EU Weekly Target

EU weekly target to look for within current trend.

EU hits 100 DMM

EU hits daily 100% MM projected from the current day's high. This is also confluence with the 61.8 daily fib pivot projected from the open. Larger targets are also shown at the 100 fib pivot. Eu has now hit the weekly 50% and daily 100% MMs. The current day has also fallen within the weekly 38.2 MM projected from today's high. Very high probability that EU has extended to its maximum for todays range.

EU hits 50% WMM

EU hits the weekly 50% MM

EU Setup Short

Zone for trend continuation.

EU hits Monthly Control 61.8 MM

EU today extended its bearish run to hit the Monthly Control 61.8% measured move for Nov.

EU hits Weekly 100% MM

Euro hits 100% of the previous weeks measured move. Shown in the gray box.

EU Monthly Measured Move Realized

The Oct 100% MM from Nov high to today's low.

Food Inflation

 

 

NIA Projects Future U.S. Food Price Increases

 

The National Inflation Association today announced the release of its report about NIA's projections of future U.S. food price increases due to the massive monetary inflation being created by the Federal Reserve's $600 billion quantitative easing. This report was written by NIA's President Gerard Adams, who believes food inflation will take over in 2011 as America's greatest crisis. According to Mr. Adams, making mortgage payments will soon be the last thing on the minds of all Americans. We currently have a currency crisis that could soon turn into hyperinflation and a complete societal collapse.

 

"For every economic problem the U.S. government tries to solve, it always creates two or three much larger catastrophes in the process," said Adams. "Just like we predicted this past December, the U.S. dollar index bounced in early 2010 and has been in free-fall ever since. Bernanke's QE2 will likely accelerate this free-fall into a complete U.S. dollar rout," warned Adams.

 

NIA projects that at the average U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71 for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a 64 fl oz container of Minute Maid Orange Juice, and $15.50 for a Hershey's Milk Chocolate 1.55 oz candy bar. NIA also projects that by the end of this decade, a plain white men's cotton t-shirt at Wal-Mart will cost $55.57.

 

NIA's special U.S. food price projection report is now available to download for free at: http://inflation.us/foodpriceprojections.pdf

 

The report highlights how despite cotton rising by 54%, corn rising by 29%, soybeans rising by 22%, orange juice rising by 17%, and sugar rising by 51% during the months of September and October alone, these huge commodity price increases have yet to make their way into America's grocery stores because corporations have been reluctant to pass these price increases along to the consumer. In today's dismal economy, no retailer wants to be the first to dramatically raise food prices. However, NIA expects all retailers to soon substantially raise food prices at the same time, which will ensure that this Holiday shopping season will be the worst in recorded American history.

Silver Short Position Could Cost JP Morgan Billions in Losses

The following is an article from The National Inflation Association. To register for reports and other similar information that may affect you, go here. http://inflation.us/

Silver Short Position Could Cost JP Morgan Billions in Losses

 

It was just announced late Wednesday that two lawsuits have been filed in Manhattan federal court against JP Morgan and HSBC Holdings Inc. accusing them of manipulating the price of silver by "amassing enormous short positions". The suits were filed by Brian Beatty and Peter Laskaris, who each claim they lost money trading COMEX silver futures and options contracts as a result of JP Morgan's alleged manipulation.

 

In NIA's latest documentary 'Meltup' that was released on May 13th, 2010, and has now been viewed by over 855,000 people, NIA's President Gerard Adams exposed the manipulation of silver that has been taking place by JP Morgan. Mr. Adams discussed in detail in 'Meltup' how on March 14th, 2008, the very day Bear Stearns failed was the same day silver reached a multidecade high of about $21 per ounce. According to Mr. Adams, Bear Stearns was on the verge of being forced to cover their naked short position in silver, which could have quickly sent silver as high as $50 per ounce. This would have caused a loss of confidence in the U.S. dollar and a possible currency crisis. Instead of allowing this to happen, the Federal Reserve orchestrated a bailout of Bear Stearns and JP Morgan acquired their assets with the backing of the Fed. Shortly after taking over Bear Stearn's silver short position, JP Morgan was able to manipulate the price of silver down to below $9 per ounce.

 

NIA exposed in 'Meltup' that JP Morgan was short 30,000 silver contracts representing 150 million ounces of silver. This is one of the largest concentrated short positions in the history of all commodities, representing 31% of all open COMEX silver contracts. NIA found it shocking for this type of a concentrated naked short position to exist in the very metal that the U.S. constitution defined as real money. What NIA found especially frightening is how almost everybody in the mainstream media has ignored and continues to ignore this issue. Not one article in any major financial publication has even questioned why JP Morgan is allowed to hold such a large short position in our nation's single most important commodity.

 

On February 5th of 2010, when the price of silver was manipulated by JP Morgan down to below $15 per ounce, NIA said, "this is a once in a lifetime entry point for those wishing to go long silver at a bargain basement price". On that day, NIA's President Mr. Adams purchased 1,300 January 2011 $20 call options in the silver ETF at $0.89 per contract and on February 8th, NIA announced his purchase and said to NIA members, "NIA is betting big that this past week's short-term decline in the paper price of silver was just a temporary wash out, before a huge surge in silver prices later in 2010."

 

On July 28th with the price of silver at $17.63 per ounce, NIA released an article entitled "Gold and Silver Capitulation is Near" in which it said, "The sentiment on gold and silver has abruptly changed to the negative like nothing we have ever seen before and to us this means the big move to the upside is right around the corner." Since NIA's July 28th article predicting silver's big move to the upside was right around the corner, silver has rallied as much as 41% to a high on October 14th of $24.92 per ounce. On October 14th, the very day silver reached its high, Mr. Adams sold his silver ETF call options at $4.25 per contract making a gross profit of $436,800.

 

Silver, at its current price of $23.69 per ounce, is trading for only 1.78% the price of gold. We have a gold/silver ratio of 56, despite the fact that only ten times more silver has been produced in world history than gold. On December 11th, 2009, NIA declared silver the best investment for the next decade. On December 21st, 2009, in NIA's top 10 predictions for 2010, NIA predicted a sharp decline in the gold/silver ratio, which was 64 at the time. NIA was right, the gold/silver ratio has declined by 12.5% so far this year.

 

Silver possesses all of the same monetary qualities as gold, but silver is also used for countless industrial applications. 95% of all silver produced in world history has been consumed. World silver inventories have declined from 10 billion ounces in 1940 down to only 1 billion ounces today. Meanwhile, almost all of the gold mined in world history remains in the form of bullion bars stored in vaults. The world has approximately 2 billion ounces of gold inventories today. The total value of the world's gold inventories is currently $2.656 trillion compared to the total value of the world's silver inventories of $23.68 billion. This means the value of the world's gold inventories today is worth an unbelievable 112 times more than its silver inventories.

 

China has been rapidly diversifying their foreign exchange reserves into gold in an attempt to position the yuan to be the world's next reserve currency. Despite China increasing its gold reserves by 76% in recent years to 1,054 metric tons, the value of China's gold reserves still only account for about 1.5% of its total foreign exchange reserves compared to the average nation of 10%. China needs to rapidly increase its gold reserves this decade, which NIA believes will send gold not just to new nominal highs, but also to new all time highs adjusted to the CPI and the real rate of inflation.

 

No central banks in the world currently own silver. Imagine if just one central bank of any major country announces a large silver purchase. The world is only producing 709.6 million ounces of silver per year worth a measly $16.8 billion. Total annual silver demand for industrial applications alone is 352.2 million ounces. Once you include photography, jewelry, silverware, and coins & medals, total annual silver demand is already 729.8 million ounces, which is greater than silver production. If a central bank decides to purchase silver, the market is so tight that silver prices could literally rise to $50 per ounce overnight. NIA estimates that $50 per ounce silver would mean approximately $4 billion in losses to JP Morgan.

 

NIA applauds CFTC Commissioner Bart Chilton for taking the time to publicly comment on Tuesday about the precious metals markets and in particular the silver markets and acknowledging that the public deserves some answers to their concerns that silver markets are being, and have been, manipulated. Mr. Chilton said in a statement, "I believe that there have been repeated attempts to influence prices in the silver markets. There have been fraudulent efforts to persuade and deviously control that price. Based on what I have been told by members of the public, and reviewed in publicly available documents, I believe violations to the Commodity Exchange Act (CEA) have taken place in silver markets and that any such violation of the law in this regard should be prosecuted."

 

On September 9th, after JP Morgan announced that they would be winding down their proprietary trading operations and laying off their 20 proprietary commodities traders, who NIA believes could be responsible for the current manipulation in silver, NIA released an article entitled, "Is JP Morgan's Silver Manipulation Over?". NIA said in this article that it was "hopeful but skeptical that the manipulation is coming to an end" and "We remain cautiously optimistic at this time." Since this article, it appears as though silver has been trading based on free market forces for the first time in many years. There have been no noticeable attempts to drive down the price of silver through manipulation.

 

NIA's most recent silver stock suggestion from September 20th gained 111% in just 17 trading days and its previous silver stock suggestion from July 28th gained 111% in 47 trading days. We are very happy that investors who have for years been suffering due to JP Morgan's manipulation, are now finally seeing the value of their silver investments rise to where the free market wants them to be. The efforts of all NIA members to expose JP Morgan's illegal activities are now paying off big for all Americans.

 

NIA members should be proud of themselves, but the fight is not over yet. Although most NIA members have been prospering and are now positioned to not only survive but thrive during U.S. hyperinflation, we still need to work together to prevent a complete societal collapse so that our country is still worth living in after the U.S. dollar becomes worthless. We hope to release our new documentary 'End of Liberty' this Sunday on Halloween. After you watch 'End of Liberty', it is important for you to not only spread the word to your family members and friends, but we strongly urge you to contact all relevant web sites, blogs, newspapers, magazines, and television and radio shows, telling them about the movie. 'End of Liberty' is quite simply the most important firm ever produced in world history.

A Planned Market

The following is from a trader , Larry Levin. It speaks great truths as to what is happening in our economy. What is happening is not a good thing and will be what further causes the economy to decline. That is my opinion and not that of those in political power. 

A Planned Market

Most people have head of the phrase "A planned Economy," which according to Wikipedia is "Planned economy (or command economy) is an economic system in which the state directs the economy.[1] It is an economic system in which the central government controls industry such that it makes all decisions regarding the production and distribution of goods and services.[2]Its most extensive form is referred to as a command economy,[3] centrally planned economy, or command and control economy.[4]" The USA doesn't have a planned economy yet, but it sure has a "planned market." In addition to "planned market" I would accept names of; Corporatism, economic-Socialism, or perhaps the best: Kleptocracy. After all, the middle class is being looted by the White House, Congress, and the Federal Reserve, for the benefit of Fraud Street banksters and its bondholders. One thing is now as clear as glass to all of those who are not in a cave somewhere - the "free market" is dead in the United States of Amerika. As you know the U.S. Politburo is now in control of, or wanting control of the following... A very large section of manufacturing: Automakers. Although GM will soon have an IPO don't let that fool you - the government will still own the majority of the car maker. The government would not be made whole unless the new stock price reached $113.78. Since that will not happen, Amerika will be in a "planned economy/market" for a long time, at least a decade. Housing: Freddie Mac, Fannie Mae, and FHA. These three government agencies underwrote 90% of all mortgages in Q1 of 2009. That jumped to 96.5% of all mortgages in Q1 of 2010. Yes sir, that's a "planned market"...Amerikan housing market...alright. The government wants to take over healthcare too. Oh sure, the Politburo hasn't done it yet but a single payer system is coming to a "planned health care market." Inside the healthcare legislation Big Brother wants you to report ALL business transactions over $600. A "planned economy" indeed! Social Security Medicare The Federal Reserve has always "planned" the economy by price fixing interest rates, with the approval of the Politburo in DC, but it is now out of control. When the market fell hard in 2008, the Federal Reserve came in to save its buddies: bankers. The Federal Reserve cut its interest rates to nearly zero. YOU may not borrow at 0.25%, but the biggest banks can. With this free money from the Fed, banks bought Treasuries. Buying these Treasuries was a GUARANTEED profitable investment because the Fed cut its lending rates to near zero for the banksters. But there was a small "truth" problem in the status of the bankster's mortgage portfolio since they had to tell the truth about the falling home prices, thus the falling value of their mortgage portfolios. To fix this the Politburo forced the FASB to change its accounting standards for the banksters, which allowed them to legally lie about the value of the mortgages on the books. Instead of marking down the value of the homes in the portfolios, the banks just made up (and continue to make up) pretend numbers for what the home may be worth in 20-years. Magically, these guesstimates are the full value of the loans. When this happened, the low of the stock market was put it place. "Controlled market" anyone? If you went into one of these very same banks to get a personal or business loan and used your home as collateral...then told the loan officer it should be valued at the PEAK of 2007's price, WHICH IS EXACTLY WHERE THEY HAVE IT VALUED ON THEIR OWN BOOKS; what do you think would happen? Yes, you would get thrown out on your fanny. It is good for them, but nobody else! The FASB rule helped the banks a lot and certainly rigged the stock market, but the Fed and the banksters still knew the real score: the RMBS, CDS, etc loans on the books were rotting like dead fish. The Federal Reserve then announced "Quantitative Easing" (QE), which should have been called TARP-all-over-again as it was aimed at shoveling more money into the pockets of the banksters. The Fed bought over $1 TRILLION of these fetid, decaying mortgage "assets" at par or nearly par, when many weren't even worth 20-cents on the dollar! What did the banksters do with this newly printed money? The only thing that made sense: buy more Treasury Bills, Bonds, and now stocks and commodities. It wasn't just free money, but a loss-made-good, type of free money. The banksters knew now that no matter how bad or how often they %$#*ed up, Backstop-Ben Bernanke would be there with more free money. Again, GUARANTEED profits for the banksters with YOUR money. Now the Fed is regularly engaging in its POMO purchases, which are its Permanent Open Market Operations. The Fed is once AGAIN flooding the very banksters who brought down the economy with free money --- so they can make even more money (ah hem, at your expense of course). You see, now that the Fraud Street banksters have already bought hundreds of billions worth of Treasuries with the aforementioned free money at guaranteed profit, they're a little tight right now. But the Politburo has more borrowing & spending to do therefore the Treasury needs to sell more IOUs. How can the "managed market" Kleptocracy keep this shell game going? By the POMO purchases of course. The FRBNY (Federal Reserve Bank of N.Y.) buys billions of the Treasuries back from the banksters, thus flooding them with more capital, which can then be used to buy AMZN, AAPL, SPY, ES futures, commodities, and of course -- more Treasuries. By the way, since the banksters bought the bonds that the FRBNY is buying right now...many months ago...the Fed is once again GUARANTEEING these scumbag banksters yet another risk-free profit. Treasuries have been on a huge rally so the banksters bought low (with your money), are getting out at the high with insanely large profits (no more duration risk either!), at your expense. Once purchased, the Fed disposes the debt. A "planned market" indeed! This is what POMO purchases are all about - getting more money to banksters and monetizing the debt. A financial circle jerk of epic proportions. Oohhhhh but it is not over. QE2 is coming. Everyone on Fraud Street believes it, and sadly, when those banksters say "JUMP" - the Fed responds with "How high?" Therefore, QE2 will be like QE1 + POMO + steriods + your money = BONUSES on Fraud Street, as well as huge campaign "donations" for the Politburo in Washington DC. The most recent POMO purchases were made by the FRBNY last Friday. Since the banksters do not know in advance which CUSIP number (bond identification) will be purchased, they cannot all buy stocks and commodities beforehand. Some of the Treasuries on the banksters books may not be purchased by the FRBNY. Because of this, the banksters have to wait until the very moment their lottery number is called before they can run the stock & commodity markets up again & again on pathetic volume. By the way, as soon as POMO ended last Friday, the rally in equities ended. A "planned market" indeed! The next time someone would like to discuss Amerika's "free market," I do not know if I will scornfully laugh at him, or weep for him.

Chrysler's Railroad

The following was sent to me by another trader that I greatly respect. Have a read, it may open your eyes to what is and has been going on.

Chrysler dealerships
which were forced to close...

Chrysler's Railroad

This could be a scandal of epic proportions and one that makes Nixon's Watergate or Clinton's Monica
Lewinsky affair pale by comparison. Why was there neither rhyme nor reason as to
which dealerships of the Chrysler Corporation were to be closed?

Roll the clock back to the weeks just before Chrysler declared bankruptcy. Chrysler, like GM, was in
dire financial straits and federal government "graciously" offered to
"buy the company" and keep them out of bankruptcy and "save jobs."
Chrysler was, in the words of Obama and his administration, "Too big to fail," same
story with GM.

The feds organized their "Automotive Task Force" to fix Chrysler and GM. Obama, in an act that
is 100% unconstitutional, appointed a guy named Steve Rattner to be the White House's
official Car Czar - literally, that's what his title is. Rattner is the liaison
among Obama, Chrysler, and GM. Initially, the national
media reported that Chrysler 'had made this list of dealerships.' Not true! The
Washington Examiner, Newsmax, Fox New and a host of other news agencies discovered
that the list of dealerships was put together by the "Automotive Task Force"
headed by no one other than Mr. Steve Rattner.

Now the plot thickens.  Remember earlier we said that there was neither rhyme nor reason why

certain dealerships were closed?  Actually there's a very >interesting pattern as to who was

closed down. Again, on May 27, 2009, The Washington >Examiner and Newsmax exposed

the connection. Amazingly, of the 789 dealerships
closed by the federal government, 788 had donated money, exclusively to Republican
political causes, while contributing nothing to Democratic political causes. The
only "Democratic" dealership on the list was found to have donated $7,700 to
Hillary's campaign, and a bit over $2,000 to John Edwards. This same dealership,
reportedly, also gave $200.00 to Obama's campaign. Does that seem a little odd
to you? Steve Rattner is the guy who put the list together.

Well, he happens to be married to a Maureen White.  Maureen happens to be
the former national finance chairman of the Democratic National Committee. As such,
she has access to campaign donation records from everyone in the nation- Republican
or Democrat. But of course, this is just a wacky "coincidence," we're certain.

Then comes another really wacky "coincidence." On that list of dealerships being closed down,

a weird thing happened in Arkansas , North Louisiana and Southern Missouri.
It seems that Bill Clinton's former White House Chief of Staff, Mack McClarty,
owns a chain of dealerships in that region, partnered with a fellow by the name
of Robert Johnson. Johnson happens to be founder of Black Entertainment Television
and was a huge Obama supporter and financier. These guys own a half
dozen Chrysler stores under the company title of RLJ-McClarty-Landers. Interestingly,
none of their dealerships were ordered closed - not one!

While all of their competing Chrysler/Dodge and Jeep dealership were! Eight dealerships

located near the dealerships owned by McClarty and Johnson were ordered shut down.

Thus by pure luck, these two major Obama supporters now have virtual monopoly on

Chrysler sales in their zone. Isn't that amazing?

Go look in The Washington Examiner, the story's there, and it's in a dozen or so other

web-based news organizations; this isn't being made up. Now if you thought Chrysler
was owned by Fiat, you are mistaken. Under the federal court ruling, 65% of Chrysler
is now owned by the federal government and the United Auto Workers union! Fiat
owns 20%. The other 15% is still privately owned and presumably will be traded
on the stock market. Obama smiles and says he doesn't want to run the auto industry.

As horrifying as this is to comprehend, and being as how this used to be the United States of

America, it would appear that the president has the power to destroy private businesses
and eliminate upwards of 100,000 jobs just because they don't agree with his political
agenda.

This is Nazi Germany stuff, and it's happening right here, right now, in our back yard.

There are voices in Washington demanding an explanation, but the "Automotive Task Force"
has released no information to the public or to any of the senators demanding answers
for what has been done. Keep your ear to the ground for more on this story. If you've

ever wanted to make a difference about anything in your life, get on the phone to your

national senator or representative in the House and demand an investigation into this.

Benjamin Franklin had it right when he said, "All that's necessary for evil to triumph is for good
men to do nothing." Car Czar No More An amazing thing happened
as this story was going to press. Obama's Car Czar, Steve Rattner, resigned on
July 13 and was promptly replaced by former steel workers union boss Ron Bloom.

According to CBS News, Rattner left "to return to private life and spend time with his family."

Treasury Secretary Tim Geithner said, "I hope that he takes another opportunity to bring his unique
skills to government service in the future." By the way, Rattner is under investigation for a

multi-million dollar pay-to-play investment bank scandal in New York .... Uh-oh! But, we're certain

that had nothing to do with his resignation. And, according to several news sources out there, there

are rumors he's being investigated for what could be pay-to-play scandal involving the closing of

Chrysler and GM dealerships. Really? Again, that couldn't have anything to with his resignation
-- that's ridiculous! Like CBS said, this guy just wants to "spend more quality
time with his family."

Obama has 32 personally appointed "czars" who answer to no one but him, all of whom are acting
without any Constitutional authority. But hey, we're sure they all have "unique
skills,"......as Tim Geithner likes to say! SOOOOO. HOW'S THE HOPE/CHANGE
WORKING FOR YOU?..

Check it out at the
following websites.....Copy and Paste:

http://gatewaypundit.blogspot..com/2009/05/hope-change-car-czar-behind-chrysler.html

http://www.washingtonexaminer.com/politics/Obamas-auto-policy-All-in-the-Democratic-family-44414452.html -

This goes beyond corruption
in high places - to gross criminal actions on the part of our government! I hope
you will spread this far and wide, and hopefully the taxpaying public will demand
some of that transparency we were promised ... followed by criminal prosecution
of the perpetrators!

What a crooked government we have!!!!! Vote 'em all out ...November 2010

A TALE OF TWO HOUSES

This was sent to me and does a lot to show how one that talks about the environment and how he acts versus a person who really believes in the environment and what he does to protect it. 

A Tale of Two Houses
House #1
A 20 room mansion (not including 8 bathrooms) heated by natural gas. Add on a pool (and a pool house) and a separate guest house, all heated by gas. In one month this residence consumes more energy than the average American household does in a year. The average bill for electricity and natural gas runs over $2400 per month. In natural gas alone, this property consumes more than 20 times the national average for an American home. This house is not situated in a Northern or Midwestern 'snow belt' area. It's in the South.

House #2

Designed by an architecture professor at a leading national university. This house incorporates every 'green' feature current home construction can provide. The house is 4,000 square feet (4 bedrooms) and is nestled on a high prairie in the American southwest. A central closet in the house holds geothermal heat-pumps drawing ground water through pipes sunk 300 feet into the ground.

The water (usually 67 degrees F) heats the house in the winter and cools it in the summer. The system uses no fossil fuels such as oil or natural gas and it consumes one-quarter electricity required for a conventional heating/cooling system. Rainwater from the roof is collected and funneled into a 25,000 gallon underground cistern. Wastewater from showers, sinks and toilets goes into underground purifying tanks and then into the cistern. The collected water then irrigates the land surrounding the house. Surrounding flowers and shrubs native to the area enable the property to blend into the surrounding rural landscape.


* * * * *

HOUSE #1 is outside of Nashville, Tennessee; it is the home of the 'Environmentalist'  Al Gore.

HOUSE #2 is on a ranch near Crawford, Texas; it is the residence of the ex-President of the United States, George W. Bush.

THIS is the definition of an "inconvenient truth"!!

I sure hope this gets passed to everyone!
And, yes ... I DID check Snopes prior to forwarding it.


You can verify this it at:   http://www.snopes.com/politics/bush/house.asp

Saving Our Financial System

The following is from a trader that often has many excellent reviews. His name is Larry Levin and is a floor trader at the CBOE and an often contributor on several money shows.

"I read an interesting piece on the financial crisis and what it could lead to on ZeroHedge. The whole article can be found here

Sometimes, when chasing the bouncing ball of fraud and corruption on a daily basis, it is easy to lose sight of the forest for the millions of trees (all of which have a 150% LTV fourth-lien on them, underwritten by Goldman Sachs, which is short the shrubbery tranche). Luckily, Charles Hugh Smith, of oftwominds.com has taken the time to put it all into such simple and compelling terms, even corrupt North Carolina congressmen will not have the chance to plead stupidity after reading this.

Of course, to those familiar with the work of Austrian economists, none of this will come as a surprise.

1. Enable trillions of dollars in mortgages guaranteed to default by packaging unlimited quantities of them into mortgage-backed securities (MBS), creating umlimited demand for fraudulently originated loans.

2. Sell these MBS as "safe" to credulous investors, institutions, town councils in Norway, etc., i.e. "the bezzle" on a global scale.

3. Make huge "side bets" against these doomed mortgages so when they default then the short-side bets generate billions in profits.

4. Leverage each $1 of actual capital into $100 of high-risk bets.

5. Hide the utterly fraudulent bets offshore and/or off-balance sheet (not that the regulators you had muzzled would have noticed anyway).

6. When the longside bets go bad, transfer hundreds of billions of dollars in Federal guarantees, bailouts and backstops into the private hands which made the risky bets, either via direct payments or via proxies like AIG. Enable these private Power Elites to borrow hundreds of billions more from the Treasury/Fed at zero interest.

7. Deposit these funds at the Federal Reserve, where they earn 3-4%. Reap billions in guaranteed income by borrowing Federal money for free and getting paid interest by the Fed.

8. As profits pile up, start buying boatloads of short-term U.S. Treasuries. Now the taxpayers who absorbed the trillions in private losses and who transferred trillions in subsidies, backstops, guarantees, bailouts and loans to private banks and corporations, are now paying interest on the Treasuries their own money purchased for the banks/corporations.

9. Slowly acquire trillions of dollars in Treasuries--not difficult to do as the Federal government is borrowing $1.5 trillion a year.

10. Stop buying Treasuries and dump a boatload onto the market, forcing interest rates to rise as supply of new T-Bills exceeds demand (at least temporarily). Repeat as necessary to double and then triple interest rates paid on Treasuries.

11. Buy hundreds of billions in long-term Treasuries at high rates of interest. As interest rates rise, interest payments dwarf all other Federal spending, forcing extreme cuts in all other government spending.

12. Enjoy the hundreds of billions of dollars in interest payments being paid by taxpayers on Treasuries that were purchased with their money but which are safely in private hands.

Charles' conclusion does not need further commentary as it is absolutely spot on:

Since the Federal government could potentially inflate away these trillions in Treasuries, buy enough elected officials to force austerity so inflation remains tame. In essence, these private banks and corporations now own the revenue stream of the Federal government and its taxpayers. Neat con, and the marks will never understand how "saving our financial system" led to their servitude to the very interests they bailed out.

The circle is now complete: in "saving our financial system," the public borrowed trillions and transferred the money to private Power Elites, who then buy the public debt with the money swindled out of the taxpayer. Then the taxpayers transfer more wealth every year to the Power Elites/Plutocracy in the form of interest on the Treasury debt. The Power Elites will own the debt that was taken on to bail them out of bad private bets: this is the culmination of privatized gains, socialized risk.

In effect, it's a Third World/colonial scam on a gigantic scale: plunder the public treasury, then buy the debt which was borrowed and transferred to your pockets. You are buying the country with money you borrowed from its taxpayers. No despot could do better."

The following is the view from another trader that all of the central banks are trying to prop up economies that are bankrupt in order to avoid the inevitable. The inevitable for many countries will be failure and financial collapse as they can no longer sustain the debt that they have amassed. The same or very similar debt is being created here in the US and if this isn't addressed and changed,  many of us will begin to see life as a 2nd or 3rd world country. France in this article shows how much it stands to lose if the PIIGS fail. If they fail so does France. Yet Another Bailout Rally

Yes sir, today was the 6th, or 7th, or 10th...or 20th mega-rally based on a Greek bailout. If we're lucky, the powers that be (central bankers) will keep the Greek economy on life support - just barely keeping it from being a corpse. This way, whenever Benron Bernanke or Tax-Cheatin-Timmy want to send a little sugar to their Fraud Street cronies they can pull another miracle: a never ending just-in-time bailout. Once again, failure was not an option for a central banker - moral hazard be damned. Will this bailout hold? It probably will, but I won't completely believe it until the Germans approve the cash layout, and Greece receives it from the ECB. Hopefully Greece will get those Euros quickly; after all, there are 50-year old bakers and hair stylists that want to retire now or they will riot in the streets. It's no surprise that France really wants to get this behind them because the French are on the hook for a lot of money if the PIIGS fail. According to the following numbers are accurate. If Portugal defaults, France loses $45,000,000,000.00 If Ireland defaults, France loses $60,000,000,000.00 If Greece defaults, France loses $75,000,000,000.00 If Spain defaults, France loses $220,000,000,000.00 If Italy defaults, France loses $511,000,000,000.00 (nearly 20% of the French GDP!) The PIIGS owe France nearly $1 trillion dollars. I suppose things will really get interesting if (when) Spain and/or Italy get into worse shape. Trade well and follow the trend, not the so-called “experts.”

Siler manipulation

Silver Short Squeeze Could Be Imminent

 

On December 11th, 2009 NIA declared silver the best investment for the next decade. In our December 11th article, we said that it wasn't a coincidence that the very day Bear Stearns failed was the same day silver reached its multi-decade high of over $21 per ounce. We went on to say, "The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position."

 

JP Morgan took over the concentrated short position in silver from Bear Stearns and gained complete control over the paper price of silver. Within weeks, JP Morgan was able to manipulate the price of silver down to below $9 per ounce. NIA believes they were able to drive the price of silver down through "naked short selling", selling paper silver that is unbacked by physical silver.

 

On February 5th, we witnessed another sharp decline in silver prices, which NIA described on February 7th as being "just a temporary wash out, before a huge surge in silver prices later in 2010". Since then, silver prices have rebounded by 18%. The temporary wash out that occurred on February 5th was predicted by independent metals trader Andrew Maguire, who came out this week exposing the fraud that is taking place in the paper silver market.

 

On February 3rd, Andrew Maguire wrote Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, giving him the "heads up" for a "manipulative event" signaled for February 5th. He warned the CFTC that JP Morgan was about to manipulate down the price of silver after the release of non-farm payroll data on February 5th. Andrew said that the takedown would happen regardless of if employment was better or worse than expected and the price of silver would be flushed to below $15 per ounce. During the next couple of days, silver was crushed from $16.17 per ounce down to a low of $14.62 per ounce.

 

Despite all of the evidence given by Andrew Maguire to the CFTC of gold and silver manipulation, Andrew wasn't allowed to speak at last week's CFTC hearing on limiting gold and silver positions held by banks like JP Morgan. Bill Murphy of the Gold Anti-Trust Action Committee (GATA) was allowed to speak (within a five-minute time constraint) and present some of Andrew Maguire's evidence, but right when his presentation began there was a technical failure of the live television broadcast, which was mysteriously fixed as soon as he was done speaking. Bill Murphy was scheduled for several mainstream media television interviews after the CFTC hearings, but they were all abruptly cancelled at once.

 

A couple of days after the CFTC meeting, Andrew Maguire and his wife were involved in a bizarre hit-and-run car accident in London where a second car coming out of a side street struck their vehicle, which resulted in a police chase using helicopters and patrol cars before the suspect was nabbed. Andrew and his wife were released from the hospital with minor injuries. (NIA does not believe in conspiracy theories but when you consider that this is a potential multi-trillion dollar fraud that could bring down the world's financial system, it really makes you think.)

 

The silver market provides a window into what is happening in the gold market. Because the silver market is very small and its short position is so concentrated, its price is easier to manipulate than gold, but the same manipulation is taking place in gold on a much larger but less noticeable scale. In our opinion, the CFTC is under pressure not to do anything about the manipulation because the lower gold and silver prices are, the stronger the U.S. dollar appears to be. If we saw an explosion to the upside in gold and silver prices, it would result in a complete loss of confidence in the U.S. dollar.

 

NIA believes the precious metals markets are currently being artificially suppressed by paper gold and silver that doesn't physically exist. At last week's CFTC hearings, Jeffrey Christian of the CPM Group admitted that banks have leveraged their physical bullion by 100 to 1. This means for every 100 ounces of paper gold/silver that trade, there could be as little as 1 ounce of physical gold/silver in the vaults backing it. However, Mr. Christian sees no problem with this because he says "it has been persistently that way for decades" and there are "any number of mechanisms allowing for cash settlements".

 

What Mr. Christian fails to realize is, most investors around the world holding paper gold/silver believe they own physical gold/silver. There will come a time when these investors don't want cash settlements in U.S. dollars, but they will want the physical precious metals themselves. When investors around the globe eventually call for physical delivery of their precious metals, NIA believes it will result in the biggest short squeeze in the history of all commodities.

 

The physical silver market is now more tight than ever before. In the first quarter of 2010, the U.S. mint sold 9,023,500 American Silver Eagles, the most since the coin debuted in 1986 and up from 8,299,000 sold in the fourth quarter of 2009. All U.S. silver mines combined are currently producing only 40 million ounces of silver annually. This means the U.S. needs to use almost all of its silver production just to keep up with the demand for American Silver Eagle coins.

 

Silver closed this week at a 10-week high of $17.89 per ounce and a major short squeeze to the upside could be imminent. With the spotlight now on JP Morgan, NIA believes they will be less likely to naked short silver at these levels and manipulate the price down like in February. With the mainstream media blackout, it is important for NIA members to work harder than ever to spread the word and help expose what could be the largest fraud in the history of the world.

Health Care Bill

For those of you wanting to see a little of what's in the health care bill and what's to come, have a read of this and you decide what the "Real and Ultimate Goal" of the reform is.

Have you READ Article 1 section 7 of OUR Constitution, "All bills for raising revenue originate in the house of representatives"...and this is a revenue bill. It began in the Senate and it hires 16,000 new IRS agents to harass our citizens.

Page 22 of the HC Bill: Mandates that the Govt will audit books of all employers that self-insure!!
Page 30 Sec 123 of HC bill: THERE WILL BE A GOVT COMMITTEE that decides what treatments/benefits you get.
Page 29 lines 4-16 in the HC bill: YOUR HEALTH CARE IS RATIONED!!!
Page 42 of HC Bill: The Health Choices Commissioner will choose your HC benefits for you. You have no choice!
Page 50 Section 152 in HC bill: HC will be provided to ALL non-US citizens, illegal or otherwise.
Page 58 HC Bill: Govt will have real-time access to individuals' finances & a 'National ID Health card' will be issued! (Papers please!)

Page 59 HC Bill lines 21-24: Govt will have direct access to your bank accounts for elective funds transfer. (Time for more cash and carry)

Page 65 Sec 164: Is a payoff subsidized plan for retirees and their families in unions & community organizations: (ACORN).
Page 84 Sec 203 HC bill: Govt mandates ALL benefit packages for private HC plans in the 'Exchange.'

Page 85 Line 7 HC Bill: Specifications of Benefit Levels for Plans -- The Govt will ration your health care!

Page 91 Lines 4-7 HC Bill: Govt mandates linguistic appropriate services. (Translation: illegal aliens.)

Page 95 HC Bill Lines 8-18: The Govt will use groups (i.e. ACORN & Americorps to sign up individuals for Govt HC plan.
Page 85 Line 7 HC Bill: Specifications of Benefit Levels for Plans. (AARP members - your health care WILL be rationed!)
Page 102 Lines 12-18 HC Bill: Medicaid eligible individuals will be automatically enrolled in Medicaid. (No choice.)
Page 12 4 lines 24-25 HC: No company can sue GOVT on price fixing. No "judicial review" against Govt monopoly.
Page 127 Lines 1-16 HC Bill: Doctors/ American Medical Association - The Govt will tell YOU what salary you can make.
Page 145 Line 15-17: An Employer MUST auto-enroll employees into public option plan. (NO choice!)
Page 126 Lines 22-25: Employers MUST pay for HC for part-time employees ANDtheir families. (Employees shouldn't get excited about this as employers will be forced to reduce its work force, benefits, and wages/salaries to cover such a huge expense.)
Page 149 Lines 16-24: ANY Employer with payroll 401k & above who does not provide public option will pay 8% tax on all payroll! (See the last comment in parenthesis.)
Page 150 Lines 9-13: A business with payroll between $251K & $401K who doesn't provide public option will pay 2-6% tax on all payroll.

Page 167 Lines 18-23: ANY individual who doesn't have acceptable HC according to Govt will be taxed 2.5% of income.
Page 170 Lines 1-3 HC Bill: Any NONRESIDENT Alien is exempt from individual taxes. (Americans will pay.) (Like always)
Page 195 HC Bill: Officers & employees of the GOVT HC Admin.. will have access to ALL Americans' finances and personal records. (I guess so they can 'deduct' their fees)

Page 203 Line 14-15 HC: "The tax imposed under this section shall not be treated as tax." (Yes, it really says that!) ( a 'fee' instead)
Page 239 Line 14-24 HC Bill: Govt will reduce physician services for Medicaid Seniors. (Low-income and the poor are affected.)
Page 241 Line 6-8 HC Bill: Doctors: It doesn't matter what specialty you have trained yourself in -- you will all be paid the same! (Just TRY to tell me that's not Socialism!)
Page 253 Line 10-18: The Govt sets the value of a doctor's time, profession, judgment, etc. (Literally-- the value of humans.)
Page 265 Sec 1131: The Govt mandates and controls productivity for "private" HC industries.

Page 268 Sec 1141: The federal Govt regulates the rental and purchase of power driven wheelchairs.

Page 272 SEC. 1145: TREATMENT OF CERTAIN CANCER HOSPITALS - Cancer patients - welcome to rationing!

Page 280 Sec 1151: The Govt will penalize hospitals for whatever the Govt deems preventable (i.e...re-admissions).
Page 298 Lines 9-11: Doctors: If you treat a patient during initial admission that results in a re-admission -- the Govt will penalize you.

Page 317 L 13-20: PROHIBITION on ownership/investment. (The Govt tells doctors what and how much they can own!)

Page 317-318 lines 21-25, 1-3: PROHIBITION on expansion. (The Govt is mandating that hospitals cannot expand.)
Page 321 2-13: Hospitals have the opportunity to apply for exception BUT community input is required. (Can you say ACORN?)

Page 335 L 16-25 Pg 336-339: The Govt mandates establishment of=2 outcome-based measures. (HC the way they want -- rationing.)
Page 341 Lines 3-9: The Govt has authority to disqualify Medicare Advance Plans, HMOs, etc. (Forcing people into the Govt plan)

Page 354 Sec 1177: The Govt will RESTRICT enrollment of 'special needs people!' Unbelievable!

Page 379 Sec 1191: The Govt creates more bureaucracy via a "Tele-Health Advisory Committee." (Can you say HC by phone?)

Page 425 Lines 4-12: The Govt mandates "Advance-Care Planning Consult." (Think senior citizens end-of-life patients.)

Page 425 Lines 17-19: The Govt will instruct and consult regarding living wills, durable powers of attorney, etc. (And it's mandatory!)
Page 425 Lines 22-25, 426 Lines 1-3: The Govt provides an "approved" list of end-of-life resources; guiding you in death. (Also called 'assisted suicide.')(Sounds like Soylent Green to me.)

Page 427 Lines 15-24: The Govt mandates a program for orders on "end-of-life." (The Govt has a say in how your life ends!)

Page 429 Lines 1-9: An "advanced-care planning consultant" will be used frequently as a patient's health deteriorates.

Page 429 Lines 10-12: An "advanced care consultation" may include an ORDER for end-of-life plans.. (AN ORDER TO DIE FROM THE GOVERNMENT?!?)
Page 429 Lines 13-25: The GOVT will specify which doctors can write an end-of-life order.. (I wouldn't want to stand before God after getting paid for THAT job!)
Page 430 Lines 11-15: The Govt will decide what level of treatment you will have at end-of-life! (Again -- no choice!)

Page 469: Community-Based Home Medical Services = Non-Profit Organizations. (Hello? ACORN Medical Services here!?!)

Page 489 Sec 1308: The Govt will cover marriage and family therapy. (Which means Govt will insert itself into your marriage even.)
Page 494-498: Govt will cover Mental Health Services including defining, creating, and rationing those services.

The following is not so much an analysis of the coming jobs report as it is about the manipulation of the jobs data and statistics. Every new set of economic data that comes out is subject to this review as an ever growing amount of the data seems false and or manipulated  in some form. This has become a sad fact but an ever growing part of what we as traders have come to expect.


QUOTE: From Larry Levin
Will it Matter?

Friday's monthly job-loss report is only a few days away and may be a real shocker.  Will it matter?  At the beginning of October I warned you all that a huge revision of the ridiculously flawed jobs data were coming in February 2010 - this Friday to be exact.



Back then I wrote... "Oh, but it's really worse than that; the BLS has been lying for years via its (business) Birth/Death job revisions.  These estimates are so positive they are laughable.  Since January the BLS has estimated that businesses have birthed hundreds of thousands of NEW jobs above and beyond those that have died/closed.

Uh-huh, sure.

This BS is just another way the government statisticians keep you in the dark about how things really are - at least for a while.  To be fair, the government eventually makes an annual adjustment to these figures, and according the Bloomberg it's gonna' be a whopper."

"The Labor Department today also published its preliminary estimate for the annual benchmark revisions to payrolls that will be issued in February. They showed the economy may have lost an additional 824,000 jobs in the 12 months ended March 2009. The data currently show a 4.8 million drop in employment during that time.

The projected decrease was three times larger than the historical average, the Labor Department said. Most of the drop occurred in the first quarter of this year, probably due to an increase in business closings, the government said."

When the revision detonates like a nuclear bomb Friday morning, again I wonder: will it matter?  My inclination is no.



To be clear, Friday's job-loss data will not include this massive revision; this revision covers the time of April 2008 to March 2009.  In other words, the government is coming clean that is has been straight-up lying to you like a common criminal giving up his larcenous ways.  Well, not really.  It gets worse.



The government has sugar-coated the data every single month for an entire year to make it look better than it really is.  Have you figured out yet that the "birth/death" statistical model of new jobs created over those lost is nothing more than a political game?  And since it is, you can bet your bottom dollar that it will never be changed.



But it gets better!  According to Bloomberg, another revision will come next year and will be an additional 990,000 job losses beyond whatever the government discloses.  Said another way, the "G" is willfully underreporting job losses by nearly 2 MILLION JOBS.



Will that even matter?  Naaaah.

A billion

How many zeros in a billion? This is too true to be funny.  The next time you hear a politician use the word 'billion' in a casual manner, think about whether you want the 'politicians' spending YOUR tax money. A billion is a difficult number to comprehend, but one advertising agency did a good job of putting that figure into some perspective in one of it's releases.  A. A billion seconds ago it was 1959.  B. A billion minutes ago Jesus was alive.  C. A billion hours ago our ancestors were living in the Stone Age.. D. A billion days ago no-one walked on the earth on two feet.  E. A billion dollars ago was only 8 hours and 20 minutes, at the rate our government is spending it.  While this thought is still fresh in our brain... let's take a look at New Orleans .. It's amazing what you can learn with some simple division. Louisiana Senator, Mary Landrieu (D) is presently asking Congress for  250 BILLION DOLLARS to rebuild New Orleans . Interesting number... what does it mean?  A. Well... if you are one of the 484,674 residents of New Orleans   (every man, woman, and child) you each get $516,528.  B. Or... if you have one of the 188,251 homes in New Orleans , your home gets $1,329,787. C. Or... if you are a family of four... your family gets $2,066,012.  Washington , D. C   HELLO!  Are all your calculators broken?? Building Permit Tax CDL License Tax Cigarette Tax Corporate Income Tax Dog License Tax Federal Income Tax (Fed) Federal Unemployment Tax (FU TA) Fishing License Tax Food License Tax Fuel Permit Tax Gasoline Tax Hunting License Tax Inheritance Tax Inventory Tax IRS Interest Charges (tax on top of tax) IRS Penalties (tax on top of tax) Liquor Tax Luxury Tax Marriage License Tax Medicare Tax Property Tax Real Estate Tax Service charge taxes Social Security Tax Road Usage Tax (Truckers) Sales Taxes Recreational Vehicle Tax School Tax State Income Tax State Unemployment Tax (SUTA) Telephone Federal Excise Tax Telephone Federal Universal Service Fee Tax Telephone Federal, State and Local Surcharge Tax Telephone Minimum Usage Surcharge Tax Telephone Recurring and Non-recurring Charges Tax Telephone State and Local Tax Telephone Usage Charge Tax Utility Tax Vehicle License Registration T ax Vehicle Sales Tax Watercraft Registration Tax Well Permit Tax Workers Compensation Tax (And to think, we left British Rule to avoid so many taxes)  STILL THINK THIS IS FUNNY? Not one of these taxes existed 100 years ago... and our nation was the most prosperous in the world. We had absolutely no national debt... We had the largest middle class in the world... and Mom stayed home to raise the kids.  What happened? Can you spell 'politicians!'  And I still have to press '1' for English. I hope this goes around the  U S A  at least 100 times!