Gold, Bernanke, Ron Paul & Texas Hold 'em...
The markets are often likened to Vegas casinos. Not
an unfair comparison in my opinion, especially now,
as we are seeing quite the poker game between Gold
and U.S. Fed Chairman Ben Bernanke.
Gold has twice called Ben Bernanke.
And twice Ben Bernanke has blinked.
Twice he has folded and cut rates.
Score: Gold 2 - Bernanke 0
Now Gold has called Bernanke for the third time by
breaking through the $800 barrier, threatening all
time highs and once again...sounding the alarm on
inflation, and out of control Central Bankers.
For true believers in sound and honest money,
the time to ante up has come once again.
You saw Bernanke's press conference yesterday.
He's going to get serious about headline inflation,
he's going to be more transparent in his forecasts,
and in his communications with the street.
Paulson at this very moment is on the hot seat,
being dressed down by G-7 central bankers for
the United States weak Dollar and competitive
devaluation policy.
And we've seen a bounce in the US Dollar, another
shake out in the Yen-carry trade, and talking points
from the usual mouth-pieces like Larry Kudlow that
this new "tough talk" from Bernanke on inflation
means -- no more rate cuts.
So what does all this mean for gold?
Gold has called Bernanke twice and both times
Bernanke has "blinked" - thrown in his cards,
folded his hand and cut rates.
Both times gold has rallied onward and upward.
But, this time... Bernanke is trying a new poker tatic.
"The Bluff"
From blink to bluff.
-- You've seen Bernanke's press conference and his new
tough talk about "headline" inflation.
-- You've seen a bounce in the US Dollar.
-- You've seen a pullback in gold and gold stocks.
-- And you've seen the "new" talking points being
diseminated by the all the usual suspects like
Larry Krulow & Company.
Bugs.... buck up.
Blinkie is bluffing.
Press conferences, tought talk (did you hear the tremble
in Bernanke's voice all during that conference?)and
talking points.
Are you going to fold - into press conferences,
tough talk and talking points?
Are you going to let Larry Kudlow & Company talk you
into believing that Bernanke has suddently grown
a set of sound monetary policy "balls"?
Are you going to fold into THAT?
Are you going to let Blinkie take your chips?
Are you going to let Blinkie bluff you
out of your cards and your golden hand?
The market and America are at a crossroads.
The inflationista's have tried to ignore Ron Paul.
The inflationista's have tried to dismiss Ron Paul.
The inflationista's have tried to discredit Ron Paul.
But, trust me they noticed....
-- that one day $4 Million Dollar fund raising campaign online.
-- Paul's ass-chewing of Bernanke on Captial Hill.
-- the millions of downloads and replays of that video.
-- and the growing groundswell of the Ron Paul Revolution.
They got the message loud and clear from both Ron Paul
and the American people.
That's what Bernake's press conference was all about.
If you think Ben Bernanke and Central Bankers have
had a "Come to Jesus" reawakening about inflation
...please.
Now I'm not saying that you load up on gold and gold
stocks and act like a blind permabull.
Not at all.
I'm saying respect your enemy.
Recognize his tactics for what they are ... tactics.
Know when to take your chips off the table and to
protect your profits... when to stand aside and follow
Napolean Bonaparte's suggestion of:
"let your enemy continue to make his mistakes"
Bernanke has learned twice that "blinking" doesn't
work. But, he's also caught between a rock and a hard
place with this credit crisis. He's using a new tactic,
one of the few he has left.
... the bluff.
Now Poker is a game of many hands.
The key is to know when to hold, when to fold
and when to go all in.
This isn't the time to go all in. This is the time
to think two hands ahead.
If you've listened... your chips are already safely
off the table and in the bank. Let Bernanke bluff,
let him recklessly throw some chips around, let him
talk tough, let him continue to "make his mistakes"
and wait patiently to move "all in" when the time
is right.
This is a time when the technicals are a tell.
... if you're watching the "right" ones.
Yen:Dollar
Watch and follow the Yen.
Gold is trading as a currency in this phase.
Bernanke & Co are trying to attack gold as money.
Let them continue to make their mistakes, let them
hold press conferences and let them talk tough.
Be patient... the time is growing ever near.
Be smart.
Protect those chips... we just got a 180 point HUI
run...do NOT give it back.
Blinkie's now bluffing.
Let this hand play out... it's not "the" all in hand.
There's no battle to be fought here form HUI 380-450,
because we've already won - and BANKED it.
Let them expend their little remaining capital and
resources on regaining this ground that we've already
won...and banked.
There is no battle here.
Re-read that.
This is not the territory we ned to be fighting for.
We've already won this battle...and hopefully,
the spoils are already in the bank.
This is a high risk/low reward environment.
Stand aside.
We've already taken the spoils here... there's
nothig to fight for from HUI 380-460.
Great poker players know when to let their opponent
think their bluff has worked and to patiently wait
for moving in for the kill.
Patience people...
Bernanke is bluffing... tough talk, press conferences.
Yada, yada, yada... let him talk his talk, because
he's never walked his talk.
Trust me - his knee's are wobbling... because he knows
what's behind the curtain... and it ain't pretty.
Let 'em bluff... our time will come.
Mo later,
S.O.T.B. |
