Net-Net Nothing

Went out and grabbed some more physical today. It was a shame one of the saddle bags of the motorcycle was missing when I arrived home. Just happened to be the one with the Silver in it. DARN IT.

Anything below 50 an Oz.  is a pure gift,

Anything below 30 an Oz. is Christmas.

Please enjoy this wonderful Holiday Season

W

Considering today's events and gold is above $1600, we are setting up to rock and roll. Just thinking, the markets really have no where to go but down. Why? Where is the growth going to come from? No one is spending or making money. Small companies are not growing or hiring. Big companies are not giving even half decent raises. We all know
the 99 weeks Obama paid vacationers are running out
of time. Europe, as you know, is in big trouble
So, markets will slow but surely drop. More printing to come.
And yes, I love low interest rate until end of 2014.
This gives us a little bit more time to buy at lower prices. As I see it, the debt is still going up. Soon to be $15.8 trillion.j

I have dry washed in Nevada, Arizona, and California.  Ran a highbanker in Alaska and panned in Washinton state.  Never found a lot, but always some.  There is no better feeling than when the color starts to show in the bottom of your pan.  Funny things is, some metal detecting friends of mine came by my farm in SE Ohio to detect some old home sites on my farm.  We got to talking about panning techniques and I gave them a panning lesson in a creek on the farm.  That is where I was surprised,  swished the black sand around and there were a couple gold specks.  Gonna have to get  a sluice box and try some more.  Maybe start an Ohio gold rush.  Once gold takes off, a lot of areas that weren't profitable to work will be.

This is what I believe. While deleveraging of US households and corporations continues, America will not be able to escape either recession or more debt. Ben Bernanke didn't hit the print button today, but sooner or later he will have to. But here's the kicker...

...it won't work. Solvency, not liquidity, is the problem. Monetary policy is powerless to cure this ill. Only fiscal policy can do that. And that won't happen. 

Bernanke must have worked this out by now, but he has only this one tool left in his tool box. And he's trapped in the politician's syllogism. 'Something must be done. This is something. Therefore I must do this.'

So if  you detected a certain lack of conviction in the chairman's remarks today, listen closely outside his bedroom window tonight. That sound you hear is an academic sobbing gently into his pillow.

Not one post about the subject matter of Robert Mangabeira Unger's video, kindly included in Turds lead post. I am disgusted. Instead we have all the above palaver about short term occurrences that will have short term effects.

This video is VERY important. Listen to what he says. I mean REALLY listen! He speaks the unadulterated truth.

It may take a few times listening to it for the intellect challenged, before the light bulb turns on.

All this sophomoric palaver, while intentionally ignoring the most pressing of issues facing the nation, tends to misdirect constructive energy, channelling it into useless pursuits. 

If you have your stack - good! If not BTFD now! Then sit back and ignore this short term BS and begin concentrating on what really matters, or very soon, we will wake up one morning and not have a country, house, window, or pot of piss to throw it through! 

Watch and listen to the video. Really listen. He speaks extremely well.         

As Turd notes, the FOMC today did nothing for metals since there was no material policy change/response. Europe's financial difficulties were barely mentioned and extending Twist through the end of the year will do nothing for them. But European problems still exist and are about to get worse, fast.

Some highlights from around the continent for the last 2 weeks:

Spain goes from our banks do not need a bailout to nationalizing Bankia and declaring the banking system needs 100 billion euro's for openers. The request is made to the ECB to buy Spanish bonds so Spain can bail out their banks (or make a down payment on the process). Germany says the ECB can't do that as it is against the rules. Germany does float the idea of issuing bonds with the national gold backing those bonds. Nobody salutes that idea so far.

Yesterday LCH (London Clearing House) ups the margin on Spanish bond positions. Today they up the margin on Italian bond positions. And speaking of Italy, Italian bond bond yields are at the point where if this interest rate is maintained for a week then Italy is declared insolvent. But the ECB cannot buy Italian bonds either. The 3 and 4 letter acronym's that Europe was going to use to firewall things (which could buy government bonds) are not set up yet and are not funded.

Monday and Tuesday the G20 met and ate. Speeches were made, none notable or worth reporting about. No solutions and certainly no funding to Europe or the IMF were made. Basically the top brass of the world punted (Obama did play golf, for variety I suppose).

And today, like Sherlock Holmes' dog that didn't bark, Bernanke says basically nothing about imminent European meltdown. I guess those hundreds of trillions in derivatives in various flavors won't be affected by Spain, Italy, Greece, Slovenia, Cyprus, Ireland, Portugal and soon France being unable to raise any money in the capital markets to roll debt and pay the current bills. The only current response has been the ECB keeping European banks supplied with enough banknotes so depositors have something to withdraw. Evidently the ECB can fund bank runs.

Worldwide, everybody is pointing at someone else to go first and pony up funds. Everybody so far is, in rotation, checking to the next guy to go first. Santa, some of you will recall, said either they print this month or things go belly up. TPTP don't appear to be printing to meet the need. Maybe there is a Plan C in the wings in reserve. Based on the non-action in the metals it must be a slam dunk doozy of a fix. I, for one, don't see it so I'll continue to watch and eat my popcorn.

what do you think you're the only 1 with ears?  i watched it, i heard it.......what do you want? a book report on it?

saying the "truth" in a video.........is a far cry implementing it. Most people here are awake......so ease off the back door insults....

http://theeveningchronicle.blogspot.com/2012/06/patients-are-in-charge-o...

probably just one or two more listens and i'll figure this unger guy out.

Is the drummer smuggling a yo-yo?

You'll remember last week that Ted saw the light and finally realized that it was the PPT that was manipulating silver.  I e-mailed him to ask:  why won't they be able to continue to do so indefinitely?

He answered the question in today's mid-week update to subscribers.  The answer is that physical demand (mostly investment demand) will eventually lift prices, as it has done basically since SLV started.  The short-term games in the paper silver market will eventually be outweighed by the forces of demand outweighing supply.   OK, Ted, I'm with you on that.

His other interesting point today is that the current short set-up is different from the past.  Usually, JPM has been joined by other commercials on the short side.  This time, however, it's only JPM.  Other commercials are long, not short.   So, it's not simply a case of the crooked commercial cartel vs. the specs.  It's JPM vs. the specs and the other commercials.  His point is that the longs aren't going to fold as easily as they usually do, so JPM might be in some trouble trying to buy back their shorts, thereby forcing prices higher.   I like that.

following Turd's advice that the price would be smacked down just before the 12:30 p.m. Fedlines announcement. I almost caught the lowest price and then I watched the price bounce back up as Turd predicted. So, although I did not make money, I saved a couple of hundred CAN$. Thanks Turd, I will pull the trigger again, the next time on 7/31-8/. Unless, of course something dire happens in the mean time.

Modern technology and being able to clean up and enhance old film footage and audio is pretty incredible.

Thanks Turd, I was contemplating a purchase last night but held off until the morning beatdown.  3 ozs at $1595 before the day's yo-yo action.