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US MARKETS

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GOLD, SILVER, PLATINUM, PALLADIUM AND URANIUM

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Well, the PPT started the month of December off with yet another "Puff the Fluff" extravaganza, cocking the gold suppression gun and pushing bullets into its chambers, ready for the next round of market-crashing hits on gold.  With the Fed making ready to bail out the Wall Street pirates and brigands on December 11 with another dollar-killing rate cut of at least .25%, and perhaps even .50%, on both the Fed funds rate and its discount rate, we could have expected no less.  The PPT always helps the Fed keep on top of its number one priority - gold suppression.  Capping the price of gold is JOB ONE at the Fed, and if certain markets have to suffer collateral damage so that gold can be squelched, the Fed does not even bat an eyelash.  Because spot gold will shortly be threatening to take out its all-time high of 850, the cartel is once again presented with a scenario, which in their collective minds must be avoided at all costs.  Once 850 is taken out, gold will become a self-propelling force!  The shattering of its all-time high will be big news that the elitist-controlled press can no longer ignore without losing all credibility.  When 850 is taken out, the pros will jump in first with both feet to grab what they can before they start promoting it to the public.  They will do this so they can envision the killer profits they will make as they reach for the Rolodex.  Once the public comes in, you can all wish the cartel "Auf Wiedersehen!" as their gold shorts implode everywhere.  The CEO's of the evil cartel's insider banks will then get their cyanide pills ready as they consider all the gold they sold for next to nothing, gold that might have saved their institutions which are about to explode and go down in flames as the credit-crunch compels them to do a reenactment of the Hindenburg.

The Dow has been pumped up since its recent closing low of 12,743.44 on November 26, a precise 10% correction point that of course makes for a bottom in highly manipulated markets.  A whopping 882.14 points of market-crashing power has been added in a very short two weeks to bring the Dow to 13,625.58 as of this Friday's close.  You might ask how this is possible when the fundamentals for the stock markets are now so negative that they could induce a large electric current - perhaps even a lightning bolt - and we can assure you that the markets are not grounded so they will be fried into Crispy Critter Country in very short order.  This is not because stock markets are now climbing over some kind of so-called, fraudulently-induced "wall of worry" which has been set up by Wall Street insiders to keep the public out so they can scarf up some undervalued assets before they let the public in to drive the values up so they can make scads of wealth and then bail out the back door while everyone else is left holding the bag.  In the current scenario markets must now try to climb over a "wall of stark, raving terror," so you have to know there is more behind this rally than just a mere "wall of worry."  The key to understanding this rally is to know why the rally is occurring against all odds.  The real reason for this rally is to pump the stock markets up as far above the 10% correction level as possible so that they can be crashed again without breaching the 10% correction bottom if gold threatens 850.  The objective is to hit precious metals by creating a margin-call-inducing, liquidity-draining scenario for holders of gold and silver positions, thereby causing them to liquidate their metals to cover stock losses.

The current stock market rally is the direct result of unprecedented manipulation by the cartel that defies all credulity.  First there are all the phantasms that were created by the Bureau of Lying Statistics over the past two weeks.  We are still laughing at this string of doozies!  Then there is the even more laughable subprime ARM rate-freeze and mortgage-welfare bailout plan for a very tiny subset of soon-to-be struggling borrowers whose rates are resetting at much higher levels that was touted by our "beloved" government this week, a plan of voluntary, private sector cooperation that will be just as successful as the voluntary, private sector, case-by-case, mortgage workout plan was.  And let's not forget the wonderful rate reductions that were jaw-boned by various Fed-Heads that will have no impact whatsoever on the credit-crunch while Europeans continue to flee in terror from anything emanating from Wall Street and while banks continue to distrust one another due to a complete lack of regulation and transparency.  Loose lips used to sink ships, and now they sink SIV's, so no one is going to divulge their insolvency, an act tantamount to committing suicide.  Next, you of course have brute force from the PPT propelling stocks which is being funded as usual with endless repos by the Fed, repos which are leading us rapidly into Banana Republic hyperinflation as treasuries and agencies are monetized.  You won't be laughing at Mugabe much longer, you'll be joining him!  And once again the yen carry trade has been enlisted to boost sagging markets, as a push to these lofty levels can no longer be accomplished by the PPT alone.  To give you some idea about how extreme this recent yen manipulation has been, on the day that the Dow reached its recent low two weeks ago as mentioned above, the yen closed at 108.17 yen per dollar and 160.762 yen per euro.  As of this Friday, the yen stood at 111.72 and 163.826, having "wimped out" thanks to the cartel's Japanese lap dogs to the tune of 3+ yen against both the dollar and the euro.  Rally mystery once again solved.

For those of you who continue to entertain doubts that stock markets suffer on account of a tiny little market where "barbaric relics" are traded, we have put together five scenarios that will show you in spades how stock market crashes and carry trade unwindings have directly corresponded in time to all gold rallies for the entire year of 2007 thus far.  These scenarios correspond precisely to the six sharpest point drops in the Dow for the year 2007, with each crash exceeding 300 Dow points.  There are only five scenarios instead of six because two of the six crashes will be included in a single scenario as they are related.  After reading these scenarios, the people who continue to doubt that stock markets are crashed by an unwinding of the carry trade to create a liquidity drain to hit precious metals will fall into two categories:  Those with brains dense enough to bend light, and those with no brains at all.

Scenario One:  On February 27, the Dow crashed 416.02 points, the seventh highest point loss of all time.  On that day, spot gold had peaked out at 690, closed at 683.60, and then got pounded in the aftermarket all the way down to 660.  On February 26 the yen stood at 120.76 yen per dollar and 158.908 yen per euro.  By March 5, the yen had strengthened to 116.01 and 151.903 to hammer carry trading large specs to put the kibosh on gold.

Scenario Two:  On July 26, the Dow crashed 311.50 points.  On July 24, two days prior, spot gold had peaked at about 687, once again threatening to take out 690.  Central bank sales the following day had failed to push gold down far enough away from 690, the previous 2007 peak, to make the cartel comfortable, so the cartel struck with another market crash the next day.  Because of this liquidity drain, the gold rally was stalled and gold was taken all the way down to as low as 658 the day following the crash as the cartel orchestrated another hit on gold.  On July 19, the day that spot gold took out 675, the yen stood at 122.06 yen per dollar and 168.577 yen per euro.  By July 27, just one day after the crash, the yen had strengthened to 118.56 and 161.799 to demolish carry trading large specs with the express purpose being to suppress precious metals.  You might also note how much the yen had weakened since Scenario One.  Mysterious stock rally between Scenarios One and Two solved.

Scenario Three:  On August 9, the Dow crashed 387.18 points, the ninth highest point loss of all time.  On the previous day, August 8, spot gold had peaked out at 676+, but by August 10, the day after the crash, gold had been pushed down to as low as 658.  On August 14 and 15 there were two somewhat smaller follow-up crashes because the first crash had only held gold down for a few days.  Gold had become very stubborn as it continued to press against the 670 mark, so the follow-up crashes were implemented.  On August 8, the day before the 387.18 point crash of the Dow, the yen stood at 119.76 yen per dollar and 165.365 yen per euro.  By August 16, following the three crash days on August 9, 14 and 15, the yen had strengthened to as low as 112.112 and 150.220, before weakening later in the day to close at 114.03 and 152.823.  This sudden weakening of the yen was accomplished in order to prevent a complete implosion of markets, which had been blasted repeatedly to keep precious metals in check.

Scenario Four:  On October 19, the Dow crashed 366.94 points.  Gold had blown past the 2006 peak of 730 earlier in the month as the Dow was pushed past 14,000 to a new all-time closing high of 14,164.53 on October 9, ten days previous to the crash, by a weakening of the yen and a consequent rewinding of the carry trade.  Much of this new liquidity was diverted from the stock markets and into gold because of the need for a store of value and a safe-haven in light of the ever-worsening credit-crunch brought on by the subprime debacle, so gold had benefited greatly as the cartel desperately tried to build a cushion in the stock markets to protect against relentless and continuous bad news coming out almost daily at that time. Spot gold peaked out at 770 on the day of the crash and had been blasted back down to 748 by October 22, the next trading day.  After spot gold took out 750 on October 11, the yen stood at 117.71 yen per dollar and 167.648 yen per euro.  By October 18, the day before the crash, the yen had strengthened to 115.64 and 165.261 in a feeble attempt to slow gold down after it took out 730 and then 750.  By October 24, the yen had strengthened again to 113.94 and 162.216, while gold was driven to as low as 752 the previous day on October 23.  This yen-hit on gold did not last very long however.

Scenario Five:  On November 1 and again on November 7, the Dow crashed 362.14 points and 360.92 points, respectively.  On October 31, the leading gold futures contract had broken 800 intra-day for the first time in 27 years.  Despite the huge crash on November 1 where the cartel only managed to knock spot gold down from 799 to a low of 784 before it closed at 790.20.  Gold then went on a total rampage, ripping the cartel a new one as spot gold and the leading gold futures contract both closed above 800 for the first time in 27 years the following day on November 2.  The cartel suffered a myocardial infarction when they saw how everyone fled to gold in the aftermath of the crash, and so they quickly reached for their yen nitro pill to stop from keeling over, exploding and going down in flames, which lead up to the second crash of November 7, which conveniently came on the very day that spot gold hit about 846, threatening to take out its all-time high of 850, while the XAU and HUI did in fact take out their all-time highs.  On October 31, the day before the first crash, the yen stood at 115.27 yen per dollar and 166.773 yen per euro.  By November 12, the day of the Veteran's Day Massacre and less than a week after the second crash, the yen had strengthened to 109.409 and 158.998, showing you again in spades just how desperate the cartel was to hammer carry trading large to keep the precious metals from going ballistic.

All these machinations will not work.  Gold will take out 850 in short order no matter what the cartel does so take your positions in precious metals and their related stocks before it is too late.  The cartel is once again pushing on a string as they make massive central bank sales, hit oil and support the dollar ahead of the Fed's meeting because they know they are for some big trouble ahead after they cut.  Large specs should keep buying long-term, in-the-money, un-leveraged protective derivatives at an ever-accelerating pace as stock markets rise, profiting on stocks by selling into PPT provided strength, and culminating with a huge purchase of derivatives and a large sell-off of stocks just before the commencement of any gold rally.  Stock markets will only be supported as long as gold is not rallying.  Remember, the cartel will not hesitate to take a crash detour from its stock rallies if gold starts on a tear, so be ready for them when they strike.  Requiring delivery of physical gold bullion under all gold and silver futures contracts in the future will put the cartel right over the edge of the precipice and send precious metals into outer space.

-- Posted Sunday, 9 December 2007 | Digg This Article