Interesting logic, but the market is not based on logic; it is based on greed and fear. That is why gold spiked yesterday for all mining stocks and tanked today for all mining stock. Shorts had the fingers on the buttons to buy back on the no-easement news and vis a vis the other way around. Now as soon as the pump started many got drawn into it and placed bets it would continue the following day. Nope. The shorts the following day sold of their bought back shares at some minor losses but made money on the flip as they collected on more borrows drawn at the crest of yesterdays pump. It was a coordinated effort by four large NY firms and one bank in England. How do I know? My dad worked for the exchange and DeBeers. Ugly truths of real life conspiracies....but it gets worse. Now you have two factions working against each other. One, the retailers want gold to be more affordable and that even includes India. So they are pro gold price reduction. On the flip side are holders such as the Bank of Greece who want gold to have even more purchasing power so they can use it as equity to borrow more cash from the DeutchBanks. Who will win? COMEX offers some insight on volatility, but rest assured one thing: just keep it simple. Go outside, get in your car and drive across town. How many BJ's and Banks are being built v. Blue Collar Industry ? Also, does the debt ceiling go up as Ghetto Pimp Obama holds his crackass hand out for more loot from China fueled by treasuries that are a lie in value? The music is stopping soon. Stocks are so expensive now, people can't even afford to buy significant shares. They can release as much for liquidity as they want, the trouble is it has to be cheaper to get new customers and thus artificial supression and liquidation of long term holder value... this same BS is going on with mining stocks as I write. In addition gold need to be culturally manipulated to have value like it did in the 80's. Remember Mr "T?" I could go on and on about throwing out my incohesive collection and panopoly of ambiguous thoughts but in the end all roads led to Rome: the illusion of value. Things have t get bad for god to have more of it...are they? or is it still an illusion of Pleasantville with a financial sinkhole with no bottom beneath it? I think the later... The music will stop. How much do you have in the till for mining stocks after the shorts try to scare you with the "sky is falling" (see Sept 9th 2008 graphs) before the steady Himalay climb starts again. Oh, it's going to for sure. I am not a pessimist but until I see those factories being built in the US, I am getting tired of ironing your shirt. Hand me a few Krugs for my service, the paper feels itchy on my year at the John..Thank You.
AI
