January Ends. What Will February Bring?

Gold 1987

Silver 49.87

Didn't work out so well for end of January but will try again.  Think the EE will still be defending their line in the sand.

Z

Thanks so much TF for all you do and have done.

AU... $1839.39

AG... $39.59

I am a stacker only but have received such a great education  here since finding this site. I have been a daily reader and rare poster since Nov. , 2010. Folks here display a degree of civility not found elsewhere on the internet.

The ISM report for January came out at 54.1 today. That makes for 30 straight months that it’s been above 50 which signifies an expanding economy.

Are we in a recession? Put it this way: The ISM has fallen between 53.0 and 55.0 a total of 101 times. Just two of those times have come during recessions.

Posted by Eddy on February 1st, 2012 at 10:07 am

http://www.crossingwallstreet.com/archives/2012/02/january-ism-54-1.html?p=16691?utm_medium=related_plugin&utm_campaign=related_plugin&utm_source=peterlbrandt.com

Gold- 1820.30

Silver- 36.42

Happy National Signing Day to all!

Gold = $1,704.20

Silver = $31.60

7 minute abs are the best ... Harland Williams has always been a favorite.  Why are all Canadian comedians a little kooky?  Maybe winter is too long.  ;-)

Gold 1826.75

Silver 38.43

Thanks! Very cool   of you to do this for King Turd and his fellow Turdites.

TF wears a crown of yellow foam

gold   1757

silver  34.23

Thanks Turd and H

btw was wondering,  what is the anniversary date of Turd's bottom?   Seems like it was around this time last year?

My guess in the quest for Yellow Hat:

Silver: $29.75

Gold: $1630

Not what I want, not what I hope, but being as I am long gold and silver, and I was long GM bonds, and long WaMu bonds, and lost my precious to MFing Corzine....

Gold @ 1705

Silver @ 35.50

I have posted this thought before, but just thought I would throw it out again in light of Santa's warning and also a post by The Vet on the last thread.

So, we all know BS Benanke will do anything to keep the "D" monster at bay and that the FED really wants the dollar weak and that they will "print" as much "money" as necessary to keep the big banks afloat. I have no argument with that premise. I agree with it.

The question is this: Will the digital money supply created by the FED and the ECB to flood Wall Street and "Wahlstrasse" with liquidity ever reach Main Street? Will it ever reach the PM markets?

What happens to all the money the CB's create out of thin air? It goes into the big banks' balance sheets. They convert it to nominal (worthless) paper assets (CBO, CDS, sovereign bonds, other derivatives, etc.).  Then a big "credit event" occurs, a la Santa. The paper assets are suddenly re-valued to zip. Where does the money go? The answer is, it goes "poof". In the old paradigm of physical currency (not physical metal, just actual paper), money lost was actually transferred to some one else.  Also money printed was actually PRINTED, and eventually, sometimes very rapidly, wound up in people's pockets and they rushed to trade it for goods of some value. But all this pixel, or "pixie" money flowing from the CB's does not exist, at least not in any tangible way. It only exists as long as the right groups' PERCEPTION is that it exists. It can and does "vaporize" as quickly as perceptions change.

So, in the new paradigm of what I call pixie money, does trillions of dollars/euros at the top of the financial food chain ever lead to hyperinflation at our level? I don't pretend to know the answer to this. I have read a lot about the history of money. Just finished Niall Ferguson's book "The Ascent of Money" and if you haven't read it yet you should - very comprehensive. I know that, historically, all fiat currencies end in inflation and revert to their intrinsic value. But not one author, including Ferguson, discusses the ramifications of today's "imaginary" currency. I think maybe we should all re-read "The Emperor's New Clothes" as well.

Even my own money is pixie dollars. I receive it by direct deposit and it is ALL held in various computer databases. How many of you are in that boat with me?

Money (by that I mean fiat) could become very scarce overnight. Banks are NO LONGER keeping vault reserves beyond what they need for daily operations. Maybe they can reload their in-house ATM once, maybe twice... then? There is a company a few miles from my house that handles nearly all the ATM and POP transactions for all US banks. Could they be sabotaged? Will the government declare that bank holiday someday?

Bottom line is - I plan, as part of my prepping, to have a significant supply of fiat currency on hand as well as my PM's. I will split it between USD and CAD, in case of an overnight revaluation. I will probably continue my current habit of relying nearly 100% on my debit card for everyday purchases, but I will have that fiat in a box at home just in case.

Thoughts from others?

Live well, Love much, Laugh often, Learn always!

As I think about that post it seems that the two questions: Will it reach Main Street? and Will it reach the PM markets are separate and distinct. It could easily reach the PM paper markets anytime, but not reach Main Street.

Someone seems to know, but isn't saying yet:

http://www.cnbc.com/id/46219729

Hi Roman,

Tired, frustrated, and milked too much, mostly ("how do I feel").  Started reading Rickard's "Currency Wars" (page turner - up way too late last night); doesn't help my mood much.  I reckon the Mayans were probably right.

How do you mean? 

Gold $1687.87

Silver $31.56

I don't know where Ag and Au will be  in a month time but I know in several years time all Ag and Au will be lying in the bottom of the sea because to many boat accidents. 

Better start investing in Odyssey Marine:

http://shipwreck.net/

At least after this week verdict by a USA judge the 500.000 coins recovered in t he Spanish vessel  Mercedes are back to Spain. We need those once they kick us out of the €zone since the socialist finance minister (Solbes) sold 50% of our gold in 2007 at a price of  669 $ because it was a barbarous relic. 

BTW if Merkel's wants to confiscate them we will send the again to the bottom of the sea. I'll ask for advise then,  since many of you have a lot of experience in this matter.

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

the Prediction Competition really brings the Turdites out doesn't it?

Does everyone know the Gold colored hats are NOT made of Gold (though maybe they're reverently as precious!)

...maybe it's the Silver Keiser ..no idea what that is, was it part of Max Keisers 'Bankrupt JP Morgue' campaign???

Hope Max starts that up again... though when Europe defaults that bankrupt gambling junkie Jamie Dimon is so exposed, silly twat, he'll commit financial suicide all by himself (it's his 2nd suicide attempt after 2008) 

Hi Hi all you Turdites... Captain Scarlet here with the latest prediction results.

Not much of a report for the January Prediction Calendar because all the good ones were given on the last couple of days for December. And all the "good predictions", by people to numerous to mention, was that the PM bottom was in during the last days of 2011. So far so good.

And that's about it. Sorry, but the soothsayer holidays seem to be on.

Ta Ta. Shasha says "Hi"! Kiss Kiss.

Silver $37.23

Gold $1,847.23

A real crisis event of the magnitude to affect whether we should have cash or not will include a bank holiday.  Some bank holidays will include zero access to your accounts, others will involve partial access with caps on how much you can withdraw each day.  I would imagine caps on withdrawals are more likely, but that's a guess based on central banking having a long time to plan for this.

Other than having enough to buy groceries for a few weeks, and pay my rent, I don't keep a lot of cash on hand.  I have plenty of metallic change, but no more paper money than is necessary.  If I had any extra, I would buy silver with it.  I think this may be a mistake.

Cash will eventually become worthless like your accounts, but so what?  The bigger concern is in a doomsday financial meltdown, there will be no way to pay employees.  How long do you suppose the local Walmart employees will show up in that case?  With insufficient staffing, how many of these companies will refuse to open their doors?  The last time around (1930s), there were mom and pop companies to extend credit to their neighbors (my grandfather lost his grocery store that way).  Those small stores are gone, and the managers of the companies that replaced them don't have the authority to extend you credit to eat.  This line of reasoning applies to shipping & distribution.  Without letters of credit and loans, and without the employees to move the food, the shelves go bare in three days just like in the Japan earthquake.  Sorry folks, due to Zero Inventory and Just-In-Time-Delivery, everything comes to a screeching halt without the banks.

In a dollar collapse, every little bit of cash that's not in your account can be quickly converted for something tangible.  Many employees will show up to work as usual because they won't know initially they will never be paid.  With the credit cards not working, only the people with cash will be able to buy anything, leaving you with the pick of a rapidly diminishing food supply and any gold/silver jewelry that hasn't been re-priced yet.  When a bank holiday hits, everything priced in dollars will be under priced.  Most people know nothing about these events, so the majority won't catch on for a few days.

Manifest Destiny Derailed: Treason from Within