Why you (probably) need more gold

What about stealth inflation?  You know where the price stays the same but they give you LESS product.  My wife calls it lying through omission, like when my wife ask "Why didn't you tell me you went to Hooters?"and I answer "because you didn't ask"!!!

Gold and silver are the antithesis of fiat money. They are the only way to restore order out of chaos. Look for this liquidity being produced by our government to push up the price of stocks and bonds before they collapse. Even speculative paper is selling at its fastest pace in a year. Others think that gold and silver are the place to be as their prices are going up. Investors are chasing yield and that is the worst possible thing that you can do. You begin to sacrifice quality and junk is eventually destroyed. The Fed and the Treasury have created an intolerable situation for those who need income. I speak of the retirees in their 70's and 80's who are forced to chase yields.

And a first has happened that has not been seen in a long time. The bullion banks as they are known are Citi Group. Wells Fargo, JP Morgan, Hong Kong Shanghai Bank. Goldman Sachs and BOA.  They are the banks that traditionally have been given the job of suppressing the price of gold and silver on the various exchanges, especially the COMEX, which is also known as CRIMEX. Recently, on Sept 30, 2010 there were thousands of gold and silver options that were set to expire on this date with the expiration price being $1300 for gold and $21.50 for silver. If on that date, gold and silver finishes lower than these two prices, the options are then said to be "out of the money" and expire worthless.

Routinely, 85% of all options expire worthless, and this is done via manipulation. (FRAUD) Especially, talking now about gold and silver options and gold stock options.  Buying options on gold and gold stocks have mostly never been worthwhile. They may be from now on anyway: watching this date, Sept 30th, with intensity because the buying of gold was so strong; wanted to see if the gold and silver shorts could be overcome. It would be a first in a long time. Lo and Behold, the shorts were left in the dust. The banks must now cover their shorts unless they want to lose billions. Cover means to buy back the gold and silver they sold at a lower price. They pay the higher price and lose the difference. Beautiful! To explain the following:

JP Morgan is the prime lead bank in doing this. It routinely floods the gold and silver markets with NAKED short futures contracts. Naked means they do not have the silver and gold to sell short.  It is without the metal collateral. JPM and the other banks appear totally exempt from collateral rule enforcement.

JPM and the large bullion banks seem to hold huge concentrated positions that never seem to diminish, but rather grow each and every year. The size of their total position is usually greatly in excess of annual global production and has no possible bearing on mining operations.

JP Morgan routinely sells gold and silver futures contracts during thin market times like early in Asia, and even enlists small platoons of metal traders to join them with subtle hints and messages. They strangely show no appearance of seeking the highest metal prices.

JP Morgan and the other bullion banks routinely manage the exchange metals inventory with fractional techniques, whereby 100 times as much metal is sold than exists. This part of the Ponsi framework.  Thus, JP Morgan routinely win big short term profits from rigging these markets, but these gains are set up by ruinous long-term positions that never go away and always get larger.(Tyler Durden Article, Gata Article)

People are terribly misled by propaganda of the worst sort. Gold is not in a bubble but really at the beginning of the greatest move it has ever seen. You have not seen anything yet.  Both of the precious metals are in a long term trend not to end for at least several years from now. Again: Gold and silver is in the biggest bull market in the history of bull markets. However, gold is overbought and can have a correction. Something can be overbought for quite a time. Nothing goes straight up. If gold does correct, it is just another buying opportunity.  Gold will to go to 1400 next. After that, move on to $1650 and then 2000. The timing is difficult, but not more than two years.

The Fed is stuck in a corner. They can only increase the money supply and the credit supply. That is it. They cannot increase interest rates as it would destroy what is left of anything. The Fed will have to come up with at least 2.5 trillion dollars extra or annually for the next five years.  The next QE will have to raise at least $500 billion. That is addition to the normal 2.5 trillion…do the math.

The Entire banking system is a train wreck that is going forward. The debt accumulated and the fraud to hide it off the balance sheet is horrendous just in thinking about it. The banks, all of them, have more expense than revenue. The main problem is that the real estate securities on their books are only worth on average 22 cents on the dollar. The solution is to let all the banks go under, to restructure, and start over. All the banks, presently, as I investigate it, have a return on investment of ZERO. Despite mammoth monetary inflation and outsized banker welfare programs, the fiscal experiment is falling before our eyes. The repeated quantitative easing will fail to turn the tide. Thus the U.S. economy is at grave risk for a deep depression. The financial sector elite syndicate (as it is now called) on Wall Street is the only priority of present monetary policy. The U.S. Fed is the main destination to park funds. The economic fallout (malaise) is not a concern, except to promote additional rescue packages, again all for banker benefit, with very little going to Main Street, which is being strangled.

If I need gold to pay for food and other necessities.

If it comes to that ,  you better have enough guns

and ammo!

Geeze you guys.  Remember Econ 101.  Lets face it.  EVERYBEODY wants to devaue their currencie to create a favorable trade balance for their country.  If a countries currency is worth less than the country they are trading with; willl look like cheap good to the customer.  Gold runs the INVERSE of the dollar (yuan, fraanc, etc)  The more a currency goes down, the higher gold will go.  Regardless of the markets or any thing else.  The value of the dollar goes down every time ben Bernanke opens his mouth,  It is a very big concern for the G7 and the IMF.  They stand ready for a concerted global effort to devaue fiat currency.  It is the only way all the countries of the wirld can get out of debt.  They balance the budget with dollars that are worth far less than the dollars they borrowed.  If you were going to pay back a debt, wouldn't you prefer to pay it with dollars that are worth .25 insstead of a dollar that is worth .95?  It is sneaky little trick on the people, but dollars to doughnuts, that is what they will do.

To devalue the dollar, you can just let inflation run it's course, or you can have a formal devaluation.  Every time inflation goes up, the value of our dollar oges down.  But national debt is getting far too high.  I think the united states will have to have a formal devauation of the dollar.  As will many other countries.  This weill probably be announced on a Saturday when the banks are closed.; and people will trade in their old dollaras for a larger amount of the new dollars.

The thing that has kept the dollar as high as it's been, is that it is supposed to be the currency countries trade it.  If Brazil wants to buy something from China, Brazil goes to the bank and gets dollars, does there trade, and China trades the dollars back in for their yuan.  Now countries are trading amongst themselves without the dollar.  The dollar can no longer be the currency of trade.  ZAM! WHAP!BONK! on our dollar.  We are seeing only downward pressure on the dollar.

Now what did we learn in the first paragraph!  The dollar and gold runs on the INVERSE.  Meaning if the dollar goes up gold goes down.  If th dollar goes down, gold goes up.  Kind of like the 'physics" of economics.

I suppose, if you were dealing with a very smart shop-keeper you could barter gold for goods.  A bit smarter way would be to sell your gold for whatever dollars you could get, and then just simply purchase what you need.  Yeah, it takes a bit of foresight, but coming out okay will take alot of foresight, or else a boat load of luck.

I hope things done't come to guns.  Ya now it really doesn't matter how many guns you have.  It how many bullets you have.  And even if you shot the guy with all the gold, will you know what to do with it?  Maybe in behooves some people to find out.