We Are SO Screwed

276
Thu, Apr 19, 2012 - 10:23am

Before we get into the usual metals discussion today, I thought I'd take a moment to discuss what is being called "Taxmageddon". Not for the fiscal or economic policy ramifications but as a perfect example of just how hopelessly broken the political system in the United States has become.

If you haven't heard of Taxmageddon, don't feel badly. It was a topic that ramped up in popularity into Tax Day back on Tuesday but now will surely drift back into obscurity in the weeks and months ahead. What Taxmageddon essentially is is this: Without Congressional action, almost all tax cuts and changes initiated within the past 10 years will expire on January 1, 2013. This includes changes to the Alternative Minimum Tax, the "marriage penalty", rates paid on dividends and interest, the "payroll tax deduction" and so on and so on. For a more detailed summary, here are links to a New York Times story and a Fox News story on the subject:

https://www.nytimes.com/2012/04/15/sunday-review/coming-soon-taxmageddon.html?pagewanted=all

https://www.foxnews.com/politics/2012/04/17/taxmageddon-coming-answer-could-cost-americans-500-billion/

I bring up all of this NOT for a discussion about tax policy and "fairness". That's all bullshit and, frankly, anyone that falls into the trap of arguing about this stuff is simply playing into the politicians hands. What I want you to take away is this:

Congress knows that this is a MAJOR PROBLEM. Coming up with a plan and fixing this should be THEIR PRIMARY OBJECTIVE over the summer. BUT THEY WON'T DO IT.

Instead, everything out of Washington will be simple theater ahead of the November elections. The Republicans don't want to be seen as raising taxes ahead of the election and the Democrats don't want to be seen as lowering taxes. None of these freaking politicians will DO THEIR JOB because they are more concerned about KEEPING THEIR JOBS.

So, what will happen? After the election, Congress will be called in for a "lame duck" session in December. It's called that because, typically, nothing substantial gets done, primarily because a significant portion of the reps have just been voted out. This lame duck session, however, will be charged with fixing all of the Taxmageddon problems, in about 3 weeks, again using the votes of representatives and senators who have just been removed from office but whose terms don't expire until January. Ain't that great???!!! This also means that, for the rest of 2012, no individual and no corporation can make any concrete plans (including hiring) because of the utter uncertainty regarding the tax code for 2013. And these political deltabravos can't seem to figure out why the economy isn't "recovering"!

Do you see now why we are so helplessly screwed? It's all about politics and control. None of the Republocrats gives a rat's behind about you or me or anything. All they care about is getting re-elected. Period. And if there are any of you out there naive enough to believe that if we can just get O'Bomney (re)elected all will be well, I suggest you get up from your computer right now and go stick your head back into your kid's sandbox.

Next, I suggest you read this. I don't agree entirely with the author's opinions but I certainly share some of them: https://www.zerohedge.com/news/guest-post-fake-conservatives-dangerous-freedom-obama

Anyway, I don't mean to sound hopeless and defeated but it's always a fine line between realism and cynicism. As we plod forward, we all simply need to stay on the side of realism. Pay attention, think for yourself and trust your instincts. The current system is not fixable and the status quo will not be maintained. If you think you can affect change on a grand scale, please give it a try. We are counting on you and hoping you will be successful. However, in the interim, the only sensible option for everyone else is to continue to prepare accordingly for the end of the Great Keynesian Experiment and/or the end of the Great American Experiment, whichever comes first.

The metals are rebounding this morning after being savagely beaten during London trading. On the bright side, chart support continues to hold on the Comex. Gold is still stout above $1630 and silver keeps catching a bid every time it moves toward $31.30. I don't know about you but I'll take it! Of course we still run the risk of a brief, gun-the-stops drop but, as long as we continue to set a base here, the chances are increasing that bottoms are in and the next UP move will soon commence.

Following on with the technicals are the fundos. Below is a C&P of a comment I tucked into the last post regarding the latest OI numbers and the coming CoT. I thought I should reprint it here so that you were sure to see it.

This week's CoT is going to be extremely interesting!
For the reporting week, here's what we have:
GOLD down about $10 and total OI down about 5,400 contracts. Almost certain to show a bullish improvement.
SILVER down 15 cents and total OI was UP by 7,000 contracts. May show a significant improvement.
​So, anyway, you know that I think the stage is set for a massive silver short squeeze. The silver CoT on Friday should only add fuel to the fire. We'll see...
Lastly, tonight's OI numbers are also amazing. Again, this data is basis yesterday's Comex close:
Gold total OI fell about 2300 contracts yesterday to 398,526 while price rose a scant $1.60. Not only is this a new low for 2012, it's a new low for the last 2.5 years.
Silver OI rose yesterday by 3,200 contracts (while price rose just 30 cents). At 121,448, total OI is, by far, the highest it's been for all of 2012.
Something very unusual is taking place here. Very unusual. We'll look back, 6-8 weeks from now, and be able to say that "the clues were there, why didn't we see it coming?".

Here's one bit of commentary for you today from JS Kim. It seems the brutal, 6,000+ contract dump on Tuesday caught his attention, as well: https://www.zerohedge.com/contributed/2012-16-19/weekly-dose-gold-silver-market-manipulation

Lastly, just an additional THANK YOU to all who Fed The Turd over the past 24 hours. We have now successfully raised enough funds to pay any outstanding bills as well as make the adjustments necessary to hopefully stop the site from crashing so often. Your generosity continues to amaze me and I am truly humbled by the outpouring of support. It is my sincere hope that I can continue to provide insight that you deem worthy of your attention and interest.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  276 Comments

Gramps
Apr 19, 2012 - 10:25am

First

First first ever?

Save_America1st
Apr 19, 2012 - 10:27am

Donation has been sent!

General Turd!

I have donated 15 Bennie Bucks to the cause this morning. Go Turd Army!!!

By the way, I started the #TurdArmy hashtag on Twitter nearly a year ago. Since there is now an official Turd Army, this can be used for updates and to bring in more recruits.

Wish I could partake in the actual Turd Army investing, but I’m just a stacker and have a good chunk of mining stocks waiting to take off (hoping is more like it!).

But good luck to all the soldiers fighting the paper war…I hope you guys kick some serious ass and stack a whole lotta of phyzz!!!

Thanks for everything General Turd!

Mudsharkbytes
Apr 19, 2012 - 10:28am

Third-ish

A trifecta? Guess not.

Big Dutch
Apr 19, 2012 - 10:31am

PAGE

I’m just a muppet, but some things hit me as rather strange lately and I can’t make sense of them. 1) Recent trend of decreasing OI in gold, but Increasing OI in silver at the COMEX (Harvey’s Organ); 2) Recent trend of virtually zero price movement in gold and to lesser extent silver in overnight trading; and 4) While the brutal beat-down in PM mining stocks continues it is with extremely low volume. Again, just a muppet, could these be signals one way or the other.

Like most here I have high hopes we are at the end of a huge multi month reverse head and shoulders, but IF we are we need a catalyst for the next leg up in PMs. What could it be? Geopolitical event? Maybe. QE3? Maybe, but general consensus says not this month (ie next Wednesday). Pan Asian Gold Exchange? Which brings me to the whole point of this rambling post.

It was supposed to happen Q4 last year, but was delayed. Now set to open in June, but I just haven’t heard much about it lately and we’re getting down to the wire. Anyone have any info? If it is going to open, my mind can make sense of everything above.

All comments welcome.

¤
Apr 19, 2012 - 10:32am

Thanks

...and you're welcome.

Just wait until January 2013 for the real fun/pain to begin.

In the meantime, SpeakEasy, news, music, vids etc....

https://www.tfmetalsreport.com/forums/frivolity-forum

Dr G
Apr 19, 2012 - 10:33am

PAGE was scrapped and isn't

PAGE was scrapped and isn't opening, but I am quite interested about the replacement platform that we were told by Ned N-L that would be coming into place. Any updated info about that?

I'm ready for a short squeeze in silver, but I won't have that excitement in my bones until silver crosses the $40 mark.

OC15
Apr 19, 2012 - 10:34am

7

As in Pens will get to a game 7.

ClinkinKY
Apr 19, 2012 - 10:37am

Turd, please expect to hear from my attorney re...

...copyright infringement:)

---------------------------------------------------------------------

@ Magpie-The same Sheila Jackson Lee who thinks...

Submitted by ClinkinKY on April 19, 2012 - 10:05am.

...that Vietnam is still separated by North and South. We're so screwed.

Congresswoman Sheila Jackson Lee on North and South Vietnam

Democratic Congresswoman Sheila Jackson Lee unveiled the program, labeled Bus Safe, during a press conference on Friday. According to a Metropolitan Transit Authority of Houston (METRO) press release, agencies involved in the scheme will, “ride buses, perform random bag checks, and conduct K-9 sweeps, as well as place uniformed and plainclothes officers at Transit Centers and rail platforms to detect, prevent and address latent criminal activity or behavior.”

Alijo
Apr 19, 2012 - 10:37am

12er interview with Assange

Hi Turd, What's your take on Assange's interview?

https://assange.rt.com/

Dr G
Apr 19, 2012 - 10:42am

Silver posting an ORD thus

Silver posting an ORD thus far. Gold needs to move $8 higher for close to get an ORD. I think it will happen.

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