Driving Mama Ferg

Mon, May 7, 2012 - 9:31am

Just a quick note this morning as I will be leaving soon. Mama and Papa Ferg were visiting over the weekend and it falls to The Turd to drive them home today. I'll be checking things and checking in via iphone as we go through the day. Let's just hope that things don't get too crazy.

All that really matters today is that the Frenchy-French have decided to double-down on Keynesian socialism. Good for them. Might as well go down swinging printing. "But, Turd", you say, "how can zee French print zee money?" Good point. Just be patient.

In my humble opinion (and keep in mind that I do have a couple of decent contacts nowadays), here's what is going to happen (and keep in mind, I don't mean tomorrow or even next week).

  • France will be leaving the euro and will resume printing francs.
  • Spain, Portugal, Italy and Greece will also be leaving. Perhaps uniting under a common currency, perhaps not.
  • Germany, The Netherlands, Finland et al will be keeping the euro as a common (and quite competitive) currency.

This is long-term very dollar negative. With the current euro in peril, The Pig continues to find support as the currency of last resort. Remove the peril and add some stability and responsibility and you're left with a new euro that becomes the preferred unit of exchange for for international settlements (like the sale of crude oil). In the meantime, the uncertainty of the situation will continue to drive nervous central banks, sovereign funds and HNW investors into the safety of barbarous relics.

Some rather remarkable action in the futures overnight. After trading off as many as 20 points overnight, S&P futures have rallied back and now stand down just three points as the NYSE prepares to open. Remarkable. Crude also fell overnight to a low of $95.34 but has since recovered $2.30. Yep, sell crude here. Absolutely. As far as I can tell, there's 0% chance of war/strife/disaster in the Middle East. Peace and Nirvana rule to infinity.

Anyway, the metals held up well all through the overnight. Could this have anything to do with London being closed today? Of course, I'm sure it's just coincidence that gold finally rolled over at 7:00 am EDT and has been under pressure ever since. Regardless, the area between 1625 and 1635 has been solid support for some time now and I do not expect that area to give way.

Silver continues to catch a bid near $30, too. Look, I know it's tough and the last two months have been brutal but you've got to hang in there. I don't know how long it will take but this will pass and silver is going much, much higher. Of that I am 100% certain. (Again, keep in mind that I have a couple of decent contacts nowadays.) Patience. Keep stacking and buying the dips.

OK, that's it. I gotta go. As mentioned above, I'll be keeping an eye on things all day and will add thoughts to the comments section if necessary. Have a fun day. I'll update with a new post this evening. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


May 7, 2012 - 9:33am

Removed comment

Removed comment.

May 7, 2012 - 9:35am


Since some people mentioned the Ignore and Troll lists, I have to admit I have composed a list of my own. However, my list is neither Troll nor Ignore (I don’t believe in Trolls and I don’t have anyone on my Ignore list).

It’s rather a list of individuals I have hard time refraining from reading their posts for variety of reasons. This is probably because that through their styles and choice of words, they somehow embody some human quality I find compelling. Since the list is rather long, below is just a random short sample list. I hope that the individuals mentioned will not be offended or embarrassed by me mentioning them. Also, please forgive my spelling of your logins as I work from my memory. Not in any particular order:

bobbejaan – seems like a genuinely nice guy. No politics, no hidden agenda. Truly interested in the subject and not in self-righteous ego trips. Does not run under bed and cry every time someone disagrees with him.

Patriot Family – this guy seems like he’s actually done some trading and investing (unlike many others here) and can relate to what it means to get burned on the market. Not pretentious because of that though. No BS either.

BlackHawk – This Great Chief cuts through BS straight to the point, which reveals an acute intellect (I wish I had more of that). I witnessed her fend off no less than three rabid Troll exorcists with ease and eloquence. Courage - one of a few people here who can see through the whole Troll BS and is not afraid to speak up.

Turd – looks like a funny and down to earth fellow. Informative too! The kind of guy I wish I could have a beer and bbq with and chat about PMs.

Moderator Jane – There was a huge outcry from the lynch-mob to hang some suspected Trolls (not unlike a witch hunt), and tangible fear for life of those accused of being one, and this lady comes in, writes something, and all of a sudden all negative energy dissipates from the site. I still don’t know where all this bad energy went.

Katie Rose – This down-to-earth person goes to work on a farm for a month, only to come back to nothing short of total dissipation on this site (likely caused by Turd’s exasperation with the “Trolls”). She gives us all some good old-fashion trashing.

The guy who called me Abrax-ass (for some reason I still can’t think of this without a chuckle)

The guy who was confused between selling his silver and his liver

The guy who yells “Nurse! Nurse!”

Xty – Loyalty goes a long way. This member of a militant group bent on defending Turd’s feelings, will go to any length to detect and eliminate the Trolls. She relentlessly followed me around pointing her finger at me and making sure everyone understood I was a Troll. She cut portions of what I said and then exposed for everyone to see this absolute proof that I was indeed a Troll. Hell, she even went to Wikipedia for further proof. She said that banning was too good for me, which I found amusing and disturbing at the same time. Besides loyalty, I had to give her a few hat-tips for enthusiasm and persistence. I sense that under that cut-throat facade there might be hidden a gentle soul.

Schneidr (or something) – When you are so delusional on a sanity scale, you can reach a point when it becomes cool again. While trying to discredit BlackHawk, this character actually claimed that there is some kind of school for creating an army of Trolls, who are then sent to infiltrate the Turd’s site as their Level 1 stage of training. Wow! One couldn’t make this stuff up even if one wanted to.

All those “Troll” posts – I see myself as a non-conformist and as such, I like reading things that are off of a beaten path.

...and the list goes on...

I also have a short list of people I wish they put ME on their IGNORE lists, but don’t want to reveal it for I fear that they will then refuse to do so.

P.S. I wish I was paid for this

May 7, 2012 - 9:38am


You've compiled quite a list in 4 days and 20 hours.

I'm glad that you're a part of the site but let's try to keep the "troll" stuff to a minimum today. Too much stuff that is far more important to discuss.


May 7, 2012 - 9:39am


It is certainly true that the Frenchies still put the price of everything in Euros and FFrancs on receipts at every shop in the country, a full 10 years after demise of the FFranc....

.....but I don't think they will be leaving Euro any time soon Mr.Turd. IMO that is :)

May 7, 2012 - 9:39am

Be safe on the road Turd

Well safe driving out there Turd!

I am going to be very happily driving over to make my monthly purchase of bullion today. I think I will go all silver this time. I have a boating trip planned this weekend...

May 7, 2012 - 9:40am

Of course you could be right

Maybe they won't be leaving the euro anytime soon.

Maybe the process of their exit has already begun.

I'll guess we'll just have to let it all play out.

May 7, 2012 - 9:40am

The Banksturds won't let Real Money Realize


Love of money is the root of all evil, we have heard since we were young. But is this an accurate statement? Is money the root of all evil? Can modern man even know what he is talking about in this regard or does his lack of experience with real money weigh too heavy on the way he sees the world? Mark Twain said that the lack of money is the root of all evil, and the more I’ve pondered this, the more I’ve wondered: is it the lack of money in modern civilization that is the root of all evil?

First of all, we must get our definition for money sorted out. Money is a circulating medium of exchange in any given society. Today, the nations of the world use fiat currency as their official medium of exchange. But, is fiat currency truly money?

The argument against fiat currency as money is simple. Its compulsory nature does not make it a good candidate for the medium of circulation in a harmonious society. We as individuals are required to use it by law (force), as decreed by behemoths of officialdom. This is an unnatural state of money, as mediums of exchange are most effective when they are voluntary. To be forced into a way of life does not constitute money, but, instead control. It is perhaps more accurate to call the U.S. Dollar, for example, a medium of control than a medium of exchange.

Money is the lifeblood of a civilization, and this civilization’s lifeblood is deplete of nutrition and circulates weakly. There is no strong heartbeat here. Just like the human body must through its blood circulate nutrition, so too must civilization through money circulate the needed goods and services which give rise to its functional character, but this civilization has been hooked on empty preservatives for millennia and so its character is lethargic and prone to outbursts of angers resulting in, as you know, genocidal episodes. The psychopathy of civilization is the result of a terrible monetary diet which is the impetus of misery at all strata of society. We are undoubtedly enslaved through the medium which is supposed to help us be free.

There is a pronounced difference between money and fiat money. Whereas money comes into existence through trial-and-error and remains because of its practicality, fiat money can come into existence only via government force. There is no other way by which fiat money could come into use in a culture. It is simply too impractical. Who wants to be forced into anything? Take away the indoctrination which starts young – it must start young so that it can truly take in an individual throughout his or her life – and nobody would want much to do with fiat currency. We just have to have it in order to pay indulgences to the state or receive a good or service from a rigid corporation whose decision-makers probably have the day off. State-forbid one of us decide to introduce our own sort of money into our communities, as then we might become the victim of one of those aforementioned “anger outbursts.”

In a sane culture, the onus would be on us to choose what sort of money to use. In a free society, many competing currencies would be available on the marketplace, and any individual or company would have the freedom to begin circulating their own money. The next question is, ‘what’s the demand for this new money which has been introduced onto the marketplace?’

Through trial-and-error, the individual would learn which type of money available best suits the lifestyle they wish to embark upon. As a young child, one might be determined to use, I don’t know, say, beanie babies as their money of choice. (Remember the craze which sent grown adults to McDonalds for their investment in a free beanie baby toy?)

Now, what the child will have to learn is that there is no demand for beanie babies as there is no practical reason to use them as money. After a good sobering up after the sheer disappointment of having a preferred medium of exchange rejected by the humbug of commerce, the child will learn what he or she can use for money, and make an educated decision.

So, it dawned on me: A major problem of civilization – which is a problem on its own – is its lack of money. There is no such thing as money in the world today – only control. What we currently refer to as money – fiat currency- is not money at all, but, rather, a decreed condition of man. It is a medium of control and little more. Just because it smells like money, looks like money and tastes like money (not that the Federal Reserve Note resembles anything like this once the indoctrination is broken) does not mean it is money. Don’t be deceived, as Twain was right: in our civilization today, the lack of money –and the fiat deception marauding as such– is the root of all evil. I’d go as far to say that this lack of money is the fulcrum of control for the ruling class.


May 7, 2012 - 9:47am

Leaving the Euro

Will perhaps another, surprise country leave first? Perhaps someone in eastern Europe, who has been hammered with debt since 09 collapse.

May 7, 2012 - 9:48am

Buffet thinks we are idiots but we have the right idea


I heard his thesis this am. Didn't make any sense -also bill gates doesn't like gold. They didn't provide a coherent rationale behind why gold sucks. Obviously we are all pathetic and stupid and should dig a hole and bury ourselves alive

Hi-Ho Silver
May 7, 2012 - 9:52am

Turd Contacts


Today's commentary seems to come straight from the Lips of Jim Willie. wink-nod :

May 7, 2012 - 9:54am

Fukishima - Do the right thing

1. Find the cores, 2. Get as much of it as possible in steel or concrete casks, 3. Get the casks on a barge. 4. Park the barge over a deep ocean trench (3 - 5 miles down). 5. Sink the barge with all the equipment used.

The surface fish we eat will not be harmed since that much deep water will attenuate the radiation. The low currents in the trenches will not spread the heavy fuel far. The heat from the fuel will create some very interesting biospheres at that depth.

Got a better/quicker solution? Let's hear it.

May 7, 2012 - 9:57am



I think you fail to miss the point of why the euro was created. It is a political currency created to prevent Germany from ever starting World War 3. There is simply no other option as protectionism would increase exponentially and the only true destroyer of wealth is war. Technology you cannot even fathom will continue to spur growth for the next millennium, but the only true threat is war. Yes, declining population growth will hurt stock market multiples in the West in favor of the likes of Brazil and India, but mark my words the world will keep spinning.

Gold remains neutral/slightly bearish until the 150sma is broken. Btw quick history lesson would show that the French will simply nationalize their banks (seems inevitable at this point) before even the whisper of them leaving the euro comes out. Don't rely too heavily on your "contacts" as well as their is no master plan, the president of the NY Fed is the same as you and I just with more robust models. Sometimes he is right sometimes he is wrong, but biggest fallacy is that these people can actually control a globally dynamic economies primary trend...impossible.


May 7, 2012 - 9:57am

silver is being spanked!

yup,, all this is very tedious..

May 7, 2012 - 10:03am


Just hit new 52 week low!

May 7, 2012 - 10:06am


With more than 1000 tons of gold, the banksters won't let Italy leave the Euro until they've pledged it.

The goal is to steal as much gold, silver and real estate as possible before a collapse.

El Gordo
May 7, 2012 - 10:08am

Time to buy?

My real question is as follows: Is it time to buy a little, or is it time to buy a lot. I hate to completely deplete the dry powder keg, but now may the be time. Just can't decide.

Number 47
May 7, 2012 - 10:10am

Now I've heard (almost) everything!


South Korea says it will increase customs inspections targeting capsules containing powdered human flesh.

The Korea Customs Service said it had found almost 17,500 of the capsules being smuggled into the country from China since August 2011.

The powdered flesh, which officials said came from dead babies and foetuses, is reportedly thought by some to cure disease and boost stamina.

Groaner El Gordo
May 7, 2012 - 10:10am

I would be in no rush to buy physical right now.

I think 1600 is in play and who knows for silver?

Groaner Number 47
May 7, 2012 - 10:12am

This is truly false religion.

and they think we are crazy..

Mankind in general are a bunch of losers.. a very sad state of ignorance.

Number 47
May 7, 2012 - 10:13am

@el gordo.

Me too, buying still but considering a large purchase. My post from the end of the last thread.

Greek democracy in action.

Submitted by Number 47 on May 7, 2012 - 2:48pm.

Bailout resolutely rejected, austerity kicked to touch. the people have spoken.

Germany responds.

Speaking to reporters on Monday, German government spokesman Steffen Seibert spelt out Berlin's position that "the agreed programmes must be adhered to". He added that Germany would support Athens in returning to competitiveness and financial stability, "whatever its government is".

Hmm. Nothing to see here, move along.

The Germans must be worried by now, just the Irish referendum to finish the eurozone once and for all by the look of it.

Added a 1/2oz of gold and 12oz of silver today. Hoping prices will drop as they usually do when I buy, will be buying the same again tomorrow regardless. Weekly purchases from now on, no more dip buying for me. (Well, perhaps one more.)

Seriously considering converting the last of our cash savings in the credit union, it would yield another 1/2 kilo of gold. I'm expecting a crash in everything soon but this time I doubt there will be anything to buy. Things here in Europe could get real ugly, real soon.

Opinions please? Buy now or wait for the crash/central bank intervention. I must admit I'm at a loss for what to do regarding timing.

Oh. IRB. I paid the VAT on the silver this time.

And to be clear, my previous buys were marked correctly, no subterfuge, the government failed to collect, I declared as required. It would take a saint to volunteer, never mind a leftie. (and I'm far from sainthood)

Abraxas TF
May 7, 2012 - 10:13am


I was just messing around. I sincerely apologize for any disturbance I may have caused.

May 7, 2012 - 10:17am

Boy, are they bashing gold on

Boy, are they bashing gold on CNBC with its blanket coverage of Warren Buffet... to be expected really. The question is, why is it so important for them to disparage gold on TV? What are they afraid of? Such a tiny market relative to everything else.

He compares the price of Berkshire H when it started trading at $15 and how it has risen much more than the gold price. Hmm... adjusted for inflation, it doesn't look as good now, does it Mr. Buffet? Or how about a ratio between gold/BH, might tell a better story.

They say gold is a religion for gold bugs. Judging by the coverage of this weekend's Jerkshire cum-fest, you would think that Buffet was the Messiah.

Switching off CNBC... such a retarded show.

Dr G
May 7, 2012 - 10:19am

El Gordo, now is the time to

El Gordo, now is the time to buy...a little. If you are a stacker concerned with your cost average, then buy a nibble here, say 1/3 of the money you have set aside for purchasing.

The fact is that gold and silver will be valued much higher in the future, but the medium and short-term charts have them in downtrends. Essentially lower highs and lower lows much of the time.

Save the bulk of your money. I'd love to see $30 hold, but the fact is that a dip into $28 wouldn't surprise me one bit. I wouldn't expect it to stay there, but selling pressure could easily cause such a momentary dip.

May 7, 2012 - 10:21am

That last 40c plunge in silver makes sense

Sure. S&P didn't budge but silver plunges 40c. With London closed, does this mean they'll try to jam silver today and run some sell stops? Maybe. BTFD.

May 7, 2012 - 10:23am
May 7, 2012 - 10:23am

Perhaps the other way around TF

Perhaps we have this the other way around.

France and the PIGS stick to the EURO but France controls the ECB under Lagarde...

Germany and it's northern cousins switch to the Nordic Euro under the Bundesbank....

This solves the bank run problems for club med and makes France the truffle of the PIGS.

It could work, Wee Wee?

DeltaCharlie TF
May 7, 2012 - 10:27am

Speaking of India U-turn, I'm reminded of a Ghandi quote

"First they ignore you, then they ridicule you, then they fight you, then you win!"

- Mahatma Gandhi.

.... seems we're at the 'fight you' stage. Stay the course, keep stacking fellow Turdites!!!

May 7, 2012 - 10:28am

Buffett and Munger Tag Team Gold


"Ironically, the United States and the Federal Reserve system holds more gold than any other country in the world. According to the latest statistics from the World Gold Council, the U.S. holds 8,133.5 tonnes of gold, representing 77.1 percent of its reserves. Furthermore, Berkshire owns several subsidiary companies such as Ben Bridge Jeweler, Borsheims Fine Jewelry and Helzberg Diamonds. I doubt these companies, which rely on “lifeless” elements such as gold to run a business, would appreciate the remarks made by Buffett and Munger."

May 7, 2012 - 10:29am

Chart Problem !

Turd, when i open the charts, why cant I maximise as I used to before.. The numbers are a little difficult to read now.. I think I may not be the only one having this problem here...

BTW.. Kudos to you and the site !!!! You're doing some amazing work !!

May 7, 2012 - 10:30am

Monika Lewinsky?: Buffett is so 1990's

Theoretically Buffett is correct that productive businesses are the best use of capital.

Okay you fake, ukelelee strumming, fascist (merger of state and business - GS deal? Wells deal, etc), couple of questions:

What is capital? Is it possible for govts to fake capital to the point that it can't be deployed effectively? And is it possible that capital preservation can become more important than capital utilization?

If you have such brainiacs running your company why is your stock only tracking American GDP? 50% growth since 1998. Thats the facts jack. GDP 10T in 1998, 15, today. BRK.A 80 then, 120 now. WTF? You suck? Can you please explain why you are still revered when the data says you suck for the last 14 years? 14 years is a chunk of time fella. Entire industries have been born and reached maturity twice in that time! And you missed ALL of that productive growth opportunity. And if you admit that your performance sucks, why does anyone care what you think, since obviously your thinking is full of holes?

Personally, you seem like a descent dude. This is just business. You are a bad bet. Imagine how bad your returns would be if you did not have the advantage of sitting at the gubmint table!


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