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

Draconian Health Care is Proposed

After six days of up moves by the DOW Trans, we are looking at a potential down day. Under the DOW Theory bull or bear trends must be confirmed by both the Transportations and the Industrials. We were waiting for a confirmation of the high by the Industrials on June 1st, and it seemed that the Transportations were about to do it. It looks like not today.

The DOW four days up and now possibly a down day. It is an interesting market.
The miners are following a similar pattern with five days up and now, apparently, a down day. Yesterday was just barely up, so we were forewarned.
Gold appears to be attempting another break through of the 940 barrier, but seems to be capped every time it approaches this Resistance level. Gold is 939.50.
Silver is up a good bit today, but seems to be struggling with 13.40. It is now just above that Resistance level at 13.43.

This morning I put in buy orders on DROOY at a limit of 7.97. It opened with trading at 8.00+. The miners are mixed now. Both gold and silver are moving up, as the dollar is likely down again. Gold is pushing toward 940 which seems to have been the cap price defended by the bullion banks deep pockets. It will be interesting to see if the 940 cap will hold. It is being threatened at present.

An appropriate quote reported in Casey's Daily Resource Plus today: "Interventionism cannot be considered as an economic system destined to stay. It is a method for the transformation of capitalism into socialism by a series of successive steps." - Ludwig von Mises

From MineWeb.com:

Swiss banks running out of storage space for gold bullion

Worries about the economy and the success in marketing gold ETFs has seen Swiss banks finding difficulty in meeting secure storage requirements for gold bullion.

Author: Lawrence Williams
Posted: Friday , 17 Jul 2009

LONDON -

In a note entitled No more space for Gold Bars, Swiss news website 20 Minuten Online reports that Swiss banks are running out of secure storage space for gold bullion held by investors and institutions. Fears of hyperinflation, the economic downturn and the success of gold index funds (ETFs), which are supported by physical gold, has led to a run on precious metals investment - and in gold in particular, and in the necessary secure storage space in which to hold it..

One Swiss bank, earlier this year, reported that it was having to relocate some of its stored silver bullion to another site to make room for gold. The Zurich Kantonal bank put this down to the success of its gold ETF. Read it HERE.

The new health care commentary from Investors' Business Daily:

It's Not An Option

Posted 07/15/2009 06:46 PM ET

Congress: It didn't take long to run into an "uh-oh" moment when reading the House's "health care for all Americans" bill. Right there on Page 16 is a provision making individual private medical insurance illegal.

When we first saw the paragraph Tuesday, just after the 1,018-page document was released, we thought we surely must be misreading it. So we sought help from the House Ways and Means Committee.

It turns out we were right: The provision would indeed outlaw individual private coverage. Under the Orwellian header of "Protecting The Choice To Keep Current Coverage," the "Limitation On New Enrollment" section of the bill clearly states:

"Except as provided in this paragraph, the individual health insurance issuer offering such coverage does not enroll any individual in such coverage if the first effective date of coverage is on or after the first day" of the year the legislation becomes law.

So we can all keep our coverage, just as promised — with, of course, exceptions: Those who currently have private individual coverage won't be able to change it. Nor will those who leave a company to work for themselves be free to buy individual plans from private carriers. Read the whole article HERE.

Talk about 1984 and totalitarian government. What else would you expect from the home of the brave and the "free"? Look out, folks, under this plan you can kiss sound health care goodbye, but you will be forced into it by the power of the government. Let's launch a campaign to cancel this plot before it comes to fruition. Write and call your congressmen and senators NOW!

More on the new, "improved" health care from Chuck Butler in The Daily Pfennig: "But 'big government' is back, and the current administration obviously feels it is their job to make government even bigger. Chuck had this to say about this weeks earlier announcement of a new government run health care program:

"The Big Debate right now is a National Health Care program... I'll come right out front and center and say that I'm not for it, which shouldn't surprise anyone that's been reading this letter very long. But there's someone else who should be more important a figure against this than I think the media is reporting...

I'm talking about Douglas Elmendorf, the Director of the Congressional Budget Office who, under questioning by members of the Senate Budget Committee, had this to say...

"Instead of saving the federal government from fiscal catastrophe, the health reform measures being drafted by congressional Democrats would worsen an already bleak budget outlook, increasing deficit projections and driving the nation more deeply into debt."

He went on to say... That "bills crafted by House leaders and the Senate Health Committee do NOT propose the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a significant amount." "

Not only are draconian regulations proposed, but the over all program is another budget busting spending deal by our congress.

From Bloomberg.com:

Foreclosure Filings in U.S. Reach Record 1.5 Million

July 16 (Bloomberg) -- U.S. foreclosure filings hit a record in the first half, a sign that job losses and falling property prices deepened the housing recession, according to RealtyTrac Inc.

More than 1.5 million properties received a default or auction notice or were seized by banks in the six months through June, the Irvine, California-based seller of default data said today in a statement. That’s a 15 percent increase from the year earlier. One in 84 U.S. households received a filing. Read it HERE.

Isn't it nice that the recession, depression is over as reported by the rose colored eye glasses of many? Here is another indication that clear eyeglasses are needed by them.

From Counterpunch.org:

There's Nothing Left to Recover

What Economy?

By PAUL CRAIG ROBERTS

There is no economy left to recover. The US manufacturing economy was lost to off shoring and free trade ideology. It was replaced by a mythical “New Economy.”

The “New Economy” was based on services. Its artificial life was fed by the Federal Reserve’s artificially low interest rates, which produced a real estate bubble, and by “free market” financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.

The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.

The debt economy caused Americans to leverage their assets. They refinanced their homes and spent the equity. They maxed out numerous credit cards. They worked as many jobs as they could find. Debt expansion and multiple family incomes kept the economy going. Read the article HERE.

The debt economy may be gone forever. One would hope so. However, recovery in the minds of many is that we return to the economy which existed before the housing bubble burst. Be careful what you wishes are. Were we to return to that, we would soon be in the same financial quick sand of the last two years. Is that what we want? The new economy when/if it comes will be different. We have lost our manufacturing capability and are predominantly a service economy. I still believe that our standard of living will diminish greatly. How can we put people back to work? Of course, with the expansion of the government, there will be many employed unproductively in the monster. Government never produces prosperity for the masses. Only the free market private businesses can produce any wealth.

Rest the Lord, but be active in following His will. His way leads to life, others to death. He is the Messiah, not our government. God's basic unit of society is the family. Thus, there is a governmental war on the family. Beware of this as you submit your children to the government schools which present much against the strong Christian family in an attempt to produce robot like people who will want to be dependent upon the government as their messiah.

Best to each, Doug

Red Alert: Indonesia - Explosions in Jakarta (Open Access) July 17, 2009 | 0201 GMT ADEK BERRY/AFP/Getty Images Indonesian security and armed police check a car at the JW Marriot Hotel in Jakarta in September 2003 At least two improvised explosive devices detonated in the Mega Kuningan business district of Jakarta, Indonesia, early on July 17, near the Ritz-Carlton and Marriott hotels, with one report describing extensive damage to the front facade of the Ritz. Several foreign embassies are reportedly also located in the area. Local reports describe witnesses observing white smoke coming from several structures, while other buildings were being evacuated. Further details are sketchy at this point. It is unclear exactly where the devices were placed or how large they were, though some photos of the Ritz show damage that would be consistent with a small device being detonated inside. Early casualty reports described four people killed, though if the damage to the Ritz-Carlton is as extensive as described, the casualty count will likely rise. STRATFOR will continue to update its reporting of the situation as details become available. This report may be forwarded or republished on your website with attribution to Stratfor.com
Terms of Use | Privacy Policy | Contact Us © Copyright 2009 Stratfor. All rights reserved.

Trailing Stops Were Hit - See the Universe

Below is the 24 hour graph on gold. Notice the red trace. Every time the price got to 940, it was capped. I count eight or so times over night. This leads me to believe that the boyz have targeted 940 as the top for now. We will be watching this over time. Gold is now 934.60 off about 4.90.

My trailing stops were hit, so now I have a little profit from the sales, but importantly more cash to seek buying opportunities. DRD had the largest drop. It fell well below the lower trough line, and is in buying range at present. The last trade was 8.03 with a high of 8.46 and a low of 7.91 for the day.
Vista Gold fell even more percentage wise. The last trade was 1.79 with a high of 1.82 and a low of 1.75 on the day. The bid is 1.80 and the ask is 1.81. Not a bad buying range.
Silver managed to stay mostly above 13. It is now 13.27 up 0.02 on the day.
Hecla fared a bit better than the golds, but still took a big hit this morning early. The last was 2.90 with a high of 2.92 and a low of 2.78. The bid is 2.89 and the ask is 2.90. This is a bit high for my taste.

From Bloomberg.com:

Mobius Says Derivatives, Stimulus to Spark New Crisis

July 15 (Bloomberg) -- A new financial crisis will develop from the failure to effectively regulate derivatives and the extra global liquidity from stimulus spending, Templeton Asset Management Ltd.’s Mark Mobius said.

“Political pressure from investment banks and all the people that make money in derivatives” will prevent adequate regulation, said Mobius, who oversees $25 billion as executive chairman of Templeton in Singapore. “Definitely we’re going to have another crisis coming down,” he said in a phone interview from Istanbul on July 13.

Derivatives contributed to almost $1.5 trillion in writedowns and losses at the world’s biggest banks, brokers and insurers since the start of 2007, according to data compiled by Bloomberg. Global share markets lost almost half their value last year, shedding $28.7 trillion as investors became risk averse amid a global recession.Read it HERE.

Here comes another shoe that has been in the Internet news, but ignored by the broad media. More talk of regulation, but will it be rational regulation or just regulation for control of citizens and business to provide more centralized power to those in control?

From GATA yesterday:

John Rubino: A sudden worldwide currency revaluation is imminent

Submitted by cpowell on Wed, 2009-07-15 21:19.

5:15p ET Wednesday, July 15, 2009

Dear Friend of GATA and Gold:

In his new essay, "A Tremendous Secret," financial writer John A. Rubino, co-author with GoldMoney's James Turk of "The Coming Collapse of the Dollar," foresees an imminent worldwide currency revaluation. This revaluation, Rubino thinks, will correct the biggest financial imbalance of all, the ratio between the value of the world gold supply and the supply of fiat money.

Such a prospect is not quite a secret to GATA supporters. They may remember that the British economist Peter Millar contemplated in great detail such a worldwide currency valuation relative to gold in the May 2006 edition of his Valu-Trac Investment Research newsletter, to which GATA has called attention from time to time: This May article may be found HERE. You may read the main article HERE.

Some day the saber rattling will be saber thrusts into the reserve status of the dollar. The question is WHEN? I believe that we will have an alternative reserve currency before long. It will take some time for a new currency to be received around the world. The Chinese are certainly putting their Renminbi into many countries with whom they do business. This is really spreading more rapidly than many thought.

On the Health Care from Truthout.com:

Some Choice Words for "The Select Few"

Sunday 12 July 2009

If you want to know what really matters in Washington, don't go to Capitol Hill for one of those hearings, or pay attention to those staged White House "town meetings." They're just for show. What really happens - the serious business of Washington - happens in the shadows, out of sight, off the record. Only occasionally - and usually only because someone high up stumbles - do we get a glimpse of just how pervasive the corruption has become.

Case in point: Katharine Weymouth, the publisher of The Washington Post - one of the most powerful people in DC - invited top officials from the White House, the Cabinet and Congress to her home for an intimate, off-the-record dinner to discuss health care reform with some of her reporters and editors covering the story.

But CEOs and lobbyists from the health care industry were invited, too, provided they forked over $25,000 a head - or up to a quarter of a million if they want to sponsor a whole series of these cozy get-togethers. And what is the inducement offered? Nothing less, the invitation read, than "an exclusive opportunity to participate in the health-care reform debate among the select few who will get it done." Read it HERE.

Talk about a "shadow government." That term was applied to the Nixon reign. Does it still exist? I believe it does. Health care is becoming a serious matter. With the government's record of failure in almost all programs, who wants their health care managed by the same officials? I certainly do not!

Take a break from the markets and view the Universe through the Hubble Telescope HERE.

What a Universe God created by His Word! That is absolutely amazing. But then He is an amazing God who works all creation and every circumstance for His glory and the eventual good of His people. That He chooses any of us in remarkable. But He does and sends His Holy Spirit to teach us about our sin and show us the only Savior Jesus Christ. That we may be enlightened and empowered to desire and follow His law. That is the message of the good news of the gospel.

Best to each, Doug

Metals & Miners Upward

Gold has made a nice upward move of 14.70 to 940 now. It has not been hammered, yet. This is a strong move which has not been seen of late.

Vista Gold is showing a positive "W" trace on the graph, below. However, the "W" is not a perfect formation, but the recent trend it upward. Therefore, I have put a 3% Trailing Stop Sell on a portion of my VGZ.
The DROOY trace of a positive "W" is also a bit sloppy. But likewise, I have a 3% Trailing Stop Sell on a portion of my DROOY.
Silver has broken above 13 to 13.20 up 0.32 as of now.
Hecla Mining has traced an almost perfect "W" on the graph, below. It is in a rather strong upward move. Likewise, I have place a 3% Trailing Stop Sell on a portion of my HL.
From The Daily Pfennig: "I see that Gold has finally shown some life this morning, adding $12 overnight... A reader sent me a link to a story about the manipulation of the Gold price, which I truly believe has been going on for years, but keep it in my back pocket only to bring out when it makes sense to do so... Here's a snippet of the report by GATA (Gold Anti-Trust Action Committee Inc.)

New York and Tokyo commodity exchanges have been permitting their gold futures contracts to be settled not in real metal but in shares of gold exchange-traded funds (ETFs). This essentially allows the gold shorts (and the exchanges themselves, which guarantee futures contracts) to transfer their obligations to third parties that may not have the metal they claim to have and that, in any case, are operated by the investment banks running major short positions in gold.

Thus it is likely that the paper claims to the world's supply of gold are greater than even GATA has suspected -- that the gold supply is even more oversubscribed and that "paper gold" is being created at an ever more frantic rate to suppress gold's price."

As strongly as I oppose intervention in the markets by regulation, it seems that at times this may be necessary. Of course, if the bullion banks are exempted from any such regulation, then we don't need it at all.

From MineWeb.com:

Gold stocks: neutral to souring

Barrick, world gold leader, displays a stock price that's been churning and churning for 2009, highlighting the dilemma faced by investors in an increasingly less popular mining subsector.

Author: Barry Sergeant
Posted: Tuesday , 14 Jul 2009

JOHANNESBURG -

A year ago, Barrick, the world's biggest gold producer, and most valuable listed gold stock, topped USD 50 a share. It traded at somewhat higher levels earlier in 2008, along with gold bullion setting a record above USD 1,000 an ounce during March 2008. For nearly a year now, Barrick's stock price has not again sniffed USD 50 a share, and, indeed, has not been above USD 40 a share. Read it HERE.

From MineWeb.com:

Gold - the King of metals will keep its crown - Grandich

Market analyst Peter Grandich, sees good opportunities for investors who want to "buy things on the cheap" and also sees bright prospects for gold - Interview with The Gold Report.

Author: The Gold Report
Posted: Wednesday , 15 Jul 2009

VANCOUVER, BC -

The Gold Report: When we spoke in early February, you said, "Not only do I think that we are we going to retest the November lows, we're probably going to go through them." At that point, you expected a bounce that would see the Dow trading somewhere between 7,500 and 9,000. Looking back, that seemed very accurate. Can you give your perspectives on what's happened since February and what you expect going forward here in Q3?

Peter Grandich: We got involved in what will go down as one of the best bear market rallies the U.S. markets have ever had, but I don't think it's anything more than that. The expectation that somehow a normal economic recovery would take place in the second half of this year and things would go back to normal will prove to be a horrific error in judgment.

The market is starting to sense that this is an extraordinary time unlike any other economic period, and any real chance of economic growth after the worst financial disaster perhaps in all of America's history, is not going to occur. Therefore, we should see the U.S. stock market trend lower, not higher, in the second half of this year and go into a multi-year, if not a multi-decade trading range of somewhere around the lows of 6,500 and potentially as high as 10,000 or so on the Dow, but more realistically somewhere between 6,500 and 8,500. Read the interview HERE.

Gold and, to a lessor extent, silver will come into their own if the government and banks will move out of the way. Until that time, we must be patient. However, you will note that I have moved back into trading and am using trailing stops.

From MineWeb.com:

U.S. mining law reform a top Obama Administration priority

While news media attention is focused on the Senate confirmation hearing of a new justice a few doors away, the Senate Energy& Natural Resources Committee is busy adjudicating the fate of the U.S. hardrock mining industry.

Author: Dorothy Kosich
Posted: Wednesday , 15 Jul 2009

RENO, NV -

As environmental special interests congratulated themselves for U.S. Interior Secretary Ken Salazar's declaration Tuesday that mining law reform is a top priority for the Obama Administration, lost among the rhetoric and news coverage was Salazar's equally important declaration.

"In my view, our own security depends on maintaining a viable domestic mining industry," Salazar told the Senate Energy and Natural Resources Committee Tuesday. "Minerals are also needed to support development of renewable energy," he added. Read it HERE.

I doubt very seriously that any Obama sponsored mining regulations will be of any benefit to our nation other than an increase in tax revenue, if even that is a benefit. Think about it, as industries are taxed, their cost of doing business rises and is past on to consumers in the form of higher prices. So I doubt that additional taxes are good, at all. The danger is that the environmental considerations and the push for alternative green fuels will be the predominant goal in any legislation which will drive more industry out of America. Much of our mining industry has been forced to move in the past because of regulations.

Is the president a radical Bushite? Check a scary video HERE. This is a video which must be seen or at least heard by one and all. I believe that God will see a World Government as just another Tower of Babel as men attempt to raise themselves above the Law-Word of our Creator God. It is bound to fail, but could in the meantime cause the citizens a lot of pain. By the way, if you have not read "1984," find this Orwell book and read it. It describes a totalitarian state in great detail in an age of high tech everything. It is a small easily read book and should be required reading for every person young and old.

From TownHall.com:

EPA Cover-Up

by Walter E. Williams

Here's what I wrote in last year's column titled "Global Warming Rope-a-Dope" (12/24/2008): "Once laws are written, they are very difficult, if not impossible, to repeal. If a time would ever come when the permafrost returns to northern U.S., as far south as New Jersey as it once did, it's not inconceivable that Congress, caught in the grip of the global warming zealots, would keep all the laws on the books they wrote in the name of fighting global warming. Personally, I would not put it past them to write more." On June 28, 2009, the House of Representatives, by a narrow margin (219-212), passed the Waxman-Markey bill. The so-called "cap and trade" bill has been sold as a system for cutting greenhouse gas emissions in the struggle against global warming. There's a full-court press on the U.S. Senate to pass its version of "cap and trade." This is very dangerous legislation and should be opposed by every legal means possible. Get on board and bug your senators. We do not need or want it. It is another Obamanizm. Read Walter's article HERE.

From Bloomberg.com:

Greenlight Holds Bullion, Buys Reinsurance Stocks
By Saijel Kishan

"July 14 (Bloomberg) -- Greenlight Capital Inc., the $5 billion hedge-fund firm run by David Einhorm, told investors it switched all of its holdings in a gold exchange-traded fund into bullion during the second quarter.

“At a minimum this will provide some savings as the costs of storing gold are less than the fees” for the SPDR Gold Trust, the New York-based firm said yesterday in a letter to investors.

Einhorn, 40, told clients in January he was buying gold for the first time amid the threat of inflation from higher government spending. The firm, started in 1996, held 4.2 million shares of SPDR Gold Trust in the first quarter, making the gold- backed ETF its biggest holding. Gold has climbed 5.8 percent this year." This is particularly important if you own precious metal ETFs or Trusts >> Read it HERE.

From SilverSeek.com:
The Game Changer?
By: Theodore Butler

Every once in a great while, something big comes along to upset the status quo. Sometimes the change is long overdue and welcome. I think we may soon witness such a game-changer in silver.

As I briefly referenced last week, the new chairman of the CFTC, Gary Gensler, issued a statement on July 7, that I felt was very important. Upon further reflection and subsequent additional statements from Commissioner Bart Chilton, I am convinced that great change may be on the way.

The statement from Chairman Gensler is clear; he is deeply concerned about and is soliciting your input on the matter of speculative position limits. In a moment, I will suggest how you can participate in the coming great change. This is an important read. Check it out HERE.

Folks, we must turn back to the God of most of our founders. He will not long tolerate a people who turn their backs on him. With all of the young folks emphasis upon high tech games and phones, it is no wonder that they have no time for the Creator and Sustainor of all. They must learn at a very young age to fear the Sovereign God from Whom there is no appeal. He must become the center of their lives for them ever to have any real learning and insight.

Best to each, Doug

Precious Metals & Miners Are Up Today

Silver is still languishing below 13 and is now 12.89 up 0.07. Hopefully, it is showing some life in spite of the intervention which seems to be almost nonexisent at present. Temporarily, I am certain!

Meanwhile gold is showing some life today. It is 924.50 now up 3.70. It was a bit higher earlier, but still up from yesterday. Have you noticed how the metals are down on most Mondays? Interesting!
Our miners are showing life, as well. The longer trend outlined by the lavender lines on the graph, below, seem to be headed toward a conversion which would indicate a breakout in one direction or the other. However, the black down trend line shows that the miners have, today, broken out of the down trend. This is early in the day, and I prefer to examine the close, but this gives some encouragement. Here are some of the miners and ETFs >> AUY 8.98; CEF 11.38; DROOY 7.94; GLD 90.80; HL 2.62; HMY 8.91; SLW 7.79; SSRI 17.71, and VGZ 1.71. I have put in a 3% trailing sell stop on some of my DROOY to lock in some profit and gather some additional cash.
Richard Russell continues to point toward the very large head and shoulders in the DOW graph. This is shown below in lavender. Notice also the down trend trough outlined with black trend lines. This does not forebode well for the future action of the DOW. "Sell in May and run away, may have been a good idea.

We shall see as the summer progresses with the heat, dryness here in San Antonio. Almost makes ones believe in the prevalent lie about global warming; however, we must realize that we are "privileged" to cycles of heat with dryness and cool with rain. We should be earnestly praying for rain as we in San Antonio endure the political water shortage even though we are sitting on top of one of the largest aquifers in America. The politicos ever seek more power over the citizens. One wonders how we lost our initial small government which sought to only protect the life, liberty, and property of the citizens. Of course, back at that time, we were citizens of our respective states and the state legislatures appointed the senators. The state's task was to interposition itself between the state citizens and the federal government. The state was a protector of the citizens rights until they surrendered themselves to become arms of the feds.

From MineWeb.com:

U.S. Mint gold, silver coin sales 'temporarily suspended' - again

Sales and suspension of gold and silver coin or bullion coin sales by the U.S. Mint are becoming a regular part of doing business as overloaded refiners and mint facilities struggle to meet continuing high demand.

Author: Dorothy Kosich
Posted: Tuesday , 14 Jul 2009

RENO, NV -

Unprecedented demand, a shortage of blanks, and restrictive policies and regulations continue to exacerbate what is almost becoming a chronic shortage of gold and silver coins authorized by the U.S. Mint.

The U.S. Mint has again "temporarily" suspended sales of almost all of its gold uncirculated and proof coins, along with nearly all of silver uncirculated coins because of the limited availability of blanks.

The mint no longer offers for sale the American Buffalo Gold Proof fractional coins and four coin sets are no longer available. Meanwhile the mint will no longer offer American Buffalo Gold Uncirculated Coins. Read it HERE.

This is continued evidence of the shortage of physical metals. Without the intervention through the paper futures markets, gold and silver would be selling at a much higher price.

From MineWeb.com:

Chinese companies eyeing bargain Canadian miners for gold, coal, copper and uranium

With recent purchase of C$1.74 billion stake in Teck as an example, Chinese metals producers are said to be looking at Canada's resource companies to tie in commodity supplies with key targets said to be gold, coal, copper and uranium.

Author: By Pav Jordan
Posted: Monday , 13 Jul 2009

TORONTO (Reuters) - -

China's purchase of a C$1.74 billion ($1.5 billion) stake in Teck Resources may be just the opening move from the world's top resource consumer in a strategy to use its unique wealth advantage to become a key source of mining capital for Canadian firms.

Teck said last week it sold a 17.2 percent equity stake to state-owned China Investment Corp in a deal that allows the Canadian miner to pay down its massive debt while expanding China's portfolio of commodity investments.

The deal underscores how deep China's pockets are at a time when many sources of credit and financing have dried up in the global recession, even for the biggest miners. Read it HERE.

China still shopping the world and gaining more influence in international affairs. She wants to become the dominant economic force in the world and seems dedicated to this goal. The sea change coming is a shift of power from the west to the east. It seems that as the west sinks farther into socialism and the extreme cost of the welfare state, China is moving in the other direction. There is a great deal of economic freedom in China even though it is ruled as a communist state. Meanwhile back at home, we are losing our economic freedom as we become more totalitarian day by day.

From TownHall.com:

A Personal Inequity

Sometimes, when I hear about "disparities" and "inequities," I think of a disparity that applied directly to me-- the disparity in basketball ability between myself and Michael Jordan.

When I was in school, I was so awful in basketball that the class coach wouldn't even let me try out for softball, at which I was actually pretty good. Read it HERE.

From TownHall.com:

How to Handle Sonia

Republicans have been given fair warning.

Should GOP senators treat Sonia Sotomayor as contemptuously as Democrats treated Robert Bork, Clarence Thomas and Sam Alito, they should expect Hispanic hostility for a generation.

The chutzpah of this Beltway crowd does not cease to amaze.

They archly demand that conservatives accord a self-described "affirmative action baby" from Princeton a respect they never for a moment accorded a pro-life conservative mother of five from Idaho State, Sarah Palin. Read it HERE.

From Mirror.co.uk:

Spain seeks sunken treasure

Cash-strapped Spain has ordered its navy to look for huge gold reserves that were lost at sea in the 16th century.

Gold bullion and silver treasure worth an estimated £85billion - the size of the nation's current budget shortfall - lies on the sea bed off the coast of southern Spain.

The Inca and Aztec loot is believed to be in heavily laden vessels which hit the bottom of the sea in bad weather as they returned to Cadiz from South America. Read it HERE.

The Spanish Conquistadors are searching the oceans for more treasure. That is very interesting.

From Ron Paul's Straight Talk:

Fed Independence or Fed Secrecy?

Last week I was very pleased that hearings were held on the independence of the Federal Reserve system. My bill HR 1207, known as the Federal Reserve Transparency Act, was discussed at length, as well as the general question of whether or not the Federal Reserve should continue to operate independently.

The public is demanding transparency in government like never before. A majority of the House has cosponsored HR 1207. Yet, Senator Jim DeMint’s heroic efforts to attach it to another piece of legislation elicited intense opposition by the Senate leadership. Read it HERE.

Ron Paul is a lone voice crying the wilderness of Congress. We should support him in every way possible. Our prayers should be that the Lord will cause Ron's voice to be heard and heeded. Many in power fear the revelations of an audit of the Federal Reserve, because it would reveal the fraud and fallacy of paper "money" and the fractional banking system.

From NRAILA.org:

"Two-thirds of State Attorneys General
Support Second Amendment Incorporation

Two-thirds of the nation's attorneys general have filed a "friend of the court" brief asking the U.S. Supreme Court to hear the case of NRA v. Chicago and hold that the Second Amendment applies to state and local governments through the Due Process Clause of the Fourteenth Amendment. This bi-partisan group of 33 attorneys general, agrees with the NRA's position that the Second Amendment protects a fundamental individual Right to Keep and Bear Arms in the home for self-defense, disagreeing with the decision recently issued by a three-judge panel of the U.S. Court of Appeals for the Seventh Circuit."

We should pray that this action meets with success. Our fundamental right has been threatened ever since the Federal Government increased its unconstitutional power and become more intrusive.

From FT.com:

Central bankers return to gold and dollars

By Terrence Keeley

Published: July 9 2009 18:11 | Last updated: July 9 2009 18:11

The lessons of the past year for central bank reserve managers – overseers of $7,000bn in foreign exchange assets, four times the amount managed by their flashier cousins, the sovereign wealth funds – stand in stark contrast to the convictions they developed over the prior decade. As central bank forex assets quadrupled in the 10 years following the emerging markets crisis of 1998, reserve liquidity was deemed excessive and more diversified investment strategies compelling. With growing confidence, sovereign assets were shifted away from the US dollar, government bonds and gold to higher-yielding currencies, credit and even equity instruments. The government-sponsored enterprises Fannie Mae and Freddie Mac (and by second derivative, US homeowners) were primary beneficiaries of this trend; central bank holdings of GSE debt grew from about $100bn in 2001 to more than $1,000bn at their peak last year. Commercial banks also swelled with central bank deposits rising from $400bn to $1,400bn over the same period. Read it HERE.

From TheMoscowTimes.com:

Medvedev Shows Off Future World Money

13 July 2009By Alexandra Odynova / The Moscow Times

After months of pushing for a new world currency, President Dmitry Medvedev had more than an idea to tout at his G8 news conference. He had the real thing.

With a broad grin, Medvedev held aloft a shiny gold coin Friday that he said represented a “symbol of unity” and a possible “future world currency. Read it HERE.

I mentioned this yesterday and now here is the complete article on the show by President Medvedev at the time of the G8 meeting. This is still only saber rattling, but the rattling is becoming much louder and joined in by more nations.

Well, we are nearing noon on the trading day. It is always exciting and interesting. The challenge is great, but with the Lord's guidance, we can succeed given His blessing. We must pray that His people with rise to the task of taking dominion under King Jesus of all the world for Him.

Best to each, Doug

The Good Old Summer Time Not Looking Good!

Gold has been hammered again just into the NY trading today. This is typical of the bullion bank activity. It is now trading at 908.40. Perhaps, they will cover a number of shorts in this price range. It would be a blessing if they would unload, go away, and leave the markets alone. Only the Lord knows the exact timing on this.

VGZ seems to have a narrow trading range of late. The range between about 2.00 and 1.50 is clear on the graph, below. VGZ is now 1.59.
Silver appears to be ignored by the bullion banks this morning. It is still under 13 and trading at 12.47.
Hecla mining is trading in a range from about 3.00 to around 2.30, but over the last week a narrower range from 2.60 to 2.30. Hecla is primarily in silver. Hecla is now at 2.34.
Gold has taken it in the nose, so looks to be going down even more in the near future. I want to emphasize again that buy and hold should work for the longer term, but there are many trading opportunities along the way. One can use limit buy orders and trailing stops to limit loss once the buys are executed.

From MineWeb.com:

World's top 100 gold stocks: a little shabby, but strong enough

Gold bullion has taken a bit of a beating, allowing investors to show which listed gold stocks get the most votes during a tough patch.

Author: Barry Sergeant
Posted: Friday , 10 Jul 2009

JOHANNESBURG -

Gold bullion, apparently now targeting USD 900 an ounce, traded briefly just above USD 980 an ounce early in June; on 3 June, global listed gold stocks, seen as a group, made multi month highs, and then retreated quite heavily. Mining stocks across all classes also made multi month highs on 3 June, and have recovered somewhat from lows seen on 23 June, dragging gold stocks upwards from those lows, for now at least. Read it HERE.

From MineWeb.com:

Emerging gold producers favoured in deflationary environment - Jay Taylor

In this interview with The Gold Report, Jay Taylor talks about what economic insights he's gleaned from guests on his radio show," Turning Hard Times Into Good Times," and how owning gold shares can be advantageous in a deflationary period.

Author: The Gold Report
Posted: Monday , 13 Jul 2009

VANCOUVER, BC -

The Gold Report: Jay, since your radio program, "Turning Hard Times Into Good Times," started 13 weeks ago, you've had lots of very interesting guests. Care to share some of their perspectives on the state of the world economies?

Jay Taylor: Yes, we've have had a lot of very interesting guests who have provided some great insights into the markets, and I believe, profit-making guidance going forward. Most of the people that I've had on my show really believe that America's economy is in big trouble and will remain in big trouble for some time to come because of two factors. First, as a country we have lived beyond our means for many, many years. Second, there is a general belief that the massive bailout programs of the Bush and Obama administrations are ill advised because they foster the survival of inefficient, sick companies, financial and otherwise. I would say if there has been a theme among my guests it is that the U.S. is in deep trouble financially because of those factors. Read it HERE.

Gold stocks provide the leverage over the precious metals, but are often very volatile, much more so than the metals. For me, they are still good investments.

From Bloomberg.com:

DPJ’s Nakagawa Says Japan Should Diversify Reserves

July 13 (Bloomberg) -- Japan’s opposition party, leading in polls ahead of next month’s election, said the nation should consider shifting its $1 trillion of foreign reserves away from the dollar and buying International Monetary Fund bonds. Read it HERE.

Another jab at the dollar reported in The Daily Pfennig today: "So! Did you hear that Russian President Medvedev, showed off the "new world currency coin" at the G-8 meeting last week? He said.. "We are discussing both the use of other national currencies, including the ruble, as a reserve currency, as well as supranational currencies. So... Here it is! This is a symbol of our unity and our desire to settle such issues jointly."

I believe these are just jabs at the dollar reserve status; however, they are becoming more frequent. Unless America changes its print dollars, borrow from everyone, and spend, spend, spend, the time will come when the attacks will become real and not just rhetoric.

From Reuters.com:

Obama says stimulus plan to kick in later this year

WASHINGTON (Reuters) - President Barack Obama said Saturday more time was needed for his $787 billion stimulus package to work, predicting the spending would have a bigger impact on the economy later this year.

In an advanced text of his weekly radio speech, Obama said the stimulus plan approved by Congress and signed into law in mid-February "was not designed to work in four months -- it was designed to work over two years." Read it HERE.

From Bloomberg.com:

Obama Stimulus Money to Flow as Jobless Await Results

July 13 (Bloomberg) -- David Oneglia was looking at the likelihood of layoffs at his construction company. Then he landed a contract funded by the federal stimulus program to repair roads and bridges on Connecticut’s Merritt Parkway. Read it HERE.

The only thing preventing current across the board price inflation is the fact that the velocity of dollars is very low. This is the result of the banks holding the stimuli dollars in reserve and not lending them into the economy. The businesses and citizens are all about maxed out on debt and are not in a mood to rush out and borrow more. Foreclosures and bankruptcies are growing in obscene numbers daily. Thus, there is little spending.

From Reuters.com:

Economic crisis far from over, WTO chief says

GENEVA (Reuters) - The global economic downturn is far from over, and few countries have dismantled the dangerous protectionist barriers they imposed in response to it, World Trade Organization Director-General Pascal Lamy said on Monday.

In remarks to the WTO's 153 members, Lamy said that import penalties and other border restrictions are closing off markets and causing more difficulty in a time of depressed demand. Read it HERE.

More gloomy news on the world wide economies. Protectionist barriers slow world wide trade and in the past have lead to wars. These also tend to increase the cost of products to consumers which is another unintended consequence. Let's get rid of the barriers.

Though most of our miners are in good buying ranges, I would be very careful in making purchases as the prices of the metals may be manipulated down even further until the bullion banks decide against such activity. The hot, dry days of summer are crashing upon the markets. Even the DOW is barely above even this morning at +10 and change.

Best to each, Doug

FIAT Economics Builds The City of Man for Chaos

For today, I hope you will take time to glance over the articles which I have referenced. There is a lot of good information there which should help you in your understanding of economics and investing. The Guide to Mises' Human Action is important for all. You can download it from the referenced site FREE. There is great lack of insight into economics throughout America, since all are deeply into Keynesian Economics which is the FIAT economics of St. Augustine's City of Man.

Men, always feel that they can do better than God, so early on the built the Tower of Babel. Since that time, man has sought, as did Adam and Eve, to be as God - determining what is good and evil. We see this graphically in America as the Federal Government has expanded in size, cost, and power since the War for Southern Independence failed to protect state's rights. Successive administrations, congresses, and supreme courts have substituted man's law for God's Law. Thus, the American City of God has been built and is not in full bloom.

FIAT "money" is at the root of much of our financial woes, but the real problem is a turning from the God by Whose providence our nation was founded. As we look around each Lord's Day, we see more shoppers than corporate worshippers. This is a tradgedy. The Lord requires so little of us and rewards our obedience so greatly through His grace and mercy toward His people, that we willingly respond to Him and attempt to follow His law. His law provides life and peace, but man's law results in choas and death.

Let us all join in corporate worship at a church which preaches the whole word of God, administers the two Christ ordained sacraments, and exercises discipline over its members. Through these churches, the people of God are prepared to present the gospel to the world to bring all under the Kingship of the Lord Jesus Christ. It is up to us to spread the good news of the gospel and to warn against building the City of Man. Let's put an end to the new Towers of Babel.

The 3-Year graph of gold, below, shows that gold remains in an upward trend, but that it seems to be taking a break which could last through the summer. This, of course, depends upon the whims of the bullion banks as they play in the paper futures markets.

Spot gold has been recovering a bit from the overnight lows, but is still a long way from where it was last week. It is struggling upward at 912.40 presently.
Silver has really been hammered and is now at 12.60. That is a real buy, but remember it could go lower as the summer doldrums continue.
The dollar is above its opening in relation to other currencies, but remains week. There is nothing backing it, but the full faith and credit of the bankrupt United States. Since it has been and is the reserve currency of the world, people have become accustomed and comfortable with it. The treasury sales went quite well as central banks bought in an effort to save the world financial system.
Our miners are at price levels which are very attractive. I bought some HL yesterday under 2.50. Here are the current prices for some miners and ETFs >> AUY 8.54; CEF 11.12; DROOY 7.51; GLD 89.63; HL 2.40; HMY 8.57; IAG 9.22; SLW 7.47; SSRI 17.36, and VGZ 1.57. If you decide to buy, buy in smaller than normal chunks. Whether you buy or not, should be based upon your present holdings, cash available, and your risk tolerance. I know that in the future, we will regret that we did not buy more, but that happens very often in investing. Use extreme caution.

For the general market, the DOW is off 28 to abour 8156. Not too happy a situation there, either.

From TownHall.com:

Cap-and-Tax: Government vs. America
By David Limbaugh

There is still time to stop the legislative monstrosity known as the Waxman-Markey cap-and-trade bill before the Senate approves it. But for that to happen, Americans must learn how bad it is.

Let's briefly review the basics: The bill is ostensibly designed to curb man-caused carbon emissions (presumably without outlawing breathing) to retard global warming.

Even if we accept, for purposes of argument, the assumptions of radical, hysterical leftist environmentalists that man-caused global warming will destroy the planet if evil, rich capitalists don't radically curtail their own contributions to the catastrophe, Waxman-Markey would not prevent this Armageddon. Read it HERE.

This is bad legislation which will not accomplish any of the alleged "goal." Once again, we see the truth in Rusas J Rushdooney's statement in a presentation on economics and the family in 1982 which was that our government was, in fact, at war with us, not with the USSR. The war continues and is now escalating greatly. By the way, it is impossible to separate economics from politics. I hope you understand this fact.

In Gary North's Reality Check today, he pointed the way to an excellent study guide on Mises' Human Action. The study guide is 360 pages long, but worth the effort for anyone who wants to really understand true economics which is not taught in many universities today. You can download it in pdf from HERE.

From MineWeb.com:

Gold is bad in a deflationary environment - another gold myth

This is Myth #5 in Ronald Stoeferle's Special Report on Gold for Austria's Erste Bank

Author: Ronald Stoeferle
Posted: Friday , 10 Jul 2009

VIENNA -

The fact that gold is an excellent hedge against inflation should have established itself more or less as common knowledge. Investors use it to protect themselves against the erosion of their purchase power. However, the development of gold in a deeply deflationary environment has not been subjected to much analysis. The only relevant period that would lend itself to comparison is the Great Depression of the 1930s. However, those were the times of the gold standard, i.e. the gold price was fixed. Read it HERE.

There is a great deal of truth in this article. We must understand these facts. The precious metals never go to zero value, while at some time in the future, the unbacked paper currencies will be worth virtually nothing.

From News.MoneyCentral.msn.com:

US dollar mostly higher, gold down in Europe

LONDON (AP) - The U.S. dollar was mostly higher against other major currencies in European trading Friday morning. Gold fell. Read it HERE.

The dollar and gold have been delinked by the intervention of the bullion banks. Go figure this >> During the last five weeks the US Dollar has moved upward just over 1%, and over the same period, gold has lost 7.8%. Nothing but the paper manipulation by the boyz can account for this strange action. They hold a monstrous short position in the paper futures markets which they will be unloading at some time. In the mean time, they are just sitting there and laughing among themselves as they move the markets at will. Were the dollar to drop precipitously, as it may in the future, they could get their comeuppance. That would be a great day of retribution for their immoral activities.

From Reuters yesterday:

China demands currency reform, France backs debate

By Simon Rabinovitch and Matt Falloon

L'AQUILA, Italy, July 9 (Reuters) - China called on Thursday for reform of the reserve currency system at a meeting of world leaders in one of its most direct attacks on the dollar's global dominance.

Chinese State Councillor Dai Bingguo did not specifically name the dollar at talks between the Group of Eight rich nations and G5 emerging powers, but he was unequivocal in calling for the world to diversify the reserve currency system and aim at relatively stable exchange rates. Read it HERE.

The tempo of this music to replace the dollar is rising. I believe, Chuck Butler has pointed out, the push by China for IMF SDRs is a subterfuge to hide their real goal of replacing the dollar with the Renminbi. Could happen, you know, but not today or tomorrow. Maybe we should all be learning Chinese.

From Bloomberg yesterday:

AIG May Have Zero Value After Rescue, Citigroup Says

July 9 (Bloomberg) -- American International Group Inc., the insurer bailed out four times by the government, fell the most in nine months after Citigroup Inc. said the firm may have no value left for shareholders after repaying the U.S.

AIG plunged $3.62, or 28 percent, to $9.48 at 4:15 p.m. in New York Stock Exchange composite trading, the biggest drop since September 2008. The insurer has lost more than half its value after implementing a 1-for-20 reverse stock split when trading closed June 30.Read it HERE.

The bailouts have really saved the recipients of the largess, haven't they? NOT!

From Kitco.com yesterday:

G-8: Not Much Ado About What To Do
By Jon Nadler

Precious metals values recovered some of the ground they lost in previous sessions, following a retreat to near 80 on the index by the US dollar, and on the heels of an initial $1.30 bounce in crude oil prices. This morning's initial jobless claims data did little to bring the greenback up from its 0.64 point loss on the trade-weighted index, albeit gold gave up some of its initial gains after the nine o'clock hour saw a decline in oil values back towards the $60.50 level. At last check, oil was on the negative side on the day, trading a nickel under the $60 mark.

Spot gold prices added $5.20 on the open, climbing to $914.30 per ounce. Participants remain aware (and wary) of this week's breach on first-line support in and around this value zone, but opinion remains somewhat divided as to whether or not significant bargain hunting will emerge in this price neighborhood.Read it HERE.

Good news from MoneyNews.com:

Swiss: We Will Seize UBS Client Data

ZURICH -- Switzerland has vowed to prevent UBS from handing over client information to U.S. authorities, in an attempt to defend bank secrecy, saying a tax case targeting its main bank is souring diplomatic ties.

Wealth management giant UBS is facing a court hearing in Miami next week after refusing to disclose data on 52,000 Americans holders of secret Swiss bank accounts to U.S. tax authorities.

The Swiss Justice Ministry said on Wednesday that Swiss law prevents UBS from handing over client information and the government would seize UBS client data, if necessary, to stop that happening.Read it HERE.

At least, for the time being, there is one nation which respects the rights of secrecy for investors. Of course, we have a great protection of personal matters in the U.S., don't we? If things go the way here they seem to be headed, we will have the cameras in every room in our homes. Just like in the book 1984. By the way, if you have not read it, you should. It shows the problems of totalitarian governments for which America is headed. 1984 describes a total totalitarian government.

From Telegraph.co.uk:

Shipping flashes early warning signals again

Port statistics are revealing. They were a leading indicator before the production collapse in the Japan, Europe, and the US over the winter, and they may be telling us something again.

Amrita Sen at Barclays Capital says the number of Baltic Dry ships waiting to berth — mostly in China and Australia — has begun to fall after peaking at 154 in mid-June. Read it HERE.

Once again, we see that everything is not beautiful and rosy as we are being told. The proof is here, as it is in other places. The green shoots are simply more dried weeds.

Best to each, Doug

Both Gold & Silver Seem Oversold - Boyz Active

The boyz are loaded with shorts on the precious metals and may be taking them down to much lower prices. Would that this would be the last time. They certainly have the deep pockets to be able to do what they want and covering these shorts would be of great benefit to them. It could well be that silver will be the impressive performer for the near future even surpassing that of gold.


Our miners are rebounding a bit this morning as the price of the metals has stopped falling for the time being. Here are some >>AUY 8.59;CEF 11.21; DROOY 7.74; HL 2.33; HMY 8.60; SLW 7.63; SSRI 17.48, and VGZ 1.57. All are in reasonable buying range, but we do not know the immediate future for gold and silver. It is up to the boyz. Silver is oversold and gold is nearing that level, too.

Ron Paul on YouTube.com:

He is defending and explaining the purpose of his bill to audit the Federal Reserve for the first time ever. This non-government agency which has so much power has never been audited nor investigated. Listen to his comments HERE.

From MineWeb.com:

Commodity price manipulation breeding tougher regulation approach

UK (and European) regulators may well support possible measures being taken by the CFTC in the U.S. to reduce commodity and metal market speculation.

Author: Simon Hunt
Posted: Thursday , 09 Jul 2009

WEYBRIDGE,UK (SHSS) -

The statement that the U.S. Commodity Futures Trading Commission (CFTC) was considering further measures to reduce speculation in commodity and metal markets is in keeping with events which go back as far April last year.

This statement follows comments made after last month's G8 meeting and from minutes of a more recent Federal Reserve Board meeting. Both statements referred to the unwanted return of speculation in commodities which might impair the global recovery. Read it HERE.

There are two sides to this report. (1) We of Austrian (Biblical) Economics do want a minimum of government control. Of course, government should punish fraud and theft, but it does not seem to be of that mind in this case. (2) The manipulation should be stopped.

Therefore, I have mixed feelings on this subject.

From TownHall.com:

Government Care a Health Hazard

by Cal Thomas

Most of us are familiar with the old expressions: Look before you leap; a stitch in time saves nine; if it sounds too good to be true, it probably is. These phrases remind us to think before accepting anything as fact. And never have they been more applicable then now, as the Obama administration attempts to re-fashion the healing arts. Read it HERE.

Ask yourself, "What does government do well at reasonable costs?" I can find nothing that our government is currently doing that would meet these two criterion. Therefore, ask yourself, "Do I want government to manage my health care?"

From the WSJ:

Catching The Gold Bug
LARRY LIGHT

Worried about a harrowing, inflation-ridden future, Scott Van Steyn has found the answer in a batch of glittering one-ounce gold coins. In fact, they make up a large chunk of the physician’s assets.

“There’s 2,000 years of history to show that gold is the best thing to own during bad inflation,” says Dr. Van Steyn, a 45-year-old orthopedic surgeon in Columbus, Ohio. “People used to laugh at me for buying gold. They don’t anymore.” Read it HERE.

Wow! From one of the mainline media!

From Fox News:

Silver Set To Outperform Gold, Citi Argues

Short comment. Read it HERE.

A real possibility in the near term.

More on housing from Bloomberg.com:

Delinquencies on U.S. Home-Equity Loans Reach Record

By Margaret Chadbourn

July 7 (Bloomberg) -- Late payments on home-equity loans rose to a record in the first quarter as 18 straight months of job losses and a slumping economy left more borrowers unable to pay their debts, the American Bankers Association reported. Read it HERE.

From Reuters.com:

U.S. mortgage fraud 'rampant' and growing-FBI

SAN FRANCISCO, July 7 (Reuters) - U.S. mortgage fraud reports jumped 36 percent last year as desperate homeowners and industry professionals tried to maintain their standard of living from the boom years, the FBI said on Tuesday. Read it HERE.

I am so glad to see that the housing bubble is finally going away. By the way, the U.S. mortgage fraud, if true, is another example of what happens with most government plans. It feeds the greed and larceny of people's hearts.

Have a great Thursday! If I were buying, it would be in small increments. And I would likely use some trailing stops at this point in time. Our success is up to the Lord, Who controls all.

Gold is 913.20 on an up tick and silver is 12.81 on a down tick. By the way, HL2.44 up a bit from what was reported, above.

Best to each, Doug

Manipulation - No Free Markets

Casey's Daily Resource Plus pointed out another indication that there are no free markets, only intervention. Notice the similarity of the following three graph patterns. The precious metals are normally priced in dollars (for the time being). However, as the precious metals are capped and hammered downward by intervention, the same thing is happening to the dollar at almost exactly the same time. That is not free or normal market action. There is no doubt that it is strictly intervention. This is what is creating havoc in the market place today.

Much of the same action is taking place in the general market as the PPT (Plunge Protection Team) attempts to stop the free fall of the DOW, etc.

It is no wonder that we are confused about the market. It is a market place in which the buy and hold philosophy of investing is doomed to fail. Of course, I believe that long term the precious metals will retain value. In fact, there will be an eventual gold rush as the masses at last move to the last stronghold of value. When? That is known by God alone.

It is amazing that the bullion bank boyz are holding on to their shorts on the precious metals so long. They are unloading bit by bit as they manipulate the prices downward. It would be nice, if they would take ALL of their profit and leave the markets alone. Greed and larceny are never satisfied. Perhaps, the Lord is preparing a comeuppance for them at some time in the future. They could lose control and be stuck holding the empty bag.


This is the ino.com graph of the dollar for yesterday. The action of the dollar mimics that of the precious metals almost to the minute.
From MineWeb.com:

SAFE HAVEN REPLACEMENT FOR DISCREDITED DOLLAR

Gold price poised for spectacular and prolonged rally - Peter Schiff

Gold bullion and gold-related investments, especially gold mining stocks, will be the best bets in the protracted and severe inflationary environment likely to result from current global monetary policies.

Author: By Marc Davis
Posted: Wednesday , 08 Jul 2009

Vancouver, BC (BNW Business News Wire) -

Gold prices are poised for a "spectacular" and prolonged rally as the recession deepens and investors finally become disillusioned with the U.S. dollar.

So says renowned Wall Street financial forecaster and economist Peter Schiff, who loudly warned of the October 2008 stock market crash and accompanying recession as far back as 2006. Read it HERE.

More from MinWeb.com:

Yesterday's top story: Deutsche Bank mildly bullish on gold into 2H09, silver to outperform

As Deutsche Bank forecast the Central Bank Gold Agreement soon will be extended another five years, bank strategists advised the influence of gold ETFs on gold prices is starting to wane.

Author: Dorothy Kosich
Posted: Tuesday , 07 Jul 2009

RENO, NV -

In an analysis published Monday, Deutsche Bank predicted the IMF will become an associate signatory to the Central Bank Gold Agreement, which the bank's research team forecast will be extended another five years over the next few weeks.

Meanwhile, Deutsche Bank is maintaining "our mildly bullish outlook for gold into the second half of the year." Read it HERE.

The, above, seemingly contrary views on gold are interesting. Short term, I believe we are seeing a manipulated correction in gold. It is now at 916.90 down 7.20 and silver is 12.91 down 0.18. I did sell a substantial amount of my holdings in CEF yesterday to gain cash and to lock in profit. From the look of prices today, I am thankful that I did sell.

Here are the current last prices on our miners and ETFs: AUY 8.64; CEF 11.17 (I sold at 11.34-11.36); DROOY 7.75; GLD 90.10; HL 2.46; HMY 8.94; SLW 7.68; SSRI 17.51, and VGZ 1.65. While the miners are in very good buying range, I am not adding to my portfolio at this time since I believe the prices will languish for the immediate future, maybe all summer. Thus, depending upon your portfolio, available cash, and risk tolerance, make your decision. I am still holding a good number of shares in most of those, above, so I do not worry about the demise of the dollar as these will jump in value as the dollar continues downward.

New information on the housing bubble from The Daily Pfennig: "Do you know what "shadow inventory" is? Well, it's the new buzz-word that's getting quite a bit of attention... Shadow inventory comes in several forms. It includes homes in or close to foreclosure but not yet put up for sale - a number that's increasing. It also includes homes that owners want to sell but are waiting to put on the market until it improves.

Well... I told you a year ago that the housing problem was being made worse by all the inventory of houses that needed to be sold... And even our Mr. Magoo, former Fed Chairman, Big Al Greenspan, noticed the inventory as being a problem... Well, this shadow inventory could be adding to the already too big inventory... It's like this "inventory" is hanging over the housing market like the Sword of Damocles!

So according to the data I saw... 3.5 million homes are now for sale... This Shadow Inventory is larger than that! The result, as this inventory comes into the market? Well... It will continue to put pressure on home prices downward... Oh boy! Just what house prices need, more downward pressure!

As this housing meltdown drags on... (and I might add, for those that were drinking the kool-aid, and wouldn't listen to me when I kept harping about the housing bubble bursting, this has got to be very painful) you can see why there are those (and I'm one) that believe the housing recovery won't come for some time... Maybe not until 2012! But probably 2011..."

And the rosy reports have shown over the last few weeks that the housing bubble fiasco has ended. It has NOT! There is much more to come. Too bad we do not have free markets. Were our markets free, the fiasco would have ended painfully, but quickly. Instead, we are being treated to more of the actions which created it in the first place. That continues is spades!

I'm looking forward to see what God has in store for us in the immediate future. I know that He loves and cares for His people in the long run. He always balances the books in the end. That is why "Vengeance is mine says the Lord." We do not always have to take revenge or balance the books on our own, because He will and it will done 100% correctly. We would goof it up. Thus, we can be still and at peace and know that He is God. We are not. And, mostly certainly, the government is a false messiah.

Best to each, Doug

I am sellling some CEF - Gold & $ Moving Down

Gold in its proxy GLD looks to be headed lower for now. It has broken below the 50 day moving average, again. This could be a longer, hotter, dryer summer in both weather and the price of gold.

The Central Fund of Canada, one of my favorites, has a double top (purple line) followed by a series of testing of the 50 day moving average and then a break through. Therefore, I am selling a portion of my CEF for two reasons: (1) I want to have more ready cash, and (2) I am going to preserve some profit by the sale. If I held GLD, I would do the same. That is what I am doing. You make your own decisions.
The US Dollar is still on a downward trend. Its 50 day moving average broke below the 200 day early June. The relative value has not broken above the 50 day moving average since well back in May. The price has been in a narrow trading range for just over a month. Not a good looking graph.
Once again, we are treated to the intervention in a way typical of recent times. Toward the middle of London trading, the precious metals are capped and slammed down. Gold has returned to 925.20 since NY opened.
Silver at virtually precisely the same time was slammed, but it is still down 0.08 to 13.17. Remember there are no free markets, only intervention. This forces us to be traders and to leave the buy and hold philosophy. We must discover buying ranges and trade in and out within the ranges. This is extremely difficult, so one must be very cautious about buying and quick to sell as the top of the range is approached. Then get ready to buy again. However, I never want to sell all of a holding under these circumstances. How long O Lord? This, as timing always is, the big question. Of course, David asked the question in regard to his struggle with enemies all about him. Of course, we should see the bullion bank boyz as our enemy.


From Chuck Butler of Daily Pfennig this morning: "Could the nascent bias to sell dollars be a result of the fact that the U.S. will once again depend on the ignorance of strangers (foreigners) and issue $35 Billion in 3-year notes today... But then, with the "new" way the Treasury allocates "who buys" the Treasuries, the Fed could step in, buy up a HUGE Chunk, and make it look like "outsiders" bought them, which would make the "deficits don't matter" flag wavers run into the streets shouting to the tune of Jimmy Crack Corn... We issue Debt, and the foreigners don't care, we issue lots of debt, and the foreigners don't care..."

Why do you think the measurement was changed? Obviously, the Fed does not want the general public to see the fall off of foreigner buying of our debt. The rosier the picture presented to the gullible of our citizens, the better they feel. Emotion drives much of the markets and the economy. Therefore, the White House and the Fed want "everything to be beautiful" or at least seen that way. We know better. Things are not always as they appear, particularly where governments are concerned.

The advantages of owning the world reserve currency Gary North's Reality Check today:
"The United States possesses a unique series of advantages as a result of its reserve currency status. These include the following:

1. The government can rely on the Federal Reserve System to create money out of nothing to buy U.S. Treasury debt, and then repay foreign central banks with this newly created counterfeit money.

2. Americans can buy imported oil in newly created dollars.

3. There is a huge market for its Treasury debt (at about 0% per annum), corporate debt, and even stocks, which foreigners and foreign central banks buy, thereby funding the nation's gigantic trade
deficit.

4. The world's commodity futures markets are priced in dollars, making it more costly to trade in other currencies."
You can get a free subscription HERE.

From WSJ Online:

Dollar's Role Under Debate In Run Up To G8 Summit

AIX EN PROVENCE, France (Dow Jone)--France, Russia and India questioned the role of the dollar as the world's reserve currency during the weekend, indicating its status is likely to be a strong talking point in this week's Group of Eight leading nations' summit in Italy. Read the article HERE.

From TheDailyBell.com:

James Turk on how the elites always destroy the paper money they value - and why gold wins

Read the article HERE.

That reminds me of what Jack Kemp said back in about 1981-1982: "We will either monetize gold or gold will demonetize the dollar."

From EnglishDongA.com:

Bank of Korea Likely to Buy Gold for 1st Time in 11 Years

The Bank of Korea has not purchased gold for 11 years, but is expected to go on a gold buying spree, as the world’s central banks have bought the commodity since the global economic erupted in September last year.

A Bank of Korea official said yesterday, “The bank has begun to set up a plan to manage foreign exchange reserves for next year. It has also closely watched central banks in other nations and trends in the global gold market. Given the changing global financial environment, the bank`s management plan is critical.” Read the article HERE.

From China Economic Net:

China encouraged to further boost gold reserves

Last Updated(Beijing Time):2009-07-06

Read it HERE.

We are being tested again. Remember that the dollar is in a long term down trend and our politicians are not about to bite the bullet and do what is necessary. They have a greater fear of depression than inflation. Because of the larceny in people, all prefer inflation, because they can borrow currency and pay back over time with currency of lesser value. Thus, the do not return or pay back with value equal to that which was borrowed. The debtors win an the creditors lose. We violate the law of God which warns that "the wicked borrow and pay not again." Just as the governments and central banks do this to the citizens, the citizens become addicted to the same larceny. Thus, FIAT currencies encourage a violation of God's Law-Word and generate a citizenry devoted to moral decay. We either follow God's Law or have chaos. Where are we now?

Best to each, Doug

Another Buying Opportunity with Metals Pushed Down

Both of our metals have been capped again in thin over night trading in Hong Kong. Gold was dropped from about 931 to below 921.

Silver was capped about 13.40 and pushed down below 13. Both have now recovered slightly. Thus, we are being offered a buying opportunity in the mining stocks. I sent out an announcement of my purchases of Helca Mining. All my purchases were executed at 2.54 which, to me, is a great buying price. If the price rebounds quickly, I will be using trailing stops on some of my shares, but not all of them.

China has moved beyond Argentina, much of Asia, Brazil, and now Hong Kong to allow trading in Renminbi. The Hong Kong banks will now be able to have Renminbi as well as Hong Kong dollars. The G-9 meeting will include China. China has a big axe to swing as it grabs more international recognition. They hold a mass of dollar instruments which they are using to buy gold and other natural resources throughout the world. Very likely their gold is ultimately to replace the dollar reserve with the Renminbi. Can it be done? If the financial fiasco continues, they can in time, but not today.

More on California woes from George Will - TownHall.com:

Can California Be Sold On Ebay's Former Leader?

by George Will

California's cascading crises prefigure America's future unless Washington reverses the growth of government subservient to organized labor. The state cannot pay its bills, poorly educates its young, and its taxation punishes whatever success that its suffocating regulatory regime does not prevent.
Read the article HERE.

California is in dire financial condition and the outcome there will have a vast impact upon all state and municipal bonds. If California can go broke, others can and will. Is California too large to be allowed to fall? I don't know, but it would be better if all our governments would shrink in size and intervention into our lives. Perhaps, the financial fiasco will force a reduction in them. Likely, not, because governments can always cancel any debt they owe. At the federal level, they can simply print more FIAT currency to defraud the holders of their debt.

From MineWeb.com:

Trusting in gold - Austria's Erste Bank

Austria's Erste Bank's latest Special report on Gold still rates the yellow metal positively as an investment. A minimally edited version of the introduction to this report is published below.

Author: Ronald Stoeferle
Posted: Monday , 06 Jul 2009

VIENNA -

Since Erste Bank's first Special report on Gold in 2007 when the gold price was USD 650, gold has outperformed almost every other asset class. The gold bull market has been running with an annual performance of 16% since 2001. Gold closed the year 2008 with the eighth annual increase in a row. And in the year to date, the performance has been outstanding as well: the gold price has recorded an increase of 7% (in USD) and 8% (in EUR), respectively. The average price in 2008 was USD 872/ounce, i.e. 25% higher than in 2007 (USD 695). Read the article HERE.

More on gold from MineWeb.com:

PRESERVING PURCHASING POWER

Gold Myth No. 1: Gold is (too) expensive

The following note is abstracted from a Special Report on Gold published by Austria's Erste Bank and written by gold expert Ronald Stoeferle. Other abstracts and analysis from this report will also be published in due course

Author: Ronald Stoeferle
Posted: Friday , 03 Jul 2009

VIENNA (ERSTE BANK) -

One might as well say that it is not the price of gold that rises, but the value of the respective paper currency that falls. Gold preserves the purchase power and in fact even increases it gradually. Comparing how many real assets one ounce of gold would buy in a historical context, can substantiate this statement. Read it HERE.

The above two articles reveal that gold is still treasured by others. The Europeans know the value of precious metals, as they have suffered during two World Wars in the last Century. Gold and precious stones were all that saved many of them during the war years. We have yet to experience the realities of their experience. Thus, our masses have no idea of the value of such items. We must pray that we never suffer as they did.

I rest in the fact that God is causing all things to work together for the good of those He loves. We are likely to experience rougher financial times ahead, but know that He is in control. Praise Him daily for His care and His grace.

Best to each, Doug

:

No Free Markets - Only Manipulation

Remembering that we no longer have free markets, we now have intervention and manipulation of all markets. It seems that the bullion banks want gold capped at 940 for the time being. Therefore, we should watch the price of gold and as it approaches 940 or goes just over, we should think trailing stops on the miners. This is particularly true if we have paper profits in some of them. I never until the end sell all of my miners, so I put trailing stops on a portion. Often, I will sell at a limit price as the price of gold rises, to obtain cash for the next slam to buy back in when prices are forced down.

Here are some of our miners with the current price and (less than price where I would consider buying). AUY 9.06 (8.25); DROOY 8.19 (7.25); HL 2.75 (2.65); HMY 9.65 (8.00); SLW 8.40 (8.00), and VGZ 1.80 (1.60). The gold cap seems to be $940 and $14 seems to be the cap for silver. Gold is now 927.60 down 12.70 and silver is 13.31 down 0.39. Both are on down ticks. All the miners are off some today.

From CoinLegislation.com:

Fair Treatment for Precious Metals Investors Act

S.1367: Fair Treatment for Precious Metals Investors Act

Summary: Seeks to amend the Internal Revenue Code of 1986 to treat gold, silver, platinum, and palladium investments in the same manner as stock and mutual fund investments for the purposes of the capital gains tax rates imposed. Read the article HERE.

This would help the metals, but is a small concession in view of the flagrant manipulation of the metals markets.

From TimesOnLine.co.uk:

How the ECB’s fig leaf has completely withered away

Anatole Kaletsky: Economic view

Now that the global recession appears to have passed its low point, panicmongers in the media and financial markets are shifting their attention from deflation to inflation — and especially to the debasement of the dollar by the money-printing operations of the US Federal Reserve. Read it HERE.

It is a race between the ECB and Fed Reserve to see which one can pump the most FIAT currency into the economies. We are "winning" so far.

From Bloomberg.com:

CFTC Looking at All Options for Fair Markets, Gensler Says

Read the article HERE.

Interestingly, there is no mention of the precious metals in this article. Perhaps, the government is too interested in keeping gold and silver capped by any means.

From of all places Rolling Stone Magazine: "The world's most powerful investment bank [Goldman Sachs] is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money." - Matt Taibbi, Rolling Stone magazine, June 2009 If you would like to have the article let me know at drewdeb@swbell.net and I'll send it to you.

Let us recall the strong Christian environment of the founding of this nation which would not exist except for the sacrifice of many and the grace and providence of Jesus Christ. This Fourth of July, let us rededicate ourselves to Jesus Christ and seek a great awakening within our nation. We have left our great God as a nation and have become a nation which worships the false messiah: the State. We must turn back before it is too late. The Lord is warning us with the judgment which is falling up us from His hands as a call to return to Him.

Best to each, Doug

The Good Old Trading Time is Here Again!

The miners have broken above the 50 moving average again. That is good. Here are our miners: AUY 9.30; DROOY 8.30; HL 2.87; HMY 10.40; SLW 8.59, and VGZ 1.79. I will be using 3-5% trailing stops on some if the price goes into the profit range for me.

Below are the 24 hour spot gold and silver graphs. Look at yesterday's trading in red. That certainly is free market activity, is it not? NO! NO! See the first reference below. Even CNBC discusses government intervention. There are no free markets in America today. We have only intervention. And until the bullion banks stop controlling the precious metals, we will have only the trading range that these manipulators allow. Therefore, I am back into trading the miners for self defense.

Gold is 937.80 up 11.80 and silver is 13.67 up 0.12 as of now. The DOW is about 8552 up 105+.


Here is a discussion on government intervention in the markets on a continuing basis from CNBC: HERE.

WOW! Even the popular media is beginning to see the light.

If it quacks like a duck and walks like a duck, it is not always a duck in the case of government and pseudo government statistics. Here is an example from Chuck Butler in the DailyPfennig.com: "A story, by Min Zeng, titled, "Is Foreign Demand As Solid As It Looks?

These are the things that really TICK ME OFF folks, so stay with me on this... Basically, as we all know the U.S. Treasury Auctions have been getting "covered" easily recently... And foreign demand was listed as the reason... Which would have been the exact opposite of what I was saying about foreigners shying away from Treasuries...

Here's the skinny... But I'll let Min Zeng tell it, since he did the research and brought this to the public, even though it was tucked away so no one would notice!

"But in a little-noticed switch on June 1, the Treasury changed the way it accounts for indirect bids, putting more buyers under that umbrella and boosting the portion of recent Treasury sales that the market perceived were being bought by foreigners.

The new definitions are deep in the arcane world of Treasury auctions. The change involves buyers who place orders through primary dealers. Those had been counted as direct buyers, but as of June 1 they were classified as indirect buyers, making that group larger than before. Because investors view that group as being dominated by foreign buyers, they assumed foreign demand was higher.

>>>> OK, back to me... Ahhh, so that's what's going on... The Treasury "moved the goal posts on us"... As Sylvester would say... That's despicable! Why isn't someone in Washington D.C. shouting from the roof tops about this? Oh, that's right, they're all in cahoots!

This is HUGE folks... So... When the markets were thinking that foreign demand was increasing, it was actually, as I had said, shying away from Treasuries! Which, if the market participants are thinking that as long as foreigners are "buying into our deficit spending" then the dollar will be on terra firma, but instead are getting "duped" by the U.S. Treasury, you would think that someone would have some xplainin to do... Right Lucy?"

By the way, Chuck does a great job on currencies. You can visit the site to get a free subscription. He is never mealy mouthed about his comments. I appreciate his articles very much. In this case, we are being deceived as to the percent of foreign buying of U.S. debt. It is shrinking as reported from across the globe, though not here.

From Bloomberg.com:

Sterling Crisis Looms as U.K. Unraveling Points to Budget Cuts

Things are rotten in Denmark, oops, the UK. Read it HERE.

James Turk of GoldMoney.com has posted a new commentary comparing the price of precious metals in various currencies. It is of interest to all. Read it HERE.

We will have a rough time ahead in the markets, because they are not free and defy accurate prediction. The intervention is political at the core, but in precious metals the prices are manipulated by the bullion banks to their advantage. This is much more than insider trading, it is direct, immoral, and illegal action to control the prices of the metals by bullion banks backed by the Fed and Federal Government. It is designed to take advantage of investors and the technical traders. The bullion banks hold a great number of shorts which they cover from time to time as they sell into the market and force the price down. When it is down they buy long contracts and add shorts as the price increases. Then they do it again. How long O Lord? How long will they be allowed to defraud the public?

Until they stop, I will be buying in on the miners as they drop down and putting in trailing stops as they rise. This can be a profitable way to handle the manipulation, but there will come a time when the bullion banks lose their control. When is unknown to us.

It is known to our Sovereign God who is in absolute control. I rest in Him and am content that He is in control. He loves and cares for His people, thus we can be at peace.

Best to each, Doug