I'm not worried about this price action because it is occurring only in the paper gold markets of London and New York. Soon as Japan and China closed up for the weekend last night, the London paper pimps went to work on the price. The real currency war going on behind the scenes is the "war" over physical gold. Everything else is a distraction. More than 400 tonnes of gold has disappeared from visible, above-ground vault stocks since Jan 1. Where the hell is all of it going? - Me in response to someone who asked me about today's price action on the Comex.I mentioned yesterday that our entire system has become a complete farce. Ben Bernanke and Barack Obama, directly and through their media whores, tell us the economy is getting better. Yet, how come a new record amount of people jump on the food stamp and Social Security Disability Insurance gravy train every month? Every month. Close to 16% of our population receives food stamps now. That's a fact. It was reported the other day that Michigan had to specifically pass a State law that forbids the use of food stamp debit cards in strip clubs and liquor stores. That's not a joke?
And then I see the Treasury's new Padrino, Jack Lew - the guy who used his position at Citibank to fleece the student loan system - was on CNBC early this morning exclaiming that "U.S. growth is not sufficient." This was in the context of urging Japan and Europe to do more to stimulate their economies. Well Jack, if our economy is so strong, how come the Fed needs to keep pumping $85 billion per month - at a rate of over $1 trillion in a year - into the system? Jack Lew is a complete joke.
How about the housing market. More on this in coming days. If you look at the real data below the hedge fund and flipper buying in the hot "bubble" markets - the same hot markets that crashed hard in 2007 - the housing market is actually turning south. If this were not the case, then how come Bernanke feels compelled to pump $40 billion per month into the mortgage market? Seriously? The housing market needs this? It's a joke. Bernanke is a joke. $40 billion per month equates to roughly 145,000 homes per month if you use the median price according to the Census Bureau. What happens if Bernanke pulls that $40 billion away? You tell me...
Now of course, most of that $40 billion is being injected into the big banks so they can keep bad mortgages on their books from collapsing and issue new, future bad mortgages to new suckers who think the housing market has bottomed. And Freddie Mac announced today that it was going to start issuing new bonds that are not backed by the Government? Huh? Is this some kind of joke? According to Freddie Mac, the bond market is strong enough for it to issue this type of paper. Hmmm. Okay fine. Let's see how strong that bond market is if the Fed stops printing up $85 billion per month to support both Treasuries and home mortgages? See what I mean? It's a complete joke.
And if you want to see the biggest joke of them all - the reason the U.S. stock markets are starting to move up bubblicious parabolic fashion, just look at what has happened to Japan's stock market since the Government started printing trillions of yen:
(click to enlarge)
See what I mean? Our system has become nothing but one big joke. And the joke's on us because while we watch the farcical tragedy unfold, the producers, directors and actors are stealing everything we own...
For everyone who is holding onto real, physical gold and silver, keep holding on tight. It might be a roller coaster ride for a bit but patience will be amply rewarded. The main mining stock indices jumped up over 5% two days ago. It was reported again yesterday that insiders are piling into the smaller mining stocks at record rates. I chat with many of these insiders all the time. They get the joke and they also understand that it's a joke how undervalued their shares are. They are putting their money where their mouths are. Given that NYSE insiders are dumping their company's shares in droves, we know they get it also. How about you, Ben, Barack and Jack? Et tu, si brutti corrotti?