Net-Net Nothing
Does anyone else find this slightly amusing?
All of the hand-wringing and angst brought about by the FOMC meeting turned out to be wasted energy. Oh, there are several, interesting nuggets you need to consider but let's look at the gold price action first.
Heading into the Fedlines at 12:30 EDT, we were all wondering what was going to happen to gold (and silver) prices. Would they rise on some kind of QE announcement? Would they fall as they have nearly every time The Bernank has spoken in 2012? The answer to both is: Yes! And that's the funny part.
You've now read countless entries of mine where I've lamented the utter lack of participation in the metals pits, post MFing Global. The only entities left trading are Cartel monkeys and HFT algos. Because of this, we are stuck in an environment where The Cartel can very efficiently "game" the mindless spec computers. We saw this done again today.
Again the pattern for 2012 has been: When The Bernank talks, the metals get sold and the specs (both long and short) get fleeced. Usually, this plays out over a few days. Today, this played out over a few hours. It went like this:
- When the Fedlines hit the wires, gold was $1606. Over the next 6 or 7 minutes, it was hit for $15 and fell to $1591. Spec longs were crushed as their sell stops were hit.
- For the next 90 minutes, gold rallied $30 from $1591 to $1621. Spec shorts were crushed as their buy stops were hit, especially in one, joyous 4-minute interval were gold jumped over $15.
- Then The Bernank took the podium and began speaking. What happened? Well, of course gold was hit for $15 and fell from $1621 back to $1606 over the next 45 minutes.
And thus the title of today's blog entry. The net result is NOTHING. The only ones making any money continue to be The Cartel. Spec long = LOSER. Spec short = LOSER. The non-event of the Fed non-announcement is simply used as cover for The Gold Cartel to game price back and forth, thereby lining their pockets (and increasing their bonus pools) at the expense of the dumb money.
Continuing with the theme of "Net-Net Nothing", today's fun-and-games had ZERO IMPACT on the face of the charts. Gold and silver continue to be rangebound. Silver is particularly quiet and this will likely continue. The lack of volatility is bleeding premium from the July options and you almost have to expect this to continue through option expiry next week. Absent some unforeseen headlines, gold will likely remain below for a few more days, as well.
Back to The Fed. What did they actually say today? It wasn't as bland as LIESman would have you believe.
- They confirmed that they will maintain "extraordinarily low interest rates (ZIRP) through 2014". Why doesn't anyone ever talk about this? That's two and a half years from now! A minimum of 2.5 more years of negative, real interest rates! And how can they claim that, suddenly, beginning in 2015, things will get better and rates will go up? That's preposterous! No one can tell you what will happen next week, let alone 3 years from now but everyone just brushes aside the "ZIRP to 2015" stuff like it's nothing.
- They also lowered their 2012 GDP forecast (which they just made in April) from 2.65% to 2.15%. That's a 20% drop in expectations over the past 60 days. What changed?
- They also stated that they expect the BLSBS numbers to stay right here at 8.1 to 8.2%. This is also a change for the worse since April. Again, what has changed?
Additionally, the next FOMC meeting is 7/31-8/1 so we get to go through all of this again in just 6 short weeks. Hooray! But seriously, that meeting will be interesting. Besides having the June BLSBS data to consider, they'll also have the July data as it will be due to be made public on 8/3. Again, the next FOMC meeting will be the one to watch. Until then...well, we'll see.
Just a couple of other things for you. Two of our pals have released new articles over the past 24 hours. Jim Quinn hits us with a two-parter:
http://www.theburningplatform.com/?p=35850 & http://www.theburningplatform.com/?p=36196
and Mike Krieger uncovered this very interesting video from one of our Esteemed Leader's former allies. Pretty interesting stuff. ( http://libertyblitzkrieg.com/2012/06/19/harvard-law-professor-demolishes-obama/) Here's the actual video. Dude blasts Obama pretty hard and he's a Democrat! Pretty funny.
That's it for now. I hope you survived the day. I hope you're ready for tomorrow as who knows what it holds.
TF
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Comments
Operation Twist and Gold
http://seekingalpha.com/article/672731-how-will-gold-react-to-operation-...
Good Night Everyone!
Damn I love this place. I have been working my butt off for the kids on the dialysis machine. Only kidding. Working on something just as good. Veterans. Man the vets are getting the royal screw today. To those who think Nam was bad, they are right, but the guys today are just as screwed. We learned nothing. I mean NOTHING!
Anyway, with about 20 blogs I wanted to read, I decided on a couple of scotches and this one. I am fully up to date and stroking my stack.
I love you guys!
Only one simple question
What will happen if/when Romney becomes president?
Yeah, what then?
Like would we be better of now if McCain were pres?
Just asking
OK..... two questions!
!
$18K for a gun?
I'm watching "American Guns", and a 13-year-old kid is getting a custom-made 1873 Winchester. He's a champion shooter, but sheesh, that's a serious chunk. He out-shot one of the gunsmiths from the shop. The kid had a lever-action rifle, the guy had a machine gun.
You are so Right on!
My family's favorite niece works for JP. She actually strongly defended Dimon, and then I pointed out the cufflinks. She gave me a dumb stare and I could see she was thinking. But it only lasted a few minutes at best.
If Romney becomes President,
If Romney becomes President, the history books, 30-40 years from now, will say "Holy Shit! The US elected a fucking BANKER, after 5 years of transferring most of it's wealth to the BANKERS. What the fuck were they thinking? I suppose most of the voters were smoking something."
@ aomegaa
In regards to your post about Vets, how do you mean we of the current combat generation are getting screwed like the Vietnam guys did?
I am curious on your perspective, as I always felt like I have been treated like near royalty by the VA and Vet service center. No one is spitting on me, and I don't think anyone has intentionally called me a baby killer. Is my experience unique, or due to being in small town America? My unit took severe casualties during our tour, and I have heard nothing but good things about our hospital stays, from evac to discharge to rehab and continued care from the guys as we keep in touch. I know a couple wives who thought their husbands were KIA, when they weren't. While that's wrong to do to someone, it's also a commo/ logistics issue and less a vets issue.
Just curious. You can PM me if you like, as this isn't really a metals issue, unless you count shrapnel.
Thanks...
Jager06
Jager
No shrapnel and your right, this is not the place to discuss this. I'm a Nam Vet and I was referring to the over 200,000 homeless Vets from all wars.
The current chart reminds me of 2010
Thinking we might see a 50% price rise in 4th quarter.
Patterns always repeat.
If Romney Becomes President...
...then liberals will wake up from their 4-year slumber and finally start making noise again against the wars. Instead of ignoring them and forgiving Obama for using drone strikes to kill his "enemies list." Hell, maybe they'll actually get up in arms about the TSA finally. And start making a stink again about the Patriot Act (which Obama and the Democrats reauthorized after Obama was elected).
I'm not a fan of Romney, but I think Obama is more dangerous because the left makes excuses for Obama while Obama works to become dictator of America.
And Obama has been in the pocket of Wall Street all along...don't kid yourself.
PS It may be best if we don't get too much into politics on Main Street, but I do want to point out...I've been noticing, the closer we get to November, more and more Obama "shills" coming out of the woodwork on various blogs and forums. Some of them are probably paid. Just FYI.
Wow...
WOW! Anybody remember when was the last time you could get a Monster Box of CML's, PhilHarmonix, or ASE's for under 15K and not have to play chicken with the spec shorts?
Whoo hoo! Stack dat chit!!!! Wugga-wugga!!! Whoop-whoop! :)~
Gonna surf this wave all the way to that sand-in-the-shorts moment! Tomorrow may be even a bit better! And Friday.... well, as the old musicians used to say: "beat me Baby, 8 to the bar"! :)
PS: To anyone who thinks the GlobeX, HK, etc doesn't matter in the Grande Scheme, just take a look at that freakin' 50 cent decline after the Big Boyz closed today. If that doesn't convey the market sentiment generally, then you're just milking without a bucket!
Stack! Buy! Stack! Buy! Stack! (And definitely listen to Ye Olde Turdster for the dynamics and backplays! And maybe, just maybe, consider sending the lad an ASE, CML or Philly... or two... for his skill in prognosication!)
Now back to watching my cows, chickens, dogs, cats, horses, geese, and purple martins living out their various little dramas. It's been a wild day and one that I hesitate to repeat. So pour yourselves a tall glass of vino, toast the TPTB, MSM, Evil Algos, and Suzy SwivelHips (BM) and relax. You betcha it's all going to hell, and we Turdites have a front row seat for the final seizures.
BTW: Thanks Blythe! :) Love yer fuzzy little tuckus! Dream of you constantly! See ya after the close on Friday! (She loves me, dontchayaknow? Will propose to her right after silver hits $26 and gold is $1510) LMAO!
Vets are either
sympathized or esteemed by the general public; I'm a member of the BPO Elk and we are all about Vets, but again, the structure from commander-in-chief on down, tend to neglect the realities of needs. True for most returning with PTSD as it is for the average guy who lost his job and underwater on mortgage and no where to turn. Who is expected to help? Obama could have spent billions on work projects but instead gave it to bankers. Or could have shrunk government, how novel.
Big business and government are one: military industrial complex, GE, Raytheon, Federal Reserve. And we pay for it all, especially in our pathos.
Romney vs Obama - no contest…
…because they're essentially two sides of the same coin, and that coin ain't gold or silver - hell , it ain't even copper, it's more like a lead slug.
'fore anybody get's all gooey about either Robama or Omney, check out this video.
Almost as if TPTB don't care who gets elected this time, a solid footing will remain under their agenda regardless.
Vets
You want to talk about an endangered species, look at the Vets. These guys, and each of them, walked away from their jobs, families, friends, and put on the uniform, and put themselves directly in harms way. What did they get? Not JACK SH*T. A paycheck that wouldn't pay the parking meter at most of the MorganDeanStanley's in the world. Fact is, half the world wants to stone them, and a goodly portion of their own US of A tries to decry them as "murderers".
Saw a bumper-sticker the other day. "If you won't stand behind our troops, then kindly stand in front them". That about says it all.
To each and every one of you, young or old, who has ever put on the mantle of a US military man (or spouse), my heart goes out to you. THANK YOU for your service. THANK YOU for your sacrifices. THANK YOU for walking the walk and talking the talk (softly! always softly!) so that a bunch of Jane Fonda's can can second-guess you from the safety of their Hollywood agents casting couch. There is altruism in this world, and you demonstrate it every day.
I tell you this: there is indeed mischief afoot on Wall Street, but without the good folks who have put their lives on hold in the name of Freedom, we wouldn't be here enjoying our right to free speech or right to peaceably assemble (in the virtual sense).
I logged in ... Just to give
I logged in ... Just to give a hat tip to the expansion ... Way to Go Peter!
real or memorex
As a longtime and dedicated stacker i am immensely amenable to any argument suggesting tangible Eastern precious metals offtake , I really really want to credit this, its hugely psychologically comforting, and such notions move through the blogosphere at warp speed. T hey
Well do you have any idea if Good Delivery bars are being retailized and sent to points East. I sincerely hope so, and have zero knowledge, but the Physical Offtake story really morphs in the face of a considerable peculiarity, this being an apparent iron top at 1630 and 29. Some guys and gals capitulated today, and understandably so.
But the very observant Mr Ferguson quickly discerned this somewhat startling phenomenon, you better watch 1630 and 29. And he nailed it. Credit where its due, thats admirably alert. They were there, they were really there, and evidently in size,,,, i think silver tried 29 18 times. No wonder it got a bit tiresome.
That said, the population of the US is give or take 313. A few slip out the back door when the census taker knocks. 330 is probably a better number.
Curiously its the same .... its 330, and these people save and its serious, they save 40 percent of what they make a couple of hundred generations in a rice paddy,, with no soy sauce, well, it inculcates the saving habit, go fig.
They can buy gold and silver with a keystroke on their home computer, 330 million serious savers, they like these metals. This isnt controversial, they like these eternal metals ... its in the blood/.... its unitized small,
In my business we call that a buy side, thats rather serious, thats the entire population of the United States, bent assiduously to this task. With generational patience and highly disciplined personal habits. Born of 100 generations of ricer starvation, not food stamps.
SO does China want to be the new worlds reserve currency? Is tangible metal being recast retail and moving East.
Few dispute this, these people are tough and disciplined, 330 million heads down savers? Well its a Communist dictatorship, they will appropriate it at the appropriate time, these people are not waiting for the midnight bell at Wal Mart the night of the 31st.
Thats a concerning mismatch.
Fine but we capped 1630 and 29. Thats admittedly counter intuitive .... it just is. Does it have legs? Is that SILVER freighter entering Macau harbour? Probably, its getting a bit predictable how many yuans or renminbis?
Money talks and bullshit walks
A hero speaks. The truth is powerful. The tide is turning.
I posted this yesterday, but in case anyone missed it, I'm posting it again without apology but with celebration.
James G on FED/ECB action and vampires
Dak Attack
Eastman Kodak . Out of Rochester Ny was a wonderful venerable Dow 30 Industrial ,,,,,a great company bluest of the blue chips.
Well its dead,its very dead a one nd your coroner is JP morgan, did they understand digital photography.... not fast enough, they must certainly have shivered in terror, tried to diversify, a little this, a little that, and tens of thousands of hardworking people hit the bricks.
We capitalists call that Schumpeters creative destruction, its considered healthy unless of course you live in Rochester or work there, and you have small children, your husband or wife comes home whitefaced, and says its over, im laid off, silver based photography is obsolete, now its digital.
Along comes one James Dimon, murder on the half shell. Its quite a sight. High functioning psychopaths are truly good, they are somewhat awe inspiring until youu regather your humanity, then you vomit unstoppably.
As in Solyndra, DAk is up to their asses in uncommitted metal, let alone uncommitted morality .... wehave tight delivery problems, um not in Dacks warehouse this is serious silver,
Who was appointede the Receiver for Eastman Kodak, JP Morgan, there are connectible dots, hold your positions, and weep. Thats how serious this is.
Schlichters Latest
http://papermoneycollapse.com/2012/06/the-death-of-banks-and-the-future-of-money/
Did someone say something?
I thought I heard a little voice out there in the wilderness saying "buy, buy, buy." So I did.
Losing on the Crimex
Mr. Turd said: "The only ones making any money continue to be The Cartel. Spec long = LOSER. Spec short = LOSER."
So why do the Specs continue to play in the land of the Crimex? Yes, I know the open interest of PM trades on the Crimex has been falling despite decreases in margin rates. But why do the Specs return to play again if it is a lose/lose situation? Maybe the Specs are addicted gamblers but more likely the losing trades were just hedges for currency movements where the other side of the trade was profitable.
Try this...
Do not visit the KW News website for a couple of weeks or even months, especially during "important" events like the Greek vote or FOMC meetings. Then visit the website and look back at all the blabber about the "end is near and gold will hit $4K to $5K real soon". LOL
It is a real eye opener to see how any emotions you might have about events and PMs are being played by the people being interviewed.
Gene Arensberg with some long term charts for 'the little guys'
It's so hard to buy when you are beating yourself up for holding onto stocks that have crashed. It's good to have a longer term perspective. Although Gene focuses on the little guys, he only recommends a small part of your portfolio for these speculative plays. He holds physical as ultimate insurance.
Do I have the courage.....?
Good Morning - from Small Mind North America
just kidding
catching up, and thought this quote from Tabberto's link above relevant:
Banks are parastatal dinosaurs
One thing is now clear to even the most casual observer: banks are not capitalist businesses. In their present incarnation they have little to do with the free market and no place in it. They are constantly oscillating between two positions: One moment, they are a state protectorate, in desperate need of support from the state printing press or unlimited taxpayer funds, as, in the absence of such support, we are supposedly faced with the dreaded social fallout of complete financial collapse; the next moment they are a convenient tool for state policy, simply to be fed with ample bank reserves and enticed with low interest rates to create yet more cheap credit and help manufacture some artificial growth spurt. Either the banks are the permanent welfare queens of the fiat money systems, or convenient policy levers for the macro-economic central planners. In any case, capitalist businesses look different.
http://papermoneycollapse.com/2012/06/the-death-of-banks-and-the-future-of-money/
Must say, nothing makes my day better than being told that the people here are all idiots. I am clearly in good company, and hanging with my peers. (When I am not enjoying my f*&ing life. I have a really good memory.)
http://www.reuters.com/articl
http://www.reuters.com/article/2012/06/21/us-economy-global-idUSBRE85K0G...
Stratajema
"Do not visit the KW News website for a couple of weeks or even months,...It is a real eye opener to see how any emotions you might have about events and PMs are being played by the people being interviewed."
You DO realize that it is entirely possible to read whatever you want - and keep it in perspective? The 'letting it impact your emotions' part is a separate process (for most of us) than the reading. You've left absolutely no doubt that you, personally, aren't designed for this level of information-sorting. It's OK. I can assure you, though, most people have developed those healthy skills in a bit more robust a fashion.
It IS a shame when helpless people have their emotions manipulated and their capacity for critical thought taxed beyond their limitations. Have you contacted KWN about offering you a disclaimer tied to your IP address?
German government and
German government and opposition agreement seeks to tax all financial instruments if possible
Says
- Transaction tax should target in particular shares, bonds, investment stakes, derivatives and currencies.
- Want Europe to have prepared transaction tax legislation by the end of 2012 so that national laws can follow.
http://ransquawk.com/!#/headlines/230489