Open, Weekend Thread

Fri, Jan 13, 2012 - 2:54pm

I am going to be away for the next 36 hours, or so. Sadly, the mother of my friend "Sweetness" passed away earlier this week following a long battle with cancer. She was only 70 years old. She should have had at least 20 more years of birthdays, baptisms and weddings. Instead, that evil, insidious disease claims her as another victim. Do me a favor. Relax and be happy this weekend. Take some time away from all the endless C/C/C/Fed/ECB nonsense. Sit back, count your true blessings and thank your Creator for the opportunity to live and love.

That said, here's a little C/C/C/Fed/ECB nonsense to help you pass the time.

Several Turdites have enquired whether or not I am familiar with a blogger named David Malone. Honestly, I had no idea who he was. Now that I've read some of his stuff, I'm going to be keep track of his site. You should probably do the same.

For our weekend discussion, let's concentrate on two of his recent posts. First up, this gem on MFing Global. At the risk of prejudicing your opinion, let me just say this: I agree 100% with this post. I wish I'd written it myself. Please take time to read and understand what David has written here.

Now, having read that, go back and read this from November of last year:

Hmmm. Yes, I'm sure that's going to end well. When just a small portion of BoA's CDS blow up, the counterparties (JPM, GS et al) will steal the personal deposits of millions of everyday Americans. Oh don't worry. I'm sure the Fed/U.S. govt will step in and honor the FDIC guarantees but, in the end, it will be just another $1T transferred to the TBTF banks, all "paid for" by the American taxpayer.

OK, onto article #2. This one has to do with the impending hostilities in the Persian Gulf. Unlike the first post, I can't say that I agree with 100% of what David writes here. However, it is certainly worth your time to consider.

Lastly, I would be remiss if I didn't discuss the selloff in the PMs today and their failure to breakout and head higher as I had hoped. I believe we got our answer in the OI numbers that were just released for yesterday. Recall that yesterday, gold soared to almost 1665 before it was savagely beaten back. If gold was not a horribly manipulated market, you would have expected total OI to decline or at least be stable. Longs would be closing contracts by selling but maybe a few new shorts would enter and the result would be an offset in the total OI. Instead, what did we see? Total OI increased by almost 4500 contracts! This, my friends, tells you all you need to know. Though The Cartel can see the writing on the wall and they are working to flatten their huge net short position, they are clearly not yet ready to let gold resume its decade-long bull market.

I'm happy to report, though, that the silver OI was almost exactly as I had hoped. Unchanged! In the past, a decline in gold would have caused JPM to pile on lots of fresh shorts and OI in silver would have increased, too. Instead, a flat OI tells me that the EE is nearing the end of the position flattening process they began back in May. Be patient, folks. Silver is about to explode! Could it go lower still before it rockets higher? Of course it could. In the end, however, silver is about to be free of the shackles of overwhelming EE suppression. I am extremely confident that silver is going to have a big, big year.

That's all for now. I'll have more for you on Sunday. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 13, 2012 - 3:01pm

Drugs, Sex and Rock'N'Roll

Markets close in an hour.

Jan 13, 2012 - 3:06pm


no 2000$ gold by jUne?

The Green Manalishi
Jan 13, 2012 - 3:09pm

Go Forth and Multiply

Go Forth and Multiply

Jan 13, 2012 - 3:11pm



Good links there Turd... though i will admit it makes me want a mixed drink!

Have a safe weekend every one.

...oh and 1st!

Jan 13, 2012 - 3:13pm
Jan 13, 2012 - 3:17pm

Get Real Gold

And now for a commercial break ..

Here's the latest offering of a Turdville TV commercial for "Real Gold" vs "Paper Gold". Done in the genre of the "Get a Mac" commercials.

In this harsh market - we have to have a bit of silliness to maintain sanity - so here goes.

"Get Real Gold" Episode 02
Be Prepared
Jan 13, 2012 - 3:30pm

Euro Trash

New Definition....

Jan 13, 2012 - 3:38pm

Maybe. who knows?

Jeez, I make a spur of the moment guess and now I'm stuck with it. I suppose it comes with the territory.

Jan 13, 2012 - 3:43pm

Maybe who knows:)

Youre not stuck with it, but ya gotta let me ask:) it's changes the outlook.

Jan 13, 2012 - 3:45pm

sounds like the speak

swEEt. soRRy to hear that mrF. aLL the best....below 30 could be up to make a wEEkend trip to the LCS.

Be Prepared
Jan 13, 2012 - 3:56pm

All you need to know about Romney

There is now a committee in Massachusetts to study GPS tracking for firearms.

I do like how Jim Wallace, Executive Director of the Gun Owners’ Action League, responded when told about the study:

It’s just another example of how wrong Massachusetts has it when it comes to gun laws. Twelve years ago we had 1.5 million guns owners. Today that’s down to about 230 thousand. Gun crime has risen 200 percent. What else do you need to know?”
clueless one
Jan 13, 2012 - 3:57pm

wow... give Turd a frickin break, will ya??

the guy does this stuff because he gives a shit. wtf? 

sorry...but there have been A LOT of johnny-come-lately's that have really had some huge balls and egos...

bottom line, TF is a great guy...but he's still just a guy trying to navigate the mess that is. He throws ideas out there...stuff to make you think, stuff for reference. It's up to all of us as individuals to take it, and figure out how it applies to us. When somebody busts his irritates me to no end. After all, the guy doesn't have to do anyof this stuff. He's got a family, he's got his priorities... but still, he's here, trying to help out the little guy. you know, us!

I see where Shill was coming from. It's gettin thick around here. What a shame. 


Mr. F, thanks for all your efforts, they are greatly appreciated on this end. I'm very sorry to hear about your's one of those things that makes us reflect and realize that time is precious. My condolences to you and yours. 

Jan 13, 2012 - 4:03pm

wow... give Turd a frickin break, will ya??

??? yes turd is great. geez/ the question is not to be taken so seriously. 2000$ gold or whatever. just a question no ball buston going on here.

Jan 13, 2012 - 4:14pm

Turd - BAC

As I read the first half of your article, I immediately thought about the Bank of America Derivatives. Great call Turd.

Hypothecation was an education, let alone re and hyper hypothecation. Now we have derivative holders above customer accounts or bond holders. This is certainly an education in the making.

Any thoughts besides the obvious about moving the derivatives in BAC. Perhaps as setup is in the making. i.e. the intent to bring down BAC, or a least the threat.

Obummer has certainly put it to the bankers over the past three years. Perhaps they plan to take him down as they did his D buddy Corzine.

Dr G
Jan 13, 2012 - 4:26pm

Yes, $2000 gold by June.

Yes, $2000 gold by June.

Turd, sage advice. Try to enjoy your weekend. Most of us are doing this stacking for our families, and our children's children, so the thought of what is really important is always in the back of our minds. Sometimes, we need a reminder to have it at the fore front of our minds as well. Thanks for the reminder.

Jan 13, 2012 - 4:27pm
Jan 13, 2012 - 4:27pm

Yes, $2000 gold by June.

I'll donate my right testicle to science if we get $2000 Gold by June Dr. G. Im very proud of it

Jan 13, 2012 - 4:28pm


Keeps getting younger and younger. So sorry for your friend and his family.

Thank you for the reading for the weekend. It's cold here so coffee and the sofa and good reading material are on the agenda!

Jan 13, 2012 - 4:30pm


Please express our condolences to Sweetness and the most strength in these horrible times for her.

70 is way too young.

Chicken Little
Jan 13, 2012 - 4:32pm

New Use For Silver

Silver ink for printing ink-jet style electric circuits. This could be big.

Deepest condolences Turd family and Sweetness.


Jan 13, 2012 - 4:50pm

Much obliged, Turd.....

have a peaceful weekend.

Jan 13, 2012 - 5:04pm

permanent portfolio

the permanent portfolio strikes again with 11% return in 2011. average annual return over last 40 years is 10% with it's biggest 1 year loss of only 4%. in 2011, LT treasury bonds and gold lead the way.

Jan 13, 2012 - 5:11pm

Looooooong weekend for the markets???

MLK holiday.......and once again those in power supress the rights and freedoms of ALL the people by continuing to steal their property, the fruits of their labor. Debt & Tyranny! The day of reckoning draws near.

Jan 13, 2012 - 5:14pm

Weekend reading.....

here is an excellent interview with Murray Rothbard.....circa 1990

From the article:

MNR: There is one good thing about Marx: he was not a Keynesian. I recently asked Yuri Maltsev, former Soviet economist, why is it that things have seem to have fallen apart so rapidly in the Soviet union in the last twenty years. He said in the last twenty years, the leaders of the Soviet Union have relaxed the money supply and have used inflation to solve short-term problems. That spelled doom for the system.

AEN: What about the prospects for liberty and a freer economy in this country?

MNR: Everything is getting worse, and very rapidly. Few favor central planning, but the battleground has shifted to interventionism. There are three areas of interventionism which are the big issues, now and in the future. First, prohibitionist and the attempt to eliminate all risk. If, for example, automobiles cause accidents, they should be eliminated. Second, egalitarianism and idea that victim groups should get special treatment for the next 2,000 years for previous oppression. Third, environmentalism or antihumanism. The implicit idea is that man is the lowest creature and every creature or inanimate thing has rights.

AEN: You have been critical of White's book on free banking.

MNR: The White book says the Scottish banking system was more successful than the English system. But he doesn't say one word about prices, inflation, or business cycles. His only statistic is that were fewer bank failures in Scotland than Britain. But what's so great about not having failures? An industry that doesn't have failures might be doing poorly. What if we applied this test to the Soviet Union, where no industries fail?

When you say one banking system is more successful than another, it seems the test should be less inflation and fewer business cycles. Yet this is never mentioned.

SRV - ES339
Jan 13, 2012 - 5:26pm


... to your friend and his family.

Jan 13, 2012 - 5:36pm

Close above 200 dma?

Looks like it was a squeaker!

Jan 13, 2012 - 5:37pm

HA! Dimon, Savior of the World

If JPMorgan's Dimon Were In Charge, Housing Would Be Fixed

And just how would Dimon fix Housing?

"Jamie Dimon has a plan to fix the U.S. housing market: lock mortgage lenders and regulators behind closed doors until they figure it out."

Great leadership. The solution of the problem is to solve the problem. Wonderful logic. I think these guys need a heaping dose of philosophy in order to learn some critical thinking skills.


vamoose1 Be Prepared
Jan 13, 2012 - 5:47pm

The Zeuro

quite a crew

murphy HeNateMe
Jan 13, 2012 - 5:55pm


Dimon's got it half right. Lock the mortgage lenders and the regulators behind close doors. The other half is to throw away the key. Then set fire to the building. Then blow the building up. then hope for an earthquake. Just kidding...... about throwing away the key.

Be Prepared
Jan 13, 2012 - 5:59pm

The Last Person I would want in the room..

would be Jamie "I'll steal the gold from your teeth" Dimon in any room. The problem is that he, and too many other of his ilk, are indeed let into these type of meetings so that they can plot on how best to screw the taxpayers and line their own pockets.

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