Friday, December 31, 2010

Happy New Year Everyone (Felice Anno Nuovo A Tutti)

And here's to an even better year in 2011 for gold and silver - ENJOY:


  1. Buon anno anche a te e ai tuoi cari !


  2. Happy New Year for you as well Dave!

  3. Same from me, Dave!

  4. Thanks for keeping it real Dave.

    Happy New Year my Blogisphere Friend.


  5. Some Random Truths.

    A couple of days ago I postulated in the Midas that the US Government might actually WANT gold up which seems, on its face, inconceivable.
    The twig was Richard Russell's simple table of the gold price post 2002.It looked like a managed rise, very orderly, very controlled,very disciplined , possibly a massive short cover of the leased out gold in Fort Knox.

    For the United Ttates to survive, two things must happen.
    First they have to resolve this Mt Everest of unpayable debts and entitlements.WE all know the numbers, and we all know its in the realm of fantasy that they could ever pay it back in real tangible dollars. But they could certainly pay it back in grossly inflated dollars...Old Dollars I call them.
    This creates a problem though, because to do a massive devaluation is to correspondingly lose their position as the worlds Reserve Currency. This they cannot do,US hegemny evaporates , thats tantamount to game over. Goodnight Irene to the United States.

    However , if, as i believe , that over the last 30 or 40 years they debauched the 8000 tons ostensibly in Fort Knox, either through outright physical sales (doubtful), but almost certainly with hundreds of billions of swaps in taking gold down to 250,they now need this gold back.And a price orders of magnitude higher. Say what?? How about this then.

    Because to continue to dominate the world, its critical to retain the flexibility of being the worlds reserve currency.So they may well be unwinding 30 years of swaps,hence this peculiarly orderly 10 year rise in gold, with a view to introducing the NEW Dollar, a dollar backed by gold.Now that would be quite a currency, they could probably go another twenty or thirty years quietly debauching IT with nobody the wiser.
    In short pay the debts with OLD Dollars, and set the stage for a Gold backed NEW Dollar to replace it. This means having as much gold as possible to back it.Including unwinding countless tons of what you swapped post 1971.And given the fractional reserve game, why could they not have been fractionally reserving Fort Knox for forty years and have swaps way in excess of the reported 8000 tons.Of course they could these ever so fine people.
    Now in order to back such a currency, its pick your number time, gold at 6000?, gold at 10,000?, gold at 25000?, the only sure price for the peg, is it has to be orders of magnitude higher than at present, so that its proportionate to the size of the US economy.
    WEll, you can hardly jump the gold price from 250 to 20, 000 and then say thats what its "worth" to back the "New Dollar". The United States would be laughed off the stage.
    Nope, what they need is a much higher kickoff point for the switch, , maybe 2000 to 3000, so that the, eg, ten thousand dollar peg has some credibility.To jump it from 250 would be ludicrous.
    So, they talk the talk,zzzzz, but look at the gold price walk.Look how meticulous the ten year rise is, its almost a stairstep rise, 20 to 30 percent a year, it , to me, has the fingerprints of a massive short being carefully bought back,with a tactical upward bias, the sole purpose for which,imho, would be to back a new currency, after resolving the debts with the Old Dollar.

    Now I appreciate this is pretty radical,in fact the very supposition is downright funny its so counterintuitive, so I invite you all to tell me im eggnogged :)
    Gord Savage.

    Incredible as it may seem, .

  6. While Im At It. The JP Morgue.

    If anyone ever had any doubt that JP Morgan was a US Government Agency, , after McGuire, poor checkmated Chilton flailing at the CFTC without result , dozens of laydown class action lawsuits, and the comical obstructive convulsions of Gensler at the CFTC , then may i respectfully refer you to four and a half dollar copper,on wheels and headed to 8 .

    Enter JPM , who Blythely proceed to corner the entire LBMA Copper inventory, oh sorry, just 90 percent, probably including the wiring that keeps the LBMA vault lights on.Was that Blythe i saw wheeling those Threadneedle Street manhole covers into the BMW from under her ever so genteel arm? Why I dare say she scares me shitless as she stated in that conference call, haha, I AM!!! SHE DOES!! Nice mouth you have lady.
    Any regulatory comment though?Kindly be serious.

    Could there be a connection to China cornering the rare earth market. er, uh,, . Does a bear shit in the woods?

    China needs copper and badly , they are by a long country mile the world's largest consumer of it, so, this seems kinda straightforward, you rare earth me you little buggers, and we will copper the piss out of you.

    And just who will execute the copper corner? Hmmmmm, let see. My, my , that apparently would be JPM, and not just executing US government policy, but in taking copper, wham, a straight line from 3.60 to 4.45 and counting, they have put a prodigious dent in their superficial silver losses.
    Not conspicuously tough when the LBMA regulator is staring down the barrel of a gun, if he can see it in the dark after Blythe stripped the LBMA boardroom wiring.

    Everybody wins but China,awww, who will be paying 8 dollars for copper in short order, and if they keep dicking with their rare earth corner, try 12 dollar copper. Copper has a more than fighting chance of becoming the poor man,s silver!!
    And finally , the reasons the investigations founder,the reason there is no record of the Court proceedings when the silver whistleblower McGuire got crashed the day after his testimony before the CFTC, is JP Morgan IS the US Government, and don't f with us.


  7. Great stuff in 2010 Dave in exposing the truth. Best wishes for 2011!

  8. Great comments GS.

    Thanks Oliver. Same to you for 2011!!

  9. Latest bit of gold news (If someone else mentioned this before I apologize for repeating this.)

    Goldenvelope is now offering to buy your old cell phones, of course they are doing this to keep cell phones out of the landfills and not because cell phones have gold in them (yeah, sure)

    The only good thing to come out of their offer to buy cell phones is the fact that gold bugs can point to just how useful gold is, no gold, no cell phones.
    Chew on that gold bears.

  10. Dave,
    I am looking to really get active in trading in the new year. Shoot me an email so we can discuss some ideas for some of those junior minors. Can you believe the fiing Raiders were 6-0 vs AFC west????