Gold And Silver Are Precious Financial Assets …. But The Faith Of Jesus Christ Is What Is Necessary

I … Physical gold and silver are precious financial assets

As I look at the chart of Gold, $GOLD, it could easily fall back to the Friday October 1, 2010 price of $1,319.

Silver, $SLV, could easily fall back to $24. Over the years I’ve read reports of price manipulation by various means at various brokerages. These include alleged spoof sell orders, that is orders that are placed then later cancelled. I’ve also read articles that say there are many paper shorts. Such things, which if true, and if prosecuted could lead to limit up jumps in silver for days on end. I’ve never invested in either physical or brokerage orders of silver.

I’m invested in gold bullion.

In my financial market report for November 16, 2010 I document that a global competitive deflationary currency war is underway at the hands of the bond traders and currency traders.

The currency traders continued with their global currency war on the world’s central bankers, which they commenced November 5, 2010, when the bond vigilantes called the Interest Rate on the US 30 Year Government Bond, $TYX, higher above 4.0%, on concern that the US Federal Reserve’s Quantitative Easing constitutes monetization of debt.

The currency traders sold the commodity currencies heavily. These included the Australian Dollar, FXA, and the South African Rand, SZR, and the Canadian Dollar, FXC, which caused a major sell off in base metals, DBB. Gold, GLD, help up well.

The commodity currency sell off caused International Basic Materials, DBN, China Materials, CHIM, Copper Miners, COPX, Metal Manufacturers, XME, Steel Manufacturers, SLX and coal producers, KOL, to all fall lower.

At one time the financial stocks had great value and paid good dividends, and this formerly protected them from falling lower. Currently many of the coal stocks, pay good dividends. Will a good dividend rate, protect them from a fast fall lower? 

The 4.4% fall seen China Materials, CHIM, suggests that the China basic material stocks have seen a lot of dollar carry trade and yen carry trade investment that came with the onset of the anticipation of Quantative Easing 2. Now that QE 2 is in, the investment is starting to flow out. Also, China announced that it will take action to curb inflation in the cost of basic materials, this gave emphasis to the sell off in China Materials, CHIM.

The 3.2% fall seen in the chart of International Basic Materials, DBN, leads me to question, will the basic materials bear the brunt of the bear market that is getting underway?

The chart of Commodities, DBC, shows a 3% fall.

One of the most carry trade invested commodities has been Timber, CUT.  Its fall today signals the end of an era in speculative carry trade investing in commodities. While Oil, $WTIC, will rise and fall in the future, Timber will continually be going lower, that is being driven lower by falling currencies. The spread between Timber and Oil will be interesting to observe over the years. I expect Timber to fall quite rapidly compared to Oil.

One could see the fall coming in base metals, DBB; these first popped higher from a consolidation triangle, on QE 2 Anticipation, and now have collapsed lower as the QE 2 cool aid has worn off.

The fall in Oil, $WTIC, caused Exxon Mobil, XOM, to fall parabolically lower. The sell off in commodities, DBC, stimulated a sell off in the agricultural stocks, MOO.

A sell off of emerging market currencies, CEW, unwound carry trade investment in emerging  market countries.

European stocks fell lower on sovereign debt worries. A falling Euro, FXE, took European shares, VGK, European Financials, EUFN, Ireland, EIRL, Spain, EWP, and Italy, EWI, Europe Small Cap Dividends, DFE, lower.

Asia currencies were sold, resulting in a sell off in Asia, China, and Japan Shares.

The ongoing sell off in the worlds currencies, DBV, strengthened the world-wide stock sell off that commenced on November 5, 2010.

Debt deflation continued in sovereign debt. Bond vigilantes continued calling interest rates higher globally. And as currency traders sold the world’s currencies, International Government Bonds, BWX, and Emerging Market Bonds, EMB, fell sharply lower.

Risk appetite has turned to risk aversion causing carry trade investment disinvestment in Junk bonds, JNK.

An unwinding of carry trade investment globally is documented by the developed market currencies, DBV, and the emerging market currencies, CEW, falling more than the Yen, FXY.

With World Government Debt, BWX, and World Stocks, ACWI, falling lower, carry trade investment is starting to come out of the HUI Precious Metal Stocks, ^HUI, traded by the ETF, GDX, and the junior gold mining shares, GDXJ.

Gold mining stocks are not the same things as physical gold; gold stocks are bought and sold as a speculative investment; this is readily seen in the chart of the junior gold mining shares, GDXJ, relative to gold, GLD, GDXJ:GLD, turning lower.

Research documents that CONSISTENTLY the precious metal mining shares turn down, when the US sovereign debt turns lower. US Government debt and the precious metal mining shares ALWAYS turn lower together. This is seen in today’s fall in the HUI relative to US 30 Year bonds in the futures market, $HUI:$USB.

Stocks in the precious metal mining category include, Keegan Resources, KGN, Great Basin Gold, GBG, Nevsun Resources, NSU, Allied Nevada Goldfield, ANV, Golden Star Resources, GSS, Aurizon Mines, AZK and ASA, ASA.

Inverse Volatility, XXV, has now fallen lower. S&P Volatility, VXZ, has turned up withe the US Dollar, $USD, suggesting that an unwinding of Dollar carry trades is underway.

The bond traders have seized control of both long-term interest rates, such as the Interest Rate on The US 30 Year Government Bond, $TYX, and short term rates that were formerly under the control of the central bankers. Joe Weisenthal reports Mortgage Rates Just Hit A Four-Month High; his chart shows an explosive jump in mortgage rates in just the last few days.

The currency traders have established themselves as the world’s sovereign governing power; their rule over the world governments began on November 5, 2010 when the Interest rate on the US Government Bond, $TYX, sustained above 4%, and as they sold the major currencies, DBV, and emerging market currencies, CEW, which called the US Dollar, $USD,  for now higher. 

I appreciate those who have given their time to document Quantitative Easing. Their reports are both  awakening and sobering.  

Gary Dorsch, Editor, Global Money Trends Crossing The Rubicon Into The World Of QE-2

Chris Martenson, QE II Has Lit the Fuse

Doug Noland, Prudent Bear, The Official Start Of QE 2

Greg Hunter, USA Watchdog, Insanity Or Ingenious?

Paul J. Lim, New York Times, A Calmer Market? Not For Long Bonds

Mary Williams Walsh, New York Times, Municipal Bond Market Shudders

II … But the Faith of Jesus Christ is what is necessary.

In 1999, I called upon the Name of the Lord and was saved. My nature changed, I became a child of God, and became a Hebrew as well, meaning one from the other side.

I now live by the faith of the Son of God. I died. Christ now lives in me. I’ve had the most wonderful exchange — I traded out the old self, and got Jesus Christ as the new self.

Jesus Christ set me from many illusions, such as that I am a sovereign individual. I am not. Rather, I am part of the Body of Christ.

I hear many say I have faith in Jesus Christ. I turn away from such, as I have the faith of Jesus Christ. It’s not my faith. My faith would be a disaster. His faith gives and sustains live.

I also hear many say I have chosen Him. I turn away from these as well, as I was chosen in Christ from before the foundation of  the world, that is before the dawn of creation, God elected me to have faith in Him, and at the appointed time, I believed. This is all part of the wonderful doctrine of The Election of Grace.

Yes, God has a means of saving people, it is called The Election of Grace; it’s the most wonderful thing.

I serve a most gracious God. He did not have to tell me the future, but he appointed the Lord’s best friend, the Apostle John, to live out his last years as an exile on the Isle of Patmos.

The Apostle Johns had a dream. Now I ask you, can one rely upon a purported dream? Well, if one lives by the faith of the Son of God, then yes, one can and should rely upon the Apostles Dream! 

The Apostle John wrote the details of the dream in about the year 90 AD. His writings are what is called The Revelation of Jesus Christ, as it reveals or uncovers the dawning of the person of Jesus and His kingdom at the end of this age.

This book foretells those things which must shortly come to pass, Revelation 1:1, meaning a series of events that once they begin, will fall quickly into place, one right after the other, like dominoes fall in a line.

Götterdämmerung,  is a word used by Ambrose Evans Pritchard in a recent Telegraph article, and is an apt word to describe the apparent fatal wound to the world’s financial, economic and political systems which is coming soon, as bond traders continue calling interest rates higher, such as the US mortgage rates, and the Interest Rate on the US Government 30 Year US Treasury bond; and as currency traders continue a global sell off of the world’s currencies, as both conduct a war for sovereignty against the world central bankers and world leaders.

God was gracious to provide Revelation 13:3, which reveals that the soon coming apparent fatal wound to the world’s economic and political systems will be healed.

While I have some limited amount of physical gold, which will be of some financial help in the days ahead, God was indeed gracious to provide me with the Faith of Jesus Christ to help me cope with the austere days that are ahead. 

Perhaps one might enjoy reading my article: Götterdämmerung Is About To Happen, It Is Foretold In Bible Prophecy 


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