The Conspiracy Theory thread

November 12, 2010
KWN Blog

With gold and silver in retreat, King World News interviewed James Turk out of Spain. When asked about silver specifically James said, “They are not dislodging physical silver by running the paper market down. In fact the silver market is getting tighter and tighter. That’s why I am perplexed at why they are trying to run this paper market lower. If they want to get physical silver they are going to have to take the price higher, not lower.”


Turk continues:


“I’ve not seen this kind of tightness in the silver market before and you know that I have been talking about how tight the physical market has been these past few months.”


James, is this sort of like the kamikazes flying into aircraft carriers at the end of the war?

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November 12, 2010
KWN Blog

With gold getting hit hard today, King World News interviewed legendary trader Jim Sinclair. When asked about the volatility in gold Sinclair stated, “I think from this point forward you are going to see unprecedented volatility. You’ll see $100 swings to $150 swings in a day, and if you go back to 1979 to 1980 we had $150 in one direction. So if we had $150 in one direction back then, what’s to stop this market from doing $300?”


Jim Sinclair continues:


“There is very little understanding of gold anywhere. The primary culprit that is threatening every country and that’s currency induced cost push inflation.


What started all of this was three things. The discussion early on about price controls in China. The discussion in Brazil about currency controls, and then on top of that talk of raising interest rates in China. Then the general commodity market collapsed on itself because everyone is up to their eyeballs in margin debt.


And gold is an item which can get taken advantage of because the primary traders are significant and the market is insignificant in the Comex. So if you’re down on the floor and you are looking to buy 10 and somebody offers you 2,000 and you get hit on the 10, as a floor trader you’re going to sell that out instantaneously. So it feeds on itself and I think from this point forward you are going to see unprecedented volatility.”

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Stewart Thomson
email: stewart@gracelandupdates.com
email: stewart@gracelandjuniors.com
Nov 16, 2010

1. “I cannot overemphasize the critical importance of factoring the bond market into any analysis of the crisis now.” That was the sentence I started yesterday’s update with, and it’s probably the sentence I should start every update with, for the next six months!

2. I see a lot of gold analysts trying to gauge the “gold market correction” but they are seemingly unaware that the bond market just imploded, and Bill Gross basically issued a massive sell signal on his own fund, the world’s largest bond fund. For the past few months I’ve urged you to understand that when the bond implodes, there would be initial weakness in gold followed by tremendous strength. Here and now, the words “Gold” and “Bond” must be mentioned in the same sentence, or you are out to gold market analysis lunch.

3. The conventional view in the public, and a view held by many institutional money managers, is that lower rates produce higher gold prices (correct), and higher rates produce lower gold prices. Well, sometimes, yes. Sometimes, no. Sometimes higher rates produce an upside gold parabola.

4. In the second situation, higher rates and gold, in a commodity demand-related gold bull market, are a negative for the price of gold. In such a situation, gold functions as a commodity, and the economy gets higher prices as demand for goods increases. The cost of borrowing increases as the demand for loans increases because business conditions are solid. As the cost of borrowing rises, that hurts demand. Prices (int rates) for money and the price for goods both fall.

5. Look out your market window. Do you see a booming economy, or potential economic Armageddon? My message to you: the new bankster game is in play, and it’s a big one; the bond market. Bond market chaos that could send gold stocks parabolic on the upside. Here’s why:

6. I coined the term, “The Institutional Awakening”. The awakening is a bankster game to create a mass mindset of terror amongst institutions, a mindset that further QE won’t work to continue the markets recovery, and instead further QE will see bond market prices stagnate or even fall, while the US dollar falls like a rock. All in all, a nightmare situation, given the backdrop of the marked to model OTC Derivatives quadrillion dollar. Marked to model is: Marked to Lies.

7. In practical terms, meaning flows of liquidity by institutions, what the institutional awakening means is a mass panic out of bonds and into…?

8. What the gold community needs to understand is the LAW. Institutional money managers have written mandates as well as unwritten mandates on what they can and cannot do with their assets. Pouring money into gold is not on their “oh yeah, let’s do it!” list. It’s on their “if we dump our assets into gold, then our investors pull out, we get no pay, and we could get charged with securities violations” list.

9. The history of institutional money flows in a currency and bond panic is a massive flow of liquidity into the stock market. Having said that, what do YOU think happens to the Gold Price Thermometer of global financial health when that occurs, or is thought to be about to occur? I don’t think most in the gold community really understand what just happened to the bond market, and what this event means for gold.

10. I know that because, other than Bob Moriarty at www.321gold.com and Trader Dan Norcini at www.jsmineset.com, almost nobody is even mentioning the imploding bond market, yet they are conducting one study after another as to why gold “could be in a correction”. Translation: “Here are all the reasons why I just sold all my gold and you should do the same.” Thanks, but no thanks. In regards to the bond market, to quote John “Sir Johnny” Templeton, who uttered these words after the first phase of the markets crisis began in 2000,

11. “Does anybody kow what just happened?”

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electronicmaster said:

"Bond Mkt Implosion & Gold Tactics"

http://www.321gold.com

http://www.321gold.com/editorials/thomson_s/thomson_s_111610.html


Article continues,, see URL links above.

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