Gold Shares - Lemmings over the cliff

Negative spin and disinformation in its various forms (en masse downgrades - quietly followed by upgrades and negative articles on gold shares with solid management, valuable reserves, and excellent financing) are no accident. Organized interests want your quality gold shares and will herd you like lemmings over the cliff to acquire them. You must stand strong with your gold - January 06 2010 and quality gold shares. Ignore the spin. The gold shares stand on the cusp of a major breakout. Three taps and out is nearly complete.

S&P Gold (Formerly Precious Metals Mining)*
*S&P Gold from 1945, Barron's Gold Stock Index from 1939-1945, 1922-1939 Homestake Mining:

N.Y. Budget ‘Shell Game’ Hides Deficits, Report Finds (Update1)

Why cook the books when a simple OTC derivative will hide major expenses for States of the USA or EU?

The state of New York’s history of budget manipulation is contributing to its chronic deficits and cash squeeze, Comptroller Thomas DiNapoli said.

So little has changed.

Source: businessweek.com

The Hidden Means of Currency Control

The Hidden Means of Currency Control

Capital Controls provision, page 27, the Offset Provisions - Foreign Account Tax Compliance as a rider to the new Jobs "HIRE" Bill requires non- US banks to embargo 30% of funds transfered primarily by bank wire to international banks by US sources seriptiously part of the $17.5 billion Hiring Incentives to Restore Employment Act (H.R. 2487) transfer of currency out of or still in the US dollar, defining in detail minutia non exempt accounts.,

1. This is effectively a passive currency control.
2. It can be enforced the same way international banks are squeezed today. Threatening to eliminate institutions from the bank wire system is a very powerful weapon.
3. Historically a country that implements currency controls, passive or active, has a currency in an intact downtrend for which the action offers no benefit and significant injury. It is an action of EXTREME WEAKNESS.
45. This confirms that the dollar is NOT a safe haven currency even if lending temporary support

Regards,
Jim

Jim,

Here's the full text

Source: govtrack.us

Los Angeles Controller Says City to Run Out of Cash in a Month

Maybe the IMF will be needed to back loans to California? Good thing the US doesn't need the IMF help to print money.

Los Angeles will run out of cash on May 5, city Controller Wendy Greuel said today in a release in which she requested a $90 million transfer of reserve funds to pay bills.

Source: bloomberg.com

Bank of Mom and Dad Shuts Amid White-Collar Struggle

Life stories of the developing new norm within the third great Depression. The stories reflect the inevitable and lasting "change" that cannot be achieved through stimulus and devaluation.

In the long run, the drop in parental aid could make young adults a more financially resilient generation, like children of the Great Depression. But for now, economists worry that without parental cash, young adults may put off entering the housing market, settling into career paths and having families.

Source: online.wsj.com

US Bonds Midday

US bonds, TLT, have already breached the swing low on pretty decent volume just after midday. Ignore the headline spin on bonds and equities, a breach of this low, which is also the straight line neckline from June 2009 is no small matter.

Last weeks COT data (10- and 30-year) illustrated big inflows to protect this zone. If this line in the sand cannot hold, a new lower line will be conceded and the neckline will have failed. The market's reaction to an identifiable technical top could be difficult for even the spinsters to contain.

With that said, I expect this zone to be heavily defended as the technical implication of a break are huge. Failure at critical support despite intensified efforts will reveal the severity of the technical damage. A point that will not be missed by the trading sharks that will show no mercy.

US Long Bonds ETF (TLT)

Canada’s Dollar Strengthens to 20-Month High as Oil Advances

Is the door wide open to parity because of grinding oil or eroding dollar? I would go with the latter.

“The door is wide open” to parity, said Christian Dupont, a trader at Desjardins Group in Montreal, who predicted the loonie would reach a one-for-one basis this week. Oil “grinding higher” is the main reason for the appreciation today, he said.

What the media either cannot see or ignores is that the pendulum has swung to favor gold over oil.

West Texas Intermediate Crude Oil to Gold Ratio (Oil/Gold):


Source: businessweek.com