Sack of Nonsense Redux

Thu, Apr 12, 2012 - 4:02pm

It was with increasing incredulity that I file this update today.

I sit here in wonderment, considering how and why all of the current MOPE and SPIN can be so easily digested. Am I (are you) one of the few able to see this crap for what it is? Seriously, how is this not reported upon and/or credibly discussed? One day, the Fed rolls out Fisher or KosherDakota to talk down QE expectations and talk up the dollar. As soon as this causes a breakdown in the nearly perfect S&P advance since November, The Bernank or Evans or Yellen gets trotted out to "reassure" markets that ZIRP will continue indefinitely and/or that QE3 may be just around the corner.

Trader Dan summarized this quite well in a short post from earlier today. Below is the chart I lifted from Dan's site which pretty well explains everything.


So, now there's talk again today of "Sterilized QE". Unfreakingbelievable. Santa chimed in first earlier today:

My Dear Extended Family,
The stock market takes a one day multi-hundred point drop and we hear a new round of sterilized QE is on the table from a Fed governor.
What kind of fools do they take us to be?
QE sterilized is a world class oxymoron similar to Jumbo Shrimp and the Great War.
Consider what will happen here and in Euroland as all of this foolishness hits the fan. The answer is good old debt monetization.
QE to infinity is as sure as death and taxes.

Many of you will recall that yours truly was already pushed to the edge of madness by this concept about a month ago. You can review the entire post by clicking the link but I'll reprint below the primary point.


OK, onto the news and there's really only one thing that I wish to discuss. It's this:

Now, I'm going to warn you. If you are easily offended and do not like the use of profanity, please look away from your screen for a moment.


For the sake of clarity, I'm going to rely again upon my old friend, Mr. Black Dot Chronology:

*All of this...all of the QE, all of the ZIRP, all of the's all about funding government debt.
*The only way The Great Ponzi can now be maintained is through low interest rates. Simple economic growth cannot and will not produce the tax revenue necessary to "grow our way out of it".
*If rates move higher, the economy will slow even further, exacerbating this problem.
*More importantly, if rates move higher, the interest on the accumulated debt will take up an accelerating portion of the U.S. federal budget.
*QE1 and QE2 was the method through which The Fed purchased U.S. bonds outright, thereby creating an artificial demand for U.S. government paper and keeping rates low.
*ZIRP and Operation Twist is the method through which the Fed continues to suppress long-term rates. It's been estimated that the Fed is currently soaking up as much as 90% of the 10-30 year auctions.
*ZIRP and Operation Twist require regular, "traditional" demand for short-term U.S. debt. This demand is managed through the creation of uncertainty regarding Europe, Iran, etc.
So, now, here we sit. Three years of this centrally-planned fiasco and The Fed is pressed back against the wall again. Their Primary Dealers have balance sheets that are completely chock-full of treasuries and a PD cannot raise funds to continue buying even more without a) selling some of their current holdings, OR, b) getting some fresh, new cash from The Fed to use. Option "A" is off the table because selling holdings will push down price and, as you know, lower prices means higher rates and, as you know, higher rates cannot be allowed. But Option "B" doesn't look too good, either. Calling something overt Quantitative Easing isn't going to fly in an election year and, additionally, much time and energy has been spent convincing The Sheep that the U.S. banks are completely healthy and recovered. Giving them billions of dollars to spend on treasuries might dispel that myth.

So, The Fed rolls out this idea yesterday. In this new program, The Fed is going to buy bonds directly from the PDs. In return, the PDs will get "digital credits"...CASH. The PDs will then use this CASH to buy more U.S. government bonds and we are supposed to believe that because these are "digital credits" and not CASH, none of this NEWLY-CREATED MONEY will ever make it into the system. WHAT?!?!?!?!?!?!?!? Let me see if I've got this straight. The PDs will take this new money and loan it to the U.S. government which will, in turn, use the funds to cover their deficit spending on items like transfer payments, social programs and military hardware. This NEW MONEY will move directly into the U.S. economy, further devaluing the U.S. dollar and create even more cost-push inflation. Period. End of story. Done deal.

But that's not what The Wall Street Journal and CNBS would have you believe. The Fed told them that this was a "sterile" process, a zero-sum event. The Fed will exchange "digital credits" for existing bonds and that's it. Move along, please. Nothing else to see here. Again, and I apologize for the profanity:


But don't just take my word for it. I've searched for other opinions on this. Let's try these two:

Anyway, it's quite clear that the lies, obfuscation, manipulation and MOPE will never, ever end. You must continue to buy and hold physical precious metal. It is your only financial protection and against the certain, impending disaster that your "leaders" have created.


There's not much more to say than what I said last month. QE is QE is money creation is currency debasement. The Fed can MOPE and SPIN all they want but it is what it is. Perhaps the knowledge of this impending program is what has awakened gold over the past five days. After the $58 drop last Tuesday (which led to a bit of Turd capitulation:, gold has rallied five consecutive days for a cumulative total of $67. Within that rally, we've seen at least two, massive surges which squeezed some shorts and popped price even further. Is this a sign that another QE announcement is actually coming later this month? Maybe, we'll see. For now, however, it is a sign that gold is continuing to firm and bottom here. We can't get overly excited until gold closes above 1685 and is once again back above its 200-day moving average...but...things are definitely looking better than they were last week. Tomorrow is a big day. To close the week over 1685 and the 200-day would be huge and would seem certain to trip the WOPRs back into "BUY" mode. Keep your fingers crossed.

Silver is looking better, too, of course. It's still too early to get carried away but, if price can be sustained above $32.50 and $32.60, the stage will be set for another assault on $33. Like gold, though today's move is fun, no one should get too carried away until silver is solidly back above $33.


Here are a couple of other charts I've been meaning to unload on you and today seems like as good a time as any. First, this doozy. This chart shows the total return of buying and holding gold over the past 11 years (the red line) and it also shows what your return would have been if you had been consistently able to buy on the Comex close, hold long until the next Comex open, go short at the Comex open and then cover and go long again at the next Comex close (the blue line). Quite a difference in return! And it goes to show you how horribly the Comex manipulates prices downward and the deleterious effect it has over time.


I lifted the next chart from a Forbes article I read this morning. Here's the link:

This chart shows the average monthly returns of gold since this current bull market began in 2000. Note that April and May are usually pretty good months.


And did anyone notice the Goldcore story yesterday about China's gold imports for February? 40 metric tonnes? Are you kidding me? And they only imported 3 tonnes in February of last year? Nah! Nothing to see here! I'm sure they're simply buying up the barbarous relic so that they can unload it on their gullible citizens at a profit. China couldn't possibly be executing a long-term plan to accumulate gold in order to use it to back the renminbi. And of course, a gold-backed renminbi would never be considered a possible reserve currency replacement after the demise of the dollar. Nah. No way. Again, nothing to see here. Move along, please.–-pboc-likely-buying-dip-again

Just a couple of other items. First, crude is rebounding after finding a solid floor near $101. The main level to watch now is $105. "What was support becomes resistance" is always going to be true and is the case again here in crude.


And The Pig has rather quietly reached another moment of significance. It once again finds itself perched upon the long-term trendline that has supported it since the advent of "Operation Twist" last summer. A breakdown here would turn the chart decidedly bearish so watch the next few days of action very closely.


Lastly, today is the 70th anniversary of the birth of The Turd's mother-in-law. To mark this blessed event, I thought I would include below a picture of her, in all her glory:


(Good thing she has such a fine sense of humor smiley)

That's all for today. Keep your fingers and toes crossed overnight. Tomorrow could be great fun. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


maryan777 · Apr 12, 2012 - 4:04pm



baby yoda · Apr 12, 2012 - 4:06pm


new registered for 3 minutes, already on the thurd list

Whiff Head · Apr 12, 2012 - 4:07pm

Turd!! I have zero idea why

Turd!! I have zero idea why people do this, new to the site, gotta say it..

BASEBALL 13 · Apr 12, 2012 - 4:07pm

Canada Wants Electronic Money

'cause its oh-so easy to use, "and completely anonymous" 

- truly a sign of the end of the current currency....just not an improvement!


Whiff Head · Apr 12, 2012 - 4:10pm

Turd! Why does it feel good

Turd! Why does it feel good to say this ? I am new to this site, no idea, but here it goes: TØØØØRD

ivars · Apr 12, 2012 - 4:11pm

Exactly my scenario-Biderman video

Surprise! I have been advocating this since last October. Gold will rise faster in EUR than USD (as EUR/USD drops already during 2012) but rise it will in both. So going long gold (silver) in Eur is as safe as it can be, and profitable especially as I earn/borrow euros.

Starts in May 2012 - as in my charts.

Let us see if this coincidence of opinions matter.

beardeus · Apr 12, 2012 - 4:17pm



Boggs · Apr 12, 2012 - 4:19pm


I have no idea what this means, can someone help me out?

Island Guy · Apr 12, 2012 - 4:24pm

China and India Gold Imports

Since Turd mentioned the large amount of physical gold being imported into China, this seems like a good time to raise a question that has been in the back of my mind. 

Andy's Army is trying to take down the Cartel by having traders use their earnings to take actual, physical possession of gold and silver. The thought is that this will put added pressure on the manipulators and eventually bring an end to their game.

However, for some time now both China and India have been taking possession of physical metal on a much vaster scale than anything Andy and his Army could ever hope to duplicate. In fact, as pointed out by Turd, simply massive amounts of gold and silver are being physically delivered to China and India. 

If that has not had the desired effect of ending the manipulation, then what hope do a small handful of traders have of being able to take down the cartel? Is Andy's Army simply an exercise in futility? 

· Apr 12, 2012 - 4:31pm

sorry to repost - interesting and everyone is being random

Sorry if the following is a bit long - I stumbled upon it and found it fascinating. They discovered that gold should be used at bullion value and that silver works as gold for the poor - the history was written in 1808, but I am not sure when the following discussion occurred. I have added the bold.

The debased and mutilated state of the gold coin had now become a theme of general complaint. The importation of light foreign coins from Great Britain and America was carried to an alarming extent by strangers who having no interest in tbe colony felt no scruples of conscience at a practice so repugnant to religion and morality while the clippers were industriously employed in diminishing those which were of standard weight. Urged by the magnitude of the evil the governor pressed the matter on the attention of the assembly and earnestly called for their assistance in suggesting some legislative measures proportioned to the exigency of the case The house readily took the subject into consideration and a law was enacted to punish all persons convicted of clipping counterfeiting or filing the current gold coin with death and the importers of all diminished or debased coin besides forfeiture of the coin imported were made liable to a penalty of five hundred pounds. This law was soon found to be inefficacious. Offences privately committed could not be punished for the want of legal evidence to convict the offenders. Prevention is better than remedy. The most certain and infallible way of keeping men honest is to make it their interest to be so. Had the gold coin been made current by weight the most incorrigible mutilator and importer would have been more effectually restrained from their irifamous practices than by their most sanguinary laws. The subject was most ably and perspicuously treated by the masterly pen of Mr Gibbes W Jordan the present valuable agent for the colony whose superior intelligence penetrates with facility into the most difficult and abstruse branches of human knowledge. From the soundest principles Mr Jordan deduced this just conclusion that the only effectual remedy for the existing evil was the establishment of a legal currency of the gold coins by weight at a rate proportioned to the real value of the bullion excluding the expense of coinage. With this principle partly in view Judge Gittens one of the committee appointed to take the June subject into consideration introduced a bill to remedy the inconvenience but by a strange inconsistency it was proposed to reduce the standard of all foreign gold coins in circulation about ten per cent below their real value. The pernicious tendency of the bill was clearly developed and ably combated by Mr Husbands and Doctor Hinds. They demonstrated by an irresistible chain of reasoning that the value of the mutilated coin would be increased in proportion to its mutilation hence the villain it was said would be encouraged in his fraudulent practices and rewarded for his nefarious industry that as no regulation nor change was made in the value of silver all coins of the latter metal would be sent out of the country in change for debased or depreciated gold to the great injury of the inferior classes of society who deprived of a convenient circulating medium would starve like Midas in the midst of gold.  The obvious tendency of the measure to enhance the price of every species of merchandise was elucidated with great force and perspicuity and the proposed innovation in the value of the coin it was insisted would operate like a two edged sword to the injury of both debtor and creditor. In all insular contracts the fair honest creditor would be the party injured as he would be compelled to receive money at a greater value than it was known to possess. On the other hand to the debtor who had remittances to make either to Europe or to America it would prove no less detrimental by enhancing the prices of our staple products and increasing the rate of exchange.... 

Bobbejaan Boggs · Apr 12, 2012 - 4:31pm

Re :- MOPE == I have no idea

MOPE == I have no idea what this means, can someone help me out?

Management Of Perception Economics



OR as Walt Disney's Kaa would chant .... "Trussst in ME ..... Jusssst in ME" devil

GoldMania3000 · Apr 12, 2012 - 4:41pm

Stop looking at the woman in the red dress!

Stop looking at the woman in the red dress! The current price of metals is the woman in the red dress. It doesn't represent reality. It represents the fiction of the matrix created to keep the crowd hypnotized and under the impression that all is fine in the world. It wants you pissed off, discouraged and feeling hopeless ignoring the reality that a portal has opened up in the time space continuum. An invitation to walk into the opportunity of the moment. They do not want you to see it. Who is your master? Blythe controlling your reality and emotions or the light? When you look around what do you see? Teachers, business men, lawyers, carpenters, the very minds of the people we were trying to save but until we do these people are still part of that system and that makes them our enemy. You have to understand most of these people are not ready to be unplugged, and many of them are so inert, so hopelessly dependent on the system, that they will fight to protect it. Are you listening to me Neil or were you looking at the woman in the red dress?

Bobbejaan · Apr 12, 2012 - 4:50pm

Everything You Wanted To Know About Sex, But Were Afraid To Ask

Oops! Did I say "Sex" .... I meant "Gold & Silver" (which MAY be the next best thing for a Stacker wink)

An OLDIE but Goodie FAQ/Article originally written in 2002, updated slightly for 2007, and still JUST as relevant & appropriate today :-

Refuting Myths about Gold (& Silver)
by Jason Hommel, October 28, 2002
(revised) June 1, 2007


Now refuting (47) false ideas about gold and precious metals that prevent people from investing in them. I have attempted to refute these false ideas to convince people to change their minds and behavior, so that they can protect their wealth by owning gold. False ideas about gold have been systematically put forth, as propaganda in America, through the schools & universities, newspapers & TV for generations. These false ideas are deeply rooted in the minds of many people, having become a part of popular world-view of American culture, which is why I call them myths. Only a few people see through the myths to recognize self-evident truths easily. Others need more help, which is the purpose of this list. Most people will only begin to wake up to reality when they see the price of gold move far higher than they thought possible, and they start struggling to understand what is going on.

I have been working on this list off and on since the spring of 1999, but never published until now, October 2002.

Anyone is welcome to copy, change, or distribute this list (especially gold dealers and gold newsletter writers). Please include this introduction to credit

1. I can't afford the risk of investing in gold:

Wrong. The real risk is in not having any gold. If you do not own gold, you have put 100% of your portfolio at risk to go to zero. Every investment is a risk. The value of cash can go to zero with runaway inflation. The value of stocks can go to zero after bankruptcy. The value of land can go nearly to zero in a depression when there are no buyers, and you have no ability to pay an assessed property tax, and the government puts the property up for auction to pay the tax.

In the fall of 2002, the United States was experiencing large trade deficits, which was putting very strong pressure on the dollar to devalue about 30%, or more. So there was a huge risk for holding cash or bonds. The flat out truth is that gold and silver are the very safest investments you can own.

2. U.S. Treasury Bonds are the safest investments in the world, my broker told me so:

Wrong. Your broker does not work for you; brokers work for investment banks. The banks are partners with the government, and the government has bonds to sell. Bonds have a risk that gold does not have. Bonds can drastically swing down to zero value in two different ways, either due to inflation or default. Gold represents "payment in full," cannot default, will never be inflated away, and will always be worth something substantial.

The U.S. has actually defaulted on its monetary obligations numerous times in history. In the revolutionary war, money to pay the soldiers was printed up that became worthless. In the civil war, greenbacks were printed up that became worthless. Then, the fed defaulted on the dollar in 1933 and later in 1971.

And even if U.S. Treasury Bonds are paid off by printing more paper money, who is to say that the paper dollar of the future will have any value at all?

U.S. Treasury Bonds are a con game that has two purposes. First, bonds enslave the government to the ones who issue the debt, because the borrower is the servant to the lender. Second, by offering bonds to the public, bond purchases help to siphon money away from people in the economy who would otherwise have no other option but to either save their money, or to invest directly into the economy which would allow them to prosper and accumulate wealth.

3. I'll buy options or futures contracts on gold when the time is right, not gold itself:

Don't be deceived. Options and futures contracts are not the same as gold, and are no substitute. They are contracts that will be defaulted on when gold makes the big move up. Futures contracts in platinum already defaulted in the year 2000 when there was a platinum shortage. Read these two of my essays for the reason why the default will happen: "Impending Gold Futures Default" at and "Controlling Gold with Paper" at

4. Why do I need gold if the dollar is still backed by gold?

The dollar is not backed by gold. Dollars could no longer be redeemed for gold within the U.S. in 1933. The overseas dollar defaulted on the promise to be redeemed in gold in 1971. Since then, there is absolutely NO gold backing the dollar whatsoever.

5. Ever since the U.S. won WWII, the dollar is supported by our military might, and oil, so we don't need gold to back the dollar:

Is that why was war with Iraq on the horizon in fall 2002? In point of fact, there is a huge supply and demand deficit in gold. But the most important point of all is that the U.S. can't make war on everyone in the world who buys gold or refuses to hold paper dollars.

6. The only reason gold has gone up in value is war in the Middle East.

Wrong. Gold has gone up for a long list of fundamental, long term, systemic reasons related to supply and demand factors. The media falsely claims that war, or short term political tensions, are the only reason gold would go up because most political worries are temporary. For the most part, political worries or rumors of war are distractions from the real risks, which are pervasive, systemic, and long-term.

7. The U.S. government still has gold; and that still backs the dollar at least somewhat, right?

Wrong, and this brings us to the fundamentals. If the 7700-tonne (248 Mil. oz.) U.S. gold reserve still exists (and some seriously doubt that it does), it would only provide an ounce of gold for about every $42,000 dollars that exist as M3, the most comprehensive measure of dollars available.

Source of M3:
Source of gold at the U.S. Mint:

This is not opinion here. Look up the numbers and do the math. (11.5 Trillion dollars in M3 / 261 million oz. = $44,061/oz.) If you really think that U.S. gold reserve is backing the dollar, then you must value gold at over $44,000 per ounce as a necessary logical consequence of what the numbers actually are. Stated another way, if gold is valued at $670/oz., less than 1% of U.S. dollars (as M3) are backed by gold, and that's IF the U.S. gold reserve actually exists.

Now the concept of "gold at $44,000/oz." doesn't mean that an ounce of gold will have the purchasing power that $44,000 does in the year 2002. It will probably be much less. One "myth" is that we tend to think of the dollar having a relatively stable value. By the time gold hits $44,000/oz., the value of the dollar will be much lower.

And I am also not saying that an ounce of gold in the future will have the same purchasing power it does today. Not all of the price change will be due to dollar devaluation. Gold will probably be much more valuable than it is today, and that is extremely difficult to quantify, and it certainly cannot be quantified in dollars which are not a stable unit to measure anything.

Further, I am not predicting gold will be $44,000/oz., and then stabilize at that price. By the time fraudulent dollar excesses are blown off between now and the time gold hits $44,000/oz, in all probability there will be further increases in the number of dollars printed, and/or added to the electronic banking system. For example, it will take some time for gold to move from $670/oz. to $44,000/oz. If M3 increases by a factor of 10 in that time, then the real target price becomes $440,000/oz.

But not all the U.S. gold is for sale. That hypothetical gold amount of U.S. Treasury gold above is simply used to point out the problem, and calculate that theoretical target price. Since that gold is not for sale, or if that gold does not exist at all, then the dollar will drop in value to a point where the dollar gold price is much higher than $44,000/oz. gold.

Additionally, if the vast majority of dollar holders decide, due to a sudden burst of rational thought, to abandon holding the dollar in favor of holding gold, the dollar price may well exceed a million dollars per ounce. And again, this doesn't mean an ounce of gold will have anything close to the value of a million dollars in 2007.

As an example of the difficulty in determining changing values, a silver quarter was once a day's wage. Suppose that in the future, a silver quarter will be worth a day's wage again, or over $100 (a day's wage) in 2007 money. But then again, due to mechanization and increased productivity, perhaps a day's wage in the future will not be one silver quarter, but perhaps 4-5 silver quarters. In that event, an ounce of silver in the future may well be worth about $100/oz., as measured in 2007 dollars, up from $13/oz.

8. Now that Gold and Silver are no longer backing the dollar, the metals are just like any other commodity, and are therefore no longer money:

That's absolutely false. Precious metals are unlike any other commodity. They are extremely scarce, are not destroyed by dividing into smaller units, can be melted together again, and don't rust away or spoil.

Most other commodities have less than one-year supply above ground, and are consumed or spoil in less than a year, and are unfit to use as money. Grain is an exception, as it can be stored for up to 20 years, and grain was also used as money in historic times.

Gold has over 50 times as much above ground supply (140,000 tonnes) than is mined each year (2500 tonnes).

GOLD IS MONEY, and remains as money throughout the world, used by banks, central banks, governments, and people.

If gold truly were just like any other commodity, then those people who create the economic propaganda would be just as pleased that "consumers are spending" whether they were buying gold or cars. Obviously, gold is very different.


I Run Bartertown · Apr 12, 2012 - 5:04pm


Hey All,

Sorry it's off-topic, but whenever anyone has asked for recommendations, I have always recommended Provident. Without boring you all with details, I want to go on record as withdrawing every recommendation I've made to deal with those shitbags.

There are many bullion dealers, and there is no reason to deal with people who knowingly screw you and then tell you that "sometimes people don't say anything" so they figured they'd just give it a shot. I'm not sure whether to be more pissed, or somehow appreciate the weird honesty of the reply.

Bobbejaan · Apr 12, 2012 - 5:06pm

And Y.A.N.A. in your insanity ...

The two most bullish factors affecting silver, the world is almost out of silver, the nations of the world have printed nearly unlimited amounts of paper money with no backing. The U.S.’s paper money has not failed because we have nothing to spend it on, our houses are built, our major projects are finished, we are at our peak. Our silver needs are being met at this time non economically, as a byproduct of other mining, as people inherit silver and then sell it for the quick cash, as governments and bullion banks dump it. But our needs are not that great at this point, unlike other nations that are industrializing, the needs of their growth far exceed the world’s current holdings. This is giving us the opportunity to be at the forefront of this boom, this is like getting in on the ground floor, even if we’re getting into it at this later stage.

I'm Insanely Bullish on Silver
Silver Stock Report
by Jason Hommel, June 18, 2004
(revised) May 29, 2007
I spoke in Vancouver on June 13-14, 2004 at the World Gold, PGM & Diamond Investment Conference. Since I gave several speeches on silver, I've become more bullish on silver. Why? Several reasons. Normally, I write once a week, which gives me time to think slower.
But in preparing for my speeches, I was forced to evaluate all the bullish reasons for silver together, all at once. And while speaking, I was forced to think faster.
After speaking, many people had questions on one specific area of the silver market, which I was usually able to answer, because I've been reading and writing about silver now for years.
In general, the people who came to me with questions were already bullish on silver, since they went to attend a mining show, and since they came to see me speak on silver. And yet, it seemed to me that they just wanted me to look them in the eye, and really say how bullish on silver I really was. They were looking for confirmation. In other words, they asked very general questions like "How high do you think silver will really go," and "How soon," and then they might ask, "Do you really think so?" even after I answered such questions. Each time, I had to re-think everything, and re-present everything, and re-summarize everything.
When writing, I don't like to repeat myself. When speaking, and answering people's questions, I was forced to repeat myself, over and over.
Furthermore, the feedback I received from people was instant. When speaking, I have the chance to see the facial expressions change as I present each bullish argument. However, when I write on the web, I present many arguments at once in a single essay, and so I don't necessarily know which arguments resonate the strongest with the readers, and convince them the most.
So, here are the two most bullish factors affecting silver.
1. The world has nearly run out of silver.

2. The nations of the world have printed up nearly unlimited amounts of unbacked paper money.
Put together, these two factors have never occurred before in the history of mankind.
True, the world was once using silver as money in many nations at once. But back then, in the late 1800's, the world had 5-10 billion ounces of silver to use as money. Today, we have much, much less, because most of the silver that has ever been mined in the world has been consumed by industry, and we may be down to about only one billion ounces or less.
True, there have been hyper-inflations as paper money has been printed to excess. But at those times, it was usually in one nation at a time, and there was still plenty of silver (and gold) to be used as money.
Today, no nation is using silver as money. And today, the world is almost out of silver. These factors create this once-in-history opportunity.
Silver today may be the best investment opportunity in the history of mankind.
One of the arguments that seemed to resonate the most with listeners was that at one time in history, a day's wage was a silver dime, or a silver quarter, or up to one or two silver dollars for miners, who were among the highest paid professionals in the world.


Xeno · Apr 12, 2012 - 5:07pm

Great Articles

Hey Turd, tell Molly we love her.

I had just finished reading the linked article below when I read Turd's latest and all I can say is that it sure seems that everyone is on the same page. At least everyone that is not a politician, judge, treasury official, regulator, or neighborhood hood i.e. DHS or TSA.

Great read by GolemXIV and puts into very good words what we all just cuss about.

Pt. 1 

Pt. 2 

Pt. 3 

Thanks Jessie yesyesyesyesyes

· Apr 12, 2012 - 5:10pm

That M3/Gold math is very promising!

Here is a good synopsis of why gold makes good money:

Why use gold as money?

November 11, 2011

BY: Robert Hallberg, Topics: Gold, Silver

Why use gold as money? If you look up the term “money” you will see it defined as a medium of exchange, and a store of value. Money is the lifeblood of an economy. It is used to facilitate trades without using bartering, which is the foundation of the division of labor and a cornerstone to a higher standard of living.

Government fiat currency currently serves as money throughout the world, but it is far from ideal. At present, it works well as a medium of exchange but it is a poor store of value. A good money (a medium of exchange, and a store of value) has certain characteristics. Aristotle defined these characteristics 4th century BCE, and they are still valid today:

1 - Durable: A good money is durable and should not fall apart in your pocket. It should be close to unbreakable. This is why we don’t use fruit as money.

2 - Divisible: A good money needs to be convertible into smaller and larger pieces without losing its value, so it can fit a transaction of any size. This is why we don’t use a porcelain vase as money; once half of it is gone it is pretty much worthless.

3- Consistent: A good money always looks the same, each piece looks the same as the next and it's easy to recognize. This is why we don’t use an oil painting as money. Each painting is different even when made by the same artist.

4 - Convenient: A good money contains a high concentration of value into a small package and it is highly portable. This is why water is not used as money, even though it is essential for human life. You would need a truck full of water just to buy groceries, and just imagine how much you’d need to buy a larger item like a house.

5 - Intrinsically valuable: A good money should be something that many people want or can use. This is vital to money functioning as a medium of exchange. Even though, you may not want to carry a gold ring or bracelet, you know that someone somewhere wants it and will take it in exchange for something else of value. This is why we should not use paper for money.

Gold, and to some lesser extent Silver uniquely well qualified as money. No other substances meet the five characteristics mention above better. Gold’s main use has always been money, not jewelry or technology, despite contrary beliefs. As more and more people start to wake up to the flaws of fiat money, gold will shine even clearer.

The chart below compares a collection of fiat currencies against gold. Even though some have done better than others, they are all significantly down against gold over the last 10 years....

Gold Buffalo · Apr 12, 2012 - 5:17pm

H&S in Dollar Chart?

Is that a H&S on the Dollar Chart pasted above by TF, as it moves to the end of Turd's pennant and a possible break lower?

If so, that would seem to increase the odds of the break lower, rather than up and out of the pennant.

Bobbejaan · Apr 12, 2012 - 5:19pm

So now you know "The Myths" ... And want to now buy Insurance

Another "Oldie But Goodie" for those just starting on the Gold & Silver Trail :-


How to Buy Silver [or Gold], & Avoid Getting Scammed
Silver Stock Report
by Jason Hommel, April 20, 2007

People continually ask me about all kinds of physical silver investments. I have avoided writing this article for years because people are always telling me to not say anything bad about anyone, or your competition. But I don't need to name names, and liars are not my competitors. So, here's how to avoid getting ripped off.


Desert Fox · Apr 12, 2012 - 5:20pm


Speaking of upside down, how the heck can anyone listen to these masters of financial wisdom {the bernank, Timmy, MSM talking heads} and actually make an intelligent decision?

I'll take Turd's and Santa's analysis any day and roll with the trend.

dropout · Apr 12, 2012 - 5:29pm

Yes Nonsense - Caught in the Act!

Headline; Gold to hit $2,000 on Spain fears.

Headline; Gold may fall below $1,550 in coming months. 

Who is saying these two contradictory things? Philip Klapwijk that's who. Executive Chairman of GFMS (formerly Gold Field Mineral Services) responsible for the following publications;

Annual Gold Survey

Annual World Silver Survey

Annual Platinum and Palladium Survey

He is referred to in the two articles as "global head of metals anaLytics at GFMS" 

Some analyst! Two completely different conclusions! Which one is the truth? As Turd says "do they think we are stoo-stoo-stoopid!" Why low ball gold in an Indian national newspaper? Unless one wanted to throw water on the price?

GFMS also holds associate member status with the LBMA. Interesting, is it not? Oh, and by the way their list of sponsors for their annual publications reads like a who's who of the global banking establishment! Now it becomes VERY interesting. 

So (IMHO) take everything you read or hear about GFMS and what they have to say, with a very large grain of salt!

ClinkinKY · Apr 12, 2012 - 5:30pm

Post deleted

Post deleted

Bobbejaan · Apr 12, 2012 - 5:32pm

JP Morgan Silver Manipulation

JP Morgan Silver Manipulation
by Jason Hommel, April 11, 2012

Allow me to bring you up to date on what you need to know about JP Morgan's manipulation of the silver market.

It is being exposed, and JP Morgan is failing, and losing money on their scheme.

... <SNIP> ...

All frauds eventually fail completely. This one will, too. In the end, holding silver in accounts with large banks will not help you. You need real silver in your own real vault that you have personally lifted and stored away. Any other kind of silver that others hold for you is likely fraud, and will not protect you in the event of the collapse of the dollar or the collapse of the financial system or the collapse of your brokerage company.

By the time this fraud is exposed fully, and by the time a mere 1% of people or money in America starts buying silver, such as only about $180 billion in the banking system, the silver price will exceed $500/oz. and large firms such as JP Morgan will either be bankrupt, or they will be bailed out to the tune of trillions to keep the financial system together, which will create further inflation that will drive 2% of people into silver, and create the very runaway metals market that will just not stop until all paper money and paper accounts are destroyed for generations.


Silver Rod · Apr 12, 2012 - 5:33pm

Bernanke released a song yesterday

Knee deep, in dollars we'll stay.

We'll keep, the showers away.

If I lie to you in the Garden,

In the moonlight,

Will you pardon me?

Come tiptoe through the tulips with me.

If I tell you there's no QE,

In the sunlight,

Will you pardon me?

While I print more, and tiptoe away.

Everybody sing--to the tune of Tiptoe Through The Tulips.

Tiptoe through the window,

By the window I'll be,

Come tiptoe through the tulips with me.

Knee deep, in dollars we'll stay.

We'll keep, the showers away.

If I tell you to be happy,

Until November,

Will you pardon me?

And tiptoe through the tulips with me.

Cleburne61 · Apr 12, 2012 - 5:33pm

The Power of One

This Financial Hydra, this entire thing is insanity.

One person. That's all it would take. 

One person can take the whole thing down, through a simple business transaction. One high-profile, billionaire Chinese man(with the backing of his government) can take 5.5 billion U.S. dollars, funnel it through tech funds, and arrange a purchase of the entirety of the Comex silver(and its gold), and take delivery of Comex metal. To avoid the outcry and backlash, come up with a great excuse for it. Let it be a new "company policy" that allows its thousands of employees to turn their life pensions into silver with free consent to do so. In such a way, the individual would avoid blame as acting alone as a "Hunt" or a "Hoarder". Say, 20,000 employees taking delivery of an average of about 1,450 ounces of silver each. That would turn the entire Comex to ashes, blow the lid of the scam, and free humanity instantly.

Hey, Ben Fulford and David Wilcock: why don't your sources simply buy up all the freaking silver? Doing so would only take a pittance, an accountant's rounding error to do so. Let the silver purchase be the catalyst for a mass cleanup(if such a cleanup is really forthcoming). Someone go ask Ben or David about a mass silver purchase on a live radio show, as an option. Forget an army of ninjas, or even pentagon ops....just buy something! We're really making this harder than it has to be.

Why doesn't anyone in China, intent on averting another war, particularly a world war, not just assent to something that would do the trick...for good? With no violence, whatsoever. No Persian land intervention. No override of their key business partnerships. No more threats of SWIFT nonsense. No more goofy, hypocritical claims of "currency manipulator". No more Anglo-American thuggery. No more New World Order. 

If anyone in the East is reading this, and you have serious funds, and serious leverage, please understand, this isn't a game. Don't be too smart for your own good. China and the East as a whole, are running out of time. Take the loss on your U.S. debt instruments, and make up for it by the instantaneous revaluation that your mammoth holdings of gold and silver would experience.

China, remember the Opium Wars. The West stole your silver, and made you slaves as a thank you. You're well aware of this, I know. The Eastern Mind doesn't forget, especially injustices forced upon them. This is so easy, forget military budgets, espionage, and outdoing the banking cabal at their own game. Put down your chips, and refuse to play that game any longer. Walk away. Use their own money to end this madness, and forge your own future.

¤ · Apr 12, 2012 - 5:42pm

Welcome aboard... Whiff Head and baby yoda yes

pourty · Apr 12, 2012 - 5:49pm


Please, bore me with the details. If you don't want to broadcast, I'd appreciate an IM.

I've dealt with Provident many times, and, honestly, the last few orders I wasn't terribly pleased with. My primary complaint is the change in the way they ship things. It's a bit nerve-wracking to discover a package with a significant value of silver sitting in my non-locking outdoor mailbox for several hours unbeknownst to me... and when I notified them it was delivered by our beloved USPS without a signature, I got a "we don't care" response from them. I'm on the verge of just never doing business with them again. I gave up kitco long ago, I may be giving up Provident very soon. Gainesville seems to be the best place these days, but the cost of wire fees is somewhat prohibitive at times.

· Apr 12, 2012 - 5:54pm

Ties Into Additional Stress Upon the System

Wanted to post this here, just to add a little flavor to the discussion.

In connecting the dots, Turd has, correctly, posited that federal govt debt is un-ending, and massive. Payment of interest upon this past debt, even assuming a totally balanced budget, is only manageable provided interest rates stay low enough. In short, the debt is being paid by increasingly worthless dollars. If interest rates creep upwards, it will cripple the economy, and result in most of the production going to debt service, as opposed to capital improvements, or govt transfer payments like food stamps, welfare, subsidized health care, etc.

Here then, is another piece of the puzzle. 

This is a big deal. The ruling paves the way (provides a method, if you will), which shows how the public coffers at the local level can get federal tax dollars. It is just a giant subsidy, under the guise of a lawsuit. Watch this spread like wildfire to the other states. This then is another chink in the federal protection (i.e., The Bernake) of the status quo. Something big will happen to replace Freddie/Fannie, the timing is the only thing which is unknown at this point. I will be watching this for developments. My prediction is that in the short term, nothing much happens. But as this concept catches on in other states, there will be increased pressure brought to bear upon the GSE's. The private real estate market is already broken. The subsidized real estate market is on fumes, and full of gimmicks. This series of lawsuits will only reduce the availability of capital left in the GSE's. There is no real solution, only an inflationary, debasing solution. Hence, more can kicking, until after the November elections. I originally predicted that Obummer would patronize the swing states, with massive housing debt principal writedowns. I still think that is coming. After the election, let's see what happens. Meanwhile, there is no better time than now to stack.
· Apr 12, 2012 - 5:55pm

The title alone is worth a look ...

Ben Bernanke: Inflationist Jackass, Devoid of Common Sense, and Clueless About Trade, Debt, History, and Gold

Jo Weisenthal writing for the Business Insider claims Ben Bernanke Just Murdered The Gold Standard
In an equally feeble post, Simone Foxman also writing for the Business Insider writes Ben Bernanke Explains Why The World Will Never See Another Gold Standard.

What is the Proper Supply of Money?
Let's start with Simone Foxman who says

Bernanke pointed out various reasons that there's simply "not enough gold" to sustain today's global economy. First, extracting gold from the ground is a costly and uncertain endeavor. There is a limited amount of gold in the world, and it just doesn't make sense in the modern world for central or commercial banks store large amounts of gold in vaults. The size of the gold supply and inconvenience of the metal renders it too impractical to keep up with the pace of global commerce.
Startling Truth About Money Supply

Please consider a snip from a free eBook on Mises.Org by Murray Rothbard, What Has Government Done to Our Money?
An increase in the money supply, then, only dilutes the effectiveness of each gold ounce; on the other hand, a fall in the supply of money raises the power of each gold ounce to do its work. We come to the startling truth that it doesn’t matter what the supply of money is. Any supply will do as well as any other supply. The free market will simply adjust by changing the purchasing power, or effectiveness of the gold-unit. There is no need to tamper with the market in order to alter the money supply that it determines.


silverstax · Apr 12, 2012 - 6:01pm

Treasure Trove of Information on Gold Coins

Wow, I just stumbled across this page:

Pretty much everything you ever wanted to know about every gold coin being produced by world mints - dimensions, purity, weight, etc.

I've never looked into the various Turkish coins before - they seem like good alternatives to buying 1/10 and 1/20 ounce fractional coins from Canada/Australia/Austria.

Notice: If you do not see your new comment immediately, do not be alarmed. We are currently refreshing new comments approximately every 2 minutes to better manage performance while working on other issues. Thank you for your patience.

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