Off And Running

Monday, June 25, 2012 at 4:04 pm

Not only is the new week off to a good start for gold and silver, TurdTalksMetals is off to a good start, too. I, for one, am relieved on both counts.

Before we begin, just a few more words on the new site and this is very important:

The new site is designed for greater access. Greater access to my opinions and, perhaps more importantly, greater access to some of the biggest "names" in metals. As I've stated often, because you've made this site so popular, I now have access to people who I never could have contacted otherwise. The new site will give you a greater level of access to them, too, through conference calls and webinars. I really think it's going to be great fun and well worth the subscription cost. That said, please understand this: Nothing about TFMR will be changing. I'll still be here every day, posting new threads and I'll still offer bi-weekly podcast interviews. There should be no noticeable change. In fact, because of the PR associated with promoting the new site, TFMR should grow and become even more vibrant. Anyway, the main points are these:

I recognize that only a small percentage of you will likely join the new site.
That's perfectly fine but the more, the merrier.
The new site will offer a higher level of interaction and access.
TFMR will not suffer because of this. It will, instead, grow stronger.

Just a couple of observations today. I played 36 holes of golf yesterday in a heat index of about 110. As you might imagine, I'm a little worn out.

First, very nice action in the metals today, especially in the face of terrible action in European and U.S. equities. That said, look where we are. The metals plunged last week when The Bernank opened his mouth (BIG surprise) but they recovered some today and...lo and behold...they are still rangebound and stuck in the same pattern that has contained them for the past eight weeks. All the wailing and grinding of teeth yet nothing has changed. Why? Why were all the naysayers and AGAs out over the weekend trying to convince you that the metals were doomed? You got me on that one. Gold has been stuck between 1530 and 1630 for nearly 2 months. At this moment, it's 1585...right in the middle. Silver has been stuck primarily between 27 and 29 with occasional forays above 29 and under 27. This afternoon it is 27.60. Yawn.

And, again, please don't misinterpret the post I made back on Saturday. (If you haven't read it yet, please do so. It's very important.) I firmly believe that physical demand is providing a solid floor under paper price. That said, The Cartels have to be salivating at the potential trading profits of dropping price through the expected sell stops under 1525 and 26. I've got to believe that would do anything to break price down and fleece the sheep once more. The problem is that darn physical demand. Can they break paper price down, even for just a few days or weeks, without getting seriously drained of metal? I don't know. All I'm saying though is this: IF this happens, do not be afraid. Instead, be prepared to take advantage of the final "sale" in price.

Next, the growing conflagration in Syria. You know that I'm not one for conspiracy theories regarding military and terrorist actions. However, the "Syria shooting down Turkish jets" thing I find quite odd. There was even a report over the weekend that, to pull this off, the Syrians were using their new Russian SAMs with direct Russian help. What the heck? Are they simply brazenly over-confident that their Russian benefactors will protect them or is something else in play here? And what about the timing of it all? Here we are on June 25...three days before the SWIFT system is closed to anyone transacting business with Iran. Is it just a coincidence that this is happening right now? I don't know but this sure doesn't seem to pass the smell test. ( http://www.zerohedge.com/news/turkey-claims-syria-fired-second-turkish-jet-says-act-wont-go-unpunished-has-invoked-nato-artic)

Lastly, in his latest newsletter, our pal John Butler has written about something that, heretofore has managed to escape our attention. It seems that back on June 4, the Fed, the OCC and the FDIC circulated a memo asking for comment on some proposed changes to the "regulatory capital risk-weighting framework". The big news is this: Perhaps by January 1, 2013, gold bullion will be reclassified as a "zero-risk" asset, similar in stature and safety to U.S. government bonds. Below is a C&P of John's salient points as well as an uploaded copy of the full report and a link to view it and download it yourself:

""Well, on 4th June the Federal Reserve, OCC (Office of the Comptroller of the Currency) and FDIC (Federal Deposit Insurance Corporation) collectively circulated a memo asking for comment on their proposed changes to the regulatory capital risk- weighting framework. Section 11, ‘Other Assets’, specifies that a “zero risk weight” is to be applied to “gold bullion held in the banking organization’s own vaults, or held in another depository institution’s vaults on an allocated basis...” Whoa. There you have it. As it stands now it would appear that, in the near future, banks will not have their regulatory capital ratios penalised for holding gold instead of government bonds as a safe- haven, zero-risk asset.
While the fundamental backdrop for gold is highly favourable and has been for some years, as the supply of money, credit and government bonds has grown dramatically, this technical aspect of the gold market is also clearly bullish. Indeed, as I wrote in The Canary in the Gold Mine, if gold is re-classified as a zero-risk-weighted asset, “the price is likely to soar to a new, all-time high.” I stand by that statement. In about six months we will know whether I am right, or whether I have misread this one.
Given the potential importance for gold, I’m surprised that this announcement has not been widely reported in the financial press, alternative or even mainstream. Perhaps this is due to the fact that, at this point, the re-classification of gold has only been proposed, not implemented. The change is not due to take effect until 1st January 2013.
With interest rates near zero, however, the opportunity cost of sitting on a non-interest-bearing gold position for six months is close to zero. Yes, gold may appear to be in a downtrend and, yes, it might have been unusually volatile of late, but unless the regulators backtrack, I see this as clearly bullish for gold, enabling much catch-up to Treasuries.
It remains to say something about why, perhaps, US regulators are poised to change bank regulatory risk weightings in favour of gold in this way. I do have some ideas about that. However, those will have to wait for a future Amphora Report.""

https://docs.google.com/file/d/131_n8V-zn4RP0hwWJw8uRKgaNl0DZyBvCDGjEbTAe7xCRiDOVkFvM7a8AaWZ/edit

Alright, that's it for now. I'm going to go take a nap. Have a great rest of your day!

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Comments

Supermarket spies: How the

Submitted by QE to infinity on June 25, 2012 - 9:05pm.

Supermarket spies: How the Government plans to use loyalty card data to snoop on the eating habits of 25million shoppers

Whitehall in talks with supermarkets over sharing their data, which shows exactly what customers buy

People with poor diets would be sent tailored advice to improve their health and lifestyles

Parents could be contacted if their bills show they are not giving their offspring a balanced diet

Giants like Tesco know more about eating habits than the NHS, experts claim

http://www.dailymail.co.uk/news/article-2164270/Loyalty-cards-25-million-shoppers-used-Government-snoop-eating-habits.html

OCC/FDIC

Submitted by opticsguy on June 25, 2012 - 9:19pm.

Talk about a bailout. Buy gold for $1600/oz, have it re-priced at $50,000/oz, capital ratios and solvency issues solved! Badda bing!

OK, Turd

Submitted by cpnscarlet on June 25, 2012 - 9:23pm.

Short and to the point. I was hoping you might guess at who "Dave" is.

Bill Moyer Tabbi

Submitted by foggyroad on June 25, 2012 - 9:26pm.

Congrats TF, all the best with the new venture! Hopefully the funds are adequate to keep You and Yours in the Green :0)

credit to Jesse's cafe Thank you Jesse

Bill Moyers With Matt Taibbi and Yves Smith on the Banks - The Psychopathy of Wall Street

Very Strange

Submitted by cpnscarlet on June 25, 2012 - 9:38pm.

Tonight in the GLOBEX, strange how gold isn't going down. Another break from the action through most of June.

Random thoughts...Syria

Submitted by DrkPurpleHaze on June 25, 2012 - 9:44pm.

Whether the story is legit or not makes little difference in the end.

It's just one more bread crumb leading to what looks to me like a line drawn in the sand that is destined to play out in Syria or that region and hopefully stay contained there. Don't get the wrong impression that I'm condoning it or have no problem with any if it because none of that would matter anyway.

What I see is a campaign to shape the region into what the West wants and knows that it can and has never really encountered any real push back over the last several decades in that region while they've done so. They're now getting pushed back by the Russians and maybe even the Chinese and Iranians if those exercises are reportedly true. Those "exercises" they would be undertaking would be more like them deploying and taking position in Syria under the guise of exercising.

The build up of Western ships/planes/troops and equipment all around Syria must be staggering. And right now they're testing the Syrian air defense systems and locating them every time a Syrian or Russian radar flashes on. These Turkish fighter jet incidents were probes and bait. The game of RISK has been underway for awhile over there at this point.

I don't know how it plays out except that they seemed determined to play it out over there. I see no quit in Putin and I think this is way bigger then Obama himself right now. I don't believe the West knows anything else then to press forward and lay waste to whatever it is that they want to shape or hasten. I see no quit in the West and they'll actually do what we think is craziness. They'll fight the Russians or Chinese or Iranians over there for as long as it takes. That's what they know how to do and do well. Let's face it. The colossus that represents the US military and allies is immense. The U.S alone has approx 48% of all naval assets on the planet. The entire planet! And they're building more carriers as I type. Think they're confident or what?

Hopefully none of this comes to be and Assad falls from within and this implodes on itself. The best scenario the West can hope for (besides Assad falling) is that they take control of and divide the southern part of the country away from Syrian and Iranian control. Isolating Lebanon from Syrian/Iranian/Russian influence would be huge in many ways and solve Israel's northern border problem with Lebanon and the Golan Heights and other area's on that common border.

I'm not advocating any of that but merely saying what I could see them doing. It's a big machine and I think Russia is making a big mistake here if they join the fray. My only real hope is that it stays over there and neither side escalates it further and starts moving other pieces on the RISK game board.

I'm pretty sure I know what player will just flip the board right over because they know they can. That's the part that concerns me. I hope Russia/Iran and maybe China realize that. I see unpredictability by the West and a history of violence and a willingness. What do they see and is Assad worth it?

I hope, and I think, Assad falls first before any of that happens. At some point he does.

Yes, gold held in bank vaults

Submitted by tmosley on June 25, 2012 - 10:59pm.

Yes, gold held in bank vaults is "zero risk", so by all means put your gold there, and "trust us".

lulz

re: Supermarket spies

Submitted by treefrog on June 25, 2012 - 11:11pm.

supermarket loyalty cards are easy to scam. kilgore trout has several in his name. kilgore trout is a disreputable, semi-autobiographical character in several kurt vonnegut novels, usually appearing briefly in the shadows. (google "kilgore trout"!) his supermarket loyalty cards have an address in the middle of an intersection. (he used to have an address a couple blocks off the end of a pier.) he has a telephone number remembered from another town, years ago.

....but his loyalty cards get the same discount at the check-out. they've worked for years.

kilgore often attends gatherings where they issue sticky lapel labels that say "hello! my name is..." it's really fun when kilgore runs into a vonnegut fan.

sometimes when the system asks for personal information it's time to stand your ground and confront them. sometimes it's more fun just to fuck with their little minds. :)

Silent Spring Comes to Fukushima

Submitted by Magpie on June 25, 2012 - 11:21pm.

http://fukushima-diary.com/2012/06/silent-spring-comes-to-fukushima/

Forest of no chirp.

Any beer drinkers here?

Submitted by DrkPurpleHaze on June 25, 2012 - 11:21pm.

Thought so...

http://dailyinfographic.com/

tropical storm debby update

Submitted by treefrog on June 25, 2012 - 11:22pm.

debby doesn't do dallas this year.

debby seems to be stalled about 60-80 miles off the gulf coast south of appalachicola fl, and the surf is pounding lots of expensive beachfront property to watery shreds. inland, it rains ...and rains. local reports of 15 inches of rain in the last 36 hours, and no let-up in sight. the drought has definitely broken.

hereabouts, max wind gusts 30 knots or so (guessing). no major damage that i know of. a few branches down on powerlines, i lost grid power at 7:30 last night and it was still out when i left for town early this afternoon. when i got home at 10:00 this evening it was back on, but it flickers a bit from time to time. gotta love huricane season. california's got earthquakes, florida's got hurricanes, boston's got beans.

4th sign of the apocalypse- SwS, Cal Law, and Pining meet up!

Submitted by Pining 4 the Fjords on June 26, 2012 - 12:15am.

I had the great pleasure to meet with two famous fellow Turdites today- SwS on the left, Cal Law in the middle, and the dead parrot on the right. What a fun time, truly outstanding discussion, and damn fine company. It is just wonderful to be able to talk freely with people who have both eyes wide open, see what is around the bend, yet are unbowed and confident. Incredible insight into the housing bubble and looming debt implosion from Cal Law- a whip-smart straight shooter. He is also a very classy guy and insisted on paying for lunch (I've got the next one CL- promise!). And SurvivalWithStyle couldn't have chosen a better name- cool as ice, and a breath of fresh air in his attitude. The master of Zen stacking, he had the line of the day: "Every day we get is a gift. Every day we can stack, prepare, have a cold one with our friends... all this is a gift".

What an honor to break bread with these good people in person- friends who I had not met until today, but who were and are friends nonetheless. If you have a chance, I would highly recommend getting together with a Turdite or two in your area- it is remarkably good for the soul.

@pining

Submitted by bam on June 26, 2012 - 12:29am.

SurvivalWithStyle looks like he might catch the odd wave. I approve.

You're looking a little stiff on the right there Pining.

Re: 4th Sign of the Apocalypse

Submitted by ReachWest on June 26, 2012 - 12:36am.

Wow - excellent to see you guys in digital colour - and all sporting shades. Just like the MIB (Men in Black), the sunglasses are a true sign of a Turdite meet-up. [And the big yellow brim is another clue].

Thanks for sharing that with us - makes one understand that this virtual community is actually very, very real.

Commemorative coin for the meet up of SwS, CL and Pining

Submitted by Excalibur on June 26, 2012 - 12:40am.

4,000 Shilling (Three Wise Monkeys)

treefrog, I'm riding it out

Submitted by Prize Fighter on June 26, 2012 - 12:44am.

treefrog, I'm riding it out with you. You in the panhandle?

Pining, that is sweet! In my experience, stuff like this just doesn't happen with other sites. I think what a lot of naysayers miss is this isn't just about silver and gold but about the search for truth and that which is good. Just the thought that you guys got together does a lot of good.

Don't think it will be the last, either

Submitted by Magpie on June 26, 2012 - 1:29am.

http://in.reuters.com/article/2012/06/25/economy-stockton-idINL2E8HP8Z72...

(Reuters) - Stockton, California was at risk on Monday of becoming the largest U.S. city ever to file for bankruptcy as the clock ticked down toward the midnight deadline of talks with creditors.

Thanks Admin

Submitted by Juan Moment on June 26, 2012 - 1:36am.

Thanx Admin team for putting the Metals & USD charts back on the home page.

Which brings me to one of the reasons I pay a smallish monthly contribution to TFMR, Turd and the web magicians do actually try to improve this site, offering now a smorgasbord of tools and widgets to engage with like minded people and stay informed. The admin team listens and responds to visitors and their ideas and requests. The current forum on what sections and functionalities we readers would like to see added is the perfect case in point.

Regarding Syria...

Submitted by charles williams on June 26, 2012 - 1:36am.

keep in mind that a "western" (US, NATO) attack would be a war of aggression and as such is a war crime. Of course, it's been a long time since the USG has flinched from inflicting war crimes. As readers of this site realize, we are treated to big time propaganda on a daily basis from the MSM. This is especially so for the Middle East. The so-called Free Syrian Army is a band of terrorists trained and armed by the CIA, NATO and Israel. Assad's regime (still supported by a majority of Syrians) is being targeted by the West and Israel in order to drive a wedge between Hezbollah and Iran, further isolating both of these players before the ultimate prize— war with Iran. Syria is essential to the resistance of Iran and Hezbollah against US, Israel and NATO aggression. However, Russia will not back down and is no wimp. No doubt Putin, in Israel today for "discussions," told Netanyahu that an attack on Iran is an attack on Russia. Russia has drawn a line in the sand regarding Syria, and this current confrontation is fraught with danger for a multi-regional war or even world war. Although bullish for the metals, this is a scenario that bodes ill for all humanity. Sadly, the US is a persistent imperialist aggressor and despite our powerful military we may soon discover most painfully (as all empires before us have learned) that there are limits to imperialist expansion. As the ancient Greeks warned and book of Proverbs reiterates, "Pride comes before a fall." How much more so regarding the kind of militant arrogance we have been flaunting the past twelve years.

A terrorist in the White House

Submitted by Magpie on June 26, 2012 - 1:36am.

http://thehill.com/blogs/floor-action/house/234573-rep-king-seeks-answers-on-how-terrorist-group-member-gained-white-house-state-dept-entry

House Homeland Security Committee Chairman Peter King (R-N.Y.) has asked the Obama administration to explain why a member of a known terrorist group was allowed to enter the United States last week and participate in high-level meetings at the White House and State Department.

King wrote to Secretary of Homeland Security Janet Napolitano on Sunday to ask several questions about Hani Nour Eldin’s visit last week. Eldin is a member of Egypt’s parliament, but he is also a member of Gamaa Islamiya, or the the Islamic Group, which has been linked to violence in Egypt and is a designated terrorist organization.

SWS/Cal/Pining

Submitted by Tabberto on June 26, 2012 - 2:17am.

nICe one GuYs

Rules?

Submitted by Bongo Jim on June 26, 2012 - 2:20am.

Whatever "rule" is in the way will be changed for future play.

If terrorism is defined as being linked to violence...

Submitted by charles williams on June 26, 2012 - 2:21am.

there is no shortage of terrorists on this side of the Atlantic, in our own government and among our populace. By the way, "waging aggressive war" (the war crime of those executed at the Nuremburg trials) is the very nature of US foreign policy, as well as that of some of our allies. Hmmmm.

Are we near the end?

Submitted by Senseosensei on June 26, 2012 - 2:27am.

http://sgtreport.com/2012/06/alert-from-a-reader-blocked-zones-the-end-of-america/

This story is totally unconfirmed. But a lot of points are "old"news, like the Fema regions/camps, the drills of US military in the streets, the extraordinary purchases of ammo, weaponry, drones, tank-like vehicles. Home security being everywhere now. All the legislation..

Last week on the Alex Jones show a caller confirmed that police cars are being made and stored in special vaults by the thousands, unmarked for now. Special units raiding farms, fining farmers when their kids are caught helping out, destroying crops, intimidating.

It sure doesn't "feel" good, at all.

Rand Paul is a sellout

Submitted by tobydaniel on June 26, 2012 - 2:34am.

I know this is a metals page but I think this is of importance. Need more evidence of Rand Paul? Look no further. Sad but true. I cant believe he voted against this. I dont know why he voted against this and I dont know his heart but you will know a man by his fruits. Actions speak louder than words in this case.

http://www.naturalnews.com/036301_Rand_Paul_GMO_labeling_Senate.html

Up and Running

Submitted by TREACHEROUS CRETINS on June 26, 2012 - 5:34am.

I couldn't resist posting this track by the wonderful Bela Fleck - such gentle optimistic music from the Tales From The Acoustic Planet series, here accompanied by Tim Rice [ acoustic guitar ] and Victor Wooten [ bass ]. Get volumes 1 + 2 you will never regret it.

@ SwS, Cal Law, and Pining meet up!

Submitted by Lamenting_Laver... on June 26, 2012 - 5:56am.

Fantastic pic! You guys are a handsome bunch. Wonderful to hear people are meeting up like that.

Apropos picture. Can anyone help this ignoramus on how to upload a pic/avatar to one's profile?

Rand Paul

Submitted by opticsguy on June 26, 2012 - 6:37am.

I don't know all the details, but it looked as if once again Republican amendments were blocked from the senate bill and it probably had some language in it that was much worse then the good gained by having GMO labeling added to it.

I'm all for alternative news, but Natural News in the past has said many things that are either exaggerated or outright falsehoods. They may have a personal beef with Rand Paul, also.

Do not use Natural News as your only source of information about this.

SWS/Cal/Pining

Submitted by Art Lomax on June 26, 2012 - 7:12am.

Its great you guys could meet and have a real conversation. Hat tips to all of you. And I second what SWS said,

"everyday is a gift". We all need to spend more time with our friends, family, and loved ones.

The Polished Turd

Submitted by MrSteve72 on June 26, 2012 - 7:54am.

Hey there turd community!

There's a show down under that's about television advertising with a panel of experts but very light hearted humour thrown in for good measure. Anyway, last season they did a segment on the worst TV ads and were going to give away a prize to the winner.

I've attached a clip for your viewing pleasure.

Turd, this one's for you buddy!