Capital Already 'Knows'

Bloomberg had an interview this afternoon with Professor Black who is the author of " The Best Way to Rob a Bank is to Own a Bank." He could not be silenced.

Professor Black said, among other javelins in the heart of MOPE, the
following:

1/ The Securitized Mortgage instruments are all frauds.
2/ The Fed is holding a huge amount of these as collateral.
3/ They are valueless.
4/ The manufacturers of these are, under commercial and criminal
statute and law, criminals.

The interview almost swallowed her tongue.

Gold will trade at and above $1650.
QE to Infinity is not a choice among alternatives. It is all that is left.

Jim

Jim,

Gold, following its historical role, has become the last safe haven. Those that believe that capital is unaware of Professor Black’s assertions are not listening to the messages of the market. That is, they are not listening to the "real" secular trends. Capital already knows, and it doesn't need consensus agreement or approval from centralize control.

Regards,

Eric

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