Quick Update

Mon, Oct 10, 2011 - 6:13pm

Turd's in charge of the 12 & under soccer carpool tonight so just a quick update.

First, watch the overnight action very closely. On past American bank holidays where the PM price has risen, the metals have subsequently been raided on the Globex and LBMA, by The Cartel, in an attempt to immediately claw back the gains. President's Day in February and Labor Day last month come to mind. Additionally, someone blew out some silver right at the close...enough to drop price about 30 cents. Did the EE alert a few friends of their overnight intentions? We'll see...

For a longer-term perspective, here are updated weekly charts for you to chew on.

Lastly, I'm going to beg you again to spend 45 minutes watching this video from Ned Naylor-Leyland's "Sound Money" conference last January. IF you think you understand the gold market and IF you think that the action since Labor Day has been "a natural correction", you might want to take the time to watch. Frankly, if you're a Turdite and you haven't yet watched this, shame on you. This is information with which you simply must be familiar.


More tomorrow. TF

9:50 pm EDT UPDATE:

​No real update. I just wanted to add this new video from loyal Turdite "Green Lantern". He took it upon himself to venture down to lower Manhattan to see what all the commotion is about. Below is his email "report" as well as a link to the video he uploaded to YouTube. Anyone else willing to do the same will get similar free press from yours truly. TF

"Hello Turd,
It took me a little while but I took you up on your request for somebody to go down to the Occupy Wall Street protest and ask some questions. I just uploaded the video to youtube. Basically, the scene is just as you described. As a loyal Turdite, I represented an extreme point of view. The core group of individuals who were hunkered down is a relatively small group of individuals who you wouldn't call the working class but what we might have called "hippies" in the 60's. However, what I did like were the impromptu debates that just erupted on the sidewalk. For some reason, I imagine that's what it might have been like in Colonial days with small groups of individuals gathering on the street talking about the issue of the day. My experience with the NYPD was that they were very polite as long as you didn't interfere with traffic and other pedestrians.

Thank you again for everything you've done here. It's nothing short of a heroic initiative by a private citizen to inform others. You are indeed a revolutionary yourself. Sorry to hear of your loss and I hope you will take plenty of time for yourself. I'd very much like to offer you more assistance both financially and morally so I hope my little shout on the video and my poster at the end serve to lift your spirits. You have indeed influenced alot of individuals.
Peace to you and your family,
Green Lantern"

About the Author

turd [at] tfmetalsreport [dot] com ()


Oct 11, 2011 - 4:59pm

China's Bank Situation

China's Bank Situation Deteriorates

Oct. 11 (Bloomberg) -- Jim Chanos, the hedge-fund manager who's been betting that Chinese bank stocks will tumble, said a rally spurred by government purchases of the shares hasn't changed his bearish outlook.
The MSCI China Financials Index surged 6 percent today after state-run Central Huijin Investment Ltd. started buying shares in the four biggest Chinese lenders. The gauge of banks, insurers and developers had tumbled as much as 43 percent in 2011 through Oct. 4
, sending its price-to-earnings ratio to a record low of 5.6 on concern that slowing economic growth will spur bad debts after a three-year credit boom.
“The fact that people are even talking about the government stepping in to shore up the banks, when two months ago people thought there was nothing wrong with the Chinese banks, should tell you just how seriously this situation is deteriorating
,” Chanos, founder of New York-based hedge fund Kynikos Associates, said in an interview with Bloomberg Television's Michael McKee today.
Keep a very sharp eye on this folks.
Oct 11, 2011 - 5:04pm

Great chart ED.... so, is the Morgue's derivitive debt exposure

actually the ultimate Sampson's Option held over the head of the rest of the financial world? A do what we say or we nuke the dam kind of deal?

Is it really their Achilles Heal, or a f*cking Sword of Damocles dangling by a thread over the rest of the "financial system" and the world?

Well don't look at me, damn if I know the answer. Was just asking :-)

Oct 11, 2011 - 5:16pm

@Puck, Private Gold-Backed Money vs. Public Fiat Money

I have thought long and hard about what monetary system is best: gold-backed money, or publicly-controlled fiat money. As for me, I have come to the conclusion that publicly-controlled fiat money is superior.

Bill Still summarized it well: "Either you believe that people are capable of self governance or you don't".

If you believe people are capable of self-governance, you would give money creation power to congress. If you don't, you would give money creation power to a private cartel and empower it to be "independent" from congress.

If you believe people are capable fo self-governance, support public fiat money. If you don't, you would support private cartel controlling fiat money or hard money (the Fed).

Imagine if Lincoln had to borrow money to fight the civil war (at 20% interest reportedly offered to him by financiers). He would still have won the war, but the interest payment on the new debt would have turned people in the North and the South into slaves of the financiers. Greenback was the right solution.

One more perspective: both Karl Denninger and Martin Armstrong have done calculation as to what would our (USA) national debt be if we never had to pay interests on government debt? Both came to the same number: our national debt would be 86% lower. So, rather than $14 trillion, it would only be $1.9 trillion. Rather than $47,000 per person, it would have been only $6,533 per person. The reason our national debt is so high is because of the compounding effect of debt and interests owed to the private banking cartel.

Oct 11, 2011 - 5:18pm

Comiskey Update

Here's Comiskey's update for today. He's taking votes for a new mascot, Bobblehead or Bridgette. (The 'gold-isn't-backed-by-anything' Bridgette, on the screen behind Bobblehead below).

Here's what I said, "Put my vote in for Bridgette! Perfect airhead metaphor for all the clueless people who keep saying, "Green shoots!" "No double dip!", and all the other propaganda peddled by the bubble-building network(s)."

Daily Market Insights -- Metals Futures
Oct 11, 2011 - 5:19pm

Britain's manufacturing

Britain's manufacturing declines for the third straight month...


Judging from a lot of this ( After market news ) the world is truly slowing down. Of course when one glances at the DOW you would think its 2003 all over again.


Oct 11, 2011 - 5:20pm

"We need more democracy"

"We need more democracy"...another brainwashed sap who's been conditioned by the system to think it's a democracy, when it's really a republic (or atleast it's supposed to be). The difference between a democracy and a republic is that a democracy is simply majority rule that has unlimited power over the minority, where in a republic, the majority rule is controlled and limited by a constitution where an individual's God-given inalienable rights and liberties cannot be infringed upon.

Oct 11, 2011 - 5:20pm

Jesse Ventura on OWS

Video unavailable
Oct 11, 2011 - 5:22pm

Draw your own conclusions,

Draw your own conclusions, but the Iranian thing smells like a load of bullshit to me.
The Iranian Plot: Bank Transfers of Mass Destruction | emptywheel

Hillary Clinton told The Associated Press in an interview. She said the plot - it allegedly involved Iranian government agents trying to contract a Mexican cartel to kill Saudi Ambassador Adel Al-Jubeir - was stranger than fiction.
"The idea that they would attempt to go to a Mexican drug cartel to solicit murder-for-hire to kill the Saudi ambassador, nobody could make that up, right?" she said in a nearly hour-long, wide-ranging interview with AP reporters and editors.

Like landing in Bosnia under a hail of machine gun fire? Noboby would be stupid enough to make that up, right?

Oct 11, 2011 - 5:23pm


How convenient...the Slovak report comes out 17 minutes after the market closes. It just irks me. Hopefully market crashes a few hundred tomorrow and I can get out of my Oct TZA calls with some profits.

Oct 11, 2011 - 5:24pm

RE: Self-Governance


​If you believe people are capable of self-governance, you would give money creation power to congress.

It could also be argued that if you believe in self-governance, you would give the money creation power to the people. Repeal legal tender law and make the medium of exchange a matter of individual choice determined by the buyer and seller in a given act of voluntary exchange.

Allow people to choose and may the best money win.


Jan Roos
Oct 11, 2011 - 5:24pm

Very Strange yet Again

I have posted this before and just saw the same thing happen again today. How is it possible that silver close at the exact same level as the day before so many times?

If you look at the daily chart on Kitco you'll see that silver's green line ends exactly where the red line ended yesterday. This happens quite frequently and I cannot understand how this happens if it's not manipulated somehow.

Am I off the mark here?



Ps. I am not fully in the manipulation camp yet but am getting closer as each day passes.

Oct 11, 2011 - 5:33pm

Jan, in regard to your points...

1. better ask Jon Nadler :-)

2. which camp do you attend then? My personal favorite is Camp North Star

Meatballs - A scary story
Vypuero CreditCrumbs
Oct 11, 2011 - 5:34pm

Money - gold or Fiat

notwithstanding who I know will disagree with me (Rui), you need BOTH CreditCrumbs - read FOFOA - https://fofoa.blogspot.com/

ONLY fiat has no discipline, and ONLY gold based, vs. reference point gold, provides no flexibility. Read that site very carefully - it makes more sense than anything else I have read on the subject, and I read a lot about it before I found it.

Oct 11, 2011 - 5:41pm

Thanks Stormdancer

For walking me through your thinking process that was very helpful!!

For those like me who are right-brained, sometimes it takes a little help to wrap my head around the information. And if you are not sure, here's a little fun test:

The Left Brain and Right Brain Test!!!
JackPutter Jan Roos
Oct 11, 2011 - 5:43pm

@ Jan Roos

I had to re-read your question and go look a couple of times.

I think what you are seeing is a clock changing the color of the lines while the market or clock continues uninterrupted. There is a spot where every day is a flat-line. that is a place on the clock of zero trading. If you look at the bottom of the world chart you should see some boxes labeling the markets that are open for any one time.

Hopefully I understood what your question was properly.

Bay of Pigs
Oct 11, 2011 - 5:44pm


JPM's Jamie Dimon's way of speaking to anyone else? Sounds about right to me...

animal house legs broken
silver foil hat Shill
Oct 11, 2011 - 5:52pm


but she was telling the truth about Bosnia, according to See B.S. video of the ceremony:

Hillary WASN'T LYING! Bosnia gunfire footage discovered...

Oct 11, 2011 - 6:00pm

student loans?

You are right on target, Shill.

I also have students with no intention of completing a degree. They show up to class just enough to stay in the system and keep the money flowing so they can pay rent. Talk about putting your foot in a bear trap!

Last Rebel George Clooney
Oct 11, 2011 - 6:06pm

@XTY, I gotta go w/ the grape


I gotta go w/ the grape my dear. All good!

TPaine Jan Roos
Oct 11, 2011 - 6:06pm

@ Jan Roos

Throw a SMA(300) on the daily chart.

Oct 11, 2011 - 6:07pm

More nuance on OWS - G. Edward Griffin

I apologize for not having had a chance to watch these videos in full, and they are via Alex Jones, so caveat emptor. But I figured the author of The Creature from Jekyll Island ​might have an interesting idea or two:

Video unavailable
Video unavailable

Just for kicks, for those who remember Rep. Grayson's antics with the Chairman (BIG warning, Bill Maher show):

Video unavailable

PS: Thanks for the Jesse Ventura clip, CC (and anyone else who posted it). He just may be one of my new heroes.

Oct 11, 2011 - 6:11pm

I have not been able to

I have not been able to listen to any interviews as there are still many charts to make and most importantly, connect them into a coherent whole-but i listened to this one by Marc Faber, asked by reader of Sapos's Joint:


I wander what time frame he is speaking of? But he speaks about tightening USD value,which i agree with , and tightening of liquidity:

"Despite the fact that the (European Central Bank) and the European government will flood the market with liquidity to bail themselves out, global liquidity is tightening," Faber said. "Whenever global liquidity is tightening it is bad for asset prices but good for the U.S. dollar, as was the case in 2008."

From my charts ( and some yet in work stage) after Greece leaves euro, USD starts to move up, everything else down starting from March April 2012 ( recession in the USA inq1 2012, deflation-that is my current scenario):

it should read USD PER EUR, not USD/EUR

Except (there may be more exceptions ) in the beginning till July 2012:

1) Silver -up strongly to 60 USD
2) Gold - practically same level as today, around 1700 USD
3) Brent Crude Oil 1M -practically the same as today, 108 USD+-5 USD
4) Japanese yen-up by 10-15%

EUR will shoot down by 7% in the same time July 2012) , to 1,275 USD per EUR

There might be more commodities of limited supply that may move up despite up-tick in the USD as flight for safety takes place. On longer scale, commodities tick up, but which and how much -i would not commit myself-under study still.

[b]Interestingly,for the last 3 years silver price has followed with delay the initial expansion of FEDs balance from 2008 to 2011 sheet exactly (300%) .[/b][i][/i]

So, if silver initially shoots up 200% in 4 months (Apr-July 2012), than that would suggest that FED will expand its balance sheet again.

Now, FED expanded its balance sheet from Sept 1,2008, till 31-dec-2008 from 907 billion to 2241 billion, or by 247%. Silver prices in the same time initially increased from 11 USD to 13 then dropped to 9USD. Gold behaved similarly... Because of credit crunch, panic, recession. I do not see it happening again-may be people have learned that selling PM when balance sheet is expanded, is bad idea.

However, if we take next 3 years after April 2012 when I think QE3 will begin, Silver will still be at 100USD at April 2014 vs. average 33 USD in the April of 2012. [b][i]That is another 300% increase. Based on this, somehow, FED owned assets and thus money to balance them will reach 8,586 trillion USD. [/i][/b]. What assets would they purchase with newly created money?

USA debt obviosly, but not all of the increase fo 4 trillion from 2012-2014? Freddie Mac has 1,85 trillion loans in its balance sheet, Fannie Mae 2,9 trillion. May be something more sophisticated, but, if there is recession , house values will drop further in USD, putting Freddie and Fannie blow water again.

Any other ideas how , to whom FED will create money for QE3? I would suggest distribute these 6 trillion straight to the people, that is about 20000 USD/head, and forbid to use this money for debt repayments, only for spending in consumption. That could incrase money velocity and help economy to create value.

Timber Tim
Oct 11, 2011 - 6:27pm

More war to distract the

More war to distract the masses and secure resources.

Plot to Kill Saudi Ambassador to U.S.
Oct 11, 2011 - 6:32pm

Riding the Tiger.

So it looks like Jesse Ventura and Alan Grayson might be trying to ride the tiger. Good luck to them. There is only one person in this country who has anything close to the qualifications for that job. I don't even have to say his name.

Bobbejaan ivars
Oct 11, 2011 - 6:46pm

Quote:I would suggest

I would suggest distribute these 6 trillion straight to the people, that is about 20000 USD/head, and forbid (recipients) to use this money for debt repayments, only for spending in consumption. That could incrase money velocity and help economy to create value.
Sounds like an EXCELLENT idea to me !!!

Give me $20,000 (or even better GB£, but I'm not fussy) on the condition that I have to SPEND the money on goods rather than paying off my non-existent debt .... and you WILL see the velocity of that money increase to near-lightspeed on my way to the Local Coin Shop to create REAL value by buying Silver & Gold !


... The one small flaw in my cunning plan is the fear that this particular cripped old fart would probably get crushed by the LCS stampede of all the other fitter readers of this site. ... Still, I reckon I could probably sabotage at least a FEW of you other old farts by hacksawing part-way through your crutches or letting all the air out of your wheelchairs.



Timber Tim
Oct 11, 2011 - 6:52pm

False Flag, For Sure

Holder is a criminal sociopath. This "plot" reeks of political distraction.

Real question is whether the loser holder resigns or not. My theory is this:

Holder is trusted by TPTB. He has, and will, do what he is told, and is willing to take political heat for decisions. He is, thus, very valuable. He will not be forced out until: a new suitable replacement can found, who will be able to be installed despite political opposition in this run-up to 2012 Presidential elections, OR he proves unable to maintain his political viability as Rep. Issa pours on some more gasoline onto the partisan flames surrounding the Fast and Furious investigation. If he proves dangerous, then he will go the way of Vince Foster.

For Obombya, it was political suicide to publicly back Holder. So, naturally, why would he back Holder? My only conclusion is that Obama was doing as he was told.

I am having a very difficult time believing that Obama is so disconnected that he fails to realize he is going to be either a martyr, like Kennedy, or a boob, like Carter. Something is afoot and I like it not one bit.

BagOfGold Eric Original
Oct 11, 2011 - 6:56pm

Eric O...

You ask...Are there too many miners?...

No!...There are just...fewer good miners!!!...

Bag Of Gold

Oct 11, 2011 - 7:04pm

What a nice suprise

Gone all afternoon to run errands and engage in some legal B.S. downtown and look who I see is back at it.....shill!!! Good seeing you back onboard.

Glad you caught your breath and found your way back. I hear you on the Iran thing.

I think everyone hear realizes it, but whether it's the truth or completely false, the U.S. has just laid the first pretext down for any action that takes place going forward. It's a given.

Shill brought up another biggie that were just hearing about and it's the Chinese and the propping up of four of their biggest banks and who knows what else. That sounds a lot like QE China version 1.0 to me. The way the market is stuck in neutral or negative sucks for sure. But in all honesty, I can't wait to see what happens going forward.

At some point soon enough, it will be obvious that everyone is QE'ing to some extent. I think it might be entirely possible that instead of falling into a deflationary scenario here and abroad that we may see a hyper inflation scenario all over the place in just about every country at some point. It would appear to be human nature that if given the choice, would you rather go down in a smoldering and deflationary/stagnant heap because you won't print more money or will you print away to fool yourself into feeling not as destitute and go down in a flame of paper money and try to inflate value into everyday even if illusory? I think any of us would rather have too much money then not enough even if we knew it was a very unbalanced and transparent wealth. (jmho)

Oct 11, 2011 - 7:12pm

Senate OKs bill pressuring China over yuan...

DPH: Chinese response in 5,4,3,2... Looks like things are sure going to get interesting.

shill.....Glad to hear your loaded up on TBT. It's bound to happen sooner or later. Goading them hastens it. Their plan maybe?


Oct. 11, 2011, 6:47 p.m. EDT

Senate OKs bill pressuring China over yuan

House Republicans, President Obama cool to Senate bill

By rschroeder[at]marketwatch[dot]com (Robert Schroeder), MarketWatch

WASHINGTON (MarketWatch) — Ratcheting up pressure against a major U.S. trading partner, the Senate on Tuesday approved a bill that would allow new duties on goods from China and other countries that lawmakers say manipulate their currencies.

Overriding objections from some senators and business groups that said the measure would start a trade war with Beijing, the Senate voted 63 to 35 for the bill on Tuesday night.

Action on the measure may stop there, however. House Republican leaders and President Barack Obama have been cool to the bill — a bipartisan measure that its sponsors say would help bring down the 9.1% U.S. unemployment rate.

The bill instructs the Commerce Department to investigate if any country is subsidizing companies through an artificially low currency, and allows for retaliatory U.S. tariffs.

But the main focus of the bill is China, which lawmakers and the White House long have accused of manipulating the value of its currency, the yuan /quotes/zigman/4869230/sampled USDCNY -0.01% , for export advantage.

The Treasury Department has not formally named China a currency manipulator, though, and the Senate bill seeks to act where the administration has not.

China is gradually allowing the value of its currency to rise. Late last month, the People’s Bank of China set the yuan’s midpoint trading range against the U.S. dollar at a new record high of 6.3735.

It’s unlikely that the House will pass the Senate bill as written, but it’s “clearly possible” that the House could pass its own version later, according to Alec Phillips of Goldman Sachs.


RuNuts JackPutter
Oct 11, 2011 - 7:50pm

Re: people were using modems

Another reason to get this site in a mobile/text only format.


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