Thoughts on Markets

Monday, August 30, 2010

Public Schools - Gold - Silver - Miners - We are following Japan

From MineWeb.com:
Fear stalks the markets and gold and silver benefit
The prices of gold, and silver, are still being maintained by fear of stock market collapse in the West and the beginning of a feeling that higher prices may be here to stay in the East.
Author:Lawrence Williams
Posted: Friday , 27 Aug 2010

LONDON

Some poor U.S. economic data - again - so the doomsayers are predicting more market mayhem and major stock markets have been slipping as a result.This seems to be growing and placing a greater demand upon gold and, to a lesser extent, silver. Both will benefit greatly as the fear spreads. HERE.

From MineWeb.com:
China's resource hunger, where to from here
China has, almost single handedly, supported global commodity markets through major growth as other economies have stuttered, how did it come to pass?
Author:Barry van Wyk (The Beijing Axis)
Posted:  Friday , 27 Aug 2010
By the start of the 2000s, China embarked on a new path of industrialisation and development that demanded a reconfiguration of its supply of natural resources. By the end of the decade, the China Factor had become a synonym for an irrepressible engine of growth that was singularly driving global demand for natural resources. How did this happen? Interesting thoughts. HERE.

From MineWeb.com: 
How will gold perform in a double-dip recession?
As the U.S. economy heads for a double dip it will likely try and inflate itself to avoid a depression. Meanwhile major economies are already diversifying out of the dollar.
Author: Julian D.W Phillips
Posted:  Saturday , 28 Aug 2010

BENONI (GoldForecaster.com) - 

Nearly all the commentary we have heard on this question says the same. "Yes, the prospects of a Double-Dip recession have increased but it remains unlikely that it will happen". We feel that there may be just a hint of self-interest in these answers. Washington would never deceive the citizens, would they? YES, and ALWAYS! HERE.

From The Daily Pfennig (Pfennig@everebank.com): "Well... The Japanese yen is back below 85 this morning, rally again VS the dollar, as there has been not one follow up word or action by the Finance Ministry or Bank of Japan (BOJ) with regards to intervention to stem yen's rise VS the dollar. The BOJ did announce that they were adding 10 Trillion yen ($118 Billion dollars worth) in liquidity injections...

I find this all to be like rearranging the deck chairs on the Titanic... Monetary Policy isn't going to stop this yen strength... Even "bad" monetary policy like this!

Long time readers know all too well, that I've said that the U.S. was following Japan for years now... Recall the Vapors' song, I'm turning Japanese, yes, I really think so... The reason I bring this up again, is the that you see Japan 15 years after their meltdown, and 15 years of economic doldrums, still attempting to "stimulate the economy"... Is that a glimpse into our future?

I don't know the answer to that, all I know is that everything Japan has done for the past 15 years, is being duplicated by the U.S. . . .

Think about that folks... Japan ran their national debt to levels not seen before, and their economy never has fully recovered... The U.S. has run their national debt to levels not seen before in this country... Will that be a drag on any economic recovery? You bet your sweet bippie it will!"
Chuck is dead on with this. If this doesn't lay it correctly on the line for you, I do not know what will. Could it be that there is a concerted attempt to destroy the middle class and make us a fourth world nation? Maybe this is just more of God's judgment upon us for turning our backs on Him.

From Gary North via LewRockwell.com:

An Unofficial Translation of Bernanke's Jackson Hole Speech, Part 2
Here we get to where the rubber meets the road.

In the remainder of my remarks I will discuss the policies the Federal Reserve is currently using to support economic recovery and price stability. I will also discuss some additional policy options that we could consider, especially if the economic outlook were to deteriorate further. This is a good analysis of Federal Reserve and Washington policies for destruction of the dollar. HERE.

From John Taylor Gatto via LewRockwell.com:
Chapter 3 of The Underground History of American Public Education
The School Edition
I always knew schoolbooks and real books were different. Most kids do. But I remained vague on any particular grounds for my prejudice until one day, tired of the simple-minded junior high school English curriculum, I decided to teach Moby Dick to eighth-grade classes. A friendly assistant principal smuggled a school edition into the book purchases and we were able to weigh anchor the next fall.
What a book! Ishmael, the young seaman who relates Melville’s tale, is a half-orphan by decree of Fate, sentenced never to know a natural home again. But Ahab is no accidental victim. He has consciously willed his own exile from a young wife and child, from the fruits of his wealth, and from Earth itself in order to pursue his vocation of getting even. Revenge on the natural order is what drives him.
War against God and family. To me, it defines the essence of Americanness. It’s no accident that America’s three classic novels – Moby Dick, The Scarlet Letter, and Huckleberry Finn – each deal with ambiguous families or that each emerges from a time not far from either side of the Civil War.R. J. Rushdooney in his Institutes of Biblical Law warned that for Christians to send their children to government (public) schools is an act of apostasy. This is never more true than now. Government schools have become the primary means to dumb down Americans. This is one of the main reasons that citizens are ignorant on the Constitution and have developed an anti-Christian bias. This is a must read for all parents and grandparents. HERE


 Here is the latest on Hecla Mining which I promised at the end of last week. (Do not forget to review the graphs and comments on Friday's posting. Some of you missed it.) These graphs tell us a good bit about what the market sentiment is. Remember that they are always a representation of prior action, but we can interpret trends and move in accordance with the trends. Fighting the trend is not normally a good idea. A golden rule of trends is that they continue until they end; however, we look at the volume of trades to attempt to foresee the end. The bull market in gold and silver remains solidly in place and the fundamentals of the economic situation and the actions of the Fed are headed toward a continuation of this trend. Back to Hecla, we find that it acted much better last week as silver bested 19 before being whacked down again. There is an enormous number of commodity shorts on silver held primarily by JP Morgan and 3 other bullion banks. Thus, there is an ominous dark cloud over silver. However, some day these will have to be unloaded. Last week gave an example of what can happen when the metals are allowed to trade freely. Below, is the annotated StockCharts.com graph of HL.
































































Miners from Scottrade.com:


























Currencies from Kitco.com:




























Some Prices: FVITF 2.37 (Still Running Strongly); GBG 2.12; TLT 106.43; TBT 31.32; DOW off 24 to 10128.78; SPX off 2.30 to 1062.27; Gold off 1.50 to 1236.60; Silver off 0.03 to 19.08 (Holding above 19 which is really good).

It has gotten late, so must go. Keep your focus upon King Jesus and His word.

Best to each, Doug

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