Tuesday, May 11, 2010

One of Life's Bittersweet Ironies...

Fitting that Gordon Brown - the very man who unloaded half of the Bank of England's gold at $250/oz - resigns as Prime Minister of England on a day when gold hits an all-time high in U.S. dollars. To be frank, Brown should have been beheaded by sword, like ex-Queen (1533-1536) Anne Boleyn, rather than rewarded with the Prime Ministership. I wonder how Shakespeare would have portrayed this era in England...and I'm even more curious to know who bought the 400 tonnes of BOE gold...

"Time shall unfold what plaited cunning hides." Shakespeare, King Lear

I had to add this, with regard to the news that GM may buy back GMAC:  Jesse of Jesse's Cafe Americain remarks:  "It's the equivalent of a dog returning to eat its vomit."


  1. I was hoping he would have won and led us front and centre on the sinking UK titanic.

  2. Dave,

    So when do we sell?

    When Prechter says buy?

    When ConTROLLian Bear says buy?


  3. we should hope he did not buy gold today

  4. I'm not sure if Gordon should be blamed. Perhaps thanks to his participation in gold suppression scheme UK/US/Europe were able to live on highest standards of living for many years.

    Would you try to guess what would happen if he (they) did not sell the gold to suppress the price?

  5. Joe Kernan - that's funny. I guess as per Hal's comment, when Gordon Brown announces that he's buying physical gold for private delivery. LOL.

    When China revalues gold and rolls out a gold-backed reserve currency, then we sell.

  6. stibot: who knows how high. probably somewhere in line with gold compounded forward at John Williams true inflation number since 1980, which puts gold around $7000/oz now. But you also have to factor in geopolitical/economic instability factor, so maybe $10k?

  7. Dave I am going to be blunt here take it for what it is worth

    We're headed for a cost-push crash

    For the newbies, you better know what this means as you're gonna get crushed if you aren't on the right side of this move. It requires being positive about hugely negative financial news. Very few get it. And of those who do, very few can stomach it. For those who can, untold riches. Hooray for the Debt Pushers.

  8. 400 tons @ 7000 $/oz is near (400 * 1000 * 30) * 7000 = 85 billions US$. But because of this suppression scheme UK was able to export perhaps trillions using their financial industry. Similar to US.

    So you suggest he has to be blamed. But i'm not sure since: what is loss of billions compared to profit of maybe trillions achieved thanks to the gold suppression scheme.

  9. stibot. trillions for the benefit of the few. the $85 billion was supposed to be the citizens' of England gold.

    you are right, it just depends on if you support trillions being extracted from the hoi polloi and handed to the Rothschilds

  10. Dave, love your style. Short and to the point. Leave the FOFOA-length diatribes to others. Don't get me wrong, when I have an hour to kill and I want to know the 'why' behind the what, I go there.

    When I want the 'what', the meat and potatoes, I come here.

    I also love (fingers crossed), how there are no trolls here. Its just a bunch of people sharing thoughts at the cafe, as it were.

    WHat a day!

    RE ECU - one thing I noticed is they have close to 40 0mil shs O/S. What are your thoughts on that?


    Thanks again.

  11. Thanks for the feedback Rothbard. As an English major in undergrad, I try to be simple and concise with my writing. There were some trolls maliciously harrassing me back in November and that's why I had to put the comment moderator in place. The only comments I've had to discard since then are spam comments from marketers.

    ECU has a big share base, but on a price/oz in the ground, it is one of the cheapest juniors with proved resource/43-101 silver. The share base will eventually work to its benefit when the big funds decide to throw money at the sector. A fund like Fidelity can't really for all practical purposes buy into a small junior with only 30mm shares out, but it can take a meaningful position in something like ECU. My guess is that once ECU can get the Massive Sulphide Zone defined - and they think there could be at least another 500mm ozs there, which is in addition to the nearly 1 billion "possible" ounces Micon has signed off on, I bet KGC or someone like that will buy out ECU.

    Once the juniors start to get some fund attention, ECU will start performing. Right now the juniors have been subjected to huge manipulation and naked shorting, especially by the Canadian bucket shops. I'm friendly w/the 2nd largest shareholder and he's been tracking the time/sales and market depth for over a year, has filed complaints with the Canadian regulatory authorities, etc to no avail. No reason to assume Bay Street/Canadian regulators are any less corrupt than in the U.S. That trading manipulation/corruption is present in all of the juniors I own/track

  12. Agree on the naked shorts of the jrs. How with gold at 1200+ these things are just now hitting new highs is ridiculous!

    Its nice to see a lot of green the last couple days, but deep down we know these jr's should be MUCH higher. Multiples higher. The gains the last 2 days are table scraps compared to the feast we should be having.

    What are your thoughts on the naked jr end game? IF they can 'manufacture' shares how does it ever end? Sure the JR's can move up a bit with a rising gold price, but will we ever see their true value? When/what will it take for us to see unmanipulated prices?

  13. The naked shorts in the juniors will eventually be overrun by the big funds who start pushing their way into the sector and ask for delivery of the certs or by M&A deals, where the first few naked shorts who get reamed up the ass by a takeover and they have trouble covering/delivering shares into the tender. That will scare the shit out of the naked shorting.

    A buddy of mine - a Phd in math from U Mich - subscribes to this guy who has some kind of weird mathematical system for timing entry/exit into gold/mining stocks. This guy's system confirmed a set-up in his system that is signalling a 6-24 month massive run in the metals/shares. I've been watching this guy's calls via my buddy now for about 4 years. The system blows for short time periods but it's pretty good in calling major turns up or down. Food for thought there and I would use that signal in conjunction with whatever else you use.

    My personal view is that the sector is set-up for a big run.

  14. Great day for the metals with my best friend silver moving up well. I expect a nasty pullback is coming, but the pullbacks are not scaring people off anymore. Banks with shorts MUSt be getting nervy here.

  15. hard to say on a nasty pullback. for sure higher volatility. if we are enterting a period like we had in late '05 - May '06, which we may be, hold on to core positions and try to get cute with daytrades or you'll end up chasing.

    I'd love to take a 1000 oz. Comex bar of silver and shove it up Jamie Dimon's ass so far that it comes out of his mouth with blood on it.

  16. Well Dave, tell us how you really feel! Waste of a nice bar IMO!

  17. I'd love to take a 1000 oz. Comex bar of silver and shove it up Jamie Dimon's ass so far that it comes out of his mouth with blood on it.


    Come on, tell us how you realy feel;-)

  18. Well, that's how I really feel LOL. GYC, I'd put it thru the dishwasher, sterilize it with rubbing alcohol and it would be good as new.

  19. Here We Go, The Crisis Moves to California: $18.6 Billion Budget Deficit


    Here it comes folks.....tic tic tic

    California has the lowest credit rating among U.S. states. A taxable California bond maturing in 2039 traded for a yield of 7.08 percent today, up from an average of 6.87 percent on May 6, according to Municipal Security Rule making Board data.

  20. Wow. Thanks Hopium. That bond yield is a junk bond yield now.

  21. Noth Dakota established a state bank in the early 1900's to ward off WallStreet grifters. California should do the same thing, although it may be too late now.

    Joe M.

  22. Dave or Hopium, could you explain what a cost-push crash is? Or reference a good webpage. When googled, all I found were similiar posts by Hopium on other forums. Yes, if you couldn't tell, I'm a newbie.

  23. by cost-push crash I think Hopium is saying "hyperinflationary super-depression." I believe that will be the end result of what is happening now, but it will take some time for that to unfold.

  24. Regarding naked shorting of jr's (ECU, USA.V, etc):
    Not only can ghost shares be used to suppress the share price, but also to rig shareholder voting where the jr's can be acquired for next to nothing - see Eric de Carbonnel's recent article describing shareholder vote rigging in the context of naked shorting

    And no regulators in sight, apparently

  25. Yup. No regulators anywhere and the Canadian regulators are even more corrupted than the U.S. ones are. I'm friends with ECU's 2nd largest holder and he put together - twice - extensive proof from trading/market depth/etc on ECU trading, and filed complaints with the regulators in Ontario and they completely ignored him. It was incredible. He had daily evidence for month that showed big offers that would hit the tape in the last 30 seconds of trading in order to push the price down. That was just part of his filing.