20 April, 2007

STEELE: So Much for Business as Usual

Posted by alex in economy, Edgar Steele, gold & silver at 7:29 am | Permanent Link

(Market Update 7-7)

By Edgar Steele

My name is Edgar J. Steele.

(To my long-time faithful readers: As promised, “Jesus Had It Coming…” contained something to outrage everybody. The Chosen have been fit to be tied. The follow-on discussion I mentioned is in the works as I pick through the aftermath. Here is yet another Market Update, which serves two purposes: First, it is important to all of us, far out of proportion to things financial in the past. Second, these articles are proving to be most productive in bringing in fresh open minds that are just aching to be opened a bit more with our particular brand of politics, social commentary and, of course, today’s rarest commodity: the truth.)

If you have been following the dollar’s miseries, as I have suggested repeatedly, you noticed that “they” let it slip beneath 82.0 this past Friday. This, after letting it slide beneath 83.0 just three weeks ago, though they promptly drew a new line in the dirt at 83.0. This, after letting it pancake downward like a World Trade Center implosion, always shoring it up for a time at nice, round numbers like 85.0, then floor 84.0, then floor 83.0. Friday always has been the day they pushed the dollar back up, so that the figures could be staring us in the face all weekend, while the markets were closed.

Now the dollar sinks below floor 82.0 this past Friday and seems still to be floundering, much as a nonswimmer in over his head might do just prior to sinking out of sight. Odd behavior, given recent trends by government-sponsored price manipulators, eh? Where’s the cavalry?

Well, I strongly suspect this marks the beginning of a new stage in the dollar’s demise. No, I don’t think we’re in the basement express elevator, but I do think it likely that there are several floors about to be traversed very quickly.

What’s different this week?

First, a great many knowledgable commentators suddenly have gone bullish on gold and silver. Many of these guys cautioned against loading up on precious metals until just recently.

Second, technical analysts galore speak of the indicators breaking out and pointing to imminent increases. Of course, technicians are like neurologists and tea-leaf readers: show them all the same thing and each will have a different opinion. What is odd is how bullish so many of them seem to be right at the moment.

Third, the dollar’s death spiral has to happen, as surely as little green apples are about to appear all over the Northern Hemisphere. I write about this progression at length in my book, which still is right on the money regarding where our economy (and world events, including the upcoming WWIII – yes, indeed, folks, there is war after Anna Nicole Smith and Don Imus).

But, here is the single most important piece of information, the one that eclipses all that I mention above (and several things, including the hem-line stock market predictor, that I failed to mention): Goldman Sachs, the brokerage firm from which all significant government financial controllers, both American and British, emerged in recent years, now is covering its gold shorts. LeMetropoleCafe.com, one of the very best Internet subscription newsletters, second only to the free Daily Reckoning, in my opinion, today published a very interesting chart laying Goldman’s gold short positions (in red) against the price of gold (in yellow):

Okay, I see your beady little eyes glazing over. Stop that! Pay attention, because this is important! Ignore all the dotted lines and all the little squiggles and even all the zigs and the zags. They aren’t important, despite what many might have you believe.

There is just one, single thing of importance that literally jumps off the page: Goldman’s short position has traveled essentially sideways since gold’s most recent takedown in late summer of last year, but suddenly has dropped like a rock (someday we likely will be saying, concerning a failing investment, that “it dropped like a dollar”).

Consider the record profits of Goldman and the other brokerage behemoths that make up the market manipulation team. Consider the monster bonuses paid out. Consider all those guys who left Goldman and now work for Blair and Bush. Consider how easy it would be to make money at roulette if you simply knew, on each throw of the wheel, whether the result would be red or black.

Now, do the math. Is this a head fake? Almost certainly not. Like America’s current Treasury Secretary and former Goldman CEO, Goldman Sachs is far too arrogant. Is the dollar about to sink several floors with no support, which means that gold and silver will rise in direct proportion? My guess: yes.

Or, as the wise folks over at LeMetropoleCafe.com said today: “…we are in the start of a huge upleg in gold. Goldman Sachs has decided to get out of Dodge!”

Should you buy gold and silver? Maybe. They aren’t going to get any cheaper, that’s for sure. Should you hold what you have? Absolutely!!!

For all those who have forgotten: I favor silver over gold because its fundamentals are more promising and because I fear a reenactment of FDR’s gold seizure. My personal preference is for silver rounds and 10-oz silver bars. I continue personally to recommend the services of Steve Baldwin, owner of the Spokane Coin Exchange (800-577-8332), a fellow who ships all over the world and who never has let me or any list member down.

If, against all odds apparent to me, you decide to sell into the coming upswing, be sure to let me know, so that I can put you in contact with list members willing to pay you spot for your precious metals. If only I could afford to be one of them…

My name is Edgar J. Steele. Please visit my web site, www.ConspiracyPenPal.com, for other messages just like this one.

  • One Response to “STEELE: So Much for Business as Usual”

    1. Kalki Says:


      AWESOME VID!>>