Gold May Gain as Fed Pause in Rate Increases Hurts the Dollar

as it stands....I am agian buying GOLD..


looks like the bottom is in..

load up on GOLD Stocks if you have to..



[link to www.rallymonkey.com]

I tell you the bottom is in..


[link to www.buythebottom.com]


click on GOLD,.....for the COT report..


just for fun.....look at oil..


the DOW.....All I have to say is....

Paladin. I'm a silver bug myself, but I've been following your threads with avid interest.

Thanks!

hey Shadow..


[link to godlikeproductions.com]



did you see this....it is making the rounds...

An international financial, economic, political and social commentary.

Published and Edited by: Bob Chapman

US MARKETS

Massachusetts voters in 139 cities and towns, or 1/3 of its communities, will get a rare chance to register their opinion on the wars and occupations in Iraq and Afghanistan when they consider a ballot question on whether the US should immediately withdraw all troops. About 22% of the states’ voters will get a chance to have their say on the issue. The issue has been presented so that voters can express their disgust with the immorality and criminality of the war and the huge loss of life. The American Friends Service Committee says it has to start somewhere and why not Massachusetts. They expect the results to be overwhelming.

The average American family has $3,800 in cash in the bank, no retirement account whatsoever, owes $90,000 on their mortgage and owes $2,200 in credit card debt. We don’t exactly call that being prepared for economic hardship.

A German citizen, Khaled al-Masri, 43, testified this week in a Spanish court that he was kidnapped and tortured by US intelligence agents in 2003, having been flown by the CIA, via Spain, to Afghanistan. Earlier this year the Kuwaiti-born al-Masri testified before German lawmakers and a European Parliament panel.

This is why our Congress and President passed their torture legislation, hoping to cloak their evil in legality.

As scandal after corporate scandal breaks, our new Secretary of the Treasury Henry Paulson, wants to ease or do away with the Sarbanes-Oxley Law, a corporate-governance law. Mr. Paulson wants to curb investor lawsuits and make corporate prosecutions harder so that corporate America can more easily loot American citizens. The revocation of this law is part of Paulson’s package of destroying Medicare and Social Security. Both Republican and Democrat lawmakers want to revise a rule requiring auditors to certify that a company’s internal financial controls are in order. Businesses, which finances these politicians’ campaigns want relief from lawsuits, fewer criminal prosecutions and amend to overlapping state and federal rules. They really want to gut the most important part of the legislation so they can again continue to run roughshod over Americans.

Paulson and corporate America have made their fortunes on the backs of American investors and they want to continue to do so.

The latest statistics from Arizona tell us the price of existing homes dipped 3.1% in Scottsdale from August to September and are down from their peak in June of 9.4%. If you remember this was the market that was bulletproof. Home and condo sales fell 47% YOY. Prices fell as well in Paradise Valley off 3% to $1.62 million.


Read More
[link to news.goldseek.com]

Last Edited by Account Deleted by User on 08/31/2011 08:43 PM

Yes, dollar down = gold up.

The problem is the dollar hasn't decreased since the Fed paused.

There's a floor at 85. It's now pushing 87.

It's considered a safe haven in turbulent times, aka North Korea, Middle East.

Ted Butler of Investment Rarities says, "The total dealer net short position in gold and silver is low by any recent measurement, as the corresponding speculative (gross) long position, particularly in silver, is at lows not seen in years. The concentrated net short position in silver held by the largest dealers has never been greater, relative to the total net dealer short position."

Being kind of stupid and thinking mostly about lunch (I am considering pizza; maybe tacos), so I can only stare at him blankly. After a few seconds, he tries to clarify things by saying "The latest COT indicated [that] the 4 largest traders still hold almost 97% of the total commercial net short position on the COMEX." Again, I have to just look at him with the same dumbfounded, blank expression on my face. With some increasing exasperation, he helpfully explains "This situation, small total dealer overall short position, but super-extreme dealer concentrated short position is unprecedented."

Again he paused, obviously waiting for something important to sink in, but by this time I am secretly even more confused than ever, and I can actually feel a drop of drool forming in the corner of my mouth. Horrified, Mr. Butler hurriedly says "This short position is so large, relative to real world supplies, that it defies economic justification." Slobber is now running down my chin. "It is so concentrated, that it is impossible for it not to be manipulative!" he screams as he runs from the room.

After awhile, it sank in. Buy silver. Lots of it.

****Mogambo sez: If you have gold already, you will be fine. If you don't own gold already, you will, perhaps soon, and then you will be fine, too. If you don't own gold already, you will, and if not soon, then you will be fine, but not as fine. If you don't own gold already, and you never do, then you are, on the other hand, screwed. It's as simple as that. And that’s 6,000 years of history talking.


[link to dailyreckoning.com]

By: The Mogambo Guru & The Daily Reckoning Crew



-- Posted Monday, 16 October 2006



Paris, France

Monday, October 16, 2006

---------------------

*** The five little gremlins that could spook the stock market...many marginal homeowners are hitting the tarmac without landing gear...

*** Gold's correction has just about run its course. Buy some....

*** The empire is running out of fuel...staying out of stocks - and not looking back...and more!

---------------------

Halloween is around the corner...and Business Week's current issue reminds us of five little gremlins that could spook the stock market around then:

* softening in the housing sector

* the threat of recession

* continued inflation fears

* declining earnings

* geopolitical 'hobgoblins'

Readers will notice that these are not the three fundamental problems of the economy of which we spoke about last week...but smaller ones....more immediate ones....the little spooks, not the big monsters.

Take the first. From San Diego comes shocking news: while almost everyone now expects a 'soft landing' for housing, many marginal homeowners are hitting the tarmac without landing gear.

Foreclosures are running ten times - that's 1,000% - ahead of a year ago.

Default notices are being sent out at three times the rate of last year.

Trust deed sales are almost 500% greater than 2005. And the number of defaults that lead to foreclosures, at 35%, is seven times higher than it was 12 months ago.

What's going on? Here's our simple guess. During the last five years, people on the margins - those without any cushion of savings to fall back on in emergencies - have only been rescued from default, foreclosure and bankruptcy by a bubbling housing market and a devious credit industry.

"Need money?" said the lenders. "No problem...how much do you want?"

Now, with property prices flat or falling, the lenders are not so free and easy with their money - and are beginning to wonder how they'll get repaid. And, the marginal, stretched debtor has nowhere to go...but into foreclosure. A lot of houses end up in the hands of the banks, as a result. REO (real estate owned by banks) in the San Diego area has risen six times from a year ago.

Corporate earnings, meanwhile, are also near record levels. But the earnings didn't come out of nowhere. Often overlooked in the workings of a housing bubble is the effect on corporate earnings, which are what is left after a business has paid its expenses. Chief among these expenses is labor. So, if a business can sell more product without increasing labor costs, it can add to its earnings. Typically, wages rise with output. A business needs more inputs of labor in order to increase its outputs of product. It also needs laborers with more money in their pockets in order to buy the products. But a few facts conspired to change the usual formula. Asian labor began doing much of the work - at substantially reduced rates. And instead of relying upon additional wages to increase spending, Americans simply borrowed more. What's more, an increasingly large percentage of U.S. total earnings came from sources that had little extra wage-costs behind them: financing and natural resource production.

Wages remained stable; earnings rose.

But now, if the consumer is no longer able to borrow against his house, he will have no choice but to cut back spending. Then, corporate earnings should fall on two accounts: one, because of reduced consumer spending, and two, because of reduced consumer financing.

Corporate CEOs have already begun to worry about it...a recent survey shows confidence among these executives has fallen to a five-year low.

In such circumstances, of course, recession would not be far away.

As for inflation...what do you expect, when you goose up the money supply year after year?

And to geopolitics...well, who knows what lies ahead?

Now, more news, from our currency counselor:

--------------

Chuck Butler, reporting from the EverBank world currency trading desk in St. Louis...

"With gas prices falling, the consumers should have either - 1.Bought more gas at cheaper prices, or, 2.Used their newfound cash to buy that pretty little sweater they've been looking at!"

For the rest of this story, see today's issue of

The Daily Pfennig

[link to dailyreckoning.com]

--------------

And more views:

*** What about gold? Again, we remind readers that we don't have access to tomorrow's headlines...only those of yesterday. We don't really know what is going on...and if we did, we might not say anything. But it appears to us that gold's correction has just about run its course. Our old friend Mark Hulbert follows the recommendations given by the nation's professional short-term gold advisors. When gold near its recent peak they were strongly advising clients to buy gold - with Hulbert's Gold Sentiment Index registering a 62% exposure. Now, the gold experts are gloomy; the index shows a recommended exposure of MINUS 25%.

All that negativity must be good for gold buyers. Our buying target was $600...it remains $600. Buy.

[Ed. Note: Always wanted to diversify your portfolio with gold, but were intimidated by storage fees? Well, EverBank's 5-Year MarketSafe Gold Bullion CD, is one of the safest - and easiest ways to invest in the yellow metal...and you don't have to go through the trouble of digging a hole in your backyard to store the gold. Click here for all the details:

EverBank's 5-Year MarketSafe Gold CD - available until October 17, 2006

[link to www.everbank.com]

*** Last week, we began outlining the three fundamental challenges facing the U.S. Empire:

1) the empire is going broke

2) the empire is losing market share

3) the empire is running out of oil

We described the first two last week. Today, we take up the third.

So, we return to our fundamental challenge - the empire is running out of fuel.

Stripped of its mottos and slogans, a naked empire is merely a protection racket. It provides security and stability. In return, it demands tribute...either in the form of taxes or a trade advantage of some sort.

In order to remain in business, it has to be able to fight off competitors. And since the advent of the internal combustion engine, the key to being able to do so has been one thing: access to oil. Neither Germany, nor Japan ever had access to sufficient oil supplies. America and its allies did.

As a result, both Germany and Japan had to abandon the empire business and take up honest commerce. Both thrived in the last half of the 20th century, but neither dared re-enter into direct competition with the United States.

What is most menacing to the U.S. Empire is that it no longer has enough secure supplies of inexpensive oil to maintain its supremacy. The Texas fields peaked out 30 years ago. North Sea production peaked more recently, but output is falling fast.

Who has oil? Among the major producers, only Canada can be considered a trusted partner. Of course, even Canada will want full price for its oil. But the other major producers - Arab states, Russia, Venezuela - are either unreliable or actually hostile to the empire.

For the moment, there is little to worry about; the U.S. faces no conventional threat worthy of the name. But the whole empire was founded on cheap, readily available oil. Its military is the biggest single consumer in the world; its citizens consume 10 to 100 times as much energy as Asians; its houses, its cars, its offices, its suburbs and shopping malls, its airplanes and retirement villages all run on oil. What will happen when oil is $100 a barrel...$200 a barrel? The empire itself will begin to wobble.

[Ed. Note: Soaring oil prices certainly are not great for the dollar...or the energy dependent industry...and it causes many stocks to go down. But - for savvy investors, the soaring oil price means all kinds of soaring investments...if you are positioned in the right place. Find out how you can use paradigm shifts like these to build yourself a cushion of wealth:

The Full-on Oil War of 2007

[link to www1.youreletters.com]

*** "I read the Daily Reckoning regularly," began a visitor at the Salon d'Investisseurs in Paris on Friday. "You said you were wrong about the stock market in the last few years...you know, about the way it came back after hitting a high in 2000. But I don't think you were wrong. I think you were right. After the stock market peaked, it was not a good idea to put money into the stock market.

"Yes, stock prices have gone back up - on the Dow - but as you point out, investors are still losing money in real terms. But not just that...you can't do things that are bad investments, even if they do eventually go right. No, I think you were right all along...and I think you're right, generally. An investor has to buy decent investments at decent prices.

He can't speculate on Fed policy and whether it will produce a new boom.

He can't guess that the flood of liquidity, debt and credit introduced by the banking authorities will produce a boom that will lift stock prices.

"Yes, that is what happened. But that is not a good way to invest. You have to invest based on some discipline and some rules. You don't buy stocks with such high prices and such low earnings. You just don't do it.

And if the prices go up...well, that's nice for the stockholders. And good luck to them; they're going to need it. No, you were right all along. I stayed out of stocks...I don't regret it one bit."

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---------------------

The Daily Reckoning PRESENTS: There is nothing funny about debt. But as the Mogambo explains, laughter may be a viable path to True Mogambo Enlightenment...

DEBT, THE DOLLAR, AND SNAKES

by The Mogambo Guru

I have a Hot Mogambo Tip (HMT) for this Bernanke birdbrain: How about not constantly increasing money and credit, which makes the monetary aggregates go up, which makes prices go up, which strains the family budget so that they have to spend more and more (and thus can save less and less) just to stay at a standard-of-living standstill? How about trying that for a change, you Fed morons?

And as if to underscore my fear, consumers now owe so much money that they are even having a hard time going deeper into debt! As astonishing as that sounds, [email protected] reports "consumer borrowing rose at an annual rate of 2.6 percent in August, compared to a 4.3 percent rate of increase in July. Borrowing in the category that includes credit cards rose at an annual rate of 4.2 percent in August, following a gain of 4.7 percent in July." Nevertheless, "Total consumer debt rose by $4.99 billion at an annual rate to an all-time high of $2.35 trillion in August."

As proof, all you have to do is stand around my living room for a few minutes and listen to the family whining about how they are hungry and cold because I can't afford food or electricity this week since I went into debt to get a new set of golf clubs. They say they can't understand my "selfishness", and my "conceit", and blah blah blah. In response, I patiently tell them that I did it because, as Russ Winter's xanga.com quotes Gustave Le Bon from his 1896 book "The Crowd", "The masses have never thirsted after truth. Whoever can supply them with illusions is easily their master; whoever attempts to destroy their illusions is always their victim." I am sure that my poor golf scores have nothing to do with me, a lack of talent or "complete inability to learn", which is the stupid opinion of so many stupid golf teachers. It is all just a matter of having (pay attention here) the correct equipment, as the salesman assured me with his awesome and convincing sincerity.

If you are not into hearing loud whining and crying about my sick, self-absorbed obsession with my personal wants and needs at the expense of my family, then you can just read about the general obsession with wants and needs in the essay "America...Please Keep Spending" by Joe Average at LifeToday.com.au site. He reports that "ACNeilsen recently released the results of their internet survey (of 21,000 people in 40 countries) and announced that Americans had topped the list of 'cash-strapped' consumers who 'Have No Spare Cash'...a whopping 28%! Brazil came 3rd at 23%, Canada came 6th at 19%, and Greece came 10th at 17%."

One reason that these foreigners are in the debt soup is because prices are up, which is because, as Jim Willie CB of the Hat Trick Letter newsletter reports, "Central banks worldwide have grown the money supply in reckless fashion in the last year. The pace ranges from a seemingly modest 8.5% in [the] European Union, a modest 7.5% in Australia, and roughly 9% in the United States. Check this! Money supply growth is up to 18.4% in China, 19.1% in India, and a whopping 23.2% in South Africa.

These are staggering numbers. Without fanfare, Russia has increased its money supply by almost 45%."

And why is this happening? Perhaps Bill Bonner at DailyReckoning.com has hit the proverbial "nail on the head" when he notes, "We did not expect the market to hold up as long as it has. Our error was one of over-estimating the good sense of our fellow man. He is a bigger blockhead than we ever thought. Given the lure of easy credit, ARMs, and 'stated income' lending - he took the bait greedily. Now, he's on the line for more money than any man in history...with no greater income than he had before to pay it off."

He goes on to say that "poor Mr. Typical has not had a wage increase since 1972, according to the U.S. Department of Labor's website. He earned the equivalent of $334.60 a week back 24 years ago. Now, the figure is just $277.96." Hahaha! Welcome to the world of inflation, Mr. and Ms. Typical! What do you think of the Federal Reserve now? Hahahaha! I thought so! Now you are on the path to achieving True Mogambo Enlightenment (TME)!

And when you are paying those outrageous credit-card bills and higher taxes with less real (inflation-adjusted) income, you will more completely understand it when reader Ed informs us that "the word 'usury' in the Hebrew concordance means 'the sting of the serpent' or 'snakebite.'" Thus, he says, "The interest on our national debt, our mortgages, and our credit cards are killing us."

Of course, we were not talking about debt or snakes, but about Ben Bernanke and his bizarre economic theories. Yet, perhaps in another manner of speaking, we ARE talking about debt and snakes. For example, when Axel Merk, of the Merk Hard Currency Fund, writes "In his research about the Great Depression before becoming Fed Chairman, Bernanke identified the strong dollar as one of the culprits that made the Depression more severe." Hahahaha!

The dollar was gold back then, dork! The inflationary stock market excesses were NOT because of an inflation in a fiat currency, but were, instead, 100% a product of the damnable Federal Reserve, creating outrageous amounts of money and credit, and the attendant outrageous amounts of debt, financing outrageous inflation in the stock market and debt markets during the 1920s, which went bust, which created the Great Depression, which came after only 17 years since the creation of the Federal Reserve!

Or am I supposed to take from this that if only those stupid foreigners had not made the mistake of destroying their entire infrastructure during WWI, and then compounded their folly by not letting a bunch of arrogant central bank weenies go crazy with creating excess money and explosive credit to produce their own inflationary "roaring twenties" to bail us out, then everything would have been okay? Hahaha!

But either damned way, this ridiculous bonehead is saying that if the Federal Reserve had been allowed to produce more excess money and credit (to drive the dollar down), to produce even more inflation in the stock market and in the prices of everything else, too, then everything would have been okay, and that the Great Depression would never have happened!

I leap to my feet and exclaim, "This is insaaaaaaaaane! People should be rioting in the streets!"

Well, I thought that was pretty clever (and a fair bit of theatre) but Mr. Merk was not amused by my antics, and simply said, "He has also praised the Japanese ultra-loose monetary policy to fight deflation." Hahahaha!

Another good one! I guess that the dim bulbs in the Japanese central bank are every bit as stupid as our own central bank in believing this monetary-excess stupidity. And so it is no wonder that the Japanese people have not prospered for 15 straight years, that their stock market is still down about 50% from the peak, and real estate is way down, too.

And it is also no wonder that I have as little respect for Japanese morons as I have for us American morons, and for the same reason: Economic stupidity on a grand scale.

Until next week,

The Mogambo Guru

for The Daily Reckoning



[link to news.goldseek.com]

from above...


Corporate earnings, meanwhile, are also near record levels. But the earnings didn't come out of nowhere. Often overlooked in the workings of a housing bubble is the effect on corporate earnings, which are what is left after a business has paid its expenses. Chief among these expenses is labor. So, if a business can sell more product without increasing labor costs, it can add to its earnings. Typically, wages rise with output. A business needs more inputs of labor in order to increase its outputs of product. It also needs laborers with more money in their pockets in order to buy the products. But a few facts conspired to change the usual formula. Asian labor began doing much of the work - at substantially reduced rates. And instead of relying upon additional wages to increase spending, Americans simply borrowed more. What's more, an increasingly large percentage of U.S. total earnings came from sources that had little extra wage-costs behind them: financing and natural resource production.

doesn't gold usually dip this time of year anyway?

yes.....but it has been down for November....think..

from above..

The Fed says the economy grew 2.5% in the third quarter and that it would stay at that level in the fourth quarter. The drag on the economy is housing, which as Fed Chairman Ben Bernanke says is going to undergo a substantial correction, which is lopping off 19% of GDP. Where were all these forecasters in June 2005 when the real estate market topped out? They were all lying to keep the public buying. The Fed is mad if they expect GDP growth to be over 1-1/2% next year and it could be zero. Anything under 2% is recession. Homebuilding will probably fall 25% for the year and 25% to 50% next year. Inventories of new and used homes will remain very high and the wealth effect on consumption will die as will the psychology of higher house prices. The Fed sees a savings increase to 1% to 2%. They are dreaming with the debt out there and the rising unemployment. Real income, even with wage increases cannot grow, with inflation over 10%.

Hiya Paladin,

Yup, its a long-term investment now, but end of year after elections, and Iran / NK tensions, and Yellen at Fed promoting no interest rate increase, housing issues... no way around this ride to the moon !



[link to jsmineset.com]
Posted On: Tuesday, October 17, 2006, 5:37:00 PM EST

Gold and Dollar Market Summary
Author: Jim Sinclair

Dear CIGAs;

The first upside target is the $612.40 magnet.

The paper gold guys will put up a fight at $601-$602 as anything over $600 does not fit their program.

Weakness in energy and a little help from your TIC friends put pressure on gold while the US dollar made no show of strength on the same factors.

Physical gold demand sits at $589 versus December gold at $585. The Battle is won in a bear reaction when the lows are in and that is how I see it.

Hi, Paladin !

I note that gold is holding above $591 and silver at $11.67 in the overseas markets.
What I DON'T understand is why most of Asia is NOT buying gold/silver in light of the nuke threats of North Korea ?
Maybe a second nuke blast ( thermonuclear .. H bomb ) will blast some fear into them. They must (?) realize their fiat never survives very troubled times. I further think another nuke blast today WILL push gold over $600 and silver over $12, NOT to fall back anytime soon.

What's your take ?

Eagle

here we go....hold on

US economic news:

08:30 Sep CPI reported (0.5%) vs. consensus (0.3%); ex-Food & Energy 0.2% vs. consensus 0.2%
Prior CPI unrevised from 0.2%; core rate unrevised from 0.2%.
* * * * *

U.S. CPI CORE UP 2.9% IN PAST 12 MONTHS
U.S. CPI UP 2.1% IN PAST 12 MONTHS
U.S. SEPT. CPI BIGGEST DROP SINCE NOV. 2005
U.S. SEPT. CORE CPI UP 0.2%, IN LINE WITH EXPECTATIONS
U.S. SEPT. CPI DOWN 0.5% VS DOWN 0.3% EXPECTED

8:30 Sep Housing Starts reported 1.772M vs. consensus 1.64M; Permits 1.619M vs. consensus 1.71M
Prior Starts revised to 1.674M from 1.665M; prior Permits revised to 1.727M from 1.722M.
* * * * *

re: the housing starts number from a fellow Café member:

I poured over several homebuilder 10-Qs to prep for the upcoming earnings releases. In the footnotes of every single 10-Q there was a disclosure that each company had amended and increased their bank credit agreements. so despite record inventories, and shockingly high contract cancellations, and increasing declines in order rates, the homebuilders are still building because the banks are giving them the money. what's even more incredible is that the banks are extending credit to the builders despite deteriorating balance sheets and increasing negative free cash flow and increased stock buyback programs AND increased insider sales. WCI insiders alone in the last 12 months sold 16% of the outstanding shares. so as long as the banks will finance housing starts, the homebuilders will build, and sell their stock into market rallies. Don't take my word for it, you can download all SEC docs for free at [link to www.nasdaq.com] . another thought occurred to me and that is, we've seen a couple of homebuilder CEO's discuss the deteriorating market conditions. Given that insiders typically sugar-coat bad news, imagine just how bad the environment really is. You can make that judgement based on insider stock sales in the housing industry, which increase every quarter...Dave in Denver

California Home-Loan Defaults Rise to Highest in 4 1/2 Years

By Daniel Taub

Oct. 18 (Bloomberg) -- California home-loan defaults rose to their highest level in four and a half years in the third quarter as lower sales of houses and condominiums and slowing price gains made it harder for homeowners to sell and pay off mortgages.

[link to www.bloomberg.com]

-END-

07:00 MBA mortgage purchase applications index +0.4% in 13-Oct week
The refi index (5.3%). The average 30-year rate rose to 6.33% from 6.27%.
* * *

10:30 API reports crude oil inventories +8.04M barrels
Gasoline inventories (6.06M) barrels, while distillate inventories (2.56M) barrels.
* * * * *

10:31 DOE reports crude oil inventories +5.02M barrels vs. consensus +1.5M barrels
Gasoline inventories reported (5.22M) barrels vs. consensus (200K) barrels.Distillate inventories reported (4.55M) barrels vs. consensus (800K)barrels. November crude is trading higher in reaction to the data.


[link to www.lemetropolecafe.com]

By James Turk

The Federal Reserve has stopped raising interest rates. Therefore, the logical question to ask ourselves is whether their decision has changed anything. I think it has.

While the Fed was raising interest rates, one could reasonably argue that its aim was to fight inflation, which continues to climb. In the 12 months ending June 30, 2005, the Consumer Price Index rose 2.5%. However, in the 12 months ending June 30, 2006, the CPI rose 4.6%. This comparison shows that even by the governments own calculation, which I believe understates the true rate of inflation, it is clear that inflation is a growing problem.

Buy gold: the Fed's changing priorities

So now that the Fed has stopped – at least for now – raising rates, it seems clear that they are focusing on something other than inflation. The object of their redirected attention is clear. The Fed has become focused on the economy.

With the slump in housing becoming obvious, coupled with $70+ crude oil imposing a onerous burden throughout the country, the economy is slumping. So the Fed has changed its priorities. Instead of fighting inflation, the Fed instead is now trying to avoid a recession.

Read More [link to www.kitco.com]

Last Edited by Account Deleted by User on 08/31/2011 08:42 PM

hey eagle # 1



look at the markets.....after the New York close.....the world is buying...


[link to www.kitco.com]


if people don't wake up.....all is lost...

paladin


PS.......I have a lot of info.....so I will move fast....the market is out of control

Richard Daughty
...the angriest guy in economics
The Mogambo Guru
Archives
Oct 18, 2006

-- Total Fed Credit was up only $1.5 billion last week. The big action was in the banks, which were busily creating enough credit for themselves to use to choke down a whopping $42 billion in government debt. In one week! Loans and leases fell, but idiot Americans, at the apparent top of the housing bubble, racked up another hefty $21 billion in real estate loans last week, and the people that already had houses gorged themselves on another $16 billion in home equity loans! All in one week!

I gulp in amazement. This was all helped no doubt by the foreign central banks adding to the madness by soaking up another $12 billion in government securities last week, too, after gobbling up $13 billion the week before that, and stashing them all at the Federal Reserve.

As if to compound their calumny, the damned Federal Reserve also printed up another $3.98 billion in actual cash, enough for every man, woman and child ("Now at exactly 300 million, and growing!") in the USA to have another $13.27 in cash.

Money is literally pouring out of government and Fed orifices, and my fingers were actually shaking in fear as I slammed shut the door of the famed Mogambo Bunker Of Ultimate Retreat (MBOUR). Locked and loaded, I relaxed just enough to notice that the Dow Jones Corporate Bond Index fell all week, and the St. Louis Monetary Base fell by $7 billion, almost 1%. The rest of the afternoon was a blank, as my Mighty Mogambo Mind (MMM) refused to believe what I was seeing, and it kind of seized up, although I seem to vaguely remember getting telepathic messages from the microwave oven to "Burn everything! Kill them all! Eat donuts! Chocolate ones!"



[link to www.321gold.com]

Thanks for the 'extra' posts, Paladin.

The last was even more sobering, but, as I said earlier this summer, I see NO other action for the Fed but halting any interest rate increases, and actually start to take the interest rates DOWN to 'save the economy/housing market'.
Is there one more Fed meeting BEFORE the elections ? I think the first reduction could come then, in time to influence the election vote, although it would not show up in Home Equity Loans until December, IMHO !

I REALLY feel sorry for all those people who have NO silver/gold in possesion. When they do buy, prices will soar to well over $70-80 an ounce silver very quickly, as that is WHERE they belong in relation to copper and gold, according to world supply AND availability ( silver supplies above and IN the ground actually shrinking, for years.)

Eagle

hey....eagle # 1..


from above...

By James Turk

The Federal Reserve has stopped raising interest rates. Therefore, the logical question to ask ourselves is whether their decision has changed anything. I think it has.

While the Fed was raising interest rates, one could reasonably argue that its aim was to fight inflation, which continues to climb. In the 12 months ending June 30, 2005, the Consumer Price Index rose 2.5%. However, in the 12 months ending June 30, 2006, the CPI rose 4.6%. This comparison shows that even by the governments own calculation, which I believe understates the true rate of inflation, it is clear that inflation is a growing problem.

Buy gold: the Fed's changing priorities

So now that the Fed has stopped – at least for now – raising rates, it seems clear that they are focusing on something other than inflation. The object of their redirected attention is clear. The Fed has become focused on the economy.



this is what you are saying ,,,yes..



bar none,....you are the silver bug....on GLP....no one can take that from you...


hold on....I have some thing on silver..

paladin

Costello seeks orderly $US withdrawal
John Garnaut Economics Correspondent
October 18, 2006

TREASURER Peter Costello has called on East Asia's central bankers to "telegraph" their intentions to diversify out of American investments and ensure an orderly adjustment.

Central banks in China, Japan, Taiwan, South Korea and Hong Kong have channelled immense foreign reserves into American government bonds, helping to prop up the US dollar and hold down American interest rates.

Mr Costello said "the strategy had changed" and Chinese central bankers were now looking for alternative investments.

-END-

Comex silver:

Hi Bill,
Just a few thoughts on the COMEX silver situation...

Several weeks ago, your sources reported to you that the COMEX silver stocks had, for the first time in many years, dropped back below the psychologically important 100-million-ounce level. Since that time, the COMEX silver stocks—after declining steadily for MONTHS—suddenly began rising again. I find this exceedingly strange, and I strongly suspect that your commentary had something to do with it.

Due to this very suspicious timing, I'm now forced to wonder if we can really believe the COMEX numbers anymore—if we ever could. There's little doubt in my mind that the COMEX is attempting to give the impression that silver is plentiful and (by implication) that it should remain cheap. The unspoken statement seems to be, "Don't go hog wild on silver, folks, because it's more plentiful than suicide bombers in Baghdad!" Their attitude reminds me of newsletter writer Larry Edelson declaring a couple of years back that the world has more silver than cockroaches. (I said at the time that Mr. Edelson had obviously never been to my apartment.)

Like Edelson, most mainstream metals analysts seem to agree that silver won't be a very exciting investment over the next few years. Even the most optimistic of them can't seem to envision more than fifteen or twenty dollars an ounce—if they're even willing to go that far.

Personally, I don't buy it. And even if the incompetent COMEX management can't see what's happening in the world of silver (something I also doubt; they know full well, I believe, what's going down behind the scenes) those of us watching from the sidelines surely can.

More to the point: Why did the COMEX goons find it so imperative to goose their official silver stock number back over the 100-million- ounce mark? In my mind there's only one answer: to give the impression that all is well. But is it? To my way of thinking, even if the COMEX really does have the number of silver ounces they claim, we all know that most of those ounces won't be available at anything near current price levels—regardless of which category the silver might be sitting in (eligible or otherwise). And if any kind of real monetary emergency arises (as if there's any doubt!) then I imagine there wouldn't be even a tenth of COMEX silver available to the open market. Such a scenario would, I believe, create a serious silver shortage practically overnight.

At any rate, my main point is that I'm not sure we should be too quick to believe information coming out of the COMEX these days. The temptation to deceive in order to cover their own butts will force the COMEX officials to do whatever is of the fire. Personally, if I had silver sitting in a COMEX facility, I'd take delivery right now. I wouldn't wait for a crisis to arise and then HOPE that the COMEX thugs do the right thing. They most assuredly won't. (Have they ever?) And I would be very surprised in such a case if the little guys with silver at COMEX will ever see a single ounce of their metal.

You may recall that I have predicted in "Midas" several times over the past couple of years that someday a silver futures contract won't represent anything near 5000 ounces. I still stand by that prediction


[link to www.lemetropolecafe.com]

Could those 'alternative investments' the Asians are looking for possibly be gold/silver ?

Most have said they are increasing their gold reserves. Can silver be far behind ?

I think NOT ! It's SUCH a bargin, in short supply and NEEDED industrially !

Eagle

[link to www.buythebottom.com]



look at the DOW


look at OIL


Look at GOLD..


this is the COT report..


it is plain as day,,,,

look here..

[link to godlikeproductions.com]



always remember....silver trades with Gold..



they are the only real money..

gold/silver is making the move..




remember the market will move after the elections

eagle # 1..

yes the silver trade is about to take off.....as well you know..


when you wind up a rubber band,,,,it will go off......just hold on

hey...Inanna of Sumeria



yes ...I read the Jim S post..

you are right......the only thing that has changed....is the GOLDMAN sell off of long in OIL.....HMMMMMMM

Bank of England To Hike on November 9, But What Happens in 2007?



[link to www.safehaven.com]




and the FED will hold or lower.....