And they're off! - rangebound churn ends for now

[68Camaro]

Approaching $21 silver again and $1310 gold, PMs have clearly finally broken out. Can JPM stop it?

And does it want to now? Given their long position in gold and large stocks of physical silver they might be ready to loosen the leashes and let the horses run again.

[68Camaro]

It's been so long since we were above $21 I had to go back to look at the historical data. It dropped below 21 on 12 November and hasn't been above since, until today. 3 months of buying opportunity - did you take advantage of it?

[68Camaro]

In Bill Holter's column today he believes there is a specific reason why the House caved so quickly on the debt limit (not that they had a choice anyway, but the speed of it was shocking - there must've been a back story), and why at the same time gold (and silver) is on the march. He believes additional major deals have been struck or are in the works between national powers which will have the effect of removing the petrodollar arrangment and end up in the Saudi's selling their oil for other trades/currencies denominating in something other than the USD. The next effect of all the above will be to cause holders to dump US Treasuries, which will cause the USD to crash, the Fed to have to buy all the debt being created, the US market (and with it the bulk of the world markets) will tank, and gold will skyrocket.

Jim Sinclair said a few days ago that he believes the US will threaten, if not attack, Saudi Arabia (he literally said we would bomb them). Taken less literally that is a US attempt to do something which will pull the magic carpet out from the Saudi deals and keep the petrodollar in motion for awhile longer. Obama has added a side-trip to Saudi Arabia during his upcoming European trip. One can suspect that was for a specific reason, not for pleasure.

[68Camaro]

Inflation? I'm home today to take care of some to-dos and have the news on in the background. The MSM are hawking any number of secondary messages to prepare people for higher coming prices, especially food. There is a real drought in the California bread-basket, and has been for years, but they are preparing to use that drought, with a global warming back-story, to pin the ultimate blame for inflation on a drought created by the greedy capitalists and anti-environmentists. Watch for this in the coming months.

[beauanderos]

Inflation? I'm home today to take care of some to-dos and have the news on in the background. The MSM are hawking any number of secondary messages to prepare people for higher coming prices, especially food. There is a real drought in the California bread-basket, and has been for years, but they are preparing to use that drought, with a global warming back-story, to pin the ultimate blame for inflation on a drought created by the greedy capitalists and anti-environmentists. Watch for this in the coming months.

actually, Rich... it would be the environmentalists who would be to blame (in part) for low ground water tables. They've been trying to preserve the habitat of the Delta smelt for years now... diverting perfectly good fresh water run-off to keep the salinity of the Delta down... whereas the farmers could have used it for their crops and replenishing ground water aquifers. Big controversy over here. I say humans are more important than tiny fish.... but go figure

http://westernfarmpress.com/delta-smelt

[theo]

In Bill Holter's column today he believes there is a specific reason why the House caved so quickly on the debt limit (not that they had a choice anyway, but the speed of it was shocking - there must've been a back story), and why at the same time gold (and silver) is on the march. He believes additional major deals have been struck or are in the works between national powers which will have the effect of removing the petrodollar arrangment and end up in the Saudi's selling their oil for other trades/currencies denominating in something other than the USD. The next effect of all the above will be to cause holders to dump US Treasuries, which will cause the USD to crash, the Fed to have to buy all the debt being created, the US market (and with it the bulk of the world markets) will tank, and gold will skyrocket.

Jim Sinclair said a few days ago that he believes the US will threaten, if not attack, Saudi Arabia (he literally said we would bomb them). Taken less literally that is a US attempt to do something which will pull the magic carpet out from the Saudi deals and keep the petrodollar in motion for awhile longer. Obama has added a side-trip to Saudi Arabia during his upcoming European trip. One can suspect that was for a specific reason, not for pleasure.

Thanks for all the analysis. I think it would be difficult to explain to the public why the U.S. suddenly is threatening military action against the Saudi's. I've been under the impression that S.A. is afraid of Iran and, therefore, needs our protection. The real threat we could make would be to remove that security blanket.

[68Camaro]

Thanks for all the analysis. I think it would be difficult to explain to the public why the U.S. suddenly is threatening military action against the Saudi's. I've been under the impression that S.A. is afraid of Iran and, therefore, needs our protection. The real threat we could make would be to remove that security blanket.

Yep, but what if someone else - say China - has stepped in and told the Saudis - "hey, not to worry, we can't stand either Iran or Russian either (or the US, except to trade with) - we've got your back".

[beauanderos]

Thanks for all the analysis. I think it would be difficult to explain to the public why the U.S. suddenly is threatening military action against the Saudi's. I've been under the impression that S.A. is afraid of Iran and, therefore, needs our protection. The real threat we could make would be to remove that security blanket.

Yep, but what if someone else - say China - has stepped in and told the Saudis - "hey, not to worry, we can't stand either Iran or Russian either (or the US, except to trade with) - we've got your back".

seems to me I did read something about the Chinese developing a military base in Saudi Arabia in the last few months.

http://www.nti.org/country-profiles/saudi-arabia/delivery-systems/

[slickeast]

Rich,
They are just showing us some Valentine love.

[68Camaro]

I'm feeling the love! But I'm sad as well - no more cheap PMs? We'll see.

[theo]

Yep, but what if someone else - say China - has stepped in and told the Saudis - "hey, not to worry, we can't stand either Iran or Russian either (or the US, except to trade with) - we've got your back".

A scary thought. I don't know if they are quite there yet, but it is something to watch for. I believe its a foregone conclusion that the U.S. will lose its reserve currency status. The only question is; will it happen slowly over the next 3 t0 5 years or will it be a sudden event which will hit us on a quiet February weekend?

[68Camaro]

We can only hope that some sanity will prevail in decision making - if only I had confidence in the decision-making of our leadership I would feel better about the choices they will be facing.

[PolishPunisher]

Is silver up or is the dollar going down?

[68Camaro]

Is silver up or is the dollar going down?

USD is slightly down relative to other fiats today but the difference is in the noise level. USD is down maybe half a percent for the week versus the currency shopping basket, still above 80. So it's not the USD per se.