Market expects gold to rise - well that means according to Bizarro World Economics 101 - they will smash gold on news of QE2.

What I see unfolding is: QE2 is being sold as GGGGRREEAAATTTT for the stock market and the reason that the stock market has been unnaturally levitating for the past 2 months. This is not true at all.....it is the PPT…. But this perception has been instilled effectively by the propaganda machine that this is so.

Everyone expects 500 billion QE2 tomorrow. Fed will come in low on amount even though it is open ended and will be followed by much more and bigger amounts shortly. In addition, they are printing and have been printing since 2008 under the table.

Well this will cause a knee jerk reaction to the stock market. Stock Market down ????.....well then gold must be smashed. This unnatural pattern must be re-enforced in the investors head that there is no option to run to gold.

Meanwhile, the takedown on gold will be a result of spin that QE2 was less than expected and therefore this is good for the dollar and bad for gold.... hence the gold takedown.

They are running out of room here though because of COMEX inventory lies, the ETF lies, the CTFC lies and the general lie lies. I see the takedown failing within hours/days. Volatile days ahead though!!!! Hold on to your hats !!!.... or get blown away. Do not exit positions.... but prepare for quite a roller coaster ride. Keep some powder dry if possible to buy on dips. Other than that - if you think that they have done all this for the elections and will stop now, then you are naive. The major shopping season is directly ahead and they want to keep all of the greedy locusts consuming. They will only stop when they have no other choice !!!

Remember that Wendy Gramm (Enron and whose husband Phil Gramm served up our country on a platter to Wall Street by repealing Glassman-Steagal) ran the CTFC - Need I say more???? This is an agency set up to aid and abet the criminals on Wall Street and so is the SEC. Surrounded by dirty rotten scoundrels in all directions. But Wall Street is directed by two emotions: Greed and Fear. We have had 40 years of Greed with Fear only popping its head up periodically. Look for Fear to establish itself firmly as main emotion going forward and make up for lost time.

The truthful economic reaction to QE2 - should be horror and dollar abandonment on the opening of pandoras box !!!! ….. but no…… as always ….. it will be used to smash gold