Tummy Tuesday

In what has become a habit/necessity of late, just another quick post for you today.

This getting old stuff sure stinks. Today, MrsF is having her first colonoscopy. Lucky her, huh? I had my first several years ago but I don't recall the preparation being so difficult. At any rate, I'll be taking her in later this morning so there is little time to waste.

We didn't talk much about Cyprus yesterday. For one, I wanted to give it a day to settle and I also knew that, if you really wanted to hear what I thought, you could just listen to the Dr Janda interview from Sunday. Now that we've had a day to digest things a bit (no pun intended, MrsF), it seems that things aren't quite as neat and clean as the financial media would want you to believe.

First of all, nothing can be done at this point to restore the confidence that has been lost. Regardless of whether Cyprus is a "template" for future bankruptcies, who in their mind doesn't think that it is exactly that? And, more importantly, who in their right mind is keeping large deposits at major financial institutions in Greece, or Italy, or Spain, or Portugal or...anywhere, for that matter. You'd have to be:

  1. Head-in-the-sand stupid OR
  2. Bat-shit crazy

I mean, seriously. Now that it's been proven that accounts are subject to seizure and confiscation, why on earth would you keep money within that system? Ultimately searching for a store of value with no counterparty risk, the flow of fiat being converted into physical metal will only continue to increase.

And then there's this: It ain't over. Not by a longshot. First, read this from ZH where they report that the windows were left open for funds to be drained from Cypriot banks all last week: http://www.zerohedge.com/news/2013-03-25/have-russians-already-quietly-withdrawn-all-their-cash-cyprus Which was based upon this: http://www.reuters.com/article/2013/03/25/eurozone-cyprus-muddle-idUSL5N0CG13920130325

Not even the European Monetary Magicians can create a "haircut" when there is no "hair" to be "cut". So, today, we have this: http://www.zerohedge.com/news/2013-03-26/cyprus-last-remaining-big-bank-set-unexpected-liquidation

Again, I hope you haven't been fooled by the SPIN and he MOPE. This is not a one-off. This is not in any way similar to a failure at The First National Bank of Bumfuck Idaho, where the FDIC sails in and makes accounts whole and then sells the banks assets to the United Bank of Bumfuck. The ramifications are, and will continue to be, significant and devastating to the future of the EU, the Euro and the banking system as a whole. Have you bought any physical metal today?

Prices continue rangebound for now and, as stated yesterday, will likely stay that way for the rest of this week, albeit with plenty of volatility. As we head toward FND for the April13, keep in mind that:

  • 13,910 contracts stood for delivery during the last "delivery month" of Feb13. This was up from 4,623 in Dec12, 5,178 in Oct12 and 5,807 in Aug12.
  • Harvey Organ has been keeping track of the demand that has materialized for delivery in the "non-delivery" month of March13. Last night, he reported that a total of 13.22 mts have been delivered in March. That's 425,000 ounces or the equivalent of 4,250 Comex contracts. IN A NON-DELIVERY MONTH! http://harveyorgan.blogspot.com/
  • If Harvey is accurate, then we've seen nearly as much Comex delivery demand in March as we saw in December, a month that is typically one of the largest deliveries of the year.
  • And if Harvey is accurate about March and, knowing what we know about February, how many contracts are going to stand for delivery in April?
  • As of Friday, the total open interest for the April13 was still 121,902. It's of course going to come down. A lot. But, how much? We'll see...

Here's a gold chart for you. Not much to look at but it appears that, as long as price hovers above $1585, there's always a possibility for a spike toward $1615. And remember, nothing significant will have happened until you see price back above $1626. Everything else is just noise.

On the flip side, though silver has now been rangebound for over a month, bored Turdites may see the opportunity for a trade in these silver charts. Whether you're looking at the past month, the past three weeks or just the last six days, it's quite obvious that silver is catching a bid (could it be our old-reliable BoS?) every time price reaches down to $28.60.

OK, I've reached my time limit so I'd better sign off. I'll be sure to check back in later today but, until then, be nice to each other and have fun.

TF

331 Comments

Double Bogey's picture

It's a crazy time

to have cash in any bank. Nervousness is spreading.  We need to keep spreading the word people.

Double Bogey's picture

oh, about that first and second thing...

I've got gold and silver today. Woo hooo

Mr. Fix's picture

I'll take that as a close second.

It's official, Time to start my day, off to work.

Turd Ferguson's picture

Oh, and I almost forgot...

MODERATOR

Here's the latest from Jim Quinn: http://www.theburningplatform.com/?p=48749

Hammer's picture

hehe, there goes the Eur/usd

hehe, there goes the Eur/usd pair for today

achmachat's picture

phew...

I was going to ask why you didn't mention that we should keep stacking, but then I read this:

Have you bought any physical metal today?

I haven't yet, but I have added shiny to my online basket, waiting for the right time to pull the checkout trigger.

does that count?

waxybilldupp's picture

What is the problem?

What is the matter with you people?  I just got caught up on the last 2 threads and I can't believe how much gloom and doom there was.  You would think the world really was coming to an end just because a couple banks in Cyprus blew up.  Look around, for cripes sake!  The DOW is up another 100 and the S&P is closing in on a "world record".  What could be more important?  What could be a better indicator of the soundness of the global economy?  The US stock market IS the world economy, you know.  The Bernank says so.

And, gold and silver are lower today.  Clearly this is an indicator that fiat currencies around the globe are a better value.  Get over it folks.  All is well.  Nothing to see here.  Move along.

If I was the MOPEr in Chief, I would be expecting one hell of a nice quarterly bonus come April 1.

sarc/wax off

sengfarmer's picture

top ten?

Another day another beating?

pickaxe's picture

Cyprus scare driving up stock markets?

Let's face it: The big banks don't give a rat's ass about small savers anymore.

In fact, they often treat us like we're more trouble than we're worth - just look at Katie's recent experience with Chase.

Could the Cyprus crisis have been created and manipulated in order to drive small savers/investors from the entire Western World out of their small bank accounts and into stock markets as a means to buoy the bourse and perpetuate the current myth of a somewhat robust recovery in Global economies?

We certainly can't put it past TPTB to take such an approach, with the thought that new money searching for a home may serve to bolster toppy markets a little while longer, to allow looting to continue...

Hammer's picture

Eur/usd is doing a big V

Eur/usd is doing a big V formation. Someone is seriously propping up the euro today on decent volume indeed.

treefrog's picture

multiple stabbings in pittsburgh

http://pittsburgh.cbslocal.com/2013/03/25/multiple-people-stabbed-at-east-liberty-target/

we need a national database of all knife owners!  background checks on both bride and groom before you can give cutlery for a wedding gift.... 

obviously, not enough concealed carry permits in pennsylvania.  if that loon tried that around here, somebody would shoot him.  probably several somebodies.

Patrancus's picture

This beating is nothing

This beating is nothing compared to what is likely coming, get! prepared. 

http://www.examiner.com/article/army-officer-obama-s-dhs-intends-to-kill-you-and-me

Hammer's picture

Meanwhile (Reuters) -

Meanwhile

(Reuters) - Citigroup Inc entered into a consent order with the Federal Reserve to improve its anti-money laundering controls, after several units of the bank were subject to similar orders in 2012.

Hammer's picture

is what caused that little

is what caused that little bit of fun. 

"Deposits below 100,000 euros are protected ... deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in," Hokmark told Reuters, adding that he was confident a majority of his peers in the parliament backed this line.

The law, which will also introduce means to impose losses on bondholders, is due to take effect at the start of 2015. Germany wants provisions for bailing in bondholders and others in the same year, though that may be delayed.

The European Commission wrote the first draft of the law but left it to member countries and the parliament to decide whether and when savers should face losses, when a failing bank is being salvaged or shuttered. Earlier on Tuesday, it said only that such a step was possible.

http://www.reuters.com/article/2013/03/26/us-eu-savers-idUSBRE92P0NZ20130326

second euro wave hit coming.............

Monedas's picture

Tuff Turds !

The hardest part of a Sig .... er .... colonoscoop .... pooper snoop .... is getting that thin smear .... from different parts of the stool .... into those little boxes .... with those little Good Humour sticks !  I'm quite the artiste .... and the stool card is my palette ! The trick is to transfer from the TP .... don't go dumpster diving .... or bobbing for logs .... they roll over and contaminate the sample ! The easiest part is smearing a little on the mailer flap .... so it won't come unstuck .... and the odor helps expedite your order !       Monedas     1929    Comedy Jihad Gold Is Going In The Toilet .... Just Kidding .... My Bottom Pick Is Untouchable World Tour    devil  PS:  Bollocks, I thought you were from Sheepfuck, Scotland ?

Bollocks's picture

Bumfuck Idaho?

I've been there.

Never going back.

BagOfGold's picture

Once again...I am lost for words!...

What does this all mean?...Let's have a caption contest!...Anyone who can find the right words...will be rewarded with a prize!...HINT: Make sure to have an avatar to claim your prize...& there will be more than one winner!...

I am lost for words!...

Let the contest & fun begin!...Please come to my thread to enter the contest...& claim your prize!...

http://www.tfmetalsreport.com/comment/287210#comment-287210

See you there!!!...

Bag Of Gold

old tradesman's picture

Bumfuck Idaho?

Isnt that part of the plan?   Until the smoke clears?

SIlverbee's picture

Bill Murphy

is now calling it in a month

SilverSurfers's picture

gata

Bill is pretty good, actually.

So, where is the dark one? I miss him. In therapy? donno

@ patrancus

With the massive purchases of almost 3,000 new armored vehicles (MRAPs) and 1.6 BILLION rounds of ammunition, with associated weapons, who in the U.S. do they intend to kill? Short answer: You and me! Anyone they think is standing in their way to impose a new Marxist government! Anyone who stands for the U.S. Constitution!

ok ok ok, abrams M1 on wilshire blvd, might be a bit too much, you know, like really freakin crazy. So, lets modify the end of days scenario, and downgrade to a bradley.

http://en.wikipedia.org/wiki/Bradley_Fighting_Vehicle

wait a minute.

A tank is a tracked, armoured fighting vehicle designed for front-line combat which combines operational mobility and tactical offensive and defensive capabilities.

The Bradley is, by definition, a tank. There you have it. Straight from

http://en.wikipedia.org/wiki/Military_tank

So, tanks on Wilshire, still in play. wheewwwwws, that was close, almost caused to be deemed crazy, again.

Yikes, here is a picture of the DHS armour vehicle. it has NO TRACKS, hence not a tank. Back to crazy again.

http://www.examiner.com/article/dhs-orders-nearly-3-000-mine-resistant-armored-vehicles

Mine resistant? you're kidding me, for US domestic operations? Someone in the industrial-military complex must be hurting, with the sequestration. Now, why o why would they buy MINE RESISTANT armour vehicles, for the streets? Either its a total mis allocation, or someone expects siege operations in mass in the streets, not just crowd control, but honest to goodness siege warfare. So, under the disperse defensive, putting platoon size DHS amour vehicles in major cities, they must assume that waves of street bombs will be planted. Maybe they expect a wave of terrorist, when Iran goes up in smoke, donno. But it seems, that mine resistance would be after the fact of foreign wave of terrorist attacks. Conclusion, its crowd control, preparing for street siege operations. Could be just wanting rubber on the roads.

===

cyprus, keep your antennae up, for street dealers, exchanging bullion coins for paper money. and post it quick.

=== From mainstream Gold Eagle, shocking as being posted at gold eagle.

What we need is a peaceful, all out refusal to file taxes to  get the attention of our politicians that we aren’t going to pay for their ridiculous and never ending programs, bailouts, retirements and medical insurance while we are stuck with Obama care!

http://www.gold-eagle.com/editorials_12/lewisr032513.html

Road_Scholar's picture

Bank runs

to begin in Europe and abroad any day now.  Just don't expect to hear any news on it...Maybe some on the ground can comment on what they see.  Where are the big deposits going to hide?  Hmmm, what is a traditional store of value, that is divisible, doesn't erode over time, stores easily, etc?  hint:  they're shiny!

billhilly's picture

Turd question....

comment self-deleted...made in poor taste.

Antony von Clearwell's picture

on top of that...

the Dutch Dijsselbloem, pres of the Euro group and former finance minister first told the whole nation (Holland) that other countries should take a lesson out of 'his' financial leadership and that the Dutch banks were liquid and secure.... Then SNS/Reaal needed help.

Today he told Europe that Cyprus could/would be a template for other countries and banks. He had to recall this statement! He informed the news that he couldn't remember using these words and he didn't know the term 'template'.... uhuh. Sorry guys.... the Dutch cannot longer be trusted :)

Who's next? place your bets!:

* Spain (Bankia)

* Italy?

* Portugal?

treefrog's picture

another choice

Who's next? place your bets!:

* Spain (Bankia)

* Italy?

* Portugal?

*all of the above!

lamare's picture

Re: on top of that...

"He had to recall this statement!"

All he recalled is that they intend to use "a template". He said all situtations are different, which is true of course, since in other countries there may be more than 2 banks, etc.

However, he did *not* recall anything about the actual *contents* of what he said, which is that the tax payers are the last ones to pay as off now. So, it's essentially just SPIN that he recalled his statement. 

No "template". Just "more of the same" with the some flexibility. Bottomline is: deposits are not safe, especially above 100 grant, in those cases they cannot get by by haircutting the stockholders, bondholders, etc.

ZH did publish the full on te record interview:

http://www.zerohedge.com/news/2013-03-26/what-dijsselbloem-really-said-full-record-transcript

And indeed, he did not use the words "template" nor "blue print". 

But he did say:

If risks are going to be priced, then that is probably the right way to do it. It will force all financial institutions as well as investors to think about the risk they are taking on. They will have to realise it may also hurt them, the risks might come towards them instead of pushing them away.

Once again, all he retracted from was basically from using the word "template"....

Hammer's picture

Yes but then today a

Yes but then today a different EU guy came out and said this (as I posted earlier)

http://www.reuters.com/article/2013/03/26/us-eu-savers-idUSBRE92P0NZ20130326

Road_Scholar's picture

When does a new military event start?

always the best distraction to keep everyone occupied and it adds to the nationalism.  North Korea, Afghanistan, North Africa, Iran, Syria.  I can just see a General spinning a wheel in an office and everyone put chips on a table...Debka have anything new?

Just A Regular Guy's picture

I think that place in Idaho

Has a sister town in Finland called "You Stinkey".

Bollocks's picture

Cyprus to bring in weekly cash curbs

_66616488_66616487.jpg

The BBC's Paul Mason: "Every figure in this document has the word 'euro' and two x's"

Cyprus finance ministers are planning to impose a weekly limit on cash withdrawals, the BBC has learned.

The country's draft capital controls include export limits on euros and a ban on cashing cheques, says Newsnight economics editor Paul Mason.

In addition, fixed-term deposits will have to be held until maturity.

Cyprus's finance minister earlier confirmed that depositors with more than 100,000 euros could see 40% of their funds converted into bank shares.

But Michalis Sarris also said that Cypriot depositors with less than 100,000 euros in their accounts "will not be hit".

"The exact percentage is not... yet decided but it is going to be significant," he told the BBC.

Bank of Cyprus chairman Andreas Artemis later handed in his resignation.

http://www.bbc.co.uk/news/business-21936554

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