Going Nowhere Fast

I had hoped that Tuesday would provide some excitement. Nope. We are in Dullsville while everyone awaits the FOMC tomorrow. To kill the time, I found something we definitely need to discuss.

Last night, ZeroHedge decided to dip into their archives and recycle a post from September of 2009. In case you missed it, I thought I should focus on it here, while we wait for a tomorrow that will be about 1000% more interesting. 

Here is the link to the story from last evening which begins with the following paragraph:

"Lately various media outlets have been swamped with stories and allegations of precious metal manipulation ranging from the arcane, to the bizarre to the outright ridiculous. At issue is not that these claims of price fraud are unfounded - they very well may be completely true - but without a notarized facsimile of an actual trade ticket signed by Brian Sack, or his replacement Simon Potter, or any of the BIS traders confirming they are indeed selling gold on behalf of the Fed, BOE, ECB, SNB or BOJ simply to keep the price of the metal down, what such constant factless accusations (and no, sorry, a chart showing that the price of gold may go up or go down sharply indicates merely that and nothing about the underlying factors for such a move) do is to habituate the broader public to the real issues surrounding precious metal, and other asset class, manipulation. So instead of searching for circumstantial evidence which one can easily find everywhere, we decided to go straight to the source. To do that we go back to a post we wrote back in September of 2009, based on an internal previously confidential Fed document, which conveniently enough explains everything vis-a-vis gold manipulation and leaves nothing to speculation or misinterpretation. Zero Hedge presents the smoking gun that may provide responses to all the various open questions regarding the Fed's Modus Operandi in the gold arena which answer the core question - motive - courtesy of a declassified memorandum, written by none other than the then Fed Chairman, and addressed to the president of the United States."

http://www.zerohedge.com/news/fed-gold-price-manipulation

And here is the link to the original piece from three years ago which concludes with the following:

"So to all conspiracy theorists claiming that gold is being manipulated on a daily basis by the Federal Reserve: when it occurs over and over, and is so well documented, it is no longer a theory, it is merely sad. And the fact that the US government goes to great lengths to hide the illicit dealings of the Federal Reserve, which through its monetary tentacles, has prima facie control over not just US policy but also over sovereign governments, is an unprecedented failure in the checks and balances system that the founding fathers had planned when they created the United States of America. Yet saddest is that the United States no longer pursues strategic goals that are in the best interest of the majority of its citizens, but merely manipulates other, less powerful nations into a servile existence that only provides gain to a very limited subset of the American financial oligarchy. It is time for the Fed's unprecedented control over affairs, both global and domestic, to end."

http://www.zerohedge.com/article/smoking-gun-fed-controlling-gold

Please take time to read the entire article and the 1975-era document which is attached in Scribd form. Lots and lots of juice discussion points here. Have at it.

I'll update later today if conditions warrant. I'm not expecting much, though, as both metals will likely remain in a tight range for most of the day.

TF

Comments

Dagney Taggart's picture

WWJD: Matthew 21:12-13

Short Stack's picture

absolutely hilarious

I just finished having a long discussion w/daughter about the folly of a Iroquois Constitution since, as was pointed out by another, the Iroquois had no written language an as such had to pass their Law down by word of mouth from generation to generation.

I pointed out that by so doing, the Law would have had to go through multiple changes much like the children's game where one person whispers something into another's ear, who then whispers it to another and so on till the last one hears what was originally said.

Or so the game is supposed to go.   It never turns out that the original message is the same as the last.   It always ends up being distorted from what was originally whispered.

Since the Iroquois had no written language of their own the "Iroquoin Constitution" that was written by white men could at best only be a facsimile of the original.

Honestly I am so fed up with Liberal BS that I don't know whether to get upset or just laugh in liberals' faces when they espouse such crap.

Short Stack's picture

Hey Dag

Cool picture.

Nana's picture

@ Landowner

Yes indeed, a very interesting topic!

The hyper-enviroMENTAList , PTB and elite are doing land grabs, forcing people from their PRIVATE property and dictating what PRIVATE property owners can and cannot do on their PRIVATE property here in the US.  Looks like you may have some of the same issues in Canada too.

If anyone knows about Allodial Titles please share.

cpnscarlet's picture

WWJD????

"What DID Jesus Do?" is always the proper question. What would He do is silly speculation. Imagine letting fallen humans speculate on the Holy Almighty's possible actions. High comedy. What He did do was to drive the moneychangers out of HIS house because they were dealing falsely in secular actions that were not required for spirituality to begin with. I think it's down right silly to extrapolate a scene of him driving the banksters out of their banks. Don't worry, all will be settled on that Day, but please don't mix apples and oranges to make a point. We already know the banksters aren't "doing God's work".

Louie's picture

@ Iroquois Constitution

Of course you know what is really funny about all of this?

America is paying huge fiat to send their children to universities to learn this tripe!

Not to mention that we are also paying for the professors through our taxes!

And soon, we get to cover the $1 trillion in bad student loans! 

cpnscarlet's picture

Now, about Norcini...

Here I was thinking, given the reporting of the last 7-10 days, that the only thing we needed to be worrying about was stacking more before the coming "shortages" would start to show themselves in August. Now, Dan tells us to watch out for the usual cartel tricks? So, now, the game is not over and it's same 'ol, same 'ol? again and again... Fine. Once again, claims of "a hot summer" and "coming shortages" are just more hokum? Or (as seems to be the case lately), am I missing something???

Sorry, but it seems we need a teeter-tooter to keep track of sentiment from week-to-week when it used to be month-to-month. Soon day-to-day? The sure sign of a completely sick market.

Turd Ferguson's picture

NO

MODERATOR

Dan is simply warning against short term fluctuation in paper price.

Significant, fundamental changes are coming. The summer still promises to be historic and explosive.
Prepare accordingly.

Planters's picture

The Best thing todo

Is your own due diligence, look I read all over the interwebnet and there are alot of people touting all sorts of things.

But gather it all up, shake it around and come up with your own opine.

My take on tomorrow is that there is NO WAY BEN is dropping the Q word

1) market at 13k

2) Election year 4 months togo

3) use battle royal number 1 as an example, lookie where we are people , top of the channel.

Dont listen to anyone but yourself, cause you really are the only person who cares about you.

Turd Ferguson's picture

Very good advice

MODERATOR

Nice work.

Response to: The Best thing todo
maravich44's picture

Yep.

Planters's picture

On a side note: I just got my

On a side note:

I just got my member caught in my ZIRP-ER surprise

We're going TWIST and Circle ZIRP ourselves tomorow. cheeky

dfl8ng's picture

It's Not About Suppressing Gold Prices

With Au having moved up 400% from 2005's $400 to today's $1600, any longstanding, persistent, manipulative bank efforts to suppress the gold price over that short 7 year run-up have to be viewed as an utter failure.  Why would any gold holders benefiting from such rapid appreciation want to file suit or spend time exposing the machinations of the financial organizations, whose chronic, futile attempts have so deftly failed to halt such a run-up?  Would that the 'manipulators' do the same over the next 7 years, while gold quadruples again, from $1600 to $6400 per oz., accompanied by what might be, rather than protests against manipulation, stacker cries of 'Please don't keep throwing me in this briar patch' ?

I'll take my usual unconventional stand, and propose that what the banker and other authorities are actually trying to do is not prevent another relatively rapid but still gradual 400% gold price rise over another 7 years, but rather to prevent any sudden, dramatic stampede out of their fiat paper money corral, into the free open spaces of hard mineral asset values,  wherein gold embarks on a parabolic runaway of, say, 400% in a year,  soon revealing to all the unsustainable nature, and the impending end of, the 30-plus-year, long-managed, fiat paper money credit binge.

The 7 year, 400% gold run-up has been silently signaling the eventual end of the fed-bank-worldwide-sovereign-sponsored spending binges, and the otherwise desperate authorities are in my opinion satisfied to have prevented any sudden flight-to-gold price run-ups, thus keeping the gold-price warning of the impending fiat paper money and credit collapse hidden in plain sight.

All seriousness aside, and just saying...

Karankawa's picture

Today's Capital Account is up, Maloney is a guest.

http://www.youtube.com/capitalaccount

Maloney hits it out of the park in my opine.

Turd Ferguson's picture

submitted w/o comment

MODERATOR
Colonel Angus's picture

Turd, a question...

...are you seeing the MFGlobal and PFG problems as part of the overall system of trying to suppress the metals prices? People got locked out of their futures, and those futures got sold at firesale prices. Extra supply that had to be sold immediately. People who might have held for delivery (e.g. Celente) now have zero and don't trust the futures markets. And who, oh who, could be on the other end of taking these peoples' money? That's right. It is sheer genius, isn't it, Ruprecht?

I'm seeing discussion that all the trade is going to spot now.

tmosley's picture

Turd, did you ever get all of

Turd, did you ever get all of your money back from the MF'inG?  I remember you got at least some.

bam's picture

@Planters

Spot on initial post there and absolutely hilarious second one.   Too funny.

Mickey's picture

Ben and QE

KISS method: 

I think the bottom line is when does Ben think the economy goes over the cliff--and he will QE it before its too late.

To the poster a few up from here discussing the Liberal BS--I have college buds who actually want to see bigger govt to take care of them. There is no discussing issues with them. They believe the govt is here to take care of them.

El Gordo's picture

Easy method of computing necessary stack size

Have you ever asked yourself if your stack is big enough or how much is enough?  Well, here's an easy way to figure it out.  First, add up all your paper and digital holdings, including paper money, stocks, bonds, foreign currency and the like.  Don't forget to include that cash in the safe deposit box that the IRS doesn't know about and other items you forgot to list.  Next, determine your living costs for the next six months, and don't forget to add in the hush money to your mistress and everything else.  Then, subtract the second number from the first number.  If the result is zero or negative, then your stack is big enough.  If it is a positive number, then you are not there yet and should continue stacking.  I'll probably go ahead and sell this program to Turbotax once I get it all programmed, but it's here for you Turdites at no charge.

Magpie's picture

I'm waiting for the headline

to read "indicted" instead of "subpoenaed".  Not gonna happen, IMO.

Magpie's picture

Your stack isn't big enough

until the joists in your floor start to sag.  surprise

Boswell's picture

How about...

If you still have paper and digital holdings, including paper money, stocks, bonds, foreign currency and the like, your stack is too small! ;-)

p.s. Looks like I spoke too soon on that Iroquois thing. ;-(

Bongo Jim's picture

The Well Rounded Stack

Is your stack big enough? Depends what your stackin'. PMs, Food, Water, Guns, Ammo, Meds, TP, booze, cigs, the list is long. Because we're at a place where precious metals are (supposed to be) the main point of discussion, the focus here is stacking PMs (the phyzz).  But, what are we stacking for? A shit hits the fan scenario, correct? What exactly that is or when, no one knows. The end of the great Keynesian experiment, but what happens when that finally implodes/explodes? Deflation? Inflation? Hyperinflation? Stagflation? Bartertown? MadMax?  Probably all of the above at some time or place. The PMs are supposed to help us through whatever happens to get us to the other side of "it," right?  The point of my rambling here is that we don't know what's going to happen, how it will be set off (if ever - a gradual decline), or what happens afterwards. I think a well rounded "stack" is the way to go. What is a well rounded stack (WRS)? It's not 100% PMs. It's a combination of all the things mentioned up top (and more), according to your circumstances and vision of future events. What is necessary? Water, food, shelter. The WRS can help you maintain staying alive to see the "other side," where your PM part of the stack (if there's any left) will keep you going and hopefully have a leg up on those who were unable to stack PMs. 

bronsuchecki's picture

Manipulate Up

The idea MFG and PFG are part of a plan to manipulate prices down doesn't stack up. It might have a short term effect as longs are liquidated, but in the long run all it does is move people away from paper to physical, which I can't see as good for keeping prices down. MFG and PFG make people question the system - surely that is the last thing TPTB would want?

You also need to consider the idea that if there is a "run" on physical, then you can limit the impact of that by having the price rise, see FOFOA:

"So if they want the price to rise in order to stretch the physical side and (hopefully) replenish the GLD puke, they would simply shift some hedges from complex derivatives into Comex."

Or as Victor the Cleaner puts it:

"In order to manage the flow of physical gold, someone might therefore try to manage the dollar price of paper gold. Since the physical inflow is by weight, but the outflow by dollars, one might try to increase the paper price in response to an increased outflow of physical gold and try to lower the paper price whenever there are plenty of reserves. There you go. This is indeed consistent with what we see in our trading strategy: The price of paper gold increases in response to an outflow of physical gold."

Mr.Grey's picture

@ Dr. Jerome

Acceptance of deed completes the transfer of property.  It is a simple process, may take an hour at the courthouse.

http://deeds.uslegal.com/vi-execution-delivery-and-acceptance/

If one does not accept the deed they are considered tenants not owners.

Hold over's picture

I think this analogy sums up

I think this analogy sums up the banking situation pretty good .I can see the cracks ,the pressure is mounting and its only a matter of time.

RaRaRasputin's picture

Superb comment on ZH

We're always waiting for the crash. Waiting for what comes next. Waiting for fraudsters to get jailed. Waiting for presidents to be impeached. Waiting for international corps to get sued, dismantled. Waiting for unethical laws to be struck down. Waiting for the matrix to run out of batteries... or even waiting for the next bubble, hoping for hope, for the next breath.

Meanwhile, that very matrix feeds off our hopelessness. It feeds off our despondency. It feeds on our fear. It even feeds off our righteous anger.

Some think, this can't go on. It will stop, crash and burn by itself. They keep taking part in it, even while they take on themselves the role of the loser.

Others grab their balls in their hands, and say, I cannot let this go on. It has to change. I will fight it! They keep taking part in it, becoming resolute in coming out the winner.

Although one looks better than the other, it isn't. Fighting against the system is falling into the game. The game is conflict; the game is one of negative emotions. Whether you feel fear because you think you are losing, or anger because you think the system shouldn't be allowed to win - in either case you fall into the game, you pick a side. Either you will win or you will lose.

But the game is rigged. You can't win. Not by remaining who you are. The matrix wields much more force than you have power - at least until you actually develop your power, in a way that the game doesn't let you conceive. You'll have to fight dirty. You'll have to be treacherous; you'll have to use violence. By the time you win, you'll have lost; you'll be one of them.

The only winning move is not to play.

Withdraw yourself from that fight; remove the conflict for your life. The world is as it is; there is suffering, there is egoism, there is violence, there is treachery, there is fear. Let it be, raise yourself over the muddy, heaving waters. Fly above the conflict, so that you may remain unaffected.

Then you realize your liberty. You realize your sovereignty; you don't need to be affected, and you only are if you decide to take part. Then you can start fixing yourself, making yourself whole, healthy, holy. You can work to substract yourself of the mechanicalness of it all, of the conditionnings, deep ruts dug in the individuals and the collective, over millenia and millenia. You can become a master of yourself.

Then, once you interact with the reality around you, it won't be as a machine, as a cog, as a prop. You won't be living in conflict solely because the world around you is conflicted; you'll know how to substract yourself from outside influences, how to be your own sovereign; how to be a real actor, a creator of your experience. Instead of the affected, you will be the effecting.

Only then does the real change begin. How can you change something, how can you direct yourself, when you let who you are be defined by what is going on outside of yourself? One second you are someone; with the next changing circumstance you are somebody else.

Find your center. Anchor yourself deeply. From that stability you can go out and explore; you can reach out.

There is real truth in this; real revolution can only start from within. 

After this piece:

http://www.zerohedge.com/news/guest-post-most-often-forgotten-survival-preparations

opticsguy's picture

Stack size

1 oz per person per month you plan to be retired or not working.

Include power tools and tools of any kind.

Have a motor scooter that gets high MPG (150cc or less)

Edit:  1 oz of Au.  The thinking being that 1 oz of Au covers about a months worth of expenses at today's price (and much more than that over human history).

achmachat's picture

Re: Stack size

is that 1 oz of Au or Ag that you're recommending?

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