This evening's update from uncle Jimmy:

My Dear Extended Family,

I am allowed to be tired at times so here are two briefs.

Gold:

All the funds required to meet state and federal insolvencies will be produced here and there. Since the insolvencies are coming fast, so is QE to infinity with lots of spin and MOPE.

ESL comments: Interesting to hear from the GodFather of Gold (GOG) this evening about the imminence of USA QE where he expects injection tactics to follow the same paths as the current Euro QE program I observed and warned about earlier this month (see thread view) ie. it'll come in bits and pieces until the (soveriegn and/or bank) debt beast breaks it's chains. Tactics have worked brilliantly thus far in that the MOPE (all is well Joe Sixpack - no need for concern here) accompanying a whack of smaller Euro injections allowed the Cartel to sit on PMs at a time when they should be firing on all cylinders. Add US "Measured" QE (MQE) to the mix is all that's required to ignite Alf's 3 of 3 scenario. At any rate this is the backdrop that convinced me last month to begin loading up on key PM shares versus bullion as i expect shares to outperform bullion in the next upleg. We have a big heads up on the HFs this time (who're waiting too late this time for amssive QE) so use this intellogence to your advantage!:

"Cartel's buddies have to be very concerned about controlling Gold's imminent threat of a breakout now having adopted a campaign of MOPE front running additional QE infusions into Europe. Significant infusions ala 2x LTROs of Euro$600 Million in the past 6 months are verbotten. Gotta keep a lid on them Golden vigilante alarm bells & the accelerating rate of folks cashing out of the European banks. Welcome to the new improved world of smaller but increasingly frequent injections"