Submitted by: Francis Soyer 11/22/11
On this numerically perfect day 11/22/11 here are the headwinds for bulls: In summary we have a European bank run, massive ECB intervention to prolong the inevitable destruction of the Euro. Massive gold and silver manipulation to send a message to investors that "all is well, nothing to see here."
This week is always about MSM (Main Stream Media) barraging us with the retail picture with the holiday shopping season that will begin in full swing this coming Friday or black Friday. Expect highly sugar coated reports on a failed retail season this year. The reason? we have close to 50 million people here in the U.S. on food stamps, real unemployment of roughly 25% and rising, real inflation year over year of 13% and rising and more layoff announcements from large corporations in the coming months. So we should see excuses like well this year because people are so busy more people will be putting off purchases to the last minute. If you want to get the true holiday shopping picture basically take whatever commentary you here from MSM and apply the exact opposite.
As for precious metals expect a bounce and a significant one next week after options and paper shenanigans have completed via options expiration for December contracts. I will be a buyer today.
In addition to the global fiscal challenges we have threats and rumors of war. Specifically with Iran and Israel. It is increasingly evident that the Israel's Prime Minister Benjamin Netanyahu who has been characterized as a pain in the ass by none other than Barrack "I cannot bear Netanyahu; he's a liar," Sarkozy told Obama in comments overheard by reporters in a separate room who were listening to a simultaneous translation. "You're fed up with him, but I have to deal with him even more often than you," Obama replied, according to the French interpreter.
Henry Blodget: The Run On Europe Begins As Global Investors Head For The Hills: "Until recently, the concern about Europe has been mostly theoretical--a potential train-wreck that would occur if/when the world's lenders decided that the continent's problems extended beyond the basket case known as Greece and cut lending to Europe's "core." Well, that concern is no longer theoretical. It's happening." Business Insider
Harvey Organ: Tomorrow is options expiry on the December contract so the bankers orchestrated an all out assault on the paper gold/silver comex market. This will probably continue until first day notice. As I told you many times, do not play with these crooks as they will fleece you every time as the regulators are in bed with the perpetrators.
Egypt Clashes: 22 Protesters gunned down In Tahrir Square. Protesters vow "We will fight to Death" to end Military Rule of Egypt and throwing out the U.S. puppets who have claimed control of Egypt. Obama Administration sides with the Egyptian military after gunning down protesters.
Mohamed El-Erian: US Economic Conditions Are "Terrifying", Recession Chances Are 50% Zerohedge
Israel and Iran Saber Rattling:
"Time has come to act on Iran" says Israeli Defense Minister Ehud Barak. AFP
An Iran Senior Revolutionary Guard Commander says "Our greatest wish is that they (Israel) commit such a mistake. For some time there has been a hidden energy we hope to expend to consign the enemies of Islam forever to the dustbin of history." AFP
Iran boycotting Middle East nuclear weapons summit: Ali Asghar Soltanieh, Iran's ambassador to the International Atomic Energy Agency, made the announcement after the 35-nation governing board of the IAEA adopted a resolution on Friday rebuking Tehran over its nuclear programme. Reuters
Saudi Prince Warns a military attack on Iran could have catastrophic consequences. "If anything it will only make the Iranians more determined to produce an atomic bomb. It will rally support for the government among the population, and it will not end the program. It will merely delay it if anything." Reuters
U.S. Defense Secretary Leon Panetta says a Strike on Iran could hurt world economy. He went on to comment that the most effective way to deal with Iran is to use diplomatic pressure and sanctions. "Obviously to go beyond that raises our concerns about the unintended consequences that could result, "And I have to tell you, thirdly, there are going to be economic consequences to that, that could impact not just on our economy but the world economy, So those things all need to be considered."
U.S. Election year ups the risk of Israeli attack on Iran: But Fitzpatrick former State Department Officer for nuclear non-proliferation sates that: "When you consider that next year being the U.S. presidential election year, and the dynamics of politics in the United States, this could increase Israel's inclination to take matters into its own hands."
UN Atomic Agency: Issues resolution of "deep and increasing concern" about Iran's nuclear program. AFP
Jerusalem protesters supporting Syria. "Down with imperialism and the conspiracy against Syria." AFP
Pakistan Ambassador to Washington Resigns: McClatchy
One in four Israelis living in Poverty. AFP
And now for a much needed up tick:
