some very strong gold equity buying into close, page-6

A interesting bit from Le Metropole Cafe. Note the last paragraph. A close above (I think $975) would be a record monthly closing high.

Surely a huge signal for long term trend following systems. That could bring in some large orders....


Bill H:

What does it mean?

To all; the long end of the Treasury curve has cracked wide open with the 2yr/10yr spread gaping to an all time high. What does this mean? Well, as in all things financial today, there are two sides to the story. On one side you have the Muppet brigade telling you that longer rates have gone higher because of a perceived "green shoots" turnaround and future growth in the economy. Fear is subsiding they say.

They will also tell you how wonderful this is because the banks can borrow short term at very low rates and lend long term at higher rates, thus raking in the "dough". (It should be noted that many past banking crack ups have occurred with this exact same formula once short term rates began to rise and exceeded the earlier long term rates that banks had already lent at).

On the other hand you have reality! The current reality is that the world is already over leveraged and in the middle of a debt deflation and credit contraction. Any and every financial entity on the planet from first time home buyers to the largest debtor (U.S. Treasury) will not benefit from higher rates. Savers may benefit some, but come to think of it I don't know any of these rare birds as most of them reside in Asia. Borrowers with adjustable rates will certainly not benefit, new borrowers will not be happy and needless to say Uncle Timmy and the rest of the Treasury must be close to fainting with sticker shock now that borrowing costs are 20% higher than last month As a side note, what do you suppose higher rates will do to the gigantic bond portfolios that investment banks, brokers, mortgage banks and even Central Banks are holding?

But here is the rub, haven't we been told that "green shoots" are sprouting and the credit markets are thawing? And aren't higher interest rate supposed to be bad for growth? So if I have this correct in my mind, interest rates (market rates, not the fake rates created by the Fed) are rising during the biggest credit contraction in history at the same time our currency looks like the beginnings of a "perfect 10" swan dive. This is not good at all! The market place is even apparently selling into the bids provided by the Federal Reserve. (Who said the bond vigilantes were gone?)

So rates are rising while 1 out of 8 U.S. homeowners are at least one month behind on their mortgage payment.

http://www.reuters.com/article/bonds
News/idUSN2832609020090528

In the past, capitalism would be pushing rates down in a sort of "self fixing" fashion. Inherent in TRUE capitalism is the market place being able to "self right" itself, apparently this mechanism no longer works. It no longer works because the government has meddled in so many markets to such a degree that what we now call capitalism is really nothing of the sort. The system we have today is very similar to what the USSR and China had when the government decided the "highest and best use of capital". In other words, SOCIALISM!

The new reality of rising interest rates is actually the early signs of the marketplace sniffing out hyperinflation. These higher rates will kill any real or perceived green shoot along with many individuals, corporations, and even municipalities and states that are hanging on by a thread waiting for the "good ole days" to arrive. Higher rates during a debt contraction will kill everything except a Central Bank that has Gold backing its money but their is no such entity today.

Jim Sinclair has spoken many times about hyperinflation being a monetary event not an economic one, I think he is exactly correct. What he has prophesied is unfolding before our very eyes. What WAS the perceived safest assets on the planet (long term U.S. Treasuries) are being vaporized on a daily basis in a "run" out of all things paper. There IS only one place left to hide. Yes, you guessed it! Precious metals, those barbaric relics that governments had hoped mankind would totally forget about. Apparently investors have a longer memory than is desirable and now the problem is that there is not enough of this barbaric stuff around. Making matters even worse, no one really bothered to look for any over the past 10-20 years which means production will shrink. WOW, what a recipe for rocket fuel! Regards, Bill H.

The gold/silver shares caught some bids with the XAU up 6.29 to 155.34 and the HUI up 15.36 to 385.52...
HUI
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=HUI&sid=16794&time=8

What a bunch of pathetic arses The Gold Cartel folks are. Yesterday they took gold down in the lightly traded Access Market and have done it again today. Despite the euro and crude oil rallying after the Comex close, gold is now down $3 ... painting the tape, which is all it is. The cabal forces are shameless and beyond contempt.

Will The Gold Cartel get blown out of the water? Tomorrow, who knows? But, they will eventually. If the new gold and silver buyers make a move tomorrow, the bums are in DEEP trouble, which may already be the case. All we need is an $11 and change move higher tomorrow in gold for it to make an all-time high monthly close … an event which would bring in a whole new round of buyers ... and don't think the bad guys don't know exactly that.