Posts Tagged TARP
America, Please Wake Up! ~ Conclusion
Posted by Harley in The Economy on January 4, 2010
During the ABC network special on 22 December, President Obama was asked if he and his family would give up their current health care program and join his new health care reform program that the rest of us would be forced to be on. Obama ignored the question. A number of senators have been asked the same question and the only response was they’d think about it. Yet on 23 December, it was announced that the “Kennedy Health Care Bill” was written into the new health care reform ensuring that congress would be 100% exempt!
Whatever happened to the 28th amendment of our Constitution which says “Congress shall make no law that applies to the citizens of the United States that does not apply equally to the Senators or Representatives, and Congress shall make no law that applies to the Senators or Representatives that does not apply equally to the citizens of the United States.”
So, this great government health care “reform” is good for us lowly citizens while the Washington elitists keep their gold plated health plan that none of us can match! This is the height of all arrogance and hypocrisy as Obama and Congress ram this idiotic health care bill and higher taxes down our throats. I can only accept universal health care if it extends to everyone! Adding insult to injury, you watch, all federal workers will most likely be exempt from this monstrosity as well thereby further ridiculing and alienating the American “slave”. We must stop this debacle as soon as possible!
Also, have you noticed the buried sections (1109 & 1604) in the Obama administration’s mammoth Wall Street “reform” bill? In essence, these provisions will let the executive branch enact even bigger, more unregulated bailouts than ever with no oversight or executive compensation constraints, but only to the behemoths of Wall Street (who make the biggest campaign contributions). If this isn’t bad enough, there would be no limit to the Secretary of Treasury’s check-writing authority (TARP limited him to 2 years and $700B). My suspicious mind tells me that this is in preparation for the eventual fallout of over $600T of bad derivatives that will hit Wall Street. Talk about socialism?
If you know your American history, the above should not surprise you. The Federal Reserve System created in 1913 a national cartel dominated by the largest banks (that now include the behemoths of Wall Street). The primary objective of that cartel was to involve the federal government as an agent for shifting the inevitable losses from the owners of those banks to the taxpayers and that is exactly what is happening today and will continue if that “Wall Street Reform” bill passes. The reason for this is because government regulations are designed and created by the very businesses that are being regulated. That’s why all the big multi-national corporations never suffer and every adverse financial consequence is shifted to the free enterprise system where small business creates at minimum 7 out of every 10 jobs.
Let me tell you where this runaway push to socialism will get us – a “national” Detroit! For 50 years, Detroit has been the leftist socialists’ model of policy. Overrun by leftist mayors for 50 years who cater to the UAW and Teachers Union has produced unemployment of 20%, an average home price of $5700, and high school graduates representing only 25% of their class in spite of Detroit spending supposedly $11000 per student when, in fact, the money stays at the top bureaucratic levels thanks to the Teachers Union. This entire entitlement mentality has produced a better chance of a high schooled kid going to prison than graduating. The city has literally been brought to their knees by socialistic government policies, unions, bailouts and entitlements. Do you want that for the rest of America?
Only one good thing will come out of this mess for those people who are financially well informed, who know how money operates and therefore know where and when to invest. The other Great Depression produced more millionaires than at any time in our history; this one will too! In fact, it will produce the greatest wealth transfer this country has ever seen (this has nothing to do with baby boomers dying off). In spite of the fact that most Americans suffer from a deplorable lack of practical financial education and knowledge because it is not taught in our schools including masters’ degrees in business and finance, I just hope you know how to grab your share.
Why A Financial Education Is Necessary Today
Posted by Harley in Financial Education on November 11, 2009
It’s very important to place the need for a financial education today in perspective so people understand and appreciate the conditions most of them, knowingly or unknowingly, are dealing with as they try to accumulate wealth in our financial system. Hopefully, the events of last year’s market crash and the ensuing bailouts have shown the public how the consumers are repeatedly screwed by the Wall Street, political and regulatory elites, better known as the 3 ring circus.
In truth, this 3 ring circus is only interested in their corrupted ability to manipulate the system to line their own pockets and give them more power. They could care less about the public they are supposed to serve.
Nothing illustrates this point more dramatically than our present worldwide financial debacle and recession caused by the 3 ring circus and yet they are the major recipients of the TARP bailout money, not us the taxpayer. In both directions, they’ve made billions & everyone else lost big time.
Look back in history, our country’s financial debacles have always been caused by the 3 ring circus but the public’s losses in 2008 were so huge – trillions of dollars – that this time, they destroyed the trust and integrity so vital to the financial service industry. There is no doubt that a hands-on practical financial education is necessary and a better way to insure against such massive losses in the future due to one amazing fact.
When you combine the constant corruption and self dealing of the 3 ring circus with most people’s deplorable lack of a practical hands on financial knowledge and education, it makes the public highly susceptible to the continual bad advice and poor performance of the big Wall Street firms and most financial planners (who are nothing more than glorified salespeople) with their hidden agendas, conflicts of interest, self-dealing and high fees designed to line their pockets and not yours. Only now are people finally realizing this and firing their financial advisors in droves while searching for a better alternative.
Well, a practical, hands-on financial education is certainly a better alternative and a cleaner, more cost effective way for the consumer to become money and investment smart. Nothing is comparable to this type of education as it instills the confidence and knowledge to take control of one’s finances thereby preventing the consumer from being taken advantage of by the Wall Street boys and most financial planners with their hidden agendas.
Such a financial education should provide its students a reliable source to receive the necessary financial education and knowledge, from the most elementary to the most sophisticated, which allows them to control their finances, get out of debt as quickly as possible, and become money and investment smart. This financial education should further allow a student to know how to constructively use experts in every area of financial planning from the legal, tax, business, asset protection and investment arenas. This should then be done totally free of the high fees, middlemen, conflicts of interest and self dealing so prevalent in the financial service industry today. A financial education student should be so armed to be able to determine that he or she is in fact going direct for any one of these services.
Most investors have a “fellow the herd” investment mentality and have been perfectly content depending naively upon Wall Street to be responsive to their needs. Even many multi-millionaires have been guilty of the same mentality but are now actively seeking advanced financial education and investment avenues so they can be first in strategic investment opportunities. On the other hand, many less well off individuals drowning in debt are seeking the necessary financial education to help them be debt free in less than 15 years, including their mortgage. Therefore, these needs must be addressed by any well thought out financial education curriculum. Heaven knows the type of financial education curriculum this article has been addressing is long overdue.
Financial Confidence Ebbing for the General Population
Posted by Harley in Financial Education on October 26, 2009
Financial Confidence Ebbing for the General Population – That AARP survey called “A Closer Look” I’ve mentioned in the last two blog posts really only concerned itself with those ages 45-64. The truth is that the financial confidence of the general population has really been knocked on their butt. The fact is the Wall Street, political, and regulatory elites have really destroyed the trust and integrity so vital to the financial service industry. Yet not one of them has gone to jail and instead have been the major recipients of the TARP money (our money). This corruption never stops. If the general population is ever going to get their financial confidence back, they better become investment and money smart and get the financial education required to take control of their own finances. If they can obtain the right financial education, they will be able to take advantage of this financial debacle and recession that is being prolonged (just like the 30’s) by foolish government stimulus programs. Remember, more millionaires were created in the Great Depression than at any other time in the history of the United States. And that same opportunity is existing right now again! Will you be able to take advantage of it?
U.S. Credit Card Trap
Posted by Harley in The Economy on August 18, 2009
by Jennifer Barry, GlobalAssetStrategist.com | August 13, 2009
With U.S. household net worth down US$14 trillion since the peak in 2007, Congress has belatedly started to act concerned about the financial condition of the American consumer. In May, legislators passed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act to great fanfare. The law does end some of the worst abuses, prohibiting an increase in interest rates if a customer is late paying a different company, disallowing most retroactive rate hikes, and banning fees if the bank neglects to credit a payment.
However, if you have revolving balances on your credit cards, this is no time to relax. The law does not take effect until February 2010, giving credit card issuers a window to jack up fees and interest rates. It also fails to set an upper limit on these charges at the federal level. As financial institutions can incorporate in states without legal limits, major credit issuers can continue to charge any rate they wish as long as they disclose it. This permits banks to borrow from the Federal Reserve at a fraction above 0%, paying ridiculously low yields on deposits, while charging their credit card customers many times that percentage. For example, Wells Fargo is currently paying a laughable 0.05% on savings accounts in my area, with a $300 minimum balance.
The newest proposal debated in Congress is the formation of a Consumer Financial Protection Agency, which would allegedly protect the public from unscrupulous lenders. Politicians claim that fraud and risky financial behavior “fell through the cracks” in the regulatory system, even though many of these same individuals advocated for fewer controls a decade ago. Why should citizens believe that the same bureaucrats who failed to stop Bernie Madoff’s Ponzi scheme will act in their best interest?
It’s naïve to expect the U.S. government to take aggressive action against financial institutions, as both political parties receive ample campaign contributions from banks like Goldman Sachs. After all, Congress voted to make punitive changes to the bankruptcy laws in 2005, parroting the industry propaganda that many borrowers ran up their credit cards and then declared bankruptcy in order to avoid repaying their debts. In contrast, Elizabeth Warren’s data shows that 90% of bankruptcies are caused by family breakup from death or divorce, job loss, or health problems, not conspicuous consumption. The real gamers of the system were not borrowers, but the banks themselves.
The law, written by card issuer MBNA, made it more difficult and expensive to discharge debt, and limited the assets that could be protected from collection by unsecured creditors like – you guessed it – credit card companies. Sheltered by legislators, underwriting standards dropped on all sorts of consumer loans after the passage of this law. The banks were able to continue their pyramid scheme of packaging poor quality debt as AAA rated securities, selling it to trusting investors, and using that capital to make even more bad loans. Ratings agencies like Standard & Poors were complicit in the scheme, using the banks’ own models to evaluate these derivatives.
When this house of cards finally came tumbling down, it wasn’t the consumers who were helped, but rather the banks who cynically gambled with shareholders’ capital. Legislators allowed institutions to get “too big to fail” by eliminating protections like the Glass-Steagal Act in 1999, then threw trillions of dollars at these same banks when they later became insolvent. As Allan Sloan puts it, Wall Street’s attitude is “heads I win, tails I get bailed out.” Even sadder, the American taxpayer is still vulnerable to further “rescues,” as the mega-banks have not been chopped into manageable pieces, and they are still permitted to takeover their smaller insolvent rivals.
In reality, there is no need to create additional agencies or new burdensome regulation. There are plenty of laws against cheating and stealing on the books, just a lack of enforcement. For example, the FBI could have prosecuted financial crimes but much of the agency was diverted to fighting terrorism after 9/11. The CFTC pretends it doesn’t see the obvious manipulation in the precious metal markets, while the SEC has resisted prosecuting naked short sellers.
While Congress intervenes overtly in the credit markets, the Federal Reserve is acting as a debt pusher behind the scenes through the Term Asset-Backed Securities Loan Facility, or TALF. As this initiative is administered by the Fed, it lacks even minimal Congressional oversight. When the credit markets froze last year, the Federal Reserve designed this program to give loans to investors who want to buy consumer debt instruments. The Fed’s intervention increases the moral hazard in the economy by creating an artificial market for these derivatives. If lenders did not have a market for consumer debt, they would have to cut credit lines and close accounts. This would force fiscal austerity even in people reluctant to slash discretionary spending. However, beneficiaries like Cabela’s, a sporting goods company, are now marketing additional credit to customers, backstopped by Federal Reserve guarantees.
Chairman Ben Bernanke claims that TALF and similar bailouts are “emergency programs” that will be terminated soon, but their influence is already warping the business environment. Subsidies choose winners and losers, swamping any competitive advantages. Large corporations have an advantage over smaller companies, as they can afford to fill out the paperwork and lobby for access to bailouts. This crushes new innovative businesses, dampening job creation.
Despite the Federal Reserve’s disastrous stewardship, Congress plans to convert it into a “super-regulator,” giving it even more control over the U.S. economy. The Fed already has few checks on its power, as it is a private entity, not part of the government as many believe. In addition to driving monetary policy, it would gain “sweeping new authority to regulate any company whose failure could endanger the U.S. economy and markets.” This change would “sidestep most jurisdictional disputes” and centralize the economy under the direction of an unelected non-governmental body run by the banks.
The Democratic leadership intends to push this through Congress quickly, in what I think is a reaction to Dr. Ron Paul’s successful Audit the Federal Reserve campaign. He already has enough co-sponsors to pass his bill in the House of Representatives if it were allowed to come to a vote, but party leaders have blocked it. If the Fed gets to captain the economy, it can refuse to account for its actions as a matter of national security.
For years, the American people have passively allowed the banks to rake in obscene profits on the backs of the taxpayer. Finally, we are seeing some grassroots resistance to this blatant favoritism, with “tea party” protests and angry constituents confronting their representatives at formerly placid town hall meetings.
Unfortunately, this awakening is too late to prevent the destruction of the U.S. dollar. The debt bubble has already burst, and the attempts by the Fed to reflate it have created an enormous burden on the U.S. taxpayer. Since I first detailed the bailouts last October, obligations have ballooned from approximately US$2 trillion to an incredible $23.7 trillion according to Neil Barofsky, the special inspector general of the Troubled Asset Relief Program (TARP).
Don’t expect any government agency to protect you from the coming hyperinflationary depression in the U.S. Now is the time to reduce your debt, sell off unwanted assets, and live below your means. During times like these, paper assets have historically performed poorly, so move your savings into hard assets like the precious metals instead.
Copyright © 2009 Jennifer Barry
Editorial Archive
contact information
Hitmen Contracts to Bust Comex
Posted by Harley in Financial Education on June 3, 2009
[Sorry for the length but important for your reading, Harley Hunter]
by Jim Willie, CB. Editor, Hat Trick Letter | May 28, 2009
Major dislocations are coming. Tremendous disruptions are coming. Price discontinuities are coming. Price chart patterns might be rendered useless soon. Last week, the case for a grand Paradigm Shift was made, covering many elements in order to paint a mosaic. Taken in isolation, any one point is important in its own right, but not enough to convince of a structural change. Taken in entirety, the many points create a full picture that is more easily recognized. The ruinous events of the Wall Street banks last September and October surely served as an extreme event loaded with profound disruption. The Chinese have proceeded with a transition to yuan-based domestic banking, with an installation of yuan swap facilities around the world, with an ASEAN regional fund again supplied by yuan for flexible purposes, with permission granted to two Hong Kong banks to sell yuan-based bonds, with an admitted rise in significant gold bullion reserves, and with continued verbal battles over legitimacy of the US Dollar as the global reserve currency. These Chinese initiatives in recent weeks, occurring rapidly, are serving as a collective extreme event with the potential for profound disruption. A gold-backed yuan currency would surely cause massive disruption in a climax merger of events. The barter system set up between Russia and Europe will bypass the US$-based settlement system, as will the barter system set up between Russia and China. The avoidance of contract settlement in USDollars would result in extreme disruption to the global banking system. The creditor nations are plotting to organize and launch alternative currencies, maybe to fortify existing currencies (like the euro or yuan or ruble) with a gold component, maybe also with a crude oil component. A challenge to the USDollar by asset-backed currencies would result in extreme disruption to the global banking system. The hidden nitroglycerine to the disruptions is the Russian military, and any pledges of support for nations attempted to force systemic changes. These are just some important examples of change agents.
All Paradigm Shifts result in extreme disruption. That is the essence of Paradigm Shifts. The entire table changes, like its shape, its seats, its location, even who sits at the table, and in particular who sits at the head of the table. Big disruptions are to come from the COMEX pit of corruption, the central nexus for controlling illicitly the price structure for gold, the USDollar, and the USTreasury Bonds. The COMEX in all likelihood is the weakest link in the US-UK chain of corrupted financial markets. For many months my view has been that gold fights the political battles, while silver gathers more than its share of rewards and spoils. Gold has a long history of experience fighting grand battles. It can be placed in dungeons, but not for more than a couple decades. The rot in financial systems without golden foundations forces gold to the surface!
THE HITMEN COMETH
It has come to my attention that several private parties have accepted contract assignments to neuter the COMEX and London Metals Exchange, to render ruin to its gold market. That bears repeating from the rooftops. MUTLIPLE HIRED HITMEN HAVE ASSIGNMENTS TO KILL THE COMEX GOLD MARKET. That is the lynchpin to control the US Dollar, the US Treasurys, and the corrupt mechanisms used by the New York and London syndicates. Their clear criminal behavior is beyond the reach of law enforcement, but they are not beyond the reach of hitmen. The US Dollar has been in violation of the US Constitution since 1971, perpetuated by a renegade series of administrations. The global creditors for the USTreasury Bonds are so angry at the past suffered losses, the prospect of deep future losses, and the corruption laced throughout the US financial system, that they have hired third parties to kill off the US$-gold platforms, to destroy the burdensome banking ballast dominated by protected entrenched fraud experts, to lay waste to the vehicles used by the US-UK bond trafficking syndicate totally saturated with corruption, dishonesty, and collusion, replete with greed, totally absent conscience. They have systemically been dismantling the COMEX pillars and levers over the last several months, quietly and without fanfare, surely without publicity. If gold investors knew of their actions, they would become much bolder. Some want the bankers in their gunsights not to be warned. They await their fate with the Financial Grim Reaper. Their executions will be as swift as brutal.
The HITMEN have been hired, with highly lucrative contracts and wide berth in methods to be put to use. Their assigned task is to castrate the levered family jewels from some of the major players who illegally keep the gold price and silver price artificially low. The targeted victims know their awaited fate, and are presently defecating in their skivvies. A short list of banks facing the firing squad is already known, details for Hat Trick Letter members. Some detailed speculation will be devoted to the June HTL reports, since too controversial. This will be an evolving story, with new chapters soon written. The executions will be sudden. The missing US-UK levers will be immediate. Since last autumn, the global powers have aligned against Wall Street, even if the central bankers have supported it. If one wants to destroy a building, then weaken its pillars, cut a few support beams, then rush in a crowd of people, and wait for a turbulent storm. In the case of the COMEX, the wicked players will crowd the corrupted building. They will sink into ruin and then oblivion. They might become objects of mockery when they make noises from prison. If lucky, they will join Ken Lay from Enron fame in a remote Caribbean island where other favored operators live a secluded life, but a life nonetheless, complete with plenty of sunshine, fresh air, beaches, bikinis, and sailboats, but no intrusive cameras. Please, do not disturb the quasi-dead!
The financial cartel dominated by the United States and United Kingdom is soon to suffer some serious blows. The list of their financial crimes is as magnificent as it is long. Its list of victims is as prominent as it is long. The harbored resentment is great by many global players. They waited patiently for the Obama Admin to install a new group, but the old group remains due to a revolving door from the same smoky club, dominated by Goldman Sachs once more. Their influence, if not bribery, of the US Congress is in continuation, sufficient for unwanted obsequious approval. The regulatory agencies are from the same encrusted chambers replete with stench. The Coup d’Etat of the US Govt financial offices has not changed with Obama, who sounds like a refreshing leader but who is actually a marionette under control by those who selected him, favored him with publicity, then enabled his election. Nothing has changed except the rhetoric of change and the pace on the path to bankruptcy for a few icon firms like General Motors and Chrysler, if not the desperate cries from the 50 states suffering from insolvency. More prominent failures will follow, since nothing has been remedied. The channeled funds directed to Wall Street firms continue unabated. The bread crumbs to Main Street and the people continue unabated. Even the war continues unabated. Forget not that Marie Antoinette once said “Let them eat cake” before the French Revolution and the Storming of the Bastille. Today, the Bastille is the entire US Economy where insolvent Americans are stuck.
Some might wonder what was the turning point that resulted in hired hitmen to be under contract against certain US financial markets. Some might say the failures of Lehman Brothers, American Intl Group, and Fannie Mae. Not so! In my opinion, it was the invasion in the South Osettia region of Georgia in August 2008. The events around Georgia, with the United States Military deeply involved, along with a certain tiny mischievous ally nation, lit a fuse that set off a chain of events. In time, events led to orders given by high level powers, for the US fraud kings on Wall Street to swallow the medicine no later than first thing Monday morning on September 15th. When the Jackass inquired as to the nature of the urgency leading into that understood stated deadline date, no answer was given. The guess of the Bank For Intl Settlements was submitted by me, and it was confirmed. Other sources, the US Treasury Bond creditors, also applied the pressure, it was told. Rumor was thick that death threats had been delivered to certain Wall Street executives, such as Paulson. Thus the pressure passed on to the USCongress for passage of T.A.R.P. funds. The disbursement of those funds have not been made public partly because Wall Street (read Goldman Sachs) does not want the US people to be aware of payoffs for bond fraud under death threats. Also, the Congressional Inspector has cited a few dozen recommendations for criminal fraud investigations of the same T.A.R.P. funds. The US financial sector has become a den of vipers, no longer the bastion of gentlemen, but rather of syndicate bosses.
COMEX STRESS NEAR A BREAKING POINT
Sources from GATA (the Gold Anti-Trust Action committee) report growing distress for participants in the COMEX gold contracts, where a commercial party is very short and in deep trouble. They have sold more gold bullion than they can deliver. They are likely one of the big banks who violate the law with impunity, with US Govt sanctioned protection. By that is meant they routinely do not post 90% of the metal as collateral that they illegally sell. This is naked shorting by any other name. There are reports of grave concern over the upcoming June gold option expiration. If too many deliveries are ordered, then the commercial shorts would be under stress for exposure for naked shorting. They will eventually be caught in a bind and default on contracts. The important loaded monthly contracts are March, June, September, and December. The COMEX has tried to limit the ability of buyers to take delivery, running them around in circles, and entangling them in red tape, all clearly restraint of trade endorsed by the USGovt. Such rules are not in effect for cotton or soybeans or crude oil or pork bellies. After all, a financial crime syndicate has taken control of the USGovt, ever since Robert Rubin took charge at the USDept Treasury in 1992. His major project was to gut the nation of its gold, for the private profit of his friends. Recall Rubin came from Goldman Sachs. Rubin was the author of the Strong Dollar Policy which brought ruin to the nation. Hey, just my opinion!
Background inventory strain has come from unexpected sources. The Germans have demanded that gold bullion held in US custodial accounts be returned to their owners, with physical gold shipped back to Germany. The Dubai bankers have demanded that gold bullion held in London custodial accounts be returned to their owners, with physical gold shipped back to the United Arab Emirates. They are following the hired German counsel. In all likelihood, neither US nor London sources are in possession of all the gold held in those custodial accounts, since at least some of it probably was improperly leased. By that is meant without owner permission or knowledge. So an uproar could come soon with charges of gold bullion theft, or at least failure of fiduciary responsibility. Theft is a simpler description.
China is the biggest gold producer in the world now, but none of its output is directed to the open market. Russia is a significant gold producer also, but none of its output is directed to the open market either. A near default occurred in early April from a close call to Deutsche Bank on 850 thousand ounces of gold. The tarnished bankers at D-Bank dug up over a million ounces on the quick from the ready Euro Central Bank mine shifts in the nick of time. Never ignore the basic fact that COMEX lies through its teeth about the gold bullion in its vaults, since audits do not occur, some is leased (replaced by paper certificates), and some is committed in some fashion to very wealthy parties (unavailable). Far less gold bullion rests in COMEX vaults than is advertised. All signals point to serious strain in COMEX gold supply.
FEEDERS FOR GOLD FULLY LOADED
Two important feeder systems continue to be US Dollar weakness and US Treasury Bond weakness. More important than these is the systematic ruin of the major global currencies generally, but a convenient chart is not offered to track it. Just note the near 0% official rates dictated by the failed franchised Politburos known as central banks in most countries, or the movement toward 0%. The US Dollar has broken below important support at 81. Expect it to fall further after more dithering. The long-term US Treasury Note has suffered a fast rising surge in its bond yield. Its target from different perspectives is 4.1%, and right quick. These two highly favorable charts will power the gold price to new highs very soon. Nobody knows how soon, but soon. Rarely does one see both the US Dollar and US Treasurys fall in value simultaneously. They are now, and will provide a jet assist to gold, which is held back only by COMEX corruption. Their illicit maneuvers are more obvious and desperate with each passing week. Someday their actions might even be on the news. The imminent Standard & Poors debt downgrade of the UKGilt (bonds from British Govt) hit the credit market last week like a bolt of lightning. My belief is that it might have short-circuited the US-UK financial foundation, and burned out some major circuit boards. The US and UK share Third World finance characteristics. If a Fourth World existed, the US would merit it.
The gold price is on the verge of a breakout to new nominal highs. The chart demands it. It needs only a trigger, in a land where potential triggers dot the charred landscape. A gold event will be unavoidable. Its chronic strain has derived from the extreme disparities between the physical market mired in shortage, versus the paper market with unlimited supply. The tail is wagging the dog here, as it has been for years, soon to end. The silver price will easily recover to the 17 level in a flash. It has already surpassed the February high. It is loading up for the next little surge to resistance that awaits at the 17-19 range. The potential sling shot momentum boost for silver will be powerful, enough to send its price to 30 with ease. Think pendulum.
NOW FACTOR IN DISRUPTIVE EVENTS, THE PRICE DISLOCATIONS, AND THE OVER-ARCHING PARADIGM SHIFT IN PROGRESS. THE GOLD PRICE COULD REACH 1300 SUDDENLY. WITH EXTREME CONTROVERSY FROM COMEX, LIKE DELIVERY DEFAULTS, PUBLICIZED CORRUPTION, AND EVEN FRAUD INDICTMENTS, THE GOLD PRICE COULD OVER-RUN THE 1300 TARGET AND HEAD FOR 1500 AND BEYOND. SILVER COULD AS A RESULT FOLLOW ITS WARRIOR BROTHER, HEAD PAST 20 IN A FLASH, AND PURSUE 30 EASILY.
Little attention has been given lately to one of the most reliable time-tested forward indicators of the gold price. The ratio of the 10-year USTreasury Note yield to the 2-year USTreasury Bill yield has always been highly reliable in predicting a move in the gold price. The simple chart of bond yields versus maturity years is known better as the Treasury Yield Curve. The ratio is more amenable to chart analysis. A breakout in the Treasury Yield Ratio is in progress. All benefits from the mid-March monetization announcement have vanished. If the 2-year bond yield remains near 1%, where it appears stuck, then the breakout target would indicate that the 10-year bond yield is heading to 4.1% at least. Yet another method targets 4.1% in the long bond yield. The presented ratio contains information on the future prospect of price inflation, in a reliable contrast of time perspectives. Knuckleheads who insist on pounding the Deflation Tables might want to check this indicator, and look at the crude oil price. It is $63 per barrel, not the $20-25 predicted by these lost troopers. Yo Mish Bro, can you spare me a deflating dime? The strict definition of money is useless anymore. The Shadow Banking system is an actual part of the real world, which you do NOT count.
To the fools, dolts, and morons out there who cling to notions of recovery and Green Shoots, bless your heart. Hope has clouded your minds. Once more you believe the liars and purveyors of propaganda, after being nearly fatally burned. You must believe in the Easter Bunny, Santa Claus, and the Tooth Fairy. You should not be in charge of investment funds, but rather of crayon supply cabinets and Beanie Baby collector items. The Case Shiller housing price index this week reported a 19.1% annual decline in 1Q2009 from Q1 last year. Foreclosures in April were up 32% over last year, as the nightmare continues. That is 1 in 374 homes with mortgages in America in some process of foreclosure. A relentless decline in home prices erases household wealth, and the source of consumer spending. Consumer confidence is ephemeral and baseless. The mortgage rate has just gone above the pre-March levels, when the US Fed announced they would monetize $1050 billion in both US Treasury Bonds and US Agency Mortgage Bonds. The benefit has been erased. Today’s underwater mortgage is tomorrow’s foreclosure, made worse by job losses. The FDIC this week reported a 25% rise in non-current loans in 1Q2009 from Q4 of last year. Greater bank losses will come, much like floods follow hurricanes. And lastly, give credit to the US Govt stat rats in their busy laboratories. They decided to ramp up the Q2 Gross Domestic Product by including all US Govt rescue funds for the big banks, including the diverse funds from the many liquidity facilities. All those funds will go directly into the GDP for Q2 as a special line item. Expect a miraculous economic recovery in the second quarter, based in vapor. The stock rally since March was based in accounting fraud. These are true American innovations, but too bad they are not exportable! They are not, since they have no value.
Copyright © 2009 Jim
Willie, CB
Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a Ph.D. in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials.
http://www.financialsense.com/fsu/editorials/willie/2009/0528.html
GOLD AND SILVER NEWS:- HSBC's Morris Says He Sold 30-Year Treasuries, Kept Gold
- James Turk - Big Money Buying Pullbacks In Gold & Silver
- Rep. Paul Calls for Gold Audit, Questions Whether Fort Knox Is Empty
- The Fed's Liquidity Trap: The American and world economies are in a deliberate state of slow ...
- Gold price to double in five years - Frank Holmes
