the dollar- gold etc! the LIES your being fed!
Posted July 23rd, 2008 by SIERRAHPBT
output
Author: Dan Norcini
Dear Friends,
You can almost set your watch by the completely expected parade of talking heads which graced our ears and eyes this morning. The reason for the “sudden appearances” of Paulson and Plosser are obvious. The Dollar made its LOWEST CLOSE in two months in yesterday’s session and was sitting barely a half a cent above an ALL TIME LOW in the USDX chart. Having no other weapon in their bag of recent tricks to support it, they resorted once again to the tried and not-so-true method of currency manipulation, aka, verbal intervention. What a tragic scene to witness – the world’s premiere superpower resorting to spin to prop up Humpty Dumpty.
Paulson reiterated how a “strong dollar” is in the interest of the US and repeated that the government is attempting to get the GSE reform package put in place. As the old saying goes, “If I had a nickel for every time I heard the phrase – ‘a strong dollar is in our interests’ – I could have retired by now and bought several nice islands in the South Pacific”. Actually, it is not an old saying – I just made it up – but it underscores the comical scene we are regularly treated to each and every time the Dollar threatens to fall off a cliff never to be seen again.
I am reminded of that scene in the hit movie, “The Mummy”, in which the followers of Imhotep are seen walking through the streets chanting in a zombie-like fashion, “Imhotep, Imhotep, Imhotep”. Only in our case we could substitute the zombies for our monetary authorities and parade them around the streets mumbling “Strong Dollar, Strong Dollar, Strong Dollar”. It is evidently an incantation of some sort, a bewitchment, that has afflicted our illustrious monetary leaders- what else could explain this regularly occurring phenomenon in which grown men act like fools, babbling utter nonsense that they themselves do not believe but are convinced that the lemmings that run the hedge funds will.
The problem for our zombies is that the actions they are taking are anything but bullish for the Dollar in the long term as they bail out one failing financial entity after another. Folks talk about billions of dollars as if those are large sums of money but compared to what? Compared to trillions of dollars, which is what we have out there in derivative la-la land, billions are chump change.
As if to back up Paulson, Philadelphia Fed President, Plosser, was trotted out this AM as well. Plossser had no choice but to issue more statements saying that the rise in prices is worrisome to the Fed which stands ready to a hike rates if necessary to contain it. What did anyone expect him to say- “The Fed could care less about rising prices”? Gimme a break already! And yet we have Forex participants rushing like mad to buy the Dollar on that “bullish news”! Scotty beam me up – there is no longer any intelligent life on this planet!
What I find most disturbing are the comments floating around this AM that a government led bailout of the GSE’s will restore confidence in the US financial system and is therefore bullish for the Dollar. Confidence – perhaps – but at what long term cost? That is the question that never seems to be answered by so many of these “experts” nowadays. They remind me of the mob ignorantly applauding the broken window in Bastiat’s famous analogy. Perhaps we are looking at the product of our failed education system here in the US which produces people incapable of deep or serious thought. To think a few months ahead or a few years ahead instead of the moment requires the ability to concentrate and analyze cause and effect. How can that be done when thinking is something that even the investment class has left to their black boxes?
Of course, it goes with saying, that the attack on gold immediately commenced driving it substantially off its overnight highs, highs I might add that took it through the upside resistance zone and put in back into form to take on $990 once again. That was obviously a No-No here in the US and had to be summarily dealt with. I can hear the pundits now:
“Gold is moving lower because the market is voting that the crisis of confidence is over”. Sure it is – makes me want to sell all of my gold and immediately rush out and buy shares in Washington Mutual as a safe haven play.
Some of you have been around these markets for a long time as I have. One of the things that strikes me is that we are supposedly in a new era in which investors are extremely sophisticated. I would pooh-pooh that entire notion for I must say, this is undoubtedly one of the dimmest group of “investors” I can recall. They can be run in and out of markets with ease merely by pushing prices through critical support or resistance levels. I would go so far to say that today’s markets are far easier to manipulate than at any other period in history because of the lack of fundamentalists that are left manning the turrets of the investment houses and money management firms. These modern day technical junkies can be pushed around easier than one-legged man in a butt kicking contest. That is their Achilles heel and is the ONLY REASON government manipulation of the markets is possible. Take away the technical buy and sell algorithms, and our markets would be free once again. The reason is obvious – the feds would attempt their interventions and would be thwarted because fundamentalists, who are not fooled by short-term gimmicks, would lie in wait and pounce on the opportunity presented by obvious distortions of price induced by government led forays into the marketplace such as what we are witnessing today. Such actions taken by a large percentage of the trading/investing community would completely negate the attempts of the Plunge Protection Team which would eventually just go away and leave the markets to themselves. In the long run, that would actually be much more beneficial to our system than these cynical ploys that we are now experiencing.
I have no doubt in my mind that future historians will look back at this time period and marvel at the brazenness of our monetary authorities and the lengths they went through in order to keep the public deaf, dumb and blind about the true condition of the US’s financial system. Sitting here watching the stock market completely erase every single bit of its overnight losses with its move into the plus column supposedly occurring because oil prices moved lower is breathtaking for its naivety. The news from Apple and Texas Instruments was shockingly distressing. Coupled with the woes of Washington Mutual and Wachovia, it served to emphasize how tenuous is the condition of some of the leading financial companies. Yet we are to believe that all of this can be fixed because crude oil prices move lower and gasoline comes down $.10/gallon?
We continue to read verified reports that sovereign wealth funds are divesting themselves of the Dollar and moving more towards the Euro. Yet, some of these new gigantic forces are supposedly the ones who are going to provide the capital that US cash starved firms needs to stay in business. That will be an interesting feat of magic.
Back to gold for the moment – we are now moving into the time frame on a seasonal basis in which gold tends to bottom out before moving higher into the end of the year. I suspect that today’s bear raid is going to be the last hurrah for the perma shorts in gold. We have support coming in at $940 in the August contract followed by $935. Below that is $920 - $915. Resistance is $955.
Truth has an uncanny method of circumventing deception and always triumphs in the end.
Click chart to enlarge today’s 12 hour action in gold in PDF format as of 12:30 pm CDT with commentary from Trader Dan Norcini.
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Today looks
to be a huge buying opportunity!!!
not quit yet take.. Gold
not quit yet take.. Gold will head down to the mid 850's.. but as for me... anytime is a great time to buy if your in it for the long run... now read this!
http://www.kitco.com/ind/...
as for me and my home, we shall worship the LORD
excellent post
I have silver and gold reserves my self. Its fun to watch the market in turmoil. Also it is fun to see the eb and flow of "gold is down the dollar is stronger now" then "Um the dollar is ok" with no mention of gold.
ssgt, when I did my study
ssgt,
when I did my study about 8 years ago into silver investing they said there would come a time when the market would see WILD ups and downs.. volatility would increase huge! were seeing that now.. then they said its way up! we'll see gold and silver sell off a bit here.. same with oil. the shorts or the manipulators have added short positions and that is why we see it come down... but here soon its game over.. then there will be some happy people around here!
as for me and my home, we shall worship the LORD
Bottom line ...
Gold is worth what it is worth on any given day.
Stay long on gold, but only buy on the dips.
Typically, I would recommend to also sell the peaks, but gold is an exception. Gold is my safe haven. My low risk investment.
No matter what it will go up in the long term in a crisis.
WAHOR!!
welcome aboard Rhino! but
welcome aboard Rhino! but look into silver.. silver is a much smaller market, and in % terms will go higher!
as for me and my home, we shall worship the LORD
Bought Silver Eagles
On the Dip this morning. I read somewhere that silver since 1980 is up approximately 400% now that is what I call an actual return on REAL Money!
silver
Put the silver crack pipe down.
jeff do you need me to ship
jeff do you need me to ship you a case of exlax? I'll do it if your in such a hurting need?
as for me and my home, we shall worship the LORD
Whether or not silver will outpace gold is ...
speculation that I can not agree with.
Having said that, my statements above apply to silver as well.
WAHOR!!
slight caveat
Fortune Favors the Bold
these people do sell gold. Obviously, an interest rate hike would be bad for them, as it does appear the suspicion that the Fed will hike rates sooner rather then later is leading to a gold sell off.
John, If they raise
John,
If they raise interest rates then they are intentionally trying to bring in a greater depression.. the reason why the housing bubble collapsed was that greenspan started raising rates and killed the housing bubble..
at some point rates will go up by themselves because of the risk involved with keeping savings in a bank and the dollar collapsing even further.
but then again no one in this country saves anymore! I see a gold sell off coming.. we have been having these for the last 9 years.. we may touch the mid 800's here but then it will be up.. people will flock to the safe haven of Gold. especially when more banks go kaput here in the next few months! I read today that GMC and Ford Are just about ready to bankrupt!
the whole economy is going to be hurt not just housing here soon! the only reason Gold is going down now is because of the manipulation! but soon they won't be able to manipulate anymore!
as for me and my home, we shall worship the LORD
On MSNBC
I see they have had several people mentioning the oversupply of oil all of a sudden, which I believe is corresponding with the lower price. Of course, they don't mention that there's never been an oil shortage, only that there is plenty right now. Perhaps OPEC was told to lower oil prices to stabalize the crashing maket to some degree; dont know.
Ultimately, with the lower oil prices comes the lower silver and gold. They cannot keep it up though as the inflation cycle will continue to spiral even faster with all these bailouts and less income.
your right Bob... what is
your right Bob... what is funny is that gold , silver and oil sell off and the dollar only goes up slightly..??? this is funny.. its the government and talking heads on tv talking the dollar up and idiots and fools believing them.. the FUNDAMENTALS HAVE NOT CHANGED.. the dollar has only rallied what a few measly points? its still at 72.5 thats terrible.. the euro is still up70% from where it was 8 years ago! we've seen this cycle before many times in the past few years.. down now then all the sudden back up.. except this time I don't think they will be able to kill it when it starts going back up next time..
as for me and my home, we shall worship the LORD
Relative to the dollar you are correct ...
It would be a great buying opportunity.
But as the end of the year approaches, the likelihood of a raise in rates is diminishing. Still better than 50% chance, but going down.
WAHOR!!
My God. I think every Ron
My God. I think every Ron Paul supporter should get a martyr's medal. The more you wake up, the more nightmares you witness. The more you look, the more becomes visible. It is no wonder the "establishment" rails against us. How can we continue to stand the horrors we witness?? This MUST change. There is no two ways about it. We can, we will, we MUST change this country.
I have found this to be true
Solomon stated to increase in knowledge is to increase in sorrow
Amen Brother....
Amazing how the truth is sometimes harder to swallow, but once you know it, and understand what is really going on, it almost makes people want to go back to being ignorant aye? We will change our country.
you guys are right.. once
you guys are right.. once you have studied and know what is going on and why you don't panic.. this is what they want.. what they are presenting is a gift to those in the know! a lower entry point and opportunity to buy more! at some point all the kings men won't be able to put humpty back together again!