Saturday Charts

oooops.....I forgot the obligatory FIRST!

Awesome Turd! 

Weeeeee

...proves, once again, Turd knows his shit!!! Trader Dan echoes your thoughts--imagine that--in that next week should be all silver, all the time. I just love it.

As a 70 year old grandfather, I sit here "happy" that I have saved every silver coin since my dad handed me a Kennedy Half in 1964 and said the magic words"This is the last of the silver coins for every day change." For the next 3 years, as a wet-behind-the-ears teacher making about $5,000 a year, I went through a role of coins a week and removed the silver. I still have the coins.  I saved them with a tight grasp that not even the Hunt Brothers' frenzy could loosen.... Although as Best Man in a wedding I had to use $28 of my worst Mercury Dimes to buy a new-fangled oven toaster.  Not a good move! Then with silver at $5, not so long ago, I began to buy, still cautiously,for as a retired teacher, extra cash was still hard to find.  Now I sit here "happy" and yet worried sick for my sons and their families. PM price increases cast a shadow over their futures that gets darker as values rise. Dramatic change IS on the way. Those of you who are still young: may God bless. Keep a tight fist. And those like me? I guess try our best to pass intact , what now is a small treasure, on to those most vulnerable who are just now beginning to understand the intricacies of a beautiful, and oh-so scary, world. Oh, and enjoy every minute that we have left with them ... try to teach resilience ... and hope PM's do not soar too high.

Made the mistake of turning on Fox News again today, after repeatedly promising myself to never do it again.  Blah, blah, Romney, blah, blah, blah, Perry, Bachmann, blah, blah, Paul Ryan?

Hey assholes, look at the poll from your own site last week.  Out of 30,000 votes a candidate you didn't mention got over 74%.... Fair and Balanced?

Ron Paul bitchez.

Hey guys,

Ron Paul money bomb now! I know he woke many of us up including myself. The greatest hope for America.

Thanks,

Beardeus

https://secure.ronpaul2012.com/

Because of your analysis and insight, I've made some nice fiat during this run towards $44.

I will buy your next lunch by donating.

Thank you very much.

I'm 25, with 5 siblings and with parents who aren't doing too well after the divorce in 2004. Imagine selling the acrea lot house right before the boom! I stack and play options and haven't sold one piece since I started stacking heavily. Options, in my opinion, are key here for increasing the stack largely. If silver hits between 60 and 70 before January I will have tripled and maybe quadrupled my stack. I'm younger. Have more prospects. Healthier, most likely. Not married yet. No kids (I want them). I am terrified, mostly, about my family's and I future. I supposed I wish I was your age. You probably lived a decent life. Been able to see your kids grow with peace here at home and with minor worries when compared to what is coming. Stacked for decades. Truly, I try my best to live kindly and charitably towards others. I am happy with myself. No bad habits and no majors "oops" thus far. If I die, I believe I will return to peace that only Heaven knows.

Who knows! Whether it's better to be young or old!

Beardeus

- Ron Paul 2012

Hey Old Timer, glad to see you had the foresight to accumulate the silver coins of the realm. When you were accumulating them their purchasing power was not too far away from their face value. Now what I find to be totally criminal in nature is our government's treatment of the so call capital gains you have experienced by simply saving those coins. They are saying that you will have to give the taxman his due because you were prudent and figured out a superior vehicle for saving for the future. Somehow tax gains on people like you on your US legal tender coins should be not applicable, but how can we fight this crime?

3 year chart here:

http://www.flickr.com/photos/29681681@N06/6062969618/

Bottom line, if the HUI's going higher so is oil.  If oil is weak, the HUI will likely correct, comma dammit!

the Gold to WTIC 3 year chart is here:

http://www.flickr.com/photos/29681681@N06/6062450997/

Ta,

I have a quick question, and it may be a dumb one!

Is Abby Joseph Cohen A shill?

I watched the CNBC video of her saying, "a double dip recession is very doubtful". Then I pulled up another interview given in January 2008 predicting that, by years end the Dow would end up 11%. If she's not a shill, she would be a perfect one. That grand motherly, honest looking as the day is long, talking in that calm reassuring voice that everything is going to be ok.     

Someone say PM related? Right then. I see your PM related and raise you a Mickey Fulp audio:

Mercenary Musings Radio: Fear and Panic Equals Opportunity

Your bet.

Reading Tyler's (zerohedge) comment yesterday is really striking me, but I cannot tell if it is b/c I am reinforcing my own perspective or if it has truth.  Guess only time will tell on that one.

Central Bank Policy only works if it is a surprise - Tyler Durden

Read the full story here:

http://financeandeconomics.org/Articles%20archive/2011.08.17%20Bank%20Credit%20Repo.htm

The upcoming expansion of US bank credit

Since the FOMC meeting, there has been a noticeable silence over the Fed’s monetary policy following QE2. But there is some evidence that the funding of government debt at low interest rates will shift to the repo market, rather than a new round of quantitative easing.

The silence on this subject may be partly explained by the monetary focus shifting to Europe. However, it is likely that the Fed has no intention of introducing QE3, given that the expansion of narrow money so far has led only to a degree of price inflation, without much benefit to asset prices. And with the ECB still reluctant to print euros, QE3 would probably collapse the dollar/euro rate and propel gold considerably higher, putting unwelcome strains on the financial system. The Fed also finds itself having dramatically expanded the monetary base for little economic benefit: against all its expectations, the economy is sliding into recession again. Perhaps it is a case of all the people being no longer fooled all of the time with respect to what QE actually is. No, another approach is called for.

To the Keynesian mind the obvious alternative must be to expand bank credit, particularly when there is an accumulation of non-borrowed reserves sitting on the Fed’s balance sheet. The NBRs represent the excess capital owned by the commercial banks, which have not been drawn down for use as the capital base for the expansion of bank credit. They currently stand at about $1.76 trillion while in normal circumstances NBRs would be no more than a few tens of billions. High levels of NBRs reflect the reluctance of banks to lend and bankable borrowers to borrow: they are symptomatic of an economy that refuses to expand.

It is against this background that Ben Bernanke announced at the recent post-FOMC meeting press conference that interest rates would be held at current levels (close to zero) for the next two years. This could be the basis for shifting the funding of government debt from printing raw money to expanding bank credit. The public do not understand the inflationary implications of expanding bank credit as easily as they do that of printing money: switching to bank credit as a funding route for government debt allows the Fed to fool all of us a while longer.

That was a nice post by you Old Timer.  But it’s not the PM price increases that will cast a shadow over your children’s future, it’s the world’s infatuation with fiat currency that will do so.  PMs are just gravitating to a trusted value as fiat currencies gravitate to their intrinsic value (zero).  Like you though, I try to instill values and teachings upon my children.  I do fear what is in store for all of us, but mostly I fear for them.  God, guns and gold… words I live by.

Back in the late 60’s or early 70’s my parents took a bucket of nickels, dimes and quarters to the bank to exchange for cash – about $1K worth of coins.  I cringe when I think of how much of that might have been 90% silver, as it was coins they had accumulated over a long time.  Not many knew back then what was in store.

I have had a bit too much time to think today...

When hearing a speech or an important statement (like may be emanating from Jackson Hole), you can learn several things by listening between and beyond the words. In the academic discipline of rhetoric, we teach that every text reveals three things: 1) the nature of the author,  2) the authors beliefs about the nature of the audience, and 3) the “preferred relationship” between the author and audience.

As I hear Obama and then Bernanke speak, some glaring and troubling differences leap out at me. First, in the spirit of equality and democratic self-rule, Obama makes claims, then tries to support them with reasons. By presenting reasons, backed by some evidence, Obama is deliberating with the audience. He reveals 1) that he values public deliberation, 2) that he respects the American people enough to give reasons in an attempt to persuade, rather than compel, and 3) that he honors the democratic process as part of the appropriate relationship between public official and voters. Recently he claimed that America is still AAA, then he supported this claim by citing Buffet’s opinion, and the opinions of “investors.” Obama had a very weak argument, but the point is that it WAS an argument and he tried to deliberate with us. Obama runs this country according to parliamentary or democratic principles, arguing for his policies, and defending his actions.

The Bernanke, on the other hand, does not argue. He does not cite any supposed experts (like Buffet). He rarely presents evidence. When he has presented charts and graphs, they are oversimplified and extracted from the “beliefs” of the FOMC members. You will notice the repeated phrases of “I believe” and “the committee believes” as key elements of all Fed announcements. He does not deliberate with the audience, he dictates. He only appears to do press conferences as if there is a gun to his back. And his responses are usually vague. He is incredibly uncomfortable with the process of public deliberation. This reveals that 1) the Bernanke does not value the give-and–take of deliberation, 2) that he has little respect for Americans and our preference to hear reasons with evidence to support  claims, and 3) that his preferred relationship with Americans is that of a monarch to the subjects. When the Bernanke speaks, we are supposed to shut up and listen. He does NOT defend his actions.

What troubles me about the Bernanke is that he reflects a worldview of a ruling elite class of people, people whom you do not question and who get what they want. This is the mindset of the nobility and old money of Europe’s monarchial families and their bankers. They dictate, they command, and they expect the sheeple to obey. They are in control whether we like or not. And I believe that this mindset has been preserved behind the scenes by families and clubs right on through the American & French revolutions, as well as the shifts of power in the British Empire away from the king and toward parliamentary rule. This mindset is anti-democratic, anti parliamentary, and does not think for a minute “that all men are created equal.”

For now, these people have to keep their real nature concealed, working behind the curtain to manipulate economies and governments. But if you look, the evidence of who they really are and what they think about us can be found on the front page of the newspaper. Deliberation, or dictation.

Keep stacking!