Thoughts on Markets

Thursday, May 06, 2010

No Free Markets, Only Intervention

The boyz acted viciously yesterday against both of our precious metals. Silver was definitely hit the hardest.


More on the intervention from the Daily Pfennig:"Speaking of Gold... You know earlier this week, I told you how Gold was moving close to $1,190... But then the trap door sprung, and the shiny metal fell hard... Was there any reason for this fall? NO! And if you're like me, you see this and think... "The price manipulators are back in the market"... I mean, to me, that price action smelled of price manipulation by the BIG BOYS in an attempt to make Gold look bad, while stocks were getting deep sixed... For... If investors are fleeing stocks, they need someplace to put their cash to work... And if Commodities, led by Gold, are getting deep sixed too, along with currencies, then the only place to go would be bonds... Oh, boy, give me some more of those "safe haven" bonds! NOT! But... That's what's happening folks... I told you yesterday that the 10-year Treasury saw a 10 BPS move in one day! That required a TON of purchasing to do that... And the Gold Manipulators just happen to be BIG BOND DEALERS... Hmmm, you don't think that they figured this all out ahead of time, and moved investors on purpose do you? OF COURSE I DO! And you should too!"

From FGMR.com:

Is the IMF’s Gold Really There?

May 5, 2010 – Much has been made over the gold purportedly owned and controlled by the IMF. There are many unanswered questions about this gold’s true status, and more to the point, whether this gold is really nothing more than phantom bookkeeping entries.

Instead of owning gold, the IMF may just own claims to the portion of the “Gold & Gold Receivables” that was ‘paid’ to the IMF as subscriptions for membership by the countries that joined the IMF. In other words, through their central banks, countries have given a claim to the IMF for the gold reserves they have in their vault, if any, and the gold they have removed from the vault to loan to bullion banks as a fundamental tool of the gold pri9ce suppression scheme so thoroughly and painstakingly documented by GATA since its founding more than ten years ago.

So does the IMF really own gold? Or does is only own claims to gold, some or all of which has been removed from central bank vaults and loaned? Read it HERE.

From KingWorldNews.com:

Explosive Gold Catalyst

Eric King: Explosive fundamental developments for gold are in the works as a reconfiguration of the monetary system is close at hand. One week from now the Swiss National Bank (SNB) and the IMF will host a High-Level Conference. “The key objective of the conference is to examine weaknesses in the current international monetary system, and identify reforms...” The joint SNB/IMF press conference that will follow afterwards should provide important clues as to the future. Read it HERE.

From Bloomberg.com:

Fed Faces Deflation With Few Weapons, Rosenberg Says: Tom Keene

By Mary Childs and Tom Keene

May 5 (Bloomberg) -- The Federal Reserve should be worried about deflation and has few weapons left in its arsenal to combat it, according to David Rosenberg, chief economist of Gluskin Sheff & Associates Inc. in Toronto.

Excess capacity in manufacturing, labor and housing is pushing prices down, Rosenberg said in a Bloomberg Radio interview today with Tom Keene, and interest rates at record lows leave the central bank with little means of countering deflation.

“What are the other options?” Rosenberg said. “Can they cut rates below zero? Well, unlikely. So what’s really going to be left? What is going to be the bullet left in the chamber to deal with the outright deflation?” Read it HERE.

Miners from Scottrade.com:

Currencies from Kitco.com:

Some prices: BYDDF 8.82; 2.0914; EXGMF 2.844; TBT 42.93; TLT 94.13; Gold up 7.30 to 1182.90; Silver down 0.03 to 17.47; DOW off 33 to 10835.

The boyz have given us buying opportunities in the miners and are likely to do it again tomorrow. We will have to wait and see.

Keep your focus on the Biblical world and life perspective to follow the Law-Word of God for life. To choose other is death.

Best to each, Doug




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