Of Revolution and Revolutionaries

Fri, Sep 30, 2011 - 11:29am

Thanks, everyone, for the "day off" yesterday. I needed to step away and clear my head. A little fresh air always helps the cause. It's Friday. I'm back. And there are a few things we need to discuss.

First of all, the markets in general. I can't find a single one I like. The "dots" of impending collapse are everywhere. The challenge is to try to connect them...or at least connect them in a reasonably accurate manner that allows you to move with confidence. In the end, though the global central banks seem to have unlimited fiat with which to prop them up, worldwide equity markets look as if they are perilously close to outright collapse. And don't ever forget the ultimate, short-term benefit that would befall the U.S. should this occur, first eloquently brought to our attention by the great Tyler Durden nearly two years ago:


As this pertains to the PMs, traders should exercise supreme caution here. As you can see on the charts below, a breakdown today could foreshadow even more weakness next week. As I mentioned Wednesday evening, given the unprecedented level of C/C/C manipulation we've seen, I doubt they're done. Lots of moving averages out there that might provide support levels but I'm sticking with my ruler and sharpie and they continue to show possible bottoms near $24 and $1480. Again, if you must trade, please be cautious.

Lastly, I've noticed that, nearly every day, discussion increases here regarding the ongoing protests in New York. Many here are very passionate about the dangerous and tenuous position in which the current system of crony capitalism and banker oligarchy has left us. Fine. Me, too. However, I do not feel that Marxism and Marxism-lite (socialism) is the answer.

Perhaps one or two of our NY-based turdites could venture down toward lower Manhattan tomorrow to ask a few questions of these peace-loving youths so many seem to idolize. Let's start with:

1) What is the Federal Reserve, what is it's function, when was it created and what policy are they currently following that is so ruinous to the life savings and purchasing power of the average citizen?

2) What is a Credit Default Swap and what role did it play in the 2008 financial crisis?

3) In hindsight the repeal of the Glass-Steagall Act in 1999 was not a very good idea. What was the Glass-Steagall Act and why was it important?

4) Going forward, which type of leader do you prefer? George Washington or Vladimir Lenin? Martin Luther King or Che Guevara?

I'm not going to wait for the answers. Why should I when I already have evidence like this:

Cornel West's Closing Remarks at Speach at Liberty Plaza in NYC

Is this an intelligent, thoughtful group which seeks reform within the current capitalist system that has defined America for 235 years OR is this simply a group of mind-numbed, "useful idiots" blindly repeating the mantras of a marxist revolutionary? You decide.

Clearly, in managing the situation, some police officers have over-reacted. This is always disheartening. Given the mayhem that has accompanied similar anti-capitalism "protests" in cities such as Seattle and Toronto, it would seem that the NYPD is not looking to be overly-friendly. This does not mean, however, that our mantra is "F the Police". If you think that the police are the enemy, then I must ask you two questions:

1) The next time you are in trouble....from a home invasion, a simple assault or a car accident...who will you call? Maybe you can take of yourself just fine but who will your spouse call if you're not around? How about your daughter? How about your mother? Who will they call?

2) And how did you feel about the police on 9/12/01? Were you proud of them or did you go around yelling "F the police"? Then ask yourself: What has changed? Have the police changed or have I changed? Your honest answer to that question needs to be considered.

Ok, time to conclude this post. Please understand, I know that the current system is unsustainable and must be changed. I am not, however, throwing in my lot with this first batch of "protesters". Marxist revolutions only lead to tyranny and mass graves and I won't be a party to it. Instead, we need a revolution of personal freedom and responsibility. We must reclaim representative democracy and free enterprise. When that movement finally takes to the streets, count me in. To that movement only, I will happily pledge my life, my fortune and my sacred honor. TF

p.s. Given the "controversial" nature of this post, the comments sections will be closely monitored. All views and opinions are welcome but anyone not observing TurdWorld Rule #1 (treat others the way you want to be treated) will likely see their comments deleted. We need more peace and less hate in this world and I will not allow this site to promote anger and hostility. We are all on the same team here and we need to work together if we are going to survive the turbulence ahead.

About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 30, 2011 - 2:25pm

A different take on it

Sept. 30, 2011, 12:11 a.m. EDT

Don’t march against banks — walk away from them

Commentary: Protesters are missing the point

By brett[dot]arends[at]wsj[dot]com (Brett Arends), MarketWatch

BOSTON (MarketWatch) — Bring on the barricades! Protesters are coming to downtown Boston Friday. I’ve just received notice that up to 1,000 people are expected to “march” on Bank of America “to rally against Wall Street greed, predatory lending, and skyrocketing foreclosures.”

We’ve seen protests in New York and elsewhere. A family in California is barricading themselves in “their” home — presumably they mean the bank’s home — to prevent foreclosure.


I hate to break it to the marchers, but Bank of America /quotes/zigman/190927/quotes/nls/bac BAC -2.52% CEO Brian Moynihan has bigger problems. His stock has halved since the start of the year. Wall Street greed? Maybe he could give these folks train tickets down to Greenwich, Conn., to march against the hedge funds shorting his stock...


Sep 30, 2011 - 2:27pm

Tip of the iceberg

Young, confused, ill-informed or even misguided people are the first ones to take to the streets? Who woulda thunk it? That the ones with the fewest tethers, the least to lose would be the first ones to express an inchoate, primal sense of injustice is, I think, perfectly natural. There is slightly more to the events on the pavements near Wall Street than just a bunch of Communist neo-hippies. It's just that they are the first ones foolish or brave enough to stick their heads out. Search for "what is the plan". Be careful what you click on, I would recommend an internet cafe or some strong proxy usage before visiting the site. But then again, my tin foil hat is on too tight. Take a moment to consider these thoughts as well: "I’m beginning to wonder whether the right to assemble is effectively dead in the US. No one who is a wage slave (which is the overwhelming majority of the population) can afford to have an arrest record, even a misdemeanor, in this age of short job tenures and rising use of background checks." https://www.nakedcapitalism.com/2011/09/welcome-to-the-police-state-nyc-... "There are hints of a more menacing presence; I was told by several organizers that men dressed in business suits accompanied with what looked like police have on several occasions ordered them to vacate the park, handing protesters official-looking orders that on closer inspection were not actually from any governmental authority. Lawyers at the protest made it clear these were to be ignored." https://www.nakedcapitalism.com/2011/09/matt-stoller-occupywallstreet-is... "But for those who believe that protests are only worthwhile if they translate into quantifiable impact: the lack of organizational sophistication or messaging efficacy on the part of the Wall Street protest is a reason to support it and get involved in it, not turn one's nose up at it and join in the media demonization. That's what one actually sympathetic to its messaging (rather than pretending to be in order more effectively to discredit it) would do. Anyone who looks at mostly young citizens marching in the street protesting the corruption of Wall Street and the harm it spawns, and decides that what is warranted is mockery and scorn rather than support, is either not seeing things clearly or is motivated by objectives other than the ones being presented." https://www.salon.com/news/opinion/glenn_greenwald/2011/09/28/protests I respect the hell out of you, TF, but I strongly disagree with you on this one. Police are, by most definitions, meant to uphold LAW AND ORDER. Law and order are necessary keystones of a thriving, healthy, moral society. They are also necessary keystones of authoritarian repression. Think on which of the two our current version of 'law and order' resembles more. Do the same laws apply to THEM (meaning TPTB/EE/C/C/C/CBs/TBTFs) as to US? EDIT: Will these protests achieve anything? Are they being coopted by the current PTB, or even darker forces? Who knows. But in my book, calling attention to the rot is a good thing. If small groups of people start to think on WHY these individuals are out there trying to make a statement, they will have achieved something. I also do think that by being out there, talking and sharing experiences with other real people, making a sacrifice (some symbolic, some not so much), these participants are demonstrating freedom, initiative, not a small degree of ingenuity. More than can be said for most in their age group. I cannot join them. But cheer them for what very few of US (meaning everyone else, not just this community) are doing: taking a public, visible, concrete stand and trying to change what is obviously a very f@$&%d up state of affairs. Like others have said, educating them is a worthy cause. They have shown a capacity to try to learn.

Sep 30, 2011 - 2:28pm

SPY just broke down 114 and

SPY just broke down 114 and SLV said...Nope...interesting.

Jasper Puddlemaker
Sep 30, 2011 - 2:30pm

Interesting info on out of season gold moves...

This is an interesting observation about out of season gold moves (like we experienced this summer). It is from Reg Ogden's "The Ultimate Gold Stock Trader" (2005). (Out of print; wish he would bring it back since my copy is worn out).

"An out of season move in told during the summer months is usually a sign of an impending bull market even when it retraces these gains in the fall. There have been three serious gold upswings in 25 years in the summer months. Each time, gold retraced most of the gains through September, then began a bull phase through the following spring. When gold made an upward move in the summers of 1973, 1979, and 1982, the run lasted."

Hope history repeats (again).

Jan Roos
Sep 30, 2011 - 2:31pm


A Nuke? Areyou serious? Did you see what the only nukes ever to be used on mankind(USA) did to Japan? You need to really start thinking about what you post sometimes. Cheers Jan

Sep 30, 2011 - 2:32pm

I love how gold and silver

Always are driven to lows in such a fury that you constantly get the feeling like they are just about to fall off a cliff.

Like this pattern is designed for max psychological fear of freefall... behavioral finance doing work.

So sick...

Watching the candlestick bars is memorizing....

Looking for a bounce into the Market Close.

Sep 30, 2011 - 2:33pm

Silver’s set for a big monthly loss, but a rally may be coming

Silver’s set for a big monthly loss, but a rally may be coming

September 30, 2011, 12:04 PM

It looks like silver will end the month with a hefty loss of more than 27%, but analysts are still optimistic that demand for the white metal, and prices, are in for a rally — if coin demand offers any indication.

Earlier this week, Dillon Gage Metals said the U.S. Mint hasn’t been able to keep up with demand for silver bullion coins because there’s a shortage of blanks to make the coins.

“We expect silver demand to remain strong, and could see prices push above $50 per ounce in late 2011,”said Terry Hanlon, president of Dillon Gage Metals, on Monday. “We’re optimistic for 2012, too, because we see an expanding group of buyers of coins and small bars.”

There’s a “huge demand for silver coins all over the world, hence the shortage,” but that’s not the case with gold, according to Chintan Karnani, chief analyst at Insignia Consultants in New Delhi.

“Gold over the coming years will be out of reach for the common man and silver will be the affordable way of owning bullion,” he said.

At last check, December silver SI1Z was down 18 cents, or 0.6%, at $30.36 an ounce on the Comex division of the New York Mercantile Exchange. For the week, it’s trading slightly higher, but it’s also trading nearly 13% lower for the quarter and year to date, it’s still negative.

December gold GC1Z, however, was trading $7.10 higher at $1,624.40 an ounce, down for the week and month, but up nearly 8% for the quarter for a year to date rise of more than 13%.

–Myra Saefong

Sep 30, 2011 - 2:35pm

Final Thought on Protesters

In my mind, most protests are not started by a group of people having the same goal, the same thought, and the same ideology. Such protests cannot gather a large number of followers. Most protests consist of loose collection of people with different views and ideologies, but are united by anger. What you see in Occupy Wall Street movement is precisely that: diverse groups of angry people. A lot of them are Gen-Y youngsters, the same demographic group that has 25% unemployment rate. Many of them do not know the truth about EE and its apparatus. All they know is something is wrong with the country, and are relying on their political bias.

Rather than dismissing them, we have to learn to work with them. We have to educate them. No other force is as strong as a demographic bulge of youth with a high rate of unemployment. They are a potent tool, and currently there is a power vacuum in their leadership. Watch how Egypt military uses the anger of their youth to achieve their goal (toppling Mubarak and installing their own). Before long, there will be powerful people directing these Gen-Y youngsters to achieve their selfish ambition, unless we chip in and help educating them.

My message remains this: get to know Gen-Y youngsters in your community and start the communication going. If all of us do this, we may have a chance to shape the future form of government.

Piece of Gold - Peace of Mind
Sep 30, 2011 - 2:37pm

Say what you will about the

Say what you will about the who's and why's of the protestors at Wall Street....

Everybody in this forum should be excited that for once, somebody, anybody has opened their collective eyes and mouths to voice some sort of dissatisfaction with the current status quo.

No matter what anyone says it takes some courage to go against the establishment in a very public way.

The protestors should definitely be commended and supported for making their stand.

Just my opinion.

bensgone meegoreng1
Sep 30, 2011 - 2:39pm

I am always solvent !!

"The market can stay irrational longer than we can be solvent".

And I can stay stacked longer than the market can stay irrational !!!!!

With my stack I am always solvent. Its the paper game that will bust you.

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