Thursday, November 5, 2015

Getting Ready For the "One Big Run"

The great hockey player Wayne Gretzsky was great not because he knew where the puck was- but because he knew where the puck was going to be.

In May of 2013, Ben Bernanke began his "we're going to raise rates" bullshit which is the last policy tool the Federal Reserve has left before introducing negative interest rates.

A few of us who understand our debt fueled fiat currency scheme- knew this was bullshit. In fact, I wagered one ounce of gold with some moron back in April that the Fed wouldn't raise rates- this after they said they were going to raise interest rates in May or September. I have not heard from the moron since then nor was I too concerned about losing my gold.

Now the latest rhetoric is Janet Yellen saying they may raise rates in December which is also bullshit. I will take all bets to the contrary. 

For two and a half years I've been listening to this gibberish. At some point, you'd think the American people might wake up and figure this out but alas this country has a long history of being slow on the uptake. I on the other hand, have been keeping track.

In addition to the non stop rhetoric coming from the Fed, they have also been engaged in non stop manipulation of the precious metals markets. They do this to prevent a run into metals which in actuality- is a short on the dollar. If everyone suddenly realized that not only are we bankrupt but that our dollar is worthless- they might start trading dollars for something which is tangible and has value. So in addition to lying to us about nominal rate hikes which have never materialized- the Fed has no choice but to make precious metals look unattractive to investors- thus keeping demand for dollars intact. They do this through the bullion banks which are Fed shareholders. Pretty easy to figure out really- except that the Fed has always refused to disclose it's shareholders and internal operations. It operates above the law with essentially no oversight.

The problem the Fed has now is that they have been suppressing the paper price of precious metals for so long- that the rest of the world has been buying up actual metal inventories. The Chinese are avid gold buyers and at least one company, Zijin Mining, is busy buying a stake into lucrative miners all over the world. Russia and India have been gobbling up supply as well.

With the precious metal lynch mob that is the rest of the world closing in- I don't think the Fed nor the President's Working Group can hold off the demand storm that is coming. The longest precious metals bear markets have lasted 5 years. We are months away from the end of a 5 year bear market which began in 2011.

I have been waiting for the last washout which I think will occur by January when gold trades below 1050 and possibly into the 900s. It may get there much sooner. I think mining stocks will get trashed. At that point, I am going to start buying every lucrative miner I can get my hands on. I am also adding to my physical stores and buying calls. I have as much "powder" as I can muster, a complete list of lucrative miners including some takeover candidates and I have been watching fringe players like bitgold. I like the idea of bitgold especially because American banks are now preventing Americans from purchasing Canadian pharmaceuticals using Visa and Mastercard. With a prepaid bitgold card- we may be able to circumvent the grasp of American bankers who have absolutely no problem interfering with our ability to spend our own money. Here is a good link about bitgold and some of the dangers.

In a number of deals- I have noted that even the miners are buying up the best assets. Here's a link which gives you an idea of what is going on.

I honestly believe this is an investment opportunity of a lifetime. We have a bankrupt world that can do nothing other than try to print itself out of the tremendous hole it has dug itself into. As people scramble to protect wealth- out of paper instruments and into tangible assets- wouldn't it be nice to be there first like Wayne Gretzky?


Falcon said...

This post could not have come at a better time. I just bought a little more silver only to hear the wife complain again. Maybe after she reads this maybe the idea of having a little back up might not be such a bad idea on my behalf. Thanks

Anonymous said...

The powers that be will never let gold and or silver rise.
As long as T.P.T.B. control the paper market they control
the universe. All the talk of China, India and Russia buying
mass quantities makes no difference. If you go out into the
general public and ask any person if they would rather have
a silver bar or a Hershey's chocolate bar guess which one
they will choose. Don't look for silver or gold to reach any
kind of "crazy" highs for about twenty years. That is because
T.P.T.B. will keep this game running longer then anyone thought
possible. Here is the Hershey Bar/Silver Bar 3 minute video.

Anonymous said...

Hershey Bar or Silver Bar

Falcon said...

My God I just watched that Hershey Bar/Silver Bar.... I just don't know what to say about that, not even one person took the silver bar.

Brian said...

That's because we have a nation full of dumb shits. They really are that stupid. Remember- they vote. Obama is your President. Questions?

Falcon said...

I am starting to beleive Anonymous is right. T.P.T.B. have a tight grip on just about everything especially pulling the strings on that PUPPET in the Whitehouse. No one, and I mean Obama, who is in a world leadership role, can be that oblivious to the state of this country's economy. Most of Washington's finest only know one thing - Pass the higher debt level and everything will be just honkey - dorey. Sorry, but a freaking Hershey Bar just ain't going to fix that.

PeterE said...

To Falcon:
Don't tell your wife when you bring more useless metal home. And don't have her read this. It wont help. Just keep stacking quietly in the background. Simply write "I told you so" on a bit of paper and put that paper in an envelope. When the time comes, give her the envelope, and show her the stack. Only problem is that time may well be some way off.


I, like you, would be very surprised if you have a rate hike in December. Our Aussie reserve bank is still talking about cuts, and our economy isn't as bad as your IMO. What will happen for you in December is the *talk* of another rate hike being just a fraction of an inch away... they were about to do it but thought it prudent to hold off for some reason. Who knows - they might be working on that reason (war, terrorist attack, uprising, commodity price jolt, rabid penguins...) right now

I think I have bad news. I don't think we are quite there yet. I don't think January will see the metal bears retreat into the woods to hibernate. I don't doubt gold will drop in price, the current efforts to suppress prices are going splendidly, I just don't think that the suppression will end by Jan 31. I believe the market manipulation will go on for many more months, possibly years. I'm sure there is so much that we don't know about going on in the background and behind closed doors, and those responsible keep it this way for a reason.

I hope I'm wrong, but for the last 3 years I haven't been. This shit will keep on keeping on. And if it does change, refer to my comments on June 17, 2014.

Anonymous said...

I just returned from Denver where I dropped off quite a bit of work to old clients. I lived there for over 30 years before I moved to w Texas and still have a number of customers. One of them, a developer who I've known for 40 years, has 3 1/2 years of work scheduled. Right now he building a $126M hotel complex in Boulder along with renovating one of his buildings in downtown Denver for a new restaurant tenant. He employs 100s of people. In another location of his in downtown Denver, he owes a square block right in the middle, on the 16TH ST Mall, and is soon to break ground on a huge office tower/condo complex there.

I counted 6 new skyscrapers being built in downtown Denver. Housing prices are shooting up faster then I could believe. I asked my friend if he thought the economy merited these astronomical prices and all of this commercial construction. He said money right now is just too damn cheap not to make the most of it. He said even a bubble busting will leave this infrastructure in place and the subsequent turnaround will be even greater then it is now. Other friends point to the millions pouring into CO because of the legalization of pot. Everyone that wants to work seemingly can-I saw the construction trades are desperate for more men. Same in Midland, unemployment is the lowest in the country. One terrorist attack in the ME and oil will shoot up to $100 in a heart beat. The capped pumpjacks will be turned on and money will pour in even more then now.

I read blogs like yours Brian, Quinn, ZH…that have been predicting essentially TEOTWAWKI for what, 8 years? They point to similarities in the market between now and past downturns like housing prices, shipping rates for overseas movement of freight, interest rates..hell you name it, and it's always doom and gloom at the end of the tunnel.

Since I've made a lot of money in real estate before, that's where my tendencies lie. I'm going to bet on this continuing for a while longer by purchasing some multi unit situations in Midland now while oil is in the mid 40s.Why not, as my friend said, money is cheap so let's use some of that OPM. And even with oil there, there are several massive apartment complexes being built right now here. I guess what I'm saying is that TPTB seem to be riding a wild bucking horse that they have a bit of control over and they look to be able to control it for a while longer.

I know they can't short gold forever but they've kept the price close to $1100 for what, 5-6 years when you'd have thought it should be much higher. In fact didn't it get to over $1900 before?

PeterE said...

Let's see if the french terrorist attack keeps rates on hold.

Bill Henry said...

They not only manipulate the metals, they manipulate grain markets as well.