Friday, December 2, 2011

While the masses are talking about desperate need to buy physical Gold and Silver

The central banks are preparing to have to sell most of their physical and paper Gold and Silver reserves to raise cash to try to manage the dollar funding issues facing them and their failed policies. Those needs are ravenous and insatiable. They are not satisfiable with either means of printing or asset sales - so selling assets/collateral like Gold and Silver or printing will only be like using a pea shooter against an aircraft carrier. Not only that, banks all over the world will have to do the same…this WILL NOT BE A MARKET FOR PHYSICAL commodities for quite some time to come.

Today’s action in the dollar indicates the level of failure and panic (see my previous post: Fed panics, ECB panics, China panics…at the Central Banks via their recent manipulations and policies. They have failed before they have even gone more than a few days. BURNanke has burned the money once again before it even hit the ground. Now they will have to resort to other means.

Today is prime short territory for these commodities and many others as well. The margin call paused for a few days only to become bigger in the process and more dangerous when it requires satisfaction. Has anyone noticed that the events in Iran have had no impact on Oil? There is a reason why…

 …and that funding that europe so desperately needs from the IMF…well…
“I’m adamantly against the IMF being involved in this,” Coburn said. “We’re throwing good money after bad down a hole that I think is not a solvable problem,” he said. “Europe is going to default eventually, so why would you socialize their profligate spending,” he added. Coburn estimates the U.S. could be liable for as much as $176 billion if the IMF shores up Italy and Spain and the European Union collapses
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