by Jim Willie CB September 1, 2010

Jim Willie CB, editor of the “HAT TRICK LETTER”

History is being made. The American public has never been more nervous, perhaps fearful of some unknown dreadful and imminent event.

To wit, the global monetary system is crumbling. The enormous stimulus has failed to jumpstart the US economy. The 20 months of near 0% short-term official interest rate has failed to revive the moribund US housing market. The phony FASB accounting rules have failed to accomplish anything except a stay of execution for the big US banks, which are currently not lending as per their mandate.

In fact, the US banks are mainly dead entities demonstrating just enough life in order to receive US Government largesse and aid.

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by Jim Willie CB September 1, 2010

Jim Willie CB, editor of the “HAT TRICK LETTER”

Use the above link to subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisers, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, US Dollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.

The article of July 22nd on “Smoking Guns of US Treasury Monetization” hit more desks, raised more dust, and brought more attention than expected to the grand fraud in progress using US Govt debt securities. The glaring actions continue without any hint of legal prosecution but deep foreign resentment among creditors as publicity mounts. Nobody appreciates counterfeit of the instruments held in great volume as supposed savings. The only counterfeit of honorable origin is of Microsoft products, since mostly stolen and surely not the output of in-house innovation. The problem is more diverse than just a JP Morgan bond fraud issue. Sure, the venerable colossus and syndicate titan sold more than $2 trillion in US Treasury’s than were issued in the 1990 decade. Records used to be found in the penthouse business offices at Cantor Fitzgerald in South Manhattan. A database migration to New Jersey surely involves a great deal of deletions. The problem goes far beyond the giant bank, which gobbled numerous other banks in the course of its cancerous reign, to become an appendage of the US Govt today. See Chase Manhattan, Chemical Bank, Manufacturers Hanover, and Bank One. Any competent student of financial economics can see that such merger is part & parcel of the Fascist Business Model, with climax merged union with the state, and side effect of criminal impunity that permits deep fraud in numerous markets like silver. JP Morgan cannot be fixed by the process any more realistically than an angry man with a vengeful heart can carve out his own cardiac pump in order to enjoy a better day. Thus no solution exists. read more

by Howard S. Katz

8-23-10

Above we have the monthly basis price of gold (www.timingcharts.com) for the past 10 years.  For the past 10 years, there has been a pronounced advance through the autumn, usually into the winter and sometimes lasting until May.  Gold usually hits a bottom in July and then makes a secondary test in August.  Then in late August it starts to rally and after Labor Day begins a steady advance.  The up move in early August is unusual and is probably a hint that this year’s autumn rally will be stronger than usual.

If you buy gold at the end of August and are good enough to catch the “winter” top, you usually have a nice gain.  For example, if you bought at the end of August 2009 ($953) and held through the end of November ($1,182) – and I caught that top almost to the day –you had a gain of 24% on fully owned gold.  This, of course, is more if you used margin or were in the more volatile gold stocks.  2008 was a rough year for gold, and I missed the summer decline.  However, I toughed it out (which is sometime, not always, the thing to do), held on for the Nov., Dec., January rally and sold within days of the Feb. ’09 top.  A person who bought at the end of August ($842) and sold at the Feb. close ($942) made a gain of 13%.

A person who bought at the end of August ’07 ($681) and sold at the end of February ’08 ($975) made a whopping 43% gain on fully owned gold.  (Again, I caught that top within days.)  For ’06, if you bought at the end of August ($632) and sold at the end of March ’07 ($669), you made 6%.  For 2005, which was an exceptional year because of the silver ETF, if you bought at the end of August ($446 and sold at the end of April ’06 ($660), then you made 48% on your fully owned gold.  How sweet it was.

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This is a powerful message about the failure of the Great Society.

How in the world do we get out of this mess? This is a perfect example of how good intentions without good foresight can produce an absolute nightmare. Never underestimate the downside of human nature. The author of the following piece is a U.S. journalist who writes for seventeen national and two international magazines.

By Frosty Wooldridge

For 15 years, from the mid 1970s to 1990, I worked in Detroit, Michigan. I watched it descend into the abyss of crime, debauchery, gun play, drugs, school truancy, car-jacking, gangs and human depravity. I watched entire city blocks burned out. I watched graffiti explode on buildings, cars, trucks, buses and school yards. Trash was everywhere!
Detroiters walked through it, tossed more into it and just ignored it.

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