S.N.A.F.U.

In the true, military sense...our situation remains "normal"...

I mean, seriously. Nearly every central bank in the fiat world is rushing to debase and devalue its currency in a vain attempt to monetize its debt and extend The Ponzi. This cash invariably sloshes around the planet and drives everything higher. Stocks, crude, food items. It doesn't matter, they're all going higher except...the metals, of course.

The only real monetary alternative...the two things that should be benefiting the most...the only alternatives to fiat currency...remain under assault and pressured lower. Why? Well, that's easy. The Fiat Masters must not allow gold and silver to appear as a reliable alternative. The illusion of prosperity and calm must be maintained, therefore, gold and silver must be kept lower.

So, the situation this fine Tuesday remains normal, all F'd up. Stocks are soaring and reclaiming all of the losses from yesterday. The Pig is stable and remains a "safe haven". The U.S. 10-year note continues to yield 2%...finding willing buyers even though they are virtually guaranteed a minimum of -10% annualized real return if held to maturity. (But, hey, when the only "willing buyers" are The Goons at your own central bank, why does it matter anyway?) And the metals continue to be slammed by The Cartels and their willing and unwitting accomplices in the momo trade. Whatever. It's all just a complete sham.

Please, I beg you, use this remaining time smartly. Though it's probably wise to play along with some of your cash (if they are going to relentlessly drive stocks higher, you might as well let them make you some extra fiat), now is the time to be preparing for The Paradigm Shift. This global monetary change will not occur this week...it likely won't occur this month...maybe not even this year...but it will occur. Of that you can be certain.

In the meantime, in our SNAFU world, the most valuable assets that you can accumulate...physical gold and silver...continue to see their prices controlled and driven lower at the urge of a machine and a headline. Oh wow! Something called the "non-manufacturing ISM" can cause prices to gyrate wildly both before and after the "news". Amazing. Simply amazing. Just btfd and forget about it, lest you be driven crazy like yours truly...

So here are your updated charts. Well, sort of updated. I printed them off about an hour ago and prices have moved about quite a bit since (see paragraph above). Regardless, the pennants and resistance levels remain valid so these charts should remain helpful.

Look, I know this is extremely challenging, frustrating and agonizing and it seems that it will go on forever...that The Forces of Darkness will remain in control of the metals and that they will simply create enough paper metal to suppress price to eternity. Let me assure you, they can't and they won't. In fact, I am convinced that gold is on the verge of a major breakout. Open interest fell Friday to just 423,613. This is the lowest level since the price lows of 12/27/12 and late August of last year. Combine this with the CoT structure, the charts and physical picture and you've got the recipe that has preceded virtually every other breakout. This will undoubtedly prompt a rally in silver, too, so hang in there. Just be patient.

A couple of headlines that you cannot and should not ignore. First, it's official. The U.S. no longer has a "debt ceiling". The issue has been permanently punted by the politicians who were afraid that the negative press was beginning to affect the re-election possibilities. Oh sure, tack on the silly "you'd better pass a budget or we'll hold back your pay" nonsense and The Sheep and MSM will just forget about the whole thing in a few days. August 2013 will come and go and the U.S. debt will simply grow unabated, to infinity. http://blogs.wsj.com/washwire/2013/02/04/obama-signs-debt-ceiling-law-now-what/

In regards to "The Paradigm Shift", here's your latest world gold reserve update. http://www.zerohedge.com/news/2013-02-05/china-imports-record-amount-gold-december-price-drop Your "friends", the Chinese, officially imported 834.5 mts of gold last year, doubling the already-massive 431 mts they imported in 2011. This brings they're reported official holdings to somewhere north of 3,000 mts. However, none of that total includes the gold that they have imported "unofficially" and that which they simply mined themselves. (Remember that in 2007, China surpassed South Africa as the world's largest producer.) And please, please, don't forget about this: http://www.tfmetalsreport.com/blog/3924/gonefor-good The metal that the Chinese are taking from The West is being re-cast into one kilo bars, never to return to the LBMA system. It's gone and it ain't comin' back.

(And yet, paper price declines. I just happened to check prices a minute ago and I see that gold is now about $20 off its highs of an hour ago. What a complete joke. Nice to see that this post is appropriately titled, though.)

And finally...after all this time reading about currency devaluation and Chinese plans...it's time you connect a few dots. If you think that this: http://www.zerohedge.com/news/2013-02-05/chinese-warship-prepared-fire-japanese-destroyer-last-week and this: http://www.telegraph.co.uk/news/worldnews/asia/northkorea/9846447/North-Korea-preparing-for-two-nuclear-tests.html and this: http://www.guardian.co.uk/world/2013/feb/05/north-korea-video-us-city-flames are completely unrelated to this...

...then you're crazier than I am. It's a wild and dangerous world out there, full of intended and unintended consequences. Please continue to use his time wisely and btfd.

TF

276 Comments

Hammer's picture

http://ptwc.weather.gov/ptwc/

http://ptwc.weather.gov/ptwc/text.php?id=pacific.TSUPAC.2013.02.06.0149

Earthquake S Pacific. Check link for those that may be affected by possible tsunami.

The Watchman's picture

Solar Demand=1 gigawatt takes 80 TONS of SILVER

BEIJING—China plans to more than double its installed capacity for solar electricity this year, a move that could breathe new life into Chinese solar manufacturers suffering heavy losses.

In a speech at China's annual national energy work conference dated Monday and released on Tuesday, Liu Tienan, deputy director of the National Development and Reform Commission, the country's top economic planning body, said China would add an additional 10 gigawatts of installed solar power capacity this year. Mr. Liu didn't provide any specific details of how it would achieve this goal.

China's solar power capacity rose to seven gigawatts in 2012, Mr. Liu added. Chinese officials previously said the 2011 capacity was three gigawatts.

The ambitious target would put China's solar capacity within striking distance of its goal of reaching 21 gigawatts of installed solar power capacity by 2015, and suggests the government could either exceed or even adjust its goals.

The state-run Xinhua news agency reported last month that "high-ranking government officials" are considering doubling China's solar-capacity target to 40 gigawatts by 2015 to support local solar manufacturers, citing Meng Xiangan, deputy board chairman of the Chinese Renewable Energy Society.

China's solar manufacturers have suffered from a global overcapacity in solar-panel manufacturing and thinning margins. China's State Council, or cabinet, said last month that the industry's problems also include "excessive dependence on foreign markets and broad operational difficulties." Gross margins for solar panels globally have fallen to less than 10% from more than 30% in 2010, according to investment bank Maxim Group.

China has other motivations. Beijing has set targets for limiting increases in carbon emissions, which are blamed for causing climate change. It plans to reduce carbon intensity—the amount of carbon dioxide emitted per unit of gross domestic product—by 17% between 2011 and 2015.

It wasn't clear how China would pay for such a plan, said Aaron Chew, clean-energy analyst at Maxim Group. "The pipeline [for these projects] is real, but lack of financing making the realization of that pipeline is another matter," he said, though he added that China's solar growth should make its 2015 capacity target "easy to beat."

Chinese solar companies accumulated heavy debt between 2009 and 2011 to fund their capacity expansion, but a market downturn left them struggling to make interest payments. Support from local banks and local governments helped carry the weight of the debt.

The country's support of its solar companies has been central to a global fight over solar subsidies between Beijing, Washington and Europe. In what is potentially its largest trade dispute to date, the European Union has accused China of dumping some of the $21.48 billion in solar panels it exported to the EU last year at unfairly low prices.

However, the State Council has said it will reform the industry, such as by encouraging mergers and acquisitions. The cabinet will reduce government support and ban local governments from backing failing domestic solar companies, it said.

Other efforts announced by the cabinet last month included plans to strictly control the expansion of new projects to manufacture polysilicon and solar panels, promote electricity-price reform, encourage the use of independent solar-powered generators and make it easier to supply solar power to China's electricity grid.

"We believe that it is no coincidence that China is aggressively expanding its solar installation goals at a time when its manufacturers are struggling to stay alive," Shyam Mehta, an analyst at clean-energy market-research firm GTM Research, wrote in a research note last year. "While our current base case forecast already anticipates cumulative installations of 22 [gigawatts] by 2014, there is a definite possibility that demand in China in 2013 and 2014 ramps up even faster than that due to continued downstream support for ailing manufacturers."

SilverTree's picture

Virginia Wants to Mint Its Own Coins

Sal Gallo's picture

Bad Batch of Canned Bacon

Obviously that or you have hit your head too hard.  Please do not confuse a nut with someone who believes in the right to own firearms.  I can assure the latter has nothing in common with the likes of Jamie Lee Dykes or anyone like him. 

Zoltan's picture

Silver Thoughts

BallyAle, the number of units sold/shipped per month would be a telling statistic.  I commented that an iMac purchase this Christmas in Canada was sourced right back to China.  No display models or stock in the big box electronic stores. 

I have always been of the opinion that the price would break when there was a physical shortage in the real world of manufacturing.  The CFTC and their "silver investigation" won't be enforcing any laws until after the fact.  Paper silver to be settled in fiat dollars, thanks for playing, suckers (or maybe MFG, PFG, does QFG exist cause they seem to be next?).

We will be subjected to grinding sideways prices with the usual waterfall drops to keep the price in line and keep sentiment low.  Check your miners lately? Ouch.  Until something gives, and then look out.  The mania in this market is in the future.

Z

BigChief's picture

Eric'O I used to very much

Eric'O

I used to very much enjoy your contribution to this forum.  I used to be a quiet lurker in your miner forum and financial repression.  You brought alot to the table.   Except for a couple of abandoned shovels,  it seems you mostly abandoned those efforts and  changed your own personal strategy in the miners.  By the looks of it, you've turned into mostly a lurker coming out occasionally with the occasional angry jabs and upper cuts at views you don't agree with and go to no great length to support.  

Of course you know that all that was needed to take out an old bus driver and kidnap a kid was a punch, a bat or a knife.    Anyway this is not about gun control for you.  You have an axe to grind.  I recognized this not too long ago when you came onto the main blog yelling at Turd that he should shut down tfmetalsreport because the content of the material being discussed didn't agree with you.    Who are you to tell another man how to run their business?

And also I recall your comments about the election and how you came screaming out with a big victory sign when your choice for President was elected, Obama, while at the same time giving everyone else the middle finger because they were loosers.  

It sounds like to me that there is not very much that is said on this site that you agree with other than buy gold. It also seems that you hold a great contempt for individuals who have a different opinion than you and that you spend a long time on this forum withholding your minority views. 

I don't take exception to your opinions,  views, who you vote for, your opinions on gun control etc...   Every man is entitled to them in this society.  I take exception to your passive aggressive judgmental posts suggesting that everybody is full of shit because they believe as they do and spend no dirth of energy putting forward lucid arguments as to why they believe it.  

When you can find peace within yourself, you'll find you'll be able to co-exist with others no matter their point of view and won't find the need to take pot shots at people as a way to validate your minority views among this collective.

I retreat back to being a quiet observer.  I seem to do that well.

Eric Original's picture

So that's it then?

Either write it off as a nut, or write it off as some kind of grand Obama plan.

Couldn't possibly be the inevitable result of the Doomsayers party line?

You guys can do better than that.  Come on, let's see some youtubes with all the wrong dates or something...

ag1969's picture

Troll Blathers........

"Either write it off as a nut, or write it off as some kind of grand Obama plan.

Couldn't possibly be the inevitable result of the Doomsayers party line?

You guys can do better than that.  Come on, let's see some youtubes with all the wrong dates or something..."

_____________________________________________________________________________

Whatever dude!  Thanks for stopping by to act like a douche.

cliff 567's picture

BigChief indeed

I just read 15 comments and BigChief's commment was last, I liked it and went back to give a hat tip to the author and he had zero.

I tipped his hat and the total was 6 hat tips displayed.

A short time and lots of response, 

BigChief indeed.

Eric Original's picture

Hey BigChief

I know you go back a long while on the blog, so I respect what you are saying.  

Fact is, I used to really enjoy contributing to the blog, but now Main has become a wasteland.  

We've got a leader on the board coming out and saying he's studied everything and decided Sandy Hook was some kind of fraud.   The minions chime in with approval. 

What the hell does any of this have to do with metals, or the Fed, or even bacon for God's sakes?  It's complete nutter stuff.  That's what I'm pointing out here.  

Axe to grind?  F' sakes...  

This lunatic stuff goes on here on Main day in and day out, boom boom boom, with Turd's help by the way, and when one guy points out the ridiculous hypocrisy of it all, he's branded as some kind of nutjob.  This is classic Doomsday Cult stuff.  Look it up.

AgAuthaChristie's picture

@ Eric original

Calm yourself, Eric.  That weirdo in the bunker got what he deserved.  Not because he owned guns but because he was a murderer and child kidnapper.   Trying to make a connection between legitimate concern for the second amendment and this event is facile and dishonest.

AgAuthaChristie's picture

By the way Eric

I agree with you that many of the people on this board are borderline retarded but just because they may be strong proponents of the 2nd amendment doesnt make strong second amendment support suspect. 

Green Lantern's picture

Re; China

I have very many ethnic Chinese friends and have done business with ethnic Chinese all over Asia for over 35 years. Chinese people are very decent hard working people who have strong family values and push their children very hard to behave and achieve. These were once familiar traits in American society.

What you say is true as far as my experiences go having worked for multinational corporation in international marketing, working for a chinese company,  studying the language, marrying one, and watching how vastly different their business community is from the local American business community in both ethic and strategy.   Their groceries stores have put American chains and Italian deli's and butchers out of business.  Everything is bulk.   They have their own farms that they grow their own vegetables, better, fresher than the american markets.    hey have their own trucking companies and distributors all under cut their American competitors right here in the US.  Their pricing model is different.   Cheaper prices lead to greater quantity of purchases.  American paradigm is what is the maximum I can charge on any given product and still have it sell. 

The Western mind cannot and does not understand the eastern way.   Our languages are so different, and I'm not talking about alphabet, but the way they define the world.    It takes alot and full immersion in their culture to understand their ways and our political and corporate entities do not.   All the big consulting groups like McGinsey and Boston Consulting who do the international consulting for US corporations make big money for not understanding the Chinese psyche. 

My Chinese professor was one tough son of a bitch.   But he wanted nothing more than a bunch of white adult professionals who wanted to do business with china to understand the culture more than the language.   He would put you on the spot and make you feel like a fool but he had your best interests at hand.   For he knew, that if you wanted to do business with the Chinese and succeed in that culture, you'd better know what the hell you were doing and nothing less than full immersion into a foreign culture was going to help you. 

He pointed out to us that when the Chinese shot down a US spy plane over Hainan Island in 2001, the United States didn't have one Chinese speaking ambassador or foreign official who could immediately open up communications with them to diffuse this situation.  As opposed to the dozens of Chinese ambassadors who come to this country and speak/read English.  How the hell are you going to diffuse a heated situation when you don't send anybody that understands the language or the culture?     We don't even try.  That's arrogance.   He said they probably got in their cars and got out of dodge.

When I was working for a multi national corporation, we would cry.  We can't do business with China.  They don't respect our patent protection laws.    The mistake we made like all companies do, is we go in their with our high powered consultants and we begin dictating to them what we want and how we want it done as the Chinese officials laugh and snicker.  Instead of going in there and asking, what can we do to help you and work within your system. 

When Hu Jintao comes to the white house (go back and listen to Obama's speach) the first thing he does is give the Chinese a laundry list of things that we want and they'd better do.  Imagine, I came to your house and told you how to run your affairs.   That usurps every common sense principle of negotiating.

We don't understand their psychology.  We don't understand their language.  We tell them how to run their monetary policy (Chuck Shumer wanted to pass a law censoring china for their monetary policy) we tell them how to run their laws.   This is not say that China is all messed up in these things but as the fathers of this country understood if you want to do commerce with a foreign entity, you stay the hell out of their politics.

There is alot I didn't like about working around Chinese and it wasn't their bathrooms.  Their business meetings and entertainment around drinking and eating is all ritualized.  You have to play their game.  You have to present your business card in a certain manner.   Drove me F$6c'n nuts.  You always have to keep in mind that you can not appear smarter and that you always have to allow them save face.   Around ambassadors and diplomats you'd better show them utmost of respect.    You must put aside your cultural mores and opinions.   And you better know how to drink the most powerful liquor, Turkish the exception, that I've ever had to drink.    Their rice wine ain't no joke and it's not like Japanese.  It's high grade gasoline.     Chinese like all cultures have their power hungry and their regular everyday working people.  But in general, those who are in goverment are as much as idiots as those we elect.

Mr. Fix's picture

@ Eric Original

So you don't like my opinion?

TOO  BAD!!!

kingboo's picture

Everybody has a point of view......we want em all, no?

Eric O is a good dude........a lot of old timers around here know it too.....    posting opinions on forums doesn't always translate well, everybody here surely knows that by now....  I know i've mis-construed posts....and i have had my posts mis-construed......it happens. big deal.....   I know where Eric O is coming from.....

I personally think the guy did go off the deep end.......whether he had a "message" or not is irrelevant....

What is relevant is that he went too far down the rabbit hole.......isolated too long.....and then freaked out and killed someone..     now don't tell me there isn't a lesson in this story for all of us to heed....

So, in that light...........Eric O's post makes perfect sense to me.....

ancientmoney's picture

@Eric O . . .

There are several opinions about what really happened in CT on December 14th.  You seem to swallow the MSM version, which is fine by me.  Just don't disrespect others who may see beyond, and differently.

SteveW's picture

@GL: China

From your comments about USans treatment of China and Chinese it seems that they are treated no differently than any other peoples by those who are "exceptional".

Many years ago the head of DEA visited Toronto and told us how to behave. Were it not for your threats I think Canada would have decriminalized marijuana many years ago.

Texas Sandman's picture

why I love the morgue

They keep the price of silver low for years & years so I can keep stacking.

They create lots of volatility in both directions in the paper futures, which means lots of ops to trade in either direction or both during the day.

What's not to like about this manipulation??

Thank U Blythe Masters (TUBM)

Green Lantern's picture

@SteveW    I think it was

@SteveW    I think it was more explaining to the Canadian officials you can't grow decent ganja in frozen soilcheeky

I see nothing, I hear nothing.  Say nothing.  

Puck T. Smith's picture

169th!

You guys are killing me.

Hammer's picture

Some might be whinging about

Some might be whinging about the price in USD but really you should be grateful you have the reserve currency - it is helping you no end. In Japan the price of an ounce of au went up 

http://www.ishifuku.co.jp/english/market/historical.html

add 5% consumption tax to the prices, 8% next year and 10% in 2015 (which you get back to be fair when you sell) but there are also bar charges (15-40 bucks a pop for au depending on size - none for large purchases and 15-100 bucks a pop depending on size for ag bars with none for large purchases) when you buy and sell and premiums to pay on coins of course. Not cheap.

and you get this

http://www.ishifuku.co.jp/english/market/index.html

For a Maple or a Vienna, here is what you pay today in yen (from LMBA registered company in Tokyo as above). There are no special deals and other companies charge the same. (added sell and buy)

為替(TTS): 94.65円( +1.36)

  1オンス 1/2オンス 1/4オンス 1/10オンス
メイプルリーフ金貨・ウィーン金貨ハーモニー
小売価格 sell 179,093 91,252 47,209 19,330
買取価格 buy 162,999 81,499 40,750 16,300

We not only have your much talked about 1800 usd price, we have 1900 here !

القراع عصفور's picture

EO

Eric Original was one of the "founding fathers" of this site.  When this site was first getting off the ground, it was important to keep the main page on topic.  It was clearly stated by Turd, (please read the TOS) that all off topic stuff was to go to the forums.  The moderators enforced this, and the site grew rapidly.  Lately, there has been a shift towards a more "laissez faire" attitude, and I am in the camp that believes that TFMR is suffering for it.  So before you all jump on the bandwagon bashing Eric for an obvious "frustrated and angry" post, remember that this blog might not even be here today if not for his contributions from the very beginning.

Mr. Fix - I'd call you a narcissist if I thought you would even bother to look up the meaning.  So I'll just say this... Get over yourself. 

Mr. Fix's picture

@ Dryocopus pileatus

I gave up caring what  people thought of me a very long time ago.

You are going to have to do one hell of a lot better than that. 

JustAnotherLemming's picture

@Green Lantern, Woodpecker & Hammer

So are we staying here for the night then?

Hey Main Street! Do you mind if I crash on your sofa?

Cobalt Silver's picture

Alleged 19th Century Chinese Sichee

123.6 Grams, about 60% silver

Issued by regional leaders.

Debasement of the currency had begun.

Bought on Ebay last year for $33. Cdn.

Chinese folks I work with tell me it looks real and common in China.  The underside Identifies the Dynasty and Region by virtue of the leaders name inscribed. 

Inserting a Photo on the blog is a challenge for an old guy.

The unit of measure was the Teal.  It was not a rigid standard and purity varied greatly.  Anyone with knowledge to share please chime in.

Monedas's picture

Dagney !

We'd follow you anywhere .... to make the world safe for democracy .... you are the pin up girl .... for the sons of freedom !  Love ya !   Monedas     1929    Comedy Jihad The Few, The Proud, The Free World Tour    devil

القراع عصفور's picture

JAL

I don't hang on Main anymore.  It is now outside my circle of trust.

lakedweller2's picture

So What Is New

Started stacking and buying shares in 2001.  Had a lot of fun until 2007.  Not happy since, and need to do other things like mow the lawn and wax the cars instead of wondering whether this is the day that the cartel fails.  The cartel hasn't failed and the stocks have gone up and down in the trench of hell for 4 years.  My stacking has continued and have maintained by investing in what-ever-the-hell-there is to invest in.  That makes me even after 4 years, despite every entity in the market that has inside contacts being able to naked short the wallboard of stocks in the world, with the blessing of our leaders, who have been elected and re-elected to protect us.  Regulators is a term used in prehistoric times.  Don't exist and don't have enough cajones to exist.

Didn't vote for anyone the last time and figure that the dumbing down of America has worked so well that an informed vote is giving someone in Homeland Security an orgasim to direct a drone over my house.  Got food, metals, stocks, sold bonds, real estate but so what.  Hasn't stop the transfer of wealth.

Wrote my dumbass Congressman and Senators and that just got me on their hate list.  Wrote the president and that got my message in a direct path to the trash can.  No help in Disney Land since they are water boarding Mickey.

Tired of technical analysis, fundamentals, algos and people doing God's work.  Have to mow the lawn and clean the cars.  Enough of criminals, scum bags, perverts, sociopaths, narcissictic assholes, and  knowing how to spell the abnormal personalities that are part of this sentence...

Sick time in history and no chart can cover it up.  Might as well use the Constitution as a floor mat.  Washington does.  

Negative thoughts to follow.

Edward G's picture

Troggs ORME's and M-State Gold

Just to say that the cure that  in my case ridded me of lifelong chronic severe body eczema a year or 2 ago happened to be eating quite a bunch of gold, prescribed by a legendary alternative, though real MD, doctor. Happens to have changed my life.

www.energeticnutrition.com I believe is the main outlet in USA,  if you're interested,just scroll thru their products and you'll see the  Au, for 'Etherium' products, another term for orme's or ormus.

Yum yum!!

ps, I have always assumed that T'ville has a second amendment in its constitution of the right to bore arms against main st. yippeee!

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