The BS Thickens

Fri, Nov 4, 2011 - 9:25am

It's the first Friday of the month so we were once again treated to another edition of The Shill, The Coug and LIESman this morning. Truth be told, I couldn't stand to watch. I flipped on CNBS at 8:29 and turned it off at 8:31.

Here's an approximation of what I missed:

"Blah, blah, blah....payroll numbers...blah blah blah...manufacturing...blah blah blah...private sector....blah blah blah...seasonal adjustments...blah blah blah...public sector...blah blah blah..." Joe Kernen trying to look professorial. Michelle Cabrera trying to look sexy. Rick Santelli trying to look interested. All the while, the LSHI reached a peak of about a 7.

Look, here's all you need to know. No sense in me repeating. Just click the link:

And you wonder why we call it the "BLSBS Report"?

And while we're at it, go back to ZH and read this. Please take your time as you read it as it is critical that you understand the general thesis:

Now, the next time you hear a bank analyst, or any "analyst" for that matter, try to tell you that "financial stocks are undervalued" or that "the banking sector is healthy", remember what you just read. Knowing what you now know about the ongoing balance sheet shenanigans of the TBTF banks, you are only able to draw one of two possible conclusions:

1) The analyst is completely clueless and should be ignored.

2) The analyst is deliberately attempting to mislead you about the health of the banks and the U.S. economy, in general.

While we're at it, remember the two reasons that the TBTF banks are even still functioning:

1) Politically-forced FASB accounting changes in 2009 allow banks to value worthless securities as if they actually retain their original value.

2) To fund The Great Ponzi, TBTF banks borrow unlimited funds from the Fed at 0.00%. They then "invest" this free money into treasuries at 2-3%. They book the risk-free, taxpayer-supplied spread as "profit". They have used these "profits" in the charade of "paying back TARP". Additionally, this process allows the Fed to mask their quantitative easing efforts by having the TBTF banks do the dirty work for them. The process of QE2 and POMO was just an overt process of funding the U.S. government while at the same time injecting massive amounts of capital directly into the Fed's primary dealer banks.

But don't just take my word for it, The Wicked Witch explained this to you months ago:

The Wicked Witch Explains Her Motives.mp4

Ah, screw it. I better stop there. I'm getting all worked up and I don't have the time to continue. Maybe we can discuss this scheme in greater detail over the weekend. In the meantime, here are your charts with the levels to watch as we go through the morning:

Speaking of the weekend, I will have another podcast for you tomorrow. A slightly different take this time as its about 25 minutes with an author who has made some interesting projections about where this all is headed. I think you'll enjoy listening and you'll likely end up wanting to read his book.

Keep the faith and hang in there. Turd out.

About the Author

turd [at] tfmetalsreport [dot] com ()


Nov 4, 2011 - 9:26am

Good Morning


Nov 4, 2011 - 9:32am



Nov 4, 2011 - 9:33am

Let's start with some good news re: miners

Never been on the board this early, so here's a bit of cheer!

Gold miner divs are getting some attention and hopefully this will help drive the stock prices...
Both articles mention Yamana...Now, maybe more miners will start offering them or increase the payouts if they are already giving dividends...

same note, but with different headlines....

MARKET TALK: Gold Miners Are Taking A Page From Utilities

3:16 (Dow Jones) For many investors, gold stocks as an extension of bullion have benefited from the yellow metal's safe-haven status as a store of value during market and economic volatility. But assuming gold prices remain relatively strong, gold miners' willingness to introduce and raise their dividends offers investors another source of safety. Yamana's (AUY) 67% dividend hike and the 40% increase in Alamos' (AGI.T) semi-annual dividend are among the latest examples of gold companies increasingly deciding to return cash to shareholders. AUY climbs 5.7% but AGI.T falls 2.9%. (ben[dot]dummett[at]dowjones[dot]com)


WSJ BLOG/MarketBeat: Gold Miners: The New Dividend Kings

(This story has been posted on The Wall Street Journal Online's Market Beat blog at
By Ben Dummett
For many investors, gold stocks are seen as an extension of bullion, benefiting from the yellow metal's (occasional) safe-haven status as a store of value during market and economic volatility.
But assuming gold prices remain relatively strong, gold miners' willingness to introduce and raise their dividends offers investors another source of safety.
Yamana Gold's 67% dividend hike and the 40% increase in Alamos Gold's semi- annual dividend are among the latest examples of gold companies increasingly deciding to return cash to shareholders.
Yamana was recently up 5.4%, but Alamos was down 3.4%.

Nov 4, 2011 - 9:33am
Nov 4, 2011 - 9:39am


Nov 4, 2011 - 9:40am

Almost worked yourself up, didn't you?

I started reading the Fed/Treasury/POMO stuff and I almost went there myself thinking about the scheme.

I can't believe (almost) that no one in Govt. has exposed this aspect of what's going on. It makes sense though if you think about what would happen if all of that POMO/Treasury auction stuff just stopped abruptly.

That would be one helluva' bad market day I bet. Kaboom!

Thanks for the update and your relevant charts and thoughts on this going forward.

Nov 4, 2011 - 9:45am



Thanks for the input Chief.

Nov 4, 2011 - 9:48am

@Louie ... RE:- Lloyd's- Without warning

Has anyone seen any further sources on this article? Would seem to me that this would be HUGE, but I can't find anything other than the one article.




Bear in mind that "Lloyds of London" (= The INSURERS) ... is NOT ... "Lloyds TSB" (= The Banking Group).


Having said that ... It is still a HUGE Negative Indicator ... AND ... Lloyds TSB Banking Group are doing their OWN "Multi-Billion shenanigans & corporate reshuffling", for example :-

I also note a word-for-word DIRECT QUOTE from one of my own local (Lloyds TSB) Bank Managers :-

"Your bank account is not a very safe place to put or keep your money" ... and I use that quote against him whenever they try on any of their "We don't want to give you back your own money" crap to me.

Nov 4, 2011 - 9:54am


Fryday all and thanks Turd & loyal Turdites.


Even yesterday on BNN (Canadian business) news channel over the lunch hour... They had a guy from Toronto Gold Bullion showing off some tasty silver and gold bullion... going over some of the basics about owning physical.


But again, they always always leave and end the segment for the viewers on a negative note. For example, 'but don.t forget its risky and gold/silver prices could go down.' End segment. Conditioning again.


Fried(e)... wake N' bake...

aurum argentum
Nov 4, 2011 - 9:56am


Here comes the 10 a.m. London fix waterfall attempt... Nice fight at $1752....

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

Key Economic Events Week of 8/5

8/5 9:45 ET Markit services PMI
8/5 10:00 ET ISM services PMI
8/6 10:00 ET Job Openings
8/8 10:00 ET Wholesale Inventories
8/9 8:30 ET Producer Price Index

Key Economic Events Week of 7/29

7/30 8:30 ET Personal Inc/Spending & Core Inflation
7/30 10:00 ET Consumer Confidence
7/31 8:15 ET ADP employment
7/31 2:00 pm ET FOMC Fedlines
7/31 2:30 pm ET CGP presser
8/1 9:45 ET Markit Manu PMI
8/1 10:00 ET ISM Manu PMI
8/2 8:30 ET BLSBS
8/2 10:00 ET Factory Orders

Key Economic Events Week of 7/22

7/23 10:00 ET Existing home sales
7/23 10:00 ET Richmond Fed Manu Idx
7/24 9:45 ET flash Markit PMIs
7/25 8:00 ET Count Draghi/ECB policy meeting
7/25 8:30 ET Durable Goods
7/25 8:30 ET Wholesale Inventories
7/26 8:30 ET Q2 GDP first guess

Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
7/16 10:00 ET Business Inventories
7/17 8:30 ET Housing Starts and Building Permits
7/18 8:30 ET Philly Fed
7/19 10:00 ET Consumer Sentiment

Key Economic Events Week of 7/8

7/9 8:45 ET Fed Stress Conference, three Goon speeches
7/10 8:30 ET CGP Hump-Hawk prepared remarks
7/10 10:00 ET CGP Hump-Hawk House
7/10 10:00 ET Wholesale Inventories
7/10 2:00 ET June FOMC minutes
7/11 8:30 ET CPI
7/11 10:00 ET CGP Hump-Hawk Senate
7/11 12:30 ET Goon Williams
7/12 8:30 ET PPI

Key Economic Events Week of 7/1

7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 10:00 ET Construction Spending
7/2 6:35 ET Goon Williams
7/3 8:15 ET ADP June employment
7/3 8:30 ET Trade Deficit
7/3 9:45 ET Markit Services PMI
7/3 10:00 ET ISM Services PMI
7/3 10:00 ET Factory Orders
7/4 US Market Holiday
7/5 8:30 ET BLSBS

Key Economic Events Week of 6/24

6/25 10:00 ET New Home Sales
6/25 1:00 pm ET Chief Goon Powell
6/25 5:30 pm ET Goon Bullard
6/26 8:30 ET Durable Goods
6/27 8:30 ET Q1 GDP final guess
6/28 8:30 ET Personal Income and Consumer Spending
6/28 8:30 ET Core Inflation
6/28 9:45 ET Chicago PMI

Key Economic Events Week of 6/17

6/18 8:30 ET Housing Starts and Building Permits
6/19 2:00 ET FOMC Fedlines
6/19 2:30 ET CGP presser
6/20 8:30 ET Philly Fed
6/21 9:45 ET Markit flash June PMIs

Recent Comments

by Outback, 17 min 24 sec ago
by procog, 28 min 4 sec ago
by DeaconBenjamin, 28 min 29 sec ago
by RW, 28 min 36 sec ago

Forum Discussion

by sierra skier, 1 hour 27 min ago
by NW VIEW, 2 hours 28 min ago
by Porros, Aug 21, 2019 - 5:00am
by sierra skier, Aug 20, 2019 - 5:12pm
by zman, Aug 20, 2019 - 4:53pm