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silverheartbone
10th December 2010, 12:00
About Sums It Up
Say, here's a nice reader-contributed email that sums this week up nicely, in an email sent by this reader to his friends:

Some things in the news this week are very eye catching, so I thought I might point them out if you missed them.

It started on Wednesday, December 8, between approximately 6 and 11 AM there was a parabolic drop in the price of gold of about $30. That was a shocker to the gold investment crowd as there was no underlying readily apparent reason for it. Silver dropped almost $3 at the same time frame. That was very odd because bonds and currencies were both dropping in value at the same time, and stocks weren't going up. How could all the major investment avenues be flat or sharply down trending at the same time? Where was the money going?

Looking back a bit, Tuesday and Wednesday both saw major dumping of US Treasuries by investors. When T-bills are being dumped the interest rate offered for them goes up, which then drives up interest rates derived from the bond market - including the 30 year mortgage rate. The 30 year mortgage rate shot up half a point in a few hours on Wednesday morning. There were other signs of bond market trouble on Wednesday and Thursday as well, such as Build America Bonds jumped to an 11 month high interest rate in minutes (more dumping) and Germany had their fourth failed bond auction in a row - being forced withdraw an offer of $20 Billion Euros of bonds because there were no buyers.

For years now the "doomsayers", in the financial alternative press have been predicting that the next and perhaps final great crash of the world markets will be a sovereign debt crash and would first appear as open dumping of government debt, like T-Bills, etc. Well, last night the word hit the rumor mills that the Fed was terrified by the initial dumping of bonds across the globe on Wednesday, so they pulled out all the stops and used every resource they have to drive down all commodity prices in the hope of cutting off the bond rout. It worked, for now, but the surprising part is that they were unable to drive the physical metals down further. Both silver and gold hit support levels and would not fall further. Why? Because the Chinese are calling their bluff. The Chinese are buying and taking delivery of gold and silver in a big way right now through third party agents. They are laughing all the way to their bullion vaults as they cart off the last physical reserves the Fed can get hold of. In the words of one writer out of London yesterday afternoon, they consider the Fed to be like a bunch of cartoon characters - dumb and comical as all heck - and they are taking full advantage of the situation.

The Fed's response was that they had their mouth pieces out late yesterday announcing the "shocking", revelation in the financial press that the Chinese have been huge gold buyers for the last year - secretly dumping their paper dollar reserves for gold. This is hardly a revelation to insiders, but it is news to the mainstream media. Why is the Fed announcing this? Because they are loosing the battle to suppress the prices of physical metals. There is shortly going to be a market forced big pop up in the price of both gold and silver as the Fed looses control. The Fed is setting the stage to blame the whole thing on Chinese intervention in order to try to hide the fact that large investors across the globe continue to dump government bonds and move in to commodities even as I write this.

The whole world financial system is starting to creak and groan, snap and crack. We are getting close to the next great crash. Buy some physical metals with your soon to be worthless dollars while you can. Price is a real bargain for gold and silver right now. DO NOT invest in paper contracts for gold or silver. Buy and take delivery of the actual metals.

I oughta hire this guy so I can get a day off once in a while. Maybe over Christmas.

As seen in todays blog at http://urbansurvival.com/week.htm

Sell SLV, crush JP Morgan.

skijake
10th December 2010, 12:17
Excellent find.
Smart Cat!

silverheartbone
10th December 2010, 12:18
People I believe the music has just stopped.

http://i2.squidoocdn.com/resize/squidoo_images/590/draft_lens1941462module37305162photo_1243915421Sil verStreak.jpg

See how the hero prevents a roger from harming lady liberty?

ALL ABOARD!

slowsilver23
10th December 2010, 16:55
Wow. Very informative to say the least.