THE DOT - if this turns orange or red be alert

Tuesday, August 3, 2010

Tuesday Brainstorming - part 1

"A story is told of a Jewish man who was riding on the subway reading a
Neo-Nazi newspaper A friend of his, who happened to be riding in the same subway car, noticed this strange phenomenon.

Very upset, he approached the newspaper reader:

"Moshe, have you lost your mind? Why are you reading a Neo-Nazi newspaper?"

Moshe replied:

"I used to read the Jewish newspaper, but what did I find? Anti-Semitism in Europe, terrorism in Israel, Jews disappearing through assimilation and intermarriage, Jews living in poverty. So I switched to the Neo-Nazi newspaper. Now what do I find? Jews own all the banks, Jews control the media, Jews are all rich and powerful, Jews rule the world. The news is so much better!".

1. Above is a perfect sample of reverse psychology packed in a joke as both elements are true but one is packed into a disgraceful frame it is supposed to turn around the truth - special events happening you will not find in regular media

excerpt

Let's run through some of the 'what's UP' data: Starting with what turns out to have been a 'solar quake" - not an Earthquake. A note from the folks who run www.spaceweather.com summed up Sunday's event this way:

"During the early hours of August 1st, NASA's Solar Dynamics Observatory recorded a complex global disturbance on the Earth-facing side of the sun. Most of the sun's northern hemisphere was involved in the event, which included a long-duration C3-class solar flare, a "solar tsunami," and a massive filament eruption. As a result of these blasts, a coronal mass ejection (CME) is heading toward Earth.

No doubt you'll want to be checking the www.spaceweather.com site for the next several days because while initial indications were that this Earth-directed coronal mass ejection would show up tomorrow (Aug. 3) a later PRESTO Alert offered this:

"A frontsided halo CME erupted on August 1 around 08:00 UT, SOHO data was not available at the time but STEREO data show that this event should arrive to the Earth around August 5. It was related to the C3.2 flare from NOAA AR 11092 and to a large filament eruption in the northern solar hemisphere."

Although the science of how the relationship between coronal mass ejections and earthquakes is debatable, it would not surprise me to see a 7.0 to larger (8.2 is where the first dart of the day landed) by the end of this week. Sometimes, when things are looking UP, it's bad.

---

Clif of www.halfpasthuman.com has posted a note that the next "Shape of Things To Come" report (#7) has been delayed indefinitely [Universe intrudes, rudely], but we've gotten enough of a peak at the data to circle August 25th on the calendar for the emergence of a globally shocking event, although it may be a day or two before we figure out (based on simple summation values) which entity this pops out of...and there's much else going on to be concerned with.

That said, the kind of thing - not a prediction, just an example here - of the kind of thing that could be large enough to fill the August 25th release language might be something like an earthquake that damages or 'takes out' the Three Gorges Dam in China.

As you're undoubtedly aware, the peak of water levels behind the dam hit all-time records this past weekend due to recent rains and flooding, and now there are miles of garbage & trash washing toward the dam...and not sure what can be done to prevent it from clogging the works.

Keeping in mind that Three Gorges is the biggest concrete structure in the world and that concrete takes up to 12-years to reach its peak strength, and that we are in this earthquake window which could (wild, unfounded speculation here) cause a quake in the vicinity of the dam which in turn could cause a catastrophic failure...well, that's the kind of event that might show up in Clif's data as a 'global release event' and I don't think I need to tell you how many millions of people in China, not to mention all their manufacturing is Three Gorges dependent.

Standing downstream of Three Gorges and looking UP is not somewhere I'd want to be for a while...

Let's run through some of the 'what's UP' data: Starting with what turns out to have been a 'solar quake" - not an Earthquake. A note from the folks who run www.spaceweather.com summed up Sunday's event this way:

"During the early hours of August 1st, NASA's Solar Dynamics Observatory recorded a complex global disturbance on the Earth-facing side of the sun. Most of the sun's northern hemisphere was involved in the event, which included a long-duration C3-class solar flare, a "solar tsunami," and a massive filament eruption. As a result of these blasts, a coronal mass ejection (CME) is heading toward Earth.

No doubt you'll want to be checking the www.spaceweather.com site for the next several days because while initial indications were that this Earth-directed coronal mass ejection would show up tomorrow (Aug. 3) a later PRESTO Alert offered this:

"A frontsided halo CME erupted on August 1 around 08:00 UT, SOHO data was not available at the time but STEREO data show that this event should arrive to the Earth around August 5. It was related to the C3.2 flare from NOAA AR 11092 and to a large filament eruption in the northern solar hemisphere."

Although the science of how the relationship between coronal mass ejections and earthquakes is debatable, it would not surprise me to see a 7.0 to larger (8.2 is where the first dart of the day landed) by the end of this week. Sometimes, when things are looking UP, it's bad.

---

Clif of www.halfpasthuman.com has posted a note that the next "Shape of Things To Come" report (#7) has been delayed indefinitely [Universe intrudes, rudely], but we've gotten enough of a peak at the data to circle August 25th on the calendar for the emergence of a globally shocking event, although it may be a day or two before we figure out (based on simple summation values) which entity this pops out of...and there's much else going on to be concerned with.

That said, the kind of thing - not a prediction, just an example here - of the kind of thing that could be large enough to fill the August 25th release language might be something like an earthquake that damages or 'takes out' the Three Gorges Dam in China.

As you're undoubtedly aware, the peak of water levels behind the dam hit all-time records this past weekend due to recent rains and flooding, and now there are miles of garbage & trash washing toward the dam...and not sure what can be done to prevent it from clogging the works.

Keeping in mind that Three Gorges is the biggest concrete structure in the world and that concrete takes up to 12-years to reach its peak strength, and that we are in this earthquake window which could (wild, unfounded speculation here) cause a quake in the vicinity of the dam which in turn could cause a catastrophic failure...well, that's the kind of event that might show up in Clif's data as a 'global release event' and I don't think I need to tell you how many millions of people in China, not to mention all their manufacturing is Three Gorges dependent.

Standing downstream of Three Gorges and looking UP is not somewhere I'd want to be for a while...


2. After the Gold hysteria at the high everybody buying Gold coins the correction has been sharp especially for European buyers as they also lost 10% on the Dollar. China entering the Gold game makes it dangerous for the big Gold supression game of Goldman and JP MOrgan with HSBC as they may have trouble fighting China if they decide to corner the market and demand delivery.


excerpt

China Officially Enters The Gold Market: Full Release Of PBoC's Plan To Expand And Develop China's Gold Infrastructure

Tyler Durden's picture




The moment many gold bulls have been waiting for - the Chinese Central Bank has just released a directive informing everyone it is commencing the development of a healthy gold market. In the release (below), the PBoC stressed the need to develop the market to serve the overall situation of China's gold industry, based on improving the competitiveness of China's financial markets, effectively strengthening innovation, and promoting the formation of multi-level market system. The PBoC has asked the Shanghai Gold Exchange, Shanghai Futures Exchange and commercial banks to become actively engaged in developing a national gold market. With China owning a mere 1,064 tonnes of gold (sixth in the world and well behind both France and the GLD ETF in terms of holdings), which represent just 1.6% of its reserve holdings, there is only one way to interpret this borderline revolutionary press release. China has now officially entered the gold market.

More from Bloomberg:

China, the world’s largest gold producer, will support overseas investment plans by “large- scale” bullion companies by backing them financially, the People’s Bank of China said.

Banks should extend credit lines to gold producers and offer loans for overseas acquisitions, the central bank said today in a statement on its website. The government will “support” the companies when they issue corporate bonds and help reduce financing costs, it said, without clarifying what that meant.

This is the first time the Chinese government has singled out bullion producers for financial support in overseas purchases. Global gold mining takeovers this year set a record after Kinross Gold Corp. yesterday agreed to buy Red Back Mining Inc. for about $7.1 billion.

Full PBOC release google-translated from Chinese:

Improve the market system To promote the healthy development of the gold market

Recently, the People's Bank, Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, State Administration of Taxation and the Commission jointly issued the "gold on the market for a number of opinions" (silver ?2010? No. 211), clearly the gold market The general idea of future development and major tasks.

Comments stressed the need to fully understand the gold market to promote the importance of healthy development. That featured the gold market is conducive to further improve the financial market system, improve the competitiveness of financial markets; help to promote industrial structure adjustment and upgrade of gold, the pace of industrial development; help broaden the investment channels to meet the residents of investment demand.

Opinions should effectively clear the gold market for development. Stressed the development of the market to serve the overall situation of China's gold industry, based on improving the competitiveness of our financial markets, effectively strengthening innovation, promote the formation of multi-level market system. Asked the Shanghai Gold Exchange, Shanghai Futures Exchange and commercial banks to do good work related to the gold market.

The view that the gold market to focus on strengthening the service system. Actively promote the gold market trading and disaster recovery and other infrastructure, rich market trading, improve the standard of the gold market determined system, improve storage and transportation system, the gold market, gold market to improve and strengthen the clearing services.

Views clearly, the gold market to further improve the system and related policies. Steady progress in the gold market laws and regulations and other related systems. In tax policy, the Shanghai Gold Exchange and Shanghai Futures Exchange, the gold under the existing provisions of the tax policy research to promote sound investment and commercial bank gold gold business tax policy. Expansion of import and export volume of gold qualified commercial banks to further develop the gold leasing market, widening the supply channels for physical gold. Clearly necessary to improve the gold market currency policy to promote the gold market opening, really good job in the gold market financing.

Comments stressed the need to effectively prevent the risk of the gold market. That relevant departments should earnestly perform their duties, increase communication and coordination, and strengthen supervision of the gold market. Asked commercial banks to increase risk control, and strengthen the relevant system. Required intermediaries to strengthen management of self-discipline, standardize the conduct of its members, to maintain order in the gold market.

Opinions, we must protect the interests of investors. Required to take various forms, enhance investor education and to strengthen the training of employees in the gold market, improve the quality of employees, regulate the behavior of the gold market players.

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