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 14, 2011 - 7:07am

Man I feel I shit

Silver has broken down....29.88. 24 dollars here we come.

Dec 14, 2011 - 6:26am

great thread

And great posts everyone, thanks. Especially you vamoose1, your anecdotes are priceless. Like your goodself I've had the good fortune to have been in Ag since 6 and it seems like every time the violence increases, I get less worried.

pforth - that post was dead on, good vent.

And stratagema, strongsidejedi, dr durden et al. - ABSOLUTELY.

​When a ship comes into port, it must line up with the dock.

Dec 14, 2011 - 6:22am

Time for?

It's time for the 6 am beat down, what a surprise.

The Green Manalishifoxenburg
Dec 14, 2011 - 4:57am
Dec 14, 2011 - 3:59am

JP Morgue

What a bunch of pussies at JP Morgue. They can't even get gold under $1,600 or silver under $30 even in the overnight market. Bring it on, I'm waiting for your big game without fear. Remember me? I was the newbie in 2008 that couldn't find an ounce of gold to purchase anywhere near the $875 paper price. There is no doubt in my mind that the BRIC nations are salivating at the thought of a $1,480 gold price.

Dec 14, 2011 - 3:47am

Obsolete Man

I don't wish to be argumentative but the UK does not in any way use Euros.

Dec 14, 2011 - 3:44am


thanks for the reply

maybe ive just been conditioned

to think that all hell will break loose

if we dont pay em

werkin on finding that red pill in my medicine cabinet i am

still got alot to learn

ending up on a irs gestapo list right now might put me in that indefinite detention camp that is coming down the pike

so i dunno

but er cigs good?

i would prefer

sumthin more natural

and not in a package with additives

just a plain baggie



Dec 14, 2011 - 3:37am

My theory on the miners

The banksters have been going hammer and tongs by naked short selling on shares of miners.

My view is that they have not done this without prior thought.

With the TBTF banksters behind these sales, I would infer that when the collapse comes or thereabouts, the Governments concerned will nationalize all gold, silver, platinum and rare earth mines.

And not pay a darn cent out on these shares.

In my opinion it's safer to have the physical in our hands rather than a share of it in some deep hole which can get appropriated by the Government.

If you can trust the Government then you may believe in Santa Claus too.

Dec 14, 2011 - 3:36am


"The obvious is obviously wrong". Joe Granville New york 1979 .

Joe got white hot, he owned the market from maybe 78 to liftoff in 82, and he came to Toronto and gave a lecture in the chi chi Imperial Room of the Royal York hotel, i swear 2000 brokers attended.Nor was it cheap, but this guy was zoning, it was scary he was so right. Mind you 3 years later he was playing piano in a strip joint in Fort lauderdale.

We sat expectantly for the great man, he hopped on stage , we got our notebooks out for the delivered wisdom, i was pretty young, pretty excited, this guy had made us money.

he dropped his pants immediately that he reached the dais. . wtf? Was he loaded, well, he was known to lift a few.

he was wearing these boxer shorts, covered in stock symbols, there is EK, thats Eastman kodak he informed us (we knew) , MMM triple , well thats Minnesota etc, N was International nickel, so we took a guided tour of his shorts, predominately dow stocks, Canadians, not the fastest, but it was kinda funny, he was tickling the ivories not long after sadly .

Then he pointed at his midsection, and it said,, HT, not a Dow stock, but one hell of a company, and he pointed and said, thats Hughes Tool. Indeed it was, he brought the house down still like him though, christ he was fun.And he was gracious enough not to show us the financials, thanks joe.

Leading me to 30 dollar silver. There are probably a wall of stops at 29.95, but its curiously stubborn.

That Kunta Kinte Blythe masters better get it and break it rather soon, or her tampon has competition.

hence the title of my post, the break is kinda obvious, and mybea she will, but thwarted shorts kick, and they kick violently, we will know by friday, or everyone will wonder wtf we are doing at 34. 50. on espere.

Dec 14, 2011 - 2:50am


Actually, the UK uses both the pound note AND the euro. They never went all in. Keeping the pound will buy them some time, but only a little. I never understood why the UK would ever want to join the EU, as the people, culture and traditions are completely different from the core zone of Europe. Funny what roughly 21 miles of water can do!

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