Somethings about to brake?

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investorzzo
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Somethings about to brake?

Can you feel it? Seems like the quickening is speeding up. Bob Chapman is calling for a military coo in Greece by the end of the month, as they default. Russia imposed another embargo on grain exports. Japan weakens the Yen and buys the dollar. Lets take a closer look.

As many of you are no doubt already aware, the Bank of Japan finally, finally, intervened after several weeks of increased hand-wringing regarding the extremely high level of the Yen. They have not done this since 2004 ( I might add I was on the receiving end of that ‘whoopin’ at the time). Quite frankly I am surprised it took them this long although the recent elections probably had a great deal to do with delaying the onset of what nearly every Forex trader on the planet has been expecting for some time now. The reason – once they start ratcheting up the rhetoric, especially if those pesky speculators do not turn tail and run over verbal threats, their credibility is on the line and act they must if they are to maintain the respect of the speculative community. They mauled the Yen overnight with the result that the Dollar managed to move up and away from the 81 level. The key now will be to see how effective their intervention was and whether or not the speculative community is in a mood to test their resolve.

The result of this was that the price of Gold in Yen terms shot up quite sharply overnight. The stronger yen had been enabling Japanese citizens to acquire the metal at what was probably a type of discount compared to what the rest of the world has been paying lately. As you can see on the chart, when viewed in terms of the yen, the price of gold has not been nearly as strong as here in the US and elsewhere.

http://jsmineset.com/

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John Williams: Current projections on the federal budget deficit, U.S. Treasury funding needs, banking industry solvency stress tests, etc. all have been predicated on some form of economic recovery.  There is and will be no recovery for the foreseeable future; and the negative implications of that for U.S. funding needs and for systemic stability should act as eventual triggers for massive dumping of the U.S. dollar.
September 14, 2010
 
Williams continues:
...The image of tap-dancing on a land mine pretty much describes what the Federal Reserve and the U.S. Government have been doing in order to prevent a systemic collapse in the last couple of years.
Now, as business activity sinks anew, much expanded supportive measures will be needed to maintain short-term systemic stability.  Such official actions, however, in combination with global perceptions of limited U.S. fiscal flexibility, likely will trigger massive flight from the U.S. dollar and force the Federal Reserve into heavy monetization of otherwise unwanted U.S. Treasury debt.  
When that land mine explodes — probably within the next six-to-nine months, the onset of a U.S. hyperinflation will be in place, with severe economic, social and political consequences that will follow.
...Already the longest and deepest economic contraction of the post-World War II era, the current downturn in the U.S. economy is re-intensifying, with no near-term stability or recovery on the forecast horizon.
...In these circumstances, the financial markets likely will be highly unstable and volatile.  Holding assets outside the U.S. also may have some benefits.
Yes indeed the financial markets will be highly unstable and volatile.  Let’s not forget, no recovery, more monetization and the threat of systemic collapse.  
With the stock market near the end of this long rally, the mainstream media continues with the big lie, stating that we are in a recovery.  The sad reality is that the nation is in fact on the brink of another crisis.  As these types of cycles progress there is increased flight from paper assets.  Get ready for another move higher in the http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/14_Jo... index.

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Gold is attacking the previous record high in European trading and silver is moving towards $20.50.  In an interview with King World News from Spain, James Turk stated, “We are very close to the upside explosion.”  You have to remember that Turk has been following gold and silver since the early 70’s, and there are not many people around that have that much direct experience in these markets.  The following are his thoughts on where we are...
September 14, 2010
    
James Turk:

This is a 1970’s type of market, we haven’t seen this type of trading action for 30 years. I’m not just talking about the precious metals, I’m talking about all commodities across the board.

The bell rang in 1973 when the Soviet Union imposed an embargo on grain exports, after that, the commodities markets went wild. The bell rang again last month when the Russians imposed another embargo on grain exports, and here we are seeing commodity markets starting to go wild once again.

The bottom line is that I think we can expect higher prices in tangible assets across the board, and gold and silver will lead the way.

When asked about gold and silver specifically Turk responded, “Once we are over this $20.50 to $21 area in silver, we will explode.  The fact that silver is leading means that gold’s time for breaking above the previous high of$1,260 is at hand.”

James is continuing to note the importance of the change in the trading habits of both metals, but with regards to silver specifically Turk stated, “We were down 20 cents or so after-hours yesterday, briefly dropping below a spot price of $20.00, but if you blinked you missed it.”   

As Turk has been indicating, pullbacks are proving to be short and shallow in the metals and then the markets immediately turn higher.  This action continues to be aggressive with volatility only the most seasoned professionals can understand.

Gold is attacking the previous record high in European trading and silver is moving towards $20.50.  In an interview with King World News from Spain, James Turk stated, “We are very close to the upside explosion.”  You have to remember that Turk has been following gold and silver since the early 70’s, and there are not many people around that have that much direct experience in these markets.  The following are his thoughts on where we are...September 14, 2010    James Turk: This is a 1970’s type of market, we haven’t seen this type of trading action for 30 years. I’m not just talking about the precious metals, I’m talking about all commodities across the board.The bell rang in 1973 when the Soviet Union imposed an embargo on grain exports, after that, the commodities markets went wild. The bell rang again last month when the Russians imposed another embargo on grain exports, and here we are seeing commodity markets starting to go wild once again. The bottom line is that I think we can expect higher prices in tangible assets across the board, and gold and silver will lead the way.When asked about gold and silver specifically Turk responded, “Once we are over this $20.50 to $21 area in silver, we will explode.  The fact that silver is leading means that gold’s time for breaking above the previous high of$1,260 is at hand.”James is continuing to note the importance of the change in the trading habits of both metals, but with regards to silver specifically Turk stated, “We were down 20 cents or so after-hours yesterday, briefly dropping below a spot price of $20.00, but if you blinked you missed it.”   As Turk has been indicating, pullbacks are proving to be short and shallow in the metals and then the markets immediately turn higher.  This action continues to be aggressive with volatility only the most seasoned professionals can understand.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html

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Wednesday, September 15, 2010

Sept 15.2010 commentary.

Good evening Ladies and Gentlemen:
  
Gold closed today down $3.00 to 1266.70.  Silver on the other hand rose by 14 cents to 20.54.
 
It gets really interesting as the comex released its open interest for both metals.
 
I nearly jumped out of my chair when I saw that the open interest on the gold comex rose by an astonishing 16,068 contracts
 
and now tonight the OI sits at 594,058.
 
The silver comex OI hardly budged losing a tiny 74 contracts to sit at 144,748.
 
Please remember that both of these numbers are basis Tuesday night.  ( we are always 24 hours behind).
 
The banker cartel knew in advance this morning the OI for gold and silver.  As is their custom as soon as the OI approaches 600,000 on gold
 
the raid commences in earnest.
 
Today they raided but they huffed and they puffed and gold and  silver refused to buckle.  Actually, silver was down to the early 20's  and resumed
 
its northernly trajectory landing in positive territory and then never looked back.
 
I am afraid to report that the banking cartel have summoned another of those midnight meetings trying to access the damage.
 
Many have asked me how many tonnes of gold, the banks are short.
 
In my humble opinion, they are short anywhere from 15,000 tonnes to 22,000 tonnes.  In silver, probably 1 billion oz.
 
These metals have been leant and then sold for dollar bills and never repaid back to the central banks.  On their balance sheet of the central bank is one line: gold and
 
" gold receivable".
 
The loaned gold and the loaned silver will never see the central vaults from which it came.
http://harveyorgan.blogspot.com/
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Wednesday, September 15, 2010

Mohamed El-Erian, Yen Intervention Unlikely to Succeed

Sept. 15 (Bloomberg) -- Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., talks about Japan's intervention in the foreign-exchange market to weaken the yen. El-Erian, speaking with Tom Keene and Ken Prewitt on Bloomberg Radio's "Bloomberg Surveillance," also discusses the ineffectiveness of economic policies. (This is an excerpt. Source: Bloomberg)

 

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