Thoughts on Markets

Thursday, October 16, 2008

Familiar Pattern - The Boyz Are Still At It!

As you examine this familiar pattern, does it make your blood boil? It does mine. The boyz are back with a vengeance. It just goes to prove that we have no markets. There is only intervention on behalf of bullion banks, central banks, and governments.

Once again, the strength of the interventionists is displayed in spades against us. We, as citizens and investors are plagued by such actions. It is an actual form of theft. Those in power are robbing us of our investment dollars, because they are trembling with fear of citizens owning and using precious metals instead of their paper currencies. Again, we must ask, as did King David, "How long O Lord?" Since He is in absolute control, it is correct to bow before Him with such a prayer.

Anthony Sutton wrote the book The War on Gold decades ago. It describes the governmental war against gold money from an earlier time. The strategy remains the same, but the tactics are a bit more sophisticated now with all the paper metals of the futures markets.

It is absolutely amazing that the physical price of gold is so low with the current great demand. Buy the way, physical gold at these prices, if it can be found, is the biggest bargain in the market today. Here is more on this from Casey's Daily Resource Plus:

And Dan Norcini, writing on, says that all of the recent gold selling is “FORCED liquidation on account of redemption requests. That has NOTHING TO DO with the real physical gold market where demand remains at unprecedented levels, levels so high that it is producing serious shortages of bullion for would-be buyers. This is what is producing the increasing dichotomy between the Comex and the real gold market. I would go as far as saying that we are for all practical purposes seeing a BLACK MARKET in gold beginning to develop.”

"How long these guys can keep gold and silver suppressed in the face of massive investment demand is unknowable. But as long as the 50-day moving averages for both gold and silver can be defended, the tech funds (who are the ones that always drive the market prices higher by going long on the Comex in the Non-Commercial category) will keep their wallets firmly closed. But the bifurcation of these two markets (paper price vs. physical price) is now the talk of the town. I'm sure that the boyz are trying to prevent the metal prices from rising so that investors can't see the exit signs that would most certainly save their lives if the lights were allowed to be turned on. It looks like they want everyone, and everything, to go down with the fiat currency ship. Unfortunately for them, they won't be able to fool "all of the people, all of the time" steal a line from Abe Lincoln"

We must sincerely ask ourselves the question rhetorically posed in the Daily Pfennig today:

Do we as investors and Capitalists want Gov't. ownership in banks? Did anyone ask us? Because had they asked me I would have said NO! Do we want the Gov't. determining what banks win or lose? Do we want Gov't. directing banks on who they make loans to? Can't you see members of Congress pushing to get loans in their home voting districts? And, once the Gov't is in the door, banks will NOT be able to turn their backs on them, for fear of the Gov't. pulling out the rug on the bailout!"
I hope that your answers were NO! as the Daily Pfennig said. The last line in the paragraph reveals the danger. Every benefit bestowed on businesses or citizens comes with strings of control by the government. That is the dire consequence of having the government as a false messiah. The actions of the Federal Reserve, our Federal Government, and the rest of the world are signaling the end of the last vestiges of free market capitalism for the world. We are now totally socialistic and moving toward totalitarianism.

Retail sales dropped another 1.2% during September (third month in a row). This is needed for the recession to be cured by correcting the malinvestments of the "easy dollar" days, but it is bad for the current economy. The books will be balanced whether there is government intervention or not. However, the intervention serves, not to correct, but to delay the inevitable.

More statistics from the Daily Pfennig:

"The volatile Empire manufacturing data for October fell a whopping 24.6. This number has been very volatile in the past, but it is an indicator of how the manufacturing sector in the NY area is doing. This drop put the index at a record low as the global credit freeze prompted businesses to pull back. Every component, other than prices, was negative for the month."

From BBC News, Vienna:

Austria witnesses new gold rush

By Bethany Bell
BBC News, Vienna

There's a new gold rush.

Read the full article HERE

Gold remains real money and when push comes to shove, it will be the safe refuge that many will seek. Then, the price will rise substantially. Until then, we must be patient and depend upon God's timing. It is our Father's world which includes each of us and all things great and small. He controls all according to His independent will and provides all things and actions in full accord with His gracious providence.

We must daily pray that He will be long suffering with us and our rebellion. It is time for His people, who are called by His name, to humble themselves, repent, return to His law, and look to Him the true Messiah: Jesus Christ our Lord. We must recognize that if He is not our Lord, He is not our Savior. We either live under His law or have chaos. Choose, today, who you will serve. For me and my house, we will serve the Lord.

Best to each, Doug


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