By All Means, Sell Your PMs!

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 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.)


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.


About the Author

turd [at] tfmetalsreport [dot] com ()


Jul 22, 2011 - 8:25am

A daytrade idea

If and when ZSL (the leveraged etf) falls through 13.50 this morning - silver will have risen to about $40. Buy ZSL through next Tues and trailing-stop your gains when the EE pushes the price back down under $40. After expirations next week, be sure to be out of ZSL as the price may go north. Good luck.

Jul 22, 2011 - 8:15am

Keep expecting a raid of some sort

The Ag chart is slowly rising up with no evidence, so far, of the flying monkeys!! Keep expecting to see it BUT hoping that we may be spared their antics. Will this be a day without an attack??? Maybe BUT I doubt it. 8:30 AM EST has been a opular time ofr the EE to unleash their nenom. Waiting BUT hoping.

Jul 22, 2011 - 8:14am
Vypueroboob it
Jul 22, 2011 - 8:03am
Jul 22, 2011 - 7:59am


Your already doing the right thing, by taking care of your own. I have been following this racket since late 03, and have screamed from the top of the highest mountain " WAKE UP PEOPLE " and no one listens. Personally I have managed to save 2 people during my quest to give people a little vision ( 2 ) the rest, even my family members do not get it.

So I have given up on trying to save the world, and concentrate 100% on saving my family of 4, that is my main objective, my wife, my 2 daughters and my soon to be born grand son, other than that Lou I have given up on my fellow man to do the right thing, they unlike you and I just don't care. So again save yourself first and let the others fall where they lay.

Besides it may come a time where you may be defending what is yours against those who you had hoped to give eyes too. Keep your circle tight and small and again let the others fall where they lay, and leave them there, as desperate people will do desperate things to take what is yours and harm your loved ones in the process.

Be well


(PS ) For the record I do not believe in the Mad Max theory, yes times will get tough no doubt, but the mad max and gun blazing in the streets is not something I see happening.

But then again anything is possible these days so who knows.

Jul 22, 2011 - 7:46am

"Everyone keeps saying there

"Everyone keeps saying there is a raid, but doesn't anyone find it wierd that they always rise and recover at the exact same time aswell? And by equal amounts too. They move pretty much equally tick by tick."

I belive that's the first time I've read about this here. But it's a vital issue. Everyone should be able to see that these markets are nearly 100% controlled when gold and silver most of the time move perfectly in tandem.

Adrian Douglas (one of the best out there) even found out that from most of the time during the last 10 years you were able to calculate the price of silver from the price of gold via a simple mathematical formula. The manipulation is so obvious, it boggles the mind that noone is able to do anything about it, let alone address the issue in public.

Here's Adrian's article:

- Markus

Jul 22, 2011 - 7:36am

Thanks Shill

It just makes me so f**king angry. This is financial terrorism on a global scale and yet most people seem to be sleepwalking into this. I don't like the term 'sheeple' as it seems so derogatory, but in this instance I despair at the majority of the human race that don't seem to be able to see what is plainly unfolding in front of them. It makes me feel so powerless and I wish there was something that I/we could do to shake people awake. OK I have protected my family as best I can & that is all I can do for us, but I want to protect the human race from it's own failings & bring about change in a profoundly positive way. A big ask I know and not on my own but if a like-minded group could start to light the touch paper of change I would feel less redundant. A philosophical question I guess but I do wonder sometimes if I could be doing more, as I feel like I am shouting into a cave.


Jul 22, 2011 - 7:15am

7:05amGreek debt plan would

  1. 7:05am

    Greek debt plan would be restricted default: Fitch

Yup the world has gone full retard.


PS. I got your back there Lou, not on my watch buddy.

Jul 22, 2011 - 7:11am

It's a Fitch...

Looks like something is beginning to hit the fan, and it is not hot air...Fitch rating agency is calling a spade a spade and the Euro deal 2 on Greece a "restricted default"...I know I'd be really pissed if I owned CDS on Greece and my "insurer" was saying, "sorry, no default, no claim" and silver coming alive

Greece Faces ‘Restricted Default’ After Debt Accord, Fitch Says
2011-07-22 10:53:10.280 GMT

By Anchalee Worrachate
July 22 (Bloomberg) -- Greece faces a “restricted
default” after the European Union crafted a 159 billion-euro
($229 billion) bailout for the nation, which includes getting
bondholders to assume part of the cost, Fitch Ratings said.
Greece would be cut to “RD” should the plan be
implemented, Fitch said today in an e-mailed statement. The
ratings company cut Greece by three levels to CCC on July 13.
The program “of financial support for Greece, as described
in the Institute for International Finance proposal issued at
the summit will, in Fitch’s opinion, constitute an event of
“restricted default,” the statement said. “According to the
IIF, the proposed debt exchange implies a 20 percent net present
value loss for banks and other holders of Greek government
Greek two-year yields tumbled 768 basis points to 26.13
percent as of 11:42 a.m. in London. That’s the biggest decline
since the EU and the International Monetary Fund created a 750
billion-euro fund to backstop the region in May 2010.
The Greek financing package will consist of 109 billion
euros from the euro region and the IMF, while financial
institutions will contribute 50 billion euros after agreeing to
a series of bond exchanges and buybacks that will also cut
Greece’s debt load.

‘Life After Default’

Banks will reduce Greece’s debt by 13.5 billion euros by
exchanging bonds and “potentially much more” through a buyback
program still to be outlined by governments, said the Institute
of International Finance, a Washington-based group representing
“There is life after default,” said Aninda Mitra, head of
Southeast Asian economics at Australia & New Zealand Banking
Group Ltd. in Singapore and a former sovereign analyst at
Moody’s Investors Service. “It certainly helps to have a more
equitable burden-sharing agreement which will ease the
insolvency burden that Greece was carrying upon itself, which
politically would have been unsustainable.”
Russia, which defaulted on $40 billion of debt in August
1998 and devalued the ruble, now has an investment-grade rating
three levels above junk from Moody’s, while Standard & Poor’s
and Fitch grade the nation one step lower.
Argentina defaulted on a record $95 billion worth of debt
in 2001. After $62.3 billion was restructured in 2005, President
Cristina Fernandez de Kirchner last year swapped a further $12.9
billion of securities.

Argentina Default

Argentina’s debt-to-gross domestic product ratio fell to 48
percent as of June 2010 from as high as 166 percent in 2002,
Finance Secretary Hernan Lorenzino said in September. The South
American nation is still ranked non-investment grade by the
three ratings companies.
Before yesterday’s accord, the EU forecast Greece’s debt
burden will rise to 158 percent of GDP this year from 143
percent in 2010. Greece was cut to Caa1 by Moody’s on June 1 and
CCC by S&P on June 13.
Euro-area leaders also empowered their 440-billion euro
fund, the European Financial Stability Facility, to buy debt
across stressed euro nations after a market rout last week
sparked concern the crisis was spreading. The fund can also aid
troubled banks and offer credit-lines to repel speculators.
“For now, the imminent risk to the monetary union itself
has significantly reduced,” Mitra said. Next is “the
implementation and the coordination between the EFSF, the
national governments within the monetary union and the reforms
that Greece has to implement,” he said.

Jul 22, 2011 - 6:37am

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 8/10

8/10 10:00 ET Job openings
8/11 8:30 ET Producer Price Idx
8/12 8:30 ET Consumer Price Idx
8/13 8:30 ET Initial jobless claims
8/13 8:30 ET Import Price Idx
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Unit Labor Costs
8/14 8:30 ET Cap Ute and Ind Prod
8/14 10:00 ET Business Inventories

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
7/28 9:00 ET Case-Shiller home prices
7/29 8:30 ET Advance trade in goods
7/29 2:00 ET FOMC Fedlines
7/29 2:30 ET CGP presser
7/30 8:30 ET Q2 GDP first guess
7/31 8:30 ET Personal Income and Spending
7/31 8:30 ET Core inflation
7/31 9:45 ET Chicago PMI

Key Economic Events Week of 7/20

7/21 8:30 ET Chicago Fed
7/21 2:00 ET Senate vote on Judy Shelton
7/22 10:00 ET Existing home sales
7/23 8:30 ET Jobless claims
7/23 10:00 ET Leading Economic Indicators
7/24 9:45 ET Markit flash PMIs for July

Key Economic Events Week of 7/13

7/13 11:30 ET Goon Williams speech
7/13 1:00 ET Goon Kaplan speech
7/14 8:30 ET CPI for June
7/14 2:30 ET Goon Bullard speech
7/15 8:30 ET Empire State and Import Price Idx
7/15 9:15 ET Cap Ute and Ind Prod
7/16 8:30 ET Retail Sales and Philly Fed
7/16 11:00 ET Goon Williams again
7/17 8:30 ET Housing Starts and Permits

Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

Key Economic Events Week of 6/29

6/30 9:00 ET Case-Shiller home prices
6/30 9:45 ET Chicago PMI
6/30 10:00 ET Consumer Confidence
6/30 12:30 ET CGP and SSHW to Capitol Hill
7/1 8:15 ET ADP Employment
7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 2:00 ET June FOMC minutes
7/2 8:30 ET BLSBS
7/2 10:00 ET Factory Orders

Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment

Forum Discussion

by argentus maximus, 6 hours 30 min ago
by argentus maximus, 9 hours 47 min ago
by jack3617, Aug 7, 2020 - 5:51pm
by Titus Andronicus, Aug 7, 2020 - 5:13pm
by jack3617, Aug 7, 2020 - 5:06pm
by Steve S, Aug 7, 2020 - 1:59pm