By All Means, Sell Your PMs!

228
154
Thu, Jul 21, 2011 - 3:04pm

Word of a pending "deal" between The Regime and The House sent the metals reeling this morning. This once again proves that WOPR does not have actual, human intelligence...at least, not yet.

Of course the debt ceiling is going to be raised in a package with some phased-in spending cuts and tax increases. That was never in question. The only question has been whether there would be a "plan" such as this or whether O'bottom would simply raise the ceiling by executive order. It's quite clear now what will happen. As partially discussed back on Monday, here's how this will play out:

1) The House cast a vote last night on a "Tea Party" package. It passes overwhelmingly but has zero chance of passing the Senate or receiving O'bottom's signature. No matter. It's all about "political cover". More on that later in point #4.

2) A "plan" emerges, brokered by The Regime and the Republican "leadership". 50 or so "safe seat" Repubs will vote for the plan in the House. Those 40-50 votes plus all of the Dem votes will be enough to pass the plan. All of the Senate Dems plus one or two Repubs will approve the plan in the Senate and O'bottom will sign it.

3) Problem solved.

4) "Tea Party" Repubs are able to claim that they did their best. They'll be "on the record" as having voted against O'bottom but voting for their own plan. This is known as "having your cake and eating it, too". On balance, they will be safely re-elected next year and Boehner will keep his job as SOTH.

5) Every politician wins! You lose. Again.

So with that behind us, let's cut to the chase. The debt ceiling is going to be raised again by another $2T or so... (Don't forget about this chart!)

...And it will only take about a year and a half to hit the ceiling again. With the passage of this "deal", all that will have happened is a kicking of the can down the road until early 2013. Hmmm. Early 2013. Why would that be significant?? Let's see, what happens in late 2012? I know it's something but I can't put my finger on it. Let me get back to you on that.

At any rate, the question you need to ask yourself right now is: "From where will this $2T be coming?".

I know! China! (Nope.)

Russia? (Nope.)

Japan? (Sorry.)

The EU and ECB! That's it! The owe us a few favors! (Negative.)

We'll raid pension plans and IRAs! (Someday soon but not yet.)

QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3!!!!!!!

So, by all means, today's news means you should sell your gold and sell your silver. NOT! I sincerely hope all of you are wise enough now to not continue falling for the manufactured SPIN and MOPE of Washington politics.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  228 Comments

  Refresh
robreke
Jul 22, 2011 - 12:53pm

Gold Drop after Each Ceiling Raise ?

Turd,

Looking at your chart....it seems gold "corrected" down after each step up in the debt ceiling before. Do you think that will happen again? Gold correct for a few months....forming another base and buying opportunity before it rises to new highs?

Tks - Rob

Vypuero
Jul 22, 2011 - 11:00am

It is the Islams

Just because the EE exists doesn't mean there are not other evils out there. Asymmetric warfare does work. They use these things as an excuse to expand their power, but that doesn't mean they arranged it to happen - that happens easily enough on its own.

Tesla
Jul 22, 2011 - 10:59am

UPDATE -

Turd has posted a new thread

ewc58
Jul 22, 2011 - 10:41am

Oh, right

like Oslo isn't the work of CIA/Mossad. I guess the Norwegians weren't supplicating themselves sufficiently in the "plan" for the Northern Euro. Or some such. You no go along, sumthin' goes boom. The shit happens all the time. Woulda happened yesterday but the bomber boyz were late getting back from their recent stay in Mumbai.

And yet, here's what the controlled media is already putting out there to throw the dogs (and moe-rons) off the scent. Yes folks, it's those bad Aayrabs, the same ones who triple insured the World Trade Center and placed all those airline puts in advance of 9/11. The same ones who stood NORAD down. Ahhhh, yah. Next we'll be hearing about the numerous threats to US security posed by Al-Queda in Scandinavia. I mean geez, them Al Kaidee boys are opening up franchises faster than Starschmucks.

Man is this getting old. They're like a broken record. Oh boy I just dated myself.

https://content.usatoday.com/communities/ondeadline/post/2011/07/blast-in-oslo-blows-out-government-office-building-windows/1

SilverWealth
Jul 22, 2011 - 10:40am

bullishness

On a Friday before an impending OE the gold and silver market is definitely exhibiting contrary behavior. This is bullish. Who knows what is pulled over the weekend but just possibly Chinese buyers will check any blow.

"When all else fails, They take you to War" Gerald Celente

This guy is so spot on its almost a joke. I think this is next because literally all else is failing and Obottom will be dragged into a War quite possibly with Iran by NattyYahoo the crazed fatman from the peace-loving land of milk and honey.

Metal MonkeySilverWealth
Jul 22, 2011 - 10:31am

CITI TURD

Although I agree with your comments, PLEASE, PLEASE, DO NOT ASSOCIATE "THE TURD" WITH

CITI OR ANY TBTF ZOMBIE BANKS PLEASE...

ewc58
Jul 22, 2011 - 10:13am

sorry for the double post

still not sure how no.1 even got out

But hey, at least the piece is doubleplus good

ewc58
Jul 22, 2011 - 10:11am

New piece from JS Kim

The Global Physical Gold & Silver Reserves Race is the New Nuclear Arms Race

"The current talk in the mainstream financial media about gold being a bubble at $1,600 an ounce and of silver having already reached its top of its long-term peak at $50 an ounce is simply rubbish. A bubble is never defined by high prices, the perception of high prices or even a decade long rise in prices. What defines a bubble is a meteoric rise in price that is not supported by fundamental reasons. For example, the US NASDAQ dot.com stock market was a bubble because dot.com stocks that had zero earnings were trading at impossible valuations and sometimes double and triple digit dollar values per share. However, the fundamental reasons that have driven gold from $250 to $1,600 and silver from $4 to its current $39 – $40 range are even stronger today than they were at the beginning of this precious metals bull. Therefore, it is impossible for a bubble in gold and silver to exist at their current prices and at this current time."

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

ewc58
Jul 22, 2011 - 10:08am

HOT new piece from

"The current talk in the mainstream financial media about gold being a bubble at $1,600 an ounce and of silver having already reached its top of its long-term peak at $50 an ounce is simply rubbish. A bubble is never defined by high prices, the perception of high prices or even a decade long rise in prices. What defines a bubble is a meteoric rise in price that is not supported by fundamental reasons. For example, the US NASDAQ dot.com stock market was a bubble because dot.com stocks that had zero earnings were trading at impossible valuations and sometimes double and triple digit dollar values per share. However, the fundamental reasons that have driven gold from $250 to $1,600 and silver from $4 to its current $39 – $40 range are even stronger today than they were at the beginning of this precious metals bull. Therefore, it is impossible for a bubble in gold and silver to exist at their current prices and at this current time.

https://www.theundergroundinvestor.com/2011/07/the-global-physical-gold-silver-reserves-race-is-the-new-nuclear-arms-race/

Vypuero
Jul 22, 2011 - 10:06am

I endorse FERFAL

Have been reading his blog for some time and I also got his book - much more realistic view vs. the Mad Max scenarios people in the states seem to love.

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