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PeacePlan
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Something IS going on behind the scenes!
To all; I wrote last week that it was not necessarily the stock markets to watch as it smelled like "something" was going on behind the scene that we (the public) were not privy to. We still do not know exactly (we can make some good guesses though) "what" it is but we now have evidence that SOMETHING BIG is out there. As reported yesterday, M2 money supply grew more for the latest reported week than any week in history EXCEPT the weeks of 911 in 2001 and the "Lehman week" back in 2008. In other words The Fed is throwing money at "something". Whatever this "something" is it must be bad and it must be very very big!
We can speculate as to what this might be, it could be that the run on European banks has intensified or begun here in the States. It could be 1 or several institutions (a better bet on several), it could be 1 or more giant hedge funds have blown up. It surely could be that a sovereign has it's back up against the wall (Spain or Italy come to mind) It could be that the (a or several) debt markets have backed away from a sovereign and there is a buyers strike. We know that the 30 year U.S. auction was a dismal failure and it is possible that the credit markets have shut off Uncle Sam. It could be something as simple (I am making a joke here) as Chavez calling his paltry 211 tonnes of Gold in and the authorities know it does not exist, they may be "pre cushioning" the markets for the biggest fraud of all time. Who knows?
I surely don't but I do know that The Fed does not act in this manner unless something has gone VERY VERY wrong! Think about it, the only 2 prior weeks where The Fed has acted in this manner were 911 and the Lehman week, enormous events to say the least. The fact that we do not know what it is leads me to to believe that as I have always thought, we will wake up one morning to the markets being closed. I hate to sound like a broken record but it is imperative that you have whatever position on that you want for possibly the next month or even 6 months. I do not believe the powers that be will "allow" the little guy to participate in any revaluation. You MUST front run TPTB and be sitting in your chair before the music stops or you will be locked out. TPTB want as many "slaves" as possible and the only way to insure this is to revalue with as few people on the Gold train as possible!
I do want to comment on Hugo Chavez calling in Venezuela's Gold. There is speculation of all sorts as to why, in my mind he has been "informed" as to just how "tight" the Gold market is and he does not want his metal confiscated. He may also be "testing" the western financial system as to whether his Gold is even vaulted anymore. This may be his "final bow", he could possibly be trying to take the system down should delivery not be made. This is all wild speculation but in recent times "truth has outdone fiction" on a daily basis.
If you think back 18 nonths or so when the Bank of India "bought" their 200 tonnes and sent tremors through the Gold market (kudos to Jim Sinclair as he maintained all along that central banks would become buyers!). Think further back for eons and you will remember the numerous times that the IMF would step up to cool down the Gold market by threatening to sell Gold, it worked very well early on and now has no effect at all. The Eurozone is no longer selling their 400-500 tonnes per year and central banks have become buyers to roughly this same amount. THIS represents a reversal of some 800 tonnes in a market where produver supply is estimated at 2,500 tonnes annually. Supply and demand has "turned" 33% or so over the course of 2 years or less and people want to call top here? We will see but it seems to me like the jig is up and the western vaults are having their bluffs called. 99 out of 100 Gold and Silver "investors" are going to find out that they have NOTHING and maybe never did. Can you imagine the anger?
Be ready for anything at any time now because we just cannot see below the surface (or into the vaults), something HUGE is now happening and The Fed can only respond with the last arrows in their quiver, increasing the money supply. The game appears to be over right here and now, all that remains is for TPTB to let us know it it's over. I suspect we will finally be allowed to "know" when they can no longer open the markets and announce "game over" with no two minute warning! I will be travelling tomorrow and thus no commentary until next week, have a nice weekend.
Regards, Bill H.
http://www.lemetropolecafe.com/james_joyce_table.cfm?pid=9425
To all; I wrote last week that it was not necessarily the stock markets to watch as it smelled like "something" was going on behind the scene that we (the public) were not privy to. We still do not know exactly (we can make some good guesses though) "what" it is but we now have evidence that SOMETHING BIG is out there. As reported yesterday, M2 money supply grew more for the latest reported week than any week in history EXCEPT the weeks of 911 in 2001 and the "Lehman week" back in 2008. In other words The Fed is throwing money at "something". Whatever this "something" is it must be bad and it must be very very big!
We can speculate as to what this might be, it could be that the run on European banks has intensified or begun here in the States. It could be 1 or several institutions (a better bet on several), it could be 1 or more giant hedge funds have blown up. It surely could be that a sovereign has it's back up against the wall (Spain or Italy come to mind) It could be that the (a or several) debt markets have backed away from a sovereign and there is a buyers strike. We know that the 30 year U.S. auction was a dismal failure and it is possible that the credit markets have shut off Uncle Sam. It could be something as simple (I am making a joke here) as Chavez calling his paltry 211 tonnes of Gold in and the authorities know it does not exist, they may be "pre cushioning" the markets for the biggest fraud of all time. Who knows?
I surely don't but I do know that The Fed does not act in this manner unless something has gone VERY VERY wrong! Think about it, the only 2 prior weeks where The Fed has acted in this manner were 911 and the Lehman week, enormous events to say the least. The fact that we do not know what it is leads me to to believe that as I have always thought, we will wake up one morning to the markets being closed. I hate to sound like a broken record but it is imperative that you have whatever position on that you want for possibly the next month or even 6 months. I do not believe the powers that be will "allow" the little guy to participate in any revaluation. You MUST front run TPTB and be sitting in your chair before the music stops or you will be locked out. TPTB want as many "slaves" as possible and the only way to insure this is to revalue with as few people on the Gold train as possible!
I do want to comment on Hugo Chavez calling in Venezuela's Gold. There is speculation of all sorts as to why, in my mind he has been "informed" as to just how "tight" the Gold market is and he does not want his metal confiscated. He may also be "testing" the western financial system as to whether his Gold is even vaulted anymore. This may be his "final bow", he could possibly be trying to take the system down should delivery not be made. This is all wild speculation but in recent times "truth has outdone fiction" on a daily basis.
If you think back 18 nonths or so when the Bank of India "bought" their 200 tonnes and sent tremors through the Gold market (kudos to Jim Sinclair as he maintained all along that central banks would become buyers!). Think further back for eons and you will remember the numerous times that the IMF would step up to cool down the Gold market by threatening to sell Gold, it worked very well early on and now has no effect at all. The Eurozone is no longer selling their 400-500 tonnes per year and central banks have become buyers to roughly this same amount. THIS represents a reversal of some 800 tonnes in a market where produver supply is estimated at 2,500 tonnes annually. Supply and demand has "turned" 33% or so over the course of 2 years or less and people want to call top here? We will see but it seems to me like the jig is up and the western vaults are having their bluffs called. 99 out of 100 Gold and Silver "investors" are going to find out that they have NOTHING and maybe never did. Can you imagine the anger?
Be ready for anything at any time now because we just cannot see below the surface (or into the vaults), something HUGE is now happening and The Fed can only respond with the last arrows in their quiver, increasing the money supply. The game appears to be over right here and now, all that remains is for TPTB to let us know it it's over. I suspect we will finally be allowed to "know" when they can no longer open the markets and announce "game over" with no two minute warning! I will be travelling tomorrow and thus no commentary until next week, have a nice weekend.
Regards, Bill H.
http://www.lemetropolecafe.com/james_joyce_table.cfm?pid=9425
