Nothing Done

As expected, the politically-handicapped Fed announced nothing new today. I'm left wondering what the heck The Bernank and his minions actually did for the past 30 hours. Probably hung out by the pool and knocked back a few pitchers in the hotel bar. A late morning start today after overdoing it at The Capitol Grille last night. Then, adjourn early in order to catch the next flight home.

Whatever, much ado over nothing which has allowed The Cartels to (predictably) game the specs. Run prices UP last week. Run prices down this week. Reverse tomorrow on the ECB or Friday on the BLSBS. Finish the week neutral and unchanged. We'll see.

Rather than give you a Fedline rundown, I figured I'd just C&P the bullets from ZH. Here you go:

  • FED SAYS IT `WILL PROVIDE ADDITIONAL ACCOMMODATION AS NEEDED'
  • FED REPEATS EXCEPTIONALLY LOW RATES AT LEAST THROUGH LATE 2014
  • FED SEES INFLATION OVER MEDIUM AT OR BELOW MANDATE LEVEL
  • FED TO KEEP REINVESTING HOUSING DEBT TO MORTGAGE SECURITIES
  • FED SAYS HOUSING SECTOR REMAINS DEPRESSED

Nothing about ZIRP. Nothing about Twist. Nothing about QE. <yawn>

And here is another look at the daily charts, this time showing the long-term ranges, within which we continue to be stuck.

And the grains are trading almost exactly as hoped. Once they broke last Monday, we knew a rally would come that would either create a double top or a lower high. With that behind us, I expect more weakness as the current forecast calls for patchy rain and somewhat cooler temps. That said, look at this map:

And the 7-14 day forecast shows a return of the heat wave...and it may be even worse than early-mid July. For now, I'm standing aside but, if we can get some follow-through selling that takes corn down to or even below $7.50 and if beans can fall toward $15, I'm going to have to buy in. The damage is already done in corn and a new heat wave next week could seriously cripple soybean production. Needless to say, I'll be watching this closely in the coming days.

OK, that's it. The week is far from over so don't go throwing your hands in the air in disgust and walking away. Tomorrow will be very interesting, too and, of course, Friday will be Friday. Hang in there and have a great evening. TF

263 Comments

California Lawyer's picture

First

No way?

TitanAe's picture

Thank you !!!!

Thanks Bernake !!! I love shorting the market its much more easier !!!

lodmund's picture

gold always falls within a

gold always falls within a couple of days of Alf Fields publishing one of his daft EW projections claiming that a massive rally is just around the corner

QE to infinity's picture

2nd?

Top fivewink

California Lawyer's picture

You Know, the Childish Glee is Cathartic

I can join the ranks of those lucky enough to log in at exactly the right time to claim their "First" position trophy.  This reminds me of childhood.  We had a little bicycle race track, that we all rode our bikes on.  It was no big deal, just a dirt trail, some jumps.  But let me tell you, getting bragging rights was something else.  Especially in an Olympic year.  

And the Gold Medal goes to . . .

<choking up, struggling to mouth words through the joyous emotions flooding the moment>

I would like first thank the TURD, for making this all possible . . . 

Ok, silliness over.  Thanks for indulging me.  If you put me on ignore for this, no soup for you.

Mike's picture

Seems

Like they are waiting for something.

What do they know, we don´t.

Maybe a big event around the corner that will give them cover to do what they will do.

Big Dutch's picture

KIND OF BIG DEAL?

Am I the only one that thinks the Fed saying:

"will provide additional accommodation as needed"

VS

"Committee is prepared to take further action as appropriate"

at the June meeting is a big deal? Every change means something.  They're saying there WILL be more QE vs. saying they're prepared to provide more.  Would have thought people would make a bigger deal of that.

GoldMania3000's picture

@KIND OF BIG DEAL? yes big dutch you are right

Jim Rickards@JamesGRickards

My translator says "will provide additional accommodation" = "whatever it takes."

bern's picture

Paul Subcommittee to Examine

Paul Subcommittee to Examine Sound Money and Parallel Currencies

Congressman Ron Paul, Chairman of the Domestic Monetary Policy and Technology Subcommittee, announced today that the subcommittee will hold a hearing to examine sound money and parallel currencies.

“The American people have suffered for decades from the declining purchasing power of the dollar.  The Federal Reserve has abused its position as the monopolist issuer of currency to enrich Wall Street and impoverish Main Street,” stated Chairman Paul.  “The Fed can effectively create money out of thin air with impunity, while creators of gold and silver currencies face jail time. This is a travesty.  The only way to stabilize the economy is to return to monetary freedom by legalizing Constitutional money.  Until the American people are free to choose the money they want to use, and not what the government forces them to use, the economy never will be truly stable and any recovery will be illusory.”

The hearing, entitled “Sound Money:  Parallel Currencies and the Roadmap to Monetary Freedom,” will be held on Thursday, August 2nd, at 10:00 a.m. in room 2128 of the Rayburn House Office Building.

Witnesses scheduled to testify:

  • Dr. Richard Ebeling, Professor of Economics, Northwood University
  • Nathan Lewis, Principal, Kiku Capital Management LLC, and Author, Gold: The Once and Future Money
  • Rob Gray, Executive Director, The American Open Currency Standard

http://paul.house.gov/index.php?option=com_content&view=article&id=1998:paul-subcommittee-to-examine-sound-money-and-parallel-currencies&catid=63:2011-press-releases

The witnesses submitted some written documents for the hearing:

Ebeling:  http://financialservices.house.gov/UploadedFiles/HHRG-112-BA19-WState-REbeling-20120802.pdf

Lewis:  http://financialservices.house.gov/UploadedFiles/HHRG-112-BA19-WState-NLewis-20120802.pdf

Gray:  http://financialservices.house.gov/UploadedFiles/HHRG-112-BA19-WState-RGray-20120802.pdf

Link to live stream (supposedly):  http://mfile.akamai.com/65722/live/reflector:36166.asx?bkup=36167&prop=n

thurd aye's picture

Am I the only one who wants

Am I the only one who wants to know what has happened to Number 47? He is one of us and could very well be in prison by now.Has he been to court ? '47' let us know please what your fate is,or when you have to attend court.And did you get your good hammer returned to you?

:o))

agrock's picture

Yamada - Gold & Silver at Critical Points in This Cycle

With gold trading near the $1,600 level and silver below $28, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada’s “Technical Perspectives” report.  This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/8/1_Yamada_-_Gold_%26_Silver_at_Critical_Points_in_This_Cycle.html

Cleburne61's picture

About that golden tie...

Guys, is it even remotely possible, that Bernanke is wearing the golden tie.....because he likes gold?

It's Bix Weir's mainstay....Greenspan loves gold....why wouldn't his hand-picked successor love it too?  We all agree they've wrecked the economy, but the "why" is the only question unanswered.

I'm not saying Bix's theory is 100%, I have no idea...I'm just seeing a ridiculous number of coincidences.  Who'd have thought that TPTB would've ever "allowed" LIBOR revelations to surface in the first place?  Or Greece to have a CDS trigger?  Or the CFTC to pass position limits, or define the word "swap"?  Or that the United States' AAA credit rating would be revoked by any ratings agency? 
 

The Turd himself even doubted that most of that stuff was going to happen......until it did.  He expressed shock at all those events.  I too was skeptical, but it all happened.  So....why not, for the sake of hope, just adopt a "wait and see" approach, while acknowledging that "there's somethin funny goin' on here, Loozie".  And for heaven sakes, whether the theory is true or not.....keep stackin!

exiledbear's picture

Meanwhile bitcoins are $9.50

From $5 back in April, they look like they're going to double in "price" soon. But I don't think BTC are actually worth any more than they were back then. What I do think is that people are rapidly losing confidence in their paper currencies.

The only reason gold hasn't doubled since April in the same timeframe is active suppression.

One day they'll get overrun and gold will go farther and faster than if they had just left it alone.

balz's picture

Bix is a nutcase and is doing more harm than good

Nuff said.

madcow's picture

Considering corn etc.... as well but....

Been considering jumping on this corn/food action from the heat wave but have no clue were to begin. Is there a basket of stocks one can choose... or any good solid corn producers that should be chosen?

Airgead's picture

Nope...

I just came back from sailing, where I found out I need 6 new batteries: about 2000 USD.
I thought the price of silver and gold could cheer me up: how wrong I was...

babaganoush2307's picture

@ Madcow

Same, how do we jump on that train...?

Torpedo Fish's picture

@Cleburne61

/// Bernanke is wearing the golden tie

When was he wearing that ? Today  ?

ancientmoney's picture

@lodmund . . . gold always falls . . .

I really do not think any conventional TA, including Elliot Wave theory, can tell us where the price of gold is going, or when.

We are in the process of a sea change.  Gold is going to become money again.  The current manipulations through the paper market are designed to keep gold and silver prices corralled until the paper systems designed for "commodities trading" of gold and silver are allowed or forced to die.

When gold and silver were money, they were not traded on any commodity futures exchange.  When the government decided they didn't want competition for their fiat from constitutional money, then gold and silver were relegated from money to "commodities."

While this change from commodity to money is happening because the physical is disappearing, so long as there is enough physical to prevent default, the current system exists.

My guess is that the reason the CFTC has indicated the silver investigation will end in September is because they see a default occurring by around that time.  They will waltz in and determine that in the security interests of the U.S. that silver (and gold) trading will be halted for the foreseeable future.  Other bourses like London will follow suit.  The big ETFs like GLD and SLV will terminate operations, and cash out their shareholders as of the price of the day previous to the halt.

There will be confusion for several days, but physical will unlikely be offered for sale by dealers for some time following, until the fallout is known.  Maybe not at all, as there could be some new currency control announcements and/or bank holidays for awhile, until a new way to deal with the burgeoning debt is created and put into effect.

Physical gold and silver will then be set free, or locked down entirely, at least for awhile--not sure yet.

I can't see any other way, since the trends indicate drawdowns of physical that cannot be maintained.

tobydaniel's picture

The Fed is EASING!

What the heck Turdites! The Fed is easing and printing money and holding interest rates artificially low all along. Why do you guys look to what the Fed is going to say? They are already doing everything that you want them to do. Call me crazy but you guys are starting to scare me a little. Absolutely nothing will happen till after the elections. And PLEASE Turdites, review history. Gold and silver did just fine without the Fed overtly doing QE. They will manipulate this thing till they turn blue in the face and then some. In the meantime, you guys should all get jobs, as well as me, as painters. We really seem to enjoy paint drying for some odd reason:)

ggnewmex's picture

Bernank

Bernank with the gold colored tie.

He is quite literally rubbing our collective noses in the mud isn't he.

We know that he HATES gold, that he thinks it is tradition, and not real money. He had to know what his decision would do to the PM markets, and he is saying quite literally, "SCREW YOU".

It was said, " absolute power corrupts absolutely" He is the poster child for that saying. He knows that he is above all of us, and that we are powerless to do anything with his schemes. Will China ( a communist country.... wow, amazing they are the likely honest ones, who would have thought???) bring the Bernank to his knees?

Time will tell

Til then, I got to go find my stack, lost it is an accident

tyberious's picture

todays Bix

Stunning Blow to the Bad Guys From None Other Than Harry
Reid

Bix Weir
Printer-Friendly Format


  

After getting loads of emails last week from subscribers about how I was wrong and that Harry Reid is a "Bad Guy" and that my theory that he will ultimately bring the Audit the Fed Bill to the floor of the Senate for a vote was "a load of bull ---" Senator Reid has just laid a fatal blow against the Bad Guys!

Harry Reid's Wild Speculation About Mitt Romney's Unreleased Tax Returns
http://news.yahoo.com/harry-reids-wild-speculation-mitt-romneys-unreleased-tax-215329613--abc-news-politics.html

"Senate Majority Leader Harry Reid, D-Nev., said that he's heard that Romney did not pay any taxes for 10 years."

"He didn't pay taxes for 10 years! Now, do I know that that's true? Well, I'm not certain," said Reid. "But obviously he can't release those tax returns. How would it look?

"You guys have said his wealth is $250 million," Reid continued. "Not a chance in the world. It's a lot more than that. I mean, you do pretty well if you don't pay taxes for 10 years when you're making millions and millions of dollars."

Why is this sooo big?

Because of it's ramifications. Romney is swimming in a pool of gasoline and Harry Reid just tossed a blow torch in it! I don't know what Romney's tax returns look like but there is only one way that he can avoid disclosing them now...HE'LL HAVE TO DROP OUT!

And who is waiting in the wings...RON PAUL!

Yep. It's all happening exactly according to plan.

For those who think Harry Reid made these comments to weaken, but not destroy, the Romney campaign in order to help Obama and the Democrats - you need to think again. Reid knows that it is NOT in the best interest of the Democrats for Romney to withdraw. He knows that if Ron Paul was ultimately the Republican nominee he would get all the votes of the Republicans, all the votes of the Libertarians, all the votes of the Independents, all the votes of anti-war Democrats...and on and on. He would BLOW OBAMA OUT OF THE WATER RUNNING AS THE REPUBLICAN CANDIDATE.

Reid KNOWS because he's been working with the Good Guys for decades and it is NOW time to take the "Evil Doers" down once and for all.

For you Private Road Members here's what is about to happen!

SPECIAL REPORT: Confirmation From "The Insider"
http://www.roadtoroota.com/members/406.cfm

It's ALL happening my friends.

We will be free again!

Bix Weir

www.RoadtoRoota.com

Short Stack's picture

Bernanke doesn't hate...

Bernanke doesn't hate gold.  Bernanke doesn't hate silver.

Bernanke hates us Stackers !!!

(Crimie !, even my daughter figured that one out.)

Zoltan's picture

@Airgead BOAT=Break Out Another Thousand (or two)

Losing your stack overboard is not the only way boats cost you money.

You won't need to claim a boating accident if they come for your stack, just claim your boat, or as many kids as you may be responsible for (those suckers are expensive as well).

Z

Airgead's picture

@ Zoltan

LOL! smiley & How true!

(edit: I think this  perhaps Neglish, Netherlands English, it probably should read "Very true!")

California Lawyer's picture

Bix Weir Jumped the Shark

Sadly, Bix has lost all credibility in my mind.  Link is here.

Bix jumped to conclusions, claiming Harry Reid is one of the "good guys."  Bix believes that Reid is dumping on Romney to force Romney to drop out of the race rather than disclose his tax returns.  Bix believes Romney will now drop out of the race.  Really?

Where is Bix weighing in on this JPM stuff, or LIBOR?  When is Ron Paul going to pick Sarah Palin, and claim the Republican nomination?  Does anyone believe this stuff?

Harry dumping on Romney is right out of the playbook.  It happens every year.  Romney will stall, then release his returns, the democrat operatives will use them to disparage Romney's great wealth, which Romney will use to show he is a better Presidential candidate because Romney is better suited to run things than Obummer, which the hefty net worth demonstrates. Yawn.  Same old same old.

I personally met Harry at a swanky Vegas gig.  Harry has the softest hand I have ever felt.  He is small, diminutive, very soft spoken, and has very small, tiny hands.  I am six feet, 200 pounds, and if I wanted to, I could have crushed Harry's hand simply by squeezing just a little tighter.  He is NOT a good guy.  He has been a connected insider for decades.  Harry is not about to relinquish power.   Not now, not ever.  

Bix needs to slow down on the bath salts, before he goes all cannibal on someone . . .

small_potatoes's picture

Not that my opinion counts for much,

but I have hunch the Fed is patiently (or impatiently) waiting for the kickoff of WW3. That would be a "stimulative" event, wouldn't it?

I Run Bartertown's picture

Sweet Harry Reid

http://washingtonexaminer.com/harry-reid-drooling-old-men-are-trying-to-buy-election/article/2503720?custom_click=rss

“They are going to assemble 17 angry old white men for breakfast, some of them will slobber in their food, some will have scrambled eggs, some will have oatmeal, their teeth are gone. ”

Haha! Did La Raza make Harry an Honorary member? That sounds like their rhetoric.

Turd Ferguson's picture

Crazy gold OI

MODERATOR

Total OI in gold fell to 403,403 yesterday. The lowest level since 4/25/12.

For the CoT week, price rose $34 (+2%) but total OI fell 17,000 (-4%). Should be a very interesting CoT on Friday.

Fat Willie's picture

Crazy Bix

Man I gotta get some of what he is smokin...... That shit is goooooood. Call me Mr. Choom.

FW

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