The Approved Solution

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You know in this job, its hard not to become incredibly cynical and even (dare I say it?) “conspiracy minded.”  But when you see some of the actions of the people in power, both at the political and financial levers (Congress/POTUS and the Fed, along with the NY Banking Axis), one wants to cry out in frustration.

It’s a helpless feeling, like being a powerful swimmer encumbered by a straight jacket. Let me tell you this straight — anyone in business, no matter their political distinction, can tell you what makes businesses work and what encumbers them.

What makes businesses work, what makes businesses hire is the ability to plan. It’s a simple as that. Successful people in business are both smart and economically (not necessarily politically) conservative. If they are given a set of parameters to work with, no matter how onerous — they will eventually figure out a way to make money around them.

It’s only when the parameters are largely unknown — thanks to a tidal wave of government interference like we’ve seen in succession with Obamacare and the Dodd-Frank “reforms” recently enacted– that business people are left without the ability to plan for the future, and are thus frozen. Stephen L. Carter wrote a great article about this in Bloomberg recently, you should read it.

So now we are reaping the result of a frozen private sector and a gradually starving public sector (there will be no new government jobs out of the states, either, now that Stimulus is done).  So what’s the answer from Ben & Co?

Destroy the Dollar, one more time. 

This is why I’m still in PM’s despite their hinky motions over the last couple of days.   Maybe we get a dollar bounce at the lows again, I don’t know.   But they are killing it today, and who can blame them? 

What choice have they, under current circumstances?

My best to you all — and please, don’t just give up… Get involved!  You may not like Paul Ryan’s “Path to Prosperity,” but dammit all, at least he’s offering solutions.   

C’mon intelligent people of the world,  we need to put our heads together now, our countr(ies) need us.

Best to you all.
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There’s malfeasance afoot, I think, and I urge you to take caution.

Gold just dropped precipitously — $25 since this morning– without the dollar turning much at all.   Yesterday afternoon, there was a similar sell down in the silver markets– flash mob style —  even as physical COMEX inventories are reported at five year lows as of late May. (Hat tip to Jesse’s Cafe Americain).

What this tells me is that there are some big players throwing large boulders out there in these markets, trying to scare some people out of positions for various reasons — both optical and monetary.  The Fed has a big incentive to knock down the POG and POS, both as a cat’s paw for their inflationary plans and as a warning to Congress to “raise that debt ceiling or else.”

Moreover, the current physical readings portend that myriad shorts in silver especially could be in deep trouble despite the five-time increase in margin requirement by the COMEX last month.  That means small players could get stomped on in this elephant dance, and I am recommending everyone get to at least 50% cash here.  

If we are really stepping into a D-wave event, this will get us started on getting all the way back to bare core positions (about 25-30%  is where I like to hang personally, but you all need to decide on your own risk levels).  If this is just a head fake, we may have some opportunities to pick off some slower moving miners at deeper discounts.

Be well and be careful.

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[youtube:http://www.youtube.com/watch?v=9ouKJgoaTCY 450 300] The Latest From Australia
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Do not miss even one second of it, mothaflickas.

I’ve sold off a little more silver and a tiny bit of gold today. Mostly in my disappointments… like AAU. No, don’t worry, I still have a tonne, even as my gut tells me that it’s time to pack my bags for the summer and move down the road to a small shack from which I can barter conch meat, small beer and crab legs for shiny bits of tinsel I’ve stolen from the gulls.

That’s right, I’ve become an itinerant beach comber and summer lacrosse Dad, rather than a procurer of fine equities for you and yours. Oh, I’ll come up with a couple of dolorous pronouncements here and there, for sure. If I can get this thing to post without ghosts.

This week I will be accumulating cash. That’s what my gut is telling me to do, although gosh knows, betting against my gut has won me much lucre in the past as well. I just don’t like this dollar action, however. I was hoping for a downswoop and all I’m getting is a sag, and gold seems to be becoming sympathetic.

I don’t like that. Not one bit. So for now I’m going to give some up to the stop sign sun, and await better squid-shark oceans.

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Very odd… there is an embedded “html” tag in the “HTML” view of the text box… Could this be what is vexing me? (testing…)

Ah! success. Now, for step 2, I shall try to switch back to “visual view” and see if I can “update” from that screen… (testing)

Brilliant… now for step three

I shall attempt to insert a silly photo, via html code screen… (switching) okay here goes:

Okay… that took two trys… I had to actually retype the stuff after step two to reclaim. One thing I noticed, Jeremy, is that I no longer get the “allowance” query when I hit the “IMG” button on the HTML dashboard. It just automatically allows me to post the url in the appropriate box. Hmmmm…

Okay, here’s the final test… I am going to attempt to insert a graphic chart from my saved stockcharts files… wish me luck, as this has been the biggest difficulty thus far…

No go on the first try… attempting again….

It went up top I think? Hold on, let’s try to put it in the proper place… I’ll use AG for this one.. the daily:

That may have looked like it worked, but it really didn’t… I had to cut and paste the code to move it below… I promise I will call Jeremy and get this all figured out this weekend folks…
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On other real world functional stuff… someone asked about QRM on the previous post. I would not worry too much about it. Looks like it tested the 50 day again today, but no serious damage. I’m still holding it.

Same goes for my PM hordes. I know Gary the Mountain is preaching another doom move but I don’t see it yet… not with the dollar getting crushed again.

I had an interesting day today… doing what I like to do best… meeting successful business owners and hearing their individual Horatio Alger stories. Last one of the day was near tragic. Sometimes these guys forget they are mortal, and it can get dicey as a result. More on that story this weekend…
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Happy Birthday to me (and Fly)
Happy Birthday to me (and Fly)
Happy Birthday to me-heee
(and Fly)
I’m bombed off my kneeeees.
(oh my)
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In an early birthday present, silver was off the hook today. I did not sell AG at the high today, or at any price. Nor did I sell EXK, SLW, PAAS, SSRI, CDE, HL, MVG, or even AGQ or SLV.
I did not sell them Sam I am, I did not sell those blocks of HAM. Here’s why… the plan continues generate nice returns:

Meanwhile, when I see silver start to take a convincing turn like it did today, I want to be in my prime movers to take advantage – which have been EXK and AG this cycle. Of the two, while EXK had a slightly better day (at over 9%), it was AG (over 8.5%) that today moved above it’s 20 and 50-day EMA’s. EXK will likely do so tomorrow, as it experienced a similar move to AG on strong volume. The AG chart is extremely pretty right now…

And don’t get any ideas… SLW is still the king of my silver portfolio. However, these two are important for those of us who can be nimble with the trade finger. They should be played smaller, however, to accommodate their greater risk profile. My best to you.

Again I try to post for the second time this night. I am not making small talk when I say that if I cannot fix whatever prevents me from posting from my house, I will have to forego posting at all. Unlike the M. Le Docteur, I do not have the luxury of posting during the day, and sometimess I don’t even have the time to visit. If I cannot get this thing figured out, I will have to resign my post.