Behold! A couple of articles y'all might want to read (he said, employing gross understatement): http://www.huffingtonpost.com:80/l-randall-wray/new-yorks-us-bankruptcy-c_b_824167.html The other is at www.thebubblebubble.com/european-housing-bubble/

The first explains that the company the banks set up to speed up bundling mortgages for securitization, Mortgage Registration Electronic Services (MERS), was found by a US bankruptcy judge to have bungled transferring mortgages. Bottom line is that papers proving the mortgages have disappeared, and "no mortgage paper, no mortgage, no foreclosure." This proves my contention that the reason the banks entered into the $25 bn agreement with state attorneys general was so they could perfect their bad title into good title by re-writing the mortgages. "Please don' t'row me in dat brier patch, B'rer AGs!" Likewise it means that millions of people with underwater mortgages might find themselves the owners of a house, for free, with no mortgage, & a plethora of banks will be sucking wind like a worn out pump with all gaskets blown.

The second concerns that world wide real estate bubble y'all thought had burst. Think again! Article outlines European countries -- most of 'em -- where the bubbles were blown as big or bigger as the US but have NOT YET burst. This does not exactly argue that "happy days are here again."

Finally, this is not exactly the speech I gave last Friday in Somerville, but contains the same ideas in greater detail. You will find "Restoring Freedom in Tennessee" at http://farmersandfreeholders.org/2011/06/27/restoring-freedom-in-tennessee/

TODAY'S MARKETS:

Just like an old mangy tomcat, the US dollar index has, it seems, nine lives. I counted it dead on Friday because its body had been thrown over the fence of 78.36. Yet today, here it came, clawing up onto the porch again, ears all chewed up, patches of fur missing, one eye swollen shut, lacking a couple of front fangs, but still going. Dollar index rose today 17.8 basis points to 78.59, up 0.23% & above the morale-killing 78.50 mark -- that is, it kills morale when the dollar falls below that.

So all said, the mangy & scrofulous dollar remains in the game. A break below 78.35 would send it hurtling toward its 200 day moving average, now 76.97.

Reality paid a visit to the Euro today, and slapped it down 0.35% to 1.3400. Might be that Friday's intraday high, 1.3486, marked the rally's top, but who knows with currencies? Parsing currencies is like trying to shoot skeet off the back of a bass boat in a windstorm with the government sneaking blanks into your shotgun shells.

Yen continues to recover from its slide. Closed up 0.66% today at 124.15c/Y100 (Y80.55/US$1). So bad overbought its cousins & in-laws are overbought. Bound to rally some.

Silver & gold spake today with forkéd tongue, but we've learned that these ambiguities often resolve in higher prices next day. But judge for yourselves:

Gold pared off $1.50 to settle at $1,773.60 while silver gained 18.6c to 3552.40 after a 3559c high and defending 3500c at a 3499c low. None of this tells us much.

Gold was blocked today at $1,779.19, & has made lower tops since Thursday. I'm included to write this off as a normal shallow correction after that big gain to Thursday's high. For gold that $1,760 level is key support because it was at $1,760 that it leapt up to $1,780 in one day (Wednesday last).

Looking at the longer term chart, I can picture that gold is making a minor correction in its uptrend, may fall to $1,750 or $1,745 for a Final Kiss Good-bye at the downtrend line from the September top, and from thence will roar past your eyes like the Blue Angels. A drop below $1,735 would disappoint & gainsay that expectation.

Silver resembleth not gold. It has created a resistance ceiling at 3560 since last Thursday, & keeps on bumping against that. Today it backed off to 3500c, and conceivably it might back off to 3480c. Yet my eyes keep screaming into my ears that silver feels strong as a garlic-milkshake. (How's that for synesthesia-chocked metaphors & similes?) This ceiling pattern reminds me of the same figure silver traced out at 3450c -- before it smashed that barrier.

Early this week may show silver & gold slightly lower as they digest last week's new highs, but they have lost none of their enthusiasm. This ought to prove another week of higher closes at the last.

I seldom ask y'all for a favor, but I'm going to now. There's a bill in the Tennessee General Assembly's House of Representatives, House Bill 3202 by Nicely, that would remove the sales tax from gold, silver, & platinum coins and bullion. It's now in the House Commerce Committee. You can find members at www.capitol.tn.gov/house/committees/commerce.html If you live in Tennessee, would you write your representatives & these folks supporting passage of that bill? You can email them, and there's a hurry, because on Wednesday, 29 February the committed will hold a hearing on the bill. Thanks in advance.

On 27 February 1933 the Reichstag, Germany's parliament building in Berlin, was set afire. The Nazis blamed the Communists for the fire, & used it to justify seizing more power & suppressing more rights. Wow. I'm glad stuff like that doesn't happen in America. What? What Patriot Act?

On 27 February 1864 the Confederate government opened another prisoner of war camp, Camp Sumter, near Andersonville, Georgia. Post-war Red Republican propaganda made out the suffering of US war prisoners at Andersonville to be intentional, ignoring that by law they were provided with the same rations as Confederate soldiers in the field, that the Lincoln government refused all offers of prisoner exchange, refused to allow medications for prisoners through its blockades, and even used Confederate prisoners as human shields in battle. Andersonville's commander, a Swiss named Henry Wirtz, was made the scapegoat for the US government's refusal to aid its POWs & legally lynched shortly after the war. Meanwhile, nothing is said about the thousands of Southern prisoners who were intentionally starved and frozen to death by the Lincoln government.

Argentum et aurum comparanda sunt —
Silver and gold must be bought.

— Franklin Sanders, The Moneychanger

Copyright Notice

© 2015 Little Mountain Corporation, d.b.a. The Moneychanger. All rights reserved. May not be republished in any form, including electronically, without our express permission.

Warnings and Disclaimers

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary trend is up, targeting 16:1 gold/silver ratio or $195.66; stock's primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 16 ounces of silver. US$ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

Be advised and warned:

• Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short-term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.
• NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.
• NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.
• NOR do I recommend buying gold and silver on margin or with debt.
• What DO I recommend? Physical gold and silver coins and bars in your own hands. For additional information, please see our Ten Commandments for Buying Gold and Silver.
• One final warning: NEVER insert a 747 Jumbo Jet up your nose.

Explanation of Terms

The US DOLLAR INDEX is the average exchange rate for the US dollar against the Euro, Yen, Pound sterling, Canadian Dollar, Swiss Franc, and Swedish Krona, weighted for each country's trade with the US. It gives a general measure of the US dollar's performance against all other currencies.

The DOW IN GOLD DOLLARS measures the Dow Jones Industrial Average in gold dollars (0.048375 troy oz. by law). The DiG$ depicts the Primary (20 year) Trend of stocks against gold. When the DiG$ is dropping, gold is gaining value against stocks in a trend that should last 15-20 years. The DiG$'s chart is identical to the Dow in ounces of gold, but gives us one unvarying measure all the way back to 1896. Because it shows the primary trend ("tide") of gold against stocks, for investors it is the single most important financial chart in the world today. Since its August 1999 high at G$925.42 (44.8 ounces), the DiG$ has trended down, targeting a G$80-G$20 (4-1 oz. of gold will buy the whole Dow).

The DOW IN SILVER OUNCES shows how many ounces of silver are needed to buy the entire Dow. The DiSoz is trending down with a target of under 36 ounces.

The GOLD/SILVER RATIO is the gold price divided by the silver price, and shows how many ounces of silver it takes to buy one ounce of gold. The Ratio shows us the Primary (20 year) Trend of gold's value against silver. When the Ratio's trend is dropping, silver is gaining value against gold. This trend targets a gold/silver ratio of 16 ounces of silver to one of gold within the next 5-10 years. That implies that silver will massively, vastly outperform gold before this bull market ends. When both metals are rallying, the ratio often (but not always) drops, confirming the rally.

Other Important Information

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