After a long day, I knew I had to post something for you. If anything we have to start a new thread because the old one is now over 600 comments. I could take what has become the usual theme and expand on it but I'm not going to. No charts tonight. Just a brief, frank discussion about what is to come.
First of all, for those who still think in fiat status quo terms, on a percentage basis gold was down far less than equities today. If you're in silver, you got your butt kicked. But hey, if you're going to be trading silver, you'd better get used to getting your butt kicked every once in a while. When you're in a market that is controlled and dominated by an uber-short which can manipulate price at any time of their choosing, you are, occasionally, going to get your butt kicked. Period.
But my questions for you tonight are: Why does this even matter? Are you angry tonight because the fiat-conversion value of your gold and/or silver stack declined? And why did it decline? Did it decline because actual demand is less or did it decline because the paper-metal, 100:1 leveraged futures market went down? And why are you buying and holding metal in the first place? Is it because you're trying to make a fiat-based trading profit? Really? Well, OK. But why are you doing that? So you can take your profits and buy more physical metal? If that's the case, you should celebrate days like this because your fiat buys you more metal tonight than it did last night. And is QE over? Is the dollar suddenly the world's strongest currency because the U.S. implemented about $1.5T in 2012 austerity measures overnight?
Look, you need to understand right here and right now that we are far closer to the end than you think. I know how hard that is to comprehend, especially coming from a guy you don't know, who writes an anonymous blog under the pseudonym of "Turd". And I know its hard to believe because, if you were born after 1930 or so, you've never known a world without U.S. hegemony. Life has always been easy for the U.S. and its pals. We manufacture money out of whole cloth and stash the incumbent inflation on the shores of our unsuspecting imperial subjects. Well, those days are over, my friend. The proverbial chicken isn't just coming home. It's on the roost right freaking now!
Of all the things that The Bernank could have done yesterday, $400B in "Operation Twist" was actually the worst possible move. Quantitative Easing was always designed to buy time. Time was purchased in the faint hope that the economy would recover sufficiently to generate enough tax revenue that The Great Ponzi could continue. In the end, it wasn't going to work but at least, if The Bernank had opted for another trill or so of new QE, he might have succeeded in putting off the inevitable a little while longer. Now, the smartest-guy-in-the-room thinks he can massage just enough global chaos to create demand for the $400B in short-term treasuries he wants to sell. But the problem is, Mr Smart Guy won't be able to control the chaos he's created and the attendant global economic freefall will only serve to destroy the last hope of the economic growth needed to stave off the ultimate Keynesian collapse. It's a fait accompli now. Done deal. Over and out.
So, going forward, this site is going to return to its originally stated goal:
The end of the Great Keynesian Experiment is upon us. Prepare Accordingly.
Don't worry, I'll still attempt to predict future, short-term movements in gold and silver but that is not going to be the primary focus of this site. It can't be. Why? Certainty. Huh?
1) No one...not even the Great and Powerful Turd...can, on a consistent basis, predict price with a high degree of accuracy.
2) I can, however, tell you with 100% accuracy that tomorrow is not going to be like yesterday. The world in which you grew up is not the world in which you will grow old.
If, by the grace of God, we've been granted the wisdom to see this future clearly, then it is incumbent upon us to use this platform to warn and educate as many as possible while there is still time to prepare.
That's all for now. It's been a long day and I need some R&R. Let's see where the metals trade overnight. I strongly suspect that the paper futures market is headed down to fill the gap on the chart from 8/7/11 at 1665 or so. Probably not tomorrow but soon. We'll see. More in the U.S. a.m. TF