Dear CIGAs,

Greed will destroy the world. This is beyond outrageous.

Global Derivatives Market Expands to $516 Trillion
By Kabir Chibber

Nov. 22 (Bloomberg) -- The market for derivatives grew at the fastest pace in at least nine years to $516 trillion in the first half of 2007, the Bank for International Settlements said.

Credit-default swaps, contracts designed to protect investors against default and used to speculate on credit quality, led the increase, expanding 49 percent to cover a notional $43 trillion of debt in the six months ended June 30, the BIS said in a report published late yesterday.

Derivatives of debt, currencies, commodities, stocks and interest rates rose 25 percent from the previous six months, the biggest jump since the Basel, Switzerland-based bank began compiling the data. Investors have been turning to credit derivatives as a way to speculate on a growing risk of defaults amid record U.S. mortgage foreclosures.

``The pace of increase in the credit segment outstripped the rises in other risk categories,'' Christian Upper, a BIS analyst in Basel, wrote in the report. Credit-default swaps are ``the dominant instrument,'' accounting for 88 percent of credit derivatives, the BIS said.

The money at risk through credit-default swaps increased 145 percent from last year to $721 billion, the report said. The amount at stake in the entire derivatives market is $11.1 trillion, according to the BIS, which was formed in 1930 to monitor financial markets and regulate banks.

More…

The US dollar is in a free fall and has been since the USDX was above 120. Now it is headed to .7200, which could easily occur next week.

Face it, this is a meltdown and an implosion of the foundation of the world of finance called the credit market. The implication to business and life itself is dire.

Since we live in an “alarmless” society, a body economic that has no pain sense, it is still not obvious to the many. It is to you.

THIS IS IT!

Gold is headed to $1,050 faster than you can imagine. Expect a battle there, but only for a short period. After $1,050 gold will rocket to $1,650.

The US dollar at .7200 has always been only my first downside objective.

We are blessed to know this, why this is happening, what measures should be taken and most importantly what to avoid.

Don’t ship your gold and silver to some depository that you have no idea about. Do not assume because some gold guy suggests it, that it has to be good. Get out of the Internet financial entities. Be sure wherever you are that you get your paper certificate. Scams are popping up all over the gold field. Be very careful of those you do not know.

The precious metal shares will certainly perform, definitely those that have not invited the hedge fund short sellers to run large riskless short positions in their company by taking money from hedge funds. Hedge funds are not philanthropic. They demanded huge option and warrant positions plus deep discounts and prompt movement to freed and tradable shares.

This allowed them to be short without risk, and the hedge fund managers still are running those positions in many PM companies. That weakness has moved across the board, holding back the group. That weakness has very little life left in itself as gold running at $1,050 is going to bring new interest into the field, keying off technical buying and thence short covering.

Not only did the gold and silver mining geniuses screw up in short of gold and silver derivatives, but precious metals companies without any alternative took money from hedge funds (the devils) in the form of: