GOLD- A FOLLOW UP!
November 12, 2004
This is a follow up to yesterday’s commentary. On Thursday, spot gold came roaring out of the blocks and after about an hour gold was knocking on the $400 door. Gold was only $1.50 from that critical psychological level when the shorts came in and beat it back a bit. And the newest of wars is on.
Banks and major commericals are short big time and they cannot allow gold to hit the headlines of major newspapers lest they lose some serious money. In over night trading (I am writing this late Thursday night) gold is once again attacking the $400 level. Maybe Friday will be the day but then again, the shorts have a lot to lose and they could hammer the real wealth big time.
Gold is such a small segment of the market that it can easily be manipulated in the short run, but over the long-haul, it cannot. The increasing trade deficit number that was released Thursday didn’t help the shorts.
In the last 100 days the following six stocks are up 92%: BGO, EGO, GSS, CBJ, WHT, and CDE. CDE is more of a Silver stock and speaking of Silver, check out HL. If you’re looking for some cheap stocks watch SLGLF, MYNG, and CALVF. I’m not only watcing those last three but owning. Finally, there’s the S. African wild gold stock- DROOY. And if you’re well healed there’s always the largest and the leader in this gold run- NEM!
Enough investment stuff- back to politics, wars, and Arnold’s inauguration! 
PS. Friday afternoon- Once again gold got within $1.50 and backed off. Spot gold markets close at 12:30pm and finished up $3.50 at the $3.98 level. Maybe Monday!
THE “GOLDEN” PROOF!
November 11, 2004
Wednesday was one of those days that confirmed a lot of the economic prognosticans that I’ve been making: big time. The only stocks that I own at this moment are GOLD stocks and Wednesday was definitely a day to own them as most were up 5-14%: for the DAY!
What makes gold move you ask?
First, there’s uncertainties and the threat of war. We got the rumors from the CIA report that said things were not going well in Iraq, Bremer rushing back to meet with Bush, and then the Italian police station bombed in Southern Iraq. Presto! We have a major reason for gold to move UP.
Secondly, gold moves up on any inflationary tendencies that will further devalue the devalued dollar (96% since the Fed was established 90 years ago). The Fed is needing to print worthless, fiat money to cover the Federal debts to the tune of more than ONE TRILLION!
The estimated federal deficit for next year is $500B, plus $87B for Iraq, plus $217B borrowed from the Social Security Trust Fund, plus tax cuts, plus prescription drugs, and plus who knows what at this point. Get the picture. Reason number 2 for a gold surge.
Thirdly, there’s the thought of rising interest rates- and they are going to rise, knocking the dollar down more and sending investors running for real value: gold.
Gold isn’t denominated, fiat money. It’s not American, Islamic, French, or Oriental. Wednesday gold set a 7+ year high and is about to climb to the $400 psychological level. From there, the sky is the limit. HUI was up an astonishing $15.91 as well.
Gold’s action is proof that even though the Dow is near 2003 high levels that it’s still a BEAR market rally and the only BULL is that coming from CNBC and those who sell stock for a living.
LET THE OTHER WARS BEGIN!
November 10, 2004
I know, you’ve got to be saying to yourself, didn’t the war(s) begin years ago? Aren’t we still fighting in Iraq and Afghanistan? Yes, but those wars are are physical and religious (though we deny the latter). But, I’m talking SERIOUS wars: economic and political.
Billionaire George Soros is putting his money where his mouth is and he’s going after George Bush with all the millions he can. He just put up another $5 million to go along with his previous $10.5 million in a political funds to defeat Bush. He calls the defeat of Bush a matter of life and death! Do you think he’s serious? What will really be interesting is to see just how much of his personal fortune he’s willing to spend. As one of the world’s most wealthy individuals, I’d say he’s a serious contender.
And, that’s just another reason I feel Hillary has to come into the fray. Hubby, Bill, loves money and power and if Hill were to hook up with Soros: well, wow! Time will tell.
Then there’s the WTO. Tuesday, the WTO called the Bush steel tariffs illegal and threatened $2 billion in tariffs against the U.S. unless Bush backs off. So, let the TRADE WARS begin. Will Bush back off? Bush? I don’t think so. If the world has learned anything from Bush it’s that when he makes a decision, he sticks with it come hell or high water: or both.
So, let those OTHER wars bgin: the political and economic ones which will leave one big wake in the lake of American life!
THE SAUDI ARABIA N OXYMORON
November 9, 2004
Fifteen of the nineteen Twin Tower suicide bombers were from Saudi Arabia. UBL is from Saudi Arabia but of course the Saudi’s are our FRIENDS! Right.
One of the most extreme Muslim groups in the world makes it’s home in Saudi Arabia: the Wahhabis (UBL’s roots are here). And yet the Saudi’s spend millions each year on PR to make American’s feel like they are our friends.
Last month, the Saudi sheiks were found trying to buy nuclear weapons from Pakistan. I wonder why. They also teach their children to hate the Jews, and charity drives are run frequently to give money to suicide bombers who want to kill Israelis’.
Monday, a member of the Senior Council of Clerics, and the head man for the government in religious affairs explained that SLAVERY is a vital part of the Muslim faith. And guess, what! Anyone who disagrees with Al Fawzan is an infidel (his words). So much for freedom of speech and tolerance.
And therein is my point. I cannot understand how our nation can claim to have such friends who hold the beliefs that they do as I’ve outlined above: and that’s the short list on the subject.
The Saudi Arabian mindset and lifestyle is worse than just an oxymoron, it’s perverted, anti-social, full of hate, and out to destroy anyone who disagrees. This is not the Islamic religion that I am aware of in the Koran; however, it is the State policy of Saudi Arabia, and we need to get a grip on this reality of life: a wake-up call!
PS. And a salute to all of our service men and veterans on this Veterans Day.
HEADED FOR A HARD FREEZE?
November 8, 2004
Here in Houston, the weather is just beginning to enter that time when we remember why we like living in the city. The crisp fall weather is a welcome relief from the summer’s 98 degress and 98% humidity.
But in other areas of life, it’s looking more like a “hard freeze”. And I am talking D.C., politics, and an election that is now less than one year away. The next 360 days will not go quickly though.
The intelligence committee flap has put an accent mark on the DIVISION that this nation represents. The war and all that it has brought with it has clouded some of our vision of the year 2000, when we last had an election. If you remember back, the nation was about as equally divided as it could be. Can you envision those political maps with both coasts in red and the rest of the nation in blue?
The leaked memo of the intelligence committee has overshadowed the leaked memo on the CIA agent. Both sides are stiffening their opposition to one another. The 2004 election will determine so many things for decades, as most probably 2-4 Supreme Court Justices will retire. If the Republicans can make some gains in the Senate, the Democrats will not be able to hold off on all those nominations.
So, instead of a thaw in relations between the two political parties, it’s looking like we’re headed for a deep freeze in political cooperation.
WHAT’S THE IRAQ DEAL?
November 6, 2004
Just when the Democrats were chomping at the bit about how bad the economy was along comes the 7.2% GDP and what’s this? The unemployment rate is going down? Almost a quarter million jobs added in the last three months? Tell me it ain’t so, the Democrats beg.
But, then there’s Iraq. If the economy is going good maybe the reverse of the “Daddy Bush” legacy will work. Good old #41 had whopping approval ratings for the war but lost to Clinton on the economy and that was the Democratic mantra over the past year. Maybe they need a shift in strategy.
Last week was the most bloody week this year since the war began. It “appears” that Iraq is becoming more dangerous by the week. So, maybe the Democrats should turn from the economic woes to the military woes. After all, they have a totally against the war candidate (Dean) and a General who says he could win it (Clark).
Who knows how the political and economic tides shift from day to day; however, what is becoming more and more apparent is that Bush needs some sort of “fix” or success in Iraq. Daily and weekly “kills” of our troops is going to eventually wear on the American public.
MORE ECONOMIC JIBBERISH
November 5, 2004
Every now and then I come back to the economic picture that usually turns people off. “Hey, things are great, don’t give me any bad news”, is the rant. Since I feel that we’re still in a BEAR market rally, my news isn’t what people want to hear, but it’s Thursday night as I write and here’s what’s on the horizon.
Friday morning at 7:30am we get the unemployment figures for October. The rate has to drop: maybe to 5.9%? Great news! The market should rally big-time in the morning, but the afternoon could produce either a major pull back or a rocket shot with the Dow up 200+.
But then comes Monday, November 10th. The three most respected, mega-rich, and savvy investors are very negative on the market. I am talking Templeton, Soros, and Buffett. If the billionaires are headed for the hills, why is the average guy still buying? Good question!
Greenspan says rates will stay low because inflation is low. WRONG! Inflation is heating up. Maybe Alan isn’t admitting it, but today the Federal Reserve in Australia raised interest rates 25 basis points. While there’s no doubt that almost all of the 3Q economic reports look good, they’re bound to fade.
It’s the tax rebates, dummy!
All those tax breaks checks have now been spent. Where’s the money for Christmas going to come from? Like a “peaking politician”, I’m afraid that Bush & Greenspan hit the accelerator too soon. Maybe not; however, can they hold this economic puppy together for twelve more months so that Bush can get re-elected? I hope so but it’s a long shot.
If Bush & Greenspan can keep greasing the skids for another 10-12 months, Bush can then oversee a real recession! Ahh, but who wants to hear that junk? It’s just economic jibberish that no one can interpret! On with the party! Another round for the house (White House).
JUDICIAL TAMPERING?
November 4, 2004
George Bush signed into law the partial-birth abortion bill that both the House and Senate overwhelmingly approved. They didn’t need to read the public polls that showed 71% of Americans were for the law and only 23% felt the law was wrong.
So, the Legislative branch has done what the constitution authorized it to do: make and pass laws. The Executive branch has approved it, signing it into law. And then within two hours, a Federal Judge in Nebraska orders a TRO! Talk about a set up. Talk about judical over-step!
More and more we are seeing the Judiciary take on the role that the framers of our constitution gave to the Legislative branch. What U.S. District Judge, Richard Kopf, did from Nebraska was totally out of bounds from what the writers of our constitution had in mind.
And, there are so many other areas wherein the Judiciary has gone well beyond it’s intended authority. It may be that we have to take away the “for life” election principle and have them stand for re-election so that they are accountable to someone.
Every attorney knows that any and all judges are virtual gods in their court rooms. That being the case, we’re left with the only hope that ALL these people are benevolent: which is not the case. So, what do we do with this judicial tampering?
Good question.
BACK TO NORMAL?
November 4, 2004
It appears that we now have our computer problems fixed, cool weather is on the way, I’ve seen Matrix: Revolutions, and all is well with the world. Really!
It’s back to normal. The President signs the partial birth abortion law and two hours later a federal judge in Nebraska puts a stay on the law.
We have soldiers dying on the field in Iraq while Democratic politicians on the Senate Intelligence Committee plot how to “use” the war for their political advantage next year.
I’m not so sure this normalcy is all that good but alas, it’s the state of affiars under which we live these days. I have to wonder how much longer we can continue to kill the unborn, emoptionally kill each other, politically become more divided, financially get deeper in debt, and spiritually become more cold.
Time will tell if we can live in such “normalcy”.
HIT & MISS TECHNOLOGY!
November 3, 2004
Tuesday turned out to not be much better than Monday on the computer technology arena. We’re still experiencing peak loads of traffic that our servers can’t handle. One minute we can only get to the outside, then a minute later we can only access our in-house sites.
Hopefully Wednesday will be the day we find the “fixes” that allow for all the bad news from the war front to get through.
At least CBS decided to opt out of the Reagan mini-series although they didn’t do it because of the pressure they were getting. Really?
Can’t anyone be truthful? Did CBS think they really saved face with that kind of a response?
Finally (and I have no clue if these brief comments will make it to the light of internet day when I say “send”), it looks like the Republicans will pick up a couple of Governorships (Kentucky and Mississippi).
Send!
CRASHED SERVERS
November 2, 2004
Our CultureShapers posting of the top twenty finalists in the eight categories created such heavy volume Monday morning that our servers crashed and were down all day. We’re back up now (6:05pm Monday) and adding capacity for Tuesday; and that’s affected this in-house site as well.
I should have a post Tuesday afternoon. We serve six different web sites in-house.
THE COST OF FREEDOM!
November 1, 2004
Sunday was a deadly reminder to several dozen families just what the cost of freedom is. When the Chinook helicopter went down so did the hopes and dreams of some sixteen soldiers who were ironically on their was to a little R&R. Another dozen and a half soldiers will have injuries to remind them how close to death they came.
Forget the politics that will be made of the incident, if you can. The war on terrorism is a long war, a deadly one, and one that will ultimately define who were are as a people and a nation. The calls will increase for us to get out; however, that’s not really an option. Bottom line: there are no options.
All the bull about Bush not having a plan is pure garbage. There is no plan other than the one we’re working on and it’s a costly one. I wish it weren’t. I wish no other U.S. service man or woman would die but that’s not reality. Many more will give their life that you and I can do things like vote Tuesday! I pray you will.
We elect men and women to office not knowing what fate has in store. Bush had no idea he’d be facing what he is now. Men and women who joined the military prior to 9-11 had no idea they’d be in Iraq: certainly my son did not, but he was one of the lucky ones who came back physically untouched. But then he could find himself back there in 2004 too.
Freedom is not free. Life and living is not free. And among the things that cost, some prices are very high indeed. I pray that we’ll honor those who took their last breath on a field so few knew anything about, in a land where the language was entirely different, and among so many strangers. The hot lead that pierced their bodies was the last feeling or sensation of life as they knew it. It was a price few really thought they’d have to pay, but then they didn’t have a choice.
We do have a choice- to live, and to live fully and poassionately!
Latest Daily Commentaries...
- Interesting Times
- Lizard Legacy & Monkey Brain?
- Thinking & Feeling
- Limited Vision?
- An On-Off Switch?
- Ignoring The Crisis
- Anarchy Or Dictatorship?
- Democracy or Anarchy?
- Face Off With Facebook
- The Third U.S. War!
- Can You Sense It?
- The Parteee Is Over
Daily Gold Chart
