Hopelessly Broken

The "markets" for precious metals have become a farce. That gold and silver...TRUE, SOUND AND UNIVERSAL MONEY...continue to be valued at the whims of computer trading on The Comex is a disgrace and a complete sham.

This post is not intended to be an overwhelming study of the evidence. My concern here is simply to show you how this works on a daily and intra-day basis. Besides, the late Adrian Douglas left us all with the seminal research on many of these same issues. Just simply Google his name if you want to read more.

The first thing you need to understand is that The Comex metals pits have become a ghost town. Back in the day, humans interacted with other humans and "price" was determined at the intersection of paper supply and paper demand. But now:

  1. The vast majority of trading are electronic transactions, made between HFT computers.
  2. And volume and liquidity have declined dramatically. As recently as 2010, the total open interest for Comex gold was near 650,000 contracts. As of last Thursday, total OI was just 381,000. A drop of over 40%.

And let's discuss #2 further...Much of the open interest disappeared after the MFGlobal disaster of 10/31/11. Once the CME abandoned their fiduciary responsibility to MFG account holders, many market participants left The Comex, never to return. Additionally, many are barred from returning as their Compliance Departments now prohibit them from trading there.

So, we're left with a "market" that has roughly half the participants and liquidity that it had three years ago AND very little rational, human trading. This, of course, is the perfect market setup for the manipulative bullion banks.

Recall the entire, counter-intuitive move from late last year. Once price was manipulated down below the 100-day and 200-day moving averages in February, to continue the slide all the bullion banks had to do was foster conditions that maintained this negative technical picture. The Large Spec HFTs continued to sell paper gold, in the process building up a record net short position and, into this selling, the bullion banks bought and covered. So much so that JPMorgan, the biggest and most destructive bullion bank, has been able to convert what had been a 75,000 contract net short position into a 75,000 net long position, instead. The point here is this: As long as The Bullion Bank Cartel can maintain a negative technical picture, the Spec algo HFTs will continue to sell paper gold and keep price low and we've seen this demonstrated rather dramatically in just the past week.

Recall that, every Friday, the CFTC cranks out what they call the "Commitment of Traders" report. This is an aggregated summary report of the positions of all market participants, based upon a survey taken at the Comex close the previous Tuesday. So, the report we got yesterday reflected the combined positions as of last Tuesday. And why is this important?? Because the main event this week, The Big Daddy, was the release of the FOMC "Fedlines" and remember that those were released back on Wednesday, the day after the latest CoT survey was taken.

And what did we see in this latest CoT report for gold? For the reporting week:

LARGE SPECS: Dumped 2,500 longs and added 7,400 new shorts. Net change = 9,900 net short

SMALL SPECS: Added 100 longs but also added 5,000 new shorts. Net change = 4,900 net short

CARTEL BANKS: Added 3,700 new longs and covered 11,100 shorts. Net change = 14,800 net long

So, in the week leading up to "the most important FOMC headlines ever", the bullion banks led the Specs into selling a net of nearly 15,000 contracts so that they could buy and cover 15,000.

Of course we all know what happened next. At 2:00 EDT on Wednesday, after The Comex had closed for the day, the Fedlines are released. To nearly everyone's surprise (except us in Turdville), no change in the $85B/month was made and the precious metals soared. What happened? Was this new buying or simple short covering? No doubt there was some of both but what can we deduce from the latest open interest numbers?

As of Thursday's close, total gold open interest had declined over 3,000 contracts from Wednesday. The only way price rises while open interest falls is by short-covering and closing of positions. This is what drove prices on Thursday and I have no doubt that this is how it played out:

  • After price had convincingly broken back UP and through both the 50-day and 100-day moving averages, the HFT specs algos were tripped into "buy" mode.
  • This caused a spike in Spec short-covering which the bullion banks used to sell some of their accumulated longs.
  • On Thursday, however, rallies could never get any traction. Spec buying would enter and drive price up, only to see it be almost immediately capped by Cartel bank selling. Several attempts were made to rally but each one was suppressed. It looked like this: 
  • All day Thursday, the same HFTs that were selling last week and building a short position were now buying and building a long position.
  • Having now tricked the Specs into selling last week and then buying on Thursday, all that was left for The Cartel was to foster the conditions that would trick the Specs back into selling on Friday. And that is EXACTLY what they did.

The first attempt to break gold back down came at the regular, appointed hour of 2:00 am EDT on Friday morning. This London-based selling successfully dipped price all the way back down to the 100-day moving average near $1353. When that level held however, more drastic measures had to be employed and, twenty minutes before The Comex opened, we got another blast of Cartel selling which finally drove price down and through the 100-day MA.

(IMPORTANT: How do we know that this is deliberate, manipulative Cartel selling? Simply put, no other entity would summarily dump a large amount of contracts onto such an illiquid market as the pre-Comex. A human, for-profit trader would wait until The Comex open in order to ensure the best possible execution.)

By jamming price back down and under the 100-day moving average, The Cartel had succeeded in setting the tone for the day. The same, brainless Spec HFTs that had so quickly bought and covered on Thursday were flipped back into "sell" mode. With price back below the 100-day MA and then, later in the day, back under the 50-day, too, the Spec HFTs mindlessly sold and sold and, of course, into this selling, The Cartel Banks bought and bought, successfully and profitably covering all of the shorts they had employed in capping price the day before. This is textbook Market Manipulation 101. This is how it works.

And now we're left with gold and silver charts that are clearly tilted lower. Prices will almost certainly decline even further on Monday as additional, technical-based Spec HFT selling comes in. And, as usual, into this selling The Cartel will be buying new longs and covering shorts. Once we get to the point where the spec selling abates or physical supply issues rear up again, The Gold Cartel will sufficiently paint the tape once more to flip the Spec HFTs back into "buy" mode and the whole process will repeat.

The WINNERS = The prop trading desks of The Bullion Banks

The LOSERS = All of the Spec money, both large and small, foolish enough to think that they are participating in a free and fair market.

And now you should be asking yourself: HOW and WHEN will this ever end?

It will only end WHEN the fractional reserve bullion banking system finally breaks. We know that the system is already cracking and unraveling as registered Comex inventories and deliverable ounces per contract have both reached record and extreme levels. See these two charts courtesy of Jesse:

One day in the future, Comex gold trading will simply cease. Trading will stop and all naked shorts will be forced to cash-settle every long at the previous day's closing price. Following that, gold will find a new valuation based solely upon the price level at which market participants are willing to exchange physical metal for some type of other currency.

Until then, the world is forced to continue participating in this current farcical scheme. True, sound and universal MONEY, literally valued for millennia as stores of wealth will, in the meantime, be subject to the pricing whims of a bullion banking Cartel concerned with nothing more than their own profits and survival.

Your only option in this environment is to continue to accumulate physical metal at these deeply discounted prices, while you still can, using the Cartel's tactics against them and assisting in their ultimate demise.

TF

p.s. I discussed many of these topics yesterday with The Doc and Eric Dubin at SilverDoctors: http://www.silverdoctors.com/metals-markets-with-turd-ferguson-fed-monkeys-lose-control/. You can also listen to it here:

 

163 Comments

AgNovice's picture

Furst

I think the current "leadership" of the United States of America is intent on its destruction.

Feinstein continues to undermine the Constitution, this time, the 1st Amendment, wanting to restrict its protections to people employed regularly by the press.

https://www.eff.org/deeplinks/2013/08/why-sen-feinstein-wrong-about-whos-real-reporter

I know shes incredibly rich, primarily due to her husband's ventures, but can't California offer a better senator than Feinstein and Boxer?

arch stanton's picture

helplessly

broken her harlequin hovers nearby awaiting a word

Biochar's picture

Sweet Deal

Ready Made Resources has all their Mountain House freeze-dried selections at 45-70% off while supplies last, free shipping. Can't beat these discounted prices. I ordered a case of Chicken Teriyaki and another of Diced Chicken to go with our freeze-dried veggies and stores of rice.
 
 
Because of Fukushima I made a small investment in Icy Point canned Red Salmon recently (sold locally at BARTELL, and frequently on sale, expiration date currently June 2017). Great addition to Pasta Roni 'shells & white cheddar' for an easy Coleman stove meal (would use water & powdered milk). I probably won't risk buying canned tuna or fresh Pacific seafood in 2014 and beyond.
 
Don't watch a lot of TV, but like football. In trying to save a little money we ditched Comcast cable. Ordered a UHF / VHF antenna from MonoPrice ($18.73) and we now get the basic channels (plus a few others) with flawless reception... no ESPN but if there's a game I really want to see I can go to a sports bar. Have a Roku box (in conjunction with wireless) for RT, Netflix, and Pandora.
 
Eppes's picture

Quatre!

Un deux trois quatre

AlienEyes's picture

Top ten again

4 or 5 maybe?

NEW RULES FOR PEASANTS

It should be obvious that the EE still thinks :

A) Printing money is still job one.

B) Since PM's are at present, the only players left as real alternatives to fiat, they must be savaged and beat into submission to maintain the perceived "value" of fiat. This is therefor, job two.

C) The arrogant peasants (aka: piss-ants) that would dare try to avoid total financial ruin with PM's after the masters of the world and its new world order have ordained the ruin of all except themselves, must pay dearly for their arrogance. Both A and B above are helpful in teaching them a lesson about what happens to wise arses that dare to purchase something of value with our near worthless fiat which we have labored so long to devalue. 

D) We, the rich and unscrupulous, will determine what is of value and what is not. All those that would try to confound our efforts to further enrich ourselves are doomed.

surprise

PS:

The bankster / fat cat in DPH's "PUCK" cartoon in yesterdays thread looks a hell of a lot like a Rothschild. Just say'n'.

Sneed Hearn's picture

The bigger picture

Turd's column addresses just a tiny portion of the bigger picture, which is that the "rule" of law and order in what's left of the states no longer applies at all to the oligarchy. When a country has "law" that is only applied to the unfavored multitudes then it has no law at all. That is where we are and heading lower. If you are so unfortunate as to be sucked into the machinery of "justice," you're screwed as there is no "win or lose," it's just lose, lose more or lose it all. Keep a low profile, folks.

If stupidity got us into this mess, then why can't it get us out? – Will Rogers

El Gordo's picture

It's college football Saturday - just wondering

Does the Big XII still play football?  How many members does it have?  I hear there are some orange floodlights for sale cheap in Austin that have not been used much this year to light the library, and also some coaching positions opening up.  Time to kick back and listen for a while - almost makes me wish I had a TV again.

Orange's picture

This does not look like it will end well!

(CNN) -- [Breaking news 3:18 p.m.] Members of Al-Shabaab -- the militant group linked to al Qaeda that's claimed responsibility for Saturday's deadly mall attack in Kenya -- tweeted that "there will be no negotiations whatsoever" at the mall.

Al-Shabaab also tweeted Saturday that "all Muslims inside #Westgate" -- referring to the Kenyan mall that was attacked -- "were escorted out by the Mujahideen before" the violence began. 

http://www.cnn.com/2013/09/21/world/africa/kenya-mall-gunbattle/index.html

 

MiningJunkie's picture

New Bull Market

We entered a new bull market in precious metals and related equities/miners on June 28th.

This correction is no different than the myriad of selloffs we had in late '82 and early '82 in the S&P/Dow stocks as the skepticism capped the early rallies.

Unlike the period of mid-2011 until late June-2013 where rallies were to be sold, dips are now to be bought.

Aggravating as hell but that is why you scale in to these trades rather than going ALL-IN.

GDXJ is going to $250 per share by 2015.

zman's picture

Gold price smashes

"It will only end WHEN the fractional reserve bullion banking system finally breaks."

Thank you for your brutal honesty Turd, and I do agree.

I guess the only key point is "when",  some think it's sooner than later (1-2 years), or it's still a long way off.

Q...'s picture

by Patrick Kelly (edit: sorry for the bad c&p)

The Petro Dollar

However, things did not stop there by any means. To discover more, perhaps you should consider the following
video at http://www.safeshare.tv/w/gQnBDHTCDswhich states:
Why did the United States attack Libya, Iraq, Afghanistan and Yemen? Why are US operatives helping to
de-stabilise Syria? And why is the United States government so intent in taking down Iran, in spite of the fact that
Iran has not attacked any country since 1798?
And, what’s next? What are we headed for? When you look at the current trajectory that we are on, it doesn’t
make any sense at all if you evaluate it on what we are taught in school. And it doesn’t make any sense if you
base your world view on the propaganda that the mainstream media tries to pass off as news. But it makes
perfect sense once you know the real motives of the powers that be. In order to understand those motives, we
first have to take a look at history:
In 1945, Britain, with agreement, established the dollar as the world’s Reserve Currency, which meant that
international commodities were priced in dollars. The agreement, which gave the United States a distinct financial
advantage was made under the condition that those dollars would remain redeemable for gold at a consistent rate
of $35 per ounce.

http://www.free-energy-info.tuks.nl/

boomer sooner's picture

Top Ten on a slow College

Top Ten on a slow College Football Saturday.  El Gordo, it is sad what is going on at UT.  Everyone has to endure a little pain now and then (except in the metals - constant).  We had our John Blake era in the 90's.  During that period I even skipped a couple of OU-Texas to play golf (Only missed 6 games since 1986).  An amazing game to see in person, especially in the old stadium (except the year when the water main broke outside the stadium and not one pisser could be used in the stadium).  Cant wait for a Fletchers Corn Dog this year at the fair! 

Now for a little metals talk.  Is there any way to find out if actual metal is being moved into the big banks that are taking delivery?  Seems like just a bunch of paper being shredded or accounts being balanced.  Could the contracts not be actual metal, but paper "leased" gold that is being returned?

Edit- just missed a 10er, single digit typer.

FAMYSA's picture

Gold manipulation

Perfect analysis.. keep up the good work and lets hope for an early demise of the COMEX

didier's picture

good post but specs losing money is impossible

Turd, you write the specs are foolish and lose their money.

This is impossible. You know a lot but they know way more. They are not in the business to lose money. It is as simple as that. What a Turd with an MacAir knows the specs know it long before.  THE SPECS ARE FOOLISH TO LOSE THEIR MONEY BUT THE TURD KNOWS IS IMPOSSIBLE  I see two possibilities: they are not losing money or they are not really specs.

Galearis's picture

WOW!

For a year and a half I get pissed on for saying what Turd has just said!  Not just here either.

Congratulations. 

And ANOTHER said: "In the end, all paper will burn!" That's just what he meant and that is what Turd is now saying...And I say, "Great, now let's just move on and watch and interpret those signs of failure. To this end: default news, wherever, draw downs of GLD, SLV and COMEX will be the focus. THE GREAT UNRAVEL is upon us.  For two years the COMEX has been about looting, suppression, and a holding action for the terminal stage - which may or may not involve a bail-in. The bail-in, if it happens, is the final crater.

What you can still jam into your personal vaults is the important thing.

I wonder when the dealers and miners will wake up...To be sure, the latter are victims of government too - in a "permit system" = government permission to speak out will draw punishments. Miners censure themselves and necessarily so...

But the dealers should know better and price their product accordingly. LOTS of bankruptcies ahead for this group, so right now the rush is on to get the metal before the tap is shut...

"Buy the metal not the paper has been the way for at least thirteen years and this is more true now than ever....

CONCLUSION: We have now entered the stage where gold will effectively be increasingly priceless....If you can find the metal at these sham prices; I do not expect this period to last long...When the COMEX ceases to trade, it will CONfirm this officially.

Good one, Turd.

And best regards,

G.

CaribSurfKing's picture

Turd, I know you like Louise Yamada

But she is starting to scare me!

Louise Yamada, chart anlysis expert, says your Gold thesis is possibly wrong! i.e. Gold topped 2011. DOW starting new structural bull market!

Even if its all printed money that is fueling it, her charts are indicating what the last 2+ years in Gold have been telling us!

I still argue that we have negative real interest rates, and Volcker cannot rise from his crypt  and raise rates as we have so much debt, so she is wrong!

However, even she is starting to spook me!

I don't want to wait 20+ years to break even from 2011 highs!

SS121's picture

Is the silver price index running in Madoff Mode?

Excellent post TF!

If it's fake and corrupt then it's TOTALLY fake and corrupt. 

Either that or it's the first ponzi scam in history to only be a 95% farce.

At the end, old Bernie didn't compile research and print up fake trading records!!  He was just printing statements and puttin 'em in the mail!

Is the silver price index now running in Madoff Mode??

If they are in Madoff Mode, they will hope people think it's just Manipulation.

The trolls will definitely want to change the subject away from that question!!

The fiat bankers in pro-Silver/Gold clothing WILL NOT address that!!

Perfectly timed shift T, now stomp on the gas!!

And get ready for a troll frenzy like never before... which, if you know you're firing into the heart of the beast, won't bother you in the least.

foxenburg's picture

Manipulation!

Personally I couldn't give a goddamn who manipulates what as long as at the end of the day they manipulate it up back to where it was when I bought  200 oz of the stuff nearly two years ago (@$1750/oz). No-one's fault but mine. My main beef isn't losing $100k (incl commissions) but the way all this nonsense has hijacked my life - I find myself checking the damned price three times a day and forever going roller coaster rides up and down, good mood to bad mood, though the last year has been mostly monotonously bad news month after month. My wife is fed up and says sell the bloody stuff, take your loss and let's get on with things. I can't be the only one feeling like this. I am so pathetic!!!

CaribSurfKing's picture

@foxenburg Snap!

I have the identical problem! Same timing, same $ loss, same obsession with loss, same depression, same family issues due to obsession with loss etc...

I was hoping to buy a house with a yard for the kids etc... that is not happening due to the last 2+ years! So my kids are suffering due to my timing/stupidity!

The only thing that keeps me from giving up is that, I am not sure it will go lower, and what else do I invest my greatly reduced cash in?

I probably put 2-3 hours in everyday trying to educate myself and have done since 2010 ( when I decided I had 3 years of investment education to start making investment decisions ), so far all that time and effort has resulted in a 30% loss!

Most hear, probably got in in the early 2000's, so they are still up, and pissed off they did not make 10 baggers, whereas we are pissed off because we are down so much!

And now, Louise Yamada comes out and is trying to convince me to sell to JPM ( and doing a good job at it ) that Gold ended in 2011 and its the start of a structural bull market in the DOW!

http://www.financialsense.com/financial-sense-newshour

I am fighting to stay in now, in many ways!

Turd Ferguson's picture

I love Louise but...

MODERATOR

That forecast only makes sense if you think that debt, deficits and derivatives don't matter. It also implies complete faith in the continuation of fractional reserve bullion banking and the global prominence of The Pig.

silverwhere's picture

is this B(I)S or what?

is this B(I)S or what?

Chris Powell, GATA, interview on KWN.

Sharp guy. You'll want to hear his explanation & thoughts.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2013/9/21_Chris_Powell_files/Chris%20Powell%209%3A21%3A2013.mp3

.

Bugzy's picture

Yamada

She uses technical and so do HFT. So yes, she has been fairly accurate at this paper game.

What happens when the paper game ends? Does she have a technical chart for the day there is a failure to deliver? I don't think so - actually she may be able to predict some meaningless paper price; and then there will be the Gold price.

edit: what Turd just said.

edit 2: I have not listened to Yamada yet but it seems she is calling for end of Bond bull too - well does this not suggest an increase in interest rates and an economy to go belly up and then stocks to crash and then more money printing and then more gold demand..... I need to listen to see exactly what she said, later.

CaribSurfKing's picture

@Turd I agree Turd

However, in this case, the Gold investor's only bet now is alot of inflation and a reset of the international monetary system!

Its a big bet, however, history tells us it should be a safe bet!

However, 5+ years and they are still doing it!

Maybe they will pull it off and pay for 30 years of bubbles and debt coming due with printed USD's and we do start a smooth structural DOW bull market!

Anyway, what I thought was a sure thing 3 years ago, is now a bet/hope on economic reality repeating again!

Sigh-Op's picture

A Perspective

If there is going to be a currency reset,When would it happen and how would the insider's position themselves.

I think Jim Willie is spot on with his view of the World Powers jockeying for position in the Middle East.

I believe that Egypt and Syria play a major role in the future of world energy and Russia and America are both not going to roll over on their control of the region, surely John Kerry and all of the world players are in on this game, but they are under pressure to reach an agreement soon, even Assad is getting on board now, Morsi could have been a bad choice and had to be removed.

I would say that to implement a new global reset with sound money ( Gold ) all of the paper players have to be shaken out, that's why we are seeing extreme movements in the paper game.The existing global physical supply has to be evenly distributed around the world. Citizen's hoarding has to be discouraged ( India ) a new currency will be rolled out soon ( Oct )

Big companies would start buying out smaller ones and buying back their own stock.

If trading with this view, how far would you have gone wrong?

Regulators silent, Bankers not jailed, this can only happen if there was a grand plan afoot.

Keep stacking, methinks all of this could be over in a couple of weeks.

CaribSurfKing's picture

@Bugzy Yes, rising rates oppose a rising DOW!

So, here is my confusion with Yamada using charts/history to declare the start of a DOW bull!

In 1981-2, rates at 20% started their 30 years decline with 30 years of DOW rise!

So in 2013, rates are at 0% starting their rise and now we are supposed to have 20+ years of a rising DOW?

Somebody riddle me that one! DOes that mean we start at 0% rates and goto -20% in the next 20 years! If so, how can that hurt Gold!

silverwhere's picture

Turd - a heads up from Jesse

20 September 2013

Gold Daily and Silver Weekly Charts - Triple Witching Hit on GLD and SLV, COMEX Next Week

 

All those happy momentum buyers of paper gold and silver, GLD and SLV, got a stiff gut check today, especially if they were playing the miners and ETFs with options, because gold and silver took a determined bear raid selloff in honor of the September triple witching expiration today. It happens four times per year.

The front month in SP 500 and NDX stock futures is now December. Can you believe it? Where has the summer gone?

Next week is the COMEX futures option expiration on the 25th which is Wednesday. So we might see the usual up and down action around that time.

http://jessescrossroadscafe.blogspot.ca/2013/09/gold-daily-and-silver-weekly-charts_20.html

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DayStar's picture

Harvey's Up!

  • Dr. Paul Craig Roberts: All of the markets, and the solvency of the big banks, are totally dependent on the Fed buying the bonds. If they don’t buy the bonds, then the interest rates are going to rise.  They can’t stop QE because the whole system is rigged-dependent on QE. The other part of the trap they are in is that the longer they carry on QE, the closer they get to the time when the rest of the world loses confidence and starts a run on the dollar.  When there is a run on the dollar the Fed loses control and the whole system blows up. It leaves you knowing that at some point the system is going to collapse, but you don’t know when.
  • Richard Russell: At some point the West is going to wake up and realize that China, Asia and Russia have almost cornered the gold market. In time, the yuan could be backed by gold and be the new world reserve currency. Huge, mind-bending events loom in the near-distance. Keep your gold.
  • Greg Hunter: The Fed is showing it has no exit plan, and if it did cut back on bond buying, interest rates would have spiked even more than they already have.
  • GoldCore on where David Asman asks Dr. Ron Paul: What happens now? If it’s Yellin she'll be like Bernanke on steroids. What does that mean for our economy? Dr Paul: Prepare for the destruction of the dollar and the crash of the bond market one day. The bond bubble is weakening although the interest rates have doubled in the last year.
  • Robin Griffiths:  The charts indicate that a capitulation sell-off has taken place, completing the bear part of a cycle still in secular uptrend. Central banks have been trying to disrupt the bull move but they have simply ended up with nothing in their vaults. They have lent out or sold so much of the precious metal that it would take seven years of production to rebuild their reserves to the levels they were at two years ago.
  • John Hathaway: I don’t understand how the Fed has credibility. The mainstream media worships these people at the Fed, but if you look at their record on forecasting, I don’t understand it. They are in a box.  It's just a mystery to me that people  think these guys (at the Fed) know what they are doing. The Fed now owns 30% of all US Treasuries outstanding. They own an even higher percentage of Mortgage-Backed Securities -- something like 45%. So for the Fed to attempt to back away from those purchases in the future, in any meaningful fashion, poses very serious downside risks to the economy.
  • Grant Williams: If a fall in the markets happens, I think it’s a problem. It’s clear the Fed hasn’t tapered because they are concerned about a bunch of things, but primarily the possibility of a 3% yield on the 10-Year Treasury. If we have dropped ourselves into some ‘twilight world,’ where 3% on the 10-Year is a problem, then I think that’s the clearest sign of the trouble we are now facing.

All this and more on...

The Harvey Report!

http://www.tfmetalsreport.com/comment/352773#comment-352773

DayStar

transplanted baby's picture

when will it end?

Turd, you have said what I have said. The system is based on money (cash) and we are all hooked on it. things will not change until we get off this cash-based system. (Perhaps I should say fractional reserve banking system)

As for when will it end. I will quote from H. Belloc,

Insofar as a society has is industrial (as opposed to agricultural) the bankers will win. (i.e. it will not end)

Insofar as a society is agricultural, the people will win.

If he is right (and I am picturing the developed countries as industrial not agricultural), it is not good news for us in turdville.

FWIW I am with the turdites, but I think Belloc is right.

Bugzy's picture

Depends on why

If you have genuine growth and boom you get higher inflation and hence higher rates. I really do not see this at all.

or

You print too much money and folk sell your bonds because they no longer want to hold your currency. Or they need to attract folk to buy your bonds and then push interest rates up to entice folk in.

Debt is getting bigger. EVERYWHERE!

Transplanted baby - I have read a few of your posts lately and find them troubling - and not because I think you are right.

transplanted baby's picture

the game is rigged

Many submit comments like yours.I think it was Mr Fix who said it is downright hard to stay optimistic when you are on this site. I agree totally. For the most part, I know I am not happy now. And the reason is that I know now that I am playing a rigged game. Whether it is gold. bonds, stocks, whatever, the markets are rigged, with bots, algos, and policy that just doesn't make common sense.

The only thing not rigged is agriculture. And here I am talking about you growing your own. It is between you and nature. No bots, no algos, - I can't discount stupid land policy, though.

I would suggest giving it a try, but in the end the capitalist system forces you out of agriculture. You have to fight to stay in your field.

And so you come down to realizing that we are still slaves, in a way. We have to work to pay for pharoah's projects.

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