The Fed Disappoints

Tue, Dec 13, 2011 - 3:48pm

HAHAHAHAHA! That's a good one! As if having the Fed overtly printing money would solve all the worlds ills.

Once again the media incorrectly spins today's FOMC minutes as a postponement or even a (gasp!) cancelation of further quantitative easing. Buy the dollar! Your evil Sith masters are such responsible stewards of the economy that they are prepared stop the presses and enforce credit discipline upon a spoiled, bloated populace.

What a joke. Up goes the dollar and down goes nearly everything else. Please, I hope you are able to see through the fog of this nonsense. Again I ask you, from where is this year's $1.5T U.S. budget deficit getting its funding? From where did the U.S. government get their funding last year? From where will they get it next year?

Oh, whatever. I'm not going to go through all this stuff again. QE to infinity is the only possible option, whether or not Maria Headiromo and Bob Pissonme agree makes no difference, whatsoever.

Anyway, back to important matters. I trust that the continued weakness in the metals is not catching anyone by surprise. Nothing has changed from yesterday or last week and the selling continues. Gold looks almost certain to head toward its 200 day moving average near 1615 and silver looks to be headed to 30. The big question is:


Maybe. However, I've got a sneaky feeling that they won't. I suspect that we will see a capitulation in paper selling when gold doesn't stop at 1610 and silver doesn't stop at 30. I've maintained for some time now that paper gold was vulnerable to a drop to 1550 and that paper silver could drop toward 25. Why change that forecast now?

I just saw the OI numbers for yesterday and they are very interesting to say the least. The Feb11 contract only saw its OI drop 1500 contracts. For a drop in price, this is an extremely surprising number. First of all, this nearly confirms for me that much of the front-month trading is done by WOPR. There seem to be very few, human holders of these contracts. Also, it's clear that much of the decline yesterday was due to the initiation of new short positions by The Cartel. Again, with lease rates at -0.5%, this shouldn't surprise anyone. The BIG story is the rise in Dec11 open interest by a net of nearly 500 contracts, from 1545 to 2034! The question is: Who is jumping the queue and why? Is global demand for physical metal this month finally going to be sufficient to explode the Death Star? Is this why The Cartel has desperately suppressed price over 0 in the past 3 months? I sure can't wait to see what tomorrow's numbers are.

As I wrap up, gold is 1633 and silver is 30.65. I sincerely hope that the discussions here over the past week have helped prepare you, financially and mentally, for this brutal selloff. Keep the faith. The only thing truly declining in value is paper gold and silver. I say this with confidence because thephysical gold and silver you have in your possession is invaluable and thus insulated from the day-to-day shenanigans of the paper market.

I'd like to type more but the LTs are planning a birthday party tonight for Taylor Swift and I have to go bake a cake. I hope to have more commentary this evening. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Dec 13, 2011 - 3:54pm


Oh Yeah! My First First!

Bay of Pigs
Dec 13, 2011 - 3:56pm


said today that the 11 year Golden Bull market is dead. He said it is over.

LOL. Probably time to buy with both hands, as that man knows absolutely nothing about gold.

FWIW, he called me a retard when I called him on his "Euro gold will never see 500" a few years back.

The gold and silver Delta Bravos are coming out of the woodwork today.

Last Rebel
Dec 13, 2011 - 3:57pm

Could it be me?

Could it be me?

Stupid ATT slow connection foils me .

Dec 13, 2011 - 4:00pm

Christmas Sale!

I just love a good Christmas sale.

Bring it on scoundrels, crooks and thieves

Woody Mornings
Dec 13, 2011 - 4:01pm
Dec 13, 2011 - 4:02pm

Remember the $134 Billion Bonds confiscation on Swiss Boarder

Well the emergence of this story once again is fascinating as it connects many more dots many have been following since 2007...... It could also be one of the biggest confirmed filed lawsuit in history...
Economical Disaster
Dec 13, 2011 - 4:09pm

Euro may not survive this

Euro may not survive this Christmas


The European debt crisis is gathering pace. The debt of the Eurozone countries totals 89 percent of the GDP vs. the required 60 percent. The crisis has hit both secondary and primary economies. The public debt of Greece makes up 166 percent of the GDP, Portugal - 106 percent. The largest economies of the region also exceed the limit: Germany - 83 percent of the GDP, France - 87 percent, Spain - 67 percent of the GDP.

Experts continue to bury the euro. Jacques Attali, the former president of the European Bank for Reconstruction and Development, said that the euro would only last before Catholic Christmas. There is no more than a 50/50 chance for the euro to survive until this Christmas, the economist said.

Dec 13, 2011 - 4:12pm

Watching the Insane drives you...

...fuking nutz . . . . . doesn't it?

Yep watching these corrupt scumbag crooks each and every day sends One & All up the bloody wall. You can't make sense of human tossers obsessed with power, money and keeping their crumbling Empire, this Era of Debt/Credit afloat

The harder they bail, the more counterfeit wealth they siphon into their own pockets, the more pear-shaped the economy goes the bigger this shitshow of puss on society becomes


Hang in there Turd. Keep a hold of your marbles mate, at least until this most corrupt of regimes collapses in their own worthless wanking

Best thing to keep your sanity: Stop Paying Your Taxes (to this human crap)

Do something truly rock solid sane and bring these dysfunctional suckers to an end... fast

Bullets Beans Bullion
Dec 13, 2011 - 4:12pm


My $1660 purchase from yesterday now looks somewhat over valued, still I got dry powder to buy at $1620 which I did. Buy low sell high.

Dec 13, 2011 - 4:17pm

Good Calls big T

Lately you have been upping your average.

Practically seems like your forecast is baked in the cake.

realitybiter Bay of Pigs
Dec 13, 2011 - 4:18pm


Gartman has called more tops than anyone:


“. . .we shall urge the greatest of caution upon everyone, everywhere regarding gold. It is not just over-extended to the upside; it is hyper-extended. It is not just overbought; it is hyper-overbought. We cannot strongly enough urge everyone to avoid buying gold here and we shall go so far as to suggest that those who are long begin the process of quietly heading for the exits and to reduce their positions to the most minimal ‘insurance’ positions possible. Everyone should have perhaps 5% of their liquid assets in gold, but at this point anything beyond that level is excessive.”

–Dennis Gartman, September 29 2010

Gold was 1350 at that time.....

I don't know why he gets so much airtime.

Also, he has always been very emphatic that you had to own your gold in euros. Ok. The Euro was just breaking down to new 130. It was par with the dollar in 2000.....It was 130 in 2005...if you take a big step back it really doesn't make much sense for an American to hedge their gold with euros....If anything, we are getting a MASSIVE discount because of the euro noise. What happens when they carve all the cancer out of the euro? The fact is none of these fiat currencies are worth hedging against another.

I'm just not convinced that Gartman is worth much paying attention to.

Dec 13, 2011 - 4:18pm

Wanted to share this from Turk on KWN

Bob Pissonme... ahahhahahahahha

I agree Turd, the FED and everyone else in the world that's got a printing press is going to run the hell out of it soon.

I read an article on KWN and I would like to share a excerpt of it with you Turd and fellow Turdites as I think it hits the nail on the head:

"When asked about the implications for gold and silver, Turk stated, “I see the outcome of this mess as inflationary because central banks have only one answer to everything, and that is print, print and then print some more. But even if I am wrong and some central bank keep its currency from inflating and actually deflates, you will still be better off owning gold and silver."

"Their price may go down, but the price of everything else would go down even more, so you would still be better off owning the precious metals. And even more importantly, physical gold and silver do not have a counterparty risk, so you never need to worry about the precious metals defaulting on some promise."

The second paragraph line I italicized to draw attention to it as it really stuck out to me. Darn good point, with Gold and Silver, you are safe either way!

Dec 13, 2011 - 4:21pm

Near the start of the year, I

Near the start of the year, I pegged the chances of a COMEX collapse by the end of the year at 75%. In a way, with the MF Global boondoggle, I was already correct, though the evidence of COMEX collapse is obscured by that same action.

Regardless, it will be an interesting new year.

Dec 13, 2011 - 4:27pm
Dr G
Dec 13, 2011 - 4:33pm

A bit of advice: buy, buy,

A bit of advice: buy, buy, buy. Santa says to never chase gold into strength. Guess what? That means buy now. Buy, buy, buy.

I was PRAYING that I would see Krugs below $1700 in the near future. Well whadda ya know? Picked some up for $1660 today. I think I can get more for a bit cheaper later in the week.

Buy, buy, buy.

Prize Fighter
Dec 13, 2011 - 4:37pm

I'm picking up what they're

I'm picking up what they're throwing down. Just bought a bit of both.

Dec 13, 2011 - 4:37pm

What is WOPR?

I spent 5 minutes trying to look it up and its not in turdisms ...



Dec 13, 2011 - 4:38pm


Though I agree with the Turd that physical is most valuable I am not naive.

We live in a lawless land. They will demonize metal 'profiteers' and slap a 90% tax on all gains. They do not need to confiscate. And the penalty for not paying the tax will be major jail time. Anyone following the course of legislation in the Defense Authorization bill and the Patriot Act knows this is a real and easy possibility. Anyone who has been to an airport lately knows how many new goons they are hiring each month to act as implementers.

Sure they'll be a black market if this happens. But it will not be without real risk. For anyone counting on physical to bail them out, it will if you move to another country and take your metal with you. Jim Willie I assume has his off shore and he lives in Costa Rica. Those kind really take action. But for the rest it will remain a struggle thruout. There is no easy way out. No easy safety. Even Faber refers to gold as a store of value held outside the U.S.

tread_w_care CrazyCooter
Dec 13, 2011 - 4:40pm


euphemism used here to refer to the computer systems leveraged by the brokerage houses to do their High Frequency cheating and stealing

aurum argentum
Dec 13, 2011 - 4:40pm
Dec 13, 2011 - 4:43pm

What is WOPR

W.O.P.R. is an auto-trading program.

W.O.P.R. Software & Auto-trading Program

(Proprietary auto-trading system)

Standing for working order protocol reward this relays the entire systems philosophy.

You will learn to use the software to identify trends and then allow the program to work your trade and provide automated trade management.

The proprietary software uses a strict protocol for trade entry while protecting the trade with a stop loss as a part of an algorithm providing a “floating stop” that can adjust to current price action and keep you in trades longer.

This protection can reward a trader by removing some of the emotion involved with trading.

tune in, turn on, and relax

CrazyCooter tread_w_care
Dec 13, 2011 - 4:43pm

Thanks ...

I suspected this, but I couldn't be sure it wasn't another acronym!



Perfidious Albion
Dec 13, 2011 - 4:49pm

Down periscope

A tune to bake by..

AFROCUBISM - Al vaiven de mi carreta [Live Television]

Dec 13, 2011 - 4:54pm

tread_w_care is correct...

tread_w_care is correct... Turd is referring to the movie WarGames.

That scene from War Games
Dec 13, 2011 - 4:55pm

that the fed will do

that the fed will do nothing by todays announcement it utter horse manure

they have never stopped anything . the feds game is to prop up, deceive and lie.

the fiat games keep on . and gold sold off .. lol .. 100 paper oz to one gold oz .. paper was sold . gold was not sold .

but many here play this game .. crossing the river on the back of an alligator thinking it is a log

Dec 13, 2011 - 4:58pm

Silver holding up...

compared to gold. It actually fell LESS than gold today. Don't know if this means much, other than recently gold has risen higher so now it is falling more. Still I am going to try and take this as a good sign. Usually as big down moves get started silver is hit much more than gold. Perhaps this is a clue that we are near the end of the downward move?

Dec 13, 2011 - 5:02pm

Good thing I bought some physical on Friday - NOT!

As my idol Homer Simpson says, DOH!

Oh well . . .

Just going on down to the LCS to pick me up another GSE, or a 50 Peso if they have any . . .

Screw Bentrod!

Or, should I pick up some more Libertads to replace those accidently dropped into the gutter and lost forever?

Decisions, decisions?

Maybe I should break out the cookie recipe and make some delicious treats for the little ones . . .?

Dec 13, 2011 - 5:03pm

We'll all be OK...

as long as we don't excessively drink our own koolaid.

Video unavailable
Dec 13, 2011 - 5:12pm

How fine a line?

@bbacq - Having trouble telling the difference between "drinking your own Kool-Aid" and "to thine own self be true". Either you believe it or not, right???

PS - And what about "in for a penny, in for a pound", especially when it comes to PMs.

Jasper CauseChange
Dec 13, 2011 - 5:13pm

Re: Cause Change $134 Billion

Believe whatever you want to believe.

Fulford is out there and was ruled against in a libel lawsuit in 2009. I don't think he knows what he is talking about. I don't give him much credibility.

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