slider clearly has an ulterior motive...
he's quite transparent when he overly dramatizes his sermons about precious/base metals (plus the respective shares) speculators...
this flair for the dramatic he has gives him his own sense of god-like appeal, that he is all-knowing about the inner-market workings...
in addition, the way in which he presents his case shows that he is knowledgable about many facets of the commodities and natural resource markets...however, the arrogance which is overwhelmingly apparent in his posts indicates a character flaw...
it is to no one's surprise that slider has a vested financial interest in these markets...he speaks a tune to which he stands to reap some type of gain, whether it's now or later...
make no mistake, slider is out for himself (and the interests of his partners)...what he doesn't understand, doesn't want to accept, and/or doesn't want to inform everyone about is information such as the following:
"Jim’s Formula:
1. First interest rates rise affecting the drivers of the US economy, housing, but before that auto production goes from bull to a bear markets.
2. This impacts many other industries and the jobs report. An economy is either rising at a rising rate or business activity is falling at an increasing rate. That is economic law 101. There is no such thing in any market as a Plateau of Prosperity or Cinderella - Goldilocks situations.
3. We have witnessed the Dow rise on economic news indicating deceleration of activity. This continues until major corporations announce(d) poor earnings, making the Dow fall faster than it rose, moving it deeply into the red.
4. The formula economically is inherent in #2 which is lower economic activity equals lower profits.
5. Lower profits leads to lower Federal Tax revenues.
6. Lower Federal tax revenues in the face of increased Federal spending causes geometric, not arithmetic, rises in the US Federal Budget deficit. This is also true for cities & States as it is for the Federal government.
7. The increased US Federal Budget deficit in the face of a US Trade Deficit increases the US Current Account Deficit.
8. The US Current Account Balance is the speedometer of the money exiting the US into world markets (deficit).
9. It is this deficit that must be met by incoming investment in the US in any form. It could be anything from businesses, equities to Treasury instruments. We are already seeing a fall off in the situation of developing nations carrying the spending habits of industrial nations; a contradiction in terms.
10. If the investment by non US entities fails to meet the exiting dollars by all means, then the US must turn within to finance the shortfall.
11. Assuming the US turns inside to finance all maturities, interest rates will rise with the long term rates moving fastest regardless of prevailing business conditions.
12. This will further contract business activity and start a downward spiral of unparalleled dimension because the size of US debt already issued is of unparalleled dimension.
Therefore as you get to #12 you are automatically right back at #1. This is an economic downward spiral.
I heard all this "slow business" as negative to gold talk in the 70s. It was totally wrong then. It will be exactly the same now.
One thing I know is that we are headed for the short trap of a lifetime in the gold price. Not only has nothing changed whatsoever, but the drama is playing out note for note according to the FORMULA. The FORMULA is absolutely correct.
All this has been helped along the way in preparation for the November elections. With the economy heading lower however the average guy is unimpressed by the new highs in the equity market. As Chairman Volcker said, this is an hour glass situation where the many at the middle of this economy are being buried while the super rich are getting super richer. It will be interesting to see if a bull equity market gets the incumbent legislators reelected.
The entire scenario now depends on corporate earnings as stated in the FORMULA. What is taking place is totally dollar negative as corporate earnings impact the formula. All that support Treasury International Capital flows now is the US equity market. Slowing business will cut earning and tax revenues. There is absolutely no question about that. Business when contracting naturally contracts at an accelerating rate.
First media denied there was any slow down. When the slow down became apparent they declared a soft landing. They are wrong on that as well.
Gold will do what the dollar does inversely, not what the stock market does.
As gold breaks down below December $580 the gold price is in the process of building a bear trap that might be a few hundred dollars.
It is still all the US dollar multiplied many times in the gold price. The energy market and gold market are liquidating bankrupt hedge funds.
Gold is headed to $1650 via the magnets." |
