No Rest For Turd
It's been a long day and a long week. I did not intend to add more content tonight...that is until I took a few minutes to read Harvey. There, I found two very important items that I knew couldn't wait till morning.
First, read this:
http://www.gata.org/node/10746
One of the things we failed to notice prior to the unexpected beatdown in gold in September was that lease rates had moved significantly into negative territory prior to the attack. One of the articles we referenced back then was this one, linked below:
http://ftalphaville.ft.com/blog/2011/09/14/677021/why-gold-forward-rate-inversion-is-important/
Anyway, here's the point. At -0.5%, lease rates are again near the level they were when gold was savagely attacked last September. One could say that the current, European dollar funding shortage is to blame. Maybe it is and maybe this is just a temporary phenomenon that will not impact the short-term price of gold. However, maybe its a precursor of another big selloff. The banks on the other end of the lease can use the borrowed gold to flood the market with sell orders. I took a bit of grief for not accurately predicting and warning of the September massacre. If gold crashes again over the next few days, don't say you weren't warned this time.
Next, a great piece from Egon von Greyerz of Matterhorn Asset Management. Like most of us, I was first exposed to Egon through ZH. Clearly, the guy gets it. Please take time to read this in its entirety.
DEUS EX MACHINA
by Egon von Greyerz – December 2011
With most of the world’s major economies as well as the financial system bankrupt, there is only one solution that can save the world economy. Like in the Greek tragedies, Deus ex Machina is now the only way that the world can avoid a total economic collapse. This would involve God being lowered down onto the world stage and miraculously saving the plot.
For those few who believe in this, may God bless them. But since this is a very unlikely solution most people will instead rely on governments and central banks to save us. But how can anyone possibly believe that totally incompetent and clueless politicians and central bankers could solve anything. They created the problem in the first place and are therefore totally unsuitable to play the role of Deus. The main objective of governments is to stay in power and thus to buy votes. Therefore they are incapable of taking the right decisions. And the opposition, aspiring to power is even less suitable since they will lie through their teeth and promise the earth in order to be elected. (We know that there are exceptions like Ron Paul, but the voters will most probably find his medicine too strong to swallow.)
What about central bankers, can’t they save us? Unfortunately any sensible person who becomes a central banker loses all his senses and becomes a prisoner of the political system.
Solution?
So if there is no Deus ex Machina and if governments or bankers can’t rescue the world, who can and what is the solution. Let us return to the wise von Mises to look at the options available now:
“THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED”
Ludwig von Mises
Mises is absolutely correct: “There is no means of avoiding a final collapse of a boom brought about by credit expansion”. Whatever politicians, bankers, economists or others experts say, there is no solution to this crisis.We have reached the end of the road and are now staring into the abyss.
The credit manufacturing system that started in 1913 when the Fed was founded, began its terminal phase in 1971 when Nixon abolished gold backing of the dollar. It has been clear to us for at least 20 years that the outcome was inevitable. It was never a question of “if” but only “when” it would happen. It is now clear to us that the false prosperity that the world has experienced by printing unlimited amounts of money will very soon come to an end. Thus the “if” and “when” conditions are now satisfied so the remaining question is HOW?
To try to answer this let’s return to Mises: “The alternative is only whether the crisis should come sooner as a result of voluntary abandonment of further credit expansion ….”
To stop the money printing and credit creation would be the only sensible way of ending the failed quasi-capitalist, socialist experiment which is in the process of destroying the structure of the Western world. For almost 100 years we have lived on a system based on debt. This has created a false prosperity as well as false values. The transfer of capital from private enterprise to government by massive taxation is approaching 50% in many countries (see table). The average for 18 industrialised countries is almost 40%. This means that on average 40% of the productive economy is transferred to a non-producing entity (government) which wastes most of the money in the process of redistribution. But not only that, since the state has taken over up to 50% of the economy in these countries, the desire to work, to strive, to take risk and to invent has been taken away from a major part of the population.
For a great many people it is now totally natural to rely on the state for their needs rather than on themselves. And the state needs to borrow/print ever increasing amounts to perpetuate this economy based on an illusion. This situation is totally untenable. Since any additional money printing will only exacerbate the crisis and make the final collapse so much greater, the swiftest solution would be let the financial system implode now. We need to reset the world to a level which is sustainable. The consequences of this implosion would be a collapse of the financial system and a reset of debt to zero. Although this is unthinkable to any government or politician, it would be by far the quickest way to get the world back on its feet with no major debts, minimal government interference, and no central bank that can print money. It would be like a forest fire getting rid of all the dead wood. Out of that would rise masses of green shoots in the form of strong unchequered growth. The transition will of course be traumatic and the current generation will experience enormous hardship. But not voluntarily abandoning the money printing now will just delay the inevitable and the consequences will be dramatically greater and affect many future generations.
Anyone who has followed my articles will know my view that governments worldwide are totally incapable of stopping the money printing. This is their only means of staying in power and buying votes. But not only that,this is the only method they know. This has been their patent solution to all economic problems in the last decades. Not that this is new in history. Most empires have resorted to diluting the value of money by reducing the gold/silver content of coins or printing paper money. But as far as I know it has never before been done by so many countries simultaneously to such an extent.
Since there won’t be any voluntary abandonment of credit creation what will the likely outcome be? Again let’s use Mises words: “…… a final or total catastrophe of the currency system involved”. The problem this time is that we are not talking about one currency or one country. No, we are talking about most of the world’s major currencies. We have been used to measuring currencies and economies on a relative basis i.e. against each other. But this is a total fallacy since all major currencies have been in a race to the bottom for the last 100 years. Most currencies have lost between 97% and 99% against real money –GOLD – since 1913. And since 1999, most currencies have lost 80% or more against gold. So paper money has been a very poor measure of wealth in the last 100 years. Governments are creating credit and paper money and consequently through their fraudulent actions “stealing” from the people whilst at the same time increasing the people’s dependence on the state. And the people does not understand that the value of paper money is declining continuously. But gold reveals the deceitful destruction of paper money. This is why governments do not like gold and try to suppress the gold price.
Endless Money Printing – QE
And how will the currency system collapse? The answer to this question is very simple – through endless money printing. There will be no lasting austerity programmes in any country that can print money. Governments are incapable of sticking to austerity measures since in the end that is a guaranteed way of losing power. As power is the main purpose of all governments, they will use any method to retain it. Within the Eurozone, individual countries can of course not print money but the ECB and the IMF will take care of that. So whilst world leaders are procrastinating and bickering in G8, G20 and all other “summit” meetings, it is absolutely guaranteed that the final outcome will be one QE package after the next. Governments and central banks know that without limitless money printing there would be a deflationary collapse of the banking system and world economy.
The table below shows the financing requirements of the PIGS countries in the next few years. Just Italy and Spain will require €1 trillion in the next 4 years and of that 1/2 trillion Euros in 2012. Only printed money will take care of that.
For many years it has been absolutely crystal clear to some of us (sadly a very small minority) that many major sovereign nations are bankrupt as well as the world financial system. Banks are only surviving because they, with the blessing of governments, are allowed to value trillions of dollars of toxic and worthless assets at full value. And on top of that there are more than $1 quadrillion outstanding in derivatives. These are outside the banks’ balance sheets and there are virtually no reserves against them. The banks are netting the value down to virtually nothing and then applying a miniscule reserve against this net amount. First of all, the netting is only valid when the counterparty pays. When there is a counterparty failure, which is very likely in the coming financial collapse, gross remains gross and the $1 quadrillion remains $1 quadrillion. Secondly, a major part of the derivatives are worthless or not protecting the investors as we have seen with for example Freddie Mac, Fannie Mae, Lehmans and lately MF Global. MF Global had bought CDs to hedge their investment in Greek debt. But they hadn’t understood what they had bought and it turned out it offered no protection at all.
Hyperinflation
The “final or total catastrophe of the currency system” will occur as a result of the QE or unlimited money printing that will very soon start in the EU, USA, UK, Japan and many more countries. And this currency destruction will lead to hyperinflation as I have stated for many years. Throughout history, substantial government deficits leading to money creation or printing have always been the cause of hyperinflation. Because hyperinflation is always the result of a collapsing currency and not of excess demand.
To any thinking individual, it is totally incomprehensible that governments and central banks believe that an insolvent world can be saved by debt issued by bankrupt nations and then bought by the issuers themselves as there is no other buyer. This is the perfect recipe for self-destruction and “total catastrophe of the system.”
IMF, EU and other failed monstrosities
Time and time again, the world creates massive costly, bureaucratic and unaccountable structures that have idealistic and totally unrealistic objectives.
Take the IMF for example. This is what their mission statement states: “The International Monetary Fund (IMF) is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.”
If financial stability, high employment, sustainable economic growth and reducing poverty are the objectives of the IMF, then they have failed on every single point. So here we have an organisation that receives/borrows money from mainly bankrupt states and then lends the money to countries that cannot or will not ever repay the funds. And in order to carry out this totally futile task, the IMF takes a major cut in between to finance its costly and failed operation. The world does not need monstrous and costly structures that totally fail in their mission. Thus, the IMF should be closed.
Turning to the EU, they state on their website: “The main objectives of the Union are now to promote peace, the Union’s values and the well-being of its peoples”. There are other stated objectives such as: “sustainable development, based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment.”
The EU or the EEC as it was first called was created in the late 1950s. This was a prosperous period in the world economy based on real growth (not debt). As often is the case, politicians with illusions of grandeur create superstructures which only function in good times. The EU’s main objective of creating peace and well-being of the people is now being severely tested. If we for example asked Spanish youth (50% unemployed) about their well-being or Greek people or the Portuguese etc, we would get a tirade of abuse and complaints about the EU. Instead of “creating peace”, we are seeing major tension within the EU that could lead to serious conflicts. And as to “balanced economic growth and full employment”, this has all come to an end. The false prosperity, mainly based on debt, has also come to an end and the EU can only survive intact with the aid of endless money printing. But even that would only be a temporary reprieve. The EU is a failed experiment which is extremely costly and inefficient. The economic ruin of Ireland, Greece, Spain, Portugal, Italy, France etc would not have happened to the same extent without the EU. Like all artificial fiat currencies, the Euro was doomed to fail. Without the Euro, countries like for example Ireland, Spain or Greece would have recovered much faster.
Final or total catastrophe
So we are heading to the final stage or as Mises says a “final or total catastrophe of the currency system involved”. I don’t think that even Mises envisaged at the time that this could involve a major part of the world rather than just one country. This is why this catastrophe will be unprecedented in world history and have consequences that will affect the world economically, socially and geopolitically for a very long time.
Wealth Preservation – Gold
Since 2002 we have advised investors to put up to 50% of their assets into physical gold, stored outside the banking system. Gold has appreciated between 15% and 20% per annum since 2002 depending on the base currency. And most stock markets have declined 70-85% against gold in the last ten years. In spite of this most major investor groups (institutional, funds, asset managers or individuals) own no gold. Gold is money and reflects the total destruction of paper money. But most investors do not understand gold. Common arguments I hear is that “you can’t eat gold” or that “gold pays no return.” It seems that these investors prefer to eat paper money. And as to the argument that there is no yield on gold, who needs yield on an asset that has massively outperformed all major asset classes in the last 11 years. And if we look at 2011, gold has greatly outperformed stock markets in most major countries. Whilst stock markets are down between 1% and 24% in 2011, gold is up more than 20% against all major currencies. So in real terms (gold) all stock markets are doing very badly but still investors persist in riding these falling trends.
Stock markets will benefit temporarily from QE but it is still our view that they will fall another 90% against gold in the next few years.
The correction in the precious metals is now likely to be over and we should see the metals going to new highs in 2012. I had the pleasure of becoming acquainted with Alf Field at the recent Gold Symposium in Sydney where we were both speakers together with Eric Sprott, John Embry and Ben Davies amongst others. Alf is one of the few in the world, if not the only one, who knows how to apply the Elliott Wave principle successfully to gold. Alf’s next intermediate target is at least $4,500 and the ascent to this target could be rapid. That would probably mean a silver price of $150. These technical forecasts certainly confirm the fundamentals as outlined in this article.
The world is in a total mess and there is absolutely no solution to this unprecedented crisis. The hyperinflationary depression that we will experience in the next few years will totally destroy the majority of the credit based wealth that has been created in the last few decades.
In order to preserve wealth and keep capital intact, it is critical to keep a major part of investment assets in precious metals held outside the banking system. But for investors who continue to follow conventional wisdom, they will sadly find that their investment strategy was merely conventional and contained no wisdom.
6thDecember2011
Matterhorn Asset Management - Switzerland
Hang in there. Stay alert. Be prepared. Anything is possible. TF
p.s. I received this "NewsAlert" from the criminal CME this evening:
News Release Issued: December 7, 2011 6:15 PM EST
CME Group Inc. Declares Quarterly Dividend
CHICAGO, Dec. 7, 2011 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today declared a fourth-quarter dividend of $1.40 per share, payable December 29, 2011, to shareholders of record December 19, 2011.
A simple check of Yahoo Finance shows that the current number of CME shares outstanding is 66,390,000. Therefore, at $1.40/share, the CME has just declared a $93,000,000 dividend to its shareholders. However, still nothing, zilch, nada for the customers of MFing Global that the CME had vowed to protect. Bastards.
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Comments
First?
Wow, where is everybody?
Where?
New season premier of Sons of Guns. Different kind of metal but has a lot of appeal to lots of us gold bugs.
Jim Willie - Comex was going to default in Nov., but was averted
Here is a great commentary and audio from an interview with Jim Willie. Definitely worth checking out...
http://bullmarketthinking.com/exclusive-interview-jim-willie-the-public-will-not-wake-up-until-at-least-1-million-private-accounts-are-stolen/
Holy Smokes!
Thanks for all of that.
There's a lot of info to consume there and it might take awhile. And that's a good thing.
"Deus" Comment
The author says one of the arguments we often hear is that "gold pays no return." One of the guys posted a picture on the IV Precious Metals board taken just after the Crash of 1929. Some guy on Wall Street was trying to sell a very nice car and a sign said he wanted $100 in Gold. I calculated that it was roughly 4.9 ounces and today would be worth close to $8,500 give or take.
A Dollar bill in the pocket of one of these 1929/30 fellas in the photo is today worth a Dollar. A Dollar's worth of Gold from one of their pockets is today worth $85.
Ask your friendly neighborhood Dollar Bug to explain very slowly and carefully how it is you've been screwed holding Gold.
still reading...:)
still reading...:)
Tnx TF
I was wrestling trying to post the gold vs stocks performance chart at the speak.
Lo and behold, You out it all up here. :) Jesses cafe had an inetresting post that pm stocks appeared to be being purchased, as the pm's where being pummeled yesterday ..... more to follow
They started buying some of the miners, especially some of the silver miners, in numbers and aggressively even while they were still smacking down gold and silver spot prices to the lows.
Those lows were an almost perfect hit on the accumulation-distribution trend on my chart.
I think this type of price action gives them the opportunity to buy some decent positions in the higher beta miners without trading against themselves in the market. The negative bullion price action keeps most of the public buyers on the sidelines.
It is not illegal to buy one thing and sell another. I am running long bullion/miners and short the SP at the same time.
But it is not allowed to manipulate prices in commodities on the futures markets to game the stocks. And today's action in the precious metals futures was especially heavy handed in smacking price and running stops. Is anyone trading the futures markets anymore except for insiders? Probably not so many directly, but through things like ETFs and some funds, perhaps more than they realize.
I am not sure we are out of this nonsense yet because of so many guys standing for delivery this month, and the negotiations that are always going on in cash to buy out the longs w/o taking delivery.
But these sorts of moves tend to set up bigger moves higher. Barring the disintegration of Europe in the short term of course.
Speaking of heavy handed, is Standard and Poors working off some sort of community service sentence? Do they have to wear orange jumpsuits while issuing negative statements and downgrades on foreign sovereign debt in high coincidence with US policy measures?
The pressure they are putting on the Europeans to back up Timmy's policy advice (thinly veiled directives) to them is a bit much. I understand the adviceis to cut their rate 50 bp or more tout de suite to stop making Ben look bad and smooth the way for the US QE3 without knocking the dollar off its pedestal. And of course they must act to bail out the TBTF banks.
Is Tim going to be appointed financial Viceroy of Europe by the Banks? Would that be an IMF or Treasury title?
One can only look on in wonder these days.
http://jessescrossroadscafe.blogspot.com/2011/12/gold-daily-and-silver-w...
Profound words from Turd - - - (Thanks Turd)
Next, a great piece from Egon von Greyerz of Matterhorn Asset Management. Like most of us, I was first exposed to Egon through ZH. Clearly, the guy gets it. Please take time to read this in its entirety. - - - T.F.
My Take on the Price of Silver
$4,500 gold? $150 silver?
$4,500 gold? $150 silver?
Well, that would certainly erase my unrealized losses after the recent beat downs!
I do think gold and silver will reach prices that seem astronomical, even to PM fans such as those who inhabit Turdburg. Still ...
If rising PM prices are ONLY reflecting the inflation or rather hyperinflation, of the currency that prices it, then the "gains" achieved by such astronomical prices are sort of illusory, dontcha think?
I like how he integrated elements of Mises.
I like how he integrated elements of Mises. Yeah, I've totally experienced
people say that... you 'can't eat gold'... good response: 'you can't eat
paper either.' Well put! Yeah, that was a good, well written piece.
I have never been introduced to his work through zero hedge.
Appreciate the heads up.
Turd, good lookin out relative to the negative lease rates.
Don't totally understand that whole lease rate thing, nor have a firm grasp
of the COT report, that Harvey puts out. Though, look at it regularly, just don't fully get it.
If anyone has a link or an explanation, expanding upon the value of following
lease rates & COT reports, please share/ write or link, so I can gain a
further understanding of both.
Today on NetDania, was researching different studies that are in existence..
trying to move beyond my existing knowledge w/ new studies & also gain further
understanding of bollinger bands & macD, stochastics, etc.
Cheers!
@Fr. Bill - I think that just
@Fr. Bill - I think that just as it was in the 79-80 bull, the PMs will outrace inflation for a time before they revert back to a true historical value (which will still be fine because PMs are undervalued now IMHO).
HOWEVER... if we go into true hyperinflation, we will "Boldly go where no reserve currency has gone before" and who knows what "prices" will look like. As it has been said by wiser men, there may be a price set for an ounce of gold, but there may be no offers of any at that price when people see no value in the trade at any price. Also, miners may get to a point where they elect to leave the gold in the ground until a reasonable exchange mechanism is established (the death of fiat is complete).
PS - Thanks Turd, great food for thought.
The Willie Dilema
If Jim Willie is right about a COMEX default averted in November, then what will stop the process of continued theft to maintain the illusion, especially when the regulators are dragging their feet and pundits talk about "missing funds from MFG" like they were a family pet that walked out a door that was mistakenly left open,
I wasn't taking too much notice of the warnings to get funds out of other brokers (I'm with Schwab and feel "fine"), but if more appears in the next few days to back up Willie's view, I'll have to make some hard decisions about IRAs.
Dear God, how did we ever get to this point???
@ Scott j - - - nice chart - - -
It's going to happen at some stage - - - you may have nailed it. 2012 does have certain ring ( ka - ching to it).
Amazing dramatic pictures from the attack on Pearl Harbor
I know the Pearl Harbor remembrance thread was a couple of threads ago, but regardless, just stumbled upon this amazing page which contains 32 rare and dramatic photos from the attack on Pearl Harbor 70 years ago:
http://www.businessinsider.com/pearl-harbor-photos-2011-12?op=1
one sample - go see the rest for yourself:
Lions, and Tigers, and Bulls, and Bears!! Oh, my!!
In such cases, there would real gains from the appreciation of the prices of PMs. The trouble, however (at least for amateurs like me) is knowing that such is the case. Say, for example, prices go to gold $4,500 and silver $150. Does one sell? Hold on? Chew one's nails to the quick while trying to decide? I keep thinking of Stormdancer's huge piles of screaming money running from one burning room to another, seeking safety. That sort of scenario would likely be true for itsy-bitsy piles of screaming money (like mine!) as well.
Now, it's the prospect of true hyperinflation that prompted me to flee into PMs in the first place. Indeed, all my assets are in real estate and PMs, excepting the very small amount I actually use to pay month to month bills. The income from my real estate goes into PMs. Any windfalls (such as an inheritance) will go into PMs. The point is not to "make money" on owning PMs. Rather, it is to preserve the purchasing power of any money I have.
If, as you indicate, one might actually realize a real gain this way, because PM prices are outpacing inflation, then great! But, again, being able to see this and to actually realize those gains ... well, I feel less confident in knowing how/when to do that.
You see, every account I've read about hyperinflation -- real instances of this in the past century or so -- all report that the hyperinflation set in very quickly, suddenly even. And, with the way that information technology (the internet, etc.) has accelerated the way that financial actions proceed, I'd expect an international hyperinflationary event to more or less explode, perhaps to be a fiat accompli when I wake up for a cup of morning joe. Blech.
The Point: If hyperinflation is going to arrive like jack-in-the-box, then "realizing" a gain in PM price-increases puts you into cash, which might be dangerous. On the other hand, leaving one's assets in PMs may cause one to forego a true gain by never realizing it by going into cash.
Is this a true dilemma? If not, what am I missing?
Yes, and like the miners, the stackers will probably be sitting on their PMs waiting for some sort of reset currency to be established and stabilized. That's okay by me, so long as I'm able to "repatriate" small portions of a stash to meet transient needs to buy things like food and fuel. But, while that waiting period ripens, it could be lean pickin's for everyone!
Gingrich Would Name Neo-Con
Gingrich Would Name Neo-Con 'Force of Darkness' as Secretary of State
Wow, Newt Gingrich's true colors are sure coming out, today.
The Washington Times reports that former House Speaker Newt Gingrich promised conservatives on Tuesday he would ask John R. Bolton to be his secretary of state if he’s elected president next year.
Hours later, according to WaTi, he repeated that vow publicly to the Republican Jewish Coalition, winning a round of applause.
What should we think of the Gingrich statement? Here is part of an open 2005 memo by the late Jude Wanniski to Richard Lugar, then-Chairman, Senate Foreign Relations:
Here's another 2005 Wanniski comment on Bolton:
And that's the take on Newt Gingrich's man for Secretary of State. The coming change is going to be a site too behold.
Monetary regimes and inflation
http://www.goldonomic.com/Monetary_regimes_and_inflation.pdf
Be well
I just read the ZH article on rehypothecation
and shit my pants
Neo-Cons?
Don't be surprised by a Romney/Gingrich ticket at all...or visa versa.
It all the Forces of Darkness at this point. Obama is the Neo-Con dream. He has been able to hide better than anyone behind this despicable and evil corruption.
He has broken all of his campaign promises. That is a fact.
Shill,
you always find the juicy stuff. Glad to see you around. There were some deep concerns of fondness for you of late and glad you're here!
Hondo
"I just read the ZH article
"I just read the ZH article on rehypothecation and shit my pants"
You and me both, brother. Holy shit. So......Dow up 200 points tomorrow?
Can someone please explain "rehypothecation" versus "theft"?
I don't understand. The bank or brokerage can reassign my funds without my authorization and do so with immunity from prosecution under existing law?
Is some Congressional shill giving John Corzine coverage by authorizing "immunity" from criminal prosecution in return for his testimony?
Fox News reports RQ-170 Stealth UAV missing
http://video.foxnews.com/v/1310919655001/
Missing UAV stealth drone over the Afghan / Iranian border.
Uhoh.
@ScottJ
Your chart is cool and nicely presented.
If I am reading it correctly, then Apr '12 is when we may punch throug $50.
This ( from an old tiring dementia-ed memory was what Ivars was predicting.
The parabolic curve though is frightening, because it means price increases towards infinity, and this implies a whole lotta shit, like currency collapse, revolution, anarchy, no bacon for sale......
Good to see you post again.
Fox News Story
Follow up on the posting above - Fox news states that there is no video evidence to support the contention that Iran has the RQ-170.
However, the story language leaves the suggestion that the Iranians have the aircraft intact. That would suggest that the Iranians cracked the codes to intercept the UAV signals and overrode the communication with the UAV. If so, they could have landed the UAV intact within Iranian territory, especially if it was flying over the Afghan - Iranian border.
This would really suck because they had that level of capability, they could also deploy such devices on clandestine missions.
Together with the DEBKA stories from the past week posted to this blog, a stealth war emerges where stealth capabilities are being used to inflict real damage.
It starts to make me wonder if we need to start posting stories that we observe of real wierd events occurring in various areas of the nation.
january long atm & otm calls
january long atm & otm calls from before the sept massacre, are
basically dead w/ decay. february still has a chance to make it out alive,
though that clock is ticking away with decay, ... whatchyousay...
everyone is spittin out different directions
faber bearish
mike maloney is bearish
james turk is bullish
ira epstein is bullish
jesse's american cafe seems bullish ,
referencing 'coil' and upward swing to his charts.
trader dan also used the term 'coil', as Jesse did.
Coil is a vague word though... b/c you can coil in any direction, even sideways...
Strongsidejedi
It was hypothetical theft when the CDOs were only being squared. Now that the CDOs are being cubed, it is rehypothetical, or "rehypothecated" theft. The lunatics are running the asylum. They have weapons of mass obliteration. God help us all.
i was thinking about this..
i was thinking about this.. if their able to stall the MF global situation
long enough for silver to go up, if the MF Global had silver and it
disappeared and it's in london or somewhere else.. oh, now it's over here..
Nope, here it is.. over here... and so on.. as soon as silver goes up, they
don't have to give back the value of silver, only the money that was
owed to the clients, before it was co-mingled and stolen, reinvested, etc..
am i correct to believe JP morgan is holding MF global silver? or am i
off there. it's so confusing & some mixed signals, but my general gut
feeling is clients will get their money back (hopefully sooner than later).
this whole ponzi situation w/ the commingled MF global funds is not over, by any means.
when corzine goes to congress there should be a lot of press on that event.
some links to interesting info
Without comment:
http://mcalvanyweeklycommentary.com/
http://solari.com/articles/student_loans/
von Greyerz article
Thanks, Turd. That article is about the best I've ever read on the subject.
@ Senseosensei
The student loan article you posted was extraordinary.
It never occurred to me that by loading Middle Class students down with huge student loans, we were depriving our nation of future entrepreneurs and sending the best of the middle class into corporate meat grinders rather than into their own innovative start-ups. Of course they will have to "play it safe", find a job, and have their talent used by an existing corporation.
The University I graduated from was an Agricultural College. If you wanted to be a Veterinarian or a farmer, it was fabulous. Yet most of us just wanted to get far away from our parents and did not participate in these classes.
I was stunned to read an article recently that said that 44% of the recent graduates of my college indicated that the education they received was not worth the money they had paid. 44% felt ripped off!!
When I attended college, tuition was $540 a Semester. I remember because I worked my way through school and $540 was a lot of money and difficult to save. Today it is $5500 a semester. And this is an AG school supported by tax payers, and instate tuition.
I encourage you to read the article Senseosensei posted. It touched me deeply.
http://solari.com/articles/student_loans/
As succinctly as I can put
As succinctly as I can put it. We are all screwed!
http://m.youtube.com/index?desktop_uri=%2F&gl=US#/watch?v=fhcflDSUMvc
Gold Lease Rates
No discussion of gold lease rates is complete without reading Victor the Cleaner.
http://victorthecleaner.wordpress.com/
EDIT: Changed the link to "home" so you see all of his work. Short list, you pick and choose.
RE: ZH Hypothecation post
Guys..
I feel for any of you that have investment accounts, trading accounts, or money in the system period...if you survive on income from said accounts, I REALLY feel for you. I truly do. Hell, I feel for me and my family as my 401k is tied to all of this and I cannot afford to quit my job. I've written off, out of my mind anyway, the $90k I have sitting in there. It's all up in the air now. Allocate money each pay period to a little of this, and a little of that. Priorities...period. Water system, Food, Protection and PMs...while maintaining a normal life with bills and responsibilities. It ain't easy, but I feel better each week I accomplish something.
I stopped contributing to both the "company led plan" and the second plan...held by, yep, JPMorgan, some time ago.
If you're new here, and an average Joe of very modest to modest means, and are not into tangible, hard assets...and still playing or trading the markets, or with any money in the system...this is a warning shot over the bow that CANNOT go unnoticed, nor be shrugged off as some other ZH "doom and gloom" post with big words the common man can't understand.
http://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-a...
It clearly, CLEARLY states that they will not be held accountable for any losses. Period.
I called my mom the other day, told her to put aside the fact that she thinks my dad and I are tinfoil hat wearing goofballs, and told her to contact her retirement guy and get a check made out NOW. I told her what to do with it, as I don't think she'll take the time to research things as I have.
I'm glad she took me seriously, finally. It felt good to hear the seriousness in her response.
I'm headed to the local Township office today, first day I've had a chance, to see about getting something setup to get the people here to become at least somewhat aware of what they may face in the near future. I've thought long and hard on how to present it, without causing a panic, but also without coming off like some idiot who's selling them a bill of goods. So to speak. Best case, I hope to put up the cash for a mass mailing to all citizens with the help of the Township, via bulk prices. That's not all I've thought about, but the 1st and best way to reach local folks. Hopeful there are many nearby that understand and already have moved into action. I can only hope.
Bottom line, I can no longer sit on my ass and try to save myself without stepping up and trying to help all that I can. Sure, I've tried to talk to coworkers, friends and such...maybe 1 in 30 actually listened...about par for the course. This is what I "thought" I could do...but this morning, I woke up thinking, "why the hell can I not do more?" ...then I read the ZH post above...
Let's just say I now feel like I'm sittin in the middle of a campfire...
Wish me luck.
Peace...
C1
btw...
thanks TF/Mods and all who contribute here for the betterment of us all. Forgot to mention that in my latest post.
you guys, well, all of us, are special...no matter what anyone says to the contrary.
be well...hang tough.
C1
c1
h/t and admiration to you for wanting to help as many as you can
Remember, though...there will be many, many, many......many who will do nothing no matter what you say or do. I have friends I've known for years still say 'surely, they won't let it get that bad' They, meaning the government. lol, yeah sure. I've sent articles, emails trying to 'convince' people to do something. Some have, most haven't. I haven't given up though...I always think there might be a little hope...I add a little extra to my food/water stash though...because I know some of those friends may end up at my house when it does hit the fan.
fwiw...spend your money and time preparing yourself, your family and friends. Spread the word through conversation, make phone calls, send emails, have a community meeting...but spend your money on your own preps...not trying to convince those who are truly clueless to get a clue. Human nature is such that most will wait to do something only after a crisis. Take a look at the aftermath of a hurricane or really bad storm. When people knew it was coming..and still did nothing. The only difference between a storm and now...is that now is bigger and the storm will be worse. But, imo...most won't get it in time.
Good luck to you...your family & community are lucky to have you close.
--------------------------------------
Turd...GET SOME REST! lol...EvG article - excellent!
Draghi yakking live still
http://www.zerohedge.com/news/ecbs-mario-draghi-press-conference-live-we...
confidence, budget, implementation of these legislative matters is a process ... blah blah blah
ECB neither eternal nor blah blah blah, no signs of deflation, reactivate the channels of monetary policy
charts
Got to admit, they are a fine looking pair for once.
Great article TF-just sent it to all of my friends
Egon article is one of the best I have read in a long time. I just sent it too all of my sheeple friends in hopes of saving them from financial ruin. I also sent this website too my metal friends: Comparesilverprices.com Someone on this site mentioned it a few weeks ago and I have been checking it ever since. It has ssaved me some money on my recent silver orders. It has the live prices of most of the large silver dealers in the country. Thanks to the TFM reader who posted it a few weeks ago!
Silver bars-Rack em, pack em, and stack em
Hmm: "You'll take these
Hmm: "You'll take these worthless wheelbarrows full of FRN's and like it!"
Your notion seems highly plausible to me. :>(
Fine looking charts?
Not so sure about that.
Look again.
So typical - silver touches $33 and then BAM!
And what's with the USD index now?
Bizarre.
Damn - Draghi killed that rally
Eur toast, USD up, metals down - one press conference - priceless.
A well written article,
A well written article, though most of us already knew that; Cut off the finger now, or wait for the entire arm to become infected with gangrene. I am not familiar with Egon's writing, either. Though I hang out at ZH every day...
On the gold price crashing (again) - I know some are investing and wish to see the price go up, and I don't want to curse you. But as one still stacking, I would appreciate another dip to facilitate grabbing more physical with my dollar-cost-averaging purchase each payday. And I hope it stays low into January, when I make the last withdrawal from my 401K. That money goes into prep's, with 10% of that allocated to PM's.
Ha - crossed in cyber space
Yes - that was short lived. But the bull in me sees higher highs - they are just posturing.
Loool, making use of Euro
Loool, making use of Euro weakness due to the ECB interest rate cut to smash the metals and manipulate the USD higher. They're doing it so obvious, it's unbelieveable.
Not that I'd care much, take silver to 20$ and I buy lots more.
Drahgi..
what I pulled from this, is that we...those of us that "get it" just got a little more time to get things in order.
I, for one, thank him.
Clueless, re Draghi
Yes, I think the thrust of what he said was "we can and we will keep this monster afloat as long as possible".
And the media's take:
Draghi Says ECB to Lend Banks More Money to Avert Credit
Crunch
December 08, 2011, 9:17 AM EST
Dec. 8 (Bloomberg) -- European Central Bank President Mario Draghi coupled an interest rate cut with a pledge to offer banks unlimited cash for three years as officials try to head off a looming recession and leaders meet in Brussels to hammer out a solution to the debt crisis.
The Frankfurt-based ECB cut its benchmark rate by a quarter percentage point to 1 percent, matching a record low. It introduced new three-year loans for banks and loosened the collateral criteria it imposes when lending by making credit claims such as bank loans eligible and reducing the rating threshold on asset-backed securities.
The measures “should ensure enhanced access of the banking sector to liquidity,” Draghi told reporters in Frankfurt today after chairing a meeting of the ECB’s Governing Council....
http://www.businessweek.com/news/2011-12-08/draghi-says-ecb-to-lend-bank...
Brutal
I had a feeling something like this may happen today so closed my positions before the COMEX opened.
Sometimes you gotta just trust yr gut. I'm not sure whether to buy back now or just watch for the day.
Also, analysts seem to be anticipating BoE revving up the printing presses early 2012;
http://www.bloomberg.com/news/2011-12-08/king-hangs-on-sidelines-as-boe-...
Self Clearing Brokerages
Anyone have any thoughts on the viability of staying with one of the brokerages that do their own clearing? I do plan on getting certs where I can for some miners.