Well, the bad news is upon us but you wouldn’t know it judging by the “strength” of the $US overnight and this morning. Earnings reports for the second quarter are on deck. I’ll be anxious to see how the banks fudge the numbers as I think it will be quite imaginative. What’s this? The $US is up and everything else is down amidst global talk of it being demoted from the world’s reserve currency to second class citizen in a new basket of currencies including the Ruble, Yuan and gold or gold certificates. So, the plan of attack by the Rubin/Summers/Bernanke/Geithner crew … just As Obama meets with Medvedev and Putin...is to show the world that the US is still King and the US dollar is “strong”. Of course such bluff and bravado ring hollow to the leaders of BRIC countries and the ME. So the boys on Wall St. are given their marching orders today and quick fix adjustments are made to the magic black box algorithm programs by the whizz kids once again. At the same time, “Quantitative Easing” is whipped up to a new level of frenzy while dam near everything is shorted against long the dollar. Short term gain for long term crime.

Over at Bloomberg we get treated to another patronizing Arthur Levitt “moment” interview justifying Goldman Sachs’ recent bonus and salary announcements and expressing just what a wonderful job these guys have done and how wonderfully successful they have been under duress. Over on BNN the nice man from S&P comforts us all with the projection of an 11% increase in profits by 2010. All is well with the US Admin. MOPE (management of perception) scheme inspired by one Mr. Larry Summers esquire and heartily supported by the muppets on the media and anyone in the US who doesn’t want to suffer unintended shunning from “the establishment”. Excuse me while I gag. The whole show is beyond sanity now. Do these idiots really think they can continue to bully the new bullies with a much smaller bat in the other guys ballpark? Their arrogance defies analysis. I think they really believe they are that powerful. How tragically sad for the American people and the world in general as the dire consequences of their cumulative and collective stupidity mount in direct proportion to their ongoing sham.

Whoops! What’s this? Looks like the spin will have to be ratcheted up yet another notch…and it’s only early on a Monday morning.

“July 6, 2009

MK (usagold.com 06July2009; 6:06)

Bank of Korea to buy gold for first time in 11 years

“The Bank of Korea has not purchased gold for 11 years but is expected to go on a gold buying spree, as the world’s central banks have bought the commodity since the global economic erupted in September last year. . . .Chang Min, the head of the Korea Institute of Finance’s macroeconomic research division who worked at the central bank until late last year, said, ‘The central bank has long considered several alternatives such as buying gold to diversify its foreign exchange reserve portfolio, which is heavily focused on dollars. It needs to secure more gold to diversify its investment.’”

Link

MK Comment: Not sure about the credibility of this report, but it has something of an official ring. If true, the Bank of Korea will join a group of central banks, mostly Asian, looking to buy gold in size. As I pointed out in my recent essay titled “Dragon’s Hoard,” the threat of central bank gold selling is being met by the threat of central bank gold buying.

July 5, 2009

MK (usagold.com 05July2009; 17:04)

Batra says gold could go “very high” as crisis, recession heat up in July

This interview of economist Ravi Batra was originally aired in May. I thought it a good time to bring it forward because Batra says his cycle studies show the recession and financial crisis reasserting itself this month. If Batra is right and we go into another round of crisis by the end of July, it could make for bad news for stocks and bonds, and move gold out of the current range — all of which could make for an interesting summer “doldrums” period. He strongly advocates gold ownership. I think you will appreciate this interview by Thom Hartman.

Audio Link”