Some Counter Spin to the Short Dollar Unravel (and little/no inflation talk) and the Bernanke Kohn PR

The "experts" and Fed officials including the man himself, Bernanke, are all lining up to present the dollar short squeeze and "no inflation" MOPE (management of perceptions economics) method of economics and market manipulation in my opinion.

While I'm sure we'll see optimal interventional efforts to firm up the MOPE, such intervention in currency markets is moving more and more towards "pushing on a string" as the US and the Fed clearly would like to see a weaker dollar especially vs. the Yuan.   All the other major currencies are in the same highly indebted camp as the dollar in my opinion and will probably continue to devalue relative to the cost of living and real goods over time.  So while I believe there will be minor fluctuations between the US dollar and basket of currencies, I think that hard assets and alternatives to fiat will continue to move up sharply for an extended period.

Here is some excellent commentary on the subject from Stewart Thompson of Graceland Updates in a recent article he wrote entitled Gold: Keep Your Fingers On The Buy Trigger!

"…The most important news item of the past few weeks is Dr. Ben Bernanke's statement yesterday. He says he sees no overvaluation, let alone bubble-action, in the "asset markets". His number 2 man Kohn backed him up. This is a very powerful statement from the Fed. Note that he spoke of valuation more than price, and correlated the rise in commodity assets against the 64% rise in the stock market.

18. What is he really saying? First, he's saying that soon the gold bears will soon have so much gold bubble gum in their mouth they will risk choking to death on it. Seriously, Dr. Bernanke is laying out is that he doesn't care about $80 oil against a Dow at 10,000. He doesn't care what your food costs. He's pretending prices are low and giving the green light to dollar devaluation. Here is the oil chart. Oil looks set to blast to over $100. Just as on the breakout over $1000 in gold, the move over $147 will feature the oil community in spectator mode, while the banksters make all the money. Don't watch the banksters. Join them!

Oil Monthly

19. The three main errors that amateur technical investors make are: a. failure to focus on the monthly price charts b. operating on a sort of "block mentality", and c. failure to buy weakness and sell strength. The first error is pretty simple. 60 minute charts and daily charts are "exciting". Most investors don't have the patience to accumulate a situation for years. You may buy and book profits regularly during an accumulation period with a portion of your position, and so you should. So you are working with more of the market's money, less of yours. But the focus is: Waiting. Patience. Gold will sell off into your buy orders. But not if they don't exist in the market right now. Take the action you know you must take.

USD Weekly

20. The 2nd error is more complex, but the current analysis of the US dollar chart by the gold bears is a perfect example. If you look at the green "pipes", the histograms, on the US dollar on just the weekly chart, never mind the monthly chart, you will see a very slow drift upwards. Powerful rallies rarely commence from such a condition. The most important point today is to have your gold and gold-related item buy orders in the market. The 2nd most important point is to understand the conditions are near-perfect for a crash in the US dollar, one that could be followed by a real attack on your bank accounts by the banksters, via a massive devaluation of their value while legally preventing you from liduidating. This is the opposite of the silver market in 1980, which went to liquidation only. This time, the banksters plan to take your bank accounts to a No-Liquidity-For-You-Ha-Ha-Ha situation. I have repeatedly said that while the US dollar could rally, this is more like a situation at 6500, only it is as if the Dow failed at 6500, instead of soaring as it did. The lows at 72 on the dollar are at maximum risk of blowing out early in the new year. The odds of a US dollar crash and panic are growing, and doing so exponentially. Here is the dow compared to US dollar with a focus on the macd histograms.

DJIA Monthly

21. How this plays out in the bond market is unknown. A crash there could follow a US dollar currency wipeout. At Dow 6500, the green pipes on the macd monthly chart histograms extended far down the chart, and the slope of those histograms was very very steep. That is one of the reasons I suggested right at the low that the Dow was more likely to have made a bottom. It could have crashed and started a whole new downleg, but the technical indicators suggested: No.

USD Monthly

22. The US dollar monthly chart is in a horrific situation. It shows many of the major indicators on sell signals. This is a disaster in the making, and Ben Bernanke has better chartists in the world at his beck and cal. He knows the score, and the score is: Thumbs Down On The US Dollar. Are You Prepared? I again ask all those in the gold community who have no gold, who blew it all out betting on some $50 or $100 micro move: sit down and calmly reason things thru. Ben Bernanke and the US Treasury are going to revalue gold against the dollar. The mechanism is the US dollar carry trade, not a confiscation of gold. Joe Public doesn't have any gold, he sold his 2 carat ring to the pawnshop months ago.

23. You have been taken by the banksters, if you sold all your gold "to get in a 100 bucks cheaper". It's already $230 above the 905 "overvalued" point, the point where all this "get me out of my gold now!" madness began in the gold bears analyst kindergarten. The get it cheaper strategy is a Total Failure. The team hero Mr. Gartman is blowing bubbles with gold bubble gum that you paid for. You have no gold and now the banksters are preparing their plan to come for your bank accounts. Their strategy is to convert your deposits into some sort of fixed govt bond that you can't sell. Then they'll order Dr. Bernanke to turn on the printing press and devalue you straight to the bread line. Most of the world's investors have spent the past year buying bonds and moving money from the stock market to the bank. By definition, that is the next target of the banksters. It is their grandstand play. The banksters are holding gold and gold's commodity market relatives. The public is holding a giant across the board gold short dollar-long bet, by being long paper currencies and bonds. All is in place for the ultimate bankster gold-play.

24. You failed if you listened to the gold bubble heads and the topsters. You can fix all that failure, right now. You must enter buy orders for gold every 10 dollars down from here in a pyramid formation, each buy rising in size. Don't think about it. Do it. And put some focus on gold's relatives. Some of these items haven't even moved in price while you blubber about missing out on the entire gold bull market. The only thing you've missed out on is the right mindset. Your mindset, right now, is exactly the mindset the banksters want you to have, so you really do miss out. They will be in party mode while you are in shell-shock mode. Terminate that mindset today. The CRB index, which is the index of general commodities and the Van Eck Gold Juniors ETF both look to me like they are hooked onto gold bullion with a massive elastic band for the ride to Pluto. The juniors will slingshot right past Pluto. The only question is: Are You Onboard? I'm posting a number of Pgen scenarios for the juniors on the site this morning. Gold is already down $14 from yesterday's highs as I send this off. If you are covered in gold bear bubble gum with no gold, I suggest you, ASAP, spit out that gum and hit the real buy button!

Nov 17, 2009
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
email for questions: s2p3t4@sympatico.ca
email to request the free reports: freereport1@bell.net

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