WOPR Sells. Turd Buys.

In a surprising development <sarc on>, The Regime and The Republocrats are on track to reach a "grand compromise" that raises the debt ceiling by about $3T (buys enough time to put this issue away until after the next election). The plan also has no immediate spending cuts or tax increases (why piss off your voters before the next election?).

W.O.P.R. is running wild tonight and selling PMs. The Cartel is anxiously anticipating a cascade in gold big enough to spur some margin hikes. Will they get it? Who knows? Who cares? The United States of America, originator/printer of the world's reserve currency, just decided to increase its national debt by another 20%! I will buy what WOPR is selling. I'll take delivery of it and stack it with the rest. If you have any doubts tonight, the chart below is the only one that matters. Rest well knowing that you are doing all you can to protect yourself from the heinous criminals in Washington. More in the a.m. TF

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10:25 EDT UPDATE:

Man, oh man. This is definitely something that you do not want to be messing with today.

paper_8-1amgold1.jpg

This is crazy and it will rip your head off if you play with it. If you must trade, do so with as much time in your pocket as possible. For example, the only options I own expire near Thanksgiving,

As stated above, all of the hoopla regarding the "compromise" needs to be ignored. All that matters is that the world's largest debtor nation (and provider of the reserve currency) has just allowed itself to go another 20% deeper into debt. Over the next two years! This is what the end of The Great Keynesian Experiment looks like. As we drop deeper into the "funnel", debts rise exponentially and the "coin" spins faster and faster until the bottom simply drops out. Again, let WOPR and the day traders sell their PMs. Take advantage of today's "sale" and add to your stack.  TF

paper_8-1amgold.jpgpaper_8-1amsilv.jpg

p.s. If you need some comic relief to get through the day, I give you this. From the always-brilliant Motley Fool site:

http://www.fool.com/investing/general/2011/07/25/the-arrogance-of-investing-in-gold.aspx?source=isesitlnk0000001&mrr=1.00

214 Comments

Tesla's picture

Thanks Turd!

Hope you had a good weekend man.

Turd Ferguson's picture

Thanks

MODERATOR

Thanks, Tesla. Mrs F and I were celebrating another anniversary.

lostinspace's picture

what a shocker

I always open kitco on Sundays at 3 PST and expect a big selloff. Thanks for another buying opportunity EE, I really appreciate it.  I'm planning to buy as much as possible before Tuesday debt ceiling is reached.  

Tesla's picture

Sweet!

2.jpg

mouser's picture

Yep you got er right

2.5 trillion $  in cuts over 10 years, seems far too little and way too late. Wont touch their deficits unless they get control over military spending and banksters paychecks, ( loopholes allow them to pay little in tax)

Gold dropped from a record as President Barack Obama said that U.S. lawmakers reached a deal to increase the nation’s debt limit and cut the federal deficit, averting a default tomorrow and eroding demand for haven assets.

Gold for immediate delivery lost as much as 1.3 percent to $1,607.45 an ounce, and traded at $1,613.35 at 9:45 a.m. in Singapore. Spot gold, which reached an all-time high of $1,632.80 on July 29, advanced 8.5 percent last month on concern that sovereign-debt crises in the U.S. and Europe may derail the global economic recovery.

“Gold reached a record because U.S. politicians didn’t seem to be getting anywhere with their negotiations and now that they have an agreement, gold will be knocked back a little,” said Steven Zhu, operations manager at Yinjian Futures Co.

Republicans and Democrats may vote today on the measure, which would raise the $14.3 trillion debt ceiling through 2012, cut spending by about $1 trillion and call for enactment of a law shaving a further $1.5 trillion from long-term debt by 2021. Lawmakers should “do the right thing,” Obama said from the White House late on July 31 in Washington.

“We all knew the U.S. politicians would reach a deal by Aug. 2,” Zhu said from Shanghai. “However, problems still exist within the economies of the U.S. and Europe and that will keep gold’s uptrend intact.”

Gold for December delivery in New York shed as much as 1.4 percent to $1,608.20 after rallying to an all-time high of $1,637.50 on July 29. Exchange-traded product holdings climbed for a fifth day on July 29, reaching a record 2,152.222 metric tons, Bloomberg data show.

Cash silver fell as much as 1.2 percent to $39.41 an ounce. Spot platinum gained 0.9 percent to $1,796.13 an ounce, while palladium rose 0.6 percent to $836 an ounce.

Of note Asia is running green so far tonite, so i suspect we may see green markets , no matter where the metals head, and despite the abhorrent state of the economy in the US and Europe.

Downgrade coming on US debt, this deal solved  nada.

Puck T. Smith's picture

Time to ride the roller

Time to ride the roller coaster.

rckymtn's picture

Want to add some gold/silver

Want to add some gold/silver soon.  Is tonight a good time to buy?  Already rumblings of several groups in the Senate and House that don't think this.  What happens if it doesn't pass? 

I figured a deal would be announced tonight and they would try to hammer both gold/silver at the same time.  I'm thinking though by morning if lots of the dems and/or gop are bashing this and saying they won't vote for it, that the metals will take off again. 

So wondering if tonight is the time to buy some like 1/2 or 100% of my available PM cash./

indosil's picture

sell off

I guess there will be more of the Fire Sale once Indian Markets open up.Also,when the US markets open up today.Good time to BTFD.Seems like the SilverHorse is all saddled up to romp home!!!!!!

Strongsidejedi's picture

hmmm

YESSSSS I like it!

1580 or lower please!

indosil's picture

Once Upon A time

Seems like we are gonna see Silver in the 30's for a very short time...and then just like that it will be Hisssstttoooorryyy...good bedtime stories it will make for my Grandkids....Once upon a time We had Silver In the 30's....BTFD

indosil's picture

Happy Anniversary Turd

Happy Anniversary Turd..seems ur gift comes in the form of silver sale.....lol...like u always say...BTFD!!!!!!1

rckymtn's picture

what time do Indian markets

what time do Indian markets open?

Rui's picture

"2.5 trillion $ in cuts over 10 years"

HOHOHO. You gotta love these gimmicks outta D.C. When the spin is taken out we can see that it actually means they'd spend up all the rosey cut in next 10 years right before the coming election. So what to do come 2013? Perhaps it's time to spend the projected cut in 2020-30 decade? A pure scam and rocket fuel for the metlas going forward.

Colonel Angus's picture

Decided to BTFD

Got lots of nice gold coins plus some silver to keep those company. Nobody is bidding tonight, which is just fine by me. Please keep it up. I have some silver and gold eagles that were getting lonely.

Happy anniversary to Turd and Mrs. F. It takes a special woman to put up with us bugs. Of course being able to show large profits helps them out. Sure worked on my wife...

ScottJ's picture

Ron Paul - Unmatched Intellect (in Politics)

Colonel Angus's picture

For Rui and others

Have you looked back at the Bush budgets? There was going to be a surplus in 2012. So no need to raise the debt ceiling, since we'll be bringing in more money than we spend. Oh wait...you mean we didn't get a 4.5% yoy increase in GDP? And we had to have QE2? And we're still spending like drunken sailors? Uh, nevermind on that surplus thingy then...

Eman Laer's picture

WOPR

Do I need to watch War Games to understand this reference?  I'm pretty sure I saw it a few decades ago but I don't get it. 

murphy's picture

@ Eric re Dilbert

Thanks for the hat tip regarding the Dilbert post. But the truth is, the credit belongs to Mrs. Murphette. I never look at most of the paper, let alone the funnies. When she showed it to me I had to post it for all my new friends in Turdville.

I wanted to paste it to the comment section like you did but it didn't work. Can you, or someone  enlighten me on how it's done?

Took the day off and then celebrated the in-laws 61st anniversary. Good to get away from the ugly news world for a while. Been playing catch up on the site since then.  Don't think I missed much today regarding the Republocrat Show from DC. I have seen this political theater act touring the country for many years.

LaMachinna's picture

LaMachinna's perspective...

Titus Andronicus's picture

Margin hikes again?

Just saw something posted by SGS.  It seems his broker just increased margin requirements for silver.

The last series of margin hikes (last May) was preceded by margin hikes by some brokers.

I'm still long paper silver, but people may want to pay close attention to this.

Here's what SGS posted:

http://silvergoldsilver.blogspot.com/2011/07/here-we-go-again-ib-raised-silver.html

sweet cheeses's picture

Check please

As expected, debt ceiling raised. Won't make a dent to fix anything. Same sh*t, different day, EPIC FAIL. The U.S. Fiatsco will continue to decline in value, just as planned.

From Zero Hedge:

One Banana

Irene's picture

To Murphy and Eric

Hey Murphy,

I didn't see your earlier post re: Dilbert, but kudos and 10 hat tips to you.  Really, one of the more memorable Dilberts which everybody on this board should see.

And Eric, thanks for posting it here.  How did you do it, you sneaky thing.  ;)

LaMachinna's picture

Happy Anniversary to

you and the Mrs. Turd!  cheeky

bigmark99's picture

buying

Buying more silver tomorrow, adding to my stack.

H8Fiat's picture

Depressed

Depressed that US representatives didn't have courage to do the right thing for the country and or future generations.  Why saddle them with the debt of their forefathers.  Funny how I wish for sanity to be brought about by massive foreign selling of bonds, revalue of the Yuan, and move to gold standard in other currencies.  Burn this den of thieves and vipers down.

Although living in the US would be harsh, if our Gov. doesn't have the guts, hopefully other countries will.

Metal Monkey's picture

F' N A!!!

Big ole f'n A! to buying the dip.  But BE VERY CAREFUL not to buy the Falling KNIFE like I did Sunday Nite May 1st!!!

\  wait for it to settle or buy in increments at lower levels the farther it goes down.!!!!!

Metal Monkey's picture

ps.

PS.

It is terribly depressing to know my children will grow up in the USA and not know what a great country this used to be and how great it could have been!!!   

Why does everyone go to Washington have to sell out?

murphy's picture

@ Metal

They are not selling out. They are doing the job they were hired to do, by the people that give them the money to run their campaigns.

rckymtn's picture

I think this is more about

I think this is more about the fact that if they don't raise the debt ceiling, things would easily implode from the austerity cuts.  So why take the pain on your watch when it can happen on someone elses.  The problem is, one of these days likely very soon, there will be no more road to kick the can down. 

I'm sure this bill will pass but I hope that the Tea Party stays strong like they have been so far.  Then we need to kick out even more of the trash/liberals/rinos/ in 2012 along with obama.

Even though I know this will be very painful, I honestly hope we implode soon.  That is the only way to end this ponzi scheme we are currently in.   Hopefully we are still a free country after that happens which is really my only concern about a collapse. 

wholetthedogsout's picture

Dedicated to our lovely representatives in Washington.

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