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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?