Oldtent Archives 2009

Doing my tax atm - always brings on senior moments!  Quote mark above the / and right shift key.

Dear Friend of GATA and Gold:

Maybe there’s hope for America after all. It comes in Eric King’s interview last Friday with U.S. Rep. Cliff Stearns, R-Florida, who at a recent congressional hearing eviscerated former Treasury Secretary Hank Paulson for deceiving Congress and the public and for the most grotesque conflict of interest in favor of his former employer, Goldman Sachs. Stearns accused Goldman Sachs of a “coup d’etat” takeover of the Treasury Department. You can listen to the interview with Stearns at the King World News Internet site here:

tinyurl.com/lcfrv3

As I discussed in yesterday’s report, it’s very common for a breakout pattern to briefly move back down to test the operative energy level, and then quickly resume its upward movement.

This is just what happened in gold on Wednesday, as prices moved down to bounce off $961. The only real surprise on this move down is how long it took to play out, as the 150-minute fractal dimension has actually started consolidating above $960.

This is okay, as it should provide even more energy for the move up to $990, which is still definitely on track to happen by Day 21 on Monday. In fact, I think we could see gold hit $990 before Monday, which would set up a double top around that level early next week.

At this point I think the best strategy is to exit long positions just under $990, and look to get back in either on a pull-back, or on a definitive breakout over $990. Granted, this is a bit labor intensive from a trading standpoint, but at a significant level like $990 you pretty much have to make peace with the idea that you are willing to sacrifice a few points not to suffer through a sizeable correction.

There is almost always a quick test back down to a major level like $990 after a breakout, just as we saw the test down to $960 today after prices moved over. So to me it’s preferable to get out just under $990, and then simply re-enter just over $990, to avoid the potential of riding gold all the way back down as far as $960.

I’m concerned about a correction off $990 simply because gold has already come so far during the initial part of this new timing cycle.

The daily fractal dimension is in great shape, but it’s hard to overlook the fact that gold will have traveled more than $80 in 21 trading days if it’s pushing up to $990 by Monday. I’d be delighted to be wrong about this, as I am still confident that $990 is finally going to be breached on this trend, but it’s likely going to take 10 to 15 trading days — out to Day 30 - 34 — to get ready for that breakout.

At this point it would not be ideal to see gold break down significantly under $960, and definitely not back under the last major consolidation support level at $954. So as long as gold stays easily over this zone then there is little to worry about. But there should be little downside pressure into Day 21.

Bill H:

An offer to Jon Nadler

To all: me thinks we might have struck a nerve or two recently! Jon Nadler wrote yesterday…

“They are the very same ‘well-informed’ sources that must be telling the writers of these marketing pieces disguised as ‘news(letters)’ that US embassies have been quietly suggesting that their staff load up on currencies (other than the USD) in anticipation of a dollar ‘collapse’ scenario. Or, the same ‘sources’ that have ‘concluded’ that a surprise US bank holiday and/or US dollar instant devaluation is ‘assuredly’ in the works. Someone skipped their meds again, or has a very marginal grasp on logic (or both) or just wants you to buy one more issue of their drivel. It is your money, it is your mind. What could go wrong?”

And…

Still dazzled by various hard-money newsletter ‘research findings’ that point to China as a ‘massive’ buyer of gold while it reportedly ‘abandons’ the US dollar? Be dazzled no more. Be more like, suspicious:

“GFMS didn’t give a breakdown of purchases by country. The consultancy said it didn’t believe China was a substantial buyer in 2008 or in the first few months of this year. “We see no evidence of large-scale and direct purchases in the open market by this country either in 2008 or during the first few months of 2009.”

And then best of all, he quotes Nouriel Roubini suggesting that commodities are “over stocked” by China and a “downside correction in commodity prices, however modest, may occur”.

Well where do I start? First, I must warn you that I do not take meds except Ibuprofen because I feel “old” from abusing my body when I was young so Jon surely couldn’t be rebutting my heretical yet common sense thoughts that a “bank holiday” is in our future. So that said, didn’t China just recently announce that they had purchased some 454 tonnes over the last several years? So… this means they have been a buyer and not a seller right Mr. Nadler? It has only been over the last 9 months or so that China has made any remarks regarding the Dollar and the safety of their “reserves” so I may presume that the Chinese are only recently MORE likely to purchase MORE Gold than less Gold, right? Makes sense right Jon?

And as for quoting Nouriel Roubini, I ask why? Are you “cautioning” your readers that Gold will go down with commodities because China has over stocked? Let me get this straight, first Gold is not being bought in size by China but then it (by association) will go down because China has “over stocked”? (I know there is some logic here somewhere). Have you ever asked yourself why China is on a buying spree of everything real? Hint, because the Dollar is not! Gold is not a commodity, it is MONEY! If you do not understand what exactly your product is then what are you doing writing about it? I know you get it, you must, how could you not?! Maybe there is another reason Gold is “so scary” to you? Only you know.

Several years back I began to smell a rat while reading Mr. Nadler’s comments because he never sounded very bullish and at times even “pooh poohed” his own product. Why would I buy bread from a baker who told me his product tasted like crap and was possibly harmful to my health? For years I had clients call me with questions like “but I read on Kitco that Gold might be dangerous” and had to spend time re educating people why we owned it in the first place (thanks for wasting my time Jon). On every Gold pullback I would get the “nervous calls” that would surely come and each time I tried as hard as I could to explain that it was not a time to be fearful, it was a time to BUY MORE (and I wasn’t on meds back then either Jon).

I can only guess that Mr. Nadler continually tries to throw water on the PM fire because they have “pooled accounts” that may or may not be 100% funded by the metal their paper represents. A few months back when RBC had a “little problem” with their accounting (or lack of) for metal we were assured there was “nothing to worry about” and no need to request delivery, (hmm…I think he was taking a shot at Jim Sinclair on this one). In any case, we pesky “Gold bugs” have so little logic according to Jon that we actually think holding our own metal that we bought and paid for (even though he warned us not to) is actually safer and more sensible than holding a piece of paper that says some Joe Blow company or even the venerable Kitco holds, stores, and will deliver upon request. But then again what do we know, we’re just a group of conspiratorialist knuckle draggers that forgot our meds (I swear I don’t take any).

As for the coming “bank holiday” and devaluation, haven’t we watched already witnessed a 35% Dollar devaluation versus other paper over the last 7 years? Haven’t we watched a 70% devaluation versus his product, Gold? Wasn’t this BEFORE the Treasury and Fed blew up their balance sheets? And…the Dollar is supposed to be a better place NOW to store your “money and your mind”? Do you really believe the banks will remain open durinng a Dollar panic? Ha! “What could go wrong”? Have you not done the math Mr. Nadler? The Treasury is now past the point of no return and can never pay back principal and interest in present Dollars, THAT’S WHAT! No worries though, holders of Dollars won’t ever stampede for the exits because they’ve already called their internet “Gold provider” and followed your advice to put 5-10% of their net worth into metal for protection. The Chinese haven’t quite gotten to the 5-10% level (or even 1%) yet but we will certainly know when they attempt this because anyone short or not “fully stocked” to perform on their paper pool promises better get out of the way or they will announce bankruptcy over night. You are in the business of selling “Dollar insurance” right? Maybe you should cold call the Chinese and offer them a FEW THOUSAND TONNES because that’s what they need to protect their reserves. Oh, difficult order to fill you say? Offer them part of the pooled account, I’m sure they’ll go for that and your commission will allow you to kick back and forget about us annoying conspiratorialists that seem bother you so.

Jon, I’m sure by now I have struck slightly more than a nerve or two but I offer you this, Bill Murphy (head whacko at GATA) offered to debate you some time back. Please do not refuse and liken GATA to the IRA and terrorists like Mr. Klapwijk of GFMS did, I assure you we are not. We are only seekers of truth and free, honest and unobstructed markets. As a group you must admit that GATA has been more correct on the Gold price than anyone, even if you believe it was for the wrong reasons (thus the reason for a debate). Why not take him (or me, I promise not to take any meds so I should be a pushover) up on his offer, show the world how stupid and ignorant we really are and who knows? GATA surely has a following that owns a goodly amount of physical metal, when you blow Bill Murphy, out of the water, these mindless Jim Jones followers as you would have the world believe will release their metal and jump head first into your (cess) pool, Think of the physical metal this could potentially release! Think of the publicity! This would be the Ali Frazier fight of the Gold world! Come on Jon, do it for truth, justice, and the paper way! Regards, Bill, still med free and logical H.

Canada has its share of, in your words, a “political cauldron of rot”. But when your comment is placed in the context of what I posted you about, which was to thank you for the link about “the family” in the U.S. circle of power, your context seems to imply that we have the same thing up here in Canada as they have on C Street in Washington. D.C.

You may not have intended to imply that, but if you did intend to imply that, I respectfully disagree. I think that historically Canada has done a much better job than the U.S. has done in separating church from state. I personally find the Wikipedia details about ‘the family” despicable and I do not think such a lobby group exists in Ottawa or Canada. I do not think that Canada’s successive string of Roman Catholic prime Ministers were guided by the Vatican or regional bishops nor by local priests, with or without prayer meetings. I do admit that various past leaders of the Reform Party, and the former Social Credit Party, and perhaps Stephen Harper and Stockwell Day today, are too close to the church of their choosing for my comfort. But you can chalk that up to my anti-church biases. Please correct me if I have my head in the sand, but I do not think we have anything in Canada that comes even close to the U.S. example of “the family” with its strong political and lobby influences. Best wishes, Equiz.

Vote Vote Vote

  Caught this over at the http://drudgereport.com Congress is buying this Gulfstream G550.  Not one mine you but (3) at a cost of $200 million.

You should see the interior!  Barney Frank must be lining up potential congressional pages now as we speak.

blackerton.posterous.com/

August 05, 2009 1:33 PM

ABC News’ Rick Klein reports:

A Republican senator is calling for the White House to suspend a new project that asks members of the public to flag “fishy” claims about President Obama’s health care plans, arguing that it raises privacy concerns and will serve to chill free speech.

Sen. John Cornyn, R-Texas, is sending a letter to the White House today asking the president to “cease this program immediately” — or to explain how Americans’ privacy will be protected if e-mails are forwarded to the White House as requested.

“I am not aware of any precedent for a President asking American citizens to report their fellow citizens to the White House for pure political speech that is deemed ‘fishy’ or otherwise inimical to the White House’s political interests,” Cornyn writes

“I can only imagine the level of justifiable outrage had your predecessor asked Americans to forward emails critical of his policies to the White House. I suspect that you would have been leading the charge in condemning such a program — and I would have been at your side denouncing such heavy-handed government action.”

Yesterday, White House director of new media Macon Phillips wrote a blog posting urging readers to flag questionable claims about health care proposals.

“There is a lot of disinformation about health insurance reform out there, spanning from control of personal finances to end of life care.  These rumors often travel just below the surface via chain emails or through casual conversation.  Since we can’t keep track of all of them here at the White House, we’re asking for your help. If you get an email or see something on the web about health insurance reform that seems fishy, send it to flag@whitehouse.gov.”

Cornyn specifically asks whether those who quote the president’s past statements — such as his 2003 statement that he was a “proponent” of single-payer care — qualifies as “disinformation.” He also asks what actions the White House would take against those engaging in “fishy” speech.

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I just noticed I have a Spannish keyboard….The ? is denoted as an E with an accent over it..the shift lock says Fix Maj

€€€€€€€€€€/………wow I got a Euro sign down there too

Now where the hell are the quotation marks ?

….wow….I just checked the chart….It went from 50 to 5….in the Mother of all Liquidations….a 10 Bagger in reverse….Now back to 30 !

Wow….I dont follow them…arent they a base Metal Play ^

HeyI got a new keyboard (My cat peed on my old one)….and I got no Question mark….where the hellis my question mark….it says its above the 6 but all I get is a ^

I got a nice 4 bedroom house with pool in Florida that I can let you have for $500,000. 

Maybe this guy will be my new GP?

Check it out.

I’m figuring AUY has another run in it and that is when I will sell. Unloaded some shares last week, rest will go shortly.

Been gone awhile-no news, no phone, no internet. Highly recommended for a recharge. But, quickly descending into the abyss of lunacy catching up. Sanity is only another escape away or the red pill???

….Selling it Tomorrow….What to Buy ^

…..all ears !

hey good  buddy,  i am only joshing with irish. i am only holding it until opportune time for tax loss purposes/tax trade off with some major profits…..

I’m sure they will be labeled a part of a ‘terrorist organization‘ so it can all be legal!  Everyone should be happy with ObamaCare!

WaPo: Good Bank, Bad Bank for Fannie and Freddie?

by CalculatedRisk on 8/05/2009 08:09:00 PM

From Zachary A. Goldfarb and David Cho at the WaPo: Administration Considers Splitting Fannie Mae, Freddie Mac

The Obama administration launched a broad government effort this week to overhaul mortgage giants Fannie Mae and Freddie Mac and is considering splitting the companies and putting their troubled assets in a new federally backed corporation, administration officials said.
…
The companies’ regulator … confirmed that the administration is discussing the “good bank bad bank” model.

There are no details on a proposed structure.

Well…. what if they found the Holy Grail?  

http://quotes.ino.com/chart/?s=NYBOT_DX&v=w

WTF? Got massacreed holding that pig. I would’nt touch it if they claimed to uncover the Ark Of The Covenant.

According to 5 U.S.C. § 552a, United States agencies, including the Executive Office of the President shall, “maintain no record describing how any individual exercises rights guaranteed by the First Amendment unless expressly authorized by statute or by the individual about whom the record is maintained or unless pertinent to and within the scope of an authorized law enforcement activity.”