No Rest For Turd

150
Wed, Dec 7, 2011 - 10:16pm

It's been a long day and a long week. I did not intend to add more content tonight...that is until I took a few minutes to read Harvey. There, I found two very important items that I knew couldn't wait till morning.

First, read this:

https://www.gata.org/node/10746

One of the things we failed to notice prior to the unexpected beatdown in gold in September was that lease rates had moved significantly into negative territory prior to the attack. One of the articles we referenced back then was this one, linked below:

https://ftalphaville.ft.com/blog/2011/09/14/677021/why-gold-forward-rate-inversion-is-important/

Anyway, here's the point. At -0.5%, lease rates are again near the level they were when gold was savagely attacked last September. One could say that the current, European dollar funding shortage is to blame. Maybe it is and maybe this is just a temporary phenomenon that will not impact the short-term price of gold. However, maybe its a precursor of another big selloff. The banks on the other end of the lease can use the borrowed gold to flood the market with sell orders. I took a bit of grief for not accurately predicting and warning of the September massacre. If gold crashes again over the next few days, don't say you weren't warned this time.

Next, a great piece from Egon von Greyerz of Matterhorn Asset Management. Like most of us, I was first exposed to Egon through ZH. Clearly, the guy gets it. Please take time to read this in its entirety.

DEUS EX MACHINA

by Egon von Greyerz – December 2011
With most of the world’s major economies as well as the financial system bankrupt, there is only one solution that can save the world economy. Like in the Greek tragedies, Deus ex Machina is now the only way that the world can avoid a total economic collapse. This would involve God being lowered down onto the world stage and miraculously saving the plot.

DEUS EX MACHINA by Leo Lein – www.leolein.se
For those few who believe in this, may God bless them. But since this is a very unlikely solution most people will instead rely on governments and central banks to save us. But how can anyone possibly believe that totally incompetent and clueless politicians and central bankers could solve anything. They created the problem in the first place and are therefore totally unsuitable to play the role of Deus. The main objective of governments is to stay in power and thus to buy votes. Therefore they are incapable of taking the right decisions. And the opposition, aspiring to power is even less suitable since they will lie through their teeth and promise the earth in order to be elected. (We know that there are exceptions like Ron Paul, but the voters will most probably find his medicine too strong to swallow.)
What about central bankers, can’t they save us? Unfortunately any sensible person who becomes a central banker loses all his senses and becomes a prisoner of the political system.

Solution?

So if there is no Deus ex Machina and if governments or bankers can’t rescue the world, who can and what is the solution. Let us return to the wise von Mises to look at the options available now:
“THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED”
Ludwig von Mises
Mises is absolutely correct: “There is no means of avoiding a final collapse of a boom brought about by credit expansion”. Whatever politicians, bankers, economists or others experts say, there is no solution to this crisis.We have reached the end of the road and are now staring into the abyss.
The credit manufacturing system that started in 1913 when the Fed was founded, began its terminal phase in 1971 when Nixon abolished gold backing of the dollar. It has been clear to us for at least 20 years that the outcome was inevitable. It was never a question of “if” but only “when” it would happen. It is now clear to us that the false prosperity that the world has experienced by printing unlimited amounts of money will very soon come to an end. Thus the “if” and “when” conditions are now satisfied so the remaining question is HOW?
To try to answer this let’s return to Mises: “The alternative is only whether the crisis should come sooner as a result of voluntary abandonment of further credit expansion ….”
To stop the money printing and credit creation would be the only sensible way of ending the failed quasi-capitalist, socialist experiment which is in the process of destroying the structure of the Western world. For almost 100 years we have lived on a system based on debt. This has created a false prosperity as well as false values. The transfer of capital from private enterprise to government by massive taxation is approaching 50% in many countries (see table). The average for 18 industrialised countries is almost 40%. This means that on average 40% of the productive economy is transferred to a non-producing entity (government) which wastes most of the money in the process of redistribution. But not only that, since the state has taken over up to 50% of the economy in these countries, the desire to work, to strive, to take risk and to invent has been taken away from a major part of the population.
For a great many people it is now totally natural to rely on the state for their needs rather than on themselves. And the state needs to borrow/print ever increasing amounts to perpetuate this economy based on an illusion. This situation is totally untenable. Since any additional money printing will only exacerbate the crisis and make the final collapse so much greater, the swiftest solution would be let the financial system implode now. We need to reset the world to a level which is sustainable. The consequences of this implosion would be a collapse of the financial system and a reset of debt to zero. Although this is unthinkable to any government or politician, it would be by far the quickest way to get the world back on its feet with no major debts, minimal government interference, and no central bank that can print money. It would be like a forest fire getting rid of all the dead wood. Out of that would rise masses of green shoots in the form of strong unchequered growth. The transition will of course be traumatic and the current generation will experience enormous hardship. But not voluntarily abandoning the money printing now will just delay the inevitable and the consequences will be dramatically greater and affect many future generations.
Anyone who has followed my articles will know my view that governments worldwide are totally incapable of stopping the money printing. This is their only means of staying in power and buying votes. But not only that,this is the only method they know. This has been their patent solution to all economic problems in the last decades. Not that this is new in history. Most empires have resorted to diluting the value of money by reducing the gold/silver content of coins or printing paper money. But as far as I know it has never before been done by so many countries simultaneously to such an extent.
Since there won’t be any voluntary abandonment of credit creation what will the likely outcome be? Again let’s use Mises words: “…… a final or total catastrophe of the currency system involved”. The problem this time is that we are not talking about one currency or one country. No, we are talking about most of the world’s major currencies. We have been used to measuring currencies and economies on a relative basis i.e. against each other. But this is a total fallacy since all major currencies have been in a race to the bottom for the last 100 years. Most currencies have lost between 97% and 99% against real money –GOLD – since 1913. And since 1999, most currencies have lost 80% or more against gold. So paper money has been a very poor measure of wealth in the last 100 years. Governments are creating credit and paper money and consequently through their fraudulent actions “stealing” from the people whilst at the same time increasing the people’s dependence on the state. And the people does not understand that the value of paper money is declining continuously. But gold reveals the deceitful destruction of paper money. This is why governments do not like gold and try to suppress the gold price.

Endless Money Printing – QE

And how will the currency system collapse? The answer to this question is very simple – through endless money printing. There will be no lasting austerity programmes in any country that can print money. Governments are incapable of sticking to austerity measures since in the end that is a guaranteed way of losing power. As power is the main purpose of all governments, they will use any method to retain it. Within the Eurozone, individual countries can of course not print money but the ECB and the IMF will take care of that. So whilst world leaders are procrastinating and bickering in G8, G20 and all other “summit” meetings, it is absolutely guaranteed that the final outcome will be one QE package after the next. Governments and central banks know that without limitless money printing there would be a deflationary collapse of the banking system and world economy.
The table below shows the financing requirements of the PIGS countries in the next few years. Just Italy and Spain will require €1 trillion in the next 4 years and of that 1/2 trillion Euros in 2012. Only printed money will take care of that.
For many years it has been absolutely crystal clear to some of us (sadly a very small minority) that many major sovereign nations are bankrupt as well as the world financial system. Banks are only surviving because they, with the blessing of governments, are allowed to value trillions of dollars of toxic and worthless assets at full value. And on top of that there are more than $1 quadrillion outstanding in derivatives. These are outside the banks’ balance sheets and there are virtually no reserves against them. The banks are netting the value down to virtually nothing and then applying a miniscule reserve against this net amount. First of all, the netting is only valid when the counterparty pays. When there is a counterparty failure, which is very likely in the coming financial collapse, gross remains gross and the $1 quadrillion remains $1 quadrillion. Secondly, a major part of the derivatives are worthless or not protecting the investors as we have seen with for example Freddie Mac, Fannie Mae, Lehmans and lately MF Global. MF Global had bought CDs to hedge their investment in Greek debt. But they hadn’t understood what they had bought and it turned out it offered no protection at all.

Hyperinflation

The “final or total catastrophe of the currency system” will occur as a result of the QE or unlimited money printing that will very soon start in the EU, USA, UK, Japan and many more countries. And this currency destruction will lead to hyperinflation as I have stated for many years. Throughout history, substantial government deficits leading to money creation or printing have always been the cause of hyperinflation. Because hyperinflation is always the result of a collapsing currency and not of excess demand.
To any thinking individual, it is totally incomprehensible that governments and central banks believe that an insolvent world can be saved by debt issued by bankrupt nations and then bought by the issuers themselves as there is no other buyer. This is the perfect recipe for self-destruction and “total catastrophe of the system.”

IMF, EU and other failed monstrosities

Time and time again, the world creates massive costly, bureaucratic and unaccountable structures that have idealistic and totally unrealistic objectives.
Take the IMF for example. This is what their mission statement states: “The International Monetary Fund (IMF) is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.”
If financial stability, high employment, sustainable economic growth and reducing poverty are the objectives of the IMF, then they have failed on every single point. So here we have an organisation that receives/borrows money from mainly bankrupt states and then lends the money to countries that cannot or will not ever repay the funds. And in order to carry out this totally futile task, the IMF takes a major cut in between to finance its costly and failed operation. The world does not need monstrous and costly structures that totally fail in their mission. Thus, the IMF should be closed.
Turning to the EU, they state on their website: “The main objectives of the Union are now to promote peace, the Union’s values and the well-being of its peoples”. There are other stated objectives such as: “sustainable development, based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment.”
The EU or the EEC as it was first called was created in the late 1950s. This was a prosperous period in the world economy based on real growth (not debt). As often is the case, politicians with illusions of grandeur create superstructures which only function in good times. The EU’s main objective of creating peace and well-being of the people is now being severely tested. If we for example asked Spanish youth (50% unemployed) about their well-being or Greek people or the Portuguese etc, we would get a tirade of abuse and complaints about the EU. Instead of “creating peace”, we are seeing major tension within the EU that could lead to serious conflicts. And as to “balanced economic growth and full employment”, this has all come to an end. The false prosperity, mainly based on debt, has also come to an end and the EU can only survive intact with the aid of endless money printing. But even that would only be a temporary reprieve. The EU is a failed experiment which is extremely costly and inefficient. The economic ruin of Ireland, Greece, Spain, Portugal, Italy, France etc would not have happened to the same extent without the EU. Like all artificial fiat currencies, the Euro was doomed to fail. Without the Euro, countries like for example Ireland, Spain or Greece would have recovered much faster.

Final or total catastrophe

So we are heading to the final stage or as Mises says a “final or total catastrophe of the currency system involved”. I don’t think that even Mises envisaged at the time that this could involve a major part of the world rather than just one country. This is why this catastrophe will be unprecedented in world history and have consequences that will affect the world economically, socially and geopolitically for a very long time.

Wealth Preservation – Gold

Since 2002 we have advised investors to put up to 50% of their assets into physical gold, stored outside the banking system. Gold has appreciated between 15% and 20% per annum since 2002 depending on the base currency. And most stock markets have declined 70-85% against gold in the last ten years. In spite of this most major investor groups (institutional, funds, asset managers or individuals) own no gold. Gold is money and reflects the total destruction of paper money. But most investors do not understand gold. Common arguments I hear is that “you can’t eat gold” or that “gold pays no return.” It seems that these investors prefer to eat paper money. And as to the argument that there is no yield on gold, who needs yield on an asset that has massively outperformed all major asset classes in the last 11 years. And if we look at 2011, gold has greatly outperformed stock markets in most major countries. Whilst stock markets are down between 1% and 24% in 2011, gold is up more than 20% against all major currencies. So in real terms (gold) all stock markets are doing very badly but still investors persist in riding these falling trends.
Stock markets will benefit temporarily from QE but it is still our view that they will fall another 90% against gold in the next few years.
The correction in the precious metals is now likely to be over and we should see the metals going to new highs in 2012. I had the pleasure of becoming acquainted with Alf Field at the recent Gold Symposium in Sydney where we were both speakers together with Eric Sprott, John Embry and Ben Davies amongst others. Alf is one of the few in the world, if not the only one, who knows how to apply the Elliott Wave principle successfully to gold. Alf’s next intermediate target is at least $4,500 and the ascent to this target could be rapid. That would probably mean a silver price of $150. These technical forecasts certainly confirm the fundamentals as outlined in this article.
The world is in a total mess and there is absolutely no solution to this unprecedented crisis. The hyperinflationary depression that we will experience in the next few years will totally destroy the majority of the credit based wealth that has been created in the last few decades.
In order to preserve wealth and keep capital intact, it is critical to keep a major part of investment assets in precious metals held outside the banking system. But for investors who continue to follow conventional wisdom, they will sadly find that their investment strategy was merely conventional and contained no wisdom.
6thDecember2011
Matterhorn Asset Management - Switzerland
Hang in there. Stay alert. Be prepared. Anything is possible. TF

p.s. I received this "NewsAlert" from the criminal CME this evening:

News Release Issued: December 7, 2011 6:15 PM EST

CME Group Inc. Declares Quarterly Dividend

CHICAGO, Dec. 7, 2011 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today declared a fourth-quarter dividend of $1.40 per share, payable December 29, 2011, to shareholders of record December 19, 2011.

A simple check of Yahoo Finance shows that the current number of CME shares outstanding is 66,390,000. Therefore, at $1.40/share, the CME has just declared a $93,000,000 dividend to its shareholders. However, still nothing, zilch, nada for the customers of MFing Global that the CME had vowed to protect. Bastards.

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  150 Comments

Katie Rose
Dec 8, 2011 - 6:31am

@ Senseosensei

The student loan article you posted was extraordinary.

It never occurred to me that by loading Middle Class students down with huge student loans, we were depriving our nation of future entrepreneurs and sending the best of the middle class into corporate meat grinders rather than into their own innovative start-ups. Of course they will have to "play it safe", find a job, and have their talent used by an existing corporation.

The University I graduated from was an Agricultural College. If you wanted to be a Veterinarian or a farmer, it was fabulous. Yet most of us just wanted to get far away from our parents and did not participate in these classes.

I was stunned to read an article recently that said that 44% of the recent graduates of my college indicated that the education they received was not worth the money they had paid. 44% felt ripped off!!

When I attended college, tuition was $540 a Semester. I remember because I worked my way through school and $540 was a lot of money and difficult to save. Today it is $5500 a semester. And this is an AG school supported by tax payers, and instate tuition.

I encourage you to read the article Senseosensei posted. It touched me deeply.

https://solari.com/articles/student_loans/

Brotha Bob
Dec 8, 2011 - 6:52am
Boardwalk
Dec 8, 2011 - 7:31am

Gold Lease Rates

No discussion of gold lease rates is complete without reading Victor the Cleaner.

https://victorthecleaner.wordpress.com/

EDIT: Changed the link to "home" so you see all of his work. Short list, you pick and choose.

clueless one
Dec 8, 2011 - 7:41am

RE: ZH Hypothecation post

Guys..

I feel for any of you that have investment accounts, trading accounts, or money in the system period...if you survive on income from said accounts, I REALLY feel for you. I truly do. Hell, I feel for me and my family as my 401k is tied to all of this and I cannot afford to quit my job. I've written off, out of my mind anyway, the $90k I have sitting in there. It's all up in the air now. Allocate money each pay period to a little of this, and a little of that. Priorities...period. Water system, Food, Protection and PMs...while maintaining a normal life with bills and responsibilities. It ain't easy, but I feel better each week I accomplish something.

I stopped contributing to both the "company led plan" and the second plan...held by, yep, JPMorgan, some time ago.

If you're new here, and an average Joe of very modest to modest means, and are not into tangible, hard assets...and still playing or trading the markets, or with any money in the system...this is a warning shot over the bow that CANNOT go unnoticed, nor be shrugged off as some other ZH "doom and gloom" post with big words the common man can't understand.

https://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-...

It clearly, CLEARLY states that they will not be held accountable for any losses. Period.

I called my mom the other day, told her to put aside the fact that she thinks my dad and I are tinfoil hat wearing goofballs, and told her to contact her retirement guy and get a check made out NOW. I told her what to do with it, as I don't think she'll take the time to research things as I have.

I'm glad she took me seriously, finally. It felt good to hear the seriousness in her response.

I'm headed to the local Township office today, first day I've had a chance, to see about getting something setup to get the people here to become at least somewhat aware of what they may face in the near future. I've thought long and hard on how to present it, without causing a panic, but also without coming off like some idiot who's selling them a bill of goods. So to speak. Best case, I hope to put up the cash for a mass mailing to all citizens with the help of the Township, via bulk prices. That's not all I've thought about, but the 1st and best way to reach local folks. Hopeful there are many nearby that understand and already have moved into action. I can only hope.

Bottom line, I can no longer sit on my ass and try to save myself without stepping up and trying to help all that I can. Sure, I've tried to talk to coworkers, friends and such...maybe 1 in 30 actually listened...about par for the course. This is what I "thought" I could do...but this morning, I woke up thinking, "why the hell can I not do more?" ...then I read the ZH post above...

Let's just say I now feel like I'm sittin in the middle of a campfire...

Wish me luck.

Peace...

C1

clueless one
Dec 8, 2011 - 7:51am

btw...

thanks TF/Mods and all who contribute here for the betterment of us all. Forgot to mention that in my latest post.

you guys, well, all of us, are special...no matter what anyone says to the contrary.

be well...hang tough.

C1

jacey
Dec 8, 2011 - 8:53am

c1

h/t and admiration to you for wanting to help as many as you can

Remember, though...there will be many, many, many......many who will do nothing no matter what you say or do. I have friends I've known for years still say 'surely, they won't let it get that bad' They, meaning the government. lol, yeah sure. I've sent articles, emails trying to 'convince' people to do something. Some have, most haven't. I haven't given up though...I always think there might be a little hope...I add a little extra to my food/water stash though...because I know some of those friends may end up at my house when it does hit the fan.

fwiw...spend your money and time preparing yourself, your family and friends. Spread the word through conversation, make phone calls, send emails, have a community meeting...but spend your money on your own preps...not trying to convince those who are truly clueless to get a clue. Human nature is such that most will wait to do something only after a crisis. Take a look at the aftermath of a hurricane or really bad storm. When people knew it was coming..and still did nothing. The only difference between a storm and now...is that now is bigger and the storm will be worse. But, imo...most won't get it in time.

Good luck to you...your family & community are lucky to have you close.

--------------------------------------

Turd...GET SOME REST! lol...EvG article - excellent!


Dec 8, 2011 - 8:56am

Draghi yakking live still

https://www.zerohedge.com/news/ecbs-mario-draghi-press-conference-live-w...

confidence, budget, implementation of these legislative matters is a process ... blah blah blah

ECB neither eternal nor blah blah blah, no signs of deflation, reactivate the channels of monetary policy


Dec 8, 2011 - 9:00am

charts

Got to admit, they are a fine looking pair for once.

San Diego Gold Bug
Dec 8, 2011 - 9:05am

Great article TF-just sent it to all of my friends

Egon article is one of the best I have read in a long time. I just sent it too all of my sheeple friends in hopes of saving them from financial ruin. I also sent this website too my metal friends: Comparesilverprices.com Someone on this site mentioned it a few weeks ago and I have been checking it ever since. It has ssaved me some money on my recent silver orders. It has the live prices of most of the large silver dealers in the country. Thanks to the TFM reader who posted it a few weeks ago!

Silver bars-Rack em, pack em, and stack em

StychoKiller RedRover
Dec 8, 2011 - 9:15am

Hmm:  "You'll take these

Hmm: "You'll take these worthless wheelbarrows full of FRN's and like it!"

Your notion seems highly plausible to me. :>(

Mudsharkbytes
Dec 8, 2011 - 9:18am

Fine looking charts?

Not so sure about that.

Look again.

So typical - silver touches $33 and then BAM!

And what's with the USD index now?

Bizarre.


Dec 8, 2011 - 9:18am

Damn - Draghi killed that rally

Eur toast, USD up, metals down - one press conference - priceless.


Dec 8, 2011 - 9:20am

Ha - crossed in cyber space

Yes - that was short lived. But the bull in me sees higher highs - they are just posturing.

s2man
Dec 8, 2011 - 9:21am

A well written article,

A well written article, though most of us already knew that; Cut off the finger now, or wait for the entire arm to become infected with gangrene. I am not familiar with Egon's writing, either. Though I hang out at ZH every day...

On the gold price crashing (again) - I know some are investing and wish to see the price go up, and I don't want to curse you. But as one still stacking, I would appreciate another dip to facilitate grabbing more physical with my dollar-cost-averaging purchase each payday. And I hope it stays low into January, when I make the last withdrawal from my 401K. That money goes into prep's, with 10% of that allocated to PM's.

stoneeh
Dec 8, 2011 - 9:24am

Loool, making use of Euro

Loool, making use of Euro weakness due to the ECB interest rate cut to smash the metals and manipulate the USD higher. They're doing it so obvious, it's unbelieveable.

Not that I'd care much, take silver to 20$ and I buy lots more.

clueless one
Dec 8, 2011 - 9:35am

Drahgi..

what I pulled from this, is that we...those of us that "get it" just got a little more time to get things in order.

I, for one, thank him.


Dec 8, 2011 - 9:37am

Clueless, re Draghi

Yes, I think the thrust of what he said was "we can and we will keep this monster afloat as long as possible".


Dec 8, 2011 - 9:39am

And the media's take:

Draghi Says ECB to Lend Banks More Money to Avert Credit
Crunch

December 08, 2011, 9:17 AM EST

Dec. 8 (Bloomberg) -- European Central Bank President Mario Draghi coupled an interest rate cut with a pledge to offer banks unlimited cash for three years as officials try to head off a looming recession and leaders meet in Brussels to hammer out a solution to the debt crisis.

The Frankfurt-based ECB cut its benchmark rate by a quarter percentage point to 1 percent, matching a record low. It introduced new three-year loans for banks and loosened the collateral criteria it imposes when lending by making credit claims such as bank loans eligible and reducing the rating threshold on asset-backed securities.

The measures “should ensure enhanced access of the banking sector to liquidity,” Draghi told reporters in Frankfurt today after chairing a meeting of the ECB’s Governing Council....


https://www.businessweek.com/news/2011-12-08/draghi-says-ecb-to-lend-ban...

BostonMatrix
Dec 8, 2011 - 9:44am

Brutal

I had a feeling something like this may happen today so closed my positions before the COMEX opened.

Sometimes you gotta just trust yr gut. I'm not sure whether to buy back now or just watch for the day.

Also, analysts seem to be anticipating BoE revving up the printing presses early 2012;

https://www.bloomberg.com/news/2011-12-08/king-hangs-on-sidelines-as-boe...

beach_bum
Dec 8, 2011 - 9:45am

Self Clearing Brokerages

Anyone have any thoughts on the viability of staying with one of the brokerages that do their own clearing? I do plan on getting certs where I can for some miners.

BostonMatrix
Dec 8, 2011 - 9:49am

Private Press

https://online.wsj.com/article/SB100014240529702034133045770844838744225...

How does a country get itself in the situation where its currency is printed by a foreign private company? It is absurd.

Seeing that sheet of uncut marks really hammers home the worthlessness of paper. I wonder what happens to the print proofs? I might retrain as a press operator :o)

Kumanari
Dec 8, 2011 - 9:53am

When running with bulls one

When running with bulls one must watch out for shit.

Great piece Turd. Balanced thoughtful insightful.

Welcome back Scottj.

Dr G
Dec 8, 2011 - 9:56am

Turd nailed the sell-off.

Turd nailed the sell-off. Good job once again! Somebody on ZH mentioned two days ago that the lease rates has been negative for a while, but I was unsure of how that would affect spot. I should have looked for prior patterns!

Mudsharkbytes
Dec 8, 2011 - 9:59am

This morning…

… when I saw silver had breached $33 I said to myself, "It'll be $31 something shortly".

I hate being right.

Dr G
Dec 8, 2011 - 10:03am

LOL. So true. 33.07. Took a

LOL. So true. 33.07. Took a quick shower. 31.86. Amazing. Same applies to 1750 gold. Buyers of size lurk at 1705 and 31.

Shill
Dec 8, 2011 - 10:05am

Draghi pledges unlimited cash

Draghi pledges unlimited cash to the banks for 3 years. Standby for the big rush.

https://www.bloomberg.com/news/2011-12-08/draghi-says-ecb-to-lend-banks-...

Draghi: Hey buddy, sell all your stocks now, i'm about to tank the market.


Buddy: Ok

20mins later.

Draghi: Hey, me again, buy now, i'm about to make the markets rally again


Buddy: Cool, thanks, see you in Tahiti next month pal!

RedRover
Dec 8, 2011 - 10:09am

All I keep hearing: I'm not an accountant, I'm not an accountant

All I keep hearing is...@ this CFTC Hearing is.. 'I'm not an accountant, I'm not an accountant'...
11/29 transfer to JP Morgan? 'clawed back'... (that term, yikes).
This guy Peterson is awesome. Really speaks the consensus of the public.

https://www.c-span.org/Events/Fmr-Senator-Corzine-to-Testify-in-MF-Global-Investigation/10737426111-1/




Blue Sky
Dec 8, 2011 - 10:12am

A good article on PAGE

https://seekingalpha.com/article/312344-positioning-to-profit-from-the-p... On another note. As some may have gathered I have a position in Sandstorm a gold streamer. I always watch the level 11 at the beginning of the day. Luna who operates the Aurizona mine had just released a very favourable resource update which would be beneficial to SSL so the initial response just before opening was a 2 cent bid up for SSL. Then the smashdown occurred and a huge -2cent order was entered and when the market opened the sp went down on this fairly high volume but those who knew the value of Luna were ready to pick up those cheap shares and the sp shot up 6cents. This is not in anyway a recommendation to buy anything. It just goes to show how crazy things are right now and a reminder to all to step back, load up on your favs. if you have dry powder and GLTA.

Shill
Dec 8, 2011 - 10:14am
DaddyO
Dec 8, 2011 - 10:15am

The post is good, the comments better...

Wouldn't you agree most of the time?

I have stated publicly many times here and on other blogs, that is is time to become your own CB. I closed down all my trading accounts several years back and began to look for investment opportunities in my local market. I found many, mostly related to RE. Buying rehabbing and reselling foreclosures, writing private mortgages and putting fiat into real tangibles that could weather the financial storms that were appearing on the horizon and now seem to be right on top of us.

TF has been admonishing us to tread carefully, it is time to quit playing at a fool's game and take real action.

Invest in your own future and and that of your local community!!

You will be amazed at the real investment opportunities you find when you put your nose into the local markets. Mortgage brokers in your area are always looking to add to their book of private investors.

If you hold the mortgage on a piece of RE and the party quits paying, foreclosure is not a real problem and will move much quicker for the private investor, generally speaking.

I have also found that buying and selling other things can produce nice streams of income, Craigslist has proven to be a real fruitful avenue. This type of opportunity may seem daunting at first, however once you get a few deals under your belt things smooth out.

Remember your first time, you were a little nervous, but the happy ending made it all good, right?

DaddyO

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Key Economic Events Week of 5/20

5/20 7:00 pm ET CGP speech
5/21 10:00 ET Existing Home Sales
5/22 2:00 ET FOMC minutes
5/23 9:45 ET Markit PMIs
5/24 8:30 ET Durable Goods

Key Economic Events Week of 5/13

TWELVE Goon speeches through the week
5/14 8:30 ET Import Price Index
5/15 8:30 ET Retail Sales and Empire State Manu. Idx.
5/15 9:15 ET Cap. Ute. and Ind. Prod.
5/15 10:00 ET Business Inventories
5/16 10:00 ET Housing Starts and Philly Fed
5/17 10:00 ET Consumer Sentiment

Key Economic Events Week of 5/6

5/9 8:30 ET US Trade Deficit
5/9 8:30 ET Producer Price Index (PPI)
5/9 10:00 ET Wholesale Inventories
5/10 8:30 ET Consumer Price Index (CPI)

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