Friday Odds and Ends

Friday, June 22, 2012 at 11:00 am

A loose collection of things for you to consider on this fine, Friday morning.

We might as well begin with the charts. Look, I know this stinks. It has now been nearly 14 months since silver briefly peaked at $49. Gold has been under attack since early September of last year. It's painful and it's no fun. In the grand scheme of things, it's also irrelevant. In fact, it's beneficial...at least if you've been using this time to increase your physical holdings. There's certainly a lot of angst and nervousness out there regarding future price. Whatever. I, for one, am getting bored with it all. I know (in general) what is going to happen and I know (in general) how this will ultimately play out. The timeline of getting from here to there is the only thing in question. Please remain patient and resolute. You are doing the right thing. Your physical metal is your only financial protection. Don't let the day-to-day machinations of The Bullion Bank Cartels dissuade you.

So, here are two charts. Gold is still simply contained in the same $100 range in which it has traded for the past 6 weeks. Big deal. Sheesh. A couple of downticks and the world is ending. All the AGAs come out and claim that $1300 is next. It's not. Silver is currently below $27 and out of its $27-29 range but, so what. Two weeks ago it was above $29 and out of the range, too. History would suggest that anything below $27 represents a wonderful buying opportunity, not a horrific panic opportunity. Keep your wits about you, please.

One of the themes I'm going to be pounding for the remainder of this year and beyond is the ultimate removal of the U.S. dollar as basis for international trade settlement. I laid out some of the details here: http://www.tfmetalsreport.com/blog/3866/dot-connecting. Well, ZH has posted this morning an excellent summation of all the recent headlines in this area. You should check it out. Again, I'm no genius. I'm simply paying attention. Even the late Jeff Healey could have seen this one coming from a mile away.

"When the US Dollar is ultimately dethroned as the world's reserve currency (and finally gets rid of all those ridiculous three letter post-Keynesian economic "theories") nobody will have seen it coming. Well, nobody except for the following headlines: ""World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees."

http://www.zerohedge.com/news/usd-trap-closing-dollar-exclusion-zone-crosses-pacific-brazil-signs-china-currency-swap

And this is interesting. Our pal, Chris Powell of GATA was on CNBC Asia overnight and he was actually allowed to discuss gold manipulation. In the brief amount of time he was allotted, Chris did his usual fantastic job of laying out the rationale of why gold is manipulated and by whom.

http://video.cnbc.com/gallery/?video=3000097894&play=1

And, lastly, this is fun. Yours truly was interviewed last evening by Rahul at http://www.altinvestors.com/. It's only about 15 minutes long but we covered a number of topics. I hope you find it helpful and interesting.

Well, that's it for now. The CoTs today probably won't be very exciting but I'll update you with my opinions later, regardless. Have a great day and a relaxing weekend.

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Comments

@Dagney Taggart

Submitted by RobG on June 22, 2012 - 1:50pm.

"capitulation / despondency mode"

You are right about that. I've been stacking for the last couple of years. I started buying because of the fundamentals. My wife thinks I'm crazy and is not too fond of stacking since the stacks are underwater (not the boating accident kind) ;)

Unfortunately, the fundamentals don't seem to be coming into play. Manipulation is the play which I, like so many here, are getting tired of. I'm just wondering when the fundamentals will be what drives the price and why Turd is so sure things will get better this summer through the end of the year.

Sorry

Submitted by LOUP-GAROU on June 22, 2012 - 1:57pm.

Thanks for the update Turd, yep sorry but I made a major purchase @ 1600 and down she went,seems like that happens to me every time! oh well I'm happy and I get to sleep good knowing i have something that won't vanish into thin air from the corzine or diamon virus! have a great weekend everyone!

ha

Submitted by LOUP-GAROU on June 22, 2012 - 2:00pm.

I got something to donate to him but i doubt he can get cash of it !

Greece has decided to stay...It's all good in the EU for real...

Submitted by Be Prepared on June 22, 2012 - 2:06pm.

Bill the Greek

Submitted by Excalibur on June 22, 2012 - 2:06pm.

The match starts in 45mins and I'll be cheering for Greece and hoping for the same scoreline. (Though didn't Socrates play for Brazil? ;)

Nothing to Hide... but the Truth...

Submitted by Be Prepared on June 22, 2012 - 2:07pm.

Not Dead Yet

Submitted by cpnscarlet on June 22, 2012 - 2:08pm.

Turd - I just took your post about the action this summer and added it to....you guessed it... the prediction calendar. It's been on hiatus for a time since EVERYBODY's prediction has been wrong - doomsayers and cheerleaders - but it's still there. See you in September.

Our Drones bring America's Message to the World...

Submitted by Be Prepared on June 22, 2012 - 2:13pm.

Not the brightest bulb in the box

Submitted by Magpie on June 22, 2012 - 2:13pm.

If he had any brains he'd be asking for proxy votes.

Obama Surrogate Calls to Make Voting Mandatory

http://www.breitbart.com/Big-Government/2012/06/21/Desperation-Obama-Sur...

Michael Krieger's blog posting

Submitted by historiography on June 22, 2012 - 2:16pm.

http://libertyblitzkrieg.com/ titled Leon Panetta Get Your Head Out of the Saudi Princes’ Arse:

"Glenn Greenwald is one of the best journalists operating in the United States today. The more I read his stuff, the more I am impressed. Unlike most automatons out there in the mainstream media, he is able to call out the “red team” vs. “blue team” wrestling match rhetoric for the nonsense it is. The real battle is the 0.01% oligarchy vs. the rest of humanity. They use the Republican and Democratic sham to divide and conquer the sheeple on “social” or “emotional” issues that distract the masses from the real issues."

And this I've posted this before but apropos:

Eric Holder went from government to Covington and back to the Justice Department and Covington clients include Goldman Sachs, JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, and Deutsche Bank.

Volatility skew

Submitted by ChiTownHustler on June 22, 2012 - 2:16pm.

Six reasons bacon is better than true love

Submitted by croc987 on June 22, 2012 - 2:16pm.

http://theoatmeal.com/comics/bacon_love

My personal favorite

@RobG

Submitted by Dagney Taggart on June 22, 2012 - 2:20pm.

Consolidation is normal. What is not normal is the way it has been done. The charts say 100% manipulation designed to discourage the faint of heart. Pumppumppump-DUMP does that. From my perspective, it's nothing but a test: Do you have the courage to look the BS in the face and smile?

What I have learned is that good people are usually the most naive and weak. Certainly not saying that you are. But many rattle too easily and THAT is exactly why bad things go on for way too long. Our financial system is such that it can use illusions to overcome fundamentals for a period of time. That time depends on how long the the good sheep will tolerate being ripped off or can be shielded from the truth. Bad things happen to good people and sadly that can't be helped until they decide to stop their B*llsh*t and believing lies, and face the danger. By choice or force, that time is approaching.

When that time comes, the fundamentals will prevail.

over

Submitted by Torpedo Fish on June 22, 2012 - 2:22pm.

thnx God this week is over.

@ Babagan

Submitted by jt17 on June 22, 2012 - 2:22pm.

The US will NEVER go back to a gold standard because it is deflationary.

What do you do with the $15 trillion in debt if the dollar is backed with physical gold? This means foreign bondholders can get US gold at whatever level the a new gold standard will be set at??? Will never happen. This debt assures continued attempts at inflation.

Anyone who thinks the US will go back to a gold standard should rethink.

@our drones bring...

Submitted by bam on June 22, 2012 - 2:24pm.

Now that is one spot on cartoon. I love the ol' canard: "they hate us for our freedoms."

Actually, no. They hate us because we killed half their family. Which, you know, kind of sucks for them.

PM tax issue with Obamacare resolved?

Submitted by Tony Clifton on June 22, 2012 - 2:25pm.

So, the tax on gold/silver that says every sale above $600 has to be reported for tax purposes that was embedded within Obamacare...does that go away if the Supreme Court marks it unconstitutional. Do the "riders" also get thrown out. I, like most of you would love to see the $55K per ounce pricetag, but if they can tax us 99% on it, it does us little good. They put that rider in there for a reason and with our government, I sure wouldn't put it past them to save the integrity of their fiat.

http://www.moneynews.com/StreetTalk/New-Tax-Gold-Hidden-Obamacare-healthcare/2010/07/21/id/365283

The Reset is tied to how quickly the Politicians remove...

Submitted by Be Prepared on June 22, 2012 - 2:28pm.

our rights and freedoms. We talk PMs here because our leaders have seen fit to bind us in debt servitude without our consent or input. Political cartoons are merely a simple way to express an idea in a condensed format that epitomizes a feeling about a certain subject. I don't love any party because we live in a one party system.... Obama or Romney are just the same choice. Obama, though, is the current President and has continued many of the same terrible policies of Bush to the detriment of our Nation. I can appreciate that we have different opinions, but we all generally agree that we are being forced off the edge of a cliff. The state of our laws and freedoms will very much effect our ability to bridge our sound money over to the next system. We need to be aware and cynical of all that is being thrown at us so that we aren't lulled back into stupidity. The labels of "right" and "left".... "liberal" and "conservative".... "republican" or "democrat" have been contrived to divide us... to create dissonance amongst people so that the real conversation relating to the preservation of liberty is muffled and stamped out. :-)

@Loud Noises

Submitted by Urban Roman on June 22, 2012 - 2:32pm.

Your comment reminded me of some rubrics about a rising vs sinking economy. ...

"A rising tide floats all boats",

... but ...

"When you drain the swamp there will be alligators".

I suspect your big money client is one of the alligators.

Gold and Silver Ho!

Submitted by Be Prepared on June 22, 2012 - 2:33pm.

If only it were so

Submitted by I Run Bartertown on June 22, 2012 - 2:40pm.

"Unlike most automatons out there in the mainstream media, he is able to call out the “red team” vs. “blue team” wrestling match rhetoric for the nonsense it is. The real battle is the 0.01% oligarchy vs. the rest of humanity."

I'd say both are rhetorical nonsense. If the real battle were really to be with .01%, most people would never encounter them...SHTF would not need to be scary...and the millions of guns and billions of rounds bought recently would be a bit...overkill.

the Panderer-in-chief

Submitted by opticsguy on June 22, 2012 - 2:41pm.

was TV just now trying to pit immigrants against the taxpayers. As of now there are still more taxpayers, but by Nov. there might not be.

Delivery

Submitted by Gold Dog on June 22, 2012 - 2:46pm.

I am long paper futures and wonder what the procedure is to take physical delivery? No premiums.

Has anybody done this?

Thanks in advance for your help.

Dog

@jt17

Submitted by Jan Roos on June 22, 2012 - 2:49pm.

What role do you see gold play when tshtf?

Cheers

@Jan Roos

Submitted by Urban Roman on June 22, 2012 - 2:52pm.

It will be like those little bits of corn you sometimes see in the 'S'.

Because it can go all the way through the animal without changing.

@JT Re: Gold Standard

Submitted by Dagney Taggart on June 22, 2012 - 3:02pm.

The debt is fraudulent. Money printed from nothing and lent for interest is counterfeiting and fraud. Money printing creates inflation and steals purchasing power, thus theft. You like theft? Don't answer that. I know you mean well.

Yes, a gold standard with a fixed gold price would be deflationary in the current criminal monetary system. Gold as a competing currency, what honest people are calling for, is another story.

Edit: At the end of the day, the debt does not get paid with more expensive dollars. If debt doesn't get paid, there's default and gold wins. If the debt does get paid, it's with cheaper dollars and gold still wins.

What is value?

Submitted by Mr.Grey on June 22, 2012 - 3:03pm.

It is nothing! it has no smell, you cannot see it, you cannot possess it. A value is an electro-chemical reaction to the acceptance of a belief. As I read yesterdays thread this morning my heart went out to many. My mind said "capitulation", but it was a moot point as I no longer hold any paper other than 1 share in a 9 hole course, (I hold the certificate". In my mind this site has value! Turd, You the man! The more incredible value is the people who post here. After you're here a while you begin to not only see the individual, you begin to see the family and daily life. ThankYou! Someone said the end will not come quickly! you have my guarantee. This was followed by an echo. My mind said, "how come they know the truth and I'm still muddling along?" Then the veil dropped. I am where I am because I know what I believe and have created corresponding values to put in my daily life so if it all end today, that's fine, if it all ends tomorrow or next year thats fine as well. I think that when it ends, we will never again be able to live in such an opulent manner as we do today (enjoy it while we can).

Things that I value:

A good woman, a good dog, a good horse, a table full of food with the good china and the good silver and family all around. A good rifle, walnut stock and blue steel, should be 60-70 yrs old. No good rifle should be left homeless. I'm partial to single-shot rifles and double barreled shotguns. A 1960 Chrysler, Imperial, with a 413 wedge. A 1966 Chevy Impala, with 327 small block. Good wines, in abundance. Crown Royal, Wild Turkey and yes, double-chocolate vodka. The incredible beauty of nature and learning to be the right size. Silver .90, .925, .950, .999. Water!

I hope everyone has a wonderful weekend, remember in the words of Roger Miller "you can't rollerskate in a buffaloe herd but you can be happy if you've a mind too".

@Turd "It doesn't matter".

Submitted by maravich44 on June 22, 2012 - 3:03pm.

..I get the distinct impression that you are privy to some pretty heavy, behind the scenes action that cannot be divulged yet .. Best & Thank You as always../

Co-incidence or early warning indicator?

Submitted by RaRaRasputin on June 22, 2012 - 3:06pm.

Consumers are reacting angrily to another day of technical problems at NatWest and Royal Bank of Scotland, which have left some account holders unable to access money and delayed salary payments to workers whose firms use the bank.

The bank said the problems began with overnight processing of payments overnight on Tuesday, although some customers said they had difficulty withdrawing their money on Tuesday evening.

Stories have emerged of NatWest customers being unable to complete on house purchases, stuck because they can't pay hotel bills abroad, missing bill payments and being turned down for concert tickets because payments have been refused.

http://www.guardian.co.uk/money/2012/jun/22/natwest-rbs-customers-react-...

Hmm and this:

Royal Bank of Scotland Group L-T senior debt cut to Baa1 from A3, outlook negative
Royal Bank of Scotland plc L-T deposit rating cut to A3 from A2, outlook negative

http://www.zerohedge.com/news/here-we-go-moodys-comes-out-morgan-stanley...

Are the two events perhaps linked? Does RBS have a liquidity problem? Are we seeing an early indicator of what is to come?

Just my sov's worth

RaRa