Thought I’d try to do a little Sunday morning catch up on the PMs etc. after wincing yet again as the gold shares were pummeled into submission on Friday. I’ve pretty well given up on trying to pinpoint when the JPMs will finally make their move so, I will watch and wait like many other wrinkled/wrankled gold bugs, holding my positions patiently after being ravaged by over two years of angst and watching the tide go out….knowing that the law of gravity will not be denied even though there is a flotilla of abandoned boats at the high tide line predicting otherwise.

With gold at $1112 today, it appears that the “Chinese put” is holding strong at $1100 although we have seen that brief little dip below it. All the global and US political antics of the last week and ever more shorting gold by JP Morgan continually highlight the fact that the laws of nature are still being spindled by weaker forces. Al Gore and Al Greenspan are still doing the dinner circuit for large fees, burping and belching all the way to the bank on their private jet tours. With the US Gov. mired in Wall St. bank debt even though scandalous bonuses are handed out, the ubiquitous, multitasking President Obama waxes poetic with rhetoric and promises whilst the American taxpayer takes on monstrous debt loads, the likes that have never been seen before. The media is spinning itself into a vortex of no return. Jim Sinclair is more adroit in coining it the management of perception economics (MOPE). Larry Summers goes public and tells the world the way things work. Meanwhile, Larry’s Harvard University, the oldest, most prestigious and formerly wealthiest of all, reveals a $2.5 billion rescue plan and a $2.5 billion derivatives debacle. Wrong-way Larry had grand plans there too but it seems all have forgotten as he has moved on to bigger challenges, still gambling with other people’s money on a much larger scale though.

But now the plot to further rape the taxpayer of the developed democracies of the West is being stepped up a huge notch as Goldman Sachs drools over the prospect of the next big multi $ trillion scam, probably the biggest ever…Cap and Trade carbon credits. I was reminded of the reality of such criminality the other day when a new “manager of carbon credits” trading for Merrill Lynch was interviewed on BNN direct from Copenhagen. He was a very pleasant fellow who gave all the impression that this was just going to be a natural course of development for the markets. No one mentioned the fact that we of the West are facing the largest planned transfer of wealth from the developed countries’ taxpayers to the undeveloped countries, the undemocratic countries like Robert Mugabe’s etc. Then there was this piece in the Rolling Stone:

“Basically, if a company or an industry emits more than the allowed amount of carbon set by the government, it must "trade" and or buy permission from someone else that produces less carbon.

**Another bubble in the making? Exchanges have been set up to handle these transactions, such as the Chicago Climate Exchange (CCX). The CCX bills itself as "North America's only cap -and trade system for all six greenhouse gases, with global affiliates and projects worldwide."

The exchanges would make money on the transactions, but so would major Wall Street institutions, such as Goldman Sachs. What would happen is that companies like Goldman Sachs will create derivatives and options markets from the cap-and-trade permits.

There’s no doubt they know how to make money out of thin air. Look what happened with the mortgage-backed securities. All of a sudden they became one of the biggest moneymakers on Wall Street. And just as suddenly, yet more violently, they became Wall Street’s downfall.

**Al Gore and Goldman Sachs. Of course, this is all conjecture. The bill has to pass the Senate for cap-and-trade emissions to become the next asset bubble on Wall Street. But then again, consider one of the bill’s biggest backers: Al Gore.

Al Gore is an investor in the venture capital group Kleiner Perkins Caufield & Byers. The firm has invested about $1 billion in 40 companies that would benefit from the proposed cap-and-trade legislation.

Gore is also co-founder of Generation Investment Management, which sells carbon offsets. The other founder is former Goldman Sachs partner David Blood. See the connection here?"

The "do gooder" image of Mr. Gore appears a little sooty.”

Does one even dare to speculate that the new cap and trade windfall plan is also an enticement for investors to overlook gold for “something better”?

And the beat goes on as the DOW is supported and interest rates are controlled.

Bill Murphy knows that the big money is in gold bullion and that they are accumulating more at cheaper prices. With gold being a threat to the paper markets, the shorts are perilously close to default as they struggle with a relentless physical appetite from the East. Perhaps a timely few articles in the Financial Times will stem the tide of a thus far ten year PM bull (usually lasts 20 years) as incessant warnings of a “speculative bubble” in gold are yet again featured. Richard Russell ponders the DOW bubble and why some don’t understand “the inherent fundamental worth in gold…” . Here is the latest excerpt via LeMetropole Café from Jim Willie:

FW: contact with strong ties to info sources

huge demands for physical gold are coming from entities holding allocated gold accounts
they have deposits at gold bullion banks
they are showing up unannounced, with full paperwork, demanding gold to be handed over paperwork consists of lists, bars, dates, serial numbers, weights, and smelter hallmark brands
this is a full blown run on the bullion banks
it is unclear whether they only doubt their gold remains in possession, or if fake gold is held
they are being shown the stacks of shiny pretty gold bars, and urged not to take possession but the entities are not convinced their particular own gold bars are there
big clearing houses are owed gold bullion, and the bullion banks do not have it
at the same time, the delivery process has been corrupted big
cash bribes are being offered in bids to settle in cash without delivery in futures contracts in fact, the cash bribes are patterned in a reduction over consecutive days
this gives the impression of the extraordinary period being only a brief segment of time
this is a full blown run on the bullion banks
we are fast entering the FRAMEWORK of divergence between paper gold and physical gold
my source confirmed that the divergence is an end game symptom
geez! we might see a $970 gold price before the system just shuts down
this is a run on the gold banks
did I mention this is a run on the gold banks ??
soon we might not have any prices listed on the gold exchanges
soon we might hear of an important default, from a party using courts and legal staffs
soon the physical gold price will be some average of five known private party large volume traders
this is a run on the gold banks”

This is all scary stuff but most of us are numbed by these warning bulletins as they have appeared to have been too alarmist for so long. We are accustomed to thinking that there is always a middle ground and that the extremes will never materialize. We are in essence set up for a shock. History is replete with examples of such ominous events but we are comfortable in our own complacent little bubbles repressing the fact that the barbarous Hun will never appear at “our door.” In this case forewarned is unarmed and that is probably framed on someone’s wall right beside the Patriot Act.

Is gold in a “speculative bubble”? Will the cabal take it down to $970 before it rockets higher? Does the long term gold chart look enticing here about to take off for $1600? Will the US ban gold possession? Is it oversold and ready to rumble? Will the paper fraudsters finally be overwhelmed by the reality of the demand of unavailable bullion? Is there any gold left in Fort Knox? Do we watch the technicals or the fundamentals? Just how many counterfeit, 400 ounce gold bars are there in the vaults of banks, governments. Funds and individuals….640, 000? Are you going to be prompted to “sell your unwanted gold jewelry for cash”? Is silver the way to go? Is the $US going to strengthen or weaken? Will gold follow or diverge from it? Just how much gold are the Chinese citizens and Gov. buying these days? Are the long funds opaquely positioned in the PM stocks? Will a rush commence into the JPMs on a moment’s notice?

Stop! Stop! I must quit now as there is no end to it all…until there is and end t it all.

Have a relaxing Sunday folks…if you can.