Posted on 07/13/2002 6:42:57 PM PDT by rohry
While the press was all over the President’s task force that proposes to go after criminal indictments for crooked corporate executives, The Gold Cartel forged on to rig the gold market. It is the most bizarre of happenings. The more news and talk of corporate financial scandal, the greater the stock market swoons. The fear of a stock market collapse enhances gold demand. As a result, the gold price wants to go up, which means the cabal has to work that much harder to hold it down.
What we are talking about is the President, Treasury Secretary, key New York banks and the Fed manipulating a U.S. financial market, in contrast to their public utterings and statements to the American public. That public is clamoring for truth and transparency and this gang is doing just the opposite when it comes to gold.
They are inviting disaster, as they are going to be found out. The price of gold is not going to stay down much longer. When the price explodes, it will lead to financial chaos, as the shorts panic. In effect, these massive gold shorts are on a financial Titanic and there are not enough lifeboats to save them all. My guess is the price of gold will take off at the worst possible time on the stupefied Gold Cartel; it is called Murphy’s Law.
Meanwhile, 300,000 people in sub-Saharan Africa are on their way to starving to death for lack of money, partly due to the gold price rigging. This Gold Cartel is truly a bunch of very evil, pathetic people that will pay a severe price for what they have done. They will begin to pay that price after the gold price explodes. There will be few explanations for the dramatic lift-off other than the price was artificially held down for many years. The corporate scandals of the day did not surface until the share prices of these companies collapsed. The gold scandal will surface when the price of gold skyrockets!
The cabal has more to worry about than just a collapsing stock market. Crude oil is trading near 52-week highs, finishing at $27.47 for the week. That is a gold positive and hardly mentioned in the financial press. While the CRB set back on general commodity selling, new crop soybeans closed in new high ground ($5.21). This is the critical growing time for the beans. If the weather goes hot and dry the next couple of weeks, beans could head for the teens on a worse case scenario. In that case, the CRB will FLY, feeding talk of coming inflation.
Then, there is the dollar (106.30). It should have been nailed after yesterday's very disappointing Michigan consumer confidence number. Only The Working Group on Financial markets prevented a dollar swoon. By next week, the dollar price riggers are very likely to be overpowered. Dollar 100 here we come, if 106 is taken out.
CARTEL CAPITULATION WATCH
The WATCH goes on high alert. The cabal is doing all they can to hold up the stock market, but margin call selling and mutual fund redemption selling is all, and more, than they can handle. Rarely have stock market watchers seen such tremendous volatility, which seems to be intensifying.
The DOW has become the wild one, after holding up in a relative sense for so long. It finished the day at 8684, down 117. Three times it has roared back after plummeting to the 8600 level - once on Thursday and twice yesterday. Like the dollar, we have a triple bottom. When that bottom is taken out, look out below.
For the week, the S&P completed a MASSIVE TOP formation, finishing at 921. Measured move technical counts go all the way down to 600. OUCH!
The economic/financial news for the stock market and The Gold Cartel continues to worsen.
Washington, July 12 (Bloomberg) -- The U.S. government's deficit may grow to about $165 billion this year, the Bush administration said, as slumping stocks reduce capital-gains tax payments.
The deficit forecast compares with one of $106 billion in January. -END-
The surprise bad news:
Washington, July 12 (Bloomberg) -- U.S. consumer confidence fell in July to a eight-month low, according to a University of Michigan survey. Falling stock prices and rising unemployment threaten Americans' sense of financial security, economists said.
The university's preliminary July consumer sentiment index fell to 86.5, the lowest since 83.9 in November, from 92.4 in June. The drop was due to reduced optimism about both the future and current financial conditions and came as stock prices extended a slide that has been under way even as the U.S. climbs out of recession. -END-
Stock bulls were counting on the consumer to spend, spend, spend to fuel the economy and bail out an overvalued stock market. Looks like we have another hope trade for Wall Street going bad.
Washington, July 12 (Bloomberg) -- Consumers bought more cars, clothing and appliances in June, leading to a rebound in U.S. retail sales and adding to evidence that households are sustaining the economic recovery.
Sales rose 1.1 percent during the month to $299.5 billion, following a revised 1.1 percent drop in May, the Commerce Department said. April sales jumped 1.2 percent. Excluding automobiles, sales rose 0.4 percent in June after falling 0.4 percent the previous month. -END-
Even that report was not good. Overall retails sales were less than expected. Car sales were the winner, but many dealers are giving them away with zero interest rate promotions.
SCANDALE du jour, another price manipulation story:
Charlotte, July 12 (Bloomberg) -- Duke Energy Corp., the No. 2 U.S. utility, said it received subpoenas for documents related to the company's energy trading as federal authorities widened a probe of sham transactions in electricity and natural gas.
The company received subpoenas from the Commodity Futures Trading Commission and the U.S. attorney's office in Houston, where a grand jury is investigating, Duke said in a statement published on PR Newswire. The company did not identify the target of the probes.
Charlotte-based Duke said in June it had received informal requests from the U.S. Securities and Exchange Commission regarding so-called ``round-trip'' trades. Such transactions involve identical amounts of power being purchased and sold at the same time and price, boosting the appearance of sales but creating no profit. -END-
More bad news for The Gold Cartel. A very unusual Bloomberg article:
Homes, Gold Attract Investors as Alternative to Stock
By Craig Torres
Washington, July 12 (Bloomberg) -- Falling stock prices, investigations of corporate deceit, and money-market funds that yield little more than inflation have pushed investors to real estate and precious metals as a shelter for their cash.
U.S. homebuyers are increasing down payments as a share of property values, and consumers are becoming reacquainted with gold pieces such as American Eagles and Krugerrands. Bullion has won converts among younger Japanese investors, even as the government is trying to entice them into bonds with ads by a movie star.
Tangible assets such as homes may become even more attractive to U.S. investors, who this week saw the Standard & Poor's 500 Index drop to its lowest level since 1997. Bristol-Myers Squibb Co. joined the list of companies, including WorldCom Inc. and Adelphia Communications Corp., whose financial and accounting practices are under federal scrutiny.
``I want to be able to understand where my money is,'' says Martha Kumar, a political science professor at Towson University in Towson, Maryland, who recently made a down payment worth 36 percent of the value of her new home in Washington, D.C. ``In real estate, you can see that.''
Median down payments for repeat home buyers are up to an average of 25 percent of U.S. home values, compared with 19 percent in 1999, according to the National Association of Realtors, a Washington-based trade group.
More Americans are seeking the comfort of precious metals as well. This week, a banker bought 1,524 one-ounce American Gold Eagle coins, worth about $500,000, says Michael Kramer, head trader at Manfra Tordella & Brookes Inc., a metals dealer in New York...(snip)
Peter Fisher, Under Treasury Secretary, was a guest Thursday night on the Kudlow & Cramer CNBC show. Prior to his role at Treasury, Fisher was the triggerman at the NY Fed. Both hosts guffawed over Fisher, calling him a great American, the Treasury “go to guy“, the architect of the LTCM bailout and the man responsible for the “disinflation that the Fed ENGINEERED. The most amusing line was by Cramer who said to Fisher, you (probably) “saw things we have never talked about.”
The robotic Fisher retorted he is just “Trying to get President’s program through.”
Well, I can tell Jim Cramer and Lawrence Kudlow one thing he saw and did that HE won’t talk about.
It was pretty hard to take. Fisher will go down in history as one of the most misguided rogues in U.S. financial history, as he has been one of the significant architects of the manipulation of the price of gold. He was all over it at the Fed, now at the Treasury.
Most Americans do not know what is hitting them these days when it comes to the stock market. Fisher and friends took away the average investor’s warning signal, that being a soaring gold price. The President’s corporate criminal task force should look into Fisher first for his work at the Fed, since since the Treasury does not consider it a government agency.
Jim Sinclair is correct. The gold fraud is the biggest in man’s history. It has hurt more human beings around the world than any other fraud. Fisher is one of the main men behind that fraud. He should be exposed.
I think it is very important to stress the significance of the coming gold scandal because it is NOT on the radar screen of most investors in the world. Certainly, Wall Street has not factored it in because they will not deal with it and the financial press will not talk about it. These very same people will tell you how important it is for “the market” to know what is coming; that “the market” loathes sudden, unanticipated negative surprises. Well, the “mother of surprises”, the gold scandal, is coming and almost no one is prepared for it.
GATA and The Café have done what we can to alert folks. We are continuing that effort. In the very near future a prestigious foreign newspaper is planning a frontpage splash on GATA’s findings. GATA continues to get foreign press, but is shut out by the U.S. financial press/media.
Phony baloney CNBC ought to put up, or shut up about scandals unless they are willing to discuss the gold one. For those Café members so inclined, here are some email addresses of their appropriate shows. Maybe one will bite? They should be aware of the RBC Global Investment Management Report, the Monetary Reform And Accountability Bill that cites GATA’s evidence of gold price manipulation, the GATA African Gold Summit, etc. They should also be aware that I was interviewed by Ron Insana 42 months ago and have been blackballed from CNBC ever since. Take your pick, if so inclined:
Wake Up Call
Squawk Box
Morning Call
Power Lunch
Closing Bell
Business Center
Capital Report
Market Week with Maria Bartiromo
Kudlow & Cramer
Hardball with Chris Matthews
I flipped around after the close yesterday to Fox, CNN and CNBC. The airways were full of market talk. Almost to a man (and woman), the commentators talked of a bottom and that now was not the time to “sell indiscriminately.” We have been hearing that for over a year in times like this. Those investors that sold indiscriminately a year ago are smiling today. The ones hanging on are morose. Every Café member must know scores of them.
Ironically, some gold commentators are telling investors not to buy gold shares indiscriminately and gold's big move up is only in its infant stages. Almost all of the gold world analysts have missed the move up and to this day almost none are bullish. Even the new “bulls” like UBS are calling for a big move to $330?????
and gold's big move up is only in its infant stages.
Physical gold investors have cleaned up the past few years around the world, thanks to the strong dollar policy of various U.S. administrations. Gold share investors in the U.S. have cleaned up the past year BIG TIME and gold's big move up is only in its infant stages.
Rarely in history has the general investing public been so misled and conned. It is a tragedy that will last a generation. Meantime, Café members will never have it so good financially as the price of gold, silver and the shares soar beyond belief.
I sleep very well at night!
PS: An extra CAFÉ delight. From Richard Russell commentary last night, which echoes what I just conveyed:
In all the years I've been dealing with markets going back to the 1940s I've never seen such stubborn optimism -- or let's call it ingrained bullishness. To see the S&P decline on 12 out of 16 weeks and still not throw the market into at least a mild panic is extraordinary.
But how do you identify or gauge a real market panic? You do it by identifying 90% downside days. This technique, discovered by the Lowry's service, which has a history going back decades in real time.
Lowry's began tabulating 90% upside and 90% downside day starting in 1960. Recent history shows that there were five 90% downside days in 1998. There was one 90% downside day in 2000. There were two 90% downside days in 2001. Amazingly, the last 90% downside day occurred back on April 3, 2001.
What not a single downside day since April of 2001? Where's the fear? Where's the panic. Who's afraid of the big, bad bear?
As I write the news has come out that the Michigan's Consumer Sentiment poll shows a sharp drop this month from 92 to 86. So the consumer is becoming discouraged. Is that so? They may be discouraged, but they're not discouraged enough to dump their stocks in panic fashion. And that's what counts in the stock market.
As another example, I just talked to my local coin dealer. I've given out his name on this site and his telephone number (858 459 2228). "Leon," I asked him yesterday, "did you hear from any of my subscribers?"
He answered, "Yes, quite a few calls, but they were all inquiries. Nobody actually bought any coins." Well I did -- yesterday.
Same thing in the stock market. Consumer Confidence may be dropping, but people are not tossing in their stocks. Which is why we haven't had a single 90% downside day since April 3, 2001.
So here's my suspicion -- this market could continue to head irregularly and erratically lower until we get the first 90% downside day. And remember, 90% downside days in bear markets almost always come in series.
Thank yourself. It's been treasury sales that have been the biggest factor.
Silver too, eh? I wonder how many
people are getting excited at the chance
of unloading some of their fifty-dollar
silver from the big bust in the 80s. Heh.
Keep waiting, folks.
ahhh, you mean hunt brothers, as in bunker
;-)
William Jennings Bryan, right? :)
Or Frank Baum, even better.
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And now, my friends, let me come to the paramount issue. If they ask us why it is that we say more on the money question than we say upon the tariff question, I reply that, if protection has slain its thousands, the gold standard has slain its tens of thousands. If they ask us why we do not embody in our platform all the things that we believe in, we reply that when we have restored the money of the Constitution all other necessary reforms will be possible; but that until this is done there is no other reform that can be accomplished. |
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Why is it that within three months such a change has come over the country? Three months ago when it was confidently, asserted that those who believe in the gold standard would frame our platform and nominate our candidates, even the advocates of the gold standard did not think that we could elect a President. And they had good reason for their doubt, because there is scarcely a state here to-day asking for the gold standard which is not in the absolute control of the Republican party. |
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William Jennings Bryan, "Cross of Gold," 9 July 1896 |
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