All:

Well, tomorrow should be an interesting day for ol' KBX. Whoever has been trying to hold the stock down must be starting to realize that the buying power of some newer players essentially has them on the ropes. Another 900,000 share day (That was Friday on the American side only, another 550,000 shares changed hands on the TSX) without resistance and we could see this thing go up 30-50 cents in a day. The shorts (let's call them) must know that, so they will have to launch a counter-offensive either tomorrow or, perhaps, the following day. Expect to see all the stops pulled out in this effort. If Kimber breaks decisively above 123-125 and holds there, it's off to the races, and these guys probably know that.

Also, if these guys are as short as I think they are, a short squeeze could easily ensue in a panic and push us all up pretty far pretty fast. Fortunately for all of us, Kimber is a relatively small market cap stock. The significance of this is that it's not going to break anybody, i.e. any Canadian investment bank that is short a few million shares. A short squeeze in Kimber stock isn't like the collapse of the Comex. It's just a bad bet that these guys are going to have to pay on. It might cost them 3 or 4 million dollars, and, more significantly to their thinking right now, several people their jobs, but its not going to break the bank and cause the parent organization to file for bankruptcy.

Also, I've been ruminating quite a bit about the ultimate purpose of a hyperinflationary crisis and the subsequent deflationary collapse, I mean from a more cosmic point of view.

The purpose is to crush the middle class. The middle class must get wiped out. It's the way it has always happened. The question this time is simply, how will it happen?

In the 30's it was the banks collapsing. The middle class had all their money in the banks, and the banks failed. That was the end of the story. There seems to be a problem this time, i.e. FDIC insurance. What we need to do, in order the think clearly about this is to simply ignore the FDIC insurance. That's the red herring, the static, so to speak, designed to throw us off course. (and perhaps also to throw us into mixing our metaphors)

If the ultimate result MUST be the destruction of the middle class, i.e. the non-gold holding class, then FDIC insurance is irrelevant. The loss of wealth this time will not be bank deposits. It will be the loss of IRA's and 401-K's. And the only way for that to happen is 1. A massive stock market collapse 2. Massive hyperinflation or some combination of both. The 401K's and IRA's are the huge historical anomaly that must disappear.

It hit me as I was listening to Eric's interview of Rob McEwen this weekend. In 1929, 10% of households owned stocks. In 2010, 90% of households own stocks. This is a perfect setup. There's no conspiracy! This is just the way it has to happen. All that imaginary money has to disappear, and all the wealth has to flow back to those who are holding precious metals or real estate or tangible things. It's an imaginary game that needs to come to an end. And it is coming to an end.

Sure some people are going to be in the right place at the right time to clean up big, and maybe it will look like a big conspiracy, carefully planned. Baloney. God, or for those less inclined towards anthropomorphic imagery, the Ultimate Consciousness of the Universe or the Creative Power of all Natural Functioning Systems or Author of Natural Law, is the force planning all this, and He will bless whomever He chooses. Recall, if you will, Ecclesiastes 2: 26 To the man who pleases him, God gives wisdom, knowledge and happiness, but to the sinner he gives the task of gathering and storing up wealth to hand it over to the one who pleases God.

Also, Imagine the situation in this way:

Three classes of people:

The Poor: Small in number, no money, unknowing

The Middle Class: Large in number, lots of money, unknowing

The Rich: Small in number, lots of money, knowing

Who's the likely target here? Knowledge really is power.

Sure there will be some poor with gold coins that Grandpa left them, and there will be some rich who have no idea what the heck is going on as the whole thing unfolds. But still, by and large, the middle class is the big, lazy, uninformed target. They will pay the price for their lack of understanding. All that time spent riding around on ATV's, watching Nascar and playing fantasy football and Halo are about to pay off.

Well, that's enough for tonight. I could go into the whole Jeffrey Christian thing, but I'm sure you all have read plenty on that already. Needless to say, I have always been somewhat suspicious of Jeffrey Christian. I've never really trusted anything he's said on Jim's show. In fact, I trust him about as far as I can throw him. I've also found, during my short life, that name calling is in the purview of the weak and fearful and not the strong and assured. I think Christian basically made a fool out of himself, and I can't believe that Jim Puplava allowed it to happen on his show. Bull