Stewart Thomson: QE & Gold Revaluation!

• Stewart Thomson is correct in his assessment. There will be a gold revaluation! Ie. gold will go up very much higher in price. I am of the opinion that the US treasury will revalue the price of gold ($5,000/oz?) overnight to bail out their bankster buddies. The US treasury is essentially Goldman Sucks! Once, the official revaluation is announced, a force majeure will be declared.
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• The bullion banksters manipulating the price of gold are caught with billions of dollars of naked shorts. Any attempts by them to do a major short covering will cause the price of gold to rocket higher dramatically (US$3500/oz upwards??). With a force majeure, the banksters will be able to cover all their naked shorts at the last traded price (ie. currently at US$1610/oz). The bullion banksters have been shorting the paper gold market while accumulating physical gold. It is a SCAM !
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• I do not believe that the banksters can or will allow the current state of affairs to go on much longer. Because massive quantity of gold are flowing to China and the emerging economies. Once they lose the bulk of their physical gold, they will lose the next stage of the monetary war. Jim Sinclair correctly pointed out that the gold market is at the stage similar to 1979, just before the price explosion upwards. Gold bugs and silver warriors, who are taking an enormous beating, need to just sit tight and chillax!
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  QE & Gold Revaluation! 
  by Stewart Thomson, www.gracelandupdates.com 
  Staring all day long at the supposed “super top” head and shoulders pattern in place on the HUI index is a good way to create fear, but I doubt it will create any lasting wealth. It certainly won’t build any gold mines.
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  Markets are ruled by fundamentals, not charts. The largest institutional liquidity flows occur when key fundamental reports are released.
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  Fundamentally, gold stock investors need to focus on the history of quantitative easing.
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  As the year 1933 began, the great depression was reaching its point of maximum intensity. To view that intensity, please click here now .
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  Although official unemployment was approaching 25% then, the central bank of the United States was growing increasingly reluctant (much like the situation today) to accelerate quantitative easing, despite pressure from the US government.
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  In a 1933 nutshell, the bank wanted to print less money, and the US government wanted more.
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  By November of 1933, a frustrated central bank brought quantitative easing to a complete halt. How did the US government respond to that?
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  The answer is that just two months later, on January 30, 1934, it passed the Gold Reserve Act. The US government revalued gold about 70% higher, and then continued purchasing it aggressively at that price, using printed money.
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  The QE baton was thereby passed from the government T-bond “runner”, to gold bullion!
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  In the mainstream media, a similar halt to quantitative easing is being widely discussed now. You should probably view quantitative easing, targeted at corporate & government debt instruments, as the ultimate central bank conventional weapon.
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  In contrast, gold revaluation and money printing are the nuclear weapons arsenal held by government treasury departments.
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  In a showdown between central banks and governments, governments win. They won in the 1930s depression, and they will win in this super-crisis.
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  The days of Ben Bernanke demanding that President Obama “get the government’s financial house in order” before he ramps up QE more, are coming to a quick ending. The only question is, will it be a painful ending for Chairman Bernanke?
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  His counterpart in Japan, Governor Masaaki Shirakawa, learned the power of government, the hard way. He resigns on March 19. Shinzo Abe essentially slapped the Governor’s face publicly, and is now demanding “performance” from the Bank of Japan.
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  The bank is now claiming it’s not sure what new measures it could take, to expand the balance sheet. I assure you that Shinzo Abe is fully aware of the power he has, to order the Bank of Japan to begin significant purchases of gold with printed money.
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  Gold is going higher, much higher. It’s going higher because government treasury departments are moving away from quantitative easing involving bonds, and towards QE involving gold. The gold bears will be destroyed, and everything they made you afraid of will seem ridiculous, in hindsight. There will be no currency war, but there will be co-ordinated devaluation of all G20 currencies against gold, just like there was in the 1930s.
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  read more!

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