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Slaves
to the Grind and Gold This article is going to feed off into a series of articles that are going to slowly explore the market in an Extremely Radical Manner. There is going to be huge emphasis on Gold, Silver and the commodities market in General. Next week's title is going to be Outrageous Assertions. We are going to look at the Dow in terms of Gold. This is just a precursor to what these articles are going to cover.
Let's examine the above graph. There has been a battle going in between Gold and the Stock market, which is just another outlet for the easy money policies that started in the 1990s and then went into hyper-insane policies by the end of the 1990s. Right now there are no words that I can use in the English language without sounding vulgar to describe what they are doing. If you notice from 1991 to approx 1994, there was a serious war going on. However (look at the money supply graph below) you will notice from 1994, the Dow began to win and Gold started to lose the battle--not the war (the war will be won by Gold). This corresponded to the time Greenie handed everyone on the Fed board their first ration of Vitamin supplements -- a few kilos of coke and crack and told them to get on the program ASAP. The floodgates were opened and the money supply started its upward trend into the realms of insanity. This, by the way, was also the beginning of the Internet era, one of the largest speculative bubbles. The central bankers were terrified to death when they saw this picture. For 4 years they saw that they were at a stalemate, so they had to do something desperate. What could that mean? Well feed enough money into the system to create some sort of bubble, the dot.com/internet era just happened to fall nicely into place. Their plan actually worked. They bought some time and the markets took off. Gold was ignored and Gold stocks were hammered into oblivion. You will notice that the Dow really took of in 1995. If you look at the money supply graph, you will notice that these Swines (fed heads) started pumping the money supply as early as 1993, but it takes awhile for all this sewage to trickle into the economy and infect it. Gold only lost because we had cowards at the helm who did not want to accept responsibility for their actions, who wanted to live of your sweat and blood, who wanted to milk you--then, now and for as long as you will let them--while they do nothing and fill their accounts with money they can create with the wave of a wand.
How would you feel if you knew I was living next door and after you worked for hours fixing my house and cleaning it for months, I go to my printer and start printing several hundred thousand dollars. Then I come to you and say “hey dude or dudette” take this 10K for your work and I put 900K in my pocket. I, who sat on my fat rear doing nothing but create counterfeit money, take most of it; while you who worked like a dog gets paid with this monopoly money but at ratio that could make you want to become an assassin on the spot. Take it one step further. I tell you that next week I want you and your entire family to work for me fixing and renovating all the houses I can find, but I need a week because that’s how much time it will take me to print enough money to buy all those properties and also enough money to pay your family. Are you still smiling? Now imagine this: the whole world is being made to work and getting paid with Trees--a useful product is suddenly rendered worthless when it is chopped down, made into paper, and forever ruined when ink and some idiotic face is stamped into it and its is now called currency. Now stop imagining, “wake up” because it is happening right now, right here and the whole world is its victim. Looking at the above chart. You can see the money supply went into overdrive and the market responded in kind, reaching breadth taking highs, then we hit a plateau. You can only pump this so high and we started to form a channel and trend sideways. This is very important to remember when you have reached insane levels and you start a channel formation, the price breakdown 9 out of 10 times will be to the down side and it will be hard. In 2000 Gold started to fight back. It was sick of being kicked around. Late 2001 Gold struck its first immortal blow and smashed through the channel formation by Feb 2003 from approx taking 40 ounces to buy the DOW it took only 25 ounces. However if you notice since Feb, the Dow has actually been gaining on Gold. Once again the central bankers are trying to stop Gold, but they made a very serious Mistake this time. THE TREND IS YOUR FRIEND AND THEY LET THE TREND GO AGAINST THEM. They can only delay and attempt to hold Gold here or gain a little temporary edge. But this time around, they have lost the long-term battle. Once a Trend is set in motion, it is very hard to stop it, especially if it is long-term Trend change. And this is a very long Term Trend change. Conclusion Gold is going to the moon and Silver is going to the Sun as it will be a better investment on a % basis. We are born slaves into this system. The chains have been replaced with something even more sinister than a noose round our necks. It's time to stand up and fight. Start to buy gold. If you and everyone you know starts to buy one oz. coins with extra money you have, we can sow the seeds for a New better world and insure our families against a catastrophe the likes of which none of us have or will ever want to see again (the coming world currency crisis). Start grass root movements because Gold under such blatantly fraudulent conditions will be the only thing to retain its value. Stand up and say, "No more. Today is the day everything changes." P.S. Make sure you also visit the www.infognome.com. John Tyler, my trusted associate and friend, has put many a valuable article that can only help in your quest for knowledge. Dow and what is it saying? It looks like this week we are going to pass 9850 initially. The cycles are not to clear as they were last week, however after passing 9850 and possibly testing 9900 we should start to pull back 1st target
9740 We hit our targets last week, at least the minimum targets, so the count is now 3 hits and 2 misses. I think that’s not bad especially if one is trying to predict where the Dow is going to be one week in advance. ©
2003 Sol Palha, Tactical Investor CONTACT
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