25 March 2011

Weekend Reading


"As it was in the days of Noah, so shall it be with the coming of the Son of man. In the days before the flood, they were eating and drinking, marrying and being given in marriage, even to that very day in which Noah entered into the ark. They did not suspect what was happening until the flood came and swept them all away. So shall the coming of the Son of man also be...Watch therefore, because you do not know at what hour your Lord will come." Matt 24:37-42

"For our struggle is not against flesh and blood, but against the rulers, against the authorities, against the powers of this dark world and against the spiritual forces of evil in the heavenly realms. Therefore put on the full armor of God, so that when the day of evil comes, you may be able to stand your ground, and after you have done everything, to stand." Eph 6:12-13

"Surely, there is at this day a confederacy of evil, marshalling its hosts from all parts of the world, organizing itself, taking its measures, enclosing the Church of Christ as in a net, and preparing the way for a general Apostasy from it. Whether this very Apostasy is to give birth to Antichrist, or whether he is still to be delayed, as he has already been delayed so long, we cannot know; but at any rate this Apostasy, and all its tokens and instruments, are of the Evil One, and savour of death.

Far be it from any of us to be of those simple ones who are taken in that snare which is circling around us! Far be it from us to be seduced with the fair promises in which Satan is sure to hide his poison!

Do you think he is so unskilful in his craft, as to ask you openly and plainly to join him in his warfare against the Truth? No; he offers you baits to tempt you. He promises you civil liberty; he promises you equality; he promises you trade and wealth; he promises you a remission of taxes; he promises you reform.

This is the way in which he conceals from you the kind of work to which he is putting you; he tempts you to rail against your rulers and superiors; he does so himself, and induces you to imitate him; or he promises you illumination, he offers you knowledge, science, philosophy, enlargement of mind.

He scoffs at times gone by; he scoffs at every institution which reveres them. He prompts you what to say, and then listens to you, and praises you, and encourages you. He bids you mount aloft. He shows you how to become as gods.

Then he laughs and jokes with you, and gets intimate with you; he takes your hand, and gets his fingers between yours, and grasps them, and then you are his."

J.H.Newman, The Times of AntiChrist, 1890


Gold Daily and Silver Weekly Charts - Blythe Desperately Seeking Silver


March 24, 2011-- "There is only one certainty regarding paper money -- the longer you hold it, the less it will buy in terms of real goods or real money -- gold." Richard Russell.

A late day raid on price, again after Europe went home for dinner. It happened at roughly the same time as it did yesterday, but it really did not do so much, and actually failed rather badly in silver.

Next week should be interesting. I do not know what it is going to take to move gold over that neckline in the big inverse head and shoulders formation, or how long it might take. But I suspect strongly that when it does break out we will see another fast move higher, because so many in the markets are not positioned for it. After at least one serious 'gut check' on the longs, gold will most likely move fairly quickly to 1590.

Depending on what happens, I will not be surprised to see gold hitting $2,000 by year end. What concerns me is the potential for a deflationary event this year with another stock market collapse. This will not be a true deflation, but a liquidation panic, that will set up the next round of monetization and a further deterioration of the social fabric.

There is an obvious push from some of the developed countries to enlarge the wars in the Middle East and Asia, from Libya to Afghanistan. This is all about oil, and Keynesian militarism which is the last refuge of corruption in a failing empire.





SP 500 and NDX Futures Daily Charts


Stocks opened brightly on the slightly 'better than expected' US GDP revision of the fourth quarter to 3.1%, but it really is moot at this point at the end of the first quarter.

Fukushima weighed on the markets, as it now unfolds that the situation is worse than TEPCO and the government had allowed, with a probable reactor breach unleashing more dangerous radioactive fallout over a wider area.

More later...