"Short gold for 2008" declared the resident geniuses who dare to call themselves "analysts" at everyone's "favorite" brokerage firm, Goldman Sachs, late in 2007. Thanks for that piece of "canny" advice, GS. We wonder what they will do for an encore after taking the grand prize awarded for the year 2007 for making the most magnificently absurd financial prediction for an upcoming year. They may also take the grand prize in that category for the whole freaking decade! What tripe! What poppycock! If you want to commit financial suicide, just do what GS recommends. What a lying sack of horse-balls and horses' asses they are! Note how, after giving this stunning piece of "sage" advice to their clients and to the financial markets in general, they have reduced their net gold shorts on the TOCOM to the lowest level in over two years. Apparently, they have one set of recommendations for their client dupes and another for their insider-trading scum-bags. Just have a little patience, and you will see these criminals get their comeuppance soon enough! Wait until all their imploded offshore assets that they have been carefully hiding come home to roost. Let's see how their profitability looks then!
Proving once again that there is nothing new under the sun, the latest scam by the Fed looks just like the subprime debacle, only this time with steroid injections. Only the parties and the average loan size have changed. The scam remains precisely the same. In the subprime debacle, we had people with poor credit and imaginary income getting mortgage loans they could not afford to repay with encouragement from fraud-inducing mortgage companies and banks aided by overvaluations of real property by compromised and unscrupulous appraisers. In the credit-crunch debacle, we have banks with poor credit or even insolvent with imaginary balance sheets getting discount window loans they cannot afford to repay with encouragement from the fraud-inducing Fed and other central banks aided by overvaluations of subprime derivatives by compromised and unscrupulous rating agencies and investment banks. You would think that the US public would eventually catch on to these frauds, which are repeatedly perpetrated against them, but they continue to go their merry way like everything was fine and dandy in their Goldilocks Matrix. Even the Christian Right are clueless as they continue to fall for the so-called two-party system that has but one agenda, supporting candidates hand-picked by the Illuminati who hate their guts and would crucify every one of them if they could get away with it. Those on the Christian Right think they have done much good for the people, and to a certain extent they have, but they have intentionally and completely ignored or have totally missed the most important and crucial issues of our time, choosing instead to take the path of least resistance, being afraid to ruffle the feathers of the diabolical, reprobate sociopaths who they, by their lukewarm attitude, have allowed to destroy our once great society that was built on Christian values. We would not want to be in their shoes on Judgment Day. We continue to report the truth in amazement at the stunning levels of stark ignorance and vapid stupidity which continue to be demonstrated by the citizens of the late, great, US of A despite the glaring deceptions being perpetrated against them by the Illuminati.
Note how the system of serial rip-offs has progressed and where it is now headed. The grand deception of the Illuminati all starts in 1913 with the passage of the Federal Reserve Act and the Sixteenth Amendment which added the income tax. Our industrial-military complex is then set up so the Illuminati can enjoy the riches generated by perpetual wars for perpetual peace and perpetual profits commencing with World War I and continuing ad nauseam right through to the current Iraq and Afghanistan Wars. Note that World War I was started in 1914, in the very year following the passage of the Federal Reserve Act and the income tax. Next, our government is ripped off. The US was bankrupted in the Great Depression by the fraudulent monetary policy of the recently formed Federal Reserve and gold was confiscated to help repay our debt to the reprobates. Then comes the rip-off of the middle class, and we must say they did a thorough job. They started by taking us off the gold standard so they could inflate our wealth away and tax us to death. Profits from inflation went to big banking in the form of interest paid on money generated out of nothing through the fractional reserve banking system, which is nothing more than a huge Ponzi scheme, while our tax dollars went to line the pockets of fascist, government-subsidized big business, even during peacetime. Women were forced to work due to the loss in value of the dollar and the Illuminist promotion of feminism, thereby destroying our family structure. Alternative forms of energy were suppressed by the Illuminati who funded environmentalists to attack the use of coal and to oppose exploration of areas containing large oil reserves, who orchestrated false-flag attacks on nuclear facilities and who suppressed patents for alternative energy devices by threats or otherwise against the inventors in order to keep us dependent on the fascist military and industrial complex and big oil, thereby guaranteeing a constant flow of profits by destroying anything else that might compete with them or reduce their power. The next step was to hit us with free trade, globalization, off-shoring and outsourcing to break our unions, take away our good jobs and replace them with menial, low-paying jobs. This decreased the cost of labor and material for, and increased the profits of, the big fascist transnational corporations owned by the Illuminati. Then they had Wall Street dupe the baby boomers into spending their retirement savings on what were mostly worthless tech stocks in the dot.com bubble, as insiders sold off their holdings at the top of the markets and made monster commissions and profits. Next came the real estate bubble to ward off the recession that would have resulted from the breaking of the dot.com bubble, where profits and commissions from loan originations and syndications bloated the coffers of Wall Street and of the Illuminists who run the banks, mortgage companies, investment banks and rating agencies, leaving hapless homeowners in the lurch who overpaid for their homes, who used them like ATM machines and who now face foreclosure. This was accomplished by the creation and use of a real estate mortgage credit system rife with fraud from top to bottom, which we have described in great detail in previous issues. This system was used to generate consumer demand in the form of real estate appreciation caused by speculation resulting from lax credit standards and low interest rates, thus lining the pockets of big fascist corporations run by the Illuminists. This is how they ripped off the middle class's real estate wealth and appreciation, which was the only asset they had left after everything else was stripped away as just described above. The US middle class is now totally broke with a negative rate of saving and with debt up to their eyeballs. Our government is in exactly the same position as our middle class, having been bankrupted and then milked dry through wars, social programs, profligate spending, pork, an out-of-control national debt caused by deficit spending and by an unbalanced budget, not to mention a trade imbalance that puts us in debt to other nations at an ever-increasing pace with each passing day.
We have now reached the point where gold has exploded past its all-time high of 850, having gone as high as 869.10 already in thin trading before the large specs swing fully back into action. Technically speaking, there are no longer any upper limits. Gold is now in virgin territory with fundamentals so good that if you had asked us to come up with a more bullish scenario for gold only a year ago we could not have come up with a more bullish situation than we now have. The cartel, in a gloriously pitiful attempt to stop gold or to at least slow it down this week, has now expended its last market-crashing power by use of yen hits, having used up the remaining 500 or so Dow points they had at the beginning of the week. Gold just yawned and was spectacularly unimpressed by all this blather. The cartel stopped the resource stocks from making new all-time highs (barely), but they have only delayed the inevitable for a few days. If you consider the jobs report of only 18,000 new non-farm jobs with 5% official unemployment, this is the same scenario we saw last year when the Fed was setting up for a surprise .5% rate decrease. Such a decrease would send gold past the ozone into the stratosphere even if February gold futures are rolled over at the end of January. In addition, with the economy going into a recession and consumer spending going into the tank while the subprime and credit-crunch debacles continue to deteriorate and a derivatives thermonuclear meltdown looms, the dollar has not got a snowball's chance in hell of putting on any but the briefest and weakest of rallies. So now it would appear based on all the foregoing that the cartel has shot its proverbial wad, leaving only two courses of action.
First, the cartel can try to press a further yen-hit on gold by unwinding the carry trade further and by creating a bigger liquidity drain that will take the stock markets beyond a 10% correction, thereby plunging them into a 1929 crash scenario from which they may never recover and which may send gold to the moon as a safe-haven from the ensuing stock market bloodbath. This hardly seems like a viable alternative for several reasons in addition to gold's potential for a safe-haven explosion.
First, the cartel is out of gold to sell in support of this move. What gold is left is being held by banks for dear life as Anglo de-hedges. Second, the large specs have protective derivatives to profit from any downturn, the greater the downturn, the greater the profit. Third, the cartel would then be unable to have their final run-up and rip-off like they did in the dot.com bubble because it would be too expensive to resurrect the stock markets even assuming that such a stock market resurrection was possible. Fourth, and most importantly, this is an election year, and the GOP is toast if the stock markets go down. There are those with selfish interests among the Illuminati who do not want that to happen because they want to stay in power themselves or provide a fighting chance in the upcoming elections for those they wish to put in power. Also, this could send Ron Paul's campaign into overdrive.
The second alternative is to simply give up the gold battle, weaken the yen, and everyone have a party. They could still try to put a lid on gold under this alternative using gold leases and sales, but they do not have enough left to do anything but slow it down slightly. This would bring them to the final stock market blow-off top they are looking for so they can exit using Project Turquoise leaving the sovereign wealth funds, pension funds, insurance companies and hedge funds holding the proverbial bag as the stock markets plunge into oblivion. They wanted to use their sale proceeds to buy gold on the cheap, but the credit-crunch, caused by their own greed, has cut them off from utilizing that alternative by causing everyone to flee to gold as a safe-haven and by weakening the markets to the point where only the combined intervention of the PPT and carry traders can keep them from exploding and going down in flames, much less propelling them further upward. Even now, the Fed is going to further multiple auctions and increasing the amount of loans to be auctioned from $20 billion to $30 billion, so the system is still locked up and may never recover again. It may be now or never for the cartel and its hopes for a stock market blow-off top.
The cartel is trying to rip off the sovereign wealth funds, pension plans, insurance companies, hedge funds and other big players mainly through two diabolical methods. First, there is the final blow-off top we just spoke of previously where the insiders will jump out the back door at the last minute without anyone's knowledge using the dark pool of liquidity provided by Project Turquoise. Those left holding stocks after the insiders bail will find that they own little more than an empty shell that has been drained of assets by corporate raiders, or by losses sustained due to hyperinflation, high interest rates, recession, depression, derivatives downgrades and losses incurred when derivatives are marked to market, not to mention potential losses from credit default swaps and interest rate swaps that may occur in the inevitable derivatives washout that will make the subprime debacle look like a tiny blip on the radar screen. Second, the cartel is using devaluation of the dollar to force some of these entities to invest in the US, with any unused dollars being useful for little more than a bonfire when the dollar finally crashes. If not invested in hard assets, stocks, bonds, derivatives and/or commodities, hyperinflation will render dollar-denominated forex reserves worthless. Once this money is invested, it is subject to the final rip-off using Project Turquoise and/or to ensuing devaluation in the inevitable depression to follow. And the ensuing depression will not only push down the value of hard assets, it will bankrupt most of the surviving companies. No company is sacred, not even the Fed, because some of the Illuminati have secretly stashed away tens of thousands of metric tonnes of gold and they will use this to establish a new currency and to buy assets from old bankrupted companies, be they central banks, transnational corporations or otherwise, at fire sale prices with the idea being to glom all the assets and reform them into new bigger banks and bigger companies that will form the core of the new world government and corporatist fascist system - order out of chaos! Even many of the Illuminati may not survive because they have bungled their plans for world government and a world economy big-time! So buy gold, silver and their related assets or prepare to get vaporized!!! Yes, Russia, China, Japan, the Orient and the Middle East - that means you too!!!