Enjoy Some Humor - Gold Up

Gold is moving higher today. You can see the red dot at 940.30 on the graph for the price now. The red circle emphasizes that July 29th was a down day, but both the 30th and early today are showing up days. The miners are following.
The industrials seem to be topping out as indicated by the broken black trend line. Not, too, that the trend lines on the bottom of the graph are showing that volume is falling as the price tops out. The red circle shows that the MACD is topping as well. Thus, from a technical perspective, we would expect to see either a period of consolidation or a falling off of the DOW in the immediate future.
The U. S. Dollar is still in trouble. This should not change in the foreseeable future. The trend is down. I circled the last three days on the graph which shows two up and yesterday down. The MACD is turning up which is bullish for the near term.

From Gary North:

Watch Bernanke Go into Panic Mode Over Congressman Ron Paul's Bill to Audit the Federal Reserve System

See it HERE.

A humor with a bit of truth from the mid east HERE. There is a struggle there, but it has been long term.

From TownHall.com:

Obamacare: Not Waterloo, Just a Tactical Retreat

WASHINGTON -- Yesterday, Barack Obama was God. Today, he's fallen from grace, the magic gone, his health care reform dead. If you believed the first idiocy -- and half the mainstream media did -- you'll believe the second. Don't believe either.

Conventional wisdom always makes straight-line projections. They are always wrong. Yes, Obama's aura has diminished, in part because of overweening overexposure. But by year's end he will emerge with something he can call health care reform. The Democrats in Congress will pass it because they must. Otherwise, they'll have slain their own savior in his first year in office.

But that bill will look nothing like the massive reform Obama originally intended. The beginning of the retreat was signaled by Obama's curious reference -- made five times -- to "health-insurance reform" in his July 22 news conference. Read it HERE.

It looks as though Obama Care has taken a hit. The citizens were solidly against it, but Washington will not give up. They are bound and determined to control everything we are and do.

For a funny commentary on politicians click HERE.

We need some humor every day to help us enjoy our life in the Lord. Stay focused on Him and live in concert with His word. One of the major demands of God is for us to join in corporate worship each Lord's Day. What will you be doing this Sunday? Who is Jesus Christ to you?

Best to each, Doug

The Democrats Want Your Kids

There is a hint of a reverse head and shoulders formation (Note to short purple lines) which would be a positive indicator. There is a small purple dot at the present price of gold today. Also, observe the saw teeth formation across the two months. Will this pattern be repeated now? That is the question which will be revealed to us as the market moves onward. Tomorrow is Friday and very often it is a weird trading day. Gold has moved up to 933.60 now.

If you were able to follow my lead and buy DROOY @ 7.10-7.12 range yesterday, you are up early today. In fact, you could have sold, if you wanted to, for about 7.45+ at the opening. DROOY remains above the 200 day moving average which is barely visible at the bottom of the graph just below today's stock candle stick. I got on the market too late, but am satisfied to own more DROOY at yesterday's outstanding buying range. The MACD seems to be turning upward this morning. It is early in the market, so anything can happen.

From MineWeb.com:

World's 100 hottest gold stocks - selection has been critical

Gold stocks face stiff competition, mainly from base metal miners, but pricing patterns show distinct selection among gold diggers, developers and explorers.

Author: Barry Sergeant
Posted: Thursday , 30 Jul 2009

JOHANNESBURG -

Seen as a global grouping, mining stocks touched nine-month highs on 3 June, before screeching down to a trough on 23 June, and then rising sharply to make 10-month highs on Monday this week, before taking a breather that has continued across Wednesday, particularly among Chinese mining stocks. On Tuesday, Chinese stockmarkets had made yet another series of 12-month highs. Read it HERE.

From MineWeb.com:

DIFFERENT COMPANY'

Hecla reports record silver production for 2Q - loss minimised

Reduction of debt and strong cash flow have transformed U.S. silver miner Hecla into "a different company that it was six months ago," says CEO Phil Baker.

Author: Dorothy Kosich
Posted: Thursday , 30 Jul 2009

RENO, NV -

Idaho's Hecla Mining Wednesday reported record quarterly silver production of 3 million ounces for the second quarter of this year, a 24% increase over the same period a year ago.

However, second quarter financial result showed a loss of $900,000, compared to a net loss of $44 million or negative 35-cents per share for the second-quarter 2008.

For the first half of this year, Hecla reported a net income of $2.99 million or 1-cent per share, a substantial improvement over the net loss of $32.31 million or negative 26-cents per share reported for the first half of last year. Read it HERE.

That sounds very good for one of my core stock holdings. Hecla seems to be a very sound company with great potential.

From MineWeb.com:

China: world's most demanded big mining stocks

Amid today's sharp profit taking in China's bubble-like equity markets, runaway Chinese mining stocks take a bit of a beating.

Author: By Barry Sergeant
Posted: Wednesday , 29 Jul 2009

JOHANNESBURG - -

The Shanghai Composite index took a 5% beating, by the close, on Wednesday, after contracting by as much as 7.7% intra-day, on fears that China's central bank may tighten its lending policies, motivated, it has been speculated, by the need to rein in bubble-like conditions in the country's stockmarkets. Since mid-July, in particular, the levels of Chinese stock indices have exploded, making fresh 12-month highs hour after hour during each ensuing trading session. Read it HERE.

From TownHall.com:

The Democrats Want Your Kids

by Ashley Herzog

No, really. If you think I’m being hyperbolic, you need to read an article in the latest issue of Time magazine, titled “Summer School: What? No More Vacations?” If Obama’s Education Secretary Arne Duncan has his way, your kids will be in government schools eight hours a day, twelve months a year.

Liberals will no doubt portray this as another altruistic “Save the Children” plan, as well as a taxpayer-funded babysitting service for low-income women and moms who have better things to do than raise their own kids. (“Mom isn't waiting at home at 2:30 with a peanut-butter-and-jelly sandwich. That just doesn't happen in many American families anymore,” Duncan says in the article.) They’ll recite the pointless factoid that summer vacations are an outdated product of America’s farming culture. Read the article HERE.

This is a very interesting report. Governments have always been at war with families, particularly Christian families. The family is God's ordained basic unit in society. Its purpose is to raise children to carry on kingdom work for Jesus Christ, THE King. Whoever controls the children, controls the future. That is the source of governmental intervention into families and the motivation for the control of children. The other attack upon the family is in the inheritance tax. As the government steals a major portion of the capital built up by the family for the future, it deprives the succeeding generations of the capital to continue the kingdom work. Thus, all governments want to capture the children and seize the capital. Governments see the family as a competition for power.

I understand that Obama is planning a "voluntary" children's training corps. This is just another attack upon the family. It is an attempt to further the behavior modification which is prevalent in the mandatory government schools. The Federal Constitution makes no provision for the federal government to be in education. Governments want to have complete control over all citizens and attempts to make them virtual slaves of the state.

Beware of all such programs.

Best, Doug

Speak softly and carry a big stick against whom?

My email alert on VGZ yesterday should have put you on track for potential buys. I bought some at 1.64 and 1.63. These are good prices, but we may reach even better prices. The graph read circles show greatly reduced volume and MACD down turn, both mean that from a technical perspective we should expect lower prices in the immediate future. Anything in the 1.50 area, I would consider and excellent buying range.

Hecla Mining is still well above its 200 day moving average. However, the red circles are showing that prices are likely to be lower in the near future. I consider below 3.00 a good buying range. Below 2.60 would be outstanding.
Harmony Gold showed two gaps downward about the beginning of July. The second one was covered on July 20th. The first one (highest red circle) has yet to be covered. One would expect it to be covered before long. A breakthrough above about 9.75 would put HMY on track to fill in the first gap. Around 8.50 would be an outstanding buying range. Indications, as with the other graphs are for lower prices in the immediate future.
DRD Gold is well above its 200 day moving average, but is showing signs of weakness in line with the others. Any price below 7.25 would appear to be an outstanding buy. This one is very near the best buying area we have seen in some time.
The price of the precious metals here in America is dependent to a great extent on the purchasing power of the dollar. The dollar has strengthened a bit recently and move the metals down. Thus, we should expect lower prices for a time. Gold is 929.50 and silver is 13.37 with both on down ticks.

From TownHall.com:

Exploiting Public Ignorance

by Walter E. Williams

How can political commentators, politicians and academics get away with statements like "Reagan budget deficits," "Clinton budget surplus," "Bush budget deficits" or "Obama's tax increases"? The only answer is that they, or the people who believe such statements, are ignorant, conniving or just plain stupid. Article I, Section 7 of the U.S. Constitution reads: "All bills for raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with amendments as on other Bills." A president has no power to raise or lower taxes. He can propose tax measures or veto them but since Congress can ignore presidential proposals and override a presidential veto, it has the ultimate taxing power. The same principle applies to spending. A president cannot spend a dime that Congress does not first appropriate. As such, presidents cannot be held responsible for budget deficits or surpluses. That means that credit for a budget surplus or blame for budget deficits rests on the congressional majority at the time. Read the article HERE.

The masses of American citizenry depends upon the TV entertainers who think of themselves as newscasters. They are actually news interpreters who slant the news according to the presuppositions of the bosses of the media. Therefore, only that which is in concert with the bosses bias is reported and that is slanted in direction of the bias to a great extent. Thus, not only the government schools, but the broad media is doing a great job of dumbing down Americans. Many are totally unaware of this and just accept everything reported as truth without discerning the truth.

From TownHall.com:

Bully Boys: A Brief History of White House Thuggery

by Michelle Malkin

Six months into the Obama administration, it should now be clear to all Americans: Hope and Change came to the White House wrapped in brass knuckles.

Ask the Congressional Budget Office. Last week, President Obama spilled the beans on the "Today Show" that he had met with CBO Director Douglas Elmendorf -- just as the number crunchers were casting ruinous doubt on White House cost-saving claims. Yes, question the timing.

The CBO is supposed to be a neutral scorekeeper -- not a water boy for the White House. But when the meeting failed to stop the CBO from issuing more analysis undercutting the health care savings claims, Obama's budget director Peter Orszag played the heavy. Read it HERE.

From TownHall.com:

Disaster in the Making?

by Thomas Sowell

After many a disappointment with someone, and especially after a disaster, we may be able to look back at numerous clues that should have warned us that the person we trusted did not deserve our trust.

When that person is the President of the United States, the potential for disaster is virtually unlimited.

Many people are rightly worried about what this administration's reckless spending will do to the economy in our time and to our children and grandchildren, to whom a staggering national debt will be passed on. But if the worst that Barack Obama does is ruin the economy, I will breathe a sigh of relief. Read it HERE.

Theodore Roosevelt used his "Speak softly and carry a big stick" policy internationally. Today, we are seeing a similar approach used against Americans. Thank the Lord that some of our states are beginning to intercede between the citizens of the states and the federal government. This is their job under constitutions of the states and the Constitution of These United States. This is absolutely necessary if we are to avoid another confrontation with the present King George. Without this interposition, citizens are at the mercy of the Federal Government which is bullying all citizens and states.

Tongue in check fun from BrassCheck.com: See the video HERE.

From MarketWatch.com:

Jul 29, 2009, 9:26 a.m. EST

Gold falls for second day as oil declines, dollar strengthens

NEW YORK (MarketWatch) -- Gold futures fell Wednesday for a second session, trading below $940 an ounce as a stronger dollar and declining oil prices continued to reduce the metal's appeal as a hedge against a weaker currency and potential inflation.

Also weighing on gold, holdings in the biggest gold exchange-traded fund fell again, indicating weak investment demand for the metal. Crude oil fell for a second day after an industry group reported U.S. inventories rose last week and as data showed June orders for U.S.-made durable goods dropped the most since January. Read it HERE.

From MineWeb.com:

South African gold miners reach wage settlement with mining unions

Wednesday , 29 Jul 2009

The gold mining companies, which are members of the South African Chamber of Mines, AngloGold Ashanti, Gold Fields, Harmony Gold and Rand Uranium signed the 2009 wage agreements with unions representing gold sector employees (National Union of Mineworkers, Solidarity and UASA) bringing to conclusion the 2009 wage negotiations for the Chamber of Mines gold mining sector.

As part of the agreement, the companies will increase salaries for the entry level employees by 10.5%, and by 10% for the other lower category employees. Salaries for Miners and Artisans and Officials will increase by 9%. Read it HERE.

This is good news for our South African miners, such as, DROOY and HMY.

From TodaysFinancialNews.com:

Quote of the Day:

"We are developing our own equivalent of the Chinese state sector through Obama's takeover of General Motors and his insistence on keeping banks that took TARP money on a tight leash. By controlling bank lending (and refusing to let most banks repay the TARP loans) Obama is replicating the Chinese experience. Indeed, as he forces banks to convert the preferred stock he made them give the government to common (and therefore voting) stock, he hastens the day of federal control of the banks and, through them, of the economy."

-- Dick Morris, Newsmax.com

Equivalent of the communistic Chinese state sector. That is scary! Let's pray that God will not long tolerate another Tower of Babel. Pray that He will raise up statesmen at the state level who will shoulder their God-given responsibility of protecting the life, liberty, and property of the citizens. This must daily be our prayer for a lawful, peaceful solution to the present situation.

Best to each, Doug

Precious Metals Hit Again Big Time

Both gold and silver faced the hammer, again, on NY opening. The boyz gave us a breather, but are back in business BIG TIME! This is not normal market activity. Think about it. An attack on the metals at almost identical times? Both creamed early in NY activity?


Our miners have moved lower following the paper attack on the metals. Here are some: AUY 9.04; CEF 11.93; DROOY 7.50; GLD 92.78; HL 3.07; HMY 8.66; SLW 9.12; SSRI 19.74, and VGZ 1.72. DROOY, HL, HMY, and VGZ are in good buying ranges for me. I may have to pick up a few more shares.

The TRI-Continental, closed in mutual fund, has moved above 10 this morning as some folks are climbing on board. I have limit orders in at 9.89.

The DOW is off about 16 early in the day.

Gold is 944.80 and silver 13.89 with both on down ticks.

The market is likely to be taking a breather at present.

Of course, we all realize that it is in God's hands. He even uses the boyz to accomplish His will. That is fine we me, because I rest in peace with Him. I leave the driving to Him and simply am amazed at His long suffering with our nation. We must remember that His long suffering has an end for those nations whose god is not the Lord. His blessings flow to the nations whose God is the Lord.

Best to each, Doug

Bull Rally in Bear Mkt - How long will it last?

Silver is stayed around 14 today and seems to be enjoying more strength as the dollar continues to fade.
Gold traded around the 954 level most of the day, but has dropped off a bit tonight. The miners are holding very well, too.
The following is a long term graph of gold from The-Privateer.com. I am sorry that the date and prices are not as clear as I would like. However, the movement of the price of gold is clear in the graph and the reverse head and shoulders (Red outlined Yellow filled circles) are clear. This is a strong positive technical formation.

Richard Russell (DowTheoryLetters.com) is quite optimistic about the extended bear market rally. However, he says to use caution in investing. The Dow Theory confirmed the rally just last week. He recommends Tri Continental Corp (a closed in mutual fund traded as a stock) which is selling at a 17+% discount. Here is a graph of TY. Notice the strong upward trough of trading since early June. The 50 day moving average appears to be moving to cross upward through the 200 day average (noted by the red circle) which is a strong indication of more upward momentum. The move did seem to top out in today's trading which may indicate an immediate pull back from the very rapid run up. This could mean that we will see a good buying opportunity tomorrow. The MACD in the lower section of the graph is a strong showing, as well.
The big question is how long will it last. No one knows, but one can see in the following graph of the Diamonds (which reflect the NYSE) that the upward sprint may be due for a rest. They are overbought as shown in the following off of the rise in prices (the upper black trend line) and lower volume (the upper red circle) during the last two days. However, the MACD (lower red circle) remains very strong. If you are into options, calls could be considered on the DIA.
I expect to see much exciting action this week in the markets. It will be interesting to see if some of the broad market stocks are going to take a short breather before continuing their upward move. We will have to follow the market to see what it says.

I will be strongly considering buying some of the TY tomorrow or during the rest of this week. The graph is very encouraging and should turn some good profit if I can buy at a reasonable price below 10.

I am not a seller of mining shares as the dollar seems destined to less value for the foreseeable future.

Obama Care is an abomination and each of us should urge our congressmen and senators to turn it down completely. If you have not viewed some of the information I have been sending out on it, be sure you do. It will be very costly and a means of rationing of health care which will greatly reduce your access to health care and force you into the national program with all the illegal aliens. It is interesting that the congress and the president will not have to join, but we will be forced into it.

Praise the Lord daily for His blessing and we should be seeking His guidance for a national repentance and return to His law.

Best to each, Doug

Precious Metals Higher - More on the Great American Bubble Machine

Nothing terribly exciting on the precious metals, except for the fact that they are trading on a new plateau above the immediate past. The bullion banks still have the deep pockets to shut out the free market and they will do it again. They may be planning to act before the new regulations that are floating about become fact. However, they are likely to be able to avoid the regulation after or even kill them before they are passed. Do not underestimate the power of these banks and Goldman Sachs. Pay particular attention to the video referenced below adding more insight into "The Great American Bubble Machine."

The miners seem to be tracing a large lop sided "W" which normally means bullish follow on action. On Monday there was a set back, but over the last two days indicated with the red circle, the miners seem to be working toward restoring the bullish move. It would take a strong upward follow through to restore the up trend, and the market will tell us in good time. That is, its time. I have checked several of the graphs for the individual miners and the traces are very similar to that of the GDX. Here are the current prices of some >> AUY 9.67; CEF 11.86; DROOY 8.26; GLD 93.74; HL 3.14; HMY 9.56; SLW 9.35; SSRI 20.07; and VGZ 1.83. They are all up a bit this morning during the first hour of trading.

From MineWeb.com:

YEAR ON YEAR GOLD INVESTMENT POSITIVE

WGC study shows gold outperforms other traditional inflation hedges

The Word Gold Council has released its latest Gold Investment Digest and a report on gold as an inflation hedge.

Author: Lawrence Williams
Posted: Wednesday , 22 Jul 2009

LONDON -

The World Gold Council, in its regular quarterly appraisal of the gold market, noted that the yellow metal increased modestly in the second quarter, supported by, among other things, ongoing inflation fears. Traditionally an inflation hedge, gold was sought by investors who had growing concerns about central bank's exit strategies and the implications of a reversal in quantitative easing measu

On gold's inflation hedge credentials, Natalie Dempster, Head of Investment, North America, World Gold Council commented:

"Fears of future inflation drove investor interest as seen by the continued demand for the ETFs during the quarter. Traditionally, gold has been an effective inflation hedge, and as our recent study shows, also performs well during low to medium inflationary environments." Read it HERE.

The precious metals have historically been the preferred inflation hedge, and have proven themselves over and over again. Of this there can be no doubt in any thinking mind. The actual metals are a great means of preserving purchasing power as we face unbacked FIAT paper currencies. While paper currencies of the past have become worthless, the precious metals always have a value.

From MineWeb.com:

GOLD MARKET

Gold holding steady but ETF holdings decline

Traders are positive we could see another move toward $1000 in the medium term.

Posted: Thursday , 23 Jul 2009

TOKYO (Reuters) -

Gold steadied above $950 per ounce on Thursday as the dollar stayed near a seven-week low against a basket of currencies marked the previous day, maintaining bullion's allure as an alternative asset.

Earlier this month economic worries encouraged investors to buy the dollar and U.S. Treasuries instead of gold, dragging the precious metal's prices down toward $900.

Now with signs of economic stability, market players' appetite for other assets including gold and equities is returning, traders said.

"Investors have a feeling that equity markets are on course for a recovery from recent lows... They are less risk-averse than before," said Dick Poon, manager of precious metals at Heraeus Ltd in Hong Kong.

"Now that they are buying stocks again, their focus is back on commodities markets as well," he said. Read it HERE.

For the immediate time being, this article may be a bit optimistic. The unwinding of all of the trash in the mortgages must continue until the books are again balanced. However, there is inflation waiting in the wings off stage for it to spring into the center of the stage. I believe that it will not be too long waiting. There is just too much liquidity that must flow somewhere, and currently it seems to have been going into the general stock market. Of course, much of it is being held in "reserve" by the banks, too. How long can the banks sit on that without rushing to lend it for profit?

From MineWeb.com:

Saudi retail gold sales plunge

Higher prices and fewer visitors force sales down 30%

Author: Amena Bakr
Posted: Wednesday , 22 Jul 2009

DUBAI -

(Reuters) - The volume of gold jewellery sales in Saudi Arabia has fallen as much as 30% in the first six months of the year, as the economic crisis and high gold prices deter buyers, gold retailers said on Wednesday.

Gold has risen around 39% to trade at over $945 an ounce from a low near $680 in October as investors buy the metal as a safe haven in a time of economic uncertainty. Read it HERE.

I would expect that the price of jewelry would be a bit high enough to begin to curtail sales. I have never thought of jewelry as a good store of value. There is too much cost in the manufacturing and marketing of it. The precious metals, in the form of coins, are a more efficient store of purchasing power than jewelry. Of course, there are significant special pieces of jewelry which have maintained value, and there are rare precious metal coins which have more than done the same as opposed to bullion or bullion coins.

From George Will on TownHall.com:

Cold Shoulder to Climate 'Urgency'

WASHINGTON -- Unfortunately, China's president had to dash home to suppress ethnic riots. Had he stayed in Italy at the recent G-8 summit, he could have continued the Herculean task of disabusing Barack Obama of his amazingly durable belief, shared by the U.S. Congress, that China -- and India, Brazil, Mexico and other developing nations -- will sacrifice their modernization on the altar of climate change. China has a more pressing agenda, and not even suppressing riots tops the list. Read it HERE.

More on the hoax of global climate change caused by man. I am glad to see that China is against it while our president and environmentalist are pushing it. However, I would suspect that China is opposed for selfish reasons. China is beginning to flex its international muscle to become more of a global influence.

Comments on the new "national unhealthy care" proposal from The Daily Pfennig:

"I have a friend who has been the leading doctor in the attempt to discredit the National Health Care Plan... I heard last night that the President said that if we didn't implement National Health Care we wouldn't be able to deal with our deficits...That's a bunch of malarkey! Here's my good friend, Doc. Dave..

So... You can side with the President, speaker Pelosi, and others when they try to jam this down the throats of Americans... Or you can side with a doctor that has fought against this from the beginning because of the inhumane way it treats American citizens in need of health care!"

Folks, the line in the sand has been drawn. We, Texans understand that particular phrase. The government is moving to force down the citizens throat the most abominable health care program ever conceived against the health of man. It will be disastrous and extremely costly. As many doctors have retired early or left the health industry over the present government plans, many more will see the injustice and rebel against the new travesty. Hopefully, we can put sufficient pressure upon the Congress to stop this at the starting blocks. However, it will take a great public protest to have any impact, because we have a government which ignored the Constitution and pushes for ever increasing power. I urge you to make your wishes known to Congress. Further, it is important to push the governors of the every state to demand that the Federal Government back off from getting into unconstitutional areas and into the sovereign states territories.

From Bloomberg.com:

Fed Has Become ‘Embroiled’ in Politics, Poole Says

By Vincent Del Giudice and Max Raskin

July 22 (Bloomberg) -- The Federal Reserve is “embroiled” in politics and has “stretched beyond reason” its authority to make loans, said William Poole, who served as president of the St. Louis Fed from 1998 to 2008.

“ I don’t think independent can mean the Fed can do whatever it wants under any circumstance,” Poole, a senior economic adviser to Palo Alto, California-based Merk Investments LLC, said in an interview today on Bloomberg Radio. “The Fed has chosen to make loans to certain firms and not others.”Read it HERE.

Over the last few months, the Federal Reserve has taken much greater power than was ever envisioned by many. It is one of the driving forces behind the present financial chaos along with Goldman Sachs. I imagine that both are sharing the bed in all of the fiascos which are causing great pain among our citizenry.

Lastly and very important is this from the reporter, Matt Taibbi, for Rolling Stone Magazine who gave us the "Great American Bubble Machine." This video entitled "Government by Goldman Sachs" is very important. Each of you should listen to this video. By the way, I hope that you know that you can log on to it through your browser and then minimize it and go about your work listening to the presentation. It is a series of five separate sections. We must be fully informed by what the government and big bankers do. All of this impacts our lives and investments. You can view it HERE.

I strongly urge each of you to take these matters and present them to our Lord and seek His intervention. Of course, for Him to bless us, we must repent as a nation and turn back to His law for our land. This repentance must be at the individual and family level initially. Then it must grow to our churches which have watched from afar and "supported" the false concept of the separation of church and state while our nation has turned away from God. In fact, they have stood aside as Jesus Christ and all reference to Him has been forbidden in our schools, government property, and monuments which before gave recognition to the providence of God in the founding of our nation. The prophets of all never hesitated to shake their fists in the face of kings and warned them, "Thus, saith the Lord!" Churches must again awaken and speak out to the evils of our governments and prepare the people by giving them sound education into the will of God by presenting the whole word of God.

Best to each, Doug

Begins with T. Sowell and Ends with Walter E Williams

It is hard to imagine a more stupid or more dangerous way of making a decision than by putting those decisions in the hands of people who pay no price for being wrong. - Thomas Sowell (as reported in Casey's Daily Resource Plus)

There was no confirmation of the DJI highs by the Transportation Index, so the Dow Theory says that the overall bear trend of the general market is still in place. There was a near confirmation on Monday, but there is no reward for close except in Horseshoes.

Well the boyz thought we were having too much fun, so they obviously stepped in again just before the midway of Hong Kong trading. This was easy for them, because of the light volume of trading in Hong Kong. Also, we should note the number times that silver has attacked the 13.45 barrier without success in moving above. That, too, is suspicious.
The gold graph shows very similar action; however, the boyz seemed to be concentrating most actitivity on silver. Note, too here, how gold has attacked the 947 level without success. More suspicious activity.
Our miners have had seven up days in succession, but have hit a sandy spot in early trading today. Possible buying opportunities?? Most are down! Here are some of the prices >> AUY 9.46; CEF 11.78; DROOY 8.09; GLD 93.04; HL 3.03; HMY 9.27; SLW 8.72; SSRI 19.24, and VGZ 1.77. DROOY at or below 8.00; HL at or below 3.00; HMY at or below 9.30, and VGZ at or below 1.75 would in my opinion be good buys. I may have to pick up some more.
From Financial Time Asia:

China to deploy foreign reserves

By Jamil Anderlini in Beijing

Published: July 21 2009 19:09 | Last updated: July 21 2009 19:09

Beijing will use its foreign exchange reserves, the largest in the world, to support and accelerate overseas expansion and acquisitions by Chinese companies, Wen Jiabao, the country’s premier, said in comments published on Tuesday.

“We should hasten the implementation of our ‘going out’ strategy and combine the utilisation of foreign exchange reserves with the ‘going out’ of our enterprises,” he told Chinese diplomats late on Monday. Read it HERE.

Not new news unless, as is likely, the Chinese are expanding their use of foreign; that is dollar reserves. Thus, are broadcast of what China has been and continues to do. They are buying the world from under the western governments. That can soon be seen as a threat to the West. However, they must get rid of their ever worthless dollars as rapidly as they can. What better way could it be done?

More on this from ResourceInvestor.com:

Race for rare metals – And China is winning!

Sam Kiri, Proactive Investor

Published 7/16/2009

In the resource sector, China has already made its mark not only as one of the largest consumers but also as one of the largest accumulators of commodities. Chinese policy makers have ushered in an environment in which state enterprises, as well as private companies, are seeking to secure resource supplies around the world. It was against this backdrop that China Investment Corporation (CIC), a Sovereign Wealth Fund, acquired some 17% of Teck Cominco.

Copper is not the only metal China seeks to control and Teck is not the only acquisition China has made in the resource sector. In what could be a further indication of China’s tightening grip on the supply side, the China Non-Ferrous Metals Mining (Group) Co., Ltd. (CNMC) recently acquired a controlling interest in the Australian rare earth project developer Lynas Corporation Ltd. (Lynas). The full transaction, comprising a combination of equity, debt and loan guarantees, is valued at US$366 million and provides a glimpse of what rare metal companies are really worth. Read it HERE.

From Bloomberg.com:

Jefferson County, Alabama, to Put One-Third of Workers on Leave

By Kathleen Edwards

July 21 (Bloomberg) -- Jefferson County, Alabama, the state’s most-populous county, will run out of money and plans on Aug. 1 to put as many as 1,200 employees on unpaid leave, the president of the county commission said.

The six-week furlough of more than one-third of the county’s workforce will allow enough time for the Legislature or the state Supreme Court to reinstate an occupational tax that was struck down on constitutional grounds, commission president Bettye Fine Collins said today.

Jefferson County, home to Birmingham, has been teetering on the brink of bankruptcy since last year when interest rates on $3 billion of the county’s sewer debt soared as high as 10 percent amid Wall Street’s credit crunch. The crisis intensified in June when a circuit court prohibited the county from spending the $75 million annually generated by the tax. Read it HERE.

Thus, not only California is in financial trouble. Here is another and there will be more.

From Walter E Williams in TownHall.com:

The Racism of Diversity

by Walter E. Williams

The U.S. Naval Academy's PowerPoint display explains diversity by saying, "Diversity is all the different characteristics and attributes of individual sailors and civilians which enhance the mission readiness of the Navy," adding that: "Diversity is more than equal opportunity, race, gender or religion. Diversity is the understanding of how each of us brings different skills, talents and experiences to the fight -- and valuing those differences. Leveraging diversity creates an environment of excellence and continuous improvement to remove artificial achievement barriers and value the contribution of all participants." Admiral Gary Roughead, chief of Naval Operations, says that "diversity is the No. 1 priority" at the academy.

Diversity at the Naval Academy, as at most academic institutions, is not about equal opportunity but a race and sex spoils system to achieve what the Navy brass see as a pleasing race and sex mix. They accomplish that vision by the removal of "artificial achievement barriers." Let's go over what the Naval Academy sees as an artificial achievement barrier. A black candidate with B and C grades, with no particular leadership qualities, and 500 on both portions of the SAT, is virtually guaranteed admittance. A white student, who's not an athlete, with such scores is deemed not qualified. Read it HERE.

Therefore, we are no longer interested in quality, but "diversity" which will bring down academic achievement levels here as it has done in government schools across our nation. Over all, this should be called, "dumbing down of America." That is without doubt the goal of such programs.

Gold is down to 947 and silver 13.50 with both on down ticks. Guess the boyz are still at it or have done their "good deeds" for the day.

Keep your focus on King Jesus and work to further His kingdom which is the duty of all.

Best, Doug

Dollar Down - Metals Still Strong

From any angle you observe, this dollar chart is a mess. Unless the Federal Reserve begins buying dollars in a big way, the dollar will continue on the downward path. The only thing good about the chart is that the dollar index has been in a narrow trading range from about 78 to 81 for the last few days. However, yesterday was a strong downward move.

Silver is on a run now after being capped a bit on the NY opening.
Gold is still above 950, but is showing early signs of a downward move. The boyz have been letting the metals run this week. Will they continue? They have a very large short position in the metals, as well as in the long position.
In the meantime our miners are holding well. Here are some: AUY 9.79; DROOY 8.19; GLD 83.27; HL 3.11; HMY 9.45; SLW 9.13; SSRI 19.653; VGZ 1.87. The prices are mixed today, and it very early in NY trading. We will have to see what unfolds as the day moves on.

From Global Investor:

Gold rallies above $950

Weaker dollar, better U.S. corporate earnings boost metal's appeal

Frank Tang

New York — Reuters Last updated on Monday, Jul. 20, 2009

Gold (GC-FT949.901.100.12%) futures rallied above $950 (U.S.) an ounce Monday, reaching the highest level in more than a month, as a sharp dollar decline and better U.S. corporate earnings boosted bullion's inflation-hedge appeal.

Commodities in general benefited from a sharper appetite for risk, dealers said, with world stocks rallying as investors were tempted back into higher-yielding assets.

A brighter outlook for the financial sector amid economic optimism has underpinned the gold market this week. The metal, viewed as an inflation hedge, has been weighed down by the prospect of deflation, or a downward spiral in prices. Read it HERE.

Inflation is on the way, but I wonder if we will see it before next year. Of course, we may be having some inflation in the stock markets. The loose currencies need to find a home. Though it seems to be creeping into general prices, we are not seeing a vast increase. Thankfully, gasoline has dropped a bit, too.

From Bloomberg:

India Gold Traders Stockpiling Bullion as Prices Rise

y Thomas Kutty Abraham

July 20 (Bloomberg) -- Gold traders in India, the world’s biggest consumer, are stockpiling bullion to meet festival and wedding demand amid the highest price in more than six weeks, the World Gold Council said today.

Traders expect prices to stay buoyant before Diwali, the Festival of Light, and the wedding season, Ajay Mitra, managing director at the producer-funded group in India, said in an e- mailed statement today.Read it HERE.

Do they see higher prices in the offing? It would certainly be wise for them to stockpile when the prices are favorable.

From Bloomberg:

U.S. Rescue May Reach $23.7 Trillion, Barofsky Says

July 20 (Bloomberg) -- U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program.

The Treasury’s $700 billion bank-investment program represents a fraction of all federal support to resuscitate the U.S. financial system, including $6.8 trillion in aid offered by the Federal Reserve, Barofsky said in a report released today. Read it HERE.

That is not encouraging news. More debt to cover bad debt. How does that help the economy? A fire will not die if treated with gasoline. This is virtually the same action, and the trillions of gallons of gasoline is frightening.

From Telegraph.co.uk:

Fiscal ruin of the Western world beckons

For a glimpse of what awaits Britain, Europe, and America as budget deficits spiral to war-time levels, look at what is happening to the Irish welfare state.

Events have already forced Premier Brian Cowen to carry out the harshest assault yet seen on the public services of a modern Western state. He has passed two emergency budgets to stop the deficit soaring to 15pc of GDP. They have not been enough. The expert An Bord Snip report said last week that Dublin must cut deeper, or risk a disastrous debt compound trap.

A further 17,000 state jobs must go (equal to 1.25m in the US), though unemployment is already 12pc and heading for 16pc next year. Read it HERE.

The dismantling of the socialistic, welfare state could be a great blessing in the long run.

From TheNation.com:

Dismantling the Temple

By William Greider

This article appeared in the August 3, 2009 edition of The Nation.

July 15, 2009

The financial crisis has propelled the Federal Reserve into an excruciating political dilemma. The Fed is at the zenith of its influence, using its extraordinary powers to rescue the economy. Yet the extreme irregularity of its behavior is producing a legitimacy crisis for the central bank. The remote technocrats at the Fed who decide money and credit policy for the nation are deliberately opaque and little understood by most Americans. For the first time in generations, they are now threatened with popular rebellion. Read it HERE.

There seems to be more emphasis on auditing and curtailing the power of the Federal Reserve. It is a private organization owned for profit by the member banks, not the government. Perhaps, Ron Paul is acquiring some reinforcements. That would be great!

Make your day a great one in concert with the Lord.

Best to each, Doug

Precious Metals Moving

Gold is trading between 950 & 955 which is above the previous 940 cap. I wonder how long it will take the boyz to sell their paper calls on the precious metals. Then they will desire to move the prices down to cover their shorts. In the meantime, we have opportunity to take some profits on the miners. Gold is 948.50 up 11.20, but is down from an earlier high of 955.

The miners are strong today as the second half of the "W" is forming smoothly. With the price above 40 there is a strong suggestion that it will go higher. It is staying well above both moving averages with the 50 day above the 200 day.
Silver, too, is holding nicely above 13. The boyz may be acting the same way on silver as mentioned above for gold. Silver is 13.62 up 0.21.
Hecla Mining is offering opportunity for profit taking, as well. I have been selling HL @ above 3.10 this morning. It could go higher, but I wanted to lock in some profit and gain some cash for rebuying at lower prices, if we see them. Hecla is trading in the 3.15-3.18 range presently.
In the futures markets, I sold some August US Bond puts for a double and purchased some September 875 puts. I believe that bonds will go lower. The dollar is now faring well, so to make our treasuries sell able, the interest rates will have to go higher. This will send the bonds lower.

Some interesting comments from The Daily Pfennig today: "Chuck is waking up in Vancouver this morning, his favorite city located north of St. Louis. While he spent most of the day yesterday traveling, he was able to send me the following from David Rosenberg, who is usually pretty good with his thoughts....

"It is the second anniversary of the credit crunch and after all of the fiscal and monetary policy initiatives, the best we get are "green shoots" and now that story is getting stale. Go back two years and you will see that the Fed Funds rate was 5.25%, Today it is zero. The fiscal deficit was 2% of GDP two years ago. Today it is 13%. Mortgage rates were 6.5%. Today they are 4.7%. Homeowner affordability with all the government measures is 70% stronger today than it was then too. The Fed's balance sheet then was $850 Billion. Today it is bloated at $2 Trillion. The government has tried just about everything. Or has it? What if we were to tell you that the one policy tool that is unchanged since the summer of 2007 is... The U.S. dollar? It is exactly the save level now, on any trade-weighted measure, as it was back then. The greenback is struggling at the 50-day moving average, and this could well be the next policy shoe to drop... "

David makes an excellent point. In spite of all of the negative numbers with regard to the US economy, the value of the dollar is basically unchanged over the past two years. This is bound to change, as US policy makers will have to let the dollar fall in order in the face of rising inflation and skittish foreign investors. As we have repeatedly pointed out, the administration has three choices with regard to the tremendous debt load which has been built up in recent years. 1) They can increase revenues (yes, they are increasing taxes, but these increased taxes are already spent on the new health care program). 2) They can decrease expenditures (big government is back, expenditures aren't going to fall anytime soon!). 3) They can let the dollar fall in order to pay back the debt with cheaper dollars (the most likely scenario!!)."

As always, we encourage you to protect yourself from the eventual drop in the value of the dollar by diversifying your investments into other currencies and gold or silver."

The DOW is up about 25, but was a bit higher earlier. The excitement has been in the precious metals, today. We will have to wait and see what the boyz do in the metals and what the PPT does in the general market. Always interesting in markets. Remember there are no free markets only intervention.

Keep your eyes and life focused upon our Sovereign King Jesus, the only Messiah, Savior of His people. He gave us the answer to all of life in His written word, the Bible. Study it, read it, meditate upon it, and apply it to all areas of life. Through Him is life and without Him is death.

Best to each, Doug