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ARCHIVED DISCUSSION FROM 2/28/2007 All times are U.S. Mountain Time (Yesterday's Discussion.) Placer Gold (2/28/07; 22:58:53MT - usagold.com msg#: 152824) A Message Found in a Bottle I found this message last year in a bottle floating in Long Island Sound. Sometime after reading it I was able to purchase one Golden Buffalo as a companion. ______________________________________________ Why is Gold anathema to our economic system? Because Gold represents something that runs counter to the theory and the practice of our current social order. A Modern Theory of Supply and Demand: A) DEMAND is largely an emotional disorder whipped up by commercial and government advertising. There are three kinds of Demand: 1) Demand for legitimate needs such as food, shelter, clothing 2) Demand for "things" and "stuff" to make us "happy", 3) Demand for security to make us not "afraid". The first kind of Demand has been relatively easy to meet for a long time in the West. It is the second and third kinds of Demand that can never be met because these Demands are created out of nothing by the peddlers of "the pursuit of the American Dream" and the peddlers of " the fear of the rest of the world" who bombard us with ads and news reports that make our appetites insatiable. B) SUPPLY is what our inscrutably complex financial system is in charge of - no one even knows exactly how it all happens anymore. But by always encouraging and allowing everyone who wants to work to reach up higher and higher as a worthy, card carrying member of the "holy credit system" we become accustomed to rising debt and to the need to work all the time harder and harder to service our debt so that we can borrow even more to try to satify our Demands. As a result of the irrationally created Demand and the ingenious ways we toil within our financial system to access the Supply of fiat money and its progeny to satisfy our cravings, productivity constantly rises and all seems well (though ever more anxious). In short there is no Peace - neither Peace on Earth nor Peace of Mind. In fact, confrontation and stress become our defining traits. The key to keeping the system going is to maintain the crazy Supply/Demand duality. And the key to maintaining it is to keep nominal productivity rising so that the rising debt bubble can be further inflated. And that is the catch, because real measurable productivity on a per capita basis stalled some decades ago. In order to maintain the illusion of increasing per capita productivity, however, Americans (and Europeans and Japanese too, and others) had to hire workers residing outside our own societies and then started importing some of those workers' productivity for ourselves. What used to be called imperialism has become under the modern financial system "Globalization". Globalization, like everything else in our Supply/Demand dementia is very stressful, which of course is very good indeed! In theory (but maybe not practice) the new Globalization game should work for a very long time to increase productivity because there are billions of little peasant people who can be recruited from places like China and India to work for us to increase our productivity so we can service our debt, borrow more money, pursue happiness (an inalienable right) and try to feel secure in our lives (another inalienable right). If the inalienable right to personal liberty is compromised along the way, hey, 2 for 3 is a good batting average, and the liberty piece can always be re-instated later once we are secure - yea sure! Wars for security, because they are based on fear, are always good for this economy and the heightened debt from those wars is also a good thing for this economy. Ultimately, wars increase productivity too by globalizing more peasant people into the system . If the Chinese get upitty along the way (not likely) they will be chastised in no uncertain terms by the global financial system backed by a military establishment whose power is truly mind-boggling even to those who manage it. Conflicts in Iraq are small potatoes which we can carry on for decades if necessary with both hands tied behind our backs. Remember, these sorts of wars are actually good because they increase fear and thus keep the Demand for security high plus they increase debt and the need to work hard to service that debt. It's a beautiful thing! Thus, Gold is an enemy of the people because it exists outside the modern economy. It eschews "debt" in favor of actual indestructible wealth. It calms "fears". It does not feed irrational demands for "happiness". In short, Gold is Bad! Expect a war on Gold at some point if Gold becomes too upitty. "... oh the humanity ..." ______________________________________________ Yesterday I owned just one pet - a solitary 2006 Golden Buffalo. Today a 16 year old Golden Kangaroo paid a totally unexpected visit and decided to take up residence! As someone in this group advised me awhile ago, "... in the footsteps of giants!" PlacerGold smiles45 (2/28/07; 19:03:50MT - usagold.com msg#: 152823) Harry Schultz Warning http://www.bullnotbull.com/archive/harry-2-2007.html This is a very ugly comment as Mr. Harry Schultz is no alarmist:"A Warning from Harry Schultzby Harry SchultzJanuary 21, 2007Editor's Note: The following is excerpted with permission from the HSL658 - The International Harry Schultz Life Strategies Letter, January 21, 2007, page 2. My sentiments are much the same, and if you've been sitting on the fence about the issues discussed, perhaps hearing it from someone with the stature of Schultz will help you to clarify your thinking. Harry Schultz, or 'Uncle Harry,' as he is known to his subscribers, is Editor of the Harry Schultz Life Strategies Letter, now in its 42nd year of publication. This is an accomplishment in and of itself, but HSL was also named newsletter of the year in 2005 by Marketwatch.com. Marketwatch is a mainstream publication, but Uncle Harry's letter is most definintely not. You'll get news and views you won't hear anywhere else, such as what you're about to read below. The Honorable Ron Paul, US Congressman and 2008 Presidential Candidate, has this to say about the letter: "I wouldn't want to do without HSL. It's a must for global outlook and investing." Without further ado - a letter from Harry Schultz: Dear Lambs:Read our virtual obituary (yours & mine), spoken in 1991 by David Rockefeller, & oh so obvious in 2007: "We are grateful to the Washington Post, NY Times, Time magazine & other great publications whose directors have attended our meetings & respected their promises of discretion for almost 40 years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated & prepared to march towards a world govt. The supranational sovereignty of an intellectual elite & world bankers is surely preferable to the national auto-determination practiced in past centuries." -- David Rockefeller, Baden-Baden, Germany 1991. Frankly, dear, dear readers of mine, I fear we've lost the game. The insiders have won. They now control all the levers of power, financial & political. Many good men in public office are prohibited by the system from reforming it. Commercial, media & political power is concentrated in just a few elite hands. I've (& others) warned (loudly) for decades in HSL what was happening & what would occur if nothing was done. People were lulled into lethargy via careful massive brain conditioning, became content to watch TV 7 hours a day, accepted the misdeeds of politicians, the raging moral degradation of society, the creation of media/corp monopolies, the ruin of money worldwide--begun (via careful plan) by Washington/NY insiders. People blamed inflation for their 50% loss of buying power in last 35 years, not realizing the definition of inflation is an increase in the quantity of money/credit by banks/govt, equally. They cleverly removed gold as currency backing to give them monetary control. There is now no legal restraint on govt. Govt distorts economic data & everyone knows it, but the kept-press is kept silent & thus nobody marches in the street about their life being sacrificed on the altar of globalization--offshoring jobs--the lie called "free trade," which in fact means the opposite, like all govt legislation titles. Eg, Patriot Act is unpatriotic if U still believe the US Constitution has merit & is a lighthouse for other nations. The minority who understand all the above are mostly afraid to make waves-which is also part of the grand scheme, to intimidate or buy-off critics. When a possible leader or competent critic emerges in the US, he/she is immediately made a member of the CFR, which thereby seals his/her lips. Or else! It's a refinement of a Mafia policy. It's done in a few other countries too, but not as widely or ruthlessly as in the US. In any case, my point is, we've lost. Individual freedom & civil rights are substantially gone or compromised beyond practical application. In the past I've always said: divide your time/funds, ie, devote say 50% of your effort/ funds to fighting to save &/or restore lost individual rights/liberty/privacy, & 50% to self-preservation (as U may lose with your freedom fighting). In recent times I implied those %'s need modifying, as we're losing ground & one must save one's family/self. Today, with the devilish North American Union being cemented into the US & Canada's future, the sabotage of freedom, both individual & collective, is being completed. So, I regrettably now recom U ratchet down your %'s, maybe to 10% vs 90%. Govts are not looking after your individual freedom (esp in Anglo Saxon nations-UK/Cda/Oz/NZ/US); so if U don't row a boat with your family flag on it (not a nation flag), U may help sink your family & yourself. Will individual/personal freedom & former civil rights come back some day? Maybe. Perhaps the extremity will lead to its destruction. But, if so, we have to get through a worse period before we get there, if we do. And to get through it requires a lot of effort, especially if U live in the US in its present mode; many are leaving the US til it is "safe" to return. Washington has become an imperial govt with the public regarded as peasants, & the laws have been changed to match. Everything is a crime if civil servants wish to use existing laws. Changing presidents doesn't change new laws. Washington is Rome. Caesars come & go, each inheriting & demanding greater powers than his predecessor. (US Pres. Executive Powers now total 12K, upsetting the system's balance of power) PS: One of my inner circle advised me against running this article, showing so little hope. But my duty is to my subs. If U want sugar coating, see big media. 1. Truth is honourable. 2. Total truth is often helpful, used wisely. 3. U & HSL gain from honesty; it binds us together, & offers a potential path for survival. 4. There are no strategies useable/ available to win against Big Brother govt at this late stage of lightning-fast deterioration of democracy/liberty/ privacy, when the casino is rigged against U. In the past 4 mos that erosion velocity has increased by 80%. 5. While there is no current hope for reform/change or replacing the controlling elite, what little hope there is to simply "survive"-physical, financial, mental-will probably depend on what may be called: deeper-PT. We'll try to simply define it, but not as openly as before, as it now becomes provocative, & risks being declared "illegal" or unpatriotic. U'd better learn to read betwn the lines. Owning physical gold is a minimum essential. I suggest U reread the last 12 HSL's. It's all there. Sauvé qui peut (save who can, or every man for himself, or run for your life)"./Peter Harry Schultz smiles45 (2/28/07; 17:49:05MT - usagold.com msg#: 152822) NOKOR gold and PG on Wed YGM-NOKOR has been under embargo by the U.S. for some time. Lack of trading causes lack of currency reserves. This has been easily overcome by NOKOR's gold mining industry. I think that was the intention of that NOKOR article. The mined bullion is sold to Macau banks that are basically fronts for illegal activities of many kinds. Currently, this has been recognized by the U.S. govt which has pressured those banks to curtail this exchange. With gold it is easy to trade or swap for paper fiat. Stanley Ho controls all the gambling interests in Macau and he is well connected in Asia.HK wants to disassociate themselves from Macau as Macau has attracted the nefarious gambling interests from Nevada and Atlantic City. HK is a legit financial center and does not need Macau's type gambling reputation. They want to remain gateway to mainland China.POG on Wed traded a whopping 146,000 future contracts. This is a good indication that the Commercial interests are covering shorts. Hedge funds that were close to -0- in cash were forced to sell in droves. This is a positive development for long term bullion prices.Indicators in gold have begun to moderate nicely already.I will keep the posters updated.I promised yesterday to try and find out NZ, Australian and Japanese trading actions. Unfortunately banking interests were especially tight lipped.Remember these trades are paper, but the rising demand is for actual bullion.The new COT figures on Friday will shed partial light on current events, but as usual they are 3 days late and only partially help traders. In a world of computers and technology it is a small task to update open interest, net positions and volume on a daily basis to aid traders in figuring the market moves. The TOPCOM in Tokyo does! As with the very expensive(LOL) M3 figures the intentions are to obfuscate not illuminate./Peter USAGOLD Daily Market Report (2/28/07; 17:18:36MT - usagold.com msg#: 152821) Page Update! http://www.usagold.com/DailyQuotes.htmlThe Daily Gold Market Report has been updated.If you are considering investments in gold we invite you to request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.WEDNESDAY Market ExcerptsDespite Tuesday's afterhours slide, gold up $15 for monthFebruary 28 (MarketWatch, DowJones) -- Gold futures closed Wednesday with a loss of nearly $15 an ounce, with the market still reeling a day after a global stock-market sell-off. But prices finished higher for the month and most analysts remain convinced that the decline for the day was only a temporary setback in the metal's climb toward $700."For many months now, gold has managed to correct very overbought conditions in a manner of a day or two, and it would not surprise me that it has done so again," said Peter Grandich, editor of the Grandich Letter. "Virtually all surprises have been to the upside, and I suspect another one is coming as early as tomorrow -- with a quick run towards $700 faster than most can imagine today," he said.Gold futures for April delivery dropped as much as $23.20 during Wednesday's session to a more than two-week low of $664 an ounce on the New York Mercantile Exchange. It closed at a one-week low of $672.50, down $14.70.The last time the market saw a pull back like this was during the Jan. 3 to Jan. 5 period, when prices fell nearly $40 in two days, according to Blanchard's director of economic research, Neal Ryan. Despite the day's losses, the contract ended the month of February with a gain of $14.60, or 2.2%."With the pullback in so many markets, it is fair to say that the gold and silver pullback is not about gold and silver," said Julian Phillips, an analyst at GoldForecaster.com. "These falls [have more] to do with short-term traders perceptions and technical selling," he said.On Tuesday, the Dow Jones Industrial Average posted its biggest one-day decline since the terror attacks of Sept. 11, 2001, and fell as much as 500 points to its worst level after a sell-off in China fueled concerns about growth."This massive equity market liquidation [Tuesday] has sparked concern across the spectrum of markets as traders fear cash is the best position to be in," said John Person, president of Nationalfutures.com. "There could be a fall-out from large hedge fund losses, so traders are bailing on commodity positions," he said.Indeed, "there is a liquidation of assets across the board here -- funds forced to raise capital and the precious metals were not immune to this," said Peter Spina, chief investment strategist at GoldSeek.com. He emphasized, however, that he considers the situation to be a "temporary liquidation from these funds which require capital to cover losses."Gary DeDuke, fund manager with Corsair Trading, said remarks from Bernanke may have helped steady the markets some. The Fed chief told the House panel that there is no material change in his economic outlook and he anticipates moderate economic growth."Bernanke has alleviated the market concern over the drain of liquidity," said DeDuke."That has helped it out."---(see url for full news, 24-hr newswire)--- GOLD FINGER (2/28/07; 17:04:52MT - usagold.com msg#: 152820) ~Contest~ Congrats to the winners and thanks to the providers also! It was a turbulent contest. It seems that previous contests have also be turbulent. I wonder why? Are there any more 1873 Danish Mermaid 20 K Gold piece's left??Thanks again,GFMy eye is on the GOLD! MK (2/28/07; 16:28:33MT - usagold.com msg#: 152819) Congratulations to the winners. . . It was a great contest in a volatile setting. . .Many thanks to Gandalf as contest master.Onward, my fellow goldmeisters. flow5 (2/28/07; 16:21:28MT - usagold.com msg#: 152818) FOMC Fed added 17.25 bill in reserves. The party is back on. Lothar of the Hill People (2/28/07; 16:09:11MT - usagold.com msg#: 152817) Behold! A noteable victory Sir Tuco. Well fought, Sir Liberty Head. Lothar is honored to be found among such nobility. Thanks to Sir M.K. & Gandalf.I am Lothar of the Hill People. Fare ye well. mikal (2/28/07; 12:29:37MT - usagold.com msg#: 152816) (No Subject) http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/02/28/bcnambrose28.xml You have to admire the audacity of this newspaper with it's stories on derivatives, gold, housing etc.Here is some more reporting more objective than most with bold opinions and innovative analysis. Goldilocks gives way to recession fearsBy Ambrose Evans-PritchardLast Updated: 3:40pm GMT 28/02/2007Snip: "For the US markets, the same ugly divergence can be seen on the S&P 500 index of stocks, (see chart) though in this case it dates back to October. In essence, Wall Street has been carving out a long top after a formidable rally of 20pc since July, but with ever less conviction and breadth.The markets may well bounce back this week in a "retracement rally", hoping against hope that Goldilocks lives yet. Traders will watch to see if the indexes mount a charge at their recent highs. If that fails - a "double top", in trader speak - you can be pretty sure the funds will then switch sides and drive the stock market into the floor. In a typical US slump, stocks begin to fall four months before the economy goes into recession and then slide downwards in a jagged pattern for an average of ten months losing 26pc of its value. This time, I suspect that the stocks have been asleep at the wheel. There is an awful possibility that America is already in recession. If so, Wall Street has some very quick catching up to do, and so do the giddy bourses of Bombay, Moscow, Buenos Aires, Cairo, Warsaw, and Frankfurt. Investors should have paid more attention as the world's big central banks all tightened monetary policy in lockstep last year for the first time since the early 1980s. The asset markets have been on borrowed time ever since." Gandalf the White (2/28/07; 12:24:05MT - usagold.com msg#: 152815) TA TA TAAAAAA!! -- WINNERS !! -- We have Winners !!!!! The following Goldhearts were at one time today "ATOP the HILL" ---===$$$$ $680.5 $$$$ solosza (2/23/07; 18:18:02MT - usagold.com msg#: 152530)$$$$ $680.0 $$$$ GOLD FINGER (2/23/07; 18:55:27MT - usagold.com msg#: 152533)**** $678.0 **** Rook (2/17/07; 19:55:35MT - usagold.com msg#: 152278)$$$ FRN677.7 $$$ Smeagol (2/22/07; 21:36:03MT - usagold.com msg#: 152474)$$$$ $676.5 $$$$ pilgrims_gold (2/22/07; 16:47:36MT - usagold.com msg#: 152465) $$$$ $675.1 $$$$ xylo (2/20/07; 13:21:27MT - usagold.com msg#: 152379) $$$$ $673.5 $$$$ Lothar of the Hill People (2/17/07; 13:25:18MT - usagold.com msg#: 152271)$$$$ $672.2 $$$$ Tuco (2/24/07; 16:26:31MT - usagold.com msg#: 152574)**** $670.0 **** Liberty Head (2/17/07; 10:03:22MT - usagold.com msg#: 152270)$$$$ $668.8 $$$$ R Powell (2/23/07; 19:22:48MT - usagold.com msg#: 152534)$$$$ $666.6 $$$$ Minero (2/17/07; 07:39:45MT - usagold.com msg#: 152266)===BUT, here are the final April COMEX numbers for today:GCJ07 High $680.5 Low $664.0 Settle $672.5 --AND with the Entry of:$$$$ $672.2 $$$$ Tuco (2/24/07; 16:26:31MT - usagold.com msg#: 152574)Sir Tuco is the WINNER of the 1873 Danish Mermaid 20 K Goldpiece !!!while the two closest Entries were:$$$$ $673.5 $$$$ Sir Lothar of the Hill People and**** $670.0 **** Sir Liberty Head THEREFORE these two are each a WINNER of an one ounce pure SILVER U.S. Eagle.CONGRATULATIONS ALL you WINNERS, and thanks to all that entered but did not win THIS TIME !!Will the three WINNERS, Please advise Jill at USAGOLD via email to jill@usagold.com -- of your Forum Handle; REAL NAME and proper mailing address, so that she may post your coins.<;-) mikal (2/28/07; 12:20:00MT - usagold.com msg#: 152814) @YGM Thanks. Production a moving target, 'cept for those nuggetsthat just seem to sit there. ;) Topaz (2/28/07; 11:50:36MT - usagold.com msg#: 152813) April Au contract. http://www.crbtrader.com/data/default.asp?page=quote2&sym=GCJ7&mode=i Still showing 10+% over the low for '07. A 10% uptick every 2 mth's, 17% over 260 days, I can live with those stats.Comex again recalcitrant with delivery details at the roll-over so we can only guess @ todays Ag number. Let's go for 3k straight out of the box. movermeg (2/28/07; 11:20:13MT - usagold.com msg#: 152812) GIFT HORSE It is time to lock in the hubs on the old truck (deep snow in South Dakota), jump a few snow banks - then back it up once again and load up with precious eagles. Who says our government doesn't do us favors? movermeg YGM (2/28/07; 11:12:52MT - usagold.com msg#: 152811) Mikal...Some Pics to Drool Over http://images.google.ca/images?sourceid=navclient&aq=t&ie=UTF-8&rls=GGIT,GGIT:2007-02,GGIT:en&q=Largest+Gold+Nugget Some of the world's largest Gold Nuggets YGM (2/28/07; 11:05:35MT - usagold.com msg#: 152810) Mikal...Gold Rushes. Went thru some of my old files and dug up some Gold Rush data for you...Regards....YGMWhile the 1849 Gold Rush is the one most spoken of in US Gold history, it was not the first gold rush. That one happened in North Carolina starting in 1803. Not even coin collectors may know about that one, because unlike later gold rushes no federal mint was established there. Nevertheless, all of America's gold coinage from 1804 to 1828 was Carolina gold. Next was the Georgia Gold Rush in the southern Appalachians, which started in 1829. It was followed by the California Gold Rush of 1848–49 in the Sierra Nevada, which captured the popular imagination. The California gold rush led directly to the settlement of California by Americans and the rather rapid entry of that state in the union in 1850. Successive gold rushes occurred in western North America, gradually moving north: the Fraser Canyon, the Cariboo district and other parts of British Columbia, and the Rocky Mountains. The last "great gold rush" was the Klondike Gold Rush in Canada's Yukon Territory (1898–99), The Victorian gold rush, which occurred in Australia in 1851 soon after the California gold rush, was the most major of several Australian gold rushes. That gold rush was highly significant to Australia's, and especially Victoria's and Melbourne's, political and economic development. With the Australian gold rushes came the construction of the first railways and telegraph lines, multiculturalism and racism, the Eureka Stockade and the end of penal transportation. In South Africa, the Witwatersrand Gold Rush in the Transvaal was equally important to that country's history, leading to the founding of Johannesburg and tensions between the Boers and British settlers. Gandalf the White (2/28/07; 10:56:27MT - usagold.com msg#: 152809) YES, Sir Goldi -- Tis strange the VOLATILITY and happenings about CONTEST TIME !<;-) Goldilox (2/28/07; 10:43:17MT - usagold.com msg#: 152808) Correction contest correlation @ the Wiz,Is it my imagination, or do we really get hit with a fairly major "correction" every time there is a price guessing contest?Is the PPT trying to manipulate MK's contest, as well?They need to "get a life". mikal (2/28/07; 09:41:00MT - usagold.com msg#: 152807) @YGM The three main gold rushes usually drawing attention are California (1849), Colorado(1858-59), and the Klondike((1897) because of the size disparity with Georgia. There must be others even smaller, yes? mikal (2/28/07; 09:35:55MT - usagold.com msg#: 152806) @YGM Re: Gold rush. I was just reading the other day aboutthe FIRST US gold rush, in Georgia. YGM (2/28/07; 08:25:20MT - usagold.com msg#: 152805) TC...Korea I saw that on 321 & wondered what Neff's preoccupation was w/ Korean Gold mining history...He's looking for any & all pic's & history regarding this. Interesting, but not nearly so much as compared to Calif, or Yukon/Alaskan Gold mining history. The Hoople (2/28/07; 08:19:41MT - usagold.com msg#: 152804) Oh, in addition... Today we have Maestro-lite Helicopter Ben speaking. In addition we got an atrocious new home sales number(-14.3%) along with a lousy GDP figure for the 3rd month in a row, and Freddie Mac announcing they no longer want to play in the sub-prime sandbox. Chances of gold rising today? Zero. Look for some non-event day soon for gold's short sellers to cover. It's usually when few are paying attention. The Hoople (2/28/07; 07:51:10MT - usagold.com msg#: 152803) Sierra Madre, Paper Avalanche Further dittos on yesterday's gold action. There was at least 8 or more reasons for gold to soar yesterday- not the least of which the plummeting durable goods number- yet it declined. Like nearly every gold-friendly event the last 10 years gold gets a smacking. The message: don't leave your paper assets, only choose another (hopefully government) paper asset. In The Wizard of Oz it took Toto, a dog, to pull the curtain back and reveal the fraud of the wizard's control. A modern-day golden Toto is the Fed's nightmare. Like the wizard, once the fraud is revealed the power is lost immediately. mikal (2/28/07; 07:42:51MT - usagold.com msg#: 152802) 'Growth', Core Inflation revised down for 4th qtr 2006 http://news.bbc.co.uk/1/hi/business/6404561.stm Core inflation conveniently fell within the Fed's 'comfort zone' band to 1.9% from 2.1% prior. You can't make this stuff up! ;)US economic growth revised down - BBC News - Feb 28, 07The new GDP figure of 2.2% combines with lower durable goods numbers, lower inflation etc., to help the Fedmake their case that they shouldn't raise rates or lower them, so thy don't have to give away the real reason they're 'pausing'. Paper Avalanche (2/28/07; 06:43:43MT - usagold.com msg#: 152801) The Glitch If you want to see the "glitch" that caused the stock market to plummet down 500 points yesterday, simply overlay the Yen / Dollar chart over the DJIA chart for yesterday and you will see that they are nearly the same (especially at the point of the big plunge mid afternoon).It would seem more likely that someone closed out a big carry trade position at that point and it spilled over into the stock market.PPT be busy today.PA Paper Avalanche (2/28/07; 06:22:55MT - usagold.com msg#: 152800) @ Sierra Madre - Re: 152788 Ditto.Yesterday's POG action was nothing other than painting the tape to make sure that the sheeple did not see gold as a better refuge for their savings than stocks. It was the most blatant manipulation of the price that I can remember. During normal trading hours it was up hard into the close (around $689). Then, after 1:30, a miracle occured. Someone came in and pounded the price $25 immediately after the market was closed.However, there is a bright side to this. The fact that POG was not able to be suppressed during NORMAL trading hours(as was typically the case over the past few years) would imply that at this stage of the game TPTB have lost that much more control over gold. They are now relegated to manipulating the price in the thinnest possible trading hours of the day because they do not have sufficient capital to try and control things head on during normal trading hours.The fact that we opened around $685 yesterday and are currently sitting at $673 indicates that gold remains the better option to store one's wealth.The meteoric rise in gold shall resume today, IMO.PA Cometose (2/28/07; 04:45:45MT - usagold.com msg#: 152799) DIP looks like we're headed for a double dip test of 660It's only natural for the SHORT BOYS to extend the red tag sale another day This should be indicated at weeks end perhaps,......in the COT Report published Friday ... Cometose (2/28/07; 03:43:30MT - usagold.com msg#: 152798) Hey everybody there's a brand new dance now It's called the LOCOMOTION contrarian (2/28/07; 03:26:33MT - usagold.com msg#: 152797) Economic Confidence Model--Got It Right http://forum.therx.com/showthread.php?p=3861853 He got it right!"I ran across this and found it very intriguing...this circular economic model is predicting a downturn for the economy beginning on 2/27/07....Also note that this guy has been held in jail for 7 years awaiting trial. Pretty ridiculous. This model is based on the correlations of wars and based on a cycle of 8.6 yrs-Also note that this guy was named the best economist in 1990."..."While this business cycle can be calculated on quarter-cycle intervals of 2.15 years into the final peak for this major wave formation of December 24th, 2032. Though this is long beyond my life expectancy, there is so much more behind the true understanding of the driving forces within the business cycle. I have learned that it is easy to claim coincidence and ignore the telltale signs of a hidden order. It is easy to argue that there is no basis for such a model without ever making an effort to test results. If everyone stopped with such criticism, most of ancient Greece would still be buried and Homer would still be considered a book for children. Man would not fly or travel to the moon. A cure for cancer would not be sought and progress would simply not exist. But furthering our understanding is part of humanity. Like law, that when strictly enforced deprives society of justice when circumstances are ignored, it is also the sin of ignorance toward new concepts that deprives mankind of progress and ultimately our posterity. The Economic Confidence Model in 2.15-year intervals1998.55... 07/20/98 2000.7.... 09/13/00 2002.85... 11/08/02 2005.... 01/02/05 2007.15... 02/27/07 !!!!!!!!!!!!!!!!!!!!!!!!! 2009.3... 04/23/09 2011.45... 06/18/11 2013.6... 08/12/13 2015.75... 10/07/15 2017.9... 12/01/17 2020.05... 01/26/20 2022.2... 03/22/22 2024.35... 05/16/24 2026.5... 07/11/26 2028.65... 09/04/28 2030.8... 10/30/30 2032.95... 12/24/32 In the next issue of the WCMR, the details of this business cycle will be expanded to provide a list of turning points down to the 8.6-month interval. There is a wealth of knowledge that lies ahead if we are not afraid to explore. Regularity of the business cycle does not mean that we lack free will. For it has taken me 30 years of observation to get this far. The peak for one nation may be the low for another. For within the scheme of global capital flows, not everyone can enjoy a boom simultaneously. For every gain in trade, there must be someone who loses. This is simply the nature of the global economy. The greatest booms unfold when capital concentrates in one sector. When that capital shifts, you also find the result of the greatest financial panics in history. An individual will always possess the free will to follow the crowd or strike out with his own independence to buck the trend. There will be those who believe in the business cycle and use it to their advantage just as there will be those who refuse to acknowledge its existence. As long as not everyone believes, the cycle will exist forever. The regularity of the business cycle is not determined by man alone; for within its deep calculations resides the very heart of nature itself. Like the Biblical forecast of Joseph that seven years of plenty will be followed by seven years of famine, understanding the nature of the business cycle can certainly enhance our ability to better manage our affairs rather than constantly add to the intensity of the cycle through our own error of intervention. For now, it is more likely that the politics will continue to act in the opposite direction of the cycle adding to its intensity and enhancing its volatility. Perhaps I have been an evangelist seeking to point out that the economy is like a rain forest – destroy one species and it will ripple through the entire system. The global economy to me is the same delicate system that cannot be viewed in isolation, but only through its collective integration. The failed labor policies of Europe have created perpetually high unemployment and the worst record of economic growth for the past 30 years. Instead of objectively reviewing what has happened, Europe seeks to federalize and strengthen the very controls that already exist. Communism and socialism are all political byproducts of our failure to understand the business cycle. Blaming the rich, your neighbor or a particular race are all vain quests to explain the cause of a cycle that has moved through the boom bust phase. Who knows, perhaps it is possible that if for one moment we truly understood the business cycle and worked in harmony with it, the possibility of reducing the amplitude just might result in a more stable political-economy for all mankind." TownCrier (2/28/07; 02:13:59MT - usagold.com msg#: 152796) Goldi, to his credit, the missionary was reasonably well-versed! http://www.wockyjivvy.com/poetry/acclaim/hwl-vill.html The Village Blacksmith --[Henry Wadsworth Longfellow (1807-1882)]Under a spreading chestnut-tree The village smithy stands;The smith, a mighty man is he, With large and sinewy hands;And the muscles of his brawny arms Are strong as iron bands.His hair is crisp, and black, and long, His face is like the tan;His brow is wet with honest sweat, He earns whate'er he can,And looks the whole world in the face, For he owes not any man. [...]Toiling,---rejoicing,---sorrowing, Onward through life he goes;Each morning sees some task begin, Each evening sees it close;Something attempted, something done, Has earned a night's repose. Thanks, thanks to thee, my worthy friend, For the lesson thou hast taught!Thus at the flaming forge of life Our fortunes must be wrought;Thus on its sounding anvil shaped Each burning deed and thought.R. TownCrier (2/28/07; 02:03:51MT - usagold.com msg#: 152794) WORST quote of the day... From Bloomberg:"The stock market didn't collapse until after gold's close," said Billy Flahive, a gold trader and partner at Eagle Futures Inc. in New York. "The liquidation got piled into gold [in thin, after-hours electronic trade]. When they liquidate the ETF, they've got to liquidate gold bullion, so they had to come to the market. They did it after the close so it's a little dramatic."^____ Booooo!_____^For the most part, sellers of ETF shares are simply transferring them on the open market exactly as Home Depot shares are moved around on the open market. That is, to extend the analogy, as (HD) shares are sold, the underlying brick and mortar of Home Depot is not consequently liquidated on the scrapyard market.In point of fact, most buyers and sellers of the ETF funds have, by careful design of the ETF architecture, absolutely no legal basis to obligate either a purchase nor liquidation of physical gold to correspond with any such purchase of sale of ETF shares. That exclusive right of creation or redemption belongs only to the elite few entities enrolled as "authorized participants" within the ETF framework.In fact, MORE bullion (very likely borrowed in origin) has been set aside to create more ETF shares which are now poised to be put into circulation, and at the same time these shares in turn ratchet up the available lending pool of these shares as a financial device -- effectively creating paper on top of paper.Excerpt from InvestmentNews:(February 26, 2007) -- Barclays Global Investors International Inc. it will sell up to 23.35 million additional iShares COMEX Gold Trust, according to a filing with the Securities and Exchange Commission.[In a nutshell, these shares are] ...offered to the public ... at prices that reflect their trading price on the American Stock Exchange...http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20070226/REG/70226025Unfortunately, folks really need to work overtime in order to properly clue in on all of this very papery stuff.R. mikal (2/28/07; 01:48:51MT - usagold.com msg#: 152793) (No Subject) http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_sesit&sid=aG7ojQexv3Nc Gold, Treasuries Offer Shelter in Stock Bust | Michael R. Sesit | Bloomberg.com: Opinion - Feb 28, 07Column quotes Faber, Greenspan, more smiles45 (2/28/07; 01:39:41MT - usagold.com msg#: 152792) Yesterday's gold volume very low for such a large range Yesterday's volume was a scant 60,000 contracts on the Comex. That was not a typical Commercial set up. Once they get the market in full computer sell off mode they generally just calmly buy scale down or take big offers when available (500 lots). The rally back to $683 puts me in a little quandry as who or what entity ran back the POG? I doubt if it was locals. If it was a fluke expect a huge hit today. The commercials have 100,000 contracts to cover. This usually take place at the 200EMA level, but can be in between the 200 & 300day EMAs. That figures today at $620(200EMA) or the lower $610 level(in between 200 & 300EMAs).For me the harder the better. Strong internals are needed before the soon upcoming impulsive rally & test of the record high at $875./Peter Goldilox (2/28/07; 01:36:34MT - usagold.com msg#: 152791) Korean Gold story @TC,Great Korean gold story. Gotta love those missionaries, so full of love and tolerance. That quote sounds like it came from one who cut his teeth teaching the Hawaiians about "pineapple labor" in return for "smallpox". TownCrier (2/28/07; 01:11:01MT - usagold.com msg#: 152790) Here's one especially for you, YGM http://english.ohmynews.com/articleview/article_view.asp?no=346271&rel_no=1 [article courtesy of my friend G.]HEADLINE: North Korea's Gold Mines -- Wealth has attracted foreign interest over three millennia(2007-02-21) -- Many people's impression of North Korea is that of a poor country unable to feed its own people and desperate for cash. Other than selling weapons, printing counterfeit money, and engaging in the production of illegal drugs, it is thought that it has very little means of obtaining hard currency. Yet, recently, it has received a great deal of the media's attention for its sale of gold to Thailand. Many people forget that North Korea has always had an abundance of mineral wealth -- including gold.Korea's wealth had long been known not only in the Far East, but also in the Middle East. Ibn Khordadzbeh (844-848), an Arab, wrote that "there is a mountainous country named Silla and divided into numerous principalities. Gold abounds there." Another Arab, Ibn Rosteh, repeated this claim in the 10th century when he pronounced Silla was very rich with gold. Arab merchants traveled from their own countries, along with the Chinese, and traded with Korean merchants along the Yesong River during the Koryo period. Most of Korea's trade with these merchants was mainly gold and silver utensils, copper, ginseng, paper, fans and swords.Eventually, as Korean foreign policy changed and it began to avoid most intercourse with foreign nations, this trade died, but the legends of Korea's wealth didn't...Although gold is found throughout the Korean peninsula, it was, for the most, primarily mined and panned for in the mountainous regions of the northern provinces of Korea and along the eastern coast using primitive methods. This mining has gone on for literally centuries...It wasn't until 1896 when the first large mining concession was granted to a couple of American businessmen that "modern" gold mining in Korea began...The Seoul Mining Company was established in 1907 when two American businessmen, H. Collbran and H.R. Bostwick, leased Su'an mine from a British mining syndicate... Within the first six years of its operation it had produced nearly $3,000,000 worth of gold. Although the Seoul Mining Co., at first appeared to be one of, if not, the richest gold mining operations in Korea, by the early 1920s it was apparent that the gold was nearly depleted and in 1924 the mine was closed.One of the chief problems for the early mining companies was transportation. Most of these gold mining sites had few, if any, crude roads or paths to them. It was often easier to transport supplies and equipment by flat-bottomed boats up the river to the landing nearest the mines. Then, depending on what was being transported, Korean ponies or bulls were used to manhandle the equipment and supplies to the mines.The Korean bull was a slow moving powerful animal that was extremely docile and easily handled by its mapoo (handler), the ponies on the other hand were described as "swell-made spirited little beasts [but] generally vicious." One early Westerner described his first encounter with his pony:"As soon as the creature saw me approaching to mount, it reared and kicked furiously, and opened its mouth and flew at me like a tiger."So violent were these little ponies that a missionary remarked: "I love to see the pony shod, see him pinioned teeth and nail, in one hard knot, lying on his back under the spreading chestnut tree, with the village smithy putting tacks into him that brings tears to his eyes."^___(see url for full text --- a rich trip down History Lane)___^That last bit about the ferocious 'pony' sort of reminds me of the Colorado School of Mines feisty yet lovable mascot, Blaster, the bucking ass.On a more pertinent investment note, ask yourself why a delightful gold-related article of this type has been enlisted into the current era's full slate of media-issued propaganda...R. Topaz (2/28/07; 01:10:08MT - usagold.com msg#: 152789) Not my night ...sheesh! The numbers represent zeros ...get a grip on these as I'll be testing you-all as our monetary conditions deteriorate! Sierra Madre (2/28/07; 01:07:48MT - usagold.com msg#: 152788) About the sell-off in gold - another point of view I don't think this sell-off (violent!) was gold holders "throwing out the baby with the bath water" as Black Blade says.I'd rather think of cowboys controlling a stampede: don't let the herd get going towards gold! By no means!Gold was sold down by the PTB, call them the Gold Cartel or whatever. The idea being, "Don't let the public think for one minute that they can find refuge in gold, because if they do, it's all over, boyz!"Get the cattle to run in some other direction - NOT TO GOLD.SIERRA Topaz (2/28/07; 01:05:59MT - usagold.com msg#: 152787) @PA ...billion. A Billion here a billiad there, pretty soon we're talking PaperMoney.There is a quirk in accounting in Europe that you may or may not be aware of ...and it may or may not be relevant to ECB accounting. American Britishmillion 6 6billion 9 12trillion 12 18quadrillion 15 24quintillion 18 30 sextillion 21 36septillion 24 42octillion 27 48nonillion 30 54decillion 33 60undecillion 36 66duodecillion 39 72tredecillion 42 78quattuordecillion 45 84quindecillion 48 90sexdecillion 51 96septendecillion 54 102octodecillion 57 108novemdecillion 60 114vigintillion 63 120 968 (2/28/07; 00:54:13MT - usagold.com msg#: 152786) Russian Central Bank Reveals Currency Reserves Data http://www.kommersant.com/p746042/Central_Bank_Currency_Reserves/ The report reveals the composition of Russia's currency reserves, 51.5 percent of which is kept in the U.S. dollar, 38.6 percent in the euro and 9.8 percent in the UK pound while 0.2 percent is in the Japanese yen and the Swiss franc. Black Blade (2/28/07; 00:40:14MT - usagold.com msg#: 152785) Smiles45 Thanks. Black Blade (2/28/07; 00:37:27MT - usagold.com msg#: 152784) Fun On Wall Street - 2 The fact is, if Alan Greenspan and a few others are right about a coming recession (and I think they are right), then holding physical assets like precious metals is where you want to be - or as the touchy feely types say - "its a good place to be". Remember it was Alan Greenspan who as Federal Reserve Chairman was testifying before Congress during the semi-annual Humphrey-Hawkins testimony when he was asked by Rep. Ron Paul (R-TX) about the stockpile of US Gold. Alan, in a "senior moment" spilled his guts (and the truth for once) in a flashback to his Ayn Rand Institute days said: "Gold is the ultimate store of value" and is the national insurance. I think it rather amusing when elderly people have these "senior moments" and say what they think and tell the truth when they normally would be cautiously vague. We all recall "Green-Speak". Of course we can't blame Alan Greenspan alone for the scare in today's market. There are other factors at work here. The Real Estate Bubble is just another proverbial "nail in the coffin" for the global economy. The sudden demise of the Subprime Mortgage real estate market sent shock waves out that are rippling through the financial sector and now threaten to collapse the Prime Mortgage market. Even brokerages and Banks are feeling thos financial tsunami (remember that the banks and brokers are intimately tied to the real estate mortgage sector - packaging and buying mortgage securities). This is not just confined to the US but is also rippling through European and Asian real estate markets.The global markets are teetering on the edge and could very easily plunge into oblivion taking down the global economy. After all - Selling begets selling. I suspect that soon we will see another "flight to quality". First the run is to the more "over-priced" government bonds and treasuries. Next is to cash and then to hard assets - GOLD and SILVER. The "fun" has only just begun. After all, we do live in "interesting times".As always, get outta debt and stay outta debt, stash enough emergency cash for several months' expenses, accumulate Gold and Silver "portfolio insurance", and start a storage program of nonperishable food and basic necessities.- Black Blade Black Blade (2/28/07; 00:36:43MT - usagold.com msg#: 152783) Fun On Wall Street We had a little taste of what can happen when a minor market ripple occurs in a third world country half a world away. Tonight all the discussion is about the rapid drop on the DJIA index in New York today. It was after all really a small jolt but it did grab everyones attention. In fact CNBC is all a buzz about it tonight in after hours television. So the question that was raised is: "why did Gold and Silver sell down?". I am amazed at this question as many of you should be. Investing in Precious metals and Energy has been "fashionable" lately. Many investors bought everything from commodity based ETFs to commodity based ETFs to commodity futures. When the markets tanked today the alleged "smart money" panicked and sold winners to cover for losers. These masters of investing (Hedge Fund managers and Investment Houses) essentially threw out the baby with the bath water. Obviously precious metals got caught in the panicked downdraft. Not a surprise at all.- Black Blade Topaz (2/28/07; 00:30:30MT - usagold.com msg#: 152781) I'd thought about 100, http://www.nymex.com/media/delivery.pdf Turned out to be 94. Kept them on their toes right 'till the end though.G'lox, "Canon fodder" ...pa-leeese ;-) Goldilox (2/28/07; 00:19:40MT - usagold.com msg#: 152780) PoG retracement With yesterday's high at 688.5 and low at 659.3, a 50% retracement will occur at 673.9, coincidentally quite close to my closing price guess, after adding the differential between Spot and Apr Futures.-G'lox Topaz (2/28/07; 00:17:34MT - usagold.com msg#: 152779) for clarity's sake. It always sounds so clear when you say it in your head :-($PoG is now discounted by 30 days IR/Time premium ie: Spot is AT LEAST $20 higher (uncalculable really) as we go through the Comex non-delivery month.I'll shut-up now! Topaz (2/28/07; 00:08:47MT - usagold.com msg#: 152778) What "IS" the Spot Price then? Todays action after the Comex live session closed has confirmed to those of us who watch these things that the world in which we live is devoid of a Spot Gold price.If you'll recall the FIRST trading day of Feb we got a $20 odd spike as $PoG aligned itself with the delivery period. Today, at first offortunity ie. at access open, $PoG plunged $20 ...aligning with it's theoretical "future" value. Now what does that tell you?Better still, I'll tell you what that tells me!It tells me that the $PoG as we see it meandering across the screen is nowhere near a "Spot" price and as close as it gets is representative of what might be a Gold price with 30 days of IR and time premium factored in.Do you feel lucky? ViewYesterday's Discussion.
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