Friday, May 20, 2011

Yaaaaaa Baby! U2 In Denver Tomorrow!!!!

I can't wait to see them!  I saw them last in NJ at the Meadowlands in 1997 - the Pop Tour.  So I'm doing an abbreviated post today.  Besides, I'm spending most of my morning taking taking profits on the mining stocks I loaded up on near the close yesterday and adding to our junior mining positions at ridiculously cheap prices.  Some of the ones I bought yesterday are up over 5% right now as I write this!

It's my view that silver/mining stocks are washed out to the downside.  Gold never even really had much of a correction since the attack on commodities three weeks ago.  Today's action convinces me that the bullion banks and the Fed will have trouble taking the metals lower.

It's no coincidence that the hit on silver occurred AFTER Europe and Asia went home for the weekend, leaving only the paper thiefs in NYC to try and hammer down the price of metals. They took a shot at silver on the heels of TWO voting FOMC members stating today that they can't take away the easy money anytime soon:  LINK  And don't forget that Janet "I look like Janet Reno" Yellen is the Vice Chair-idiot on the FOMC now. Recall that she gave a speech last year in which she advocated taking Fed funds negative in order to "stimulate" employment....siete capisce?  QE3 is coming soon. 

Here's another little gem that isn't getting much media play.  The cost to buy insurance agaist U.S. Treasury default is the highest it's been since January:  LINK  It costs .5%  to hedge a 5 yr Treasury yielding 1.8%.  It costs nearly 33% of your return on investment to hedge against default.  That says it all right there...I hope everyone took advantage of that little gift delivered by the bullion banks this morning and added to positions when they smacked silver after the Comex opening.  I also hope everyone took advantage of that last pullback in ECU and added.  ECU will soon have drill results from their deep-drilling and if the results come in anywhere near as good as I think they will, this stock will give the large short-sellers their own day of rapture.

In the meantime:  Have a great weekend!  Here's U2 in Mexico City last week week performing one of my faves:


  1. You have good company on miners....

    Expect Chinese Acquisitions of Mining Companies

    With gold surging and silver stabilizing, today King World News interviewed John Hathaway of the Tocqueville Gold Fund. When asked about state owned Citic buying a large stake in Gold One Hathaway replied, “They (the Chinese) know that they have to have gold, so this is just one manifestation of a strategy to increase exposure to gold by taking a significant position in a public company which conceivably could be used to acquire other mining properties. It’s an incipient foray into the mining equity space which from my point of view as a manager of gold equities, I’m just delighted.”

  2. Looks like someone got scared shitless:

    **Attorney General Zoeller supports rehearing in Fourth Amendment case**

    Enjoy your concert Dave

  3. Dave,

    I am impressed by what you write from the somewhat short time i have been reading you. (1 month or so).

    Since much of what you write is in line with my views, i thought i should mention 2U (to you) about U2.

    Please do a search on Google for "U2 New World Order" or "U2 Illuminati".

    Have fun at the concert anyway. :)

  4. WOW! Have a great time at the show. Greek default jitters sent gold up, imagine that! Fake paper promises getting reprofiled or whatever they call it.

  5. Thx. Greece is screwed. Norway pulled out of financial support today because they can. They know Greece is a financial roach motel. Fitch took Greece down to B+. Fitch typically applies the most rigorous and honest credit standards. It's a polite of way of saying Greece is going into the shitter financially.

  6. Jim Rickards from Omnis has made an interesting QE3 point, that the quadrupling of the Fed balance sheet (it took 95 years to get to 750 billion, and 2 years to get to 2.8 trillion, so a lot of bonds and bills are now maturing, so they will just monetize them.

    In fact the bernank has already said so. However its only about 20 percent of the current QE2, likely not enough.

    But the numbers, EVEN THEIR NUMBERS have now deteriorated so badly, (assuming they ever even changed) there will be QE on the QT, they may wait a decent interval to try and look responsible , since, they CANNOT LOSE IT SOUTH, thats stone age stuff.

    What would be really be interesting would be to know the FED maturity, redemption table, since its likely to be asymmetric.

  7. You mean to say you like the "Saviour of The World" as long as he doesn't have to put his own hand in his mega-millions to do it.

    Bono the fake.

  8. I will have baby back ribs and pastrami pictures up later from the smoker, good stuff.

  9. Looking forward to the pics!

    Food pornography if anyone is interested:

  10. The pics are up! Pretty good results. Did you get your Egg yet? Now I have to do market homework, always something going on.

  11. Paul Craig Roberts: "The Whole Thing Is a Fraud"