The End Is Near: Gold breaks through $1200. Why this is a big deal!

The headline is ominous and I hope it scares the hell out of you. This is a dark day for the world economy as gold has broken through the magic $1200 per troy ounce barrier. Why is this bad? A lot of institutionalized investors, perhaps using your money, have been shorting the price of gold. These institutionalized investors had set a stop limit at $1200, which means that they are cutting their losses and bailing on the short. Now they have to cover. If your money was in the hands of any firms that were shorting gold, you had better check with your bookie, er I mean your financial adviser, as you may have taken a royal ass-whoopin’.

If any of these firms can not cover their shorts, they will either have to declare bankruptcy or get bailed out. Either scenario will mean that your investment has probably been flushed down the toilet. All that is left for you to do is to wipe your butt with some Warren Buffet toilet paper – the US dollar.

Now some of these guys may have seen that their stop-limit was going to be reached and reset the stop-limit to a higher number, hoping the price dropped.  That is not going to happen. It can’t because the dollar is trash.

You see, these financial terrorists have been able to ‘fix’ the market in the past by selling off gold for dollars. In effect they were flooding the market with gold and the market would react by a fall in the price of gold. But that trick is not working anymore. Recently the IMF sold off 200 tonnes of gold to India hoping that the price would fall. Instead there was a rise, and for all intents and purposes the gold market has not looked back.

There is a reason that the US Mint is no longer supplying gold and silver American Eagles. Their supply is running short. The demand for precious metals is so high now that the plays of the financial terrorists no longer has an effect.

This is no different than playing roulette at a casino, hence the Max Keiser coined phrase  “Casino Gulag Economy”. The days ahead will be very interesting. How many firms will collapse? How many firms will seek another bailout? This is a full-frontal attack on humanity. Prepare thyself. The end is near!

Related posts:

1. On The Edge with Max Keiser: 11-09-09
2. US Mint Ceases Silver Eagle Production due to high demand and other Friday morning ramblings
3. Where did Your Retirement Savings Go?
4. FRAUD -The Movie: One Nation Under Fraud
5. On The Edge with Max Keiser: 06-11-09