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

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  228 Comments

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duckwomanloulouthegoldenchild
Jul 22, 2011 - 6:30am

Oasis of sanity

I wake up and read all the news & think WTF!! But then I log in to my, not so little, online community of like minded souls and think to myself Phew it's not just me who thinks they're going mad - so do all these people too :) An oasis of sanity in an increasingly insane world. Thanks again Turd and all my fellow Turdites for ensuring that I am not carted off to the funny farm in a padded jacket!!

Lou

illyasviel
Jul 22, 2011 - 6:17am

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'd say with the low trading volume we're in; we're at the mercy of HFT computers and the banks running them. Seems like it to me...

Throwing Sliver Hammers
Jul 22, 2011 - 6:10am

launch silver futures on July 22

https://af.reuters.com/article/metalsNews/idAFL3E7II0W920110718

SINGAPORE, July 18 (Reuters) - The Hong Kong Mercantile Exchange (HKMEx) said on Monday it will start trading a dollar-denominated silver futures contract on July 22, hoping to tap into the growing demand for the metal in China.

The silver contract will trade in lots of 1,000 troy ounces and be delivered in Hong Kong, the exchange said in a statement.

thegoldenchildbrokeboater
Jul 22, 2011 - 5:36am

@brokeboater

PM's have been taken to the wood shed twice now just on the rumor that a deal was in the works. What kind of ass reaming do you folks think the metals are going to get when here is a deal announced? I'm expecting a major take-down, and I'll load the boat at that time.

I would agree.

But this just doesn't make sense does it? Debt ceiling goes up = PMs go up!

thegoldenchildTheGoodDoctor
Jul 22, 2011 - 5:33am

Thanks for the info.

Thanks for the info. Imho economy is not getting better...bernank & co will need to do something in H2...

illyasviel
Jul 22, 2011 - 4:57am

They raid it for 20 minutes,

They raid it for 20 minutes, bringing it down -$0.3, but then they let it go and an hour later we're back up $0.2

I dont get it, what was the point? Trying to make people loose interest?

Rui
Jul 22, 2011 - 3:36am

The taking down so far fails to impress

I was thinking at least a trip to 20-DMA, and it's not happening. I guess we'd have to wait till next week CRIMEX option expiry.

brokeboater
Jul 22, 2011 - 3:28am

whoop ass

PM's have been taken to the wood shed twice now just on the rumor that a deal was in the works. What kind of ass reaming do you folks think the metals are going to get when here is a deal announced? I'm expecting a major take-down, and I'll load the boat at that time.

Biochar
Jul 22, 2011 - 2:30am

re: HK metals exchange

Don't expect much right away. The Chinese who have a clue as to the reasons for owning PMs have already bought. I have many friends there, small investors, and they will be adding to their physical stash. The bigger players will be adding too of course, so things will pick up. If you've never been to China, I suggest Shanghai for a first visit, there's so much to see and do in and around the city. April and September are the best months to go, warm, but not too hot or humid. Check out my blog posts here...

https://chinapositive.blogspot.com/2011/01/shanghai-to-zhouzhuang.html

https://chinapositive.blogspot.com/2011/01/shanghai-night-out.html

etc.

I Am The Unknown Comicsilvermedusa
Jul 22, 2011 - 2:26am

Sleep, Perchance To Dream

Silvermedusa, if you haven't already been to bed yet, and then gotten up in the middle of the night to check PM prices, then for goodness sakes get your butt in bed because Friday trading is going to be one wild ride and you're going to need your wits about you.

Goodnight, sleep tight, and don't let the bedbugs bite (Blythe has that taken care of already, and there's only so much blood one can lose in one day).

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