Happy Anniversary

263
Mon, Aug 15, 2011 - 10:31am

In case you missed it, today is the 40th anniversary of the decision by the great republocrat criminal, R. Milhous Nixon, to remove the U.S. from the "gold standard". The Turd was only five when it happened so I cannot be held responsible for my inaction.

Nixon Ends Bretton Woods International Monetary System

I wrote about this some time ago. For your enjoyment, here's a link:

https://tfmetalsreport.blogspot.com/2010/12/preparing-accordingly.html

OK, enough of that. All of the commodities are up this morning but gold is down. That is about to change so let's get started. We have a few things to cover.

First up, gold. In January, near the bottom of a nasty correction and with gold near 1340, I gave you "1600 by 6/10/10". When the call came up either $22 short or six weeks early, depending on how you look at it, I took a rash of sh*t from people who, apparently, expect perfection. Several weeks ago, when gold broke through 1600, I gave you "1800 by Halloween". That seemed to work out pretty well. Hmmmm. Lots of crickets out there. Now, I'm on the line with "$44 silver by Labor Day". Lord help me if silver only makes it to 43.92. Anyway, back to gold. As you can see on the chart below, it is clearly forming a short-term bottom. It has twice tested and held key support between 1725 and 1730 and has since gone flat. This won't last long. Your first clue that gold is heading back to 1800 will be a breach of 1750. Watch that level closely.

Silver faces a moment of truth later today. It is getting ever-so-tightly wedged into a pennant. All signs point to silver breaking UP and out of the pennant. The fundos are extraordinarily strong and on a short-term basis, all of the other "commodities" are up today. Watch the 39.50 level for clues.

Lastly, I found this earlier today on ZeroHedge. As you know, I have a penchant for historical trends and patterns. As Shakespeare said, "what is past is prologue". In the case, the author has found some startling similarities between the current day U.S. and the late stages of the French monarchy. Before getting started, I suggest a stout cup of coffee or some other mental stimulant. Though the information is well-researched, I found the manner in which it is presented to be somewhat challenging. But, what do I know? I'm just a turd.

https://www.zerohedge.com/news/sun-chairman-whats-future-prologue-and-why-second-french-revolution-coming-america

At any rate, here's the paragraph the bast relates to what we do here. If you're still living in some dream world where you follow the "stock market" in the hopes of growing your "retirement account", the passage below should help raise you from your slumber:

"Painted in oscillating shades of red and green on our dealing screens, we can also see the full, epileptic frenzy of our broken financial markets, no longer evidence of the rational allocation of hard-spared capital to the enriching process of patient and diligent entrepreneurship, but a wild, computer-driven video arena where countless billions swarm into and out of the sea of tickers from one micro-second to the next, with each successive ebb and flow of this leveraged flood further reducing the informational content of the associated prices and so defeating the very purpose of the capital market itself."

I have lasts of 1745 and 39.51. It's going to be a very interesting day. More later. TF

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rjsandewc58
Aug 16, 2011 - 12:27am

Ready to Cut You Down...

Big Tree = Large Banks (manipulating silver market)

Small Axe = Stackers of the Phyzz (us)

Bob Marley and The Wailers - Small Axe
Rui
Aug 16, 2011 - 12:12am

@Cali definitely gonna take a long while

I remember hearing Haynes on KWN weekly interview where he said we need generational solutions to fix this mess, and I agree. Oftentimes people choose to to exhaust all wrongs first before they finally start to do the right thing. Giving the problem is so big, so widely spread across the West it's not gonna be an easy and fast fix. Yikes!!!

Rui
Aug 16, 2011 - 12:08am

Be careful of keeping your gold in Switzerland

A few weeks ago Jim Willie mentioned that he heard about stories that some Switzerland bank was actually unable to deliver phyzz gold to ALLOCATED accounts. He talked about it in the past and received death threats b/c of it. That mess was still not sorted out the last time he talked about it. I think there's a public audio interview on Black Swam that he talked about it. Check it out, folks.

Don't trust these bankers easily, be it US banks or foreign ones.

FogHorn LegHorn
Aug 15, 2011 - 11:26pm

Rickards on cnbc @R man J

Rickards talks on cnbc, answers questions and I understand everthing He says. In several minutes, he describes the solution to the current financial crises. Why don' t politicians just listen, suck it up and do the right thing. Banks screwed it up, haircuts for bond holders, nationalize the banks, strip out toxic assets, ipo them six months later ala GM, hard money currency, fresh start with no debt. The bankers folly should not fall onto taxpayers backs. Imho. Ta

Irene
Aug 15, 2011 - 11:10pm

Rui

Rui,

I hear where you're coming from, but look at a country like Switzerland. They've kept their fiat (previously backed by gold) going strong. (And now they have a problem because it's too strong. *sigh*) Germany also, after WWII, made sure that the DMark was not ruined. (Okay, okay the Euro is another story). My point is, both of these countries have populations where it is important to them to keep sound money - fiat or not.

Like I said earlier, fiat is a function of the society. We have no one in the US to blame but ourselves. Did people really believe that the piper would go unpaid? Shame on anyone who believed that. They're not adults. They're just children in adult clothing. And obnoxious spoiled ones at that. Anyone - and I mean anyone - should have seen that we could not go on borrowing and borrowing and borrowing without putting our way of life in peril.

Vypuero
Aug 15, 2011 - 11:08pm

Gold and Tax

I always report anything I sell for cash, of course. There should not be any tax on exchanging money, however, so I believe a tax on gold is absurd - they are taxing you on the money they squandered through bad monetary policy.

Tesla
Aug 15, 2011 - 11:03pm

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Aug 15, 2011 - 11:01pm

@Rui- Absolutely Brilliant, Correct Analysis

Exactly!!! The only problem with your analysis, is that it so obviously exposes TPTB as the scum they are relative to every one else who actually produce things. So, unless there is a ground swell of popular sentiment, no such simple solution will likely ever occur.

Irene
Aug 15, 2011 - 10:48pm

Switzerland, cockroaches and gold

Switzerland has no VAT on gold. None. Guess where most of my gold is.

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