It’s Jiffy Pop Time! Gold and Stock Markets Weekly Wrap Up

11 Friday Sep 2009

Posted by jschulmansr in 10 year Treasuries, 20 yr Treasuries, AUY, Bailout News, banking crisis, banks, bear market, bilderbergers, bonds, central banks, China, Comex, commodities, Contrarian, Copper, crash, Credit Default, Crude Oil, Currencies, currency, Currency and Currencies, deflation, DGP, DGZ, dollar denominated, dollar denominated investments, Dow Industrials, economic, Economic Recovery, economic trends, economy, Fed Fund Rate, Federal Deficit, federal reserve, Finance, financial, follow the money, follow the news, Forex, Fundamental Analysis, futures, futures markets, G-20, gata, GLD, gold, Gold Bubble, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, heating oil, how to change, How To Invest, hyper-inflation, India, inflation, Investing, investments, Jeffrey Nichols, Jschulmansr, Junior Gold Miners, Latest News, Make Money Investing, manipulation, market crash, Markets, mid-tier, mining companies, mining stocks, monetization, Moving Averages, NASDQ, natural gas, Natural Resources, oil, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, rare earth metals, resistance, run on banks, S&P 500, silver, silver miners, Silver Price Manipulation, SLV, sovereign, spot, spot price, stagflation, Stimulus, stock market, Stocks, Strategic Metals, Strategic Minerals, Strategic Resources, TARP, Technical Analysis, The Fed, Tier 1, Tier 2, Tier 3, Today, Treasury, U.S., u.s. constitution, U.S. Dollar, U.S. Government unfunded Debt, U.S. Treasury Dept

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It’s Jiffy Pop Time and the Gold market is just starting to pop, pop, pop. The heat is being generated by the whirring printing presses at the U.S. Treasury; which are running full steam ahead, unabated, and with no prospect of turning them off. This forms the stove with Inflation, (soon to be Hyper-Inflation) are the burners, blazing red hot. Extra energy is coming from the falling dollar and rising prices/Inflation regardless of what the manipulated Government reports may say. True Inflation right now is approximately 18%+. The tin foil on the Jiffy Pop is starting to rise and Gold has closed today at an 18 month high. We are moving out of the deflation stage and into the inflation stage, if Bernanke is truly dedicated to saving the U.S. economy the he need to tell Geitner to turn off the presses now. We have already doubled, no almost tripled the amount of dollars in circulation now; just in the last 8 months.

The popping is growing louder and mmm- the smell of fresh popped Jiffy Pop Popcorn. The heat is high and I hope you are on the right side of the markets- especially Gold and Precious Metals and in Stocks. For Gold in the coming week I fully expect we will take out the $1033 high. I would not be upset if we built a base down here around $1000 – $1015 during the next few days and closing out next week at $1025 – $1040. This thrust will take us up to $1075- $1100 Then a retracement to back to $1025-$1033 before taking out $1100; and then getting to $1250 – $1300 by the end of the year. We will see a futile attempt to prop up the U.S. Dollar but there is nothing they can do short of raising Interest rates which will sink the fledgling recovery. Oil wil come back and take out first $75 a barrel and then $100 a barrel by the end of the year.

On stocks, I made a mistake on the wave/formation pattern, I still feel we are in the process of creating a head and shoulders top, the exception is that we are still forming the head. I think we will top out the head at DJI 9750- 9800. From there it will be a vicious drop off the cliff preceded by a short right shoulder buildup. I think the big crash is going to occur very soon in the next few weeks. Keep your stops very tight and get ready to play the downside.

I initiated two positions Thurs late afternoon, I bought (DGP) at 2245 and I sold (DGZ) at $22.60. I am getting ready to buy Dec call options for (GLD) and (RGLD) on Monday. You can follow my trades on twitter right after I initiate them.

Have a Great Investing Day! –

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· Who’s been driving this record bull-run in gold?
· What Happens When Inflation Kicks In?
· Why most investors are WRONG about gold…
· When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

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Four Keys To Gold’s Next Move – Seeking Alpha

By Jeffrey Nichols of Nichols On Gold

Gold may have moved too high too soon . . . but whether or not the metal manages to recoup and hold onto recent gains near or above the $1000 an ounce level in the days immediately ahead . . . we are nevertheless looking for new highs (above $1032) in the closing months of the year with gold possibly at $1200 or $1300 before the New Year.

Key One: India

I’ve just returned from India, one of the most crucial markets for gold with a long history and big appetite for the yellow metal. What happens next for gold may depend most on the strength — or weakness — of Indian buying. And, Indian buying is both price sensitive and in sync with various holidays, festivals, and the wedding seasons.

With current rupee-denominated prices near historic highs, many are waiting either for a correction or evidence of staying power before returning to the market for new purchases. And while festival and wedding-related buying is expected later this month, the two-week period up to September 19th is considered inauspicious for gold purchases and many potential buyers will wait until later in the month.

If gold can remain near $1000 for the next week or two, giving Indians a sense of confidence that the price is not about to retreat, we can imagine stronger buying interest sufficient to get the price moving toward its previous historic peak and beyond into uncharted territory.

Key Two: China

Official — but unreported — buying on behalf of the central bank and possibly the country’s sovereign wealth fund, the China Investment Corporation, is being joined by growing private-sector demand for both investment bars and jewelry.

Press reports suggest that the Chinese government has adopted a new — more positive — attitude toward private-sector buying of both gold and silver. With China now the number one gold-mining country, it is in their interest to see a higher gold price as long as demand can be satisfied by domestic mine production and scrap reflows. Additionally, it has been suggested that the new pro-gold policy is intended to channel speculative funds away from real estate and equity investments.

The recently announced agreement for the People’s Bank of China to purchase from the International Monetary Fund about $50 billion in SDR-denominated, IMF-issued interest-bearing securities has also contributed to the latest round of dollar selling . . . and, to the extent that dollar weakness is a plus for gold, this has also supported the early September gold rally.

Key Three: Barrick

Barrick Gold’s (ABX) smart move to buy back its gold hedge position provided a temporary booster shot that helped propel the yellow metal through the $1000 an ounce barrier.

If I remember correctly, as of midyear, Barrick — the world’s largest gold-mine producer — had about 168 tons of gold outstanding on its hedge book . . . and would have to buy back this quantity to regain full exposure to future gold-price moves.

Anticipating an announcement effect, Barrick most likely accelerated its gold repurchase program in the days leading up to the September 7th announcement and probably paused to let the market recover from the news and prices to back off a bit before it resumes its repurchase program. With another tranche still to be repurchased in the months ahead, I expect Barrick to buy into price weakness, helping to underpin the price at moments of weakness.

Key Four: Monetary Factors

Of course, clients and readers of NicholsOnGold know that we think U.S. monetary policy and money supply growth are the primary determinants of U.S. price inflation, U.S. dollar performance, and the future price of gold. Last weekend’s communique from the G20 Finance Ministers and Central Bank Governors was a reminder that monetary stimulus is likely to stay for some time. This — along with last week’s report from the United Nations critical of the U.S. dollar’s roll as a global reserve asset — has pushed the dollar lower in foreign-exchange markets to the benefit of gold.

If you haven’t already read the full text of my speech to the 6th Annual India International Gold Convention in Goa, India last week, I suggest you take a look for more about gold’s supply/demand situation, important changes in central bank gold policies, and implications of U.S. monetary policy.

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How to Trade Natural Gas, Crude Oil and Gold ETF Funds – Seeking Alpha

By: Chris Vermeulen of The Gold and Oil Guy

How to trade hot commodities like natural gas, oil and gold? We should see big moves in the coming weeks as gas bottoms, and oil and gold breakout or breakdown. A lot of money is going to be exchanging hands quickly and the key is to be on the receiving end of things. Below are some charts showing where these commodities are trading.

How to Trade Gold – Weekly Chart

How I trade gold is relatively straight forward. I use a simple trading model which allows me to identify the down side risk for a potential gold trade. I also use the same model for trading oil, gas and silver.

Beyond finding good entry points, it is crucial to know when to take some profits off the table. The weekly gold chart clearly shows gold trading at a resistance level which means there are going to be more sellers than buyers, hence the reason it is called resistance.

To trade gold I enter with my low risk entry points and sell half my position once I reach a resistance level. Thursday for example gold moved up into this long term resistance level and then started to head south. We took some profits off the table before gold dipped in the late afternoon for a healthy gain. Taking profits is a must or you’ll simply hold onto winning positions until they eventually turn into a loser.

How to Trade Crude Oil – Weekly Chart

Trading crude oil is exciting because it moves much faster than gold. How to trade crude oil with low risk can be done by using my simple trading model which is a combination of indicators like momentum, support & resistance, volume, price patterns and media coverage. All these things combined allow for highly accurate trades with minimal down side risk.

Crude oil looks ready to make a big move. The odds are pointing to higher prices because oil has a multi month bullish price action and the falling US dollar helps increase the price of oil. I can see oil breakout and rally into the $95 per barrel level if things go that way in the coming weeks.

How to Trade Oil (USO Fund) – Weekly Chart

USO tracks similarly to the price of crude oil and it provides some great trades for both swing traders and day traders. I focus on trades that bounce off support with low downside risks, which occur on both the daily and weekly charts.

How to Trade Natural Gas – Weekly Chart

Natural gas is looking ready to bottom here. If you go back to the early 90’s the $2-3 range is a major support level. While I don’t generally try to pick bottoms, there are some signature price patterns and volume patterns that have proven to be very profitable for catching sharp bounces.

How to Trade Natural Gas – Daily Chart

The daily chart shows a perfect waterfall sell off with the price of natural gas dropping to a long term support level. This pattern combination shows panic selling which indicates a short term bottom is close.

The extreme panic selling and sharp decline in price, removes much of the down side risk. Scaling into a position over a few days, if the price continues to move lower, is important for this strategy to work its magic.

The black horizontal lines show my resistance levels for taking profits. If the price were to drop below $10 then I would exit the second half of the position to lock in the rest of the profit.

How to Trade Commodities Conclusion:

Trading commodities is very simple with all the ETFs and funds available. The energy funds like oil and gas have some issues with following the prices of their underlying commodity but I do not find it a problem with my style of trading.

I would really like to know the entire story about what is going on with the oil and nat gas funds which have crazy contango issues. Why do other commodity funds like GLD (gold bullion) and SLV (silver bullion) not have these issues? Why can’t they make a fund which follows oil and gas properly? All I know is that there are a lot of dishonest people in the financial industry taking honest hard working peoples’ money.

Visit The Gold and Oil Guy

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(9-11 Postscript): I salute the fallen hero’s of 9-11 – we will not forget you! Our prayers are still with the families of the fallen and the survivors. We will never forget…

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I will be starting regular daily posts next week especially since the markets are heating up- Like I said it’s “Jiffy Pop” time! – Have a great weekend-jschulmansr

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Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investing decisions and/or investments. – jschulmansr

Black September is Here Again!

01 Tuesday Sep 2009

Posted by jschulmansr in 10 year Treasuries, 20 yr Treasuries, agricultural commodities, alternate energy, Alternate Fuel Sources, alternative Energy, banking crisis banks bear market bull central deflation depression economic trends economy financial futures gold inflation crash Markets precious metals price protection recession safety silver plati, banks, bear market, Bear Trap, bonds, bull market, China, Comex, commodities, Copper, crash, Credit Default, Crude Oil, Currencies, currency, Currency and Currencies, dollar denominated, dollar denominated investments, Dow Industrials, economic, Economic Recovery, economic trends, economy, Fed Fund Rate, Federal Deficit, federal reserve, Finance, financial, follow the money, follow the news, Forex, Fundamental Analysis, futures, futures markets, gata, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, Government Spending, hard assets, heating oil, How To Invest, How To Make Money, hyper-inflation, India, inflation, Investing, investments, Jschulmansr, Junior Gold Miners, Latest News, Long Bonds, majors, Make Money Investing, manipulation, Market Bubble, market crash, Markets, mid-tier, mining companies, mining stocks, NASDQ, natural gas, Natural Resources, oil, Paladium, palladium, physical gold, platinum, platinum miners, precious, precious metals, price, price manipulation, prices, producers, production, risk, run on banks, S&P 500, safety, Saudi Arabia, silver, silver miners, Silver Price Manipulation, small caps, sovereign, spot, spot price, stagflation, Stimulus, stock market, Stocks, The Fed, Tier 1, Tier 2, Tier 3, TIPS, Treasury, U.S., U.S. Dollar, U.S. Government unfunded Debt, U.S. Treasury Dept, warrants, XAU

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Well the dog days of summer are over and September is blowing in. As the brilliant colors of autumn are starting to bloom with the leaves turning orange, gold and crimson; the leaves are starting to drop. That’s not all that is starting to fall, stocks are beginning their seasonal drop. If you haven’t taken profits please do so. We will see one more push up in stocks as they form the right shoulder of the head and shoulders formation on the chart. We have just finished the head with the right shoulder to follow (DJIA). 9200 (DJIA) is the first support, next roughly 9125-9080. A decisive break below the 50 day moving average or 9000 will be absolute confirmation of the new bear market downtrend. Commercial real estate is one of the next factors (shoe) about to drop. In addition the tax break for buying a new home is about to end, and the auto industry will not have cash for clunkers to fall back on. Late Breaking China has said NO to Credit derivatives and any losses from them. This is definitely not good for the US markets. So get rid of your more speculative stocks move to good yielding stocks in industries that people have to buy the products in good times or bad times. On the rest move your stops very close w/in 10% trailing. Maybe also look at selling covered calls or puts to lock in profits and earn a little income on the side.

Gold and Precious metals are coiled up ready to spring dramatically to the upside. Countdown is almost over, ignition commencing. We have a nice little triangle in Gold. Personally, I feel we will see the breakout to the upside after a little false breakout to the downside. In other words I fell it will go down like this, first we will see Gold test the $930 level as the Big 3 shorts make one more desperate effort to save themselves. However I feel that Gold will hold and climb back to $950 and then break above $965. When that happens the next resistance will be $980, then $1000, and then a 2nd test for the all time high at $1032. I think it will successfully break that level and hit at least $1250 before the end of the year with a potential to actually hit $1325. Keep accumulating companies with a low cost of production, junior and mid tier producers with current or about to start production. There are still many bargains which I will start featuring here on the blog.

I apologize for the recent lack of posts over the past month. Since I lost my day job, I decided to go back to school again so to speak by taking a few intensive trading and technical analysis courses to refresh up again. Since my new job will be trading the markets, I will be sharing my picks and option trades, forex trades, along with choice stock picks. Wishing all of us Great Investing! -jschulmansr

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Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out:

· Who’s been driving this record bull-run in gold?
· What Happens When Inflation Kicks In?
· Why most investors are WRONG about gold…
· When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

==============================================

John Licata Still Eyeing $1200 Gold in 2009 – GoldSeek.com

Bullish on gold since it carried a $400-per-ounce price tag, Blue Phoenix Chief Investment Strategist John Licata expects the king of metals to ring in the New Year with a $1,200-per-ounce crown. As he told The Gold Report in April, he still considers gold one of the best asset plays in the world. With recovery on the horizon, he’s also high on silver—in part because a pickup in manufacturing will drive up demand. While he says it’s premature to claim economic recovery, he isn’t looking to copper to serve as the traditional harbinger of a return from recession this time. His rationale? Good economic news—while too inconsistent to make recovery imminent—is already baked in to copper’s climb already this year.

The Gold Report: You weren’t too bullish on seeing a recovery in 2009 when we caught up with you in April. We’ve seen some good Q2 reporting from a variety of companies and some encouraging economic data. The government is starting to claim we’re in recovery. What’s your take on this?

John Licata: I do think we’ve seen some better domestic economic data, but it’s premature to think we’re totally out of the woods. In terms of corporate earnings, a lot of company profits might have surprised to the upside, but they’re still down 50% to 70% from quarters before or the prior year.

Many companies have been trying to compare Q1 and Q2. You’re still not seeing dramatic differences to the upside. Quite frankly, some companies are still living within cash flow and I think that’s one of the reasons why we could have a problem with supply and demand imbalances as we come to the end of 2009 and enter 2010.

Unemployment is likely to keep rising. Although the last numbers were much better than anticipated, I don’t think we’ve seen the green light that will cause people to start hiring again. We could hit 10% unemployment by the end of the year, and that’s going to be a precursor to some weaker retail heading into the holiday season. Net-net, you probably could put the word ‘inconsistent’ toward most of the economic data coming out of the U.S.

The industrial numbers that came out of China a couple of weeks ago [August 10] were actually below expectations as well. While everyone wants to be bullish and the data is somewhat better than many expected, it’s still not great. So I think to claim victory right now is definitely premature.

TGR: You mentioned a supply-demand imbalance. What do you see on that front?

JL: Companies are not putting money back into infrastructure. For that reason, once demand actually starts to increase, supply levels will be shockingly different from what people might expect.

TGR: Are you differentiating between the BRIC countries and North America in that regard?

JL: I’m not just looking at the BRIC countries as the barometer for the economic pulse. I don’t even think China is the saving grace for commodities. But I do think what is going to be indicative for a recovery is to see demand pick up, to start seeing jobs pick up again, more consistently; not just one month out of six. We need to see consistent job growth.

TGR: When do you think demand might pick up?

JL: Q3, perhaps Q4, is when we probably can start seeing demand start picking up and I think that’s when we’re going to start to see overall a global economic recovery. I’m skeptical that it can happen before Q4.

TGR: Is that worldwide demand pickup you’re anticipating?

JL: I’m referring to North America.

TGR: Can demand pick up before unemployment abates?

JL: It can happen before, but I think demand and employment will increase in tandem.

TGR: In our previous conversation, you compared the investment opportunities in oil, natural gas and gold to one another. At this point, which of these three sectors do you think offer the greatest return?

JL: Because of the upside that I think could happen over the next 12 months, I would rate natural gas first, gold second and oil third. For right now, I’m conservatively optimistic on oil. Although short term we might have a pullback, I’m still bullish on the price of oil. I think oil will trade north of $80 by year end, and I think we’ll again see triple-digit oil within the next two years. A lot of major wells in the world are not as productive as they once were and when it comes to demand increasing because the overall economic health around the world is picking up, we could be in trouble in terms of supplies. That relates to the metals as well as energy.

TGR: Speaking of metals, your outlook for gold?

JL: I continue to maintain that we could see $1,200 gold prices by year-end. I think gold is very much on the way to hitting that pretty aggressive price target. The miners themselves seem pretty confident on the upside for gold.

TGR: In April, you described gold as one of the best asset plays in the world and your recommendation to investors was to focus initially on physical gold. Have you changed that viewpoint?

JL: No. I’ve been bullish on gold since it was below $400. But now I am starting to see some opportunities in the equity side of the gold market that are becoming very appealing and I didn’t see that when we last spoke.

TGR: Are you still bullish on platinum and palladium, too?

JL: I am still enthusiastic, but not as bullish on either of them just because we have seen a bit of a run since April. I’d rather be in silver. I think silver gets forgotten when we start talking about precious metals. As opposed to platinum or palladium, I would rather be in the silver space.

TGR: Is there anything in particular in silver that you’re finding appealing?

JL: I just think if we’re talking about an economic recovery in the back half of this year into 2010 and silver is mostly used for industrial purposes, I honestly think that silver prices are just forgotten. When people start talking about the inflation hedge, they jump into gold. If they start talking about the economy improving, they jump into copper. They tend to forget that silver is actually used for much manufacturing. So I think that is the forgotten metal and I do think that silver prices can move a lot higher, especially as gold prices march through $1,000.

TGR: As you say, people look to copper as the leading metal to point to in terms of a recovery. What’s your feeling about copper?

JL: You hit the nail on the head. Everyone starts to talk about copper, but nothing has jumped out at me to say that copper prices have much more upside. Copper prices are up nearly 100% year-to-date, so I think a lot of the recovery that many people are talking about has been priced in already.

The Baltic Dry Index, an index that just had the biggest monthly drop since October (down 28% in August), has been down because people fear that China might cut back on buying iron ore and coal. If that happens, copper prices won’t be immune. Copper supplies have been tight for the last couple of quarters. If anything, we’re trading about 35 cents or 40 cents above the recent 50-day moving average. I think copper is over-extended right now.

TGR: Any last comments before we meet again?

JL: Only that while it’s a difficult marketplace and I do expect tight markets around the world to continue, some of the plays we’ve talked about have the makings of a pretty successful portfolio.

After studying economics and graduating from Saint Peter’s College in New Jersey (where he received the Wall Street Journal Award for economic excellence), John J. Licata set his sights on Wall Street. During his career, John has held both trading and research positions on the NYMEX, Dow Jones, Smith Barney and Brokerage America. Early in 2006, he founded Blue Phoenix, Inc., an independent energy/metals research and consulting firm based in New York City. John, the company’s Chief Investment Strategist, has appeared regularly in the media (CNBC, Bloomberg TV/Radio, Business News Network (BNN), Barron’s, The Wall Street Journal, Chicago Sun, Los Angeles Times, etc.) over the years for his insights/forecasts in the commodity spectrum.

Streetwise – The Gold Report is Copyright © 2009 by Streetwise Inc. All rights are reserved. Streetwise Inc. hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

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The “Other” Shoe Is It Dropping?

29 Wednesday Jul 2009

Posted by jschulmansr in 10 year Treasuries, 20 yr Treasuries, banking crisis banks bear market bull central deflation depression economic trends economy financial futures gold inflation crash Markets precious metals price protection recession safety silver plati, bear market, Bear Trap, bonds, Crude Oil, dollar denominated, dollar denominated investments, Dow Industrials, economic, Economic Recovery, economic trends, economy, Fed Fund Rate, Federal Deficit, federal reserve, financial, follow the money, follow the news, Forex, futures, futures markets, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, heating oil, how to change, How To Invest, How To Make Money, hyper-inflation, inflation, Investing, investments, Jschulmansr, Junior Gold Miners, Long Bonds, majors, Make Money Investing, market crash, mining companies, mining stocks, oil, Paladium, physical gold, platinum, precious metals, price, price manipulation, producers, production, recession, S&P 500, Short Bonds, silver, silver miners, Silver Price Manipulation, small caps, spot, spot price, stagflation, Stimulus, stock market, Stocks, Today, Treasury, U.S. Dollar, U.S. Government unfunded Debt, U.S. Treasury Dept

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ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, cobalt, Comex, commodities, Copper, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, Forex, FRG, futures, futures markets, gata, GDX, geothermal, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, Green Energy, GTU, hard assets, HL, hyper-inflation, IAU, India, inflation, investments, Jeffrey Nichols, Jim Rogers, John Embry, Jschulmansr, Keith Fitz-Gerald, majors, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, monetization, Moving Averages, NAK, NGC, NXG, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, power, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, SWC, Technical Analysis, TIPS, U.S., U.S. Dollar, volatility, warrants, XAU

The other shoe what is it? Actually, there are several “other” shoes getting ready to drop. Today we saw one of them… Did you check out the Treasury Auction today? What happened on those 5 year notes. They didn’t sell all they offered in simple terms. This is a huge week of financing for the Treasury and they had a shortfall and were only able to sell $39 billion; the bid to cover ratio was 1.92 the weakest in almost a year. Yields (the tail) were well above expectations with the yield rising to a 4 week high of 2.66%.

In turn the stock market dropped 26 points to close at 9071 DJI. Slipping ever closer to falling beneath 9000. Analyst’s however are stating the the DJI came back up after much deeper losses which is bullish. Hmm… Could there be another round of fabricated unemployment numbers tomorrow? This market is being heavily manipulated and is try to suck in investors to the upside so that BAM!, another Crash and there goes another chunk of our savings down the drain. Be aware, watch the remaining Treasury auction, keep your stop loss points very close. Remember there is a little bit of room to the upside to make a nice head and shoulders.

Alas, poor Gold today down another $12 today. Good news for smart investors, time to buy more. Believe it or not the rally start is about 1 to 1/2 months away, maybe much sooner. Oil did it’s retracement today and will start heading back to $70 barrel. Keep accumulating in both Precious Metals and Oil stocks junior and mid tier producers. Our time is coming very soon.

In the coming days I will put together/report my portfolio fav’s and publish them so you can check them out for yourself. Stay tuned, subscribe to the blog or follow me on Twitter to be the first to know.

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http://twitter.com/jschulmansr - Overall Markets and Trading Blog
http://twitter.com/daresomething - Politics
http://twitter.com/tweetsgold - Gold and Precious Metals
http://twitter.com/tweetsthecash - Internet Marketing and Affiliate Marketing
FaceBook http://facebook.com/jschulmansr

Good Investing! – jschulmansr

========================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out:

· Who’s been driving this record bull-run in gold?
· What Happens When Inflation Kicks In?
· Why most investors are WRONG about gold…
· When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

=======================================

A Sucker’s 2 day rally – New $725 Stock Tip!

16 Thursday Jul 2009

Posted by jschulmansr in agricultural commodities, alternate energy, Alternate Fuel Sources, alternative Energy, Austrian school, banking crisis banks bear market bull central deflation depression economic trends economy financial futures gold inflation crash Markets precious metals price protection recession safety silver plati, banks, bear market, Bear Trap, bonds, bull market, Comex, commodities, Copper, Crude Oil, Currencies, currency, Currency and Currencies, Dow Industrials, economic, Economic Recovery, economic trends, economy, Federal Deficit, federal reserve, Finance, financial, follow the money, follow the news, Forex, Fundamental Analysis, futures, futures markets, Geothermal Energy, GeoThermal Power, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, heating oil, How To Invest, How To Make Money, hyper-inflation, inflation, Investing, investments, Jschulmansr, Latest News, Long Bonds, Make Money Investing, market crash, Markets, mid-tier, mining companies, mining stocks, natural gas, Natural Resources, Nouriel Roubini, oil, PAL, Paladium, palladium, physical gold, platinum, platinum miners, precious metals, rare earth metals, S&P 500, Short Bonds, silver, silver miners, sovereign, spot, spot price, stagflation, Stimulus, stock market, Stocks, Strategic Metals, Strategic Minerals, Strategic Resources, Technical Analysis, The Fed, Tier 1, Tier 2, Tier 3, TIPS, Treasury, U.S. Dollar

≈ Comments Off on A Sucker’s 2 day rally – New $725 Stock Tip!

Tags

ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, cobalt, Comex, commodities, Copper, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, Forex, FRG, futures, futures markets, gata, GDX, geothermal, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, Green Energy, GTU, hard assets, HL, hyper-inflation, IAU, India, inflation, investments, Jeffrey Nichols, Jim Rogers, John Embry, Jschulmansr, Keith Fitz-Gerald, majors, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, monetization, Moving Averages, NAK, NGC, Nouriel Roubini, NXG, Osisko Mining, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, power, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, SWC, Technical Analysis, TIPS, U.S., U.S. Dollar, volatility, warrants, XAU

I really hope you haven’t been fooled by this latest little upswing over the last couple of days in the Stock Markets. Please take your profits now and do it tomorrow! Turn that money over into resource based stocks especially Gold and Silver, Oil and Energy, and your basic foodstuff and base metal commodities. Wed. rally was to get rid of the weak shorts snatch their cash and today fool them to turn their positions and catch them with a whipsaw. Thurs. rally basically caused by Roubini semi positive remarks on the economy. How interesting, I wonder what tomorrow Fri. result will be when the markets hear about Roubini’s rebuttal (of course after market close!).

Follow Me on Twitter and be notified whenever I make a new post!

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If you can’t wait scroll to bottom of the post for today’s free $725 value stock tip…

I wanted to take a minute and share with you some excellent links to INO.com Market Club. I am personally a member and I love their charting tools and their patented “Triangle Technology”. This is a “must have” for any serious trader. I’ve arranged for my readers a couple of special videos on the Dow Jones Industrial’s, the Dollar Index, the Aussie Dollar.

Watch them, look around Ino, Market Club, and sign up for the “free” stuff to check them out…

Important Dow Update, July 14th

In today’s short video I am going to be revisiting the Dow Jones Industrial index (DJI).

Dow Update

I think it’s very interesting to see what our “Trade Triangles” are doing as well as what our Talking Charts are saying about this market.

I’ll also be using MarketClub’s Fibonacci tool. If you have not seen this tool in action, I strongly recommend that you watch today’s video.

You can watch this video with my compliments and there is no registration requirements.

Exploring the Dollar Index

While the US dollar was supposed to lose ground against its counter parties, the market has remained surprisingly stubborn and trapped in a sideways trading range.

In today’s video I will explore what’s going on, and where I think this market is headed in the future.

You can watch this video with my compliments and there is no registration requirements.

Dollar Index

What’s up with the currency from down-under?

We are taking a trip down under today.

It has been sometime since we last looked at the relationship between the US dollar and the Australian dollar (USD/AUD). Today seemed like an opportune time to look at this cross and to figure out where it is headed using our “Trade Triangle” technology.

We’re also using MarketClub’s Fibonacci tool. If you have not seen this tool in action, I strongly recommend that you watch today’s video.

Aussie Dollar

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

======================================

Roubini refutes better outlook – MarketWatch

By Kate Gibson

NEW YORK (MarketWatch) — Economist Nouriel Roubini on Thursday refuted reports that he had improved his economic outlook, saying his comments at an investors conference earlier in the day were taken out of context. “I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19 months into that recession. If as I predicted the recession is over by year end, it will have lasted 24 months with a recovery only beginning in 2010,” Roubini said in a statement.

======================================

Roubini: I Was Taken Out of Context – The Street.Com

The following is a statement from Dr. Nouriel Roubini, chairman of RGE Monitor, and professor, New York University, Stern School of Business:

It has been widely reported today that I have stated that the recession will be over “this year” and that I have “improved” my economic outlook. Despite those reports — however — my views expressed today are no different than the views I have expressed previously. If anything, my views were taken out of context.

I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19 months into that recession. If as I predicted the recession is over by year-end, it will have lasted 24 months, with a recovery only beginning in 2010. Simply put, I am not forecasting economic growth before year’s end.

Indeed, last year I argued that this will be a long and deep and protracted U-shaped recession that would last 24 months. Meanwhile, the consensus argued that this would be a short and shallow V-shaped 8 months long recession (like those in 1990-91 and 2001). That debate is over today as we are in the 19th month of a severe recession; so the V is out of the window and we are in a deep U-shaped recession. If that recession were to be over by year-end — as I have consistently predicted — it would have lasted 24 months and thus been three times longer than the previous two and five times deeper — in terms of cumulative GDP contraction — than the previous two. So, there is nothing new in my remarks today about the recession being over at the end of this year.

I have also consistently argued — including in my remarks today — that while the consensus predicts that the U.S. economy will go back close to potential growth by next year, I see instead a shallow, below-par and below-trend recovery where growth will average about 1% in the next couple of years when potential is probably closer to 2.75%.

I have also consistently argued that there is a risk of a double-dip W-shaped recession toward the end of 2010, as a tough policy dilemma will emerge next year: on one side, early exit from monetary and fiscal easing would tip the economy into a new recession, as the recovery is anemic and deflationary pressures are dominant. On the other side, maintaining large budget deficits and continued monetization of such deficits would eventually increase long-term interest rates (because of concerns about medium term fiscal sustainability and because of an increase in expected inflation) and thus would lead to a crowding out of private demand.

While the recession will be over by the end of the year, the recovery will be weak, given the debt overhang in the household sector, the financial system and the corporate sector; and now there is also a massive releveraging of the public sector with unsustainable fiscal deficits and public debt accumulation.

Also, as I fleshed out in detail in recent remarks, the labor market is still very weak: I predict a peak unemployment rate of close to 11% in 2010. Such [a] large unemployment rate will have negative effects on labor income and consumption growth; will postpone the bottoming out of the housing sector; will lead to larger defaults and losses on bank loans (residential and commercial mortgages, credit cards, auto loans, leveraged loans); will increase the size of the budget deficit (even before any additional stimulus is implemented); and will increase protectionist pressures.

So, yes there is light at the end of the tunnel for the U.S. and the global economy; but as I have consistently argued. the recession will continue through the end of the year, and the recovery will be weak and at risk of a double dip, as the challenge of getting right the timing and size of the exit strategy for monetary and fiscal policy easing will be daunting.

RGE Monitor will soon release our updated U.S. and Global Economic Outlook. A preview of the U.S. Outlook is available on our website: www.rgemonitor.com

==================================

Now for the $725 "HOT" Stock Tip. Another leading newsletter is
offering to give the name of this new Gold Find the 7th largest
Gold deposit in North America. Surrounded by some very compelling
and excellent copywriting that I have seen, you are drawn into the 
story about renegade geologist and his team have uncovered one of 
the largest gold reserves in North America – over $10 billion dollars
worth.

All is now in place to begin mining the earth and getting the gold out 
of the ground and the mine into production. Equipment is already bought 
and being delivered. What’s even better is that this is an  opportunity 
that where this small company has so much gold that it’s about become a
mid-size gold producer in record time.

One thing I can tell you is this... The best time to "buy" gold is
before a single ounce comes out of the ground... while the shares
are still very cheap. Currently trading for around $6-$6.50, while
the gold alone is worth roughly $35 per share). 

Drum Roll Please... The name of the company Osisko Mining Corp. (OSKFF).

Enjoy and Good Investing! - jschulmansr

 ===============================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report; 
Exposed! Five Myths of the Gold Market and find out:

· Who’s been driving this record bull-run in gold?
· What Happens When Inflation Kicks In?
· Why most investors are WRONG about gold…
· When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault 
===============================================
Nothing in today's post should be considered as an offer to buy or sell
any securities or other investments; it is presented for informational
purposes only. As a good investor, consult your Investment Advisor/s,
Do Your Due Diligence, Read All Prospectus/s and related information
carefully before you make any investing decisions and/or investments.
–  jschulmansr

Quick Update for Dare Something Worthy Today Too!

10 Friday Jul 2009

Posted by jschulmansr in alternate energy, Alternate Fuel Sources, banking crisis banks bear market bull central deflation depression economic trends economy financial futures gold inflation crash Markets precious metals price protection recession safety silver plati, Barack Hussein Obama, Bear Trap, Comex, commodities, Conservative, Conservative Resistance, Contrarian, Copper, Crude Oil, Currencies, currency, Currency and Currencies, DARE SOMETHING WORTHY TODAY, dollar denominated, dollar denominated investments, Dow Industrials, economic, economic trends, economy, Fed Fund Rate, Federal Deficit, federal reserve, Finance, financial, follow the money, follow the news, Forex, Fundamental Analysis, futures, gata, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, Green Energy, heating oil, How To Invest, How To Make Money, how to use twitter, hyper-inflation, inflation, Investing, investments, Jschulmansr, Junior Gold Miners, majors, Make Money Investing, manipulation, market crash, Markets, mid-tier, mining companies, mining stocks, NASDQ, natural gas, Natural Resources, Nuclear Energy, oil, Paladium, physical gold, platinum, platinum miners, Politics, precious metals, Today

≈ Comments Off on Quick Update for Dare Something Worthy Today Too!

Tags

ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, cobalt, Comex, commodities, Copper, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, Forex, FRG, futures, futures markets, gata, GDX, geothermal, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, Green Energy, GTU, hard assets, HL, hyper-inflation, IAU, India, inflation, investments, Jeffrey Nichols, Jim Rogers, John Embry, Jschulmansr, Keith Fitz-Gerald, majors, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, monetization, Moving Averages, NAK, NGC, NXG, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, power, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, SWC, Technical Analysis, TIPS, U.S., U.S. Dollar, volatility, warrants, XAU

Sorry, been so busy setting up things for Twitter and my other businesses. Hang in there with Gold and Precious Metals. With everything that is coming down, new regulations, audit of the Fed, and etc.; thing are getting tougher and tougher for those who are and have been manipulating the Gold and Silver Markets. They (the big 3) and others are trying to take advantage of this being a normally slow time in the Gold Markets and are trying to make the charts appear (from a technical basis), that the rally has ended. Please do not fall for this! Keep accumulating more shares of all the tiers of producers and explorers who are about to start production. If you are buying Bullion TAKE DELIVERY! I still predicting that we will see Gold at $1250 and Silver $25 by the end of this year. Hold On, Be Patient, Take Delivery, and use this Opportunity to continue accumulating. I will have a new tip either tomorrow or the weekend.

In the meantime you can follow me and the markets on Twitter. I Tweet quite often during the day at the following sites on Twitter below. I reciprocate all follows and friend requests. Here is what I have set up for you on Twitter, please follow all or at least the ones that interest you. I will be starting back to daily posts in the next few weeks. Here is my also a little about me and my latest profile on Seeking Alpha:

Seeking Alpha profile link

I am an Open Networker, Top Linked, LION (worn with pride!), and accept all LinkedIn and FaceBook friend/join my network requests. In addition I reciprocate all Follows on Twitter.

FaceBook: http://FaceBook.com/jschulmansr

LinkedIn: http://LinkedIn.com/in/jschulmansr

Twitter: http://Twitter.com/jschulmansr

Friend Feed: http://friendfeed.com/jschulmansr

I am also an avid Tweeter on Twitter and have the following Twitter Sites.

http://Twitter.com/jschulmansr – Much like my Blog

http://Twitter.com/DareSomething – Politics and Conservative/Libertarian Issues

http://Twitter.com/TweetsGold – Gold Markets and Everything Gold.

http://Twitter.com/TweetsSilver – Silver Markets and Everything Silver

http://Twitter.com/TweetsOil – Oil & Energy Markets, Alternate & Green Energy

http://Twitter.com/TweetsForex – Forex, Currency Markets and Trading

http://Twitter.com/TweetsTheCash – Internet and Affiliate Marketing

http://Twitter.com/7FigureTweets – Internet and MLM marketing

I am just a simple guy, I love Investing. Nothing better than making a trade and Winning. The Life of a trader is this Hours upon Hours of Boredom punctuated by moments of Sheer Elation or Sheer Terror! LOL!
I could bore you with how I have held every Series License from Stocks, Commodities, Bonds and Insurance at one time or another, how I have 25yrs. + trading experience. Or tell you tales of my greatness but bottom line, I love what I do and I love to share, learn from and teach other people. My definition of being successful is while you are climbing up the mountain of Success, you are also holding out your hands to those below, to help pull others up the mountain with you. I hope you enjoy my blog, Tweets, and that I am able to entertain, but at the same time help you. Enjoy and May God Bless You Richly and Abundantly!

===================================================

Gold Ratios – Time To Pay Attention – Seeking Alpha

By: Gary Tanashian of Notes From The Rabbit Hole

Ever since the sentimentally unsustainable negative events of Q4, 2008, when gold simply exploded higher in ratio to over-played assets far and wide in a panicked rush for safety, the ancient monetary metal has been consolidating its relative gains. As noted at the time in NFTRH, this excessive reaction had to be worked off. Now, unfortunately for the unprepared and hopeful, it has been worked off. Forewarned is forearmed.

Dialing forward to today, we find a tired rally in nominal stock, commodity and low quality debt prices. We see a rising Gold-Silver ratio (GSR) and a US dollar not far above our ‘do or die’ support level of 78. See the free, albeit abbreviated issue of NFTRH (.pdf) for the monthly view of USD.

NFTRH held and added gold miners strongly throughout the process of gold’s impulsive rise in ratio to the things that are positively correlated to economies and rising human spirits. This, even as nominal gold stock prices imploded. Positions were added ‘all in and around’ a historic bottom and this trade has paid off quite well.

Okay, that is history. Now what?

We have been watching the GSR (among other indicators) tirelessly and its message for the markets has been actively bearish for about a month now. To review, when silver is rising relative to gold it indicates a willingness on the part of market participants to accept risk, to ‘play’. The GSR has been working like a more sensitive version of the VIX in recent years. Ah, but there is literally a world of ratios that can be used to advantage when attempting to gauge the winds of the markets.

In the chart included today we see gold in ratio to the Reuters CRB commodity index ($CCI). Even as many people micromanage nominal prices of asset markets, gold’s ratio to commodities tells a story of a bottom in the making, which of course tells a story of a top in the making in what NFTRH called ‘Hope 09’.

Let this short article serve as notice that gold’s consolidation vs. the assets of hope looks to be in its final stages. This is a bullish chart, and in this weekend’s NFTRH41, we will look at gold’s ratio to several other assets and markets. It is time to pay attention and it is time to get it right.

Markets travel in roundabout directions and cycles – both short and long term – must be endured. It is technical, sentiment and market ratio analysis that guides us through these cycles and keeps us on the right track. Please heed the above chart and consider what will happen when gold finishes consolidating the explosive ratio gains of 2008.

===================================================

My Note: If you payed attention and I know my readers did, it is time to buy Gold now, the consolidation is almost over. This means Gold and Precious Metals are about to resume their rally and very soon! Once again, I am calling for Gold at $1250 and Silver at $25 by the end of this year. You are never hurt by getting in early, but definitely hurt by getting in too late or missing it altogether; Buy Precious metals in any form. If Bullion TAKE DELIVERY! -Good Investing! – jschulmansr

===================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out:

· Who’s been driving this record bull-run in gold?
· What Happens When Inflation Kicks In?
· Why most investors are WRONG about gold…
· When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

====================================================

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==================================================

Hey Buddy Got a Jack I can Use? – Fixaflat 2

23 Thursday Apr 2009

Posted by jschulmansr in 10 year Treasuries, 20 yr Treasuries, agricultural commodities, ANV, Austrian school, AUY, Bailout News, banking crisis, banking crisis banks bear market bull central deflation depression economic trends economy financial futures gold inflation crash Markets precious metals price protection recession safety silver plati, banks, Barack Obama, bear market, Bear Trap, bilderbergers, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, capitalism, CDE, CEF, central banks, China, Comex, commodities, Contrarian, Copper, Council on Foreign Relations, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, Dow Industrials, economic, Economic Recovery, economic trends, economy, EGO, Fed Fund Rate, Federal Deficit, federal reserve, Finance, financial, follow the money, follow the news, Forex, FRG, Fundamental Analysis, futures, futures markets, G-20, gata, GDX, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, GTU, hard assets, heating oil, HL, How To Invest, How To Make Money, hyper-inflation, IAU, IMF, India, inflation, investments, Jeffrey Nichols, Jim Rogers, John Embry, Jschulmansr, Keith Fitz-Gerald, Latest News, majors, Make Money Investing, Marc Faber, Market Bubble, market crash, Markets, Michael Zielinski, mid-tier, mining companies, mining stocks, monetization, Moving Averages, NAK, NASDQ, New World Order, NGC, NWO, NXG, oil, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, Short Bonds, silver, silver miners, Silver Price Manipulation, SLW, small caps, socialism, sovereign, spot, spot price, stagflation, Stimulus, stock market, Stocks, SWC, Technical Analysis, The Fed, TIPS, Today, U.S., U.S. Dollar, volatility, warrants, XAU

≈ Comments Off on Hey Buddy Got a Jack I can Use? – Fixaflat 2

Tags

ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, Comex, commodities, Copper, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, Forex, FRG, futures, futures markets, gata, GDX, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, GTU, hard assets, HL, hyper-inflation, IAU, India, inflation, investments, Jeffrey Nichols, Jim Rogers, John Embry, Keith Fitz-Gerald, majors, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, monetization, Moving Averages, NAK, NGC, NXG, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, SWC, Technical Analysis, TIPS, U.S., U.S. Dollar, volatility, warrants, XAU

Hey Buddy, got a spare jack I can use? The fixaflat turned out to be nothing but hot air and evaporated! So now I need a jack to change the tire so I can get this economy back on the road.

Some very interesting conspiracy theories coming out about Goldman Sachs and Paulson, which leads one to question why did the AIG exec committ suicide? There have been stories on the net that he really was murdered even!

My question is what did he know about Freddy Mac’s books? How much of our taxpayer money was diverted elsewhere? Who are the people whose pockets got lined? Could this scandal be pointing back to Mr. Dodd and Mr. Frank? Mr. Cuomo here is something else you need to be investigating (if you’re not already).

We are now hearing about Bank of America being forced into buying Merrill Lynch! The rats are Ratting! I will say it again the other shoe is getting ready to drop. They are busy juggling it like a seaming hot potato, but it will drop.

Well the Dow managed to eke out a little gain in spite of more bad news for the economy. For me, it was a great opportunity to buy more (SKF) at $58.89 and I decided to also buy some (DXD) at $56.23.

The DOW may make another try at 8000 but it will fail and (DXD) will do quite nicely thankyou.

For (SKF) I’m looking at a gap that needs to be filled around the $90 mark so that is my first target for now.

For Gold it broke $900 and closed above that. Next target $928.00 then $950, then $980. If all of those are successfully broken (which I think they will), then look for new all time highs!

That’s it for now- Have a Great Evening! – Good Investing! – jschulmansr

Follow Me on Twitter and be notified whenever I make a new post!

===================================================

A new site that is in pre-launch state that will become a virtual world – chat, shop, play, videos, etc. Anyways they are giving free shares (that should become actual company shares) to anyone who signs up and more shares if you refer people.===================================================

– Trend Analysis Revealed –

Substantial moves like the ones that we have recently witnessed present opportunities to succeed or fail in the markets. Traders who stayed on the correct side of the trend were rewarded substantially.

Serious questions effecting your portfolio still remain:

– Have we seen the Indexes bottom or top?
– Is a reversal in the near future?
– Is it too late to go short?

Stay on the correct side of the market. Let our Trade Triangle technology work for you. It’s free, It’s informative, It’s on the money.

Free Instant Analysis delivered to your email inbox. Analyze ANY Stock, Futures, or Forex symbol.

Click Here For Your Free Analysis

===================================================

Bespoke’s Commodity Snapshot – Seeking Alpha

Source: Bespoke Investment Group

Below are our trading range charts for ten major commodities. The green shading represents 2 standard deviations above and below the commodity’s 50-day moving average. When the price moves above or below this green shading, the commodity is in extreme overbought or oversold territory.

As shown, after reaching overbought territory a few weeks ago, oil has pulled back to just above the middle of its trading range. Natural gas, on the other hand, can’t get out of the downtrend that it has been in since last June. After trending higher since last October, gold and silver have recently moved to the bottom of their trading ranges, but they bounced nicely off of oversold territory a couple days ago. Platinum has held up better than gold and silver and is closer to the top of its trading range than the bottom. Copper continues to trend higher, along with orange juice, while corn, wheat, and coffee are in a sideways trading pattern.

===================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out:

· Who’s been driving this record bull-run in gold?

· What Happens When Inflation Kicks In?

· Why most investors are WRONG about gold…

· When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

====================================================

Even Jack Bauer couldn’t stop ‘The Goldman Conspiracy’

By: Paul Farrell of MarketWatch.com

ARROYO GRANDE, Calif. (MarketWatch) — Two mind-numbing fast-paced dramas. Two parallel worlds. One real, one fiction, both deadly. Jack Bauer, mythic hero of “24.” Dying from a deadly bio-pathogen leaked from weapons developed by Starkwood, a rogue mercenary army attacking the presidency, hell-bent on taking over America.

The other drama in play: “Hank the Hammer” Paulson, iconic Wall Street hero, a Trojan Horse placed inside Washington by Goldman Sachs as Treasury Secretary in control of America’s $15 trillion economy. Goldman, a modern dynasty with vast financial powers much like those once used by the de’ Medici, Rothschilds and Morgans to control nations.

Both dramas play high-stakes games with financial WMDs that have lethal consequences. Jack compresses thrills, kills and chills into 24 hours. Hank, Goldman and their army of Wall Street mercenaries move with equally blinding speed, heart-pounding action.

Drama? You bet.

Six short months ago Hank led an assault on Congress. The scene parallels one in “24:” Sangala War Lord Juma’s brazen attack inside the White House. But no AK-47s necessary.

The Hammer assaulted Congress with just a two-and-a-half page memo in hand. Like a crack special-ops warrior, he took down the enemy, demanding $750 billion, absolute control, total secrecy, no accountability and emergency powers to act immediately … warning that inaction was not an option, that collapse of America’s banking system was imminent, would bring down the global monetary system, pushing world’s economies into a “Great Depression II.”

Congress surrendered.

Here’s the whole plot:

Scene 1. American government is now run by the ‘Goldman Conspiracy’

Oh, you really think just I’m plotting a television series? Or just paranoid, exaggerating this power grab? You better read “The Usual Suspects,” Matthew Malone’s brilliant article in Portfolio magazine: He “exposed” the “Goldman Sachs ‘conspiracy’ to take over the U.S. financial system.” Read it in this context: America’s financial sector has exploded from 19% of corporate profits in 1986 to 41% today, becoming a magnet for every wannabe billionaire.

They know why Wall Street must control Washington.

Malone focuses on the incestuous “conspiracy” of Goldman alumni in Treasury, Bank of America, Merrill Lynch, AIG, Citigroup, Washington lobbyists and politicians.

Scene 2. Huge conflicts motivating Wall Street’s ‘Trojan Horse’

And just in case you think any emphasis on The Hammer’s conflict of interest was invented purely to increase drama, please remember that he worked at Goldman for three decades after serving under Nixon. He got $38 million his last year as CEO in 2006 before becoming Treasury Secretary.

Then during the market meltdown six months ago the $700 million personal fortune he built at Goldman was threatened by Goldman’s huge $20 billion derivatives exposure at AIG: Suddenly his responsibilities at Treasury merged with a strong self-interest in protecting his personal fortune. AIG was “saved.”

Scene 3. Wall Street’s ‘quiet coup’ also runs world’s banking system

There’s another equally disturbing expose in “The Quiet Coup,” Simon Johnson’s great article in Atlantic magazine. A former chief economist at the International Monetary Fund, Johnson also warns that America’s “financial industry has effectively captured our government” and is “blocking essential reform.”

Worse, he says that unless we break Wall Street’s stranglehold (unlikely in the new Washington) we will be unable “to prevent a true depression,” warning that “we’re running out of time,” echoing many of our predictions of the “Great Depression II” coming soon. See previous Paul B. Farrell.

Scene 4. Wall Street used the meltdown to take over America’s government

Matt Taibbi, author of “The Great Derangement,” captured this drama in a Rolling Stone piece, “The Big Takeover, how Wall Street insiders are using the bailout to stage a revolution.” A must-read:

“As complex as all the finances are, the politics aren’t hard to follow. By creating a crisis that can only be solved by those fluent in a language too complex for ordinary people to understand, the Wall Street crowd has turned the vast majority of Americans into non-participants in their own political future. … in the age of CDS and CBO, most of us are financial illiterates.”

Wall Street “used the crisis to effect a historic, revolutionary change in our political system — transforming a democracy into a two-tiered state, one with plugged-in financial bureaucrats above and clueless customers below.”

Scene 5. How Obama is keeping alive Bush’s ‘disaster capitalism’

Back in 2007 at the start of the meltdown, Hank was misleading us in Fortune: “This is far and away the strongest global economy I’ve seen in my business lifetime.” In the real world, Naomi Klein, author of “The Shock Doctrine: Rise of Disaster Capitalism,” was warning us that “during boom times it’s profitable to preach laissez faire, because an absentee government allows speculative bubbles.”

But “when those bubbles burst, the ideology becomes a hindrance and goes dormant while big government rides to the rescue.” Then, free-market “ideology will come roaring back when the bailouts are done.

The massive debts the public is accumulating to bail out the speculators will then become part of a global budget crisis.” TARP paybacks: Obama has a new “disaster capitalism.”

Scene 6. Wall Street’s CEOs rule like dictators in a banana republic

Seriously, here’s how bad Taibbi sees it: “Paulson and his cronies turned the federal government into one gigantic half-opaque holding company, one whose balance sheet includes the world’s most appallingly large and risky hedge fund, a controlling interest in a dying insurance giant, huge investments in a group of teetering megabanks, and shares here and there in various auto-finance companies, student loans, and other failing business.”

And let’s include $5.5 trillion in Fannie Mae and Freddie Mac. Wall Street’s greed and stupidity resembles the self-destructive reigns of banana republic dictators.

Scene 7. Wall Street makes an un-American bet on ‘disaster capitalism’

Today as you ponder buying some Goldman stock, remember, you’re really betting that “disaster capitalism” is back, strong, tightening its stranglehold on Washington and on the American taxpayers, who will guarantee all Wall Street’s future failures. Yes, this is un-American, but so what?

The “Goldman Conspiracy” is still probably a good short-term buy … if you’re interested in betting on America’s new “democracy of capitalists, by capitalists, and for capitalists,” with “The Conspiracy” leading the joint chiefs of this new mercenary army … and it only took six short months for their “Quiet Coup!”

Scene 8. Banks recycle TARP money, pump earnings, cheat America

Here’s how it worked: The Hammer conned a clueless Congress, then shelled out $350 billion of our taxpayer money (Helicopter Ben Bernanke helped by upping the ante with a couple trillion side-bet), buying toxic debt to save his ol’ Wall Street buddies. They stopped lending and used the dough to doctor their balance sheets.

So no surprise that Goldman, Wells Fargo and J.P. Morgan Chase are now reporting “blockbuster” first-quarter earnings, says the New York Times, while just months ago “many of the nation’s biggest banks were on life support.”

Get it? They screwed taxpayers and borrowers so they can repay TARP with (you guessed it) our recycled TARP money. Now it’s back to business-as-usual, with no restrictions on CEO pay and bonuses … no thank-yous … no admissions of guilt … while some even arrogantly deny that they ever needed TARP money.

Scene 9. Wall Street’s already set the stage for new disaster

Right after the election in November, at the peak of the banking crisis, when Hank, Goldman and the Wall Street mercenary armies were divvying up the $350 billion TARP money, we detailed 30 reasons for the “Great Depression II” likely coming around 2011.

We quoted John Whitehead, former Goldman Sachs chairman, former chairman of the New York Fed, former Reagan deputy secretary of state. He warned America’s problems will take years, burn trillions, result in massive deficits:

“This is a road to disaster,” he said. “I’ve always been a positive person and optimistic, but I don’t see a solution here.” He did see a depression at the end of that road, one you can call the “Great Depression II.”

Scene 10. Obama turned ‘The Goldman Conspiracy’ into a superpower

Do you see the parallels: Jack and Starkwood, Hank and Goldman? Jack’s a great mythic hero. We need to believe a hero will defend the little guy, stand between us and total annihilation. But Jack Bauer’s “dead.” Yes, dead. Jack’s not real. Never was “alive.” Jack’s a fiction, a figment of Main Street America’s vivid imagination, the symbol of “hope” for a populist revolution.

Hope that Jack, Barack or some other new hero will emerge, take power back from Wall Street and return it to the people.

Unfortunately that won’t happen, folks. Yes, on TV Jack will come back from near-death, again. But in real life, Hank, Goldman and Wall Street’s mercenaries are winning the war.

Read and weep Portfolio’s chilling finale: “Obama’s victory and Geithner’s appointment are the completion of Goldman’s meticulously crafted plan to become a superpower. The firm now has the clout to impose its will on the financial markets, and the world.”

GOP or Dems? Conservatives or liberals? It doesn’t matter. We’ll all controlled by “The Conspiracy.” So why not surrender, let them have the power? The truth is, through their lobbyists and surrogates in Washington, they already rule America. Surrender is a mere formality.

Accept reality. Hold them accountable later. After the next crisis.

After the next meltdown of disaster capitalism — if there’s anything left after the “Great Depression II” sweeps like a pandemic across the planet, consuming all economies, for a long time. But for now, Goldman and other banks may well be short-term buys. Just be ready to dump them in the near future … a scenario that will be here sooner than you think.

===================================================

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Exposed! Five Myths of the Gold Market and find out:

· Who’s been driving this record bull-run in gold?

· What Happens When Inflation Kicks In?

· Why most investors are WRONG about gold…

· When and How to buy gold — at low cost with no hassle!

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====================================================

The Swan Dive- Next For Stocks?

14 Tuesday Apr 2009

Posted by jschulmansr in 10 year Treasuries, 20 yr Treasuries, agricultural commodities, ANV, Austrian school, AUY, Bailout News, banking crisis, banks, Barack Obama, bear market, Bear Trap, bilderbergers, Bollinger Bands, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, Comex, commodities, Contrarian, Copper, crash, Credit Default, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, Dow Industrials, economic, Economic Recovery, economic trends, economy, EGO, Fed Fund Rate, Federal Deficit, federal reserve, Finance, financial, follow the money, follow the news, Forex, FRG, Fundamental Analysis, futures, futures markets, G-20, gata, GDX, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, GTU, hard assets, heating oil, HL, How To Invest, How To Make Money, hyper-inflation, IAU, India, inflation, investments, Jeffrey Nichols, Jim Rogers, John Embry, Jschulmansr, Junior Gold Miners, Keith Fitz-Gerald, Latest News, majors, Make Money Investing, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, mining stocks, monetization, Moving Averages, NAK, natural gas, NGC, NXG, oil, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, S&P 500, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, Stimulus, stock market, Stocks, SWC, TARP, Technical Analysis, The Fed, Tier 1, Tier 2, Tier 3, TIPS, U.S., U.S. Dollar, volatility, warrants, XAU

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Well Mr. Obama said the same old, same old today and didn’t help the market at all… ANY of them! Mr. Obama what do you have against the market? I mean like your whole cabinet are all Good Ole Wall Street Boys!?! The Dow failed to maintain above 8000 today and that is a very bad sign or good depending which side of market you are on. It appears now the the intermediate wave (Elliott) is finished and stocks have climbed to the top of the diving platform. 1st attemp at a swan dive- difficulty easy. So wil it be a perfect 10 or a belly flop? Either Way the Dow is going down! My first target 7200-7500 and then a test of the 6500 level lows, (Called The “Bottom” recently). Gold and Precious Metals continue to consolidate getting ready to launch for a new test of $920, then $980, then the all time high. I think the news is going to be that bad and that dramatic. The Middle East is about to explode, N. Korea just threw out the inspectors, even the pirates are snubbing their noses at you Mr. Obama. So now the question is are you a man or a mouse? Squeak up! Copper is quietly having a nice rally, China is buying up all of our soybeans, and oil is getting ready to explode to the upside. Keep accumulating Gold and Precious Metals in any form, buy producers with production, you should jump into (DGP) with a little risk money too! In currencies my pick is the Aussie dollar, accumulate on dips because as Gold goes so will the Aussie Dollar. Good Investing! – jschulmansr

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Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out:

·        Who’s been driving this record bull-run in gold?

·        What Happens When Inflation Kicks In?

·        Why most investors are WRONG about gold…

·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

===================================================

My Note: I use these tools and they are great and they work! – jschulmansr

Subject: Two trending markets revisited and analyzed for you

Last week I watched a video analysis of the S&P and Crude Oil markets. The technical analysis was right on at the time, but those markets have changed quite a bit in the last few days. The S&P had a huge rally and Crude seemed to steady out, so what’s the new analysis? Glad you asked!

Below are two free videos, one on Crude Oil and one on the S&P, that gives us an indepth technical look into these markets. Again the videos are free and very informatitive. Just Click on the Links Below…

S&P Video Analysis: Crude Oil Projections:

Here’s your chance to analyze that stock you have been thinking about adding to your portfolio. Just enter the ticker of any company, name of a commodity, or forex pair and get your complimentary technical analysis. It cost you nothing and and no payment info will ever be requested.

Click Here To Enter Your Symbol/s

My Note: I use these tools and they are great and they work! – jschulmansr

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Pros Say: Sharp Market Pullback This Week – CNBC

Source: CNBC.com

Encouraging numbers from an investment banking giant dominated discussion among the pros, who tied them to massive government stimulus efforts — and doubted they would carry ahead to economic numbers, or even to results from other investment banks.

Financials Show Surprising Strength; Consumers Still Look Weak

Scott Brown of Raymond James said there has been a real change in the attitudes and behavior of consumers, with fear now dominant. That is likely to be reflected in retail data this week, and there’s no likelihood that consumer spending will rebound any time soon. (click to watch the video).

Stocks ended near their session lows Tuesday after a report showed retail sales unexpectedly dropped in March and as worries about banks simmered ahead of some key earnings.

The Dow Jones Industrial Average tumbled 137.63, or 1.7 percent, to close at 7,920.18. The S&P 500 lost 2 percent, while the Nasdaq skidded 1.7 percent.

Retail sales tumbled 1.1 percent

last month, a big disappointment as economists polled by Reuters had expected a 0.3-percent increase. Excluding the volatile auto component, sales fell 0.9 percent. The two prior months were revised upward, offering some consolation, but the unexpected sharp drop rattled the market.

“The inescapable fact is that the U.S. consumer is faced with daunting fundamentals: Wage and salary income growth has evaporated, credit is very tight, home prices continue to decline … [which] makes it very likely that the U.S. consumer will remain a drag on economic activity in coming quarters,” MFR economist Joshua Shapiro wrote in a note to clients. “Fiscal stimulus will help to blunt this, but is unlikely to turn the tide completely.”

Markets are Overbought; Retail Numbers = Long Way to Go

Disappointing retail sales numbers in March, after two stronger-than-expected months, show the consumer has not turned the corner after all, and may “go back in his cocoon,” according to Art Cashin of UBS. The market is overbought and vulnerable to a pullback — perhaps even a sharp pullback over the next three days — with option expiration built in. He is hopeful we have set the lows for the cycle, although those lows may be tested, and he foresees a lot of “sideways churning for maybe months.

My Note: Unfortunately if sideways churning includes testing those lows then I absolutely agree if those lows hold. Unfortunately, I don’t think they will, can you say DOW 4500? – jschulmansr

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Oil and Gold to Figure Large This Week – Seeking Alpha

By: Brad Zigler of Hard Assets Investor

Real-time Monetary Inflation (per annum): 7.9%

Easter Mondays leave Yanks more time to leisurely ponder the week’s trading prospects, as many global bourses are closed. We get to trade – and talk, as Linda Richman used to suggest – amongst ourselves.

Gold and oil naturally figure large in this week’s scenario. Particularly, oil over gold, if you’ve been listening to commodity maven Jim Rogers. Rogers thinks the International Monetary Fund [IMF] is a likely seller of some of its 3,200-ton metal stash, so he’s talking up black gold over yellow.

It’s not as if the world finds this surprising. Whether the IMF sales take place or not, the world’s been spoiling for a showdown between the two commodities.

Let’s look at oil first. The nearby crude contract gathered strength in its 50% retracement of the February-March rally, and is now poised to challenge the run-up’s $54.64 high.

Nearby NYMEX WTI Crude

Nearby NYMEX WTI Crude

True, near-term fundamentals still indicate oversupply. The re-growth in the contango tells you that. The quarterly carry trade was pinched to 80 cents a barrel a month ago; now it’s in the $4-5 range. If you’ve got a carrying charge market, you’ve got commodity enough to carry into future deliveries.

No, this has been a rally built more on expectations of improving economic prospects – hand-in-hand with the equity market rally – than on a supply retraction. Oil inventories at the Cushing, Okla., terminus may be down from their peak, but supplies in other regions have ballooned to more than compensate for the off-take.

Now, about gold …

Momentum and sentiment have turned sour for the yellow metal. But you probably suspected that, right? The recent 30,000-contract downdraft in COMEX open interest was led mostly by fund sellers. Net long positions held by large speculators tumbled more than 18% last week.

COMEX Nearby Gold

COMEX Nearby Gold

Technically, gold’s very vulnerable. Pushed to test its 100-day moving average on the downside and weighed down by overhead resistance at the $888 level – formerly support for the February-March topping action – the nearby market’s squeezed. Gold spreads (as mentioned in “Another ‘Make It Or Break It’ Hurdle For Gold“) indicate plenty of liquidity in the lease market. Supply’s not the issue for gold either. At least not yet.

Oil’s technical strength over gold is readily apparent in the gold/oil ratio. A rising ratio, meaning gold’s price is gaining on oil’s, is indicative of poorer economic conditions to come. A decline, not surprising, signals the market’s forecast of better prospects. The ratio’s been testing the 17-to-1 level over the past couple of weeks. An oil breakout could put this indicator on course to look for support at the 15-to-1 level.

Gold/Oil Ratio

Gold/Oil Ratio

It seems traders are essentially anticipating a reflation trade by making one of the primary engines of inflation, oil, their target rather than gold, inflation’s classic beneficiary.

This should be an interesting week.

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My Note: Brad you need to remember this time the Miner’s have started to begin the rally not the bullion market. When that happens Gold always rises. But with the producer’s/miner’s leading we will have a much stronger and deeper rally this time, I’m looking for $1200 – $1500 by year’s end! Have a Great Evening, don’t forget tomorrow is National Tea Party Day! – jschulmansr

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Has World War III Started?

09 Friday Jan 2009

Posted by jschulmansr in agricultural commodities, alternate energy, Austrian school, banking crisis, banks, Barack Obama, bear market, Bollinger Bands, bull market, capitalism, central banks, China, Comex, commodities, communism, Copper, Currencies, currency, Currency and Currencies, deflation, depression, diamonds, dollar denominated, dollar denominated investments, economic, economic trends, economy, Finance, financial, Forex, Fundamental Analysis, futures, futures markets, gold, gold miners, hard assets, heating oil, How To Invest, How To Make Money, India, inflation, Investing, investments, Keith Fitz-Gerald, Latest News, Make Money Investing, Marc Faber, market crash, Markets, mining companies, mining stocks, Moving Averages, natural gas, Nuclear Weapons, oil, palladium, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, rare earth metals, recession, risk, run on banks, safety, Saudi Arabia, Sean Rakhimov, Siliver, silver, silver miners, small caps, socialism, sovereign, spot, spot price, stagflation, Stocks, Technical Analysis, timber, Today, U.S. Dollar, uranium, volatility, warrants, Water

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agricultural commodities, alternate energy, Austrian school, banking crisis, banks, bear market, Bollinger Bands, bull market, capitalism, central banks, China, Comex, commodities, communism, Copper, Currencies, currency, deflation, depression, diamonds, dollar denominated, dollar denominated investments, economic, economic trends, economy, financial, Forex, futures, futures markets, gold, gold miners, hard assets, heating oil, India, inflation, investments, Keith Fitz-Gerald, Marc Faber, market crash, Markets, mining companies, Moving Averages, natural gas, oil, palladium, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, rare earth metals, recession, risk, run on banks, safety, Saudi Arabia, Sean Rakhimov, silver, silver miners, socialism, sovereign, spot, spot price, stagflation, Technical Analysis, timber, U.S. Dollar, volatility, warrants, Water

Has World War III already started? According to Marc Faber it has! Check out his interview. Next do you think the government can lose? According to this pundit not only will it lose it is going to lose big! Finally, for years now China has been coming to the rescue by buying Treasuries and US Debt, what will happen when they and other countries stop? Continuation of series from yesterday’s post. Just In! Peter Schiff Interviwed on Russian TV- Get Prepared! adjust your portfolios and if you own Precious Metals hang on for the ride of your life!- Good Investing!- jschulmansr

Marc Faber on the Economy, Gold, WWIII – Seeking alpha

By: Tim Iacono of Iacono Research

Another good interview with Dr. Marc Faber, this one over at Bloomberg where he’s been a regular for many years (recent appearances at the likes of CNBC are somewhat unusual as he tends to go against conventional wisdom, something that abounds at CNBC).

Click to play in a new window

There’s lots of good stuff in this one – the outlook for the global economy, oil, gold, base metals, natural resource stocks, World War III having already started…

On the subject of alternatives to the government solutions for the current problems, he was asked how he expected the populace to stand for the government doing nothing?

That’s the problem of society. If people can not accept the downside to capitalism, then they should become socialists and then they have a planned economy. They should go to eastern Europe twenty years ago and to Russia and China for the last 70 years.

How do you tell that to somebody in Detroit who’s losing his home today?

Why is he losing his home? Because of government intervention. The government – the Federal Reserve – kept interest rates artificially low and created the biggest housing bubble, not just in the U.S. but worldwide. That is what I’d explain to the worker in Detroit.

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How the Federal Government will Lose in 2009 – Seeking Alpha

By: Rob Viglione of The Freedom Factory

Through a combination of incompetence and greed, the federal government has placed itself in a position of checkmate. There is no way to finance its budget deficits without devaluing the dollar or causing interest rates to rise. With $10.6 trillion in debt, $8.5 trillion in new money created or given away in 2008, and multiple years of trillion dollar deficits planned by Obama, government has no way to fund its extravagances without either printing a lot more money or borrowing unprecedented sums.

This means that either Treasury bonds will crash, or the dollar will suffer significant devaluation relative to foreign exchange or precious metals, especially gold.

TV Does Great Interview With Peter Schiff (Russian TV, That Is)

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Remember Dare Something Worthy Today Too!

Market forces are telling the world to shed unproductive assets and shrink capacity, yet central banks and governments around the world, in particular the U.S., are refusing to listen. Rather than allow markets to snap back to sustainable equilibrium from previously artificial highs, the federal government clings to the notion that forcibly shuffling resources, propping up asset prices, and diluting the money supply will magically save the day.

There are consequences to everything. The consequences of shuffling resources (taxing productive ventures and doling out those resources to failing ones, i.e. bailouts) are stunted growth for good businesses and propagation of bad ones. Artificially propping up asset prices means that those who are generally less competent remain the custodians of society’s capital, and diluting the money supply inflates aways everyone’s wealth over time, particularly harming the poor and middle class.

For decades the federal government has gotten away with this reshuffle and inflate game, but the pawns are drowning, the rooks helpless, and the knights ready to turn on the King. Perhaps this is overly dramatic. Clearly, I doubt the capability of the Federal Reserve, Congress, and Obama to “fix” the economy; rather, I strongly believe they are destroying it by forcing us all to drink this Keynesian Kool-Aid. However, whether or not the economy recovers amidst this historic central government action, there are two phenomena we can exploit to our advantage:

Short the US dollar

Short US Treasuries

In “When will the great Treasury unwinding begin?” I show how government debt has been bid to unsustainable levels and will likely fall. The one concern I see stated all too often is that the Federal Reserve will keep buying Treasuries to artificially depress interest rates. This will, it is claimed, keep bond prices inflated. The one undeniable counter to this is that government must somehow fund its $1.2 trillion estimated 2009 deficit. It cannot do this by issuing and then buying the same bonds. It can only raise revenue by selling bonds to other parties, or by diluting the money supply by cranking up the printing presses. There are no other options. There you have it – we have the government in checkmate!

The likely outcome is that they will try to do both. That is why I am heavily shorting both 30-Year Treasury bonds and the dollar. Both assets will likely lose as the government becomes increasingly desperate and the world’s biggest buyers realize there are better alternatives available. Make your bets now before it becomes treasonous to bet against Big Brother!

Disclosure: Long UDN, short TLT, long GLD.

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Five New Forces to Drive Gold Higher – Seeking Alpha

By: James West of The Midas Letter

Gold naysayers habitually point to the relatively weak performance of gold relative to the broader market over the last 5 years. Given the market today, that argument is increasingly wrong, and the naysayers are soon to either admit their mistake, or pretend that they were never naysayers at all. That’s because during the last 3 months, five major new forces have emerged to compound the previous strong drivers of the gold price up to now.

These new forces are as follows:

China has stopped buying U.S. debt.
An interesting piece in the New York Times today signals that China, up until now the biggest buyer of U.S. Treasuries and bonds issued by Fannie and Freddie, is moving towards an end to that policy. China holds over US$1 trillion of such paper, and as interest rates collapse, there is less and less incentive for them to buy American.China has made several adjustments to programs that used to give banks and other financial institutions within the country incentive to buy U.S. assets, which means essentially that these same customers for assets will now be looking for Chinese products.The effect this will have on gold is two-fold. In the first place, reduced demand for U.S. debt will hamper Obama’s plans to keep printing money, because the one limiting factor that still seems to be respected in terms of how much paper can be printed, is the idea that there must be a counterparty to every issuance of T-Bills to warrant continued printing. Theoretically, less demand for T-Bills will force a rise in interest rates to attract investors. But that does not appear forthcoming, which will make the U.S. dollar weak relative to other currencies – especially gold.The second effect is that by eliminating incentives for Chinese banks to acquire U.S. denominated assets, investors there will divert more funds to holding gold as a hedge against their current U.S. dollar holdings, which will be diminishing in value.

Future discoveries of gold deposits will diminish dramatically.
The biggest source of gold ounce inventory for major gold producers is the discoveries made by the several thousand juniors who scour the earth in search of favorable geology. With the collapse in base metals prices, many of these juniors are under increasing pressure to consolidate and downsize, and many more will disappear altogether.That means less money going into gold exploration, and that means the number of new discoveries that can be acquired by majors is going to go down sharply in the coming years. In theory, as gold continues to outperform all other asset classes, there will be a rush back into junior gold exploration, but that won’t happen until gold is taken much higher and investment demand for it soars.

Existing by-product gold production will fall sharply
In copper, zinc and other base metals mines around the world, gold occurs in metallic deposits as a by-product of some other dominant mineral. In the United States, 15 percent of gold production is derived from mining copper, lead and zinc ores.With the collapse in prices for these metals, the by-product production of gold is most often insufficient to justify the continued operation of the mine profitably, and it is likely that a significant amount of this by-product gold production will cease along with the shutdown of these operations. The result will be less gold production from existing operations, contributing to the now even faster growing gap between supply and demand.

Gold is becoming mainstream
One of the biggest contributors to gold’s unpopularity as a main street investment is that it has been mercilessly derided and ridiculed by mainstream investment media and institutions. There is very little opportunity for an investment advisor to insinuate himself into a gold purchase transaction, since most anybody who wants to hold the metal can visit their local bullion exchange or mint and buy as much as they’d like. Because the massive investment institutions that dominate the investment advisory business can’t make a fee out of advising you to buy gold, they try to convince you to purchase other asset classes which their firm has either originated or is a participant in a syndication of investment banks selling such products.Thanks to the widespread coverage of the questionable integrity of these complex securities, and since many main street investors have been burned by their investment advisors (they feel), there is increasing main street advice being doled out to buy gold. One need only search Google news on any given day to discover that headlines critical of gold are now replaced with headlines singing its praises.

Gold is the best performing asset class of the decade
Now that the global financial meltdown has got up a head of steam, investors are hard pressed to find any investment that has performed well over the last ten years as consistently as gold. The chart below outlines this performance and appears here courtesy of James Turk’s GoldMoney.com.

Gold Performance: 2001-2008 (click to enlarge)

As you can see, any investment still returning an average of 10 – 17 percent is a winner, compared to everything else you can generate a chart for. As this intelligence permeates the none-too-quick popular investment imagination, and, combined with the other 4 factors, gold is going to be where the world’s next crop of millionaires is minted.

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It’s Jiffy Pop Time! Gold and Stock Markets Weekly Wrap Up

Black September is Here Again!

The “Other” Shoe Is It Dropping?

A Sucker’s 2 day rally – New $725 Stock Tip!

Quick Update for Dare Something Worthy Today Too!

Hey Buddy Got a Jack I can Use? – Fixaflat 2

The Swan Dive- Next For Stocks?

Has World War III Started?

TV Does Great Interview With Peter Schiff (Russian TV, That Is)

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