-- Posted Monday, 20 October 2008 | Digg This Article
| Source: GoldSeek.com
Earlier last week I noticed the furrowed brows on the CNBC media-bots as they pouted and exclaimed that the S&P500 is trading at 2003 levels. But by the end of the week Warren Buffett, champion of the common man, came to the rescue by saying its time to buy back into the broad market. I wonder if he is buying PM stocks, since the $XAU is trading at 1984 levels?
Seeking value, Uncle Warren? Relative to the price of gold, PM stock valuations are presently "off the charts".
PM stocks appear to be saying that either gold is heading to neighborhood of $450 per oz, or the present extreme is unsustainable and PM stocks should rebound sharply. Of course, this could also be a "paradigm shift" - the new "normal", as media-bots claim that gold as a "flight to safety" trade is dead. Kaput. Morte. Yeah - and the only thing more dead here in Amerika is a free press, the Constitution, our civil liberties, and concept of "free markets". But perhaps they're right about a paradigm shift, since previous illegal price manipulation is now sanctioned by law, along with financial dictatorial powers prescribed to the Treasury Secretary, compliments of the fear mongering and threat campaign employed to pass the bailout bill.
And so now, our ascendant Eminencies - Lord Paulson and Lord Bernanke, in their infinite wisdom and grace, have proclaimed across the land that certain favored financial firms shall be supported at all costs [especially since the sheople are paying]. Therefore, here in Amerika, despite an industry having lost some if its leading firms to bankruptcy, nationalization, or dismemberment by JP Morgan - whose collapses [after losing wild leveraged bets on the housing market] caused derivative and carry-trade unwinding, a credit market freeze, and spawned a cascade of selling across global financial markets - threatening to vaporize the entire global financial system - yeah that sector, the Banking sector - has been outperforming PM Stock sector on a relative basis since July.
So we see, here in Amerika, that justice and reality can be dictated, and that mercy is for the weak. The "flight to safety" rally into Gold "died" - because there never was any flight to safety rally into Gold in the first place. Gold was sold off with the broad market, we were told, by hedge and pension funds to raise cash as part of an overall deleveraging process. Out with the bath water goes baby! If that was the case, then why was Gold down another -7.22% this past week while the DJ Index rose +4.75%? Oh yeah, Barclays reports that some European central banks sold some 7.6 tons during the week, although I didn't hear that mentioned as a possible reason by the media-bots. I guess all those troubled hedge and pension funds must be feeling a lot better since they dumped all their Gold, Silver and PM stocks, so they could turn around and buy more Goldman Sachs stock, which rose 28% this past week. So nice living here in Amerika, where it's always 1984!
Sow the Wind, Reap the Whirwind
"They sowed wind, and wind, and ever more wind; for they alone knew how to reap the whirlwind and make a profit out of it. And such profits! Colossal profits! Strong enough themselves to weather the storm that was largely their own brewing, they turned loose and plundered the wrecks that floated about them."
~ Jack London
We know our Lordships will continue to sow the wind by inflating us into oblivion, or march troops into the streets of Amerika in order to delay their day of reckoning, before they relinquish control of their fiat-money-printing system and all the worldly riches and power that comes with it. They will continue to expand their control, subverting Constitutional law and civil liberties, printing money out of thin air to buy politicians and charging us interest on the transaction. Their agent minions will continue to pillage the system by making wild bets in the marketplace, and if they lose - we will pay. Is this the "freedom & democracy" we are exporting at the barrel of a gun? Uh, actually yes. Is McBama going to "change" any of this? No - they are both for the bailout, both OK with ascending government financial and police powers, OK with the private Federal Reserve's fake-money-printing-machine, and deficit funded Hitlerian pre-emptive war.
Gun barrel diplomacy? Thanks, but no thanks. With love, Baghdad.
Rest assured, it is We The People that will reap the whirlwind of the inflation tsunami heading our way, as trillions are pumped into a failing system. But it is our children that will inherit the wind, in a feudalistic, morally bankrupt pretend democracy that counts flipping hamburgers as manufacturing, and considers "patriotism" as believing whatever El Presidente says - to be fleeced and cheated out of true economic freedom and opportunity. Or, perhaps all the King's horses and all the King's men won't be able to put Humpty together again - and we will get that SYSTEMIC COLLAPSE sooner rather than later. Well then, here's to Humpty choking on a chicken wing and the whole freaking system collapsing on the heads of our Lordships! In either event, anyone who speaks of the "Amero" as the next currency to replace the dollar is a globalist traitor.
In the meantime, we must vote out every Senator and Congressperson who voted for the bailout. We must pour into this task as we did the campaign to contact our representatives - which was impressive and encouraging. Channel the energy and disgust into taking back our election process. Screw the masters and their bogus electronic voting machines! They must all go! Time for all of us to stand up to local officials and find out what is so difficult and scary about an accurate accounting of physical votes in full public view?
From Beverly Harris' "Hacking Democracy" & Blackboxvoting.org
I would rather the count be correct than fast. Counting the vote should be a celebrated, flag-waiving, apple-pie-eating holiday and community event like the 4th of July! In fact, since it only occurs once every 4 years, I propose we make the whole election an public counting process a 3 or 4 day weekend, so there is no delay or time for shenanigans. Then maybe more people will show up and vote for anything but a Rebuplocrat, as only 17% of the population actually voted in El Presidente. Heck - I'll even take the Green Party as long as they support abolishing the Federal Reserve system!
Ruben T. Varela
RVarela@TheGoldenBull.net 
Ruben T. Varela is an independent trader specializing in the Precious Metals sector. More charts are available on his public chart blog at Stockcharts.com; TheGoldenBull. You can also subscribe to receive weekly updates and commentary on the political and economic issues affecting the precious metals sector by visiting TheGoldenBull website.
-- Posted Monday, 20 October 2008 | Digg This Article | Source: GoldSeek.com
