For Your Consideration

348
Sun, Aug 21, 2011 - 12:51pm

I felt I must add these four items to the site today and the only efficient way to do it is to start a new thread. My risk in doing so is that everyone will move onto this thread and ignore the two from yesterday. Please don't. The two from yesterday are very important and require your attention.

First of all, please go back and re-read this post from last weekend:

https://www.tfmetalsreport.com/blog/2048/look-latest-cot

The latest CoT has moderated some in its bullishness, particularly in gold. It doesn't signal the end of this historic rise in the price of gold but, maybe, you can begin to see it coming over the horizon. The silver CoT is still very strong. This is part of the reason silver rose about 50c on the Friday afternoon Globex. The Globex rise was equal parts CoT reaction and buyers front-running W.O.P.R. for Monday.

Next, ZH posted this yesterday and you should be sure to read it. This guy, Kastring, clearly "gets it" and he writes in a way that we all can understand.

https://www.zerohedge.com/contributed/eu-banks-solvency-or-liquidity-or-both

Having read that, I need you to read this:

https://www.financeandeconomics.org/Articles%20archive/2011.08.17%20Bank%20Credit%20Repo.htm

The general thesis makes a lot of sense and I can certainly see the central planning keynesians adopting this strategy as another way to perpetuate The Great Ponzi and buy additional time. Note that in comment #1 below, reader "The Hat Tip" provided us with a link to the GATA presentation made by this same author. If you've ever wondered what the heck "the end of the great keynesian experiment" means, click this link and take 10 minutes to read. Very well done.

https://financeandeconomics.org/Articles%20archive/2011.08.06%20GATA%20Speech.pdf

That's all for now. I'm off to watch LT#2 play some soccer. Tonight, the nice folks at webbotforum have asked me to participate in an interview of the great Jim Rogers. Needless to say, The Turd is very excited. If I have any earth-shattering nuggets to pass along, I will post them later. The full interview will likely be available on their site by mid-week.

Just five hours and 10 minutes till the Globex open! TF

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  348 Comments

SilverTree
Aug 21, 2011 - 12:58pm

Anticipating the open today.

Anticipating the open today.

Eric Original
Aug 21, 2011 - 12:58pm

Shooting report

I don't usually chime in on the guns and ammo posts, but did want to report that Son Original and I went trap shooting this morning. Don't want to tell our scores though. It was windy out there!

ScottJ
Aug 21, 2011 - 1:00pm

Thanks for the Update

Hey Turd, glad to see you linked the article about US Bank Expansion, it does seem to fit in nicely, especially considering Tyler Durden's phrase of...

"Central bank policy only works when it is a surprise." --

I wrote an article yesterday on Gold being a safe-haven and bondholders being the bagholders.

https://thehardrightedge.com/goldsafehaven/

With the recent price explosion in gold, it is becoming evident to many that precious metals (physical gold & physical silver) are a safe-haven against the cancerous monetary system that plagues the world. As the world stock markets have plummeted in early August on systemic risk, the market has chosen to flee for safety once again. While many financial analysts, including the Ben Bernanke himself, argue that gold is merely tradition instead of a monetary metal, the market is signaling a very definitive answer to critics.

Gold is Money, has been money, and will be used as money as long as we do not live in a harmonious universe where money is not needed. Ben Bernanke is either lying or severely incompetent, as Gold has been linked to the dollar from 1913-1971 under the Federal Reserve, as only recently between 1971-2011 has the US Dollar been “off” the gold standard, dangerously entrusted among the hands of a few private bankers, with no representation from the Public.

Most are wondering how high can gold reach, and how fast? $2000? $2500 (By the end of 2011 as JP Morgan suggests)? $5000? $10,000? $20,000? Who knows, and to be honest, the number itself is of little importance, gold is going up for the foreseeable future until we have a new monetary system. The trending markets are showing that gold (the physical asset) is one of the only safe-havens to the western world fiat currencies and economies, as the major central banks are now “printing money” at an alarming rate to cover the unfunded obligations accrued.

Countries such as South Korea, Mexico, Russia, China, India, and many others have all been major buyers of physical gold in 2011. As if these headlines were not enough, it has been capped off the recent news that Venezuela is nationalizing their gold industry, and demanding the physical delivery of nearly 90 tonnes of physical gold from the Bank of England and JP Morgan vaults. This will undoubtedly prove to be a catalyst in a coming major event, in which in short time we may know. This is the quote from the Veneuzuelan Foreign Minster in response to their action.

Foreign Minister Nicolas Maduro said the world’s financial system, based on the dollar, had entered into a crisis of uncertainty and we are planning to construct a new international monetary system, and especially in South America, protect ourselves from this situation. (Source Here)

In just the last 6 months, Gold has made new all time highs against the US Dollar (USD), The Euro (EUR), The Canadian Dollar (CAD), The Australian Dollar (AUD), The Great Britain Pound (GBP), and now even the safe-haven currency (amongst other currencies), the Swiss Franc (CHF). With the recent ascent of the Swiss Franc Gold Prices to new record highs, it may very well mark the start of the great super-cycle in gold, in which all currencies fall against gold. This Gold breakout to highs in all major currencies at roughly the same time with the backdrop of a worldwide sovereign debt crises seems to be the perfect scenario for a swift gold appreciation, and subsequent currency devaluations (inflation).

... Continued

The Hat Tip
Aug 21, 2011 - 1:00pm

Macleod's GATA Speech

After you have read Turd's recommended "The Upcoming Expansion of US Bank Credit" piece by Alasdair Macleod (the last link), while waiting Globex to open, you can spend some time reading Macleod's GATA conference speech.

https://financeandeconomics.org/Articles%20archive/2011.08.06%20GATA%20Speech.pdf

ScottJ
Aug 21, 2011 - 1:05pm

Nice work, Scott!

Nice work, Scott!

The Hat Tip
Aug 21, 2011 - 1:07pm

Thank you

I have printed this and am going to read it now.

zilverreiger
Aug 21, 2011 - 1:07pm
padme
Aug 21, 2011 - 1:08pm

Turd is going to be famous

I always say to my family how can a skilled person like Turd is not working in a big wall street bank ?

Luckily for all of us here we have you. Turd will be famous one day, i am certain.

I just hope we will always have access of Turd's wisdom.

Au79Ag47
Aug 21, 2011 - 1:11pm

How many ounces .999 silver are out there?

More than 250,000,000 silver eagles have been minted. Do you know how many Maples and Libertads exist? Is there any way to keep track of all the 10 oz and 100 oz bars out there? Can we keep tabs on all the 1 oz rounds? I find it hard to believe that less than 1 billion ounces of .999 fine silver exist in the world, but I could be wrong. I hope I am wrong! I have seen the data from the Silver institute and know that we mine less than 900 million ounces/year. A fraction of that silver is used to make 999 bars and coins.

Bay of Pigs
Aug 21, 2011 - 1:13pm

Humpty Dumpty gold market

Well said Scott, excellent piece. Great stuff as always Turd.

Here's another article along those lines. We are headed into uncharted waters my friends.

"It is unlikely that Venezuela's gold is sitting prettily in the above-named bullion banks just waiting to be loaded on a cargo plane and sent to Caracas. It was probably loaned out long ago, and then, perhaps, redeposited at some other bullion bank and loaned out again, etc., on down the line until it was fractionalized, atomized, and otherwise depleted from its unified whole. In short, it will not be easy for the bullion banks to reassemble this golden Humpty Dumpty."

Kosares' commentary is headlined "Not Easy for Bullion Banks to Put Golden Humpty Dumpty Back Together Again" and you can find it at USAGold here:

https://www.usagold.com/cpmforum/2011/08/20/not-easy-for-bullion-banks-to...

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