Colonel_Reb
Hall of Famer
Considering the ever decreasing value of the US fiat $, you might think about investing in silver.
I found a pretty interesting article about recent trends and developments that might be of interest to some here.
http://news.silverseek.com/SilverSeek/1241716773.php
<center>Silver Leads Gold as Dollar Teeters</font></font>
By: Jim Willie CB</font></center>
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-- Posted 7 May, 2009 | Digg This Article
| <a href="http://forums.silverseek.com/showthread.php?threadid=6953" target="_self" target="_blank">Discuss This Article - Comments:
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</font>In
a bizarre exercise intended to defend legitimacy, the bankers are
engaged in a complex game of propaganda. They pressured the USCongress
to relieve Wall Street from the chains of FASB Rule #157, and the
senators & representatives obeyed their paying masters. The result
has been a baseless stock rally led by insolvent banks that have lied
desperately about their capital and earnings. The announced audited Citigroup profit of $1.6 billion in the first quarter was actually a deep $2.5 billion loss, provided the $4.1 billion in gimmickry was removed.
The gimmicks pertained to toxic assets valued at fictitious model,
shell games on loss reserves management, and illicit debt markdowns on
the balance sheet. Thanks to Martin Weiss for the autopsy of Citigroup,
the biggest zombie strutting in the global financial sector. Actually,
that ignominy is a close race with Bank of America. The end result is
the global financial markets are losing faith in the <st1:country-region w:st="on">US</st1:country-region>$-based system, since the <st1:country-region w:st="on"><st1
lace w:st="on">US</st1lace></st1:country-region>
is regressing in backward steps rather than working toward remedy. In
my view, attempts at remedy would reveal a failed system that cannot be
revived, broken irreparably since last autumn. The contradiction
between the <st1:country-region w:st="on"><st1lace w:st="on">US</st1lace></st1:country-region>
bank fraud kings and the Intl Monetary Fund projections of additional
bank losses is another big billboard message, again ignored. Maybe
somebody should reveal to US bankers and their investors what is
happening in the mortgage market, with losses to come on a broad basis.
Future bank losses will continue in a torrent!!!</font></span></font></span>The
President has uttered a total absurdity, that the USGovt will pay as
you go, despite the fact that the PayGo has been violated if not
trampled in the last few years, and foreign creditors have stepped back
from USTreasury Bond sales. It should be called PrintGo, since the
monetization card has already been put on the table. A very dangerous precedent has been initiated. Obama has led the charge against senior bondholders of corporate debt.
Their right to be first in line during any bankruptcy process has been
discarded carelessly, a legal contract violation, with certain
unintended consequences in the corporate bond market issuance arena.
See the General Motors and Chrysler dictated conversion to stock, which
favors the Wall Street firms in possession of vast amounts of unsecured
debt. That puts the screws to hedge funds that hold vast amounts of
secured debt (deserving senior positions). This war against hedge funds
is more a defense of a syndicate in charge, and a gross betrayal of
securities rules. Once again, the financial crime syndicate that has
hijacked the USDept Treasury writes the policies that favor themselves.
Foreigners are watching; confidence in the <st1:country-region w:st="on"><st1lace w:st="on">US</st1lace></st1:country-region>$-based credit markets will suffer blows. The impact on the USDollar and gold, if not the USTreasurys, will be vivid.</font></span></font></span>The bank sector Stress Tests clearly are a sham designed to restore confidence after accounting rules were eliminated. USFed
Chairman Bernanke continues to make clownish comments about the
problems centering upon bank liquidity, when solvency remains their
plague issue, and will continue to be the main flaw. What a lousy
economist and a lapdog banker! He has not been correct on a single
issue or forecast or analysis since taking the helm at the US Federal
Reserve, yet he is given high praise. The Johann Gutenberg Award might
be appropriate for printing press accomplishments, but no more than
that! He claims the Stress Tests were extraordinarily detailed, yet
they relied on ridiculously soft economic stress factors from months
ago. My stance is clear, that the Stress Tests will eventually be used
as weapons to force stronger regional banks to merge with dead ones
lodged on Wall Street, with the FDIC holding the legal hammer. The
cancer of <st1lace w:st="on">Lower Manhattan</st1lace> most assuredly will force its metastasis across the nation and into its banks. </font></span></font></span>Financial
market anchors and analysts debate whether the 30% stock rally
qualifies as the new bull market, as nutty green shoots are identified.
The supposed green shoots are nothing more than elaborate moss on exposed decaying roots of dead standing trees.
These are sprawling sequoias with hollow trunks and decayed roots.
Those sell-side optimists ignore that a 30% stock market rise after a
50% decline since October 2007 is a typical bear market correction. The
green shoots cannot possibly be new attempts at legitimate growth when
jobs are being destroyed on a massive scale, home foreclosures continue
to rage, home values continue to decline closer to 20% than 10%,
corporations are guiding lower on profits and investments, and the
states are cratering financially. Besides, the S&P500 Price
Earnings Ratios are at historic highs, not lows. Worse, the earnings
are mostly fictions. Votes are being registered in the gold &
silver markets, and in the USDollar and USTreasury Bond markets.</font></span></font></span><h4 style="margin: 0in 0in 0pt;">SILVER LEADS GOLD</font></span></h4>Silver
has made an initial move over the 14 level, to challenge the March
highs. The gold price has rebounded, but not enough to cause as much
enthusiasm. The reliable respected Adrian Douglas has spread the
word that both Goldman Sachs and JPMorgan Chase have been building
option call positions on both gold & silver futures contracts.
Normally, options are the contrary indicator of naïve money piling on,
after a segment of the game has concluded. Not so with option futures,
which is the province of insider trading. Both GSax and JPMorgan are
kings of insider trading, with full impunity, all for the greater good
(of private profits). The other inside story comes from overseas. The
Germans have demanded the return of all their gold bullion held by US
bankers in custodial accounts. The Arabs are accumulating gold,
platinum, and silver. The Chinese admitted their gold accumulation. The
Russians have not permitted any gold mining output to enter the markets
in three years. Precious metals are being looked upon very favorably as
the <st1:country-region w:st="on"><st1lace w:st="on">US</st1lace></st1:country-region>$-based financial structures continue to dissolve.</font></span></font></span>The
silver price is moving up the most rapidly, in lead fashion. The
reasons are many, but they include the fact that the shortage in silver
is far more acute. Both industrial demand results in depletion, and
investment demand is growing quickly. The six billion ounce stockpile
in silver once established by the USGovt has been long gone for at
least five years. The next stop for silver is 15, which should occur
easily, and then 18 in another easy leg up. The cyclicals are both
nicely aligned in a positive direction. Enrico Orlandini demonstrates
that the Point & Figure chart method indicates a 26 price target
for silver, although the method has a timeless element in its elegance.
Those investors who averaged their unleveraged silver positions since
last autumn will be greatly rewarded. Silver has always sauntered in
the shadow of gold, but it will sachet soon with a smirk and a wag.</font></span></font></span></v:stroke></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:ulas></vath><o:lock aspectratio="t" v:ext="edit"></o:lock></v:shape></span>
</font></span></font></span>One
can pore over a gold chart, compare it to a silver chart, resolve some
confusion, and unassuredly attempt to make some conclusions. The easier
analytic step is simply to observe the gold versus silver ratio chart.
One strange price factor is the lease rate. The one-month silver lease
rate is under 0.5%, but the one-month lease rate for gold is stable and
negative. So the criminals running the US gold treasure into the ground
(see ‘Deep Storage' gold on its accounting) are paying insiders to
borrow it, in order to dump it on the market. They simply do NOT have
the silver to give away. The ratio of gold to silver has finally favored silver again after three months of consolidating.
Notice the 200-day moving average that supported the ratio. Some give
little credence to technical chart support and resistance theories.
They matter less during times of serious dislocations, to be sure, but
they are evident even in the most obscure of ratios like this. Hedge
funds and Wall Street firms both employ complex trading strategies.
Their monitor and usage of the gold/silver ratio is definitely a tool.
Notice the absence of support in this ratio, down to the 52-53 level
again. The snap conclusion is that silver is bound to recover quickly
toward the 18-20 level, while gold makes its smaller move back to the
1000 level.</font></span></font></span></span>
</font></span></font></span><h4 style="margin: 0in 0in 0pt;">USDOLLAR READY TO DECLINE</font></span></h4>The
threat of a triple top breakdown has highlighted last week. Clearly the
84 defensive line has failed. Next the 83 support line will be
challenged. It is buttressed by the 200-day moving average. Some
analysts claim that the DX index can once more mount a rally, just like
off the December low, just like off the March low. Yet the more
powerful argument is that the triple top exhibits a profoundly clear
ROUNDED TOP pattern that could be jammed into a bearish Head &
Shoulder pattern. A breakdown in the neckline of such an H&S
pattern would indicate a move to 80 or below is assured. Gold will ride
that burst of wind with ease over the 1000 mark. Silver will double the
gain that gold enjoys.</font></span></font></span></span>
</font></span></font></span>A
better look at the USDollar breakdown in progress can be seen in the
five-day chart. The defense of the 83.7 support level is the primary
location of the battleground. It is trading at 83.75 at the moment of
this written sentence. The battle is on. The USDollar is delivering
a strong vote against the faulty green shoots claims motivated by
ill-advised analysis, vested interest, if not survival. The
USDollar is voting NO confidence to the sham bank sector claims of
viability, when they are zombies with hollow cores. The USDollar is
saying hard times are coming to the USEconomy, led by the manufacturing
(cars in particular). Industry is ALWAYS the most important part of any
economy, its fundamental value added sector, a chapter lost in the US
economic history teachings in compromised universities across America.
Wall Street hucksters need to read that chapter of economic history
during detention after class, or better yet in prison cells.</font></span></font></span></span>
</font></span></font></span><h4 style="margin: 0in 0in 0pt;">USTREASURY YIELDS BURST UPWARD</font></span></h4>Last
week, the USTreasury Note (UST) principal value was charted. It was
noted that the 3.0% level of resistance was giving way. It broke, and
it did so suddenly to the upside. The TNX measures the 10-year
USTreasury yield. It zoomed to 3.25% and has stabilized in the last few
days. The USTreasurys can act as a gigantic feeder system into gold.
Obviously, the bond loss and often the gain for stocks, but the gold
market is much smaller in magnitude. Many reasons can be offered for
why long-term rates are rising. Leave the litany of reasons for the May
Hat Trick Letter out next week. The overriding message is that the
entire gain from the mid-March announcement of USFed monetization of
$300 billion in USTreasury Bonds and $750 billion in USAgency Mortgage
Bonds has been lost. The rally seen in mid-March immediately
afterwards was based on the notion that the USFed and USGovt together
would provide a powerful bid on the USTreasurys. That is now gone, as
something bigger can be sniffed in the ill winds over Wall Street and
WashingtonDC. </font></span></font></span>The
triangle pattern has been broken. The indicated target for long-term
USTNote yield is 3.5% at least. However, the larger triangle has even
more potential lift in long-term yields. The larger triangle indicates
a powerful damaging move in long-term yields up to the 4.0% level,
where they were last autumn. That is a strong feeder channel for gold
& silver. The process is global, as the European Central Bank just
today announced a 25 basis point cut down to 1.0% in the official
interest rate. Cheap money, negative real rates, are a primary impetus
for gold, as currencies are almost uniformly damaged, debauched, and
this time probably destroyed.</font></span></font></span></span>
</font></span>
</td></tr>
</t></table>
Edited by: Colonel_Reb
I found a pretty interesting article about recent trends and developments that might be of interest to some here.
http://news.silverseek.com/SilverSeek/1241716773.php
<center>Silver Leads Gold as Dollar Teeters</font></font>
By: Jim Willie CB</font></center>
<t></t><table width="550" border="0" cellpadding="0" cellspacing="0">
<t><tr>
<td valign="top" width="100%" align="center">
</td>
</tr></t></table><t></t><table border="0" cellpadding="3" cellspacing="0">
<t><tr>
<td>
-- Posted 7 May, 2009 | Digg This Article
| <a href="http://forums.silverseek.com/showthread.php?threadid=6953" target="_self" target="_blank">Discuss This Article - Comments:< ="text/" src="http://forums.silverseek.com/coranto_external.php?threa did=6953">
< ="text/">
<!--
for (var i = 0; i < threads.length; i++){.write(threads['replycount']);}
//-->
0</a>
</font>
</font>In
a bizarre exercise intended to defend legitimacy, the bankers are
engaged in a complex game of propaganda. They pressured the USCongress
to relieve Wall Street from the chains of FASB Rule #157, and the
senators & representatives obeyed their paying masters. The result
has been a baseless stock rally led by insolvent banks that have lied
desperately about their capital and earnings. The announced audited Citigroup profit of $1.6 billion in the first quarter was actually a deep $2.5 billion loss, provided the $4.1 billion in gimmickry was removed.
The gimmicks pertained to toxic assets valued at fictitious model,
shell games on loss reserves management, and illicit debt markdowns on
the balance sheet. Thanks to Martin Weiss for the autopsy of Citigroup,
the biggest zombie strutting in the global financial sector. Actually,
that ignominy is a close race with Bank of America. The end result is
the global financial markets are losing faith in the <st1:country-region w:st="on">US</st1:country-region>$-based system, since the <st1:country-region w:st="on"><st1
lace w:st="on">US</st1lace></st1:country-region>is regressing in backward steps rather than working toward remedy. In
my view, attempts at remedy would reveal a failed system that cannot be
revived, broken irreparably since last autumn. The contradiction
between the <st1:country-region w:st="on"><st1
lace w:st="on">US</st1lace></st1:country-region>bank fraud kings and the Intl Monetary Fund projections of additional
bank losses is another big billboard message, again ignored. Maybe
somebody should reveal to US bankers and their investors what is
happening in the mortgage market, with losses to come on a broad basis.
Future bank losses will continue in a torrent!!!</font></span></font></span>The
President has uttered a total absurdity, that the USGovt will pay as
you go, despite the fact that the PayGo has been violated if not
trampled in the last few years, and foreign creditors have stepped back
from USTreasury Bond sales. It should be called PrintGo, since the
monetization card has already been put on the table. A very dangerous precedent has been initiated. Obama has led the charge against senior bondholders of corporate debt.
Their right to be first in line during any bankruptcy process has been
discarded carelessly, a legal contract violation, with certain
unintended consequences in the corporate bond market issuance arena.
See the General Motors and Chrysler dictated conversion to stock, which
favors the Wall Street firms in possession of vast amounts of unsecured
debt. That puts the screws to hedge funds that hold vast amounts of
secured debt (deserving senior positions). This war against hedge funds
is more a defense of a syndicate in charge, and a gross betrayal of
securities rules. Once again, the financial crime syndicate that has
hijacked the USDept Treasury writes the policies that favor themselves.
Foreigners are watching; confidence in the <st1:country-region w:st="on"><st1
lace w:st="on">US</st1lace></st1:country-region>$-based credit markets will suffer blows. The impact on the USDollar and gold, if not the USTreasurys, will be vivid.</font></span></font></span>The bank sector Stress Tests clearly are a sham designed to restore confidence after accounting rules were eliminated. USFedChairman Bernanke continues to make clownish comments about the
problems centering upon bank liquidity, when solvency remains their
plague issue, and will continue to be the main flaw. What a lousy
economist and a lapdog banker! He has not been correct on a single
issue or forecast or analysis since taking the helm at the US Federal
Reserve, yet he is given high praise. The Johann Gutenberg Award might
be appropriate for printing press accomplishments, but no more than
that! He claims the Stress Tests were extraordinarily detailed, yet
they relied on ridiculously soft economic stress factors from months
ago. My stance is clear, that the Stress Tests will eventually be used
as weapons to force stronger regional banks to merge with dead ones
lodged on Wall Street, with the FDIC holding the legal hammer. The
cancer of <st1
lace w:st="on">Lower Manhattan</st1lace> most assuredly will force its metastasis across the nation and into its banks. </font></span></font></span>Financialmarket anchors and analysts debate whether the 30% stock rally
qualifies as the new bull market, as nutty green shoots are identified.
The supposed green shoots are nothing more than elaborate moss on exposed decaying roots of dead standing trees.
These are sprawling sequoias with hollow trunks and decayed roots.
Those sell-side optimists ignore that a 30% stock market rise after a
50% decline since October 2007 is a typical bear market correction. The
green shoots cannot possibly be new attempts at legitimate growth when
jobs are being destroyed on a massive scale, home foreclosures continue
to rage, home values continue to decline closer to 20% than 10%,
corporations are guiding lower on profits and investments, and the
states are cratering financially. Besides, the S&P500 Price
Earnings Ratios are at historic highs, not lows. Worse, the earnings
are mostly fictions. Votes are being registered in the gold &
silver markets, and in the USDollar and USTreasury Bond markets.</font></span></font></span><h4 style="margin: 0in 0in 0pt;">SILVER LEADS GOLD</font></span></h4>Silver
has made an initial move over the 14 level, to challenge the March
highs. The gold price has rebounded, but not enough to cause as much
enthusiasm. The reliable respected Adrian Douglas has spread the
word that both Goldman Sachs and JPMorgan Chase have been building
option call positions on both gold & silver futures contracts.
Normally, options are the contrary indicator of naïve money piling on,
after a segment of the game has concluded. Not so with option futures,
which is the province of insider trading. Both GSax and JPMorgan are
kings of insider trading, with full impunity, all for the greater good
(of private profits). The other inside story comes from overseas. The
Germans have demanded the return of all their gold bullion held by US
bankers in custodial accounts. The Arabs are accumulating gold,
platinum, and silver. The Chinese admitted their gold accumulation. The
Russians have not permitted any gold mining output to enter the markets
in three years. Precious metals are being looked upon very favorably as
the <st1:country-region w:st="on"><st1
lace w:st="on">US</st1lace></st1:country-region>$-based financial structures continue to dissolve.</font></span></font></span>Thesilver price is moving up the most rapidly, in lead fashion. The
reasons are many, but they include the fact that the shortage in silver
is far more acute. Both industrial demand results in depletion, and
investment demand is growing quickly. The six billion ounce stockpile
in silver once established by the USGovt has been long gone for at
least five years. The next stop for silver is 15, which should occur
easily, and then 18 in another easy leg up. The cyclicals are both
nicely aligned in a positive direction. Enrico Orlandini demonstrates
that the Point & Figure chart method indicates a 26 price target
for silver, although the method has a timeless element in its elegance.
Those investors who averaged their unleveraged silver positions since
last autumn will be greatly rewarded. Silver has always sauntered in
the shadow of gold, but it will sachet soon with a smirk and a wag.</font></span></font></span></v:stroke></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:ulas></v
ath><o:lock aspectratio="t" v:ext="edit"></o:lock></v:shape></span>
can pore over a gold chart, compare it to a silver chart, resolve some
confusion, and unassuredly attempt to make some conclusions. The easier
analytic step is simply to observe the gold versus silver ratio chart.
One strange price factor is the lease rate. The one-month silver lease
rate is under 0.5%, but the one-month lease rate for gold is stable and
negative. So the criminals running the US gold treasure into the ground
(see ‘Deep Storage' gold on its accounting) are paying insiders to
borrow it, in order to dump it on the market. They simply do NOT have
the silver to give away. The ratio of gold to silver has finally favored silver again after three months of consolidating.
Notice the 200-day moving average that supported the ratio. Some give
little credence to technical chart support and resistance theories.
They matter less during times of serious dislocations, to be sure, but
they are evident even in the most obscure of ratios like this. Hedge
funds and Wall Street firms both employ complex trading strategies.
Their monitor and usage of the gold/silver ratio is definitely a tool.
Notice the absence of support in this ratio, down to the 52-53 level
again. The snap conclusion is that silver is bound to recover quickly
toward the 18-20 level, while gold makes its smaller move back to the
1000 level.</font></span></font></span></span>
threat of a triple top breakdown has highlighted last week. Clearly the
84 defensive line has failed. Next the 83 support line will be
challenged. It is buttressed by the 200-day moving average. Some
analysts claim that the DX index can once more mount a rally, just like
off the December low, just like off the March low. Yet the more
powerful argument is that the triple top exhibits a profoundly clear
ROUNDED TOP pattern that could be jammed into a bearish Head &
Shoulder pattern. A breakdown in the neckline of such an H&S
pattern would indicate a move to 80 or below is assured. Gold will ride
that burst of wind with ease over the 1000 mark. Silver will double the
gain that gold enjoys.</font></span></font></span></span>
better look at the USDollar breakdown in progress can be seen in the
five-day chart. The defense of the 83.7 support level is the primary
location of the battleground. It is trading at 83.75 at the moment of
this written sentence. The battle is on. The USDollar is delivering
a strong vote against the faulty green shoots claims motivated by
ill-advised analysis, vested interest, if not survival. The
USDollar is voting NO confidence to the sham bank sector claims of
viability, when they are zombies with hollow cores. The USDollar is
saying hard times are coming to the USEconomy, led by the manufacturing
(cars in particular). Industry is ALWAYS the most important part of any
economy, its fundamental value added sector, a chapter lost in the US
economic history teachings in compromised universities across America.
Wall Street hucksters need to read that chapter of economic history
during detention after class, or better yet in prison cells.</font></span></font></span></span>
week, the USTreasury Note (UST) principal value was charted. It was
noted that the 3.0% level of resistance was giving way. It broke, and
it did so suddenly to the upside. The TNX measures the 10-year
USTreasury yield. It zoomed to 3.25% and has stabilized in the last few
days. The USTreasurys can act as a gigantic feeder system into gold.
Obviously, the bond loss and often the gain for stocks, but the gold
market is much smaller in magnitude. Many reasons can be offered for
why long-term rates are rising. Leave the litany of reasons for the May
Hat Trick Letter out next week. The overriding message is that the
entire gain from the mid-March announcement of USFed monetization of
$300 billion in USTreasury Bonds and $750 billion in USAgency Mortgage
Bonds has been lost. The rally seen in mid-March immediately
afterwards was based on the notion that the USFed and USGovt together
would provide a powerful bid on the USTreasurys. That is now gone, as
something bigger can be sniffed in the ill winds over Wall Street and
WashingtonDC. </font></span></font></span>The
triangle pattern has been broken. The indicated target for long-term
USTNote yield is 3.5% at least. However, the larger triangle has even
more potential lift in long-term yields. The larger triangle indicates
a powerful damaging move in long-term yields up to the 4.0% level,
where they were last autumn. That is a strong feeder channel for gold
& silver. The process is global, as the European Central Bank just
today announced a 25 basis point cut down to 1.0% in the official
interest rate. Cheap money, negative real rates, are a primary impetus
for gold, as currencies are almost uniformly damaged, debauched, and
this time probably destroyed.</font></span></font></span></span>
</td></tr>
</t></table>
Edited by: Colonel_Reb
