To: TheSlowLane who wrote (138244 ) 12/1/2008 12:27:34 PM From: Proud Deplorable Respond to of 313013 The Exchange Stabilization Fund Today Posted: Dec 01 2008 By: Jim Sinclair Post Edited: December 1, 2008 at 1:16 pm Filed under: General Editorial Dear CIGAs, In all probability, today’s action in Gold confirms that the Fed’s last real meaningful weapon to fight deflation is coming into play very soon. This effort is to disqualify gold as a currency. I question the intelligence of this from the deflationary/inflationary perspective that is so important to the Fed right now. As I have told you multiple times, there is no such thing as the Exchange Stabilization Fund in the sense of employees with real names, faces and addresses. The Exchange Stabilization Fund is nothing more than an account at a major international investment firm known well to you and represented on the floor of the COMEX by name. It is prominent in the COT figures. The Chairman of the Federal Reserve, the President of the United States or their designee, runs the Exchange Stabilization Fund. This is why the commercial dealers get the inside information on the gold price and currencies short to medium term, having eyes to see, ears to hear and a back office that must know. This is why the paper exchange can do what they have done today as long as the COMEX warehouse remains full to back them up. Today the public has the standard definition of deflation on their mind only, being taken advantage of by the Exchange Stabilization Fund to fain a story that gold is not a currency. The paper gold COMEX fellows who are the floor brokers for the Exchange Stabilization Fund and having this information are extending the drop to the best of their ability. They do trade even on the day, you know. Gold is a currency. It has been a currency since the beginning of time. It will always be a currency. The role of gold as the primary currency will be in place no matter what the efforts are made to cloud the issue. Regards, Jim