Gold Bugs: Do You Suffer From Pappagallo? (GLD, SLV, IAU, AGQ, PHYS)
Dominique de Kevelioc de Bailleul: As the Greek vote Sunday came and went, the G-20 Summit, ditto, and now the announcement of the FOMC meeting in Washington comes to a close, gold bugs appear to be hanging onto every event like dogs eyeballing his master in hopes of receive a scrap from the dinner table.
And for those news junkies following the European spectacle, how many times do we need to read a variation of the following quote? Get my next ALERT 100% FREE
“This [prop up of the global financial system] is not going to work unless they let the fund gear up and draw on the full firepower of the ECB,” David Owen of Jefferies Fixed Income told The Telegraph.
And here comes that ‘pappagallo’ line that Trends Research Institute’s Gerald Celente talks of—that tired, over-baked and repeated analysis coming out of every so-called financial ‘expert’ quoted for the past three years from so-called ‘papers of record’ . . .
The “only institution with the credibility and balance sheet to reassure markets. It would be much simpler if the ECB carried out quantitative easing but that does not seem to be an option.”
No kidding! If only the masters of markets would notice how hungry you are, how starved for capital you are. You’ll get it, because if you don’t, some very angry mobs, mixed and matched up among 46 million food-stamp recipients toting guns, won’t be too happy going to bed hungry. And if you don’t think America’s pathetic version of nobility didn’t notice what happened in Egypt and Libya after the money run out, you’re not even half on track to understanding the gold market.
“So the wolves are at the door and it’s the door to (German Chancellor) Merkel’s home,” prolific author and money manager Stephen Leeb told King World News, Monday. “My guess is she is going to cave. The Mexican central banker, Ortiz, who is widely regarded as one of the clear thinkers, was quoted as saying they can stop the problem in Europe almost immediately, ‘by carrying out a massive round of government bond purchases.’”
Leeb continued, “I think that’s where we have to go. In other words, just as our Fed has printed literally trillions of dollars by buying our bonds, the European central bank has to do something very similar.”
High-profile politicians and bankers are deathly afraid of violence and retaliation from an awakened citizenry, now hungry. When a nation’s currency collapses, so do civility and bourgeoisie pretensions. Leeb isn’t quite sticking his neck out with his prediction (and he knows it). Either money floods the system now or in the fourth quarter, or whenever, privately held gold won’t change one microgram.
According to three-years of veteran gold trader Jim Sinclair’s commentary, the path has already been set; the endgame to the global financial system is clear—it’s done! The propaganda, sideshow events from the actions taken by politicians and monetary authorities at this stage, are much, much too late and won’t change the outcome for gold. Sinclair calls the charade, the circus act of political spin and downright lies—MOPE—Management of Perspective Economics. The Fed calls it, Management of Expectations—or ’1984′ talk for the word: propaganda.
Either gold drops far less than financial assets, or gold will soar to massive heights, leaving financial assets behind. What’s important is, the purchasing power of gold after the financial 9-11 dust settles in the coming months. Then you become one of the ‘rich’ and ‘wanted’ by the lynch mob who will come to believe that you were unpatriotic for ditching worthless script, contributing to the dollar’s demise. That’s all that you need to worry about.
Take it from Kyle Bass, the billionaire who has prepared for anarchy by fortifying his residential estate against wayward criminals. Ask George Soros about Malaysian Prime Minister (1981-2003) Mahathir bin Mohamad’s publicly scapegoating the famed currency trader’s role in the Asia currency crisis of 1997-8.
In other words, just get some of the yellow metal and stop the suffering from the day-to-day wranglings of the price of gold. Better yet, if you want to see what a patient’s heart monitor reading looks like during a heart attack, buy the white metal, silver, and enjoy the adrenaline rush.
Now, start preparing for escape routes and telling your friends you gave up on the gold market and sold all of what you had to pay for unexpected expenses. You’ll be scapegoated, ratted out and a victim of envy and scorn—as the Mogambo Guru Richard Daughty predicts.
Related: SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), iShares Gold Trust (NYSEARCA:IAU), ProShares Ultra Silver ETF (NYSEARCA:AGQ), Sprott Physical Gold Trust (NYSEARCA:PHYS).
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