Thoughts on Markets

Monday, December 13, 2010

Judgment upon America - Miners - Currencies - Gold & Silver - China


There is a scary passage in Romans Chapter 1 that everyone should read to understand what has happened here in America. Every Christian should know the truth of this and those of you who are reading it for the first time will recognize the significance of it. 

"For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men, who repress the truth in unrighteousness, because what may be known of God is manifest in them, for God has shown it to them. For sense the creation of the world His invisible attributes are clearly seen, being understood by the things that are made, even His eternal power and Godhead, so that they are without excuse, because, although they knew God, they did not glorify Him as God, nor were they thankful, but became futile in their thoughts, and their foolish hearts were darkened. Professing to be wise, they became fools. . . . .Therefore God also gave them up to uncleanness, in the lusts of their hearts. . . ." (Rom. 1:18-24)

The terrible truth is that God has given America over to their own desires. His judgment is here and we can see the symptoms all around us. America has become a predominantly pagan nation as God has given us our hearts desires. He has done this to reveal our sin and worship of the false messiah of the state upon which a great number are totally dependent. God will never bless America until His people will humble themselves before Him, repent of their sin, forsake their evil ways, and turn back to Him. We must do this as individuals, families, and churches. The churches must lead the way and many are miserably failing to do this. Each person must be as the Bereans who were more noble than the Thessalonians in that they searched the bible daily to see if what Paul was telling them was in concert with Scripture or not. This we must do to determine if our church is a true church.

From The Daily Pfennig ( "Here's the skinny. Chinese inflation (CPI) rose 5.1% in November, with food prices rising the most (sound familiar to here in the U.S.? . it should!). On the economic growth chart, both Retail Sales and Industrial Production beat estimates. Retail Sales grew 18.7% in November, while Industrial Production soared 13.3%... Now. where are all those guys? I told you, dear reader, that these guys didn't know what was going on in China, and this proves it. I also told you that China was merely trying to slow down or moderate their economy, not shut it down, and again, these data prints prove that point too!

So. here's what to expect next in China. Interest rates are going to have to be raised, and not a moment too soon! And. Reserve Requirements will be raised again too! And once again, we'll hear the calls for a collapse of the Chinese economy. And. that those calls will hit the pressure points of Commodities / risk assets/ and the currencies that enjoy their trading relationship with China. (Australia). But I wouldn't let this get in the way of your thoughts to own these currencies or commodities, because as the past shows us. they get beaten down, when the so-called experts spout off about China's economy slowing down. and then recover and rally, as those naysayer thoughts fade." There is much discussion on the Internet about the coming collapse of China. I believe that China is the new power house of economies in the world. Their currency is certainly quite strong, band the vast population is beginning to taste a bit of prosperity. The Chinese are also knowledgeable about precious metals, particularly gold. They, also, have a history of being frugal savers. We in America have given up whatever knowledge of gold and decades ago gave up savings in favor of consuming. We put our trust in our "rich" Uncle Sam to cover us from the cradle to the grave. Thus, we are trusting a bankrupt earthly savior instead of the faith of our founders in the Sovereign God of all. Thought the Chinese are not predominately Christian, they are practicing, successfully some biblical principles and are being rewarded by the practice thereof.

Indian gold buying unabated but carats lower
As the wedding season commences, shoppers in Mumbai continue to snap up gold jewellery, albeit of a lower carat, despite the fact that the yellow metal continues its climb to record highs. HERE.

Gold edges above $1,390
Physical buyers came back into the market Monday after a price dip of more than 2% last week. HERE.
Central banks don't consider it gold manipulation, but part of their job
James Rickards explains why Central Banks consider their gold activities just part of their job and, inter alia, why Germany should remove its gold from the US. One of my sayings is that a Rose by any other name still has thorns. Part of their job, is just another way of justifying their intervention in the metals markets. They are working to preserve the fraud of unbacked paper currency and against individual freedom offered by gold and silver money. HERE.

A.M. Kitco Metals Roundup: Comex Gold Firmer on Short Covering, Some Fresh Safe-Haven Buying
13 December 2010, 8:18 a.m.
By Jim Wyckoff
Of Kitco News HERE.

Gold:Silver ratio may move back in favour of gold - SocGen
SocGen technical analysis suggest that the gold to silver ratio may move back in favour of gold from currently around 47 back to around 56 or higher. HERE.

Miners from

Currencies from

Some Prices: FVITF 4.55 (Our EveryReady Bunny continues to rebound after every hit.); BULM 1.21; SILA 0.46 (I have sold all of mine.); HHWW 2.751 (Still wondering if I should buy, but lost out on my offers a while back.); OLVRF 1.7925 (Is this to be and additional Bunny for us?); DOW up 21+ to 11431.02; SPX up 3.35 to 1243.8+; Gold up 10 to 1396.80; Silver up 0.95 to 29.63 (Metals acting with strength.)

Best to each, Doug



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