Market Analysis

1.   Welcome to the Big Leagues.  I keep telling the gold community that the Chinese people and Chinese corporations should not be confused with the Chinese Gman scumbag.

2.   Stratfor, one of the most respected information services in the world, announced that the head of the Chinese central bank might be missing, and now it’s hitting the mainstream media, although the spin machines are in power mode downplaying the situation.  Imagine Ben Bernanke running away!  That’s the magnitude of the situation!  I told you, repeatedly, that the Chinese central bank/Gman had massive losses on their US dollar and bond positions they bought in a crazed price chase, from the banksters.  Almost nobody listened.  Instead, they told me what a master investor the Chinese Gman was, while I called him a bustout.  Let’s repeat the issue today, in a different way:

3.   Knock, knock.  Anybody home?

4.   The horrific bottom line is that it appears that bank chief Zhou Xiaochua lost “only” $400 billion.  Why would he buy bonds (in US dollars!) in that kind of size, after 30 years of a bond bull market, and at the end of the US dollar bull market?  Sadly, I suspect only his personal tooth fairy knows the answer.

5.   $400 billion of Chinese taxpayer money burned up in flames.     If I was in Zhou’s place, I’d try to run away too.  So much for him “dictating” to Helicopter Ben.  Speaking of helicopters, I wouldn’t be surprised if the banksters offered Chief Zhou a ride in the Bre-X company helicopter, for his “getaway”, if you know what I’m saying…

6.   I also told you, again repeatedly, that the Chinese US bond position was about as worrisome as a fly to Ben Bernanke,   when compared to the abyss of hundreds of trillions of dollars of worthless OTC derivatives garbage.  Now you see the reality.  The Chinese bond blowout, in terms of hilarious stupidity, is topped only by the Chinese Central bank’s microscopic gold position.  “After five thousand years, we’ve managed to accumulate one, maybe two, maybe even three  thousand tonnes of gold.  Honestly, we’re pro-gold for our people, we promise!”   The Chinese banksters have zero intention of putting any serious gold holdings in the hands of the people, unless it is at sky high prices.

7.   The global banksters, including the Chinese banksters, who are 100% in on the game, use gold to control the paper money system. There is no intention to replace paper money.  The game is to dilute the common person and lock debt levels.  There is no strategy to end debt.  Why would the banksters want to end debt just as rates are set to soar, set to make the average person almost a financial slave?  The banksters are slobbering for the end of the bond bull market.  “My golf ball advisor told me there wouldn’t be any more bear markets in bonds.  It’s a new growth with safety era, he read directly from the company’s research report and that’s what it says, and he’s highly respected.  I’m putting my stock market carcass into growth with safety.  I can’t take another hit with anything risky.  I made 15% last year in bonds, and my dog promised me that will continue forever.  My golf ball advisor has me fully diversified in 35 growth with safety investments.  I’m very happy with my new safe strategy” – Elmer Fudd, Master Price Chaser, Aug 31, 2010.

8.    Prediction: The US dollar will blow out the lows and send Public Investors (who I term, “Elmer Fudd”) into a