Smoke Signals

The McAlpine finances. Overheard in Pratt’s Club last week…much discussion on the nature of Ali McAlpine’s net worth prior to the start of his National Tithes Collectathon. What on earth could this mean, we ask ourselves here in Slogger’s Roost.

Goldfinger points up not down, for once. Standard procedure on the NYSE these days is for gold to plummet $10-30 at opening time. Last Friday, it climbed the North Face of the graph to go from $1729-1753.

Keep an eye out for what gold does over the next few days. My own view is that it shot up on fears of complete eurozone catastrophe. I think it will at best steady off, and at worst drop down again. But it does show those who are awake what gold will do when the SHTF in Europe.

Uncle Benghazi’s Rice. In what looks set to become the opening nomination punch-up of President Obama’s second term, Susan Rice is likely to be asked by Congress why she leapt with such alacrity to the conclusion that the 9/11 US Benghazi Embassy compound fiasco was a spontaneous reaction to an obscure anti-Islamist video. The main reason they’ll ask the question is because little or none of the evidence supports her opinion…which, spookily, aligns very closely with Obama’s face-saving view.

Why Hillary and Bill Clinton so swiftly reversed out of this debate remains a mystery. But I understand that some hitherto missing pieces of the jigsaw might come to light….from unlikely sources.


24 thoughts on “Smoke Signals

  1. Don’t worry about gold. It’s your insurance policy. It is locked in a range from $1580 to $1800. All the indications are that it will blow through the top line sooner rather than later and we should have a 2 in front of the price in Q1. Silver should head for $40 and then close to $50 in the same period.

    2013 and 2014 could be the blow off years for the metals. At some point the gold shares will have a giant catch up.

    As for Ms Rice, she’s a lightweight equal opportunity employee but will pass the Senate confirmation process, screwball McSame notwithstanding.


  2. ‘fears of complete eurozone catastrophe’
    As much as we wish for one, it ain’t gonna happen, well not one that isn’t carefully planned, and, along with that, those that need to know, will, and, gold will follow it’s carefully planned path. These scumbags have it all under control, no matter how it appears in the MSM.


  3. @kfc1404
    I think that you are right – there is a lot of very careful choreography going on in both the EU (Etats Uni) and the EU – they seem to be too well synchronized for things to be accidental. At the same time Sod’s Law is that a Black Swan event could disturb their best laid plans and all go horribly awry far faster than anyone expects.


  4. And 2013/14 will be dire years for bonds and currencies.
    I note the usual suspects tried to force down the paper price of silver just before the Friday close. Bless. They need to do something, at $34 they must be hurting on those silver shorts.


  5. Susan Rice looks to have been setup by the Clintons – its a fair guess that she was given the talking points by the state department in the first place just so she could sally forth down poo-poo creek paddle-less. And anyway, would Hillary really want to be succeeded by another woman? And one she isn’t sleeping with either? As for Susan herself… Well, she seems like a hideous, lying, arrogant windbag. Perfect for the job.


  6. Yes, indeed that is entirely true but, they have dealt admirably with the Black Swans so far….I think we are on a carefully choreographed route and contingency plans are in place. As we have seen previously, the rule of law is no stumbling block, they have, in fact laid the foundations to do whatever they choose whenever they choose to do it. There is no one to stop them. They have, as it is now, no natural predator. We are soooo screwed.


  7. @Ian W.’Black Swan’ events have a history of coming from the ME,and this time may be no different.Assad is fighting and slowly losing a civil war,which is now in Damascus.Israel has,at best,won a 0-0 result v Gaza.Iran is descending into economic chaos,and you can plot the US naval deployment by ZH.The crude oil price is no longer the issue,as China’s economic miracle turns out to be a sham(cf, iron ore prices).Barry has been reelected,hence is now yesterday’s man,so my money is on Netyanhu,the Israeli striker,going for broke with Iran.OAH may make $100 on gold,the inevitable splintering of the Euro will take place,as Spain declares itself bankrupt(go short Santander) ,and writing puts in Tesco will finance some decent claret for Christmas.


  8. I don’t know about that, kfc. All politicians always believe they are in complete control, yet history tells us that sooner or later they all lose it.

    WW1 was, believe it or not, an accident. It is perfectly clear looking at events at the time none of the countries actually wanted or intended war. It was a combination of garbled diplomacy, incoherent governance and political posturing culminating in sabre rattling where some idiot shouted ‘fire’ at the wrong moment. WW2 was similarly unintended. Hitler had no intention of waging a European war, he was convinced that France and Britain would not take the military option, mainly because they had spent the last decade insisting that they wouldn’t and proving it by not responding to the German arms build-up. Indeed, rather like the case with the Falklands, he was as good as told reclaiming German interests lost after WW1 was not seen as problematical.

    Something will break in the EU situation, perhaps a financial collapse they don’t catch in time, a sudden political crisis, maybe a club-med coup or simply a politician or two suddenly hung from a lamp post. It may not even be European, the BRICS are faltering, another global recession imminent, maybe the US Fed will be forced to reveal the secrets of Fort Knox and their bubble will pop first, who knows?. It is probably a ten year enterprise to stabilise Europe and the Euro and I very much doubt they can hold it together for that long.

    Besides, it’s not long before 21/12/12 now, maybe all our problems will end (or start).


  9. I find it interesting that it would seem a lot of people are ‘pinning’ a great amount of hope on 21/12/12…Are we that desperate? Yes, it would seem that we are. What a pickle we are all in.


  10. Well, it’s certainly quiet comparing to 999 CE. At those times many folks left their jobs, left their homes and gave away all they had. A boom year for monasteries. Pilgrims headed east to meet the Lord at Jerusalem; buildings left unrepaired; crops were left unplanted; and criminals were set free from jails. Others have been eating and drinking to death – not to mention humping like rabbits :-)


  11. Susan Rice could have availed herself to a classified briefing before she trotted out to all the TV networks with the White House talking points. Obama knew the facts when he spoke days later and said that the motivation for the attacks was a spontaneous demonstration in response to the film about Muhammad.
    The fact is……. this event was observed in real time and seen as a terrorist attack by our national security team.
    A aircraft carrier commander and the head of Africa command ended their careers around the time of the raid. The rumor is they were acting outside of the chain of command and attempting a rescue of the CIA personnel in Benghazi………… Will this all blow over?……..stay tuned.


  12. I’ve lost count of the number of times these ‘End of the World’ believers have borrowed chairs from our church hall for their last gathering to witness Armageddon only to return them the following day.


  13. Doesn’t an increase in the gold price indicate a $ problem? As gold went up so did the £/$ and €/$, The ECB marks to market which the FED doesn’t, isn’t a rise in gold beneficial to the EU(€)?


    In 1988, a young economist out of Harvard, Larry Summers wrote a verbose paper entitled “Gibson’s Paradox and the Gold Standard.”
    In the paper, Summers explains that when the real interest rate is positive, the gold price will not increase and even decrease as parties will prefer fiat currency that increases in purchasing power and pays interest. However, when the real interest rate is negative, the price of gold will increase as parties will seek to preserve their purchasing power. Gold serves as “the canary in the coal mine” for all fiat currencies. When the price of gold rises, this is the prime signal that the currency is being debased. Therefore, when the US government embarked on a lengthy period of negative interest rates, they were aware that the price of gold must be suppressed.
    Summers mentor Robert Rubin had been using gold in the carry trade while at Goldman Sachs, with the Japanese yen, which had been paying interest rates up to 14% for many years.
    Rubin of course was Secretary of the Treasury prior to Summers and had a strong dollar policy which was maintained by suppressing the gold price. Summers continued this practice and so have successive Secretary’s.
    This could not last forever and now there is a US shortage of gold bullion. Note; the US Treasury, the Fed and it agents at the Wall St banks have combined in this manoeouver for many years, they are all short gold and the fiat US dollar is about to be exposed as an’ Emperor without clothes. The faith in fiat is bust.
    To re-iterate an old saying .’At all times & all places, gold is money and a true reflecton of value’.


  15. Careful you’re not proved prophetic by the price dipping to $297 or thereabouts. As for Ms Rice, I’m not sure it’s quite as you say.


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