This is from the King World News Blog May 20, 2011
With gold and silver near the $1,500 and $35 area respectively, the Godfather of newsletter writers Richard Russell had this to say, “GOLD — The chart below shows daily gold over the last two years. During that period gold has respected its 150-day moving average, which is the blue line that you see on the chart. Over the last two years gold has tested its 150-day MA six times, and each time gold has held above the 150-day MA — and then rallied to new highs.”
“The latest action shows gold holding well ABOVE its 150-day MA and consolidating. Frankly, I thought gold was in for another test of its 150-day MA, but I may have been too pessimistic. Gold does not seem to want to test its MA (so far) this time, and that’s a bullish factor. As I write this morning June gold is up over 19 points, and there seems to be urgent buying in gold.
We now know that there has been a dramatic reversal in world central bank thinking, and instead of selling gold as they have been doing, world central banks, on balance, are buying gold. We know that China, Russian and many Asian countries are urgently increasing their gold-to-reserves ratio.
Rising gold is also putting pressure on the silver shorts. I’ve heard that there is now more silver shorted on the COMEX than is available in physical silver.
A few weeks ago, shorting silver was considered a “no-brainer.” In this business, if you run with the crowd, you’re liable to get trampled to death.
An increasingly large percentage of America’s population is approaching “retirement age.”…As I’ve said before, the Federal Reserve was created secretly by bankers. The Fed is owned by bankers, and it was created for banks and bankers. Bonuses at the big banks are currently larger than ever as are dividends. In the meantime, Americans of retirement age have run head first into the brick wall of zero returns.
…So from now on, you can expect a veritable avalanche of “good times talk” out of Washington. The employment figures will be skewed to the administration’s advantage, the inflation figures will be a lie, the benefit that the government has bestowed upon us will be exaggerated. And the Bin Laden victory will be touted to the high heavens. Hey, “at last we’re safe.”
But more powerful than anything else will be the trend of the stock market. If the bull market dies here or even if it corrects severely, the pressure will fall heavily on the administration and the Congress.
For this reason, I expect the rest of the year 2011 to be “wild and wooly.” I expect government lies and propaganda to reach a crescendo. I’m bracing myself for a parade of surprises. Politicians love power and perks. But to keep those two, they must also keep their jobs. Therefore, coming up, I expect an extreme in dirty politics and internecine political battles. The year 2011 should wind up as a banner year for political and economic propaganda, all lies and bull-shit.”