Tuesday, October 04, 2011


A. "Gold could drop to $700 an ounce."

Gold is currently around $1,671 per ounce.

(Gold bugs beware - the bubble is finally bursting)

According to Mark Williams, of Boston University’s School of Management:

"The last bull market for gold ended in 1980, when prices fell by 60 per cent.

"For 20 years after, owning gold was dead money.

"In 2011, the bubble is popping again."

B. At Global research, on 29 September 2011, Ellen Brown has written:

Financial Warfare: "Sheared by the Shorts". How Short Sellers Fleece Investors

"Why did gold and silver stocks just get hammered, at a time when commodities are considered a safe haven against widespread global uncertainty?

"The answer, according to Bill Murphy’s newsletter LeMetropoleCafe.com, is that the sector has been the target of massive short selling...

"A bear raid is the practice of targeting a stock or other asset for take-down, either for quick profits or for corporate takeover...

"When Lehman Brothers went bankrupt in September 2008, some analysts thought the investment firm’s condition was no worse than its competitors’.

"What brought it down was not undercapitalization but a massive bear raid on 9-11 of that year, when its stock price dropped by 41% in a single day...

"When done on a large enough scale, short selling can force prices down, allowing assets to be picked up very cheaply.

"Another Great Depression is the short seller’s dream, as a trader recently admitted on a BBC interview.

"His candor was unusual, but his attitude is characteristic of a business that is all about making money, regardless of the damage done to real companies contributing real goods and services to the economy..."

C. Dr. Webster G. Tarpley, at Global Research, 3 October 2011, has written:

Europe Must Fight Back Against US-UK Speculative Attacks

According to Webster Tarpley:

1. The US and UK are carrying out economic warfare against the Eurozone.

2. The problems of the Eurozone are being axaggerated.

3. The aim is to divert attention away from the problems of the USA and UK.

4. "London and New York are exporting their own derivatives depression into the EU, using credit default swaps, corrupt credit ratings agencies, and their entire panoply of financial dirty tricks."

5. The USA and UK want to be able to buy up assets in the Eurozone at bargain-basement prices.

6. The Anglo Americans want to destroy the Euro.

"The dollar is now so weak and unstable that it can only survive through the downfall of all the alternative currencies."

7. "If the speculation persists, certain forms of capital controls and exchange controls would be in order."

8. What Europe Must Do

A. Liquidate Zombie Banks; End Too Big to Fail.

About a dozen of the top European money center banks are clearly insolvent.

They must be subjected to bankruptcy proceedings, and their derivatives wiped out.

B. 1% Euro-Tobin on All Financial Transactions.

A 1% Euro-Tobin will serve to subdue speculation in general, and particularly to bridle the activities of the hedge funds.

C. Universal Cancellation/Freeze of Derivative Debts.

D. The most dangerous kinds of derivatives need to be permanently prohibited.

E. Raid the Ratings Agencies — Reports have surfaced in the United States that credit ratings agencies have engaged in insider trading by giving speculators advance notice of their attacks on US Treasury bonds.

F. Debt Moratoria Now for Crisis Economies.

Countries, like Greece, Portugal, and Ireland need to declare an immediate, unilateral, and total debt moratorium on all international financial debt.

G. Europeanize The European Central Bank.

The ECB must be taken permanently out of the control of secret cliques of unelected and unaccountable bankers and subjected to the democratic control of representative political institutions.

H. €1 Trillion For Infrastructure.

I. 40 Million New Productive Jobs for Full Employment.

J. End Afghanistan, Libya, Kosovo, and Other Military Meddling.

Foster a development community of sovereign states which would embrace Europe, Russia, Africa, the Middle East, and other parts of the world.



Anonymous said...

Moscow hit again


israelite said...

Gold is not in a bubble. Everything else is. When paper gold and silver is sold 100 times over what physically exists precious metals cannot be said to be in a bubble.

Gold and silver are the only investments left without counterparty risk. There are no other safe havens for your money. When paper currencies crash gold and silver will be the last men standing.

If Mark Williams really knew what he was talking about he would be trading and not teaching. Teaching business is the refuge of the bullshitter.

Gold Price Manipulation said...

Did you read Ellen Brown's "How Short Sellers Fleece Investors" linked above ?
She doesn't really explain how it works, although she pretends to.
Gold prices are manipulated and fixed by the owners of the Stocks Casino.

CS said...

Gold is a strange thing for the ordinary person to invest in. You cannot eat it, it yields no income. It is not money -- no one is promising to pay you so many pounds or dollars for an ounce of gold. In the event of total economic chaos, gold might be accepted as money. In fact it might become the only thing that was accepted as money. So possessing a bag of gold coins for use in an emergency makes sense. But as an investment it is something for the average person to avoid, especially at the current unprecedentedly high price.

The only sensible way, it seems to me, to invest is to invest in value, i.e., in companies doing some boring useful thing that produces profits that are paid out as dividends. Then if someone short sells your stock and drives the price down, the sensible thing is to buy more, because it's an even better value than when you first bought it. That anyway is supposed to be the Warren Buffet approach: stick to railroads, cement, bread and oil bought when the price is reasonable, e.g., like now, and avoid low-yield momentum stocks and high tech, which really may not be worth any more than the price to which they are driven by the short sellers.

nobody said...

Hey Aang,

Well I have 50oz of gold, buried natch. And I'm in for the long haul. If you think about it, what with the shoulder of the head and shoulders curve that represents a depression still to come, I reckon it would make perfect sense for those who have spectacular reserves of gold to release a mini-flood.

Can you dig it? They momentarily crush the price of gold, spook everyone into a stampede, snap it all up at the bottom of the market, and then pull the pin on the global economy. Gold skyrockets and it's a win-win. For the motherfuckers that is.

Think of Rothschild walking into the London Stock Exchange, all gloomy-faced and selling as if the Napoleonic war was over. Thinking he knew what was what (which was true actually) the punters stampede and sell everything. Rothschild's proxies then buy it all. And what did it cost him? Half of fuckall. And did they gain? The London Stock Exchange!

And what did it cost the same family to plunge the gold market this time? And what do they stand to gain?

Honestly, it's an oldie but a goody, and as if they could resist.

Me, I'm sitting tight. The way I figure it, what with having bought low years ago, the worst I'll do is to end up with what I started with. Best case - I'll have enough to buy a property and with change to spare.

ciao mate

Anonymous said...

Have to agree with Israelite. This seems like a desperate attempt to scare people away from investing in precious metals and pretty lame IMHO.

Site Meter