We Are SO Screwed

Before we get into the usual metals discussion today, I thought I'd take a moment to discuss what is being called "Taxmageddon". Not for the fiscal or economic policy ramifications but as a perfect example of just how hopelessly broken the political system in the United States has become.

If you haven't heard of Taxmageddon, don't feel badly. It was a topic that ramped up in popularity into Tax Day back on Tuesday but now will surely drift back into obscurity in the weeks and months ahead. What Taxmageddon essentially is is this: Without Congressional action, almost all tax cuts and changes initiated within the past 10 years will expire on January 1, 2013. This includes changes to the Alternative Minimum Tax, the "marriage penalty", rates paid on dividends and interest, the "payroll tax deduction" and so on and so on. For a more detailed summary, here are links to a New York Times story and a Fox News story on the subject:

http://www.nytimes.com/2012/04/15/sunday-review/coming-soon-taxmageddon.html?pagewanted=all

http://www.foxnews.com/politics/2012/04/17/taxmageddon-coming-answer-could-cost-americans-500-billion/

I bring up all of this NOT for a discussion about tax policy and "fairness". That's all bullshit and, frankly, anyone that falls into the trap of arguing about this stuff is simply playing into the politicians hands. What I want you to take away is this:

Congress knows that this is a MAJOR PROBLEM. Coming up with a plan and fixing this should be THEIR PRIMARY OBJECTIVE over the summer. BUT THEY WON'T DO IT.

Instead, everything out of Washington will be simple theater ahead of the November elections. The Republicans don't want to be seen as raising taxes ahead of the election and the Democrats don't want to be seen as lowering taxes. None of these freaking politicians will DO THEIR JOB because they are more concerned about KEEPING THEIR JOBS.

So, what will happen? After the election, Congress will be called in for a "lame duck" session in December. It's called that because, typically, nothing substantial gets done, primarily because a significant portion of the reps have just been voted out. This lame duck session, however, will be charged with fixing all of the Taxmageddon problems, in about 3 weeks, again using the votes of representatives and senators who have just been removed from office but whose terms don't expire until January. Ain't that great???!!! This also means that, for the rest of 2012, no individual and no corporation can make any concrete plans (including hiring) because of the utter uncertainty regarding the tax code for 2013. And these political deltabravos can't seem to figure out why the economy isn't "recovering"!

Do you see now why we are so helplessly screwed? It's all about politics and control. None of the Republocrats gives a rat's behind about you or me or anything. All they care about is getting re-elected. Period. And if there are any of you out there naive enough to believe that if we can just get O'Bomney (re)elected all will be well, I suggest you get up from your computer right now and go stick your head back into your kid's sandbox.

Next, I suggest you read this. I don't agree entirely with the author's opinions but I certainly share some of them: http://www.zerohedge.com/news/guest-post-fake-conservatives-dangerous-freedom-obama

Anyway, I don't mean to sound hopeless and defeated but it's always a fine line between realism and cynicism. As we plod forward, we all simply need to stay on the side of realism. Pay attention, think for yourself and trust your instincts. The current system is not fixable and the status quo will not be maintained. If you think you can affect change on a grand scale, please give it a try. We are counting on you and hoping you will be successful. However, in the interim, the only sensible option for everyone else is to continue to prepare accordingly for the end of the Great Keynesian Experiment and/or the end of the Great American Experiment, whichever comes first.

The metals are rebounding this morning after being savagely beaten during London trading. On the bright side, chart support continues to hold on the Comex. Gold is still stout above $1630 and silver keeps catching a bid every time it moves toward $31.30. I don't know about you but I'll take it! Of course we still run the risk of a brief, gun-the-stops drop but, as long as we continue to set a base here, the chances are increasing that bottoms are in and the next UP move will soon commence.

paper_4-19amgold.jpgpaper_4-19amsilv.jpg

Following on with the technicals are the fundos. Below is a C&P of a comment I tucked into the last post regarding the latest OI numbers and the coming CoT. I thought I should reprint it here so that you were sure to see it.

This week's CoT is going to be extremely interesting!
For the reporting week, here's what we have:
GOLD down about $10 and total OI down about 5,400 contracts. Almost certain to show a bullish improvement.
SILVER down 15 cents and total OI was UP by 7,000 contracts. May show a significant improvement.
​So, anyway, you know that I think the stage is set for a massive silver short squeeze. The silver CoT on Friday should only add fuel to the fire. We'll see...
Lastly, tonight's OI numbers are also amazing. Again, this data is basis yesterday's Comex close:
Gold total OI fell about 2300 contracts yesterday to 398,526 while price rose a scant $1.60. Not only is this a new low for 2012, it's a new low for the last 2.5 years.
Silver OI rose yesterday by 3,200 contracts (while price rose just 30 cents). At 121,448, total OI is, by far, the highest it's been for all of 2012.
Something very unusual is taking place here. Very unusual. We'll look back, 6-8 weeks from now, and be able to say that "the clues were there, why didn't we see it coming?".

Here's one bit of commentary for you today from JS Kim. It seems the brutal, 6,000+ contract dump on Tuesday caught his attention, as well: http://www.zerohedge.com/contributed/2012-16-19/weekly-dose-gold-silver-market-manipulation

Lastly, just an additional THANK YOU to all who Fed The Turd over the past 24 hours. We have now successfully raised enough funds to pay any outstanding bills as well as make the adjustments necessary to hopefully stop the site from crashing so often. Your generosity continues to amaze me and I am truly humbled by the outpouring of support. It is my sincere hope that I can continue to provide insight that you deem worthy of your attention and interest.

TF

278 Comments

koan's picture

PAGE demise

Did I recall hearing a Rothschild got involved at some point after inception?

Turd Ferguson's picture

Excellent point and must be

MODERATOR

Excellent point and must be considered.

Turd Ferguson's picture

Big Red in VA sent me this earlier

MODERATOR
IAMSLATTERY's picture

USURY is the root of the problem NOT TAXATION

Turd-

Forgive me but from my perspective you are diagnosing the tax problem via a symptom rather than the cause.

The issue of how screwed people here are is SINGULARLY one of USURY on CURRENCY.

For without this usury the tax issue would not exist. As well as the reason Gold & Silver are not functioning like God, The Constitution and the Coinage Act of 1792 have dictated to us.

Usury has turned everyone into either infidels or gentiles (what I mean by that is decisions only get made via hate and fear - I LOVE photographing Jewish weddings and Persian women are THE BEST to look at). We need to grow up and be accountable or whine till we are so upset we start killing those whom have fingers pointed at them. What is the consensus here is what I wish to find.

Usury is the power sociopathic kleptokrauts (who have no ability to contribute as they are born into understanding leaching is God's way) use to persuade you into the idea of why we all deserve all these ill gotten gains.

People please realize anyone earning more than $30,000 a year are THE 1% who pray on the 99% who do all the work around the world. There is a cost for this people.

Turd you are genius at metals. It will be (and always has been) the saving grace of humanity finding it's unlimited potential - if my opinion matters.

Whining about the people who tax us is of no use unless you want to be accountable for how YOU (each and everyone of us) allowed this to happen.

Hope you have the balls to post this as I have been banned from Max Keiser and ZH (I am now back on ZH).  I promise to not use profanity here and hope my ideas just get their opportunity to register.

Thank yous for what you do do.

IAMSLATTERY

Turd Ferguson's picture

Fine points but...

MODERATOR

...my chief complaint here is with the soulless, godless, scum-sucking, sociopathic politicians.

Turd Ferguson's picture

For no particular reason

MODERATOR

I just re-watched this. At least I still have the ability to crack myself up.

Dr G's picture

@NW View, thanks for your

@NW View, thanks for your post. My father-in-law employs over 600+ people manufacturing gun safes. He has stated the same thing to me multiple times. He will not hire any more because he doesn't know how it will affect him next year.

He also would love to see a program in place where for each employee hired, no payroll taxes need to be paid for 1 year. He said he would go out and hire 10+ individuals today if that were the law.

There has to be something to motivate small business owners to hire and innovate. Right now all we have are tax penalties.

In my business I employ 7 people, myself not included. I've discovered that I will pay less taxes but still make a good income if I cut back to working only 3-3.5 days a week. Now my dilemma is what I do with the staff. Up to this point I've always paid them full wages (9 hours) if I take a day off. Do I still pay them for a 5 day workweek if I'm only working 3? I really want to, they are good, but that's a lot of cash flow. Maybe I meet them in the middle, switch them to salary, and pay them as if they were working 4 days/week. I don't know.

Bugzy's picture

Trading: I am overwhelmed

The numbers of responses, in depth commentary, easy to understand comments regarding trading and various variables that may or may not affect all this is just too much for me to take in all at once. (sarc off).

Guess I will stick with what I know.

Feed the Turd. etc etc.

SV's picture

Lenin Said it

As Lenin said the best way to destroy the middle class is via taxation and inflation....

http://silvervigilante.com

Air Garcia's picture

word on the street

The stock indexes are about to roll over and begin to test the 2009 lows next week.

We know this would traditionally be PM strong, but look for further declines.

It only makes sense, right?

If my words did ring with the gold of sunshine...

Jerry Garcia

IAMSLATTERY's picture

thanks man

JUST POLITICIANS?

Really?

Turd Ferguson's picture

For the purposes of this

MODERATOR

For the purposes of this thread, yes.

Response to: thanks man
Dr G's picture

@IAMSLATTERY, I'm the 1%

@IAMSLATTERY,

I'm the 1% because I earn more than $33,000/year? Can you please explain to me how you have come to this conclusion?

I actually see it as directly opposite of that. Those making less than $33,000 are likely preying on me through taxes and entitlements that I fund and draining the system of resources it doesn't have. The way to replenish the drained system is by taxing me more. Therefore, I'm committed to not working as much and not hiring any more employees.

Thoughts on that?

Dr G's picture

Have a job and still get

Have a job and still get unemployment? Sure, why not, I'll pay for it! I appear to be a rich white guy!

http://news.yahoo.com/states-asked-apply-unemployment-test-plan-125932074.html

printmemoney's picture

@IAMSLATTERY

banned from Zero Hedge?  Now that's impressive.

Dr. G, I think he is counting the whole world in his sample size not just the US.

beardeus's picture

Dr G

IAMSLATTERY has the same mentality as those whom Peter Schiff talked to on Wall Street. Peter Schiff made all of his money because of the 99%! CAN YOU BELIEVE IT?! HAHA!

Those buffoons were so unintelligent that it still makes my brain hurt when I watch the video.

The first guy is the worse.

ClinkinKY's picture

@ IAMSLATTERY

Good to see that you are still able to watch "Mad Men" at the Occupy sites:) (It's a joke man, hope you have a sense of humor:)

Orange's picture

The way it will be.

$33,000 per year does not sound like much, until you realize that we offered our employees in Europe a salary increase. They said they would prefer to have a free flight and hotel for a vacation. Their reasoning was that the amount of tax on the increase would not leave them much and therefore preferred the paid vacation.

Most in the US, don't realize that European style socialism is paid through high direct taxes on everybody, plus VAT on goods purchased. Listen to the Turdville Brits on taxes or the Dutch. 

beardeus's picture

Dr G - It's already been done!

 

D.C. workers face firing for unemployment fraud

Nearly 90 city employees were suspended Monday and face potential firing and prosecution for receiving unemployment benefits while holding their city jobs, District officials said.

In addition, about 40 former city workers cashed unemployment checks they were not entitled to and also face sanctions. In all, the city estimates it has paid out as much as $800,000 in unemployment benefits to working city employees since 2009.

Fucking crime! ^ Excuse my French!

http://www.washingtonpost.com/local/dc-politics/dc-workers-face-firing-for-unemployment-fraud/2012/02/06/gIQAFviNuQ_story.html

dsrcheetah's picture

A view from rural France....

My observation of France since moving here (part time but full time in future) is that the average citizen here is much more aware of the global economic problems than the sheep in America. A French friend of  mine told me of going to his local bank today to withdraw out his euros and change them to Swiss francs. Of course, his banker strongly discouraged him from doing so. He did it of course anyway. When he told me what he did, I suggested buying gold bullion. He wasn't aware how to do it, so I explained how easy it was and where to do it here. I drew a 10 year chart of gold with my projections for the next few years. Now in the next few weeks he plans on shifting a substantial percentage of his cash to gold bullion. Interesting difference between discussing the reason for investing in gold to friends in America and here in France. Cheers to Turd for all you do! 

beardeus's picture

Orange, speaking of Europe...

I love when people tell me that socialized medicine is very possible and they always use Europe as an example!

I tell them "socialism is failing in Europe!". The decades of the filth is coming to fruition.

Unfortunately there exists only a small percent of men and an even smaller percent of women who understand this. I would classify these people as those who visit tfmetalsreport, zerohedge and the dailypaul. Sure there are a few others but these are my main three!

And silverdoctors... can't forget silverdoctors.

treefrog's picture

coming soon (?) to an economy near you

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

the only uncertainty in my mind is the meaning of the word "soon" in the title line.

timing always was the hardest thing to call.

FriedEggs's picture

One tiny edit Turd

Turd says, "my chief complaint here is with the soulless, godless, scum-sucking, sociopathic politicians"

.

"my chief complaint here is with the soulless, godless, scum-sucking, sociopathic satanists."

.

That’s a bit more accurate.

.

Fried(e)

TheFool's picture

@Much4Him -- Could a few Turdites read this article

Wow, I never realized that gold/silver bullion were considered "collectibles" and therefore taxable at a rate of 28% (Long-Term Collectible Capital Gains Tax Rates) when you "sell" the gold/silver. Screw that, man! I will not be telling the government when I "sell" my gold/silver. What a criminal government... it never ceases to astound me with the complete BS they pull!

Edit: You know what I mean... I know coins are "collectibles," but I didn't realize the government taxes capital gains on collectibles. Now the question is: what else does the government consider "collectibles?" What if I sell my baseball cards? Do I have to pay 28% capital gains taxes on that when I sell an 1987 Topps Barry Bonds rookie card on Ebay for $5? Or what if I sell a painting I bought off some artist back in the 90's who is now really popular and his artwork goes for tens of thousands, do I pay 28% capital gains taxes on it? THIS IS JUST ANOTHER EXAMPLE OF WHY IT IS EXTREMELY IMPORTANT FOR EACH OF US TO GET MAD AND THEN TAKE ACTION TO RESTORE OUR FREEDOMS, OUR INALIENABLE RIGHTS THAT ARE BEING TRAMPLED, AND SET RIGHT EVERYTHING THAT HAS GONE WRONG!!! (I'm probably going ape sh!t over something of which everyone was already perfectly aware.)

IAMSLATTERY's picture

If you do not understand...

If you do not understand how INTEREST ON THE VERY CREATION OF MONEY is the root of all evil

then

WHAT THE F are you doing here?

How much of what you are taxed IS NOT this very interest being paid down?

What do you get for this usury/interest?

The ability to say "I am the 1% and my life sux!!!"

Where have I heard that before?

NO USURY ON CURRENCY

IAMSLATTERY

Tyler's picture

air garcia

can you please elaborate on the word on the street?

thank you

beardeus's picture

@ dsrcheetah

While I've never been to Europe, being born in America I understand what you are saying. Americans are arrogant and proud. They think America will never fail.

No thanks to these dumb ass shows that are constantly being produced. The newest one that my wife watches, is about designers who show off their clothes and a representative from H&M, Macy's and somewhere else, all clothes companies, can bid or not bid on the particular designers clothes. If one of the 3 companies bids on the clothes, they'll be available the next morning to purchase!

Living the American dream! Shows like this are just another ploy to convince sheep that America the great is getting better and better while the numbers, who don't lie, either crumble around them (profits) or explode to the upside (inflation, unemployment, food stamp use, taxes and debt).

cjaghblb's picture

Lurker is IN

Thanks Turd, been lurking for 5-6 months now trying to learn the ropes on this whole PM thing (actually been buying physical for a few years but really had no plan or understanding).  Donation made.  PMs are becoming my wife and I want to learn how to make my wife earn for me!!  Novel concept I am sure.  I want her to help pay for my mistress!  Let me introduce you to my mistress......shes expensive and fickle but puts the biggest smile on my face when she performs!  Can any of you sympathize?

tmosley's picture

@IAMSLATTERY

No, initiation of force is the root of all evil.  Interest on the creation of money is merely theft, which is a form of force.  The Fed is certainly an evil institution, but by the metric of force initiation, we see that governments are far, FAR worse, though it is easy to argue that theft by inflation allows them to initiate more force than they could otherwise.

But the debate is a theoretical one.  The reality is that both institutions need to be severely curtailed if not disbanded.

Big Buffalo's picture

Teased...

anyone else feel completely teased by the metals action this morning? DANG IT.

Better than a kick in the nuts, i suppose.

Let's go re-test 1630.

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