To answer the deluge of question today breaking over me like Hurricane Katrina:
If this disaster was under control there would not be three financial giants speaking so far today. Actually I want another Nobel Laureate, Dr. Brenner, to stand up and be counted.
Iceland’s collapse is no small event. It is not something meaningless that cannot be applied to a broke giant like the USA whose debt to non US entities are enormous problem from banks to government.
This morning the stock market in Iceland, after a three day stop, opened up down 77%. The Krona is in the tank.
The very few in Iceland that survived their crisis are those that, against all advice from every corner, held gold. They are sound and solvent. When this happens to a country their distribution means melts down. Then it is a rush to buy everything you will need for a minimum of 90 days, maybe much longer.
Gold was up $20 in non-US hours, but got mauled by intervention to the negatives and is now slightly higher regardless of the US dollar’s nature.
Think about the load of garbage suggestion that Europe has more problems than the US. That is an Urban Legend without substance. You will see!
This window dressing has 21 days to go because it is more political than it is economic.
That does not mean the Exchange Stabilization fund is non-existent except as an order from the Secretary of the USA to his preferred brokerage firm to sell gold in the paper market. That broker does not even try to hide their actions in either the gold market or equity index related vehicles. The second Goldman appears, every local jumps to whatever side they proudly demonstrated. Such a position of ego usually occurs only at or near the end of that Financial God’s fame.
Those of you that erroneously think this can never end have never lived through this before. I have lived here for 50 years and am well aware of how the ultimate currency acts.
Gold is insurance against bailouts, busted banks, money market funds like Reserve Funds which have missed their promised payback today, conflagration in the OTC credit default and other varieties of credit derivatives, enormous and unprecedented flood of newly and electronically created US dollars everywhere.
I told you about that lady that I felt so bad about 8 days ago. She sounded quite mature. Her total wealth is in a Reserve Money Market Fund. She was told they would pay her back in eight days. That was yesterday and NO repayment was made.
Please read this publication before calling me. Please use the search engine provided here before calling me. Please make an effort to research your question using other tools before calling me.
You are giving me ever-deepening battle fatigue so I have to pull back. I have no other choice. 90% of the questions asked have already been answered here in detail repeatedly.
The same callers who need their hands held are tiring me. To be honest, constant whining by the same people is starting to piss me off.
Everything you see done is more of exactly the same thing that caused this problem. It is certainly coddling the real criminals that caused all this.
If you really buy the crap that anything other than freedom of markets to do their thing and truthful valuation of items on any concerned party’s balance sheet can fix the problem, you are too damn dumb for me to help you.
If you believe that governments are bigger than the currency markets or the ultimate insurance currency, gold, what are you doing owning gold? Please do me, the market and yourself a favor and go away.
Now I am going to call this mature lady and give her the less than good news. Gold would have done a lot more for her than a Treasury instrument money market fund that was in all probability up to the greedy eyeballs in OTC derivatives.
Gold will trade at $1200 and $1650 on or before January 14th, 2011. It does not become more of a reality if you call me to hear me say it. Yes, I am 100% in gold and will grow as additional funds become available to me. The difference between you and I is that I stand on my bank as it is underground.