June 26 - Gold $912.30 - Silver $17.12 up 64 cents
Gold, Silver, And The Shares Take Off As The Perfect Storm Reaches US Shores
"Market intervention is a weapon at the disposal of every central bank." … Jean Claude Trichet
GO GATA! 
The Perfect Storm is approaching, or is upon us now. As ranted here, the Fed announcement yesterday was a farce with the Muppets on Planet Wall Street playing up the "jawboning" talk of the Fed regarding its inflation fight. Course, as we all know, this is ludicrous in the end.
Yes, in days and weeks past, that "talk" turned many on Planet Wall Street dollar bullish, as it might lead to some decisively real Fed action. US Planet GATA folks were not taken in by the rhetoric and Mickey Mouse insinuations, realizing that raising rates, or fighting inflation, would be an economic debacle for US stock and real estate markets.
The problem is, as a result of years of manipulating US financial markets and thwarting the free market process, the Fed is damned if they do, and damned if they don’t. That was the verdict after the Fed announcement … one which picked up dramatic intensity this morning … an Emperor has no clothes assessment…
Is the media and the ECB turning on the Fed?
The WSJ lead editorial calls the current Fed Funds rate a "historic blunder."
In this morning’s Financial Times Jean Claude Trichet links commodity prices to fundamentals of supply and demand as well as an "across the board reallocation of portfolio’s…to commodities in general". Reading between the lines I would assume he understands that investors are simply seeking inflation hedges. In another Financial Times editorial the paper warns "Fed cannot ignore global inflation". "The results for the U.S. would be unpleasant: a currency crash and even higher domestic inflation".
CNBC analysts are openly criticizing the Fed for warning on inflation without doing anything.
Clearly inflation is accelerating worldwide. The mainstream media for the first time is linking it directly to the Federal Debasement Committee. The previously unmentioned currency crisis is in print.
The odds of a worldwide panic out of dollars and into Gold have increased.
This morning the euro is up .70 and a severely undervalued gold is on fire, up some $30+. If history has anything to do with it, The Gold Cartel will cap the price after this first hour of dynamic action. But, then again, perhaps it is time for history to change. The price of gold has been artificially suppressed to the point to where The Gold Cartel can’t do it anymore for any length of time, due to lack of available central bank gold supply to meet surging demand.
Most in the mainstream gold world are hopeless when it comes to understanding their own market. Never have so many known so little. My major expectation has been for investors around the world to flock to gold as a hedge against inflation and capital preservation purposes … while most of the gold world dingbats continue to suck their thumbs. In general, especially in the US, gold has been off the radar screen. The latest failure by the Fed to do anything about inflation, except print more money, may be the "Tipping Point" I keep looking for.
Some pluses and minuses for the day…
*The PM Fix came in at $909.50, which is slightly above the $908+ resistance area, at which The Gold Cartel has turned down the price THREE times recently.
*Gold did manage to make a modest new high after its early opening, but The Gold Cartel showed up to knock it back and cap the action for the rest of the day, closing it $120 off its all-time high. Some things never change.
*At the same time gold gained the most in recent memory and put in one if its most substantial gains over the past decade. AND it did close nicely above that key resistance right above $908.
*With all the commotion about whether specs are responsible for the high price of oil (I don’t think so), the real travesty is silver. With The Gold Cartel having trouble with gold, the silver price managers swung into action. Soon after the Comex open, silver soared to $17.40. As is SO often the case, it was all downhill from thereon in, and it closed 28 cents off its highs and near its lows of the day. What a scandal we have brewing.
*The CRB made another all-time high, leaping 11.13 to 463.27:
nun keine Kohle.