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THE NADLER RETORT What Jon Nadler Doesn’t Want You to Know About Gold Volume 4, November 24, 2009 By TJA GOLD (AGAIN) AT ALL-TIME RECORD LEVELS!!!!!!!!! $1,192 GOLD!
If you recall, back in my June newsletter, I said to you;
At that time, gold was priced at $975 and had been trading in a range-bound area - often sliding backward when the $1,000 level was approached. So, I'm sure many of you thought I was just being an "optimist." I am anything but an optimist!!! An optimist is generally one who ignores most of what transpires in the world. By intensely examining what is transpiring in the world, you'll gain an appreciation for "strategic pessimism." This isn't a concept that I can take credit for. It's been around for a while.
What is strategic pessimism?
This clearly isn't "Chicken Little" paranoia. It's a cogent awareness of everything that carries substantive risk, followed by rational precautions salient to that perceived risk.
If your assessment of financial risk includes the type of daily disinformation afforded by Establishment mouthpieces, such as Jon Nadler, you can kiss your financial assets good-bye!!!
Having said that, how should you develop a rational sense for what to prepare for? There are many good sources for information, but some have hidden marketing or political agendas. What you and I must somehow begin to anticipate is whether we'll see a dramatic period of hyperinflation within the next 18-24 months. Yes, prices have been falling on many goods and services as manufacturers and retailers struggle to sell in a declining economy. I fully expect to see continued and accelerated asset deflation. Real estate, cars, boats, etc. will continue to beg for buyers. As a result, prices will continue to decline and then stagnate. For instance, in my lifetime, I don't ever expect real estate prices to recover to where they were in 2006.
Why? Unemployment is the primary reason why.
SEE: The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed.
The types of decent-paying jobs that have forever been exported were the jobs that encouraged home ownership. The jobs that we can expect to see Americans fighting over in the future generally won't encourage the type of home ownership we're accustomed to. Extravagant vacation homes, and those yuppie "McMansions," are about to sell at Wal-Mart discounts. Modest townhouses may likely be the status quo once again. For most, apartment living may be a long-term prospect. In addition, we're likely to see a substantial return to what we saw during the Great Depression, when several generations (children, parents, grandparents) all lived under one roof. Does that sound far-fetched? It shouldn't. SEE: Goodbye Jobs, Hello Mom and Dad
But, about that hyperinflation issue again - the primary issue that will likely propel gold and silver prices to new heights.....
Here's one interesting insight, in video format;
"Hyperinflation Nation" - Part 1/3
Nadler Disinformation Item of the Month:
India's purchase of IMF Gold was a fluke!!!! That's right!!! "Slippery Jon" Nadler proclaimed that the Indians had no need for the 200 tons of gold they bought from IMF and weren't likely to make that same "mistake" twice. Make no mistake - It's very important for Nadler to make such assertions. He has to convince you that there is so much gold out there for sale that an avalanche of gold (e.g., IMF gold) will soon descend upon the market and send gold prices into a tailspin!!!
Remember Jon Nadler's purpose - to get YOU to sell your gold to him (Kitco) at today's prices so that they can sell that gold to someone else at tomorrow's prices.
It's that simple!!!
Remember, Nadler is the same guy who "warned" you that gold was headed back to $750 when it was selling for $950. Nadler has no shame, and he hopes you have no memory!!!!
So, where does the truth lie? Well, you can read the financial pages or the financial websites and find the truth. And it speaks of a far different world than the make-believe world that Jon Nadler has created for you!!!
Nadler: IMF Gold Sales Will Depress Gold Prices TJA: IMF Gold Will NEVER Hit The Open Market
Who was right?
IMF Sells India 200 Tons of Gold for $6.7 Billion Nadler: India Only Bought Gold to Ingratiate Themselves With IMF - They Won't Buy More! TJA: Are YOU Serious!!!?????
It looks like Nadler has some more explaining to do!!!
India's
Precious Talk
OK, India has enjoyed robust economic growth in recent years, and we could argue that India needed a higher percentage of gold as part of their exchange reserves. But, Sri Lanka? Jon Nadler, how do you explain this?
IMF Sells 10 Tons of Gold to Sri Lanka
Sri Lanka? A small, impoverished nation like Sri Lanka is buying 10 tons of IMF gold? Jon Nadler, the wheels are coming off of your wagon of deception!!!!!
If anything, we could see a functional SHORTAGE of physical gold in upcoming weeks and months. Why?
Could Gold Collapse At These "High" Prices?
The incessant message being delivered by the Establishment media is that gold is so grossly over-priced that we could expect a huge correction downward at any moment. Could that happen? Given the nature of the folks who are intentionally running our economy into bankruptcy, I've learned to never underestimate them, their vile intentions, or their immense capabilities. However, what they hammer us with, day-in and day-out, is that speculative "long" (futures) positions are at all-time highs. There is truth in that, but what they (intentionally) fail to tell you is that speculative "short" positions are also at or near all-time highs. Even more telling is that the 3-5 big banks holding these huge short positions have been losing gobs of money since gold began rising above $925!!!! Translation?
SEE: Gold & Silver: US Banks' Short Position
As these gold "short" positions continue to hemorrhage huge gobs of money, the "lid" that has been artificially suppressing gold for many years will implode, causing a so-called "short-squeeze" unlike anything we've ever seen before. Translation?
Is $4,000 Gold Possible??!!!!!
Jim Rickards Discusses $4,000 Gold on CNBC
The Second Wave of Real Estate Deception & Fraud
Their is yet another wave of "irrational exuberance" sweeping Wall Street and Main Street. Wall Street has seen The Dow Jones Industrial Index once again exceed the 10,000 level. Home sales have witnessed a recent bump-up, fueling some degree of optimism of a real estate recovery. NOT!!!
Massive waves of new Federal DEBT have fueled home and auto sales. Whether its "Cash for Clunkers" (a boon to Japanese car manufacturers) or the $8,000 Federal incentive for first-time home buyers, it's all very temporary. Let's face it, with home prices and mortgage rates falling, the $8,000 home-buying incentive probably pushed many people into buying homes under uncertain circumstances.
SEE: Rates for 30- and 15-year Mortgages, Along With Hybrid Loans, Hit Record Lows
But, make no mistake about it, investment in real estate is an incredibly bad thing to do at this time. As I see it, the real estate market will NEVER be what it was in my lifetime! NEVER! I know that sounds fairly far-fetched to some of you, but it's all part of a troubling future mosaic, a long-term and deliberate transformation of of the American standard of living. SEE: As was the case in the 1930s, those few left with cash when the market bottoms will be able to buy real estate for pennies on the dollar. I believe real estate depreciation process has much further to fall in the next 2-3 years. As I mentioned previously, a shortage of decent-paying jobs will stymie the real estate market more than at any time since the 1930s. Renting (and saving) makes more sense now than it has in many years.
Conclusions
As Ayn Rand once said, "Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence." The "destroyers" have debased our currency - by design, and they have much more damage to do before their work is complete! The US Dollar has fallen more than 16% in recent months, as measured by its standing on the Dollar Index. Much has been written about at what level the Dollar will go into a death-spiral. The "71" level could be crucial, since it represents the lowest level we've seen in decades. We're at 74.26 at this time, and one can only guess at what level foreign investors begin fleeing the dollar in droves.
When a currency implodes in a modern, 24/7, electronic trading world, it implodes overnight!! There is little time to react, let alone re-allocate your dollar denominated assets. The 1997-98 Asian currency crisis happened overnight, with people in many countries (Malaysia, Indonesia, Thailand, etc.) awakening one morning to discover that their currency had lost 50% of its value while they slept - while traders in Europe and the USA raided their currency's value on the Forex market.
When this "day of reckoning" comes to the US Dollar, it could be swift and brutal. I believe the US Dollar has at least another 30% to fall before it hits bottom. Think about what that might do to the price of oil, or anything else we routinely import with US Dollars.
Banking System Collapse - Averted, Or Not?
From what we're told, several of the largest US banks are still holding $$TRILLIONS$$ in extremely risky derivative positions. What will happen when their immense (and wrong-headed) gold and real estate positions collapse? Will the Federal Government be able to bail them out with that kind of additional (borrowed) money? Who will fund such bailouts? Who could fund such enormous bailouts? Remember, when we start talking TRILLIONS, we've reached a threshold in which NO ONE can bail us out. Not the Chinese, Japanese, Koreans or any combination of nations. Even the IMF would be unable to do much with a challenge of that magnitude.
But, even smaller, better-managed banks will continue to endure very tough times!
SEE: Number of Troubled Banks Rises to 552; FDIC Fund Sinks Into the Red
As more and more towns and cities face diminishing tax revenue from real estate and sales taxes, expect to see local governments cut benefits to employees, borrow from employee retirement systems and still find themselves compelled to lay many employees off. SEE: Mayors Sound Alarm Over Drop in City Revenues And contrary to the projections of many, there will be no “return to normal.” America is plumbing the depths of a “new normal,” with little hope of recovering to where we once were. With America’s jobs, wealth, and technology having been exported, the phrase “economic recovery” will increasingly become a sadistic joke upon a traditionally optimistic American public. Crime & Social Disorder At a time when local governments will be forced to cut the size of their law enforcement budgets, we'll be seeing a violent crime wave of epic proportions. The US was already headed into what appears to be a cyclical uptrend - before the economy began deteriorating. SEE: A Gathering Storm: Violent Crime in America Making matters worse, the economic collapse is creating an environment that will cause tremendous social upheaval and desperation. It doesn't take a criminologist to comprehend the significance of these headlines:
But Wait!!!! It Gets Worse!!! The "official" national debt now exceeds $11 trillion, and the ever-optimistic White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year. Other forecasters are putting the debt-servicing figure much higher. If the Federal Reserve increases interest rates (and it will have to), the costs associated with servicing our debt with skyrocket even further!! SEE: Wave of Debt Payments Facing U.S. Government Pensions will have to be substantially cut or postponed. Government healthcare faces an even greater challenge. Tough decisions will have to be made and greater suffering will have to be endured while we plumb the depths of an unprecedented economic and social meltdown. Other nations face similar problems and have elected to make tough decisions sooner than we have. SEE: Sarkozy to Act Over Pensions Shortfall; French Will Have to Work Longer Truth vs. Globalist Agenda
Why we don't get the candor that we deserve from US financial institutions is an open-ended topic. There could be many reasons why the Establishment wants us kept in the dark at this late juncture. You can probably surmise many of them. But, this is the kind of candor that we deserve to see here in the US: SEE: Top Euro Bank Warns Clients to Prepare For Global Economic Collapse
Remember, the people leading us into bankruptcy are the same Establishment scoundrels who brought you the "Global Warming" fraud. A fraud that represents the most ambitious attempt to transfer what little industrial capacity the West still possesses. It is also a global power-grab of monumental proportions. It takes someone hacking into their surrogate's e-mail servers for us to begin seeing glimpses of the truth - truth that they'll expend considerable energy to conceal from us. SEE:
2009 Gold & Silver Performance (As of 11-24-09)
The numbers please!
Silver 1-year Gain = 82% Gold 1-year Gain = 45%
Caveat: As always, keep in mind that price corrections in gold and silver often come on short notice, and can be very steep. I've been encouraging investors to endure these distractions for more than a decade but I've also cautioned people to avoid investing in these metals if they don't have the stomach for the wild ride that Establishment thieves continually employ to rattle you into selling your metals. Until next time.....be prepared!
TJA
Access Past Volumes Here:
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