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 - 2:47am


jesus christ i hope youre right. There has to be atransvaluation of values, and it better be these kids, these little lord fauntleroys are ponying up about 35 a year in these ivy league colleges, or, more to the point , their psychopath father at goldman is, and they kicked GS in the fucking teeth and ran them off, in the Ivy league? Wow, I was in uni in the late 60s, maybe not too dissimilar, and when things started to boil in about 66, we would get pissed (we wore a jacket and tie to university!!!) in our fraternity house and go out n mock the demonstrators.

Two years later i was in striped pants and a nehru jacket that had an uncomfortablre resemblance to a girls dress, with hair down to my ass, and we had joined them. 24 months. Thats all it took. They were on the side of right, and it crystallized , but privileged little ivy league kids? Running Goldman sachs off campus? Fuck is that great or what???

Dec 14, 2011 - 2:43am


I was only referring to PAPER CURRENCIES. Gold/Silver are not currency, they are money. There is a difference.

Dec 14, 2011 - 2:28am


the UK == EE

they now isolated themselves further and the city will now pick at whats left of the english people

Dec 14, 2011 - 2:23am

one who abides


Shaz YES laws work without "FORCED" Taxation

Submitted by silverbonz on December 13, 2011 - 8:39pm. funny i keep getting called a libertarian at work, rather just think of myself as a good citizen i suppose one who abides when i was younger i fancied myself anarchist also thought i would not make it to my 21st b-day with us and russia always ready to push that red button thanks for the links i will check em out P
Dec 14, 2011 - 2:21am


Are you spun out? Last I heard the UK is on the Pound, not the Euro! If I was them I would tell the Euro to pound sand also!!!

Maybe I am missing something and if that is true please correct me?

Dec 14, 2011 - 2:17am

@ TheObsoleteMan

I just don't understand this dance.

Available partners are the Euro (bald, toothless, 350 lbs, & 4'8)

The US Dollar (Crackwhore)

OR- .9999 FINE Canadian Maples & ASE. OK, so maybe you don't like the looks of the queen or the length of Lady Liberty's dress, but HOW is it even a contest?

LouieSanta's Elf
Dec 14, 2011 - 2:10am

@ Santa's Elf- Enforceable Confiscation

Will give new meaning to the phrase, "Brother, can you spare a dime."

Grey/black markets are already here. How many of us pay our lawn care professional in cash? Ever had a contractor tell you, "OK the price is $11,000 if you pay cash or $17,000 if you write me a check." Ever make a purchase at a convenience store and notice that the person behind the counter figures the sale on a calculator, them makes change out of the open cash register drawer? Do you think that all of the illegal aliens in the US are being paid by check? Think the employers are withholding SS taxes? When they spend those earnings at an ethnic grocery store or flea market, do you think the merchants are paying state sales tax?

Correct- the report from Bosnia was that PMs were not used much. Guns and ammo as well as alcohol were the items to have.

Where to go if the US goes Mad Max is a good question. Can anyone name a country where they produce food, they have oil, beautiful beaches, awesome climate, and have pretty good doctors/hospitals?

Dec 14, 2011 - 1:48am


PM Cameron has effectively announced to the world that the UK is not going to play any longer, and has taken it's ball and gone home. This is a MAJOR development, symbolically as well. This action truly marks the beginning of the end for the EU, at least as it was SUPPOSED to be. The Euro currency took a HUGE hit just today alone vs the US$, look at any currency chart, it is a swan dive! As the only real alternative currency to the US$, this development significantly strengthened the greenback, and we all know what happens to commodities when the dollar strengthens. This is why the metals are on the mat, pure and simple. With all of our political/budget problems, it is the ONLY reason why the dollar is catching a wave. Compared to that bald, toothless, 350 lbs, 4'8 girl in the room {the euro} the dollar is the best looking girl at the party right now {even if she looks like a crackwhore herself!}. This will pass in time, as the US is about to hit a wall, and something will have to give. Either there is a MASSIVE bailout of europe, or we go into a deflationary death spiral SOON, as simple as that. Right now, we need something to divert our attention away from all of this chaos. How about a BIG war. Not a little one, like Afghanistan, or even Iraq. We need WW3. The US,UK, India, Japan, South Korea and {get this one} VIETNAM, against China, Pakistan and North Korea. Once that gets going, throw in Israel and Iran. Could Iran count on as many allies as it could in the past, with all of the arab countries in complete disarray? Why would they give a shit about Shiites anyway? Got to hand it to the western intelligence agencies, they conducted these revolutionary operations about as good as it gets. It's all falling into view now. Once the tactical nukes get used {and they will for sure} there will be no stopping the theater nukes from being used. There goes half to 2/3 rds of the worlds population right there. Kind of solves ALLOT of their problems doesn't it? The deflation is done for them.

Dec 14, 2011 - 1:43am

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