resources to manufacture them on an assembly line. Iran is determined to assemble these weapons of mass destruction in quantity. Neither Israel nor the US will stand by as this intention proceeds towards reality. Diplomacy in this situation is utilized by Iran simply to buy time until the deed is done. At that point it will be too late for Israel.
3. Iraq is a rolling disaster.
4. The primary objective of the present military conflict was to instill democracy in the Middle East. This fell flat on its face with the recent victory of Hamas. Saudi Arabia, Kuwait, the UAE and Bahrain will have nothing to do with democracy of any kind as it will effectively expel the kings and princes from their thrones.
5. Cheap oil is history.
6.The Federal Reserve serves the entity that appointed them. Housing, which is the key motivator of the economic recovery, is rolling over. You can be sure Professor Bernanke Fed will liquefy the system at all costs rather than sit by watching tax revenues tank.
7. The Federal Budget is going to grow exponentially.
8. The recent firm dollar is negative for the US Trade Balance.
9. The recent dollar rally is based in hot air and will deflate in 2006, bringing it to new lows.
10. The financial system is now built on a foundation of over the counter derivatives, which as one wise investor said “A mountain of paper garbage”. I might add “felonious garbage”.
11. Today’s treasury issue was disappointing due mainly to a clear lack of overseas central bank buying. This is now a trend and not dollar positive. It will compete against the fallacious viewpoint that a currency vale versus other currencies and gold is a product of comparative interest rate return. In historical comparison it has never been true in current conditions, and will not be true now.
jsmineset.com
Rogue
I swiped the above from here ....
investorshub.com
and from here where it was originally posted ....
Message 22151072
Additionally, see Marc Farber's comments here
in which he sees a steep downturn in stocks due
to an over-bought condition + mutual funds with
record level low cash .....
gloomboomdoom.com |
