Just a CAPS "Newsletter" Blog Opinion and a Fact

Based on a true MAD MONEY FOOL INDICATOR: Jim urged his followers 1 week ago to Sell Gold. This mainstream paper pusher stated the XAU rally was overbought and overdone at 900 USD. The fact is gold has much further to go up in terms of price. The NEW Amero will phase out the exhausted US currency in less then 3 years. Another fact is known by some and that is "Be a Mad Money Contrarian, and remember that all the Gold Mine Projects around the globe are only worth approximately 200 Billion USD right now, i.e., relative to that relevant Googol Search Engine's market cap.

Now a classic You Tube Video:

Jim Cramer Vs. Ron Paul

Bail out, baby, one more time!

Now, all of a sudden, due to skyrocketing gold prices caused by all the failed solutions to all the above-mentioned problems, and due to virtually nonexistent and/or unavailable central bank gold hoards, we are about to witness the purported sale of the IMF gold - AGAIN! Yes, the perpetual "IMF Gold Sales" are on once again, and nothing could be more bullish for gold! Talk about treating only the symptoms and not the underlying diseases!!! The last time the IMF did this was its 1978-1980 auctions of about 800 metric tonnes of gold, which coincided with the very sharpest part of the run-up in the greatest bull market for gold up to that point in time. We are torn between telling Congress (as gold bugs) to go for it and telling the Congress (as citizens) that if the IMF can't operate at a profit or at least break even, they do not deserve to be bailed out by use of our or any other country's gold reserves. NO MORE BAILOUTS!!! [...] The G-7's preliminary approval of this sale of 400 metric tonnes of gold, if implemented by US Congressional approval as required by law, will be just as ineffective as all the other moves of desperation enumerated above and will completely fail in its intended purpose - gold suppression. And make no mistake about it, that is what this move is all about. Note how the agreement is supposed to be finalized in April. Gee, isn't that the month where the most active gold futures are now placed, some 300,000+ of them, to form the latest mountain of shorts for the cartel? Hmm, isn't the peak of the gold season usually in the April to May time frame?

Read Bob Chapman's IF

Gold: Menace II fiat society

Gold’s catalyst on Friday was an impending sense of doom in US financial markets. “Forget what the Federal Reserve says about being neutral on policy and the news that the labour market grew at double the rate expected by economists in October,” writes Michael Mackenzie in the Financial Times. “What matters is the unwinding of the great credit trade. This is ensnaring more and more financial institutions and threatens to make life very difficult for policymakers as the risk of a dollar crisis looms.”

It seems to us the dollar’s been in crisis for about five years now. But maybe it’s become more acute lately. New lows on the greenback could equal US$1,000 gold. And it could happen faster than you can say “jingle bells”.

Source: Dailly Reckoning

How low?

We’ve long assumed that a collapsing dollar would take the global economy with it, but perhaps we were being too pessimistic? After all, the Dollar Index has fallen by 45 percent since 2002, but life goes on. Moreover, when the greenback slipped to historical new lows on Friday, hardly anyone seems to have noticed.



And where does the White House stand? In an interview last week, veep Cheney hinted that the government would take a hands-off attitude toward the US currency. "We do believe in a strong dollar,” he said, “but we think that the key is that it be allowed to adjust based on market forces out there, and that's exactly what's happening." To speak of the dollar’s wholesale collapse as an “adjustment” is like saying that the fiery collapse of the Trade Towers was an adjustment to airborne traffic. Not only has the Dollar Index slipped to historical lows in recent days, it has entered an airless void on the charts (see above) without so much as a token word of support from anyone high up in the U.S. Government.

~Rick Ackerman, Rick's Picks

Gold Conspiracy: "to keep the dollar as the world’s reserve currency"

... till 2010!?

Contingency plan to keep the dollar as the world’s reserve currency

How? Why, it has been publicly suggested by some analysts that Barrick is a front. It is not a profit-seeking business. As such, it is used by the U.S. in order to cap the gold price. According to this view the strength of the dollar is that it has only one viable alternative as a global currency: gold. Therefore, if the U.S. wants to keep its enormously profitable privilege to issue the world’s global currency, it has only to cap the gold price. Conversely, if the U.S. failed to do it, sooner or later the rising gold price would lead to an ignominious collapse of the dollar, by far the worst currency debacle in world history. It would be the height of naivité to believe that the U.S. would idly stand by watching monetary events to unfold, doing nothing, regardless how daunting the task of stopping the gold train in its track may be.

I want to make it clear that this is not my view. I haven’t bought into the conspiracy theory. At least not yet, but I think soon enough I shall know for sure. Newmont’s coup may reveal that the Emperor has no clothes. We have to wait and see what Barrick’s response will be. It is still possible that Barrick will throw in the towel and follow the lead of Newmont. Just watch the spread between the two stocks.

Be that as it may, the question arises naturally what the best procedure to cap the gold price may be from the point of view of the U.S. Obviously it would be self-defeating for the U.S. overtly to put the remnant of its gold reserves to risk in an effort to pacify surging demand. The ploy of the U.S. twisting the arms of other countries to sell their gold reserves, while retaining its, has been exploited for whatever it is worth. As the U.S. was preaching water while drinking wine, it was not very persuasive in the first place. A more intelligent and more promising strategy is to find a gold mining firm that would covertly put its unmined gold reserves to risk in support of the dollar. If a gold mine could convince the world that its unlimited forward sales program, promoted as an honest-to-goodness hedge plan, could attract imitators, then the fraud might never be exposed, and chances were that it could be perpetuated. The regime of the irredeemable dollar, like the Third Reich, could claim that it would last „a thousand years”.

So it is at least a plausible assumption that the U.S. has enlisted Barrick to come out with its so-called hedge-plan to fool the world. Here is the deal: the U.S. would covertly underwrite the potentially unlimited losses of Barrick in exchange for its complicity in the scheme of capping the price of gold. As an incentive, Barrick would be given the green light to gobble up its weaker brethren to become the world’s largest gold producer. Neat, isn’t it? Yes, if you bypass the ethical problem that the betrayal of shareholder trust on the global scale would be unprecedented in the annals of business. However, that problem could be managed by an ironclad stonewalling of the arrangement to guarantee secrecy.

(Source: Goldseek.com, by A. E. Fekete)