Drum roll please … for the CPI:

08:30 Feb CPI reported 0.0% vs. consensus 0.3%; ex-Food & Energy 0.0% vs. consensus 0.2%
Prior CPI unrevised from 0.4%; ex-Food & Energy unrevised from 0.3%. Y/y CPI 4.0%; ex-F&E 2.3%.
* * * * *

ALRIGHT! WHAT INFLATION PROBLEM?

The DOW rallied 150 points in seconds. The PPT’s sycophant traders were rewarded again for glomming stock futures yesterday morning when the financial markets news was so increasingly bleak. The CPI news was the first piece of unexpected good news (for the believers) in some time and might be the spark to drive more shorts out of the market.

The bullish US stock market stance of some of the Planet Wall Street bulls, and my friend Chuck Cohen, is that the market sentiment is far too bearish, according to the latest Investment Intelligence Report … that historically, so much pessimism leads to sharp stock market rallies. This is just what the PPT gang has been playing for, a number (even if one of the most contrived in history) which forces the shorts to cover. After all, veteran traders know that (in normal free markets) a market which refuses to go down on so much bad news, will go the other way on any kind of good news.

Voila! Market Action Makes Price Commentary … US stock market futures have continued to soar. Planet Wall Street bulls are ecstatic … now that inflation concerns can be put on the back burner, the Fed can reduce the Fed Funds rate by .75 basis points next week.

But, how weird … and also contrived. The yields on US Treasuries were repressed, and on recent monthly lows, on safe haven, market collapse concerns. They just went even lower now that there is less of an inflation concern. Planet Wall Street bulls are even more jubilant.

How so many investors, and the Planet Wall Street crowd, buy into this orchestrated nonsense is amusing. !You Have Got To Be Kidding Me! That is not to say to give kudos to traders who understand the game here. Good for them if they know what our government is doing and are trading accordingly. It is why I won’t short the stock market. However, that said, the Working Group on Financial Markets (and the Administration) is playing for time. Until the system is allowed to work out its excesses due to OVER THE TOP, flawed market manipulation put into play the past many years, rallies won’t go very far.

What has changed since yesterday as to what the real market state of affairs is in the US? ... One contrived report, that’s it. LOONY TUNES!

YIKES! Stop the presses…

09:13 BSC JPMorgan and NY Fed to provide financing to Bear Stearns (57.00)
* * * * *

09:14 BSC Follow-up: JPMorgan and NY Fed to provide financing to Bear Stearns (57.00)
JPMorgan announced that, in conjunction with the Federal Reserve Bank of New York, it has agreed to provide secured funding to Bear Stearns, as necessary, for an initial period of up to 28 days. Through its Discount Window, the Fed will provide non-recourse, back-to-back financing to JPMorgan Chase. Accordingly, JPMorgan Chase does not believe this transaction exposes its shareholders to any material risk. JPMorgan Chase is working closely with Bear Stearns on securing permanent financing or other alternatives for the company. BSC is trading at $62.48 from yesterday's $57.00 close.
* * * * *

Good grief! I didn’t even have time to say that it has been my opinion for some time, and still is, that the US stock market was no place to be because the US financial market system is imploding. That has been the MIDAS rant for MANY months, going into last year. Just a sample of some past headlines again…

3/10 More Steps Closer To The Unthinkable3/7 Silver Stands Out / PPT STUFFED AGAIN / US "System" Disaster2/14 The Unthinkable Might Be Close At Hand!1/17 CATASTROPHE / Yo Silver12/5 THE SMOKE SIGNAL / Dysfunction Junction11/26 PANIC ... GOLD WILL GO BONKERS (Silver Too) OUT OF NOWHERE!!!11/20 "Everything Is NOT Fine" … Gold/Silver Roar Back11/15 Gold Cartel And PPT Upping Financial Market Moral Hazard Risk11/1 Titanic Comparisons Are Not Over The Top8/29 "Everything Is Fine," Again8/17 Calamity It Must Be8/13 There Is The Planet Wall Street Version And Then There Is The Planet GATA Version8/6 White Is Black And Black Is White In The Counterintuitive US Financial Market World8/1 This Is Not A LTCM Problem … This Is The Entire US System!7/31 MARKET CHAOS LOOMS!7/26 Financial World Falling Apart So Gold Cartel Continues To Bomb Gold7/24 The Gold Cartel And PPT Can Only Do So Much7/5 Financial Market Stress Building Noticeably/Extraordinary HUI ActionEnough already … point made as best I can.

Gold has now rightfully blown through $1,000 … it should be up $50. Silver is in new 27-yr high ground and thanks to the PPT the DOW is back above 12,000, after falling 275 points on the Bear news.

This morning was the worst stock market opening I can recall as to its pre-opening call … due to the false euphoria over the CPI. This was due to the Bear news hitting the tape between the time futures closed prior to the opening and the 9:30 NYSE opening.

CNBC is full of hysteria at the moment, with commentators like Madman Cramer screaming. Some calm thoughts from mild mannered MIDAS…

*Thornburg Mortgage was fine one day, bust the next.

*The Carlyle hedge fund was the crème de la crème one day, and tapioca the next.

*Alan Schwartz, chief executive at Bear Stearns, was on CNBC just the other day saying the rumors about Bear’s problems were UNFOUNDED. Today Bear is going bust.

*So, within 2 weeks, three of the most highly regarded financial entities in the US are gonzo.

*What about the next two weeks and months to come? What about lesser financial entities?

*JP Morgan is bailing out Bear Stearns and has been given a backstop by the Fed. In other words, the Fed has told Morgan they will bail them out should Bear not be able to FULLY make good on the illiquid paper they are assuming.

*They are yapping on CNBC that it is unfair the Fed has gone to Morgan with the deal and not allowed others to bid for the same no risk opportunity.

*If these people looked at the markets like we do on Planet GATA, they would realize how understandable this is. Morgan is the Fed’s bank, the derivatives gorilla, one of the major firms that rigs the US financial markets. This is par for the course.

*For a case in point as to the relationship of Morgan and the Fed, all we have to do is go back to the Evergreen deal Morgan gave BARRICK GOLD to do ridiculous hedging near the bottom of the market to aid The Gold Cartel in their price suppression scheme. According to their hedge agreement, Barrick’s Gold hedges can be rolled over ad infinitum, with margin calls not ever having to be met.

*Bear’s Schwartz is a liar. He knew exactly how precarious Bear’s position was, yet went on TV this week to assure stockholders and counterparties that all was A-OK. Markets are about confidence. Confidence in Bear was rightfully eroding, so he went on TV and lied and continued his lying spiel as late as yesterday. To think the reasons for this dramatic bailout occurred overnight is beyond ludicrous.

*The Fed plan "will provide secured funding to Bear Stearns for an initial period of 28 days, seeking to provide short-term relief for Bear Stearns." Even Freddie Mac says that the US housing slump is only 1/3 over. What happens in 28 days?

*Here is what: 11:35 Ex-Treasury Secretary Rubin says "substantial" further action is needed -- WSJ
* * * * *

Back to gold … demand for physical gold surged even further after the Bear news. The PM Fix came in at a historic high of $1003.50.

Once completed, The Gold Cartel went into action under their Plan B attack time, which is after the physical buying is over for the day. Gold was soon taken down below $1,000 on the Comex, dropping $6.

I can hear President Bush on CNBC, speaking in New York, talking about our free markets in America. I want to throw up. He is now ranting about "freedom" flourishing. This time I did throw up.

There was talk all morning long on CNBC about a CRISIS OF CONFIDENCE ... re, how could one trust in anything after what just happened to Bear Stearns. If their CEO wasn't lying, it makes it worse ... meaning nothing can be trusted if they could actually go from just fine to taps. That is where gold comes in. Gold is what it is. Soon the entire investment world will want IN! Silver too!

The gold open interest rose 11,755 contracts to 503,123, as the specs are piling back into gold, willing to take on the backpedaling Gold Cartel.

Meanwhile, the silver open interest continues to contract (down 233 contracts to 161,496) as the silver price continues its ascent. The silver COMMERCIAL SIGNAL FAILURE is astounding. The trapped commercial shorts are DESPERATE. They are covering on a daily basis. Wait until the specs decide to come back into silver, as they are now doing with gold. Silver has $25 per ounce written all over it. Then, up from there....

April gold
http://futures.tradingcharts.com/chart/GD/48Gold weekly
http://futures.tradingcharts.com/chart/GD/W

Their losses are collosal, so what does it mean? They will soon panic, forced to cover, OR, it these shorts are backed by the US Government, as part of the Gold Cartel operation, and will just stay here. Should be easy for EVERYONE to understand this now, with the Morgan tanking Bear Stearns paper WITH NO RISK.

The dollar was all over the place, closing down again, off 24 to 71.66. The yen soared, closing at 99.22. The euro was up at least .43 (depending on what close yesterday you use) to 156.63.

The yield on the 10 yr T note sunk to 3.44%.

CARTEL CAPITULATION WATCH

Not only did The Gold Cartel prevent gold from closing above 1,000, they made sure the US stock market did not close down for week ... and kept the DOW from closing down 200, and around 100 off its lows. The DOW finished off 194 to 11,951 and the DOG lost 51 to 2212.

Here is the "HUH?" of the week:

"End of subprime write-downs in sight," S&P says

More on the CPI number:

U.S. Feb consumer prices flat on lower energy

WASHINGTON, March 14 (Reuters) - Cheaper energy and transportation prices helped keep overall consumer prices in check in February, the Labor Department said on Friday, a surprise after a period of run-ups that had heightened concern about inflation.

The department said its Consumer Price Index, the most widely used gauge of inflation, was flat last month after rising 0.4 percent in January. Even more significantly, core consumer prices that exclude food and energy items were unchanged in February after climbing 0.3 percent a month earlier.

The tame price performance was sharply in contrast to Wall Street economists' forecasts that overall prices would climb by 0.3 percent and that core prices would be up 0.2 percent. Federal Reserve policy-makers meet next Tuesday and are expected to cut interest rates again to try to boost a flagging economy.

The last time overall consumer prices were unchanged was in August 2007.

The CPI report showed energy prices fell 0.5 percent in February, a sharp reversal from January's 0.7 percent gain and the first decline since last August. Transportation prices were down 0.7 percent following a 0.5 percent December gain.

In the 12-month period through February, consumer prices rose 4 percent, a moderation from the 4.3 percent gain registered in January and the smallest year-over-year increase since last October, according to department officials.

-END-

09:55 Mar Univ. of Michigan Confidence reported 70.5 vs. consensus 69.5
Prior reading was 70.8.
* * * * *

03/14/2008 09:55 *DJ Reuters/Univ Michigan Mid-Mar Current Index 84.6; Feb 83.8

03/14/2008 09:55 *DJ Reuters/U Michigan 12-Mo Inflation Forecast +4.5%; Feb +3.6%

US consumer mood weakens, confirms recession-survey

NEW YORK, March 14 (Reuters) - U.S. consumer confidence dipped in early March to fresh multiyear lows, confirming the economy is in recession, a private survey showed on Friday.

Adding to the downbeat outlook was a jump in worries over inflation outlook due to surging fuel prices, according to the Reuters/University of Michigan Surveys of Consumers.

The surveys' index of confidence slipped to 70.5 in early March from the final February reading of 70.8. Economists
polled by Reuters had predicted a lower figure of 69.0.

"There was nearly unanimous agreement among consumers that the economy was now in recession," said Richard Curtin, director of the survey, in a statement.

Consumers' view of inflation one year ahead, at 4.5 percent, was up sharply from February's 3.6 percent. Other than for the month after Hurricane Katrina in the fall of 2005, the latest 1-year inflation reading was the highest since the 1990 recession, according to Curtin.

US faces severe recession-economist Feldstein

BOCA RATON, Florida, March 14 (Reuters) - The United States has entered a recession that could be "substantially more
severe" than recent ones, former National Bureau of Economic Research President Martin Feldstein said on Friday.

"The situation is very bad, the situation is getting worse, and the risks are that it could get very bad," Feldstein said in a speech at the Futures Industry Association meeting in Boca Raton, Florida.

NBER is the organization that determines when the business cycle enters recessions and recoveries.

TREASURIES ADD GAINS AFTER FORMER NBER ECONOMIST FELDSTEIN SAYS US IN POTENTIALLY SEVERE RECESSION

U.S. RATE FUTURES SHOW GROWING CHANCE OF 100 BPS FED RATE CUT NEXT WEEK

REUTERS TEN YEAR US TREASURY NOTE RISES OVER A FULL PT, 30-YR BOND UP OVER 2 PTS AS STOCKS TANK ON BEAR NEWS

REUTERS U.S. SWAP SPREADS TURN WIDER AS CREDIT JITTERS RETURN AFTER BEAR STEARNS FUNDING NEWS

FED SAYS WILL PROVIDE LIQUIDITY AS NECESSARY TO PROMOTE ORDERLY FUNCTIONING OF FINANCIAL SYSTEM - Reuters

21:34 Heard on the Street looks at the SEC's effort to soften the mark-to-market blow - WSJ
The Journal reports that SEC plans to tell companies as soon as next week that while they still largely have to apply mark-to-market accounting rules, they will be allowed to provide investors with a wider range of possible values for securities they hold in the text of their earnings reports. The move is intended to give investors more information about prices that have become difficult to determine given the paralysis in many areas of the credit market. The article notes that until now, a company risked running afoul of regulators if it valued a security at a figure other than the market price. According to the Journal, there is some concern that given that the SEC is expected to suggest that companies explain in detail how they arrive at the alternative values, they may present an overly optimistic view of the potential losses they are facing.
Reference Link (subscription required)
* * * * *

18:32 Majority of economists say US has slipped into recession - WSJ
The article notes that 71% of the 51 respondents in the latest Wall Street Journal economic-forecasting survey say the economy is now in a recession. The survey, which was conducted between 7-Mar and 11-Mar, also revealed that economists now expect nonfarm payrolls to grow by an average of 9K a month for the next year, down from 48,500 in the previous survey just over a month ago. In addition, 20 economists now expect payrolls to contract outright, while the average forecast for the unemployment rate by December was jacked up to 5.5% from 4.8%. Also of interest, 29 of the 55 respondents said they expect the economy to contract in Q1, and 25 expect such a pullback in Q2. On an even more concerning note, the respondents put the odds that a 2008 recession could be worse than both the 2001 and 1990-91 downturns at an average of 48%, up from 39% in the previous survey. Not to be outdone, the economists raised their average forecast for consumer-price increased to 3.5% by June, up from 2.7%.
Reference Link (subscription required)
* * * * *

More Bear stuff:

10:26 BSC Federal Reserve comments on Bear Stearns/JPMorgan (30.51 -26.49)
The Fed's statement reads as follows: "The Federal Reserve is monitoring market developments closely and will continue to provide liquidity as necessary to promote the orderly functioning of the financial system. The Board voted unanimously to approve the arrangement announced by JPMorgan Chase and Bear Stearns this morning."
* * * * *

10:37 BSC SEC issues statement regarding Bear Stearns (31.00 -26.00)
The SEC statement is as follows: "The Securities and Exchange Commission has been in close contact with the Department of the Treasury, the Federal Reserve, and the Federal Reserve Bank of New York during discussions concerning an agreement by J.P. Morgan Chase & Co. to provide a secured loan facility to The Bear Stearns Companies. We will continue to work closely together in a way that contributes to orderly and liquid markets."
* * * * *

A Vicious Circle Ending In A Systemic Financial Meltdown By Mike Whitney

Click here: http://www.informationclearinghouse.info/article19531.htm

***

VENEZUELA IS REQUIRING EURO PAYMENTS FOR SOME CONTRACTS FOR CRUDE, PRODUCTS AND SPOT SALES - OILMIN

VENEZUELA HAS NO TARGET FOR AMOUNT OF CRUDE TO BE PAID IN EUROS -OIL MINISTER

More misery for the US consumer:

US heating oil dealers seek help amid cash crunch

NEW YORK, March 14 (Reuters) - U.S. heating oil distributors said Friday they were seeking federal help to ease a cash crunch this winter caused by delayed payments from low-income customers and sky-high prices for their own fuel inventory.

The squeeze mirrors problems faced by dealers in 2004, when a run up in energy prices pushed the nation's leading heating oil distributor to the brink of bankruptcy.

"It's brutal," said Shane Sweet, CEO of the New England Fuel Institute (NEFI), which represents about 1,000 distributors and retailers in the northeastern states. He said customers occasionally ring their fuel dealers in tears over their heating bills.

"I was talking with heating oil dealers and gasoline station convenience store operators, and in terms of cost of fuel and the impact that it has to their operations, it's the worst year that most people can ever remember," Sweet said.

The average residential heating oil price paid by Americans surged to a record $3.68 per gallon this week, up more than 40 percent from a year ago, alongside a surge in the price of crude oil to all-time highs, according to government data…

-END-

Hi Bill!

My trades all closed (at a profit) this morning before I was even out of bed, so I was enjoying a nice breakfast and coffee, with CNBC on this morning. Bush was speaking, and he made one of his usual stupid comments. A question was asked that actually mentioned gold and inflation, and CNBC could not censor that one... Bush then launched into a rambling reply that did not anwer the question, but was filled with mom and apple pie, everything is fine, hugg your dog, etc... But his most classic comment was in regards to ethanol, and how its going to help the country address the energy issue (?!!!!), and then how it represented a small inconvenience for the hog farmers. Am I completely losing my mind? Corn prices rocketing to all time highs and throwing a giant inflationary money wrench into the food supply and its a minor inconvenience?

The CNBC panel then went on with their usual lame commentary, but for once they actually acknowledged that the Fed action today to help out Bear Sterans was a BAILOUT. They used the 'B' word! Things may be improving after all, if even the talking heads on TV begin to understand we have a problem. Could they have noticed the 800-pound gorilla in the room?

Now what continues to bother me is the cheerleader mentality of that network. No matter how bad things get, they look for something to dress it up. Today they noted that the market depth showed 500 decliners, but there were 35 gainers. They went on to focus on how nice it was for some stocks to be gaining today instead of commenting on the abyssmal declines going on everyone else. That is like seeing your house burning to the ground, and then pointing out that the little shrub you planted in the front yard was untouched...

We continue to live in an age of propaganda and spin, and how people have put their own critical analysis capability on hold, prefering instead to hear the soothing blather of talking heads that are lying whenever they open their mouths.

And one final comment: yet another illustration of a corrupt market today, as we face the real prospect of a huge financial powerhouse imploding, and the dollar continues to dive to new lows... Gold was driven sharply lower around midday, silver followed, copper eased down, and the DOW started climbing, all about the same time. Add in a minor bounce in the buck. Coincidence and normal trading behaviour? Only if you work for CNBC.

Until the market participants acknowledge that the system is in serious trouble, and begin to focus on the reality instead of the fantasy, then we are not going to find a constructive way to deal with all of this. I do not have a great degree of confidence that there will be concrete answers presented and therefore things are going to get worse. So I am buying gold and silver and shorting the hell out of this market. I will be waiting for the rally after a half point interest rate cut on Tuesday, and then pile on new shorts right after.
cheers!
Mexico Mike

TOCOM

Ladies and Gentlemen:
On March 13^th the seven large gold shorts increased their net short position by just 118 contracts to 86,550 contracts.

STDJ increased their net short position by 845 contracts to 35,713 contracts.

http://www.tocom.or.jp/souba/gold/torikumi.htmlIn silver they reduced their net short position by 188.50 contracts to 772.50 contracts (old 60kg deliverable equivalent).

http://www.tocom.or.jp/souba/silver/torikumi.htmlHave a nice weekend,
Scott

Bill,
In the March 13 session on the TOCOM Goldman Sachs stopped treading water…well, not really! They increased their short position by 38 contracts and bought 5 long contracts to bring their long position to 404 contracts and their net short position to 14,329 contracts. If Goldman Sachs reads this column I would like to advise them that the music will stop pretty soon and anyone holding 14,329 gold contracts net short will not be amongst the winners! They can take solace in good maritime tradition that the captain always goes down with the ship.
Cheers
Adrian

Ethiopia Officials Still Investigating Fake Gold In National Bank's Vaults

The mystery of gold gilded steel bars and Ethiopia's national bank is still unraveling. Bank officials were ordered by parliament's budget and finance committee to inspect all the gold in the national bank's vaults after two separate deposits of gold bars were found to be fake. The initial problem was uncovered when the bank sent a consignment of 300 kilograms, 10,582.1886 ounces of presumably 999.9 percent pure gold to South Africa. That nation tested them and found them to be gold gilded steel counterfeits. The price of gold reached a record high of $1,000 per ounce on Thursday.

-END-

The Cafe Sentiment Indicator has picked up, but is nothing to write home about ... imagine that at $1,000 gold. Instead, this is where the mindset is here;

Click here: Pawnshops see rush of gold sellers - MSN Money

Bill,
Like you I am not overly happy with the $1,000 gold milestone being achieved. It would be at least twice that amount without daily interference by the cartel. Today the Dow should be down 1,000 points, and gold should be up $50-$100. Yet the script must be enforced.

Watching the markets is much like watching a World Wrestling Entertainment match. There is a real arena with real fans in the seats, and the competitors are very athletic and act combatant. There is a referee officiating the event. There is a real announcer calling play-by-play of what he seemingly is watching. The wrestlers go at it, and apparently suffer bone-jarring hits and body slams that would make mere mortal men scream like a girl. There is a winner and a loser, scores are kept, and rankings assigned to the wrestlers. It all looks just like any professional sporting event. Except it isn't, it's totally scripted and fake.

The "good guy" wrestler always gets pounded at first, then after all is hopeless and he is down for the count he miraculously gets up to defeat his "evil" opponent. Blows to the head are accompanied by foot stomps for acoustical embellishment. The wrestlers soar from the ropes landing all 300 pounds on an opponent, yet neither ever gets seriously hurt. If a wrestler is in trouble he enlists another "buddy" for an instant tag team advantage. The referees tolerate ANYTHING; there are no illegal moves. Even picking up metal chairs for weapons is just smart "rasslin". The winner then crows about his superiority and some good looking girls comes out to support him.

In the cabal WWE script the "good guy" is the cartel, and the "bad guy" is gold. The refs are the CFTC and SEC. The ringside announcer is Jon Nadler, with color commentary by Reuters or Bloomberg. The Dow is always on the ropes early, then stages a miracle comeback. Gold always has bullish beginnings, then falls to the mat. The tag team buddy that clubs gold with a chair is the IMF rumoring to sell gold. The pretty girls are CNBC supporting the fraud witnessed. The statistics kept are phony and based on fraudulent data. Like the WWE the cabal wins no matter which wrestler is in the ring. And also like the WWE everybody involved is either directly or indirectly in the employ of banking masters.

The only way it fails is if enough fans wise up a predetermined outcome and quit buying tickets. GATA knows the financial markets are illegally rigged and crimes are being committed. The action lately looks more fake by the minute. The cartel can't even give an ILLUSION of a competition. The ticket buyers are canceling and leaving for a REAL sporting event- gold. Tickets to the cabal show are plummetting.

I swear Hank Paulson even resembles Vince McMahon. They are kindred spirits.
James Mc

The XAU closed up .99 to 206.37. The HUI continued its wining, break out ways, rising 7.35 to 514.89.

What a day! Then again, this is becoming common.

Veteran Cafe members have been warned by the GATA camp of a coming derivatives blow up re the US financial market system and of the growing counterparty risk problems. What surfaced this morning for Bear Stearns may only be the tip of the iceberg of what is to come ...and most likely is.

Scary? You bet. There are trillions in derivatives on the books of JP Morgan Chase alone. Confidence is quickly eroding as far as the US financial market system is concerned. This erosion of confidence is likely to deteriorate in the weeks ahead. This erosion could very well set off the derivatives neutron bomb in the US financial markets, so long talked about here. Yes, THE UNTHINKABLE ... after all IMO, the Titanic has ALREADY hit the iceberg.

As conditions in the US financial markets continue to deteriorate, gold and silver will go through the roof. The shares will go ballistic as the investors all over the world pour into our tiny market-cap sector.

FORTUNES WILL BE MADE VERY QUICKLY

More on the same:

Who slept with the Bear?

To all; well folks, now we have to wonder who slept with the Bear? Bear Stearns that is. Bear announced funding and liquidity problems this morning. Now, the witch hunt will begin, probably Monday morning on the market opening. Bear is a huge investment bank. They have had their paws in almost all of the exotic finance markets. Players will immediately begin looking for counterparties with Bear.

This is an important leap in the spread of the credit crunch. We don't wonder about which asset classes have been affected/infected anymore, since virtually all credit classes have caught the virus. We now move onto the company specific stage. We will hear truisms, rumors, etc. regarding which companies have or have not, exposure to Bear Stearns. This stage will move much more rapidly than the "asset infection" stage. Rumors and emotions will now play a bigger roll than ever. At this point, who is kidding who? There is virtually no "paper place" to park money and go to sleep at night, except short term Treasuries. Even then you have to worry about the $ declining and the day this whole trainwreck ends up in the Treasuries' lap.

Now that we FINALLY have $1,000 Gold, I have a question for everyone. Which would you rather have right now, knowing what you know? $1,000, or an ounce of Gold? Which one would you sleep better at night with? I know my answer! Bear Stearns never slept with Gold before. For that matter Bear may have even sold Gold short, who knows? Since Gold has no counterparty risk, I feel very comfortable going to sleep at night with Gold assets. During this "counterparty witch hunt" many more will discover Gold to be the ultimate island of isolation with no counterparties. Gold is no one else's promise to pay. It has value because it "is", not because a bankrupt government, or institution says it has value.

The window to prepare your finances etc. is closing quickly. When it shuts tight, everyone will initially be shocked, then very quickly the thoughts of " Oh, how obvious was this all" will be prevalent. It has happened before, and unfortunately it is all too obvious now. Try to enjoy the weekend, Regards, Bill H.

On that upbeat note as far as gold's future is concerned, I would like to rehash my recent comments about coming to GATA's Washington conference in a month (April 17 to 19).

The mood and psyche among the investing public will soon turn to FEAR. Many are going to panic a bit and will want to know what to do? Can they turn to the Planet Wall Street crowd which gives them propaganda drivel? Can they trust the hedge fund firms like Carlyle, the honest men at Thornburg, whose CEO says all is well, then they go bust? Can they trust a Planet Wall Street lexicon like Bear Stearns? I think not.

Based on our track record of the last 7 years, if I may, I suggest they can trust the GATA camp, who has told it like it is for many years, even if the US mainstream press will not even acknowledge we exist. I challenge anyone on Planet Wall Street to come up with a better forecasting record on gold ... what the price would do and why over the last 7 years. I challenge anyone outside our camp to more fully explain, and more articulately, what the US financial markets are all about these days and WHY we are facing the mess we are in now.

MANY of your friends are going to be talking to themselves about what to do, financially speaking. You might not be able to attend our coming historic conference, but they might. Therefore, please ask them to view what GATA had to say at the end of January in our full-page color ad.

We talked about the gold price soaring and used the words "disaster" and "catastrophe" as to the future state of US market affairs, as a result of the overreaching market management by the PPT, Gold Cartel, etc.

I urge you to read what we had to say well before recent events unfolded. Ask them to GO THERE. Why? Because once they know what the GATA camp knows, they don't need to be fearful. Investors in gold, silver and the shares will make fortunes in the months and years ahead. Turn their fear into GREED ... to be positive about their financial future, not to be fretting about the disappearing US stock and real estate markets.

Have them take 24 minutes and watch what the speakers had to say in our www.GoldRush.21.com video. Many of those same speakers will be at our Washington conference. There is nothing like coming in contact with people to build confidence in an individual's investment process.

Those on board these trains are going to be very happy campers at the end of this year.

GATA BE IN IT TO WIN IT!

Appendix

A very hearty congrats to you and your team,..

A major milestone this week has been reached,.. That’s not to say we won’t see 3 digits again, infact I’d be v. surprised if we don’t,.. But the dam has been breached and I think the writing is very much on the wall now,..

It’s going to be even more interesting to see how things develop going forward,.. I think, like the wheat markets and other areas, we are going to see increasingly larger trading days of $30-50 becoming common,.. Silver perhaps $1-3 daily variables,..

Have a well deserved stupendous weekend,..

Very Best,..
Rich (Live from ‘The Scarborough Bullion Desk’)

Hi Bill,
I have just e-mailed you tonight's main radio news which leads with the gold story - Maybe you can enjoy it after finishing your commentary.

Here is the online story from the BBC, but also it was the lead article on the TV news tonight - I was in the gym sweating away on the cross-trainer and it was great - there were lots of pictures of gold bars, Gordon Brown being criticised for selling our gold and a very smart lady from the WGC wearing big gold earrings and, of course, talking about jewellery demand - I suppose it was too much to expect this not to happen.

I wondered if I was dreaming to see such coverage.

However, my main reason for writing is to thank you for all of your hard work in reporting the massive cover up and manipulation. You deserve every plaudit going and I think it is safe to say the wildest moments are still to come in this market.

Have a great evening,
Bob
http://news.bbc.co.uk/1/hi/business/7294040.stmBill,
You're not alone in your assessment of the mainstream financial medial. If you have time to take a quick look at this article it's worth at least a glance. There's also a good (scathing) video clip of Jim Crammer in conversation with Rick Santelli.
Thanks for your work.
-Mark
http://www.jugglingdynamite.com/blog/_archives/2008/1/25/3485996.html=

-- Posted Sunday, 16 March 2008 | Digg This Article