We've often documented here the obvious Fed Goon strategy of jawboning and lies in an effort to prompt the "markets" to do what they'd like them to do. The ridiculousness of yesterday may have set a new standard by which future verbal interventions will be measured.

With some time to spare this morning, I thought I would just double back and summarize the events of yesterday:


So, the world waits with baited breath for Mother Fellen to give her all-important speech at Jackson Hole. The text of the speech was released and Mother began speaking at 10:00 am EDT. The headline-scanning algos had a field day for the first few minutes as the message The Fed wanted to portray was in the headlines. The Pig rallied. The USDJPY spiked. Bonds sold off sharply and gold was clipped for 1%.

But a funny thing happened on the way to the market manipulation. It took a few minutes but, eventually, some actual human beings read the body of the speech and noted that the title was deceiving. Oh sure, The Fed "stands ready to raise rates again soon" but how about the stuff about also standing ready to feed another few TRILLION into the markets at the first sign of the next crisis? Suddenly, everything reversed. The Pig fell. The USDJPY puked. Long Bond rates rallied 6 bps in a matter of minutes from 2.27% to 2.21% and gold shot from $1325 to $1344.

At that point, I was typing a new post and, rather prophetically, added this passage:

"After spiking on the initial "news" at 10:00 am, the USDJPY has fallen backward and, as you can see, it is once again clinging to the 100 level. At this point, it wouldn't surprise me if Mother has a bud in her ear giving here tick-by-tick updates so that she can adjust her massage on the spot. Absent that, perhaps this sucker will actually finish the week perilously close to 100?"

Well, of course, Mother doesn't have a bud in her ear as just simply sticking to and reading the prepared text is about all she can handle. So, what did The Criminals do in order to reverse the action since the weren't getting their desired response? They immediately called up LIESman and had him interview Goon Fischer. The sycophant CNBS jumped at he opportunity to have the Fed #2 on its air and the rest is history.

Don't you see how this works? It's exactly as we discussed when the latest FOMC minutes were announced. This is all about manipulating the markets and coercing them into giving The Fed the reaction that The Fed wants. At the end of the FOMC in April and again in July, The Fed released a statement that summarized the meeting. When, three weeks later, the "markets" hadn't responded the way The Fed wanted them to respond, The Fed released alleged minutes, created from whole cloth, in a blatant attempt to reconfigure a market reaction more in the direction they had originally desired.


Mother's speech and all the hype and build-up that accompanied it was supposed to rally The Pig and break down the bond market into higher rates. When instead the opposite happened, Goon Fischer was immediately summoned to change the narrative...again, just as if Mother had had that bug in here ear to make changes to her speech on the fly.

This is also precisely why you get the seemingly endless parade of Fed Goon after Fed Goon blasting away with jawbones, often contradicting each other and sometimes even themselves on a day-to-day basis. All The Goons have is the Fed Funds rate and this jawboning process and, as they are desperate to keep all of their plates spinning, they milk these "tools" for all their worth.


We're all getting conditioned. Do you know what that means? Did you ever take Psych 101 in college? Here's a general definition of operant or instrumental conditioning:

Whether "market participants" and the general public realize this or not, this is precisely what The Fed is attempting to do to them. This is why CNBS, BBG, the WSJ and every other media outlet has convinced everyone that we all need to hang on The Fed's every word, as if they are this omnipotent, all-powerful and altruistic organization. The goal is to "condition" everyone for the future.

And why is this so important? Because the next time the markets collapse (and we all know this is coming), the investing and general public will be fully in support of anything The Fed proposes to save their member Banks and, thus The System. I mean, who would argue at that point? The Fed and the media have spent years now convincing everyone that The Fed is all-powerful and never to be doubted. So when the SHTF again...AND IT WILL...the masses will gleefully accept whatever destructive nonsense The Fed proposes to "rescue" everyone!


And, frankly, this is why I simply can't get angry anymore when I witness days like yesterday. Oh sure, would it have been nice to be 100% correct and have both metals finish UP on the week. Of course. And was it frustrating to see the utter BS wipe out any potential profits and drive the calls I bought early last week to near zero? No doubt. But in the end, I'm mainly just angry at myself for foolishly thinking I could out-trade The Fed at this time. I violated the primary, #1 rule that I vowed to follow when I resumed some light trading in 2015. That rule:

Consider the trade idea. Weigh it versus the chart trend. But then, more importantly, weigh it versus what The Banks and The Fed want to happen. If all three line up, then make the trade. If not, expect to get your butt kicked. And here I am.

Meh, whatever. At the end of the day, all of this Banker desperation just proves again the central mission of this site...Preparing for the end of The Great Keynesian Experiment. If The Fed wants to push The Pig and interest rates higher in the short term, I say we let them. They may win some daily and hourly battles, but they are doomed to defeat in the much larger war. To that end, my stacks of gold and silver are just as beautiful and lustrous as they were last week, last month and last year. All additional time they give me to add to those stacks is truly a blessing and I will use that time to continue to prepare accordingly.



Turd Ferguson's picture

The atmosphere of Turdville


I've noticed recently an increasingly harsh tone oin the comments of these threads. This happened as the election of 2012 approached and it seems to be happening again now. It hasn't reached the level of "bullying" just yet but it's getting close and I simply won't stand for it. This site is NOT Yahoo or Shitco. We respect others here and we don't use the veil of anonymity to harass or shame competing opinions.

Why? Because what we discuss here are OPINIONS. Oh sure, you may strongly believe that:

  • Hillary is the spawn of Satan
  • The Tri-Lateral Commission runs the world
  • Chemicals are being sprayed at high altitudes
  • Global warming is going to kill us all
  • Etc Etc Etc

However, these are just your personal beliefs and OPINIONS and they are no more valid or valuable than anyone else's competing OPINION. Until someone can conclusively PROVE that said theory is true, your opinion...regardless of how strongly its held...is still just an OPINION. Therefore you, my dear reader, are NOT allowed to castigate, malign, belittle, taunt, bad mouth, disparage or deprecate someone else's OPINION. If you want to engage in that type of "debate", do it somewhere else. Don't like that? Well, let me remind you again of just whose site this is...MINE, not yours. Let me also remind you of our Community Guidelines, which are found here: http://www.tfmetalsreport.com/community-guidelines

After 5+ years, I will not allow this site to devolve into simply another internet screamfest. Thank you for your copperation.

brolgaboy's picture


Sitting poolside Amalfi coast thanks to Hui 2016!

Marcrward's picture

6th sense

For Turd's posts...

Mads Trauson's picture


Sitting Lake side Lake Como. Drink in hand ...

question's picture

Thanks Turd

You hit the nail; this election has really brought to the fore the deep doo-doo this country has descended into. It seems all the stops have been pulled out and extreme cognitive dissonance is taking over from even a semblance of rationality. By the grace of (insert applicable here) we have quite a number of Turdites capable of being able to rise to the occasion and helping to prevent Cthulhu from taking over this blog.

We need Turd to be able to keep his focus on the markets and not worrying about whether the kids are playing nice.

Learn to behave (to those of us who have not yet learned) and don't make Turd get the big stick and count to three ;-)

Fred Hayek's picture

And speaking of further devolving into the ridiculous

The Wall Street Journal has descended into being a ridiculous rag.  Once considered sort of a benchmark for financial journalism, it's now a joke.

Here's the headline above the fold on the front page of today's edition:


Wh-what?!  A strong signal?!  They had to send out Stanley Fischer two hours later to try to have the market take the Fed seriously on that "strong signal".  What the f***?!  No one believed that.  No one thinks that.  No one.  This isn't like having a headline reading "Dewey Beats Truman" on the day of the election.  This is like saying that Dewey beat Truman the next day after all the votes had been counted and the word had gone out.  Who the hell do they think they're fooling?  

hammerman's picture

turd... not to be a smart azz but

on Thursday you posted the John Titus artical.... and anyone not pissed off is hopelessly dead ... that was my WTF moment.... wake up people

renozep's picture

@SS121- You OK?

I'm noticing others here wondering about you too.  Drop us a note.


renozep's picture

@SS121- You OK?



Dirt_Reynolds's picture

Lake Como

St. Paul?

Marcus's picture

(No subject)

Fred Hayek's picture

Stanley Fischer = Child Catcher

And, speaking of the Fed vice chairman who, curiously went directly from running the private central bank of Israel to being the (vice) Chairman of our private central bank, who can forget his earlier work in the children's movie Chitty Chitty Bang Bang starring Dick Van Dyke.  The producers hit on a master stroke in hiring an actual evil child catcher to play the role of the movie's villain, the character called "Child Catcher".  Doubt me?  Look at the two photos below:

forever20's picture

understanding the absurd fed goon j-hole nonsense...

.. am richer for the existence of turdville / blogs / podcasts...... now understanding from the other side of the atlantic wtf it is - total nonsense.  Markets jump like a frog upon her every word - let the trends resume and stack accordingly. Peace to Turdville, Forever20.

LostMind's picture

Great Saturday edition Craig!

Doesn't really cost much  be civil, does it? 

Seems Craig is saying, let's be friends to one another regardless of thought...

We all learn more when we are civil to one another because we are more open to listen if we do not think we are being attacked...

Fred Hayek's picture

I can think of a reason!

The link below goes to a Bullion Star article by Koos Jansen.  In it, he describes his efforts to get the Dutch central bank to release the bar numbers of their official gold holdings.  They eventually blow him off with a completely nonsensical excuse that it would take to much administrative effort.  What?  To click that paper clip symbol in their outlook email program to attach the file with the bar numbers to their next email to Koos?  That click would take too much administrative effort?


Koos wonders what their real reason is for giving him the heisman on this simple request.  Of course if you either know or strongly suspect that the gold bars you got from the New York Fed each have another 30 parties who think they own them then you might have been told by the Fed to avoid giving out bar numbers no matter what you have to do.  If it means looking utterly stupid and fraudulent to some Dutch guy who's exposed a lot of the facts about the Chinese gold market, so what?  Don't let the Sultan of Brunei and governments of Germany and Italy and shareholders of GLD all realize that the bar they think they own is also owned by Holland.

AngryCitizen's picture

So, How To Channel OUR "Dissatisfaction"

With the present proposed "leadership" in the country and the private central bank's handling of our monetary policy into constructive action in order to wake up the silent majority? Seems to me that this is the real question....And it's the same question faced by the colonists over 241 years ago. (Had a great vacay in "the colonies" recently. Williamsburg was really good.)

This is not to say that we should choose the same solution they did back then. It IS to say that being cynical, isolationist and an anonymous computer potato is UNCONSTRUCTIVE in regards to the problems we face. It's only too late if we give up already.


President Jefferson thought that education of the population would solve many problems all by itself. Without an educated population we have lots of sheep and a few fat wolves...like today.

What say you?

SaratogaPrepper's picture


to the New Hampshire coast at the butt crack of dawn tomorrow for a week of freezing my balls off in the cold North Atlantic, same as I done for 53 previous years. You'd think I'd learn.

Most excellent post about the community guidelines! I've never been persuaded by an argument that uses the attack mode.

Doople's picture

Community Guideline #9

Now that's funny! and not one I am guilty of. Interesting that none of the attack dogs have showed up on this post.

canary's picture

Jackson Hole in 2017 should be more interesting

When they won't be able to hide recession much longer....There will be no one, but three Fed members waiting in line after Yellen speech....to help.

procog's picture

Happy Saturday!!

1 of top Rob Kirby summaries:

(Apologies if a prior post.)

benque's picture

It just came to me, in a blinding flash of insight!

We've all puzzled about Swillery's odd, spastic behaviour in the video circulated a few weeks ago.

Well, I have seen strangely similar behaviour shifts in my daughter's pet snake, as it undergoes highly stressful bodily changes, in preparation for shedding it's skin.

So, any sharp-eyed Turdite who can spot a cast-off Swillery-skin, or a Slick(Willy)-skin could stand to make a mighty big fortune.  Don't bother lookin for an obumble-skin though, as I understand that species eats it's own waste.

bently's picture

Barney Frank tells the Fed

Don't raise rates before the elections -- it will risk destabilizing the markets

Citi's William Tell -- "in the unlikely event of a surprise Trump win, it is unlikely that a December rate hike would occur, and focus will shift toward easing options..."

Zero Hedge

OOOBuck's picture

Turd - my mea culpa

It's tough being part of a  very verbal community with political views at odds with you own.

I can and will do better.

Goldencross's picture


What's going on here! I want to talk about GOLD en where we go from here! Anyone?

Let's see... Gold 1324, Silver 18,72, Hui 237,74, USD/JPY  101,81, 30y Bond 170,41, drCopper 2,08

Coming Sunday, Monday... Sideway's, another attack on the 1320 and 18,50 levels? Have we seen the bottom of this pullback manipulation attack, are we going up from here? 

Another attack before or on coming friday's BLSBS tot shove us back to the 200 ma???

Does the market believe Yellen's and Goons BS or will the USD/JPY fade again and 30y Bond rise Back above 171? 

I read the Seeking Alfa article and thought Here we go again only COT talk but no USD/JPY and Bond correlation...



What Are The Takeaways From Janet Yellen's Speech For Gold Investors?

Aug.27.16 | About: ETFS Physical (SGOL)

Hebba Investments

Hebba Investments

Follow(5,693 followers)

Long only, value, contrarian, gold & precious metals


The latest COT report surprisingly showed a net increase in speculative bulls despite a drop in the gold price which was negative.

Yellen's speech was a bit hawkish but in it she introduced some surprising inflationary measures as future monetary policy tools.

Fed Vice Chair Fischer is pushing one or two rate hikes if the data supports it and thus next week's jobs report is extremely important.

With positioning still very bullish and a critical catalyst coming in Friday jobs report we hold our core gold positions but wish to wait further before re-establishing sold positions.

The latest COT report showed little movement in trader positions before the Yellen. But since this report only included positions as of Tuesday, it didn't include Wednesday's bear raid and trader responses to Ms. Yellen's speech on Friday. Nevertheless, we saw an increase in speculative gold longs (which surprised us), a decrease in speculative shorts, and also a decrease in the gold price - which is a bit unusual as the gold price tends to follow the speculative money during the COT report week. That means that despite positive speculative flows there's a bit of selling that is over and above these flows and causing a drop in the gold price.

Finally, we will comment on our thoughts on Ms. Yellen's speech and its implications for the gold price. We will give our view and will get a little more into some of these details but before that let us give investors a quick overview into the COT report for those who are not familiar with it.

About the COT Report
The COT report is issued by the CFTC every Friday, to provide market participants a breakdown of each Tuesday's open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. In plain English, this is a report that shows what positions major traders are taking in a number of financial and commodity markets.

Though there is never one report or tool that can give you certainty about where prices are headed in the future, the COT report does allow the small investors a way to see what larger traders are doing and to possibly position their positions accordingly. For example, if there is a large managed money short interest in gold, that is often an indicator that a rally may be coming because the market is overly pessimistic and saturated with shorts - so you may want to take a long position. End artikel.


The thing is I think we are in A bull market but my emotions are 2x as strong in comparison with the Bear time between 2012 and end 2015. To be honnest I Am scared Shitless that we are being fooled again by these banksters.

Am I the only one?

Let's talk some gold fellow Turdites!

Bert blush

Angry Chef's picture

Colin Kaepernick

Somebody should let Colin know that the BLM movement is funded by our favourite Nazi, George Soros. You're being played Colin.....

Dr. P. Metals's picture


yes that was my first thought, these people don't even REALIZE they are being played...

the other take away of note (beyond the stupendous hypocrisy displayed in this instance) is that if (when?) things go sideways, you will NOT be able to reason with these/most people (liberals included in this imho), there simply will be not time or opportunity to bring them all up to speed when it all hits the fan, should they ever happen to believe you anyway.

Edit: lest anyone even remotely think I was leaning towards a racist statement, I'm not. By "these people" I mean those who are deceived by tptb. All shapes, sizes creeds genders ethnicities, etc etc

bently's picture

Fed Vice Chair Fischer pushing two rate hikes

If the data support them...

That kind of talk is a non-starter for all anti-Trump establishment elites in the US and across the world.

Ain't gonna happen.   

GuerrillaCapitalist's picture

Call for Civility


I've been online since the early eighties and have been a member of many virtual communities in the thirty odd years. I've met many good people, learned a great deal and have had my horizons broadened in ways that simply aren't possible in any other venue.

Without a shadow of doubt, the website Craig started and maintains for us is my all time favorite. For the most part we are a civil bunch, though tempers do flare from time to time. I too have noticed a trend toward vitriol and it saddens me.

We, the citizens of Turdville have a ringside seat at the Great Unraveling. We of the 99% are privy to intelligence that is very hard to access anywhere else without tens of millions of Federal Fraud Notes at one's disposal. In the years to come I think many of us will look back at these days as a gift from the market gods, since we have had ample warning and clear strategies to navigate the catastrophe(s) bearing down on us like a tsunami.

I hope our community can heed Craig's warning and put aside the childish bickering and get back to the mission of saving our collective asses. Metal's on sale, get it while you can. Grow food, connect with folks in your locale who are working outside the system. Farmer's markets, food co-ops, local grower's guilds, you get the idea.

Rant off, thanks for constructive feedback.


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