China is the 8th Largest Holder of Gold

From 2003 to April 2009 China quietly increased its gold reserves by 75%. Today China is the 8th largest holder of Gold in the world, holding over 34 million ounces. Hmmm.

The USD has been in decline over 38 years, when Nixon took the dollar off the Gold Standard. Being not so smart, I notice the USD decline even more since 2002. Hmmm again. As the dollar goes down, historically Gold goes up. For example, the USD has declined 35% since 2002; gold has risen 290%.
Right now the U.S. is the largest debtor nation in the world. It's a fact that as a debts and deficits continue to skyrocket, and they will, that downward pressure will continue.

At www.bluechipoptions.com we teach how we invest in Gold and other precious commodities.

The issue with debtor mentality, no matter how it occurs (idiocy like Bush, or "roll the dice on the whole game") like Obama, is that the USD loses value. And this means that we as Americans have to have something that is going up in value. There is always a bubble in some form, even in the worst of times.

Contrarians believe the U.S. Treasury bill is in effect the new greatest bubble we've created, on debt, and over time the populace (Joe the Trader) will begin to understand that a world currency, or that "something is going too right." We're building our next new bubble in U.S. Government bonds.

Remember, stocks do not always outperform bonds.

My point to this is with the vast increase we've seen in the markets recently, we've also seen our credit card companies increasing the cost of borrowing dramatically, and this will longer term cut back the credit card spender. The average American has over $8000 in revolving credit card debt, yet only 56% of Americans even have a credit card. There are many false facts I could find in researching average debt, but it took me to:
1. declining home equity debt availability
2. housing declines, despite all the happy stuff that "it's getting better", continue
3. when Americans want stuff they are going to have to actually pay for it.

So, with that, read this article, which even leads with my slimey friends Goldman Sachs, and how they may have helped lead our "economic recovery". Do not trust false facts.

http://www.bloomberg.com/apps/news?pid=20601087&sid=auGWGWlnohNo

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At opening the Sept 490C was available as the market dipped,as low as 1.95 and sold to 3.20 by 10.11 a.m. This is how fast a trade is taking place. The buyer had to put a buy below prior day close in, prior to opening,based on negative futures, and immediately sell at r1. Smart traders took new entry to our new buy put, the Sept 475 Put, which was bought at 9.50 to 10.50 on 9/1 and sold to 13.00 by 11.35 a.m. for two profitable sales before noon.

And, our Sept440 Put hit 6.50, also profitable,by 11.30 a.m.
All three signals were sold profitably before noon, as the market dropped 175 points.

By 12 noon the following had taken place:

1. Dow hit highs of 9598, after an opening dip that allowed a call buy, and sale within 45 minutes
2. Dow hit theoretical Lows of 9276 before 11.30 a.m., allowing both open puts to be profitable.

Consolidation took place, and may at this time, be all there is, before more upside. It's too soon to
tell, but it is a resilient market

And by the end of the sell off, we hit a 9252 theoretical Dow low, the Sept460P hit tops of 8.50, and the Sept475P hit tops of 16.80, both beyond our recommended top.
And to think for the smart, fast trader, calls were profitable too.

And the talking heads now are telling us how bad the economy is. It's so fun to watch. I have the ticket for 2012: Cheney/Palin. It could end the world, and we would not have to worry about anything :)