War was always here. Before man was, war waited for him. The ultimate trade awaiting its ultimate practitioner. - Cormac McCarthy, "Blood Meridian: Or The Evening Redness In The West"It's funny, I bought a few of Cormac McCarthy's novels for a friend several years ago and I ended up reading them before she did. As an English major in college, I can say definitely say that his works should be taught at the college level. The problem is, the college would have to decide if they should be taught as part of the English, Government or Philosophy curriculum.
It looks like Obama finally put the finishing touches on his fade from attacking Syria without justified provocation. Hell even AP has ripped to shreds any of the "evidence" that Obama has offered up as proof Syria even used chemical weapons at all: LINK What's most stunning about this whole ordeal to is the ineptness with which Obama and John Kerry handled the entire situation. This whole stunt the Obama regime tried to pull off was pathetic from start to finish.
Again, as an English major, to me the worst adjective that anyone can label anything is "pathetic." What's hilarious about the whole ordeal is that the Democrats and CNN are now assuming the role of the neocons and the Republicans in Congress are now largely the pacifists. It pretty much leaves one speechless. Certainly anyone who originally supported and loves Obama unequivocally CAN NOT support this tragically pathetic neocon now...
At any rate, I am starting to conclude that gold and silver are marking time for a big move to the upside. My latest indicator? Pan American Silver (PAAS) announced out of the blue yesterday that just THREE weeks after it announced that it had implemented hedges for a significant amount of its gold and silver production, it had decided to remove them. This was a stunning and rapid reversal of a big financial decision and it must have cost them a lot of money to remove the hedges. I'll know if the cost was big enough that have to disclose the details in their next 10-Q (it will be pigeon-holed in the footnotes for sure).
I have never cared for PAAS as an investment because I have found the management to be incompetent and full of crap. More important, they have always been a hedger. But probably the biggest red flag for me with regard to PAAS is that Bill Fleckenstein was on the board of directors until the end of 2011. Fleckenstein is probably one of the most disingenuous and incompetent market analysts out there. For some reason he gets air-time on CNBC, but probably because he represents the "contrarian" investor viewpoint and CNBC has also figured out the he's an idiot. We certainly know that CNBC features nothing but idiots.
At any rate, one of the primary Wall Street firms that "advises" PAAS is JP Morgan. JP Morgan has spent the better part of the last 9 months eliminating its massive, manipulating short position in Comex gold and silver contracts and has actually amassed a considerably large long position in gold contracts. My bet is that JP Morgan told PAAS that, based on what it knows as an insider to the precious metals market worldwide, putting on those hedges was not a good idea.
There are plenty of other signals being flashed loud and clear for anyone who is paying attention, but this latest move by PAAS further confirms my view that the metals are marking some time here - ostensibly until after the next FOMC meeting next Tues/Wed - before they being to make a move to the upside that will take everyone except the hardiest of precious metals investors by surprise.