TFMR Podcast #23 - The Jim Willie Trifecta
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On Wednesday, I spoke again with the inimitable Golden Jackass, Jim Willie.
First of all, I hope you've got some time to devote to listening as this baby clocks in at about 55 minutes. I tell you what, though, it's well worth your time. Think of it as two acts. In the opening act, Jim answers some of the Turdite questions that were submitted earlier this week. We tried to cover as many as we could but we only got to 5 or 6 of them. The questions were so good that it took a while to answer them but we tried our best to hit the most popular queries. In act two, Jim and I discuss current events and the developing "black hole" of the U.S. treasury market and U.S. government deficit funding.
Jim's on his game here so sit back, relax, maybe crack a cold one and enjoy.
Jim Willie

Jim Willie is an original. If you want to be official about it, you can call Jim a "statistical analyst" as Jim has a PhD in statistics from Carnegie Mellon. Since 2004, however, he's simply been known as "The Golden Jackass".
Through his website http://www.goldenjackass.com/ Jim has developed a subscription-based newsletter service which is second-to-none in its quality and its "outside-the-box" thinking. Jim's very affordable service, The Hat Trick Letter, can be found here: http://www.goldenjackass.com/subscribe.html
p.s. As you can tell by his bio picture, he has an extraordinarily large brain, which he uses to all of our benefit.
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Monday, April 1, 2013
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Friday, December 7, 2012
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Friday, November 9, 2012
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Friday, August 31, 2012
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Thursday, June 14, 2012
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Friday, May 11, 2012
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Comments
I am with Senseosensei
This is a great forum, and it brings together an eclectic group of people who call bullshit on the system.
That these minds here are not a little more open as to some of the possible undercurrents, is to me, a shame. I mean, how can just the Fed for example, have had such enduring power for a century, within the group understanding that cock-up and randomness (rather than conspiracy) determines events and the unfolding of history.
A hidden power structure is one explanation why voting changes nothing, why American presidents have been shot (don't forget, Reagan was shot early in his first term), why certain wars happen, why bodies such as Fed can exist (not accountable to, voted in by, or removable by, the public, or any other process known to man).
From the pattern of votes over the topic as raised, it is clear that the topic is not for this blog. I would add though as a parting thought to ponder, that the old banking families then resident in Europe, 'the Octopus' if you will, were scheming to take back control of the USA ever since its independence in 1776, and they scored a major victory in 1913. These dynasties go back a lot further than 1776; they have been around for millenia. All this stuff about PM price suppression, is just one, relatively inconsequential symptom, of the way that our world is run.
Oh well.
Back to that 5,000 tonnes of physical.
No No No No!!!
I am a big Jim Willie fan, but Jim, you just embarrassed yourself on that particular point.
To quote such figures requires some incredulity and care in the quoting thereof, due to the sheer scale. To then quote London Trader's figure of 500 tonnes as a further sale of physical was plain wrong; LT was talking about the equivalent value of paper trading on the comex if it were considered in physical terms, he did not say that this amount of physical was sold.
Edit: Sorry Turd, I just saw that you made the same point up-thread about the 500 tonnes being paper. But I still am left with the feeling that Jim is quoting stats without checking them out, so that whole 5000 tonnes thing is looking increasingly like an error.
I'd say this fits in here
@Murph
>Not sure I can trust a hat tip hater. Come on over to the dark side
When gold hits 2,000 and silver 50, I will come a hat tippin with you...
Until then, I wait.
Bam Bam
When it does I'll stop hat tipping, that's a deal I can't lose at.
IRB
I was responding to your post where you stated, "It was the Capitalist bankers that funded the Bolsheviks and kept the Soviets going for as long as they did. Patton wanted to easily finish off the Red Menace while it was battered, but he was not allowed to preclude a 50 year 'cold war'. It was the same Capitalists that have built up China."
I'm not informed to know who exactly financed the Bolsheviks. But those who believe the Capitalists did usually believe Henry Ford was involved as well. I assumed you were in that company. I'm sorry.
Forget Ford. My main point is that Capitalist Bankers want to do everything they can to control the money of a nation, but that Russia and China did not let them do it. That is why there is conflict between the capitalists and the communists in the struggle to win the geopolitical endgame at this time.
Thanks T!
Great chat T! You two should start a talk show! How can we get JW on CNBS? Sneak him in as a Keynsian blow hard or something. ( :
Get up stand up!
@ Watcher et al
All wars, purportedly political, religious, or otherwise, are about resources.
I am yet to find a war in history that was not.
We are a very simple species really.
Google "argumentation theory" for a way of cutting through the rhetoric of white noise to drill down to intent.
Don't listen to what people say. Watch what they do. That goes for countries as well.
Mark Twain once said "we are all three meals away from being savages".
Not much has changed since his time.
Looks like Ol' man Butler finally gets it
For years, TB refuses to believe it's US government behind the whole silver suppression. He always thinks it's just these banks are trading recklessly despite other people pointing the finger at the PPT.
Well, better late than never. When will Doug Casey see the light next?
Detroit versus Hong Kong
It's becoming apparent why Chinese have been 'stock piling' industrial metals . . . They collectively have bulit industrial metals clout larger than GS and JPM with even their vast Detroit based warehouses:
From today's LME buyout press . . .
"The deal would be Hong Kong Exchanges’ first overseas acquisition. The 135-year-old LME sets global benchmark prices for metals including copper, aluminum and nickel, of which China consumes more than any other nation. Its network of warehouses doesn’t currently extend into the country."
Well, they do not extend yet . . . But with the purchase those huge stored amounts both in warehouses as well as in open parking lots that have recently been pointed to as "proof" of too much inventory . . . The reality is that they need those levels of metals to have credibility. Well done. Well done.
@Watcher Wall Street financed the Bolsheviks
Anthony Sutton's well-footnoted works shed light on Wall Street support of the Bolsheviks, Hitler, and FDR (and these are available online)
WALL STREET AND THE BOLSHEVIK REVOLUTION
http://reformed-theology.org/html/books/bolshevik_revolution/index.html
also
WALL STREET AND HITLER
http://reformed-theology.org/html/books/wall_street/index.html
and
WALL STREET AND FDR http://www.reformation.org/wall-st-fdr.html
If you have a look at Sutton's writing then it may make sense to you why the "Naked Communist" author W. Cleon Skousen went on to write "The Naked Capitalist" after Bella Dodd (former member of the US Communist National Committee) told him that during World War II US Communists (in the absence of communication with Russia) could get instructions from one of three people at Waldorf Towers (all wealthy American capitalists), and that those instructions were always ratified by Moscow.
These materials indicate that Russia and the US(Both Republicans and Democrats) are likely controlled by the same people, and make me suspect that the "Fall of the Soviet Empire" was mostly theater.
Sutton and Skousen don't indicate who controls China or Korea, so there could be some hope that Jim Willie's "Eastern Interests" or Fulford's "White Dragon" could possibly be acting on their own instead of having the same controllers.
In summary, much of what you are sure of regarding Capitalists and Communists and Nazis (and what I am sure of as well) could be very wrong. DYODD
Uriah Heep - Stealin'
Re: "Staggering 515 Metric Tonnes"...
Turd, I am glad you corrected the physical reference. But, the initial claim by London Trader does not stand up to scrutiny.
515 metric tons would be 515,000 kilos which, (at 32.15 T oz/kg), is 16,557,250 oz traded in the 4 hours prior to and during Bernanke's testimony on June 7....so, if my math is correct we have the claim that approx 16.5m ounces of paper gold sold in London then.
Netdania is an interesting source for gold volume. They provide the number of ounces of gold traded by 5 of the 6 largest liquidity providers (Bullion Banks) in the London market. There are additional bullion banks so the figures are less than the total.
During those 4 hours on June 7 Netdania records 74.8 million ounces traded...the price fell from $1628 to $1577.
Almost as much as 4 hours on June 1st when 84.5 million ounces traded and the price rose from $ $1544 to $1617, (which was TF's long predicted short squeeze, ie manipulation).
I am trying not to be snarky, just accurate. This "staggering/shocking"* selling of 515 metric tons is now being breathlessly repeated as evidence of ... well I am not quite sure what it is really claimed to be evidence of because it is actually far less than was actually traded and all it does do, in my mind, is cast doubt on the reliability of the information provided by these experts.
So, while I might be persuaded to let JW's Kennedy eccentricity pass and I do accept your assurance of the credibility of JW's source, this inaccuracy in basic information is particularly unfortunate as it just gives ammunition to detractors, (eg Erik T on the Chris Martenson/Harvey Organ interview for one), who then go on to claim that there is no manipulation at all.
*KWN
515 Metric Tons of Au
515 metric tons of Gold is 16,557,634.19 troy oz
At the close today, that's $26,934,303,536.90
"just be patient"
The phrase " He who has the gold makes the rules" was "coined" by Romulus Augustus in AD 477 as he fled Rome, which was fallen to the heathen. Actually the quote was "he who has the silver makes the rules" . Rome had been debasing silver by adding dross to their coinage for many decades. JP Morgan 1580 years later perfected the art of "drossing" the silver, through fiat (naked notional nonsensical) short selling. This hastened the fall of the American empire. Nevertheless, the patient .999ers (those who held patiently) proved that patience was worth more than all the naked short selling combined as silver rose 100x between 2013-2020. Filling the paper market with the real thing. Thus ends my disconnected non- provable blathering.
Soc Gen Q1 2012 Hedge Analysis
http://www.gfms.co.uk/Market%20Commentary/SG%20GFMS%20Global%20Hedge%20Book%20Analysis%20Q1_12.pdf
1 word summary: underwater.
Soc Gen conclusion: moar hedging!
well...
It looks like the volume for last Thursday, the 7th, was 268,000 contracts.
During the four hour period and using your math, 16.5MM ounces of gold traded. 16.5MM is 165,000 contracts, is it not? If this is correct, the numbers are certainly feasible.
Regardless, I think I understand The Trader's larger point. He/she is seeing incredible tightness and volume in physical metal. However, paper (make-believe) metal can trade back-and-forth in incredible volume and nobody bats an eye. To me, it's a general comment about the overall disconnect between the paper and physical markets.
Re the deltabravo ErikT and his ilk...have him call up Ranting Andy. I'm sure Andy would obliterate him and then proceed to type up two new rants before Erik's mommy could put a steak on his eye.
No comment necessary
Well...
165,000 contracts (16.5m oz) on Comex plus 74.8m oz (minimum) in London...and the reference was London.
I had a go at Erik T and Jeff Christian on that thread for their reliance on dubious information. I think we (myself included) should all be as rigorous as possible in establishing facts.
Moving on, Comex (Futures) is estimated to be a fraction of London (where Spot is reportedly estimated at 90%, swaps and futures 5% ea). A few people have tried to estimate that fraction as well as the ratio of paper to physical and I am reviewing their work to try and make sense of it all. I really don't know if it is important or not, but it interests me. I'll report back.
No, it's not London
The Trader was not referencing London. Below is the actual quote from KWN. Note he/she says "the equivalent of 515 metric tonnes of paper gold".
He/she is clearly talking about Comex trading, which was the active market between 9am and 1pm NY time, during and after the time Bernanke spoke.
Again, what this person is implying is that while 515 tonnes of paper equivalent traded hands in New York, there was "zero physical gold for sale" in London.
“What happened yesterday in the gold market was very interesting. One full hour before Bernanke's testimony, the bullion banks started selling. Over the next 4 hours, the bullion banks sold the equivalent of 515 metric tons of paper gold. This was in just 4 hours, and again, the selling started one hour before Bernanke’s testimony.
The selling went on for another 3 hours after the Fed Chairman began to speak, and as I said, over 515 metric tons of paper gold was sold. During this entire takedown, there was zero physical gold available for sale in the market.
Another great Willie
Another great Willie interview, he is the best in my opinion, and so is his track record. I guess we should be looking for the 10 year bond to approach the 1.00% yield, will this tell us we are near the end of the road?
don't worry about all the noise
There is a lot going on that could impact the metal prices in the short term, from the Greek elections, Iran, Syria, G20 summit, and Fed meeting on the 20th....A lot of events culminating within the next weeks. I prefer to not focus too much on the short term, and stick with my long term plan.
The plan that I follow is to buy whatever physical PMs, tools, ammunition, food preparation and procurement items that we can afford on a monthly basis regardless of price, geopolitics, fed speak, mope, etc. etc. Lately we have been able to buy a little more with the prices being lower recently. It is part of our savings plan and a rebellion against the banking system and mainstream culture consumerism. It is what we do, and plan to do for the next 10-15 years, God willing, regardless of all the variables we don't control.
We have a few family members on board with this type of thinking. Most of my friends, all of my colleagues and most family do not have a clue as to what is going on, or what a community like this is doing. I used to think we would be able to stay under the radar for at least the next 2-5 years, but it seems lately that things are moving toward acute events more quickly than at any time I can remember. I see that Forbes had a piece out recently, maybe today, encouraging the accumulation of physical metal.
Things have changed a lot since I was a child, from .37 cent gallon of gas, 90% silver coins still in circulation, a collective sense of culture, kids spending all their free time outdoors, my ability to keep hunting long guns in my private college dorm room closet, no 24/7 media and limited news information available. These are still good days, especially to those of us that take time to teach our children, and still value things that are sustainable and immutable, unlike the current state of fiat monetary systems, post modern culture, and governments. Most days, unless I watched the news, I wouldn't perceive too much of a change, which is a good thing and means we are still in a time period where we can stick to a long term plan.
Well...I read it as London
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/8_London_Trader_-_Staggering_515_Tons_of_Gold_Sold_in_4_Hours.html
my bad!
Losing My Religion
http://neer-do-well-hall-of-infamey.blogspot.ca/
Losing ...
"Losing my Religion" is a southern US term for getting angry.
The turds at Curis Resources are making me both ashamed to be a Canadian and seriously losing my religion. Check it out folks.
http://neer-do-well-hall-of-infamey.blogspot.ca/
@Wizard
"Muslims are the ones blowing up countries" - Dr Common Sense.
Say whaaaat? You've got to be kidding me! If anyone still believes that debunked propaganda, I've got a bridge to sell you. Try listening to Webster Tarpley, Max Keiser, oh just about any decent commentator, and you'll see that falling for the divide-and-rule line is going out of fashion.
Un-Hat-Tip.
Everybody wants to rule the world
I don't buy the Skousen conspiracy theory that the bankers are running the communists in Russia and China. I tend to agree with J.R. Nyquist's viewpoint. Golitsyn revealed the Russian master plan in his book, "New Lies for Old" written in 1984. He defected from Russia. Everything he wrote would happen has happened so far. http://www.jrnyquist.com/
See also the Final Phase Forum where those who see the Russian Geopolitical gameplan share their thinking. http://thefinalphaseforum.invisionzone.com/index.php?s=9bce6f8223edcb6e93fbf9e88910aac9&showforum=3
wizard
common sense dead and buried along with journalism.
humans very flawed creatures.......and we think we are sooo smart.
Byzantium and disappointment that some don't get it - i.e. Xty
That these minds here are not a little more open as to some of the possible undercurrents, is to me, a shame. I mean, how can just the Fed for example, have had such enduring power for a century, within the group understanding that cock-up and randomness (rather than conspiracy) determines events and the unfolding of history.
A hidden power structure is one explanation why voting changes nothing, why American presidents have been shot (don't forget, Reagan was shot early in his first term), why certain wars happen, why bodies such as Fed can exist (not accountable to, voted in by, or removable by, the public, or any other process known to man).
From the pattern of votes over the topic as raised, it is clear that the topic is not for this blog.
Byzantium - this is rather clearly directed at me, so let me respond. I have not claimed that the Fed is simply cock-up and randomness. It was clearly set up with mal-intent, but it is run by humans who are not robots, or all in on 'the' conspiracy, and who do 'cock-up' (if they get lucky) all the time. What I will absolutely argue against is one master plan, slowly working over the ages, unchanged in intent and membership, and only seen from this North American/European centric lens.
Do you really believe that all the presidential assassinations were ordered by the 'same people'? And that these same people have controlled the outcomes of ALL elections? or just in the States? Why 'certain' wars happen? What about the other wars? Why can the Fed continue to exist? It has become indispensable to the working of the US government, as intended. And I know the quotes about controlling the money - but do they actually control the money anymore? Or the country? Or was the plan to destroy the very currency that was making them rich? Do you really think Bernanke has only one boss?
I have given quite a long list of competing players previously, but you can just claim they are all actually run by the same shadowy gang. Do you think the Japanese invading China in WWWII was also directed by the Rothschilds (let's make the hundred pound gorilla visible)? That they first wanted Obama and now want Romney? Or what just happened in Wisconsin, were they there too? Are they directing the Justice Department on preventing voter rolls from being checked or are they getting the rolls checked in the first place? Did they elect Bush or Gore?
But most of all, do you think they had a crystal ball and could see 300 years, or however many you want, into the future and could envision the Euro, Mount St Helen's, the internet, digital anything? Airplanes? Television? And what about all the Eastern players, Mao Tse Tung, Pol Pot? Or Gorbachev and then Putin? Drones? Did they invent Al Qaeda and the CIA, the Muslim Brotherhood and the Mormons? The Mafia and the Vatican?
I am more disappointed when intelligent minds posit a simplistic solution to what is an incredibly complex probem. Yes, the rich and powerful try to stay rich and powerful and they are good at it. But there are a lot of them and they all have to watch their backs all the time - being a monarch was not a very secure job in the past, and most modern monarchies have been dismantled. Surely that was not in 'their' interests. Believing that everything is controlled and you have no power is, frankly, the best evidence I have for there being a conspiracy. But assigning one cause to multiple outcomes strikes me as more closed-minded (as you suggest of me above) than thinking there might be more than one 'hidden power structure' amongst 7 billion people spread out on 6 continents. (Sorry Antarctica - if you are calling the shots, or are actually head-quarters, please forgive me.)
i'm with XTY........conspiracies
human nature demands the immediate end of any conspiracy that does not reward each participant on a 'net' basis on a minute by minute tally.
i can just hear putin saying 'i guess i'll support ______ because i told him i would....' .......or obozo......or anyone else.
the current manipulation of paper PMs is rewarded.