Too Surreal To Comprehend

There are days when I sit back in wonderment at the position in which "Jimmy Stewart" finds himself. To go from regular dope to regular-dope-with-amazing-contacts is sometimes difficult to deal with in that it's so surreal. Anyway, there's just a lot of interesting stuff going on in the world, 99% of which is never discussed in the media, financial or otherwise.

So, I try to make sense of it all and then pass it along to you. The hard part is deciphering what is worthwhile and what is not. And I'm not just talking about the PM-positive, "pumper" information out there. I get a lot of anti-PM, you're-all-batshit-crazy stuff, too, which, frankly, sometimes has merit. As an example, I give you this:

Over the past year or so, I've gotten to know Jim Willie a little bit. I've never actually met him and we probably wouldn't even recognize each other if we passed on the street. That fact, however, doesn't mean that I can't make a conclusion regarding his validity as a PM opinion maker and editorialist. Therefore, though he's got few ideas that I don't necessarily agree with, I think he's one of the good guys who is doing his level best to inform and warn as many folks as possible about what lies ahead.

In his update of 4/12/12, Jim included some rather juicy information regarding the link between current paper price swings and behind-the-scenes physical delivery. Now, you can write this off as the lunatic ramblings of a madman if you'd like (someone in the previous thread called him "the National Enquirer of newsletters"), but I personally think that this information is valid. Jim has an extensive list of contacts within the global financial system and, from time to time, these folks pass this type of quality information to him. Should you choose to dismiss it and slander him instead, ask yourself first "what kind of contacts do I have?". If you, as a detractor, have no contacts within the international gold trader community, maybe you should be willing to openly consider that the information Jim provides is accurate, knowledgeable and helpful, not simply tabloid-level heresay.

Here are the first, two paragraphs of the piece, followed by a link to the rest:

"What an incredibly complex confusing and treacherous month. It can be safely said that 80% of the activity is almost totally kept from the public. The financial system is breaking in an accelerated fashion. Compare to some grisly horror movie where a man is strapped in a chair. The more he moves, the tighter the bindings pull on his gasping throat and pressed nether stones. The most significant two factors at work are the Iran sanctions and their powerful backfire, and the futile efforts in Europe to stem the banking center collapse. The anti-USDollar federation that spans widely across the globe is gathering strong momentum. Financial aggression is being met by financial alternative development. As Greece moved off the daily news fabrication factory, the reality of a collapse in Spain and Italy has moved to the front center of observations. Meanwhile, the American nitwits continue to argue over Quantitative Easing when it never stopped, and in fact, went global under their noses. The US news machine, dominated by the syndicate, churns out absurdities after more nonsensical bites on an economic recovery. The subprime loan machinery has ramped up. The retail factor does not tell of strength, but of weakness. Spending on consumption does not indicate strength, but a path to ruin still not well recognized. The gap between reality and reports is diverging.

Back at the gold desk, another cartel member kill is in progress. A string of UBS-type gold arena deaths is the biggest untold story of the new decade. The UBS rogue trader story was a total fabrication, written and staged to conceal the removal of all UBS gold from their reserves inventory. They are a dead gold player. The gold community, even LeMetropole Cafe and GATA, appears to be missing the coalition kills taken place in sequence with each paper gold ambush. If the cartel wishes to drive down the paper gold price, then they must deal with the consequences of having one more cartel member bank offered on the physical altar in a death sacrifice. They are vulnerable from sovereign bond positions and weak currency positions. In the margin call vise, they must forfeit their gold, but in a long slow process as truly enormous physical gold orders are being filled over a pyramid of prices lower than the cartel bank wishes. Details are scanty, but the trail can be followed to some extent by false stories to cover the damaging tracks. The press did a wretched job in checking the facts on the UBS rogue story. The loss was over $6 billion. The trades were all approved at VP level. The trap was laid and UBS entered with both feet, the consequence for which was being expelled from the gold arena, probably forever, in a total loss of its gold bullion. No wonder the press did not report the actual story. It would have been a monster bull story for gold. If Barclays or Royal Bank of Scotland or Bank of America were having their golden blood removed on a table, with straps in place for directors of their gold desks, and hot pokers applied by coalition forces to extract their gold, the outcome dictated by incredibly insolvency and margin call vulnerability, the effect on the gold market would be magnificent. Such events are in progress in my opinion, based on some juicy information feeds. Rather than divulge the entire details of the cartel kill, the coalition prefers to move to the next victim in the Wall Street & London cesspool of finance."

http://www.gold-eagle.com/editorials_12/willie041212.html

As you know, another guy with whom I'm now able to communicate directly is Uncle Ted. The statement below isn't anything earth-shattering but I've been meaning to re-print it. It's taken from his mid-week update last week and it simply speaks volumes about where we are currently in the silver charade.

"I realize that we are currently in a period of doldrums in the price and this has blunted investment demand, the silver price driver with the most kick. Prices are down sharply from the peaks of a year ago and there is a self-fulfilling nature in all investment assets where lower prices discourage new investment. More than ever, the short-term control of High Frequency Trading (HFT) is exerting greater daily pressure to the price as real volume dwindles. I’ve noticed a clear pattern where most days we start out under price pressure. This makes it easier to for the COMEX commercials to contain the price. No one can guarantee that the COMEX commercials can’t rig another sharp sell-off. It’s enough to sap the resolve of even the most ardent bull.
 
But I would remind you that these conditions have been a regular feature of the silver market over the past ten year (excepting the presence of HFT). While we have climbed sharply over the past ten years, that extraordinary price rise witnessed its share of sharp takedowns and prolonged periods of price stagnation. For example, the price high at $8 in 2004 wasn’t exceeded for almost two years, as was the price high of $15 in 2006 which wasn’t exceeded for almost as long. It took more than two years for silver to exceed the price highs of March 2008 of $21 (when JPMorgan took over Bear Stearns). Yet anyone who bought at the former highs and held on was rewarded, as will those who bought at last year’s highs. (Going back even further, the decade or more that silver traded between $4 and $5 was the biggest price doldrums of all; along with being a great time to accumulate). My point is that during the last three silver price doldrums, the gloom and negative talk was almost thick enough to cut with a knife, almost the same as now. Yet history shows us that the very best time to buy was during past price doldrums as was it also the very worst time to sell."
 

I reached out to our pal "Winston" over the weekend to get some thoughts from him, too. He sent me a lengthy email which I will try to summarize. He is quite confident that there are some very large, sovereign buyers underpinning the physical market in London. (Note that this jibes with Jim Willie's assertations.) These buyers halted the paper selling on a couple of occasions last week and they continued to do so all the way into this morning. Did anyone notice that gold rallied at 3:00 am EDT today instead of selling off? This was due to the same sovereigns buying into, and post, the AM London fix. Winston expects this to continue to provide a floor for paper price. The key level to watch going forward is 1680-1685 as, apparently, there are all kinds of buy-stops at that level. Any move through there will trigger a quick rally toward 1700+. Above 1700 and the WOPRs will flip to "BUY" again and we'll head back off to another test of the critical 1800 level.

Interestingly, Winston's analysis fits in quite well with my charts, too. (Makes me feel a little less dopey.) As you can see on the charts below, gold is still struggling to make a permanent turning point. It's close, however. There should continue to be strong paper price support between 1630-40 and this makes another attempt at 1680 a simple eventuality. Once 1680 is finally bested, 1705 should be the final hurdle before another run at 1800.

paper_4-16amgold18.jpgpaper_4-16amgoldh.jpg

paper_4-16amgoldd.jpgpaper_4-16amgoldw.jpg

Silver, as you might imagine, has a similar picture. In the short term, it is still penned in a range between $31 and $33. However, very strong buying support continues to emerge between $31.00 and $31.25. The longer this support holds, the lower the trendlines "hurdles" get for the next rally. For now, all we can do is wait for a breakout through $33 before we can get really excited. Also, pay very close attention to the weekly chart below. We are nearing a resolution to the current pattern but it may still be 6-8 weeks away. Please try to remain patient. The next move in silver is going to catch a lot of people by surprise but not us.

paper_4-16amsilv18.jpgpaper_4-16amsilvh.jpg

paper_4-16amgoldd_0.jpgpaper_4-16amsilvw.jpg

Ok, I'm going to stop at this point because I've been in my office for about three hours now. I need a break and you need a new thread. More later today. TF

284 Comments

ClinkinKY's picture

Bad Lip Reading (or is it?:)

exiledbear's picture

@CA Lawyer

I used to live in CA, and then I realized that the only way to own your own home (at least in NorCal) was to either commute 5 hours every day from Stockton or borrow $800000 or live in some crappy condo unit that wasn't worth even half the price they wanted you to pay for it.

Your only real sane option was to rent. And renting really starts to get to you after a while. The hunt for quarters, the fight to get your clothes washed at the laundry room, the slow response to any sort of maintenance request. And every rent check, you realize you're really just working for the landlord, who although you never met him, you know odds are high he's some asshole you wouldn't like.

So I said screw it and left. Almost anywhere else in the country you can have a paid-for house for even 1/2 what you'd pay in CA. And property taxes compared to CA are almost nothing. Maybe in NYC you'd have to pay more, but who wants to live in a place where all the false flags happen and all the people are mean to each other?

There are some things I miss. I didn't have to shovel snow in CA, for instance. But I don't miss it enough to ever want to go back. At some point in your life you realize good weather just isn't enough or it isn't worth it.

TheFool's picture

"Mehhhhhh......"

"Mehhhhhhh... That could make someone tired. Like jumpin' in Cindy's fun barrel."

OH man... good stuff! Old news, but the Herman Cain BLR soundbite video is good too:

I Run Bartertown's picture

Franklin Sanders

http://silver-and-gold-prices.goldprice.org/2012/04/gold-price-fell-1040-to-164870-trading.html

"Working in our favor is silver's 7 month dance with its 300 DMA, now under, now over, and under again. Stands today at 3520c. Silver needs to pull out of this pretty soon.

I know a bunch of y'all will grow exceeding wrathful with me, but I believe that the Stupid Party is setting Bernard O'Bama up for a win this fall by running Mitt "I Have No Personality" Romney. CFR candidate Romney differs not a whit from CFR candidate O'Bama, and surprise, both will appoint more CFR functionaries, wage more wars, and blow more money. Question is, how do you like your hogwash? Full strength from the Stupider Party, or watered down from the Stupid Party?

The Stupid Party and the media have buried the only candidate who differed from the CFR Establishment, Ron Paul, so once again you have no choice in the Potemkin Election. I have no tears left to cry, I just grit my teeth and pray Tennessee will survive these foreign fools."

 

winemaker's picture

@CA Lawyer

I hear you on the Glocks.   A lot of people don't like them but I've always appreciated the standardization and reliability of them.  They are probably not the most ergonomic guns for my hand, but are satisfactory.  I have a Glock 19 and Glock 26 (both 9mm).  The Glock 26 was my CCW gun when I was living in Washington.  I don't have a pistol permit here in NY.  My pistols are living out of state until I get one.  I also have a Beretta 96fs which is in .40 cal.  It is a much bigger, heavier gun, but shoots very well.  I would never try to carry it concealed.  I'm not a huge guy. 

Someone mentioned carbines.  I think a carbine can be a very useful weapon in the right circumstance.  For example, I have a Beretta CX4 Storm which I love.   Mine is chambered in 9mm but is also available in .40 or .45.  It is my home defense weapon (the first one I will grab) since I don't have a pistol permit.  I have an Eotech sight and tac light on it which works perfectly for that application.  The gun is short, light, accurate to a reasonable home defense distance and uses a common caliber (9mm).  It also has a longer barrel than a pistol thus imparts more energy to your target.  Plus, if you have a Beretta PX4 Storm (I think that is the model, not sure), the magazines are interchangeable with the pistol.  Could be very handy. 

@SaratogaPrepper:  that is a photoshopped picture.  The picture is real, but the caption is not.  Unfortunately it is from a real boating accident up there a couple years ago.  I think it was some type of cruise/tourist boat that sank.  My photoshop skills suck so I have to rely on what I find on the interwebs!

Dyna mo hum's picture

Dammit! XTY

That pic almost drove me over the edge. That is pure erotica for a foot man like me. Shame on you for triggering my pedi emotions. Go and sin no more.

Big Buffalo's picture

Fun gun discussion today..

..there's one thing about guns we can all agree on, there are lots of them and twice as many opinions. What I love is that they are used as a hobby, safety, investment, food (hunting) etc. So whatever you have and are getting, have fun and be safe.
Let's hope tomorrow we're discussing the $50-$60 rise in gold and the $0.80-$0.90 rise in silver. And if it does, I'll sell my agq and dgp positions bc its sure to drop a bit on Thursday.

I Run Bartertown's picture

 

slide3.jpg
 
R man J's picture

Question for y'all regarding corrections

Why is the term "CORRECTED" used whenever Ag or Au drop lower?  There is nothing CORRECT about that, is there?

recaptureamerica's picture

Curious...why bring up debt ceilings 5-6 months

I'm curious, and more concerned that TTT -TurboTax Tim is concerned about drama pertaining to a breach of debt limits 5-6 months in advance. ZH estimated, I believe a breach of the debt ceiling insanity by September, October. I am wondering that we breach much sooner, with EU and her PIIG-lets back to needing more bux, I wouldn't be surprised Uncle Ben Converted BS is bailing out our original enslavers...even as I type. Maybe the EE is starting early and starting often to numb and dumb us down more. G-d knows we can use more distractions [sarc off]

treason and the punishment for it is too soft .

jediknight economics...you know the one we are living in...There is no inflation...is more psychomumbo jumbo for the majority dumbo sheeple.

This is boil the bull frog x 1000

ClinkinKY's picture

@ TheFool

I'll "call" your Herman Cain and "raise" you a Joe Biden:)  (Sigh, our Vice-President, insurance that nothing happens to B.O.)

Xty's picture

recaptureamerica

That is what I was wondering - why even mention it?  I think it is coming way sooner than September.

Go Sens Go!

Sorry Dyna mo, I am in love again:

                      

(it being the debt ceiling) (my love being Karlsson, our new defence man!)

SaratogaPrepper's picture

@ Winemaker

Oh I see. Yes I remember the accident. Small tour boat with a bunch of senior citizens. A few died.

My daughter and I are getting our pistol permits next month. I have decided on the Glock in 9mm for her. Which do you like better the 19 or 26? Are the ones you have the Gen 4's? I'm going to get the 23 in .40 S&W for myself. The county I'm in does not give out concealed carry permits to men, not sure how they get away with that. My daughter may be able to get one since she is a single female and a student.

ed's picture

USD further marginalised

http://www.zerohedge.com/news/sic-transit-gloria-pecuni-lme-considering-ending-sterling-allowing-renminbi-settlement

Gold dropped a couple of bucks around the time this was published (possibly coincidence). Typical BS, the catalyst seemed to be a a 100 lot order placed 50c above market.

Just a personal opinion, but I do prefer these articles containing facts to opinion pieces by various pundits containing non-verifiable information (however I find the latter interesting). This is especially the case when the opinion piece contains MULTIPLE factoids ranging from the believable to the incredulous. Personally I'd rather have the info drip-fed 'late' by a semi-reliable aggregator eg ZeroHedge. 

57Goldtop's picture

XTY

Sens... um

Well, I loved the great Georgian Bay pic the other day!!! Nasty place to dive for lost treasure though. Even worse than Muskoka, where my inflatable kayak rolled on me.

GT

California Lawyer's picture

@Exiledbear

I read your post and agree heartily with your sentiment.  So, it naturally flows then, why am I still here like a fool in So Cal?

I will tell you.

I have a defect, something is definitely wrong with me.  I choose to stay, knowing it will be difficult, because I want to be a survivor here in So Cal with the shi- does hit the fan.  I really do believe I can make a difference when it all goes down, and needs to be rebuilt.  I do not know what sort of disorder this is.  Maybe it was just something ingrained in me from years of flying helicopters for the US Army.  

A helicopter is constantly about to malfunction and crash. So, as a helicopter pilot, I was trained to expect a disaster at any moment, to execute a flawless emergency procedure instantly, and accurately, under stress, and to accept that in the event of a crash that the rotor blades would likely decapitate me instantly.  So I did, and flourished.  So, stress does not bother me. Worry does not bother me.  It is all relative.

I figure what will happen will happen.  Where do I want to be when it does?  I sure don't want to be here in So Cal when the govt checks stop and those on the govt dole decide to come for my stuff.  But, where else is there that I can still work my craft and prepare, and be in a position to thrive afterwards?

I am just not ready yet to bug out to a different state or what not.

Just as soon as I can save enough to purchase the big ranch, I am going to do it and call it a career as a lawyer.  Until then, I slog away preparing.  I am glad you managed to escape Kalifornia.  Good for you. 

Nephi's picture

Russian TV

I always read the great Turd but usually never comment.. I've noticed a disturbing trend amongst us stackers that we must recognize as Kremlin propaganda. And that's Russian Television/RT

It’s widely known that Vladimir Putin runs RT which is today's Pravda. While I’ve watched stories from RT about  America's government corruption and the consequences of government debt. You have to ask yourselves whose side are they on. Do they support capitalism and the fabric of our Constitution?

Another scary tidbit from RT is that they just recently hired Julian Assange in a highly anticipated television series called "The World Tomorrow ". So let me get this right, Russia hired Julian who has exposed Americans corruption but never has exposed Russia's? Wasn't  Russia pushing for Julian to receive the Nobel Peace Prize!  Julian is quoted as saying that his new television show will "look at things in a Russian agenda".

Doesn't it get you as strange with RT's cozy relationship with Wall Street protest  calling it "America's Arab spring".

I'm just one voice but I will take the stand for liberties that the Kremlin wants to dissolve, and call out RT for what it is and that's nothing more than Russian propaganda.

What say you turd?

winemaker's picture

@SaratogaPrepper

The G19 feels much better in my hand--it is the perfect size for my hand.  Smaller than the G17 and larger than the G26.  I carried the G26 because it was a great size for that.  Takes a little getting used to shooting the G26 unless you have a pinky extender as the grip is quite short.  Otherwise, other aspects like recoil are very similar.  It conceals nicely, and depending on how your daughter intends to carry, it would probably work better for someone with a smaller body.  Because the magazine is double stacked, it feels somewhat bulky for its size, but you get used to it. 

Honestly, I don't know what generation my pistols are.  I haven't even seen them in several years.  I bought them about 12 years ago new. 

Good luck getting the permit.  I live in Monroe county which issues concealed permits quite readily.  I just have never figured out how I will get my four references.  The people who know I have guns don't know me very well as a person.  The people who know me well as a person don't know I have guns (if that is even possible).  The references have to live in your same county, at least that is the requirement here.  NY is so forked up when it comes to permits.  Every county and every judge is different. 

BUDDHA PRINCESS's picture

Silver Update 4/14/12 James Turk Interview

BUDDHA PRINCESS's picture

Possible Silver Future Price Outlook

By Endlessmountain

ttp://www.youtube.com/watch?v=2ir6llCm464&context=C4a9d83cADvjVQa1PpcFPwhR_bO2tNoJ8soumbFjlTV92ZaSZT0fY=

BUDDHA PRINCESS's picture

Possible Silver Future Price Outlook

¤'s picture

Genesis - Live in 1973

I know some Peter Gabriel fan is going to love this...

Dr G's picture

@CaLawyer, agreed with what

@CaLawyer, agreed with what you said. My Glock G23 (.40 cal) is one of my favs. I have 3,000 rounds for that.

@SaratogaPrepper, as you can see from above, my G23 is one of my favs (probably because it was my first Glock). I adore it and treat it like my baby. Put it through it's paces and it works like a charm. Never have to clean it. Glocks are like AKs. They just work.

I also recently purchased a small Kel-Tec .380 Auto that is the size of a 3x5 index card and perfect for carrying. But you know what they say about the .380. It's either barely adequate for self protection or barely inadequate. I figure the best gun you can use is the one you have on you--and I can carry that Kel-Tec in my scrubs and nobody knows. Very nice.

Stock photo:

Actual dimensions of that KelTec are: 5.2" x 3.5" and 10 oz when loaded. Holds 6+1 rounds. Got it for $299.

SaratogaPrepper's picture

Winemaker

Thanks for the reply. I'm not even sure if my daughter will carry it concealed. She is not a small girl. So it sounds like the 19 is the best bet. Luckily we have been in the house we are in for a long time and getting the 4 signatures wasn't difficult. You are definitely right about NY being messed up. I was hoping the judge in my county would be gone by the time we got our permits. No such luck. If your pistols are 12 years old they would not be Gen 4's. The new ones have a changeable grip. I've been looking at those Baretta CX4's, sweet. I already bought her a Hi-Point 9mm carbine. Inexpensive and way fun to shoot. Not quite in the class of the CX4 though. But very useful for home defense. I decided on the Glock in 9mm for her because of the Hi-Point. I already have to many calibers that I used to stock before the ice fishing accident. .308, 9mm, 40S&W, .22LR and 20 gauge, the ammo cans were adding up before they sank into Lake Champlain.

Dr G's picture

@ R man J, No, sometimes when

@ R man J,

No, sometimes when the price moves lower it IS a correction. There is nothing wrong with that. It is good to test support. That IS the natural ebb and flow of the markets (which are really just a study in mass psychology). As somebody sells to take profits (because they bought in lower), somebody else is new to the game and is buying.

Not everything is the Cartel. When the Cartel strikes you can tell. Massive waterfalls during low volume periods, and massive waterfalls on news that should be positive for the PMs.

Dr G's picture

I'm SO glad I live in a state

I'm SO glad I live in a state where you can purchase a gun and the time from walking in the door to walking out the door with it can be less than 10 minutes. I'm also glad that I live in a state where we value our freedoms and there is no need for a concealed weapons permit. Better not pull any funny business here, because you never know who is carrying.

Patriot Family's picture

Guns and ammo are great

Guns and ammo are great hedges against inflation too.  If you live in a state that allows for open purchase or trading of guns and ammo, it's easy to trade in and out of this stuff.  I tend to buy ammo in sealed cans with about the same discipline as I buy silver.

Where I live, I can respond to a classified ad for nearly any used gun and show up an hour later with cash in hand.  No bill of sale required, no permit required, no requirement to provide a paper trail.  You just have to confirm verbally you are legally able to own a gun in this state and show your drivers license to the seller to prove you are a state resident.  Picking up a LC9 on Thursday via this method and sell off a slightly bulkier .40 I use as my current concealed carry today.

It's funny how 99% of the people I run into are very polite to each other because many of us are either packing on our hip or in our glove compartment (plus, it's just part of living in the South).  

¤'s picture

It's starting to get interesting...

"Sic Transit Gloria Pecuni" - LME Considering Ending Sterling, Allowing Renminbi Settlement

Not sure if anyone posted this earlier.

"As of today, insult follows inury, as the LME has formally asked the members of the exchange to drop the sterling contract denomination (in addition to USD, EUR, and JPY contracts) and replace it with the Chinese renminbi. Why this sudden and dramatic, if gradual and tacit, admission that the CNY is the ascendent reserve currency? Because, as the FT reminds us, China has become the market for non-ferrous metals: it is "the dominant force in the market, accounting for more than 40 per cent of global demand for most metals and a rapidly increasing share of trading in LME futures." Add that to yesterday's news of a widening in the CNY band..."

http://www.zerohedge.com/?search_block_form=apple%20bubble&op=Search&for...

Teach's picture

Guns and Gold...

They seem to go together somehow.  Even up here in the north country.  I've a CZ SP01, 9mm, a Norinso 9mm (junk), a CZ858 7.63x39, and an sks.  Of course there are the shotguns and a 22 as well.  Can't carry pistols here though, except to the range and back.  Oh well...not many others carrying either unless you are really running with rough trade.  Long guns you can take wherever you like.  A case of 1400  rounds of surplus 7.62 is $299 here, and sks's are around 200 bucks.  All the good things start with "G".  :-)

opticsguy's picture

If you don't mind SA/DA

The Sig/Sauer P226 is a nice high-capacity pistol.  I have one of the old German-made ones from 1985, but I've shot a newer one and the trigger feels the same.  Crazy accurate.  Mine has never jammed or misfed in 25 years.

Also in my museum is an Astra A70, another very accurate 9-shot 9mm.

And finally there's my 1917 Enfield 30-06, Sept 1918 build at the Eddystone Arsenal.  With a scope it is an excellent deer rifle, but you do not want to carry it around all day.

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