Quail Hearted Fools

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(Great Mash-up… dig the Vuvezelas, too!)

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Oh that’s just excellent.   The Republicans win the biggest House sweep since the Coolidge Era (63 seats) and then go full Barney Frank belly up to the Messiah on the Great Tax Cut Showdown.

Sure, they kept the Bush 2003 Tax Cuts…

For two whole years!   Someone with an economic brain in their head please tell me… what does that do exactly?   How in the heck do these morons in Congress expect anyone in honest business to plan for anything with the Tax Sword of Damocles hanging over their head again for another two years?   

It’s the Uncertainty, idiots!   I think I shall propose an Amendment to the Constitution that might save us all heartache…. I will propose that every Congresscritter get at least 10 hours in university-level economics, with Econ 101 being mandatory in the syllabus.  

And what’s the icing on the cake?  

No, no… I mean besides Obama getting another chance to spout his tele-prompted class warfare inanities over and over (he is SO tedious) to the increasingly skeptical (and sparse) television audience…

No, the icing is this 13-months (yes, MONTHS!) of additional unemployment bennies agreed to by the spaghetti noodle “GOP Leadership” along with this useless extension.    Yeah, that oughtta REALLY help knock down the unemployment rate.   Just like it’s done in Europe, the original mother land of the Permanant 10% Loafing Community.

Hey, who cares, right?   The other 90% of the working stiff community will pay for it, right?   And hey, think of the incentive all those business owners have to try to entice those toadsuckers off the dole with their TWO WHOLE YEARS of low capital gains rates!  

Seriously, it’s days like this that could drive a sensible citizen — one who believes in the true and original precepts of this country — to bleak despair.

And please, fellow conservatives, don’t come back to me with the following trope: “This will be great for the Republicans!  Now we KNOW unemployment will be 12% in 2012, and we can GUARANTEE Barack is done and gone!”

Sorry, Homey don’t play that schist.   I am a citizen of this beautiful country first and foremost, and if my party’s leaders are playing this two year collapse as a gaming strategy, then in my book they are as DONE as Nancy Pelosi and the rest of the useless sods in Congress.

Six weeks after the election and already I’m getting my firehouse out.   Time to ream out the Augean Stables once again!

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All of the above will only continue to crucify the dollar on a cross of paper mache, but that is little solace to me.   I sold some EXK today and more of my AGQ, but left everything else be.   I will likely continue to trim tomorrow, for reasons mentioned on Sunday night.

All of these moves are temporary, and completed in order to raise cash for reinvestment after an expected pullback in the soon to be vastly popular PM markets.

My heart aches.

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A Metaphor, of Sorts…

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Let that header sink in for a minute.   Then read this piece from the Indians.   They’re buying gold too.

This week can bring us a near term peak, and I don’t want you to panic in either direction.  I don’t want you to go insane buying gold and silver you don’t already have next week, as I believe we are perilously close to a dollar bottom.

This evening, we are also very close to $30 an ounce on silver, and we just broke $1,400 an ounce on gold.   These are significant levels that should not be tossed aside on a near term basis.   I think we will burst past these levels, but only temporarily, and then we will retrench.

But don’t get me wrong on the ultimate course here.   The Chinese are buying gold.   And they will buy silver.  And they will buy platinum, too.  And in the process of this accumulation, I posit they will make BIDU look like some bland utility stock before this is all over.

However, I don’t want you all getting off on the wrong foot–  especially since Le Magistrate has given you all the green light on silver surger EXK.   Now is the time to be wary as we are reaching overbought levels on multiple fronts.   There will be a time to gorge oneself on silver miners, but now is the time to sip… sip… sip. 

Like a butterfly at a nectar font, you must sip.    And keep in mind the auto accidents, eh?

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 Many of you may know of Hannukha Harry from his comic forays on the old Saturday Night Live.  Well, a similar number of you may not realize that Harry– in true legend– actually wore a formal stove-pipe hat (see above) when doling out socks and toothbrushes and other sensible gifts to the good Jewish chillens over the eight nights of Hannukha. 

I can confirm this, as I saw Harry himself with mine own goyum eyes coming through the garage door entrance (sensibly) of my friend Benjamin Zimmerman’s house one early December evening in sixth grade, when I’d stayed over — at his parents’ invitation– on the third night of the Festival of Lights.  

It was 7:30 and we’d just laid out the traditional borscht and bagels after Jeopardy, when we saw his trademark stovepipe peeking through the door.    Hannukha Harry only comes at sensible times, as he needs to be in bed before ten.   None of this fakakta post-midnight chimney drop-ins for him, he told us.   That, he explained, is for the meshugganah Sinter Klaus — a distant relative and definitely not glatt kosher. 

One of the gifts Harry bestowed upon us that night was The Tale of Sound Money.  Sure, he was easy with the gelt, but aside from the traditional chocolate coins, he told us never to trust a fully fiat currency system, as it would always let us down.   At the time, he told us, the U.S. dollar had devalued from it’s 1913 (pre-Federal Reserve) value by almost 87% (it’s now closer to 95%), and much of that drop was achieved in the decade since Richard Nixon had given up on gold convertability altogether in the 1971 Bretton Woods abdication.   

Harry told us it was only a matter of time before politicians and their allies in the central banks got so greedy that they’d wreck a fiat currency system designed — with the best of intentions — to promote sound economic trade.   There was just too much conflict of interest for any one central bank or sponsor country to trust another, and worse was that temptation more for the “currency of record”  that was held as the “reserve” in a fake money system. 

No, only an anchored “no cheater” metric could ensure a balance of trade that would not bankrupt the citizenry of the developed world, he admonished, with furrowed mono-brow.

And to emphasize the point of the lesson, Hannukah Harry left us with a Canadian Maple Leaf gold coin a piece (he explained he was originally from Toronto), and then drove out of sight in his ’79 Toyota Corrolla (sensible to the end).

So today, in remembrance of that evening with Hannukah Harry, and on this first night of Hannukah, I have discarded my formal iBC Approved Lincolnesque stovepipe top hat, and replaced it with the traditional Hannukah stovepipe instead (above).  

Happy Hannukah to all of you, and most especially to my Tribal readers and friends.

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As for the market, I think you can see what’s happened to the dollar, and consequently, our vindicated precious metal markets.   Notice also that things in the PM world have started to get a little tired and labored even as the dollar drops?  That’s why I’m not really adding to my precious metal hordes at this late hour, despite the temptation to do so.

In fact, I may even use this short burst to trim some of my laggards like IAG and GSS, and even sell some calls on my workhorses like SLW and ANV.   In the meantime, I make hay whilst the sun shines (and the dollar drops) on such long term holds as ENTR and TC.   I even added to TC ($12.80) and rare earth metal nut-stock AVARF ($3.69)today, as I recorded in The PPT.

These are all late game plays, and I will be trimming in the week ahead almost definitely.  There’s only so much we can expect out of the magnificent moves we’ve experienced in the last months, and I will squeeze what I can out of my bounty.  I will also endeavour, however,  not to get stupid and over-greedy.

Best to you all, Light Festivalists.

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We spent all day tightroping the edge of the knife, with the dollar up over $81.15 at one point, and looking to scratch it’s way back to another resistance level at $82 (see yesterday’s chart).

I am eating samitch after samitch whilst trying to get transactions done in my real-world job before the arrival of Santa and his hated Year-Ending Elves.  These elves are characterised (sic) by their size 15 purple Chuck Taylor sneakers and black leather jackets.   The come to destroy your year end payouts by crashing deals or worse — extending them over the dreaded January 1st barrier, where goblins dwell, stretching their cold emaciated hands out to offer only sauer kraut on cool buns — and no dog, hot or otherwise.

But I won’t bore you with all that trouble.   Suffice it to say I’m busy, and I don’t like what the tragically unhip North Koreans have been doing to my dollar, especially combined with the large selling on strength in the SPY’s that we saw today.

Right now the dollar is banging once again at the $81.00 level, even after it fell off in late day trading today to flirt with the high 80.60’s.   I’m afraid I won’t be quite right until I see it disappear below the waves of $80 for good, which may not be for another week now, given the friskiness the mentally challenged greenback bulls have exhibited here.

So I may actually dump my calls for reals tomorrow, but I may also eat a samitch.   Whatever the case, given today’s selling on strength, if I see the dollar threaten rain again, I will be clearing out of almost everything but my PM positions, with the exception of MON and UPS.  

When it rains we must be ready with the bumbershoot, wot?

Bless you and keep you.

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Call me cynical, but with the Irish Whiskey Soakers getting bailed out via extensive fiscal austerity hand slapping by their European Union betters (bettors?), do you really think this dollar surge is going to last much longer?

I believe the funny money provision is point three or four of “Despotism Made Easy,” which reads like the blueprint for the last four plus years of Hope and Changey recklessness.   I highly recommend the piece for your review — it shouldn’t take you more than ten minutes to read all 14 pages of it.   It explains how keeping people in financial penury by cheapening the paper they use to exchange goods and services (erroneously referred to as “money”) is only one of multiple means toward a targeted despotic end for our once proud Republic.

That need to continue feeding the hungry funny money machine that will keep this economy “going” — at least superficially — will always serve as a millstone around the dollar, no matter it’s near-term reaction to Korean Guttersniping or PIIG-like European snorting.

Since I last left you for a scrumptious giblet delight repast, the dollar has surged in erratic Turkey Gods Trading  all the way to $80.65.  While I was not surprised to see the dollar touch $80.00 on the DXY, I was amazed at how quickly it blew by that number and then almost all the way to $81.00 in subsequent very light trading. 

I just don’t think the dollar has a lot of more runway ahead of it, and it’s not just because of this stealth move in light trading.  It’s also because we’ve retraced the last drop from the highs all the way to the very strong 38.2% Fibonacci Line.   Check it here on the weekly:

That all said, we should gird our loins for a continued move to the $81-$82 region.   It’s not such a stretch from here, and it would be enough to make the recent PM noobs squeal and drop.   Heck, I might even dump some of my December IAG call positions if I see a move to $81.    

Like my pappy always said — be prepared for the worst, so you can take advantage of the best when the time comes.

Best to you all.  

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Just back from the retard-iculously expensive version of Disney’s Broadway Musical — Mary Poppins…

It was really a nice show, and the little Irish girl they’ve got playing Ms. Poppins is top notch.

Highly recommended, despite the seeming incongruity w. red blooded maleness.  Then again, there’s a fully stocked bar at the beautiful little New Amsterdam Theater.

That cannot be discounted.

Neither can be the bizzaro back and forth the market has been throwing us these past two days.  Calloo callay, what can I say?   I can say this:

The North Korean sabre rattling is bullshit.

The Turkey Gods cannot be gainsayed.

Benjamin will shower you with helicopter goods rather than grab you a job in the kleptocracy.   He’s like that.

(That’s it, I have no remonstrances after this)

Happy Thanksgiving to All.   Stay the Course, of course.

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