Manipulation: gold, silver, brains

Today's lesson: manipulation of stocks and metals is a daily event.  It works as people do not actually know why they buy or sell other than other people are buying or selling.  I used to pay attention to talking heads and, sometimes, they are in the stream and can predict its direction.  Usually, opinion is generated by big houses and the markets themselves, then press releases to to media and you have a new environment.

We are told gold is dead.  Why?  Because others say gold is dead.  This is a fun way to bet, but it doesn't mean anything.  Read below and "bet" accordingly, which to me means buy silver and peanut butter. But, I repeat myself.

Large institutions have driven down prices in order to keep away from insolvency.  If silver takes off, for example, Morgan Stanley is looking at a failure. In drops like this, it can clean up the mess it inherited after the last economic collapse.  However, it is still in a precarious position.

From Anglo-Far East gold guru:

Capitulation - Part 2

The price of gold is currently trading more than 4.5 standard deviations below its 50-day moving average.

 I have previously made reference to the fact that many analysts who live and die by their charts are saying gold's story is all over. In honour of their opinion let's consider a couple of contrary charts.

The chart above shows the daily overbought/oversold reading for gold based on the number of standard deviations it traded above or below its 50-day moving average.  Last week I detailed the events around the 1975 sell off where real gold was dropped into the market and indeed here we are in 2013 with an even deeper low than back then albeit by a whisker and accomplished amazingly with no actual metal getting dumped if that makes any sense. We now have a reading that shows gold is the most oversold since 1975.

Given the other end of the spectrum at positive 4 or higher which is an area where gold's price resides much of the time, you do the maths on where gold's price would be when it eventually slingshots the other way. I repeat my question "have the fundamentals of the world's financial system been fixed such that currency, the banking system and governments be trusted and gold dispensed with or do we need to remain vigilant to events still unfolding?" 

The slingshot in 1975 was breath-taking and quite aside from the correction from $200 odd to $119.00 and then its bounce to $850.00 plus, it's standard deviation measure spent the last half of the decade firmly in positive territory. The current price of gold is in the high $1300.00's and negative 4.5 on standard deviations below the 50 day moving average. Consider that carefully and this moment in time when you look back in a few years as to what you were doing and deciding regards being led by the crowd or seeing the big picture?

A good friend and astute banker sends me an email last week asking would I like to go halves in a short position in gold as in a big one. He cites the risk of further downside over the next 3-6 months as justification so let's consider the current position in the trader's camp

In the latest CFTC Commitmentof Traders report it's been noted that Comex gold short positions have grown to a newall-time high of 79,416 shorts. In fact short positions in gold have risen 25% over in the last three weeks. Now with the greatest of respect to all those astute analysts that may or may not be correct to a further capitulation, my question to my good friend was why would you want to chase a falling knife after its already dropped so far and risk getting cut? I watch my kids fight over the baking bowl as to who gets "licking the spoon rights". Frankly as a mature adult I would rather just wait for the cake to bake and have a nice big piece thank you! What would you prefer- lick the spoon or eat the cake as to buying or adding more?

Why anyone would want to go short or look at their current holdings in gold/silver as a glass half empty is amazing and testament to the power of human emotion to make decisions and judgments on sight versus fact.

I may wince at the way metals and shares are getting hammered but I am encouraged when I look at the facts, consider history, review the way governments have and are behaving and I make my decisions based on that. As the late Bob Chapman would say "you go long and stay long". That is the way to really cash in on a long term secular gold bull market. Leave the traders to slaughterthemselves!

Duncan Cameron
Senior Relationship Manager
Anglo Far-East 

The Dyke Is Leaking

If you missed this. I guess a rogue employee did this in California.

IRS faces class action lawsuit over theft of 60 million medical records

California HIPAA-covered entity sues big time

SAN DIEGO | March 15, 2013

inShare74

The Internal Revenue Service is now facing a class action lawsuit over allegations that it improperly accessed and stole the health records of some 10 million Americans, including medical records of all California state judges.

According to a report by Courthousenews.com, an unnamed HIPAA-covered entity in California is suing the IRS, alleging that some 60 million medical records from 10 million patients were stolen by 15 IRS agents. The personal health information seized on March 11, 2011, included psychological counseling, gynecological counseling, sexual/drug treatment and other medical treatment data.
    
"This is an action involving the corruption and abuse of power by several Internal Revenue Service agents," the complaint reads. "No search warrant authorized the seizure of these records; no subpoena authorized the seizure of these records; none of the 10,000,000 Americans were under any kind of known criminal or civil investigation and their medical records had no relevance whatsoever to the IRS search. IT personnel at the scene, a HIPPA facility warning on the building and the IT portion of the searched premises, and the company executives each warned the IRS agents of these privileged records," it continued.  

 According to the case, the IRS agents had a search warrant for financial data pertaining to a former employee of the John Doe company, however, "it did not authorize any seizure of any healthcare or medical record of any persons, least of all third parties completely unrelated to the matter," the complaint read.    The class action lawsuit against the IRS seeks $25,000 in compensatory damages "per violation per individual" in addition to punitive damages for constitutional violations.  Thus, compensatory damages could start at a minimum of $250 billion. 

Times Are A Changin'

       THE SECOND COMING

    Turning and turning in the widening gyre

    The falcon cannot hear the falconer;

    Things fall apart; the centre cannot hold;

    Mere anarchy is loosed upon the world,

    The blood-dimmed tide is loosed, and everywhere

    The ceremony of innocence is drowned;

    The best lack all conviction, while the worst

    Are full of passionate intensity.

    Surely some revelation is at hand;

    Surely the Second Coming is at hand.

    The Second Coming! Hardly are those words out

    When a vast image out of Spiritus Mundi

    Troubles my sight: a waste of desert sand;

    A shape with lion body and the head of a man,

    A gaze blank and pitiless as the sun,

    Is moving its slow thighs, while all about it

    Wind shadows of the indignant desert birds.

    The darkness drops again but now I know

    That twenty centuries of stony sleep

    Were vexed to nightmare by a rocking cradle,

    And what rough beast, its hour come round at last,

    Slouches towards Bethlehem to be born?

William Butler Yeats (1865-1939)

This poem followed upon the end of World War I. It is correct to say the rough beast was, at last, set upon us and slouched toward Bethlehem. It overwhelmed the world, even in the United States in the Wilson and F.D.R. days. Today, things a slightly different, the fascist beast is not the toy of the self-important dictator who knows what is best for the people. 

Today's fascist monster is unseen and has armies of orcs will versed in how to undercut morality, family, and the annoying republican impulse toward self-government, what with our negative Constitution and all.

As with all things, even that which formed from the unwinding of history, must, itself, unwind. Things have begun to fall apart for the beast and will unwind quickly as there was no solid center at all to this Matrix. There was only subversion for its own sake, a way for those with no foundation to find meaning. In the past, people believed in fascism; today, it is hidden behind a facade because the people enjoy their freedom.

The skills of the duplicitous are strong and the people unsuspecting. Easy marks. Now, the subversives' skills are clearly inadequate  to govern. Those awake see they have placed their faith in the unworthy.

Take note of the unwinding. The unwinding is inevitable and hard times will come as we must exorcise the parasites. Me must remember to give no quarter in slaying the beast.   

Just a few scandals and facts to consider: 

AP Privacy Intrusion

Murder in Lybia to Protect an Election

IRS Used To Chill Speech and Privacy

US Recording Text Messages

US Demanding Money from Insurers to lobby for Obamacare

US recording all phone calls and emails

US demanding data from Google, Facebook, et al

US now permitted to use troops in your town

US monitors (and uses) health data you supply believing it is protected

US has 900 military bases around the world

US annual budget is greater than all the income of its citizens

US funding and networking local police to follow its direction

This list is endless. The federal government is not a government, it is a control mechanism operated by people we don't know for their gain. Mr. Obama is just a figure head, though he likely no longer thinks so. The mechanism only works by taking wealth from those being controlled. It is a feudal estate.

It is our obligation to kill the beast we have nurtured.  This is not complicated a matter. We just need to return to personal morality and honor; this is a rejection the tyranny of the state, the collective. It is by believing in a collectivist view that we lose our freedom. In the end, we must not feed the beast for the monster can only exist by taking the fruits of the workers. Avoid the beast and refuse to purchase things from its family.  

In the end, it all comes down to money.  GE is about using power to earn money; for a small amount of support to the state, it reaps billions of dollars in sales. It plunders the earth and uses government to crush competition.

What we can do is simple. Recall, the movie They Live? The key is enlightened awareness.   

For my part, I don't buy an American newspaper or watch TV. To do so is to feed the enemy. I make no more entries is Facebook and use IXQUICK as a search engine. I will not permit my health records to be part of a national network open to the government (HIPPA does not include privacy against the government), which likely already has illegal access. Today, few think these precautions are extreme.  A few years ago, few could see the pen the farmers are building around them.

Make a small stand every day. Home schooling is not difficult and your children will be vastly better off. I never had a gun, but will buy one. It is time to think about having protection, but merely buying one is a vote. I will vote in primaries against all (maybe) sitting politicians. Don't care about parties, they are both tools of control.  We can avoid terrible times through a virtual revolution.

Everyday, we must reclaim our heritage, especially as the beast's time is waning, for now. If we do not, then we face a terrible future and the lives and deaths of our ancestors were for nothing.