scared of dragons?

  1. 9,081 Posts.
    Interesting stuff:

    "The last piece to the Gold bull market acceleration is the decline (however rapid) of the US Treasury market, the mortgage finance market, and residential real estate.

    All bonds are dependent upon the Treasury market. Threats to price inflation and long-dated bonds have been cited.

    They are pervasive, powerful, and will grow in strength. The rising long-term interest rates will expose real estate as an appendage to the bond bubble.

    Housing will be revealed as a "hard asset impostor" when it declines in value, while commodities like gold and oil/gas continue to gain in price.

    The last bubble will be in Gold.

    The Fed has run out of options; it has no more beneficial bubbles to inflate.

    Gold has recently flirted with the $400 level. It did so following two critical events.

    The G7 Meeting concluded with discontinued plans to levitate the USDollar.

    The OPEC Meeting in Vienna concluded with stated plans to curb crude oil production by 900,000 barrels per day.

    The rise in Gold price will continue until it shatters the $400 level.

    The writing is on the wall:

    THE DRAGON IS AT THE BACK DOOR
    RISING ASIAN IMPORT PRICES ARE COMING
    LONG-TERM INTEREST RATES ARE SOON TO RISE
    GOLD IS READY TO EXPLODE TO THE UPSIDE

    A move in Gold bullion past the $400 level will turn heads, change views, alter policy, and scare many people. It is written in stone.

    Prepare for it. Exploit it. Many dismiss the possibility of a damaging short squeeze inflicted upon the criminal Gold Cartel, who surreptitiously sold off our national gold treasure for their personal profit. If that is not treason, I do not know what is.

    In the summer of 2002, a "line in the sand" was drawn at $330 gold. By autumn, that line was surpassed and redrawn at $370. Now it appears to be redrawn once more at $400.

    The cartel is transparent in its reaction to the assault on the Gold price. They appear to rachet their highly leveraged options, futures contracts, and spreads at incrementally higher levels, as a desperate defense of a naked short gold position which exceeds two years worth of world gold production. In this manner, they deliver unto themselves a Chinese water torture. They suffer continued smaller painful blows, instead of a massive short squeeze and meltdown. At the same time, gold miners have steadily reduced their forward sales hedge books. Observers to this tragedy should not lose sight of the fact that the USGovt is probably bailing them out quietly.

    The Dept of Treasury is likely gradually purchasing the Gold Cartel's hedge book.

    Official actions and bullion banker actions are effectively ensuring the gold bull will run for a long time."

    Read the full account at: http://www.gold-eagle.com/editorials_03/willie100103.html
 
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